c





The ledger is a basic concept in Release 12. The ledger replaces the 11i concept of a set of
books. It represents an accounting representation for one or more legal entities or for a business
need such as consolidation or management reporting. Companies can now clearly and efficiently
model its legal entities and their accounting representations in Release 12. This seems to be a
major area in getting success of the shared service center and single instance initiatives where
many or all legal entities of an enterprise are accounted for in a single instance, and data, setup,
and processing must be effectively secured but also possibly shared.

Now, legal Entities can be mapped to entire Ledgers or if you account for more than one legal
entity within a ledger, you can map a legal entity to balancing segments within a ledger.

While a set of books is defined by 3 C⼌s,

1.? chart of accounts

2.? functional currency
3.? accounting calendar,

The addition in this list the ledger is defined by a 4th C: the accounting method,

This 4th C allows you to assign and manage a specific accounting method for each ledger.
Therefore, when a legal entity is subject to multiple reporting requirements, separate ledgers can
be used to record the accounting information.

Accounting Setup Manager is a new feature that allows you to set up your common financial
setup components from a central location.

What is Accounting Setup Manager

Accounting Setup Manager is a new feature that streamlines the setup and implementation of
Oracle Financial Applications. The Accounting Setup Manager will facilitate the setup required
for simultaneous accounting for multiple reporting requirements.

With the Accounting Setup Manager, you can perform and maintain the following common setup
components from a central location:

˜? Legal Entities
˜? Ledgers, primary and secondary
˜? Operating Units, which are assigned to primary ledgers
˜? Reporting Currencies, which is an enhanced feature
˜? Subledger Accounting Options. This is where you define the accounting methods
for each legal entity subledger transaction and associate them to the ledger where
the accounting will be stored.
˜? Intercompany Accounts and Balancing Rules
˜? Accounting and Reporting Sequencing
 ˜? Both Intercompany and Sequencing

Will discuss some more granular details in some other post.

  c
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As discussed in couple of earlier post GL is integrated with SLA to enable a unified process to
account for subledger transactions and post data to GL, and to provide a consistent view when
drilling down from GL to subledger transactions.

 
  


  

GL has added new features and enhanced existing features to support foreign currency
processing , they are mainly as:

˜? In R12, MRC feature is enhanced with a feature call Reporting Currencies. That mean it
will now support multiple currency representations of data from any source, including
external systems, Oracle or non-Oracle subledgers, and Oracle General Ledger journals
and balances.
˜? The second one is in reporting to view balances view balances that were entered in your
ledger currency separate from those balances that were entered and converted to the
ledger currency.The change in R12 is that balances entered in the ledger currency are
maintained separately from balances converted to the ledger currency for use in
Reporting and Analysis.

Here⼌s an example. Assume we have a ledger and the ledger currency is USD.
I enter and post two journals; one in 1,000 US Dollars, and another in 500 British Pounds that
gets converted to 1200 US Dollars.

In Release 11i, I can review the 500 GBP and the 1200 USD that results from converting the 500
GBP, and the total 2200 USD which is the USD balance in the Cash Account. The $2200 is the
sum of the $1000 entered in USD and the $1200 converted from the 500 British Pounds.
However, I view that a 1000 USD were entered directly in USD.

In Release 12, I can view the 1000 USD by performing an account inquiry on the Cash account
for balances entered only in the ledger currency. The amounts entered in foreign currencies that
were converted to the ledger currency will not be included in the balance. Of course, if I want to
retrieve all balances in USD, both the entered as well and the converted, I can still do that in
Release 12.

 
     
 

In Release 11i, you could define recurring journals using the functional currency or STAT
currency.

Now in Release 12, you can create recurring journals using foreign currencies. This is
particularly useful if you need to create foreign currency journals that are recurring in nature. For
example, assume a subsidiary that uses a different currency from its parent borrows money from
the parent. The subsidiary can now generate a recurring entry to record monthly interest payable
to the parent company in the parent⼌s currency.

c 

     

You no longer have to constantly switch responsibilities in order to access the data in a different
ledger. You can access multiple ledgers from a single responsibility as long as all ledgers share
the same chart of accounts and calendar.





