8/6/2019 General Ledger Sathya
1/34
General Ledger
A Deep Drive
J. Sathya Kumar
8/6/2019 General Ledger Sathya
2/34
Definition
Oracle General Ledger:Oracle General Ledger:
Oracle General Ledger is a comprehensive
financial management solution that
dramatically enhances financial controls,
data collection, information access, and
financial reporting throughout yourenterprise.
8/6/2019 General Ledger Sathya
3/34
Invoices
Payments
Revenues
Receipts
Additions/Retirements
Depreciation
Adjustments
Accrued Receipts
Inventory
COGS
Salary
Deductions
Revenue
LaborCosts
Usage Costs
WIP activity
Other costs
Payables
Inventory
Work inProcess
Receivables
Projects
Purchasing
GeneralLedger
Assets
Payroll
Interface Information: Accounting Entries
HumanResources
Employee
Information
8/6/2019 General Ledger Sathya
4/34
Oracle
General Ledger *
Oracle
Order Entry
Oracle
Receivables
Oracle
Inventory
Customer InformationCredit InformationSales Reps.Payment Terms
Invoice InformationReturns/CreditsBooked Orders
ShipmentReservationDemands
Units of MeasureItem InformationATP/On Hand
Journal Entries- Invoices- Receipts
Oracle
Assets
Oracle
Purchasing
Units of MeasureItem InformationATP/On Hand
InventoryTransactions(Receipts)
Oracle
Payables
Invoice Information
(from POs)
Vendors
Information
Journal Entries- Invoices- Payments
Journal Entries- Additions- Retirements- Depreciation- Adjustments
Assets Information(from Invoices)
Oracle
Work in Process
Oracle
Bill of Material
Model Structure
Items Info/Units of Measure
Model Structure
Internal Requisitions
Purchase Orders(Outside Processing)
Final AssemblyOrders
Reservations
Demand
Oracle
Master
Scheduling
Item InformationUnits of Measure
Item InformationUnits of Measure
PlannedOrders
Sales Orders
RequisitionsPurchase Orders
External
Systems**
Oracle
Project
Accounting
RevenueAdjustments
Invoice Information
Accrued Receipts
Customer Data
Vendor DataVendorInvoices
Expense Reports
Journal Entries(inventory and workin process activity)
Oracle
Human
Resources
Journal Entries
Employee Data
E-Business Suite Integration
8/6/2019 General Ledger Sathya
5/34
Shared General Ledger Data Many elements of an Oracle General Ledger
are shared with otherOracle applications.
Account Structure
Value sets
Segment values
Security rules
Cross-validation
rules
Shorthand Aliases
GeneralLedger
Accounting Calendar
Periods
Period Types
Currencies
Daily rates
Rate types
Journal Entries
Sources
Categories
8/6/2019 General Ledger Sathya
6/34
SOB USA($)
SOB BEL()
SOB ATS()
SOB DM()
SOBs
R11i
Pain
Points
USA Belgium Austria Ger manyLegalEntities
OU USA OU ATSOU BEL OU DMOUs
Modeling Entities with Sets of Books
8/6/2019 General Ledger Sathya
7/34
R11i
Pain
Points (continued) 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
8/6/2019 General Ledger Sathya
8/34
Reporting Currency (USD)
KeyC
oncepts and Terminology
SLA
Transaction
Accounting
Subledger Transactions
SLA
Corporate Ledger (EUR)(Primary Ledger)
Statutory Ledger (EUR)(Secondary Ledger)
AP AR FA Others
Legal Entity
Maintaining Multiple Accounting Representations with
Secondary Ledgers or Reporting Currencies
8/6/2019 General Ledger Sathya
9/34
Configuring PL/RC & SL
8/6/2019 General Ledger Sathya
10/34
Key Concepts and Terminology
Main, record-keepingledger
Optional, additional
accounting representation of
Primary Ledger
Primary Ledger (PL) Secondary Ledger
Defined by 4Cs:
Chart of accounts
Accounting calendar
Primary currency
Subledger aCcounting
Method
Can differ in one or all
4Cs:
Chart of accounts
Accounting calendar
Primary currency
Subledger
aCcounting Method
Optional, currency
representation of
Primary or Secondary
Ledger
Reporting Currency
Only differs
in:
Currency
8/6/2019 General Ledger Sathya
11/34
Currency
Difference Between Secondary Ledgers and
Reporting Currencies
Corporate
Chart of accounts
Monthly
Calendar
Accounting
Method
US GAAPAccrual
Use a Secondary Ledger
If difference isonlycurrency,
Use ReportingCurrencies
If one ormore of the following are different,
8/6/2019 General Ledger Sathya
12/34
SL Vs RC
COA Calendar Currency SLAM
(Convention)
?
Sathya (LE) SATHYA_ COA Accounting -
12
USD US GAAP
Sathya OU1
(INDIA)
SATHYA_COA Accounting -
12
INR US GAAP
SATHYA OU2
(FRANCE)
SATHYA_COA Accounting
12
EUR FR S
SATHYA OU3
(USA)
SATHYA_COA Accounting 9 USD US GAAP
SATHYA OU4
(Japan)
SATHYA_JAPAN
_COA
Accounting
12
JPY US_GAAP
8/6/2019 General Ledger Sathya
13/34
AccountingC
onfiguration Process ofConfiguring PL/SL and RC in
ASM.
Used ASM as a tool.
Used in case of Accounting for Multiple
companies.
8/6/2019 General Ledger Sathya
14/34
Accounting Configuration classification
Business Requirement
Multiple Companies
share the same ledgerMultiple Companies
using Diff LedgerMultiple companies
using special purpose
Ledger
Other Accounting
Configuration
Exclusive Accounting
ConfigurationShared Accounting
Configuration
8/6/2019 General Ledger Sathya
15/34
Why Multiple companies share the same Ledger?
