r12 ledger architecture
TRANSCRIPT
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Release 12 : Ledger Architecture
Milan Parikh
Principal Product Manager
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Agenda
• Set of Books Architecture
• Market Drivers
• Key Features
• Business Benefits
• Upgrade
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Set of Books Architecture
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� Set of books
• Holds the accounting for 1 or more legal entities
• Defined by 3C’s
• Chart of accounts, functional currency, accounting calendar
� Each GL responsibility tied to 1 set of books
� Managing Multiple Accounting Representations
• Multiple Reporting Currencies (MRC)
• Use GL Consolidation functionality to consolidate
Set of Books Architecture
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SOB East($)
SOB West($)
SOB ATS(€)
SOB DM(€)
SOBs
Modeling Entities with Sets of Books
US East US West Austria GermanyLegal Entities
OU East OU ATSOU West OU DMOUs
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Modeling Entities with Sets of Books
Pros Cons
• Each legal entity is a separate set of books
• Data is secure
• Easy to secure definitions, such as FSG reports
• Many books to maintain
• Changing responsibilities
• Difficult to share data and setup information
• Cannot perform processes across books
• Time-consuming open/close process
• Difficult reporting
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… with Balancing Segment Values
SOB US($)
SOB Europe(€)
SOBs
OU East OU ATSOU West OU DMOUs
LEs(BSVs)
US East(01)
Austria(03)
Germany(04)
US West(02)
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Pros Cons
• Fewer books to maintain
• No changing responsibilities
• Share setup information
• Perform processes across
legal entities
• Easy reporting
• Consolidated information
• Cannot share setup and data
across currency boundary
• No data security
• Cannot secure definitions,
such as FSG Reports and
Mass Allocations
• No explicit mapping of LE’s
with BSV’s
… with Balancing Segment Values
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Market Drivers
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�Cross/Multiple-Set of Books Operations and Reporting
�Data and Definitions that can be shared and secured
�Support for Multiple Accounting Representations
Market Drivers
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Key Features
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Key Features
• Ledger - Primary, Secondary and Reporting Currencies
• Ledger Sets
• Data Access Sets
• Definition Access Sets
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Ledger
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� Defined by 4C’s
i. Chart of accounts
ii. Functional currency iii. Accounting calendariv. Accounting method
� Set of books is converted to a ledger
� Explicit modeling of legal entities via ledgers or
balancing segment values
� The transaction entries are done in Primary Ledger
Ledger
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Secondary Ledger
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Business Scenario
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
$$
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
££
French IASFrench IAS
Plan Plan ComptableComptable
French CalendarFrench Calendar
€€
Operations in US, UK, France
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US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
$$
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
$$
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
$$
Business Scenario
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
££
French IASFrench IAS
Plan Plan ComptableComptable
French CalendarFrench Calendar
€€
Reporting ledger
Secondary Ledger
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Secondary Ledgers
• For global companies that must
comply with different countries’
legal requirements
• Useful for supplementary
purposes, such as consolidation
or management reporting
• Provides a complete accounting
picture within itself or a partial
picture to be grouped with other
ledgers to provide a complete
picture
• More flexibility!