 


   

You no longer have to open and close periods for each ledger separately. You can now open and
close periods across multiple ledgers simultaneously by submitting Open and Close Periods
programs from the Submit Request form.


  ! 



   

You can run the Translation program for multiple ledgers simultaneously, if you are managing
multiple ledgers.

 



   

Now with this feature you can run Financial Statement Generator (FSG) reports for multiple
ledgers simultaneously. This is useful if you manage multiple ledgers and want to run a balance
sheet or income statement report for all of your ledgers at the same time.
 
"  
  c



You are able to allocate financial data from one or more ledgers to a different target ledger. This
enables you to perform cross-ledger allocations, which is useful for purposes such as allocating
corporate or regional expenses to local subsidiaries when each entity has its own ledger

  c
 


You can now share AutoPost Criteria sets across multiple ledgers that share the same chart of
accounts and calendar and use the AutoPost Criteria sets to post journals across multiple ledgers
simultaneously.

  c
 #    

$   % " 

AutoReversal Criteria Sets can also be shared across ledgers to reverse journals across multiple
ledgers. This is enhanced by integrated Web-based Spreadsheet Interface.

&
 



Now we can now copy entire journal batches. You can copy journal batches with any status. The
system will create a new journal batch containing the same journal entries.You may also change
the batch name, period, and/or effective date while copying the journal batch. After copying the
journal batch, you may modify the unposted journals in the same manner as any manually
created journals.

  






You are able to define Chart of Accounts Mappings (formerly known as Consolidation
Mappings) between two charts of accounts. Therefore, if you have multiple Consolidation
Definitions for parent and subsidiary ledgers that share the same chart of accounts pair, and their
mapping rules are the same, you only have to define a single Chart of Accounts Mapping.

The enhancement in R12 allows you to define mappings between charts of accounts instead of
between sets of books, so that they can be shared across multiple Consolidation Definitions.

Therefore, if you have multiple Consolidation Definitions for parent and subsidiary ledgers that
share the same chart of accounts pair, and their mapping rules are the same, you only have to
define a single Chart of Accounts Mapping.

You can also secure access to chart of accounts mappings using definition access set security.
This allows you to secure which users can view, modify, and/or use chart of account mappings in
consolidation definitions.


  
 c

Normally when an account is disabled, you can prevent transactions that include the account
from erroring during journal import by defining a replacement account for the disabled account.
Journal import replaces the disabled account with the replacement account and continue the
journal import process if the replacement account is valid. This improves processing efficiency
by preventing the journal import process from erroring and enabling the successful creation of
the journal with minimal user intervention when an account has been disabled.

c   
    

In R12, since you can access multiple legal entities and ledgers when you log into Oracle
General Ledger using a single responsibility, Oracle General Ledger provides you with flexible
ways to secure your data by legal entity, ledger, or even balancing segment values or
management segment values. You are able to control whether a user can only view data, or
whether they can also enter and modify data for a legal entity, ledger, balancing segment value or
management segment value.

  

  

This can be best understood as:You can designate any segment (except the natural account
segment) of your chart of accounts to be your management segment and use Oracle GL security
model to secure the management segment for reporting and entry of management adjustments.

 #  # 
&
 '
( 
 

You can no longer reverse journals from frozen sources defined in the journal sources form.

If the journal is created from a frozen source, the journal cannot be modified even if the source is
subsequently unfrozen in the future.
This provides streamlined data reconciliation with subsystems. Not being able to reverse journals
that originated in subledgers will ensure that the account balances will always tie out with
General Ledger. If you need to reverse a subledger journal, then you should do so in Subledger
Accounting or the subledger application.

 #  # 
)

 &
 

You also can no longer reverse unposted journals. This ensures data integrity and better
auditability. In the past when we allowed you to reverse unposted journals, there was a risk that
the original journal could be deleted so you could end up reversing something that didn¶t exist.
Now, all reversals can be tied back to the original posted journal.

$   % " 

 $ 

Through the integration with Web ADI, users can now leverage spreadsheet functionality in
Oracle General Ledger via a web-based interface. The spreadsheet interface can be conveniently
launched from a GL responsibility.
Using the Journal Wizard, we can leverage spreadsheet functionality to create actual, budget, or
encumbrance journals. You can take advantage of spreadsheet data entry shortcuts such as
copying and pasting or dragging and dropping ranges of cells, or even using formulas to
calculate journal line amounts. You can then upload your journals to Oracle General Ledger.
Before uploading, you can save and distribute your journal worksheets for approval.