Country in which companies operate do not have strict
statutory requirement such as unique COA for LE.
You do not need to open and close periods independently
between LE and companies.
Multiple LE can maintain same accounting representation
such as same corporate and statutory requirement.
Multiple LE share the same COA,Calendar,Currency and
SLAM. Shared Accounting Configuration is the only solution
for the above business requirements.
8/6/2019 General Ledger Sathya
16/34
Shared Accounting Configuration
Allows accounting for multiple LEs in same PL.
Assign Unique Balancing Segment Value to represent each
LE.
Easy identification of transaction per LE.
If LE is subject to multiple set of legislations, SL can be
attached to PL.
RC can be attached if a different currency representation is
required.
8/6/2019 General Ledger Sathya
17/34
Shared Accounting Configuration
8/6/2019 General Ledger Sathya
18/34
Legal Entities Modeled as Ledgers(Exclusive)
Sathya Enterprise
Legal Entity France
BSV20BSV10
UK Ledger (GBP) French Ledger(EUR)
Legal EntityU
K
BSV30
8/6/2019 General Ledger Sathya
19/34
Legal Entities Modeled as BSV(Shared setup)
Sathya Enterprise
Legal Entity USA Legal Entity CAD
US Ledger(USD)
BSV10 BSV20BSV30
8/6/2019 General Ledger Sathya
20/34
Multiple Companies using different Ledgers
Strict Legal requirement for LE to have their data separate.
Diff Accounting structures(eg one company requires 20 segment and
other may require 5)
One require a weekly calendar and other requires monthly.
One may use Accrual method and other cash basis. Strict Tax requirement.
Facility to open/close periods independently for each LE.
Diff accounting representation for diff LEs.
Using multiple Oracle Applications Instance.
Exclusive Accounting configuration is the only solution whichallows one LE to be assigned to one PL.
8/6/2019 General Ledger Sathya
21/34
Multiple Companies user Special Purpose Ledger
Name says it all.
Used when one of following is true:
No requirement to maintain transactions using LE context.
GL is used as a standalone application. Used for consolidation adjustments which are separate from your day
to day transactions.
Ledger used to enter consolidation adjustments across multiple LEs.
8/6/2019 General Ledger Sathya
22/34
Accounting Configuration comparision
LE Attributes Shared Exclusive Others
Number of LEs
allowed per
Ledger
Multiple LE can
be represented
Only one LE No LE concept
Level of Statutory
compliance
LOW:
Countries not
highly regulated
HIGH:
Strict legislative
compliance
NONE
Ledger Attributes:
COA
CURRENCY
Calendar
SLAM
All LEs must
share the same
attributes.
LEs use different
attributes.
Any
Combination.
8/6/2019 General Ledger Sathya
23/34
Feature Comparison by Accounting Configuration
Feature Shared Exclusive Other
Open/Close GL
Accounting Periods
Same time Different Time Independent of
other ledgers.
VAT Controls All LEs share the
same VAT in
Oracle Payables
Have autonomous
VAT controls.
N/ANo Subledger
transactions exists.
Consolidated
Payments
Allow consolidated
invoice payments
across multiple
LEs.
No ability to make
lumpsum payment
across LE.
N/A. No Subledger
transactions exists.
Multiple LE
Journals
Allows journals
across multiple LE.
No ability to create
journals that cross
multiple LE.
N/A. No Subledger
transactions exists.
8/6/2019 General Ledger Sathya
24/34
Currency
Difference Between Secondary Ledgers and
Reporting Currencies
Corporate
Chart of accounts
Monthly
Calendar
Accounting
Method
US GAAPAccrual
Use a Secondary Ledger
If difference isonly currency,
Use ReportingCurrencies
If one ormore of the following are different,
8/6/2019 General Ledger Sathya
25/34
Conversion Levels
BalanceUse GL Consolidation
to Transfer Balances
JournalUse GL Posting for
Automatic Journal
Replication
AP ARFA
Subledger Use SLA for Automatic
Maintenance
Adjustments
Only
Manual Adjustments in
GL
Level of Detail Path to SL Path to RC
Use SLA
(Full-MRC)
Use GL Posting
(Thin-MRC)
Use GL Translation
8/6/2019 General Ledger Sathya
26/34
Key Concepts and Terminology
You only need to maintain an additional accountingrepresentation at the balances level
You do not need the balances to be updated in real-time;you can wait until they have been transferred to thesecondary ledger
Use Balance Level Secondary LedgerSecondary Ledgerif:
8/6/2019 General Ledger Sathya
27/34
RCC
onversion Level Balance Highest Level (No Control)
Subledger Level Lowest Level (Tight
Control)
Journal Level Posted
transactions(Moderate control)
8/6/2019 General Ledger Sathya
28/34
SLAM in SL SLAM in SL can be used only when
conversion is done at Subledger Level or
Adjustment Only Level.
All the 3Cs (Currency, Calendar and
COA)should be same if conversion is done
at Adjustment only Level.
8/6/2019 General Ledger Sathya
29/34
Levels ofC
onversion
8/6/2019 General Ledger Sathya
30/34
SLC
onversion Level
8/6/2019 General Ledger Sathya
31/34
Other Topics
Flex field
Cross Validation Rules
Dynamic Inserts
Security Rules
AHM Roll up Groups and Parent Account
Data Access Set
8/6/2019 General Ledger Sathya
32/34
8/6/2019 General Ledger Sathya
33/34
8/6/2019 General Ledger Sathya
34/34
Thank You