• Represent legal entity(s) accounting information in a different:
• Accounting method
• Chart of Accounts
• Calendar
• Subledger Accounting Method
• Maintain at 4 Different Levels
• When security and independence is preferred, secure data and allow certain processes to be performed independently
• Management Reporting Efficiency
Business Reasons Benefits
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Secondary Ledger
SLA
Transaction
Accounting
Subledger Transactions
SLA
Corporate Ledger(Primary Ledger)
Local Statutory Ledger(Secondary Ledger)
AP AR FAOther
Subledgers
Legal Entity
Maintaining Multiple Accounting Representations with Secondary Ledgers
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Reporting Currencies
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Reporting Currencies
• Useful for consolidation reporting
and analysis
• No need to physically move
balances to create views of
consolidation data
• Beneficial for parent consolidation
entities that share the same chart
of accounts and calendar with
their subsidiaries
• For accounting and reporting in
another currency (in addition to
the ledger’s primary currency)
• Can be used with Primary or
Secondary ledgers
Business Reasons Benefits
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Use Reporting Currencies
Currency
If difference is only currency,
Conclusion
CorporateChart of accounts
Monthly Calendar
Accounting Method
US GAAPAccrual
Use a Secondary Ledger
4Cs of a Primary Ledger
If one or more of the following are different,
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Ledger Sets
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Ledger Sets
• Grouping of ledgers with the same chart of accounts and
calendar/period type combination
• Essentially treats multiple ledgers as one
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Ledger Sets
Open/Close Periods• Open/Close Periods Independently or Simultaneously
Create Journals• Allocations Across Ledgers
• Recurring Journals for All Ledgers
Translate Balances• Translate Balances for All Ledgers
View Information• No Changing Responsibilities
• View Journals and Account Balances
Create Reports• Report on One or All Ledgers in a Ledger Set
Perform the Following Across Ledgers:
Ledger 2
Ledger SetLedger Set
Ledger 1
Ledger 4
Ledger 3
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Ledger Sets
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Data Access Sets
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Data Access Sets
� Enable responsibilities to access multiple ledgers
� Achieve granular control for accessing balancing
segment values
� Setup read/write privileges
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Data Access Sets
Ledger
Legal Entities(BSVs)
US Corporate Ledger ($)
US East(01)
US West(02)
US South(03)
Access Level Read Only
• View Journals• View Balances• View Reports
Read/Write
• Create/Post Journals• Update Balances• Run Reports
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Data Access Sets
Ledger
Legal Entities(BSVs)
Access Level
US Corporate Ledger ($)
US East(01)
US West(02)
US South(03)
Read/Write to Full Ledger
• Create/Post Journals• Update Balances• Run Reports
• View Journals• View Balances• View Reports
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Define Data Access Set
Setup : Financials : Data Access Sets
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Definition Access Sets
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� Control access to setup/reference independently of data
security
� Enable setup sharing across ledgers
and ledger sets
� Enable setup autonomy within multi-legal entity ledgers
� Set up view, modify, and usage privileges
Definition Access Sets
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Definition Access Sets
Securable Definitions using Definition Access Sets
• Accounting Calendars
• AutoAllocations
• AutoPost Criteria Sets
• AutoReversal Criteria Sets
• Budget Formulas
• Budget Organizations
• Chart of Accounts Mappings
• Consolidation Definitions
• Consolidation Sets
• Elimination Sets
• FSG Reports and
components
• MassAllocations
• MassBudgets
• Rate Types
• Recurring Journals
• Revaluations
• Transaction Calendars
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Definition Access Sets
Control Access to Definitions
UseUse ViewView ModifyModify
GL Clerk Controller
Rent Allocation
Recurring Rent
Rent Allocation
Recurring Rent
Balance Sheet
Income Stmt
PrivilegesPrivileges
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Setup Definition Access Set
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Setup Definition Access Set
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Setup Definition Access Set
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Business Benefits
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Business Benefits
� Support for multiple accounting representations
� Primary Ledger, Secondary Ledgers
� Cross/multiple-ledger operations and reporting
� Ledger Set
� Data and definitions that can be shared and secured
� Data Access Set
� Definition Access Set
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Many ledgers to maintain
Changing responsibilities
Difficult to share data and setup information
Cannot perform processes across ledgers
Time-consuming open/close process
Difficult reporting
Modeling Entities with Ledgers
Pros Cons
Each legal entity is a separate
ledger
Data is secure
Easy to secure definitions;
Reports and Mass Allocations
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Cannot share setup and data across currency boundary
No data security
Cannot secure definitions, such as FSG Reports and Mass Allocations
Implicit mapping of LE’s with BSV
… with Balancing Segment Values
Pros Cons
Fewer ledgers to maintain
No changing responsibilities
Share setup information
Perform processes across legal
entities
Easy reporting
Consolidated information
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Upgrade
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Upgrade
• Sets of Books
• Global Accounting Engine
• AX Posting Sets of Books
• Global Intercompany System
(GIS)
• GL Intercompany Accounts
• Translated Currency
• Multiple Reporting Currencies
• MRC Primary Set of Books
• MRC Reporting Set of Books
• Thin MRC Reporting Book
• Full MRC Reporting Book
• Translated Balance
• Ledgers
• Subledger Accounting
• Secondary Ledgers
• Advanced Global
Intercompany System (AGIS)
• Intracompany Balancing
• Balance level RCs
• Reporting Currencies (RCs)
• Primary Ledger
• Reporting Currency
• Journal level RC
• Subledger level RC
• Balance Level RC
Release 11i Release 12
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Thank You
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