We can also import data from text files into spreadsheets, where it can be further modified before
uploading to Oracle. This functionality is useful when migrating data from legacy systems, or
from any source that can produce delimited files.

Using the Budget Wizard, you can download budget amounts to a spreadsheet, modify the
amounts, and then upload them back. You can also choose to download the actual amounts to
compare it with the budget amount. Budget Wizard also allows you to plot graphs and do a
graphical comparison on the amounts. Budget Wizard also provides budget notes. You can add
descriptions to accounts and amounts in your budget and explain your budget within the budget
worksheet, avoiding the clutter of external documentation.



c


You are able to control data entry to an account by ensuring it only contains data from a
specified journal source and to prevent users from entering data for the account either in other
journal sources or manually within general ledger.

  
 


You can secure your setup and definitions by granting specific privileges to users to view,
modify, and/or execute a definition. This enables you to control which of your users can view a
definition, but not modify or execute it, or execute a definition without modifying it, or vice
versa.

Following is a list of definitions that have this security available for:

1.? MassAllocation and MassBudget Formulas

2.? FSG Reports and Components
3.? Accounting Calendars
4.? Transaction Calendars
5.? AutoPost Criteria Sets
6.? AuoReversal Criteria Sets
7.? Budget Organizations
8.? Chart of Accounts Mappings
9.? Consolidation Definitions
10.?Consolidation Sets
11.?Elimination Sets
12.?Ledger Sets
13.?Recurring Journals and Budget Formulas
14.?Rate Types
 15.?Revaluations

 *  




Maintaining two sequnces have been introduced, accounting and reporting sequencing.

&
  
 


Journal Line Reconciliation enables you to reconcile journal lines that should net to zero, such as
suspense accounts, or payroll and tax payable accounts for countries, such as Norway, Germany,
or France.

In R12, we⼌ve made many improvements to intercompany accounting. R11i⼌s Global

Intercompany System (GIS) has been replaced with an exciting new product called Advanced
Global Intercompany System (AGIS). We also extended intercompany balancing support to
include encumbrance journals.

 $



For more deatils , read this


 
 + 


#  
,

Oracle General Ledger's Account Analysis, General Journals and Trial Balance standard reports
are now integrated with XML Publisher.

Since last fortnight,I was looking into R12 GIS Module, seems some of the old features and
functionlity have been greatly enhanced with addition of some more new features introduced.The
point which should be noted here is,R11i GIS get new name commonly known as "Advanced
Global Intercompany System" in short 'AGIS'. The difference is the prefix 'A', therfore will take
a close microscopic view on feature that makes 11i GIS into Advanced GIS of R12. Here are the
candidate features :

c
  #
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Oracle Advanced Global Intercompany System can create invoices in payables and receivables
sub ledger from intercompany transactions.

Using Oracle Advanced Global Intercompany System user can enter transactions for multiple
recipients within a single batch. This allows user to submit intercompany transactions from one
initiator to one or more recipients in a single batch.
 


  
 



When user allocates more than one distribution account in a batch that has multiple recipient
transactions, Oracle Advanced Global Intercompany System can automatically prorate the
distribution amounts based on the recipient transaction amounts. The proration of amounts is also
used by Oracle Advanced Global Intercompany System to adjust the distribution amounts in the
batch when a recipient transaction is deleted or it is rejected.

)

!  
-    . 

This was a missing link in the earlier version, as earlier product does not have capability to use
direct upload functionality, rather than interfacing through Open GIS interface. In Release 12
ADI is heavily used in this module, which is replacement of external integration for AGIS
System using by mean of Microsoft based Excel spreadsheet. Now flexibility is provided to user
that can generate spreadsheet templates that have features of intercompany entry pages and using
the templates the user can enter transactions in the spreadsheet and upload them into Oracle
Advanced Global Intercompany System. The good thing has found the standard templates can be
customized by removing or adding the entry fields from a list of available fields. This feature is
used to create a template that contains only the entry fields that are important for the business.
The required fields cannot be removed from the template. Once the templates are generated, user
can save them in their local computer to reuse them in the future. This figure describe the options
available in both the versions.


