Accounting Setup Manager
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’s,
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:
Subledger Accounting (SLA)
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. You can read here.
Enhanced Foreign Currency Processing by Reporting Made easy
GL has added new features and enhanced existing features to support foreign currency processing , they are mainly as:
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.
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’s,
- chart of accounts
- functional currency
- accounting calendar,
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
Subledger Accounting (SLA)
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. You can read here.
Enhanced Foreign Currency Processing by Reporting Made easy
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.
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.