  
 



 # 
 /  


This changed feature enables a user to reverse a whole batch or an individual transaction in a
batch. When the user reverses a batch or a transaction, a new reversal batch is created, which
displays the references to the original transaction. One point to be noticed is that new batch is
submitted automatically immediately after it is created. Not both the parties (Sender /receiver),
its only users with access to the initiator organization can reverse its batches or transactions. The
set up is there where a user can choose a reversal method determining if the new batch will be
created with opposite signs, or with switched debits and credits.

  
#  . 



In AGIS descriptive flexfields is supported on the batch and also on individual transactions
within the batch. Descriptive flexfields allow user to enter any additional information specific to
the nature of business, in the batch and in the transactions. Important to note that these DFF can
be used by sender. The user can enter descriptive flexfield information for the recipient in the
Recipient Accounting section.

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# %
0
'1
 


In R12, AGIS very similar to other module, home page displays notifications about approval or
rejection statuses of intercompany transactions. You should note that notifications can be sent to
the users via email. The rules for approvals and notifications can be customized using Oracle
Approval Management Engine (AME), which allows the user to add extra approval rules and
hierarchies to suit their business needs.


   

The user can attach the documents for the batch as well as for each of the transaction. When user
submits the batch, the documents are transferred to respective recipients.

!  
  

Intercompany transactions entry pages incorporate various security features. The user can enter
transactions only for those intercompany organizations that are assigned to the user. Other
security features include minimum transaction amount, control amount and function security.

For example:

Intercompany accountant processes intercompany transactions for many intercompany

organizations in the enterprise.What is different between these two is :

R11i - Each responsibility has only one subsidiary assigned, therefore a user can initiate
intercompany transactions for one subsidiary from each responsibility

R12 â¼³ the user can initiate intercompany transactions for many trading partners without
changing responsibility

Intercompany Periods
The new Intercompany calendar gives the user the option to control intercompany transaction
processing by periods status.

What is observed in this functionality can be best describe as:

If a user wants to control intercompany cut-off dates, then the user can choose which General
Ledger calendar will be used to control transaction entry by intercompany period status.
Intercompany Calendar prevents users from entering transactions in closed periods and from
closing the period if open transactions exist for the period user wants to close. When the user
tries to close General Ledger accounting period, or Oracle Payables period or Oracle Receivables
period while Intercompany Period is still open, the warning message can be displayed informing
user about the status of intercompany period.

Setup Profile Options

In AGIS there is no profile options that means these three as below intercompany profile options
used in R11i are obsolete in this release.

Intercompany: Protect Receiver Natural Account

ntercompany: Subsidiary

Intercompany: Use Automatic Transaction

Intercompany Reconciliation and Reporting

There are two new reports avaible in XML Publisher format

Intercompany Transaction Summary report

Intercompany Account Details report.

These reports replace reports that were available in the Global Intercompany System (GIS) in
Release 11i.

The new reports offer all of the functionality of the obsolete reports plus additional benefits.

A bit on these 2 reports:

1)Intercompany Transaction Summary report replaces the Intercompany Transaction Detail

report and Unapproved Transaction Listing report.

The purpsoe of this report is to give user a clear overview of intercompany transactions and their
statuses, there so that day-to-day tasks and speeds up period close activities.
This report also provides supporting documentation for intercompany reconciliation and helps
keep intercompany in balance by uncovering any potential discrepancies.

2) Intercompany Account Details report replaces the Transaction Activity Summary report

This new report provides a detailed listing of all accounting lines for intercompany batches,
grouped by transaction.

The report is divided into two sections:

one section for outbound batches

one section inbound transactions.

The outbound section shows transactions initiated by the organizations to which the user has an
access, the inbound section shows transactions received by these organizations. The user can
choose whether to include inbound, outbound, or both sections in the report.

The user can run the report for one or many organizations to which the user is given the access.

User can select what parameters like initiator, Recipient, GL Date range, Batch Number range,
Transaction Status, Currency, Batch Type, Invoice Number, and many more to run the report by.
User can run the report by ranges of initiator and recipient accounts to see what transactions
make up their balances.

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