<Insert Picture Here>

Release 12 : Ledger Architecture

Milan Parikh Principal Product Manager

Agenda
Set of Books Architecture Market Drivers Key Features Business Benefits Upgrade

<Insert Picture Here>

Set of Books Architecture

Set of Books Architecture

Set of books
Holds the accounting for 1 or more legal entities Defined by 3Cs

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

Modeling Entities with Sets of Books

SOBs

SOB East ($)

SOB West ($)

SOB ATS ()

SOB DM ()

Legal Entities

US East

US West

Austria

Germany

OUs

OU East

OU West

OU ATS

OU DM

Modeling Entities with Sets of Books

Pros
Each legal entity is a separate set of books Data is secure Easy to secure definitions, such as FSG reports

Cons
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

 with Balancing Segment Values

SOBs

SOB US ($) US East (01) US West (02)

SOB Europe () Austria (03) Germany (04)

LEs
(BSVs)

OUs

OU East

OU West

OU ATS

OU DM

 with Balancing Segment Values

Pros
Fewer books to maintain No changing responsibilities Share setup information Perform processes legal entities Easy reporting Consolidated information across

Cons
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 LEs with BSVs

<Insert Picture Here>

Market Drivers

Market Drivers

Cross/Multiple-Set of Books Operations and Reporting Data and Definitions that can be shared and secured Support for Multiple Accounting Representations

<Insert Picture Here>

Key Features

Key Features

Ledger - Primary, Secondary and Reporting Currencies Ledger Sets Data Access Sets Definition Access Sets

<Insert Picture Here>

Ledger

Ledger
Defined by 4Cs i. Chart of accounts
ii. Functional currency iii. Accounting calendar iv. 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

<Insert Picture Here>

Secondary Ledger

Business Scenario
US GAAP US COA US Calendar US GAAP US COA US Calendar

French IAS Plan Comptable French Calendar

Operations in US, UK, France

Business Scenario
US GAAP US COA US Calendar

$
US GAAP US COA US Calendar
Reporting ledger

French IAS Plan Comptable French Calendar

Secondary Ledger

US GAAP US COA US Calendar

$
US GAAP US COA US Calendar

Secondary Ledgers
Business Reasons
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

Benefits
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

Secondary Ledger
Maintaining Multiple Accounting Representations with Secondary Ledgers Legal Entity

Accounting

Corporate Ledger (Primary Ledger)

Local Statutory Ledger (Secondary Ledger)

SLA

SLA

Subledger Transactions Transaction AP AR FA Other Subledgers

<Insert Picture Here>

Reporting Currencies

Reporting Currencies
Business Reasons
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

Benefits
For accounting and reporting in another currency (in addition to the ledgers primary currency) Can be used with Primary or Secondary ledgers

Conclusion
If one or more of the following are different,

4Cs of a Primary Ledger

If difference is only currency,

US GAAP Accrual

Corporate Chart of accounts

Monthly Calendar

Accounting Method

Currency

Use a Secondary Ledger

Use Reporting Currencies

<Insert Picture Here>

Ledger Sets

Ledger Sets
Grouping of ledgers with the same chart of accounts and calendar/period type combination Essentially treats multiple ledgers as one

Ledger Sets
Perform the Following Across Ledgers:
Open/Close Periods
Open/Close Periods Independently or Simultaneously

Create Journals
Allocations Across Ledgers Recurring Journals for All Ledgers

Ledger 1 Ledger 2 Ledger 3 Ledger 4

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

Ledger Set

Ledger Sets

<Insert Picture Here>

Data Access Sets

Data Access Sets

Enable responsibilities to access multiple ledgers Achieve granular control for accessing balancing segment values Setup read/write privileges

Data Access Sets

Access Level Ledger Legal Entities
(BSVs)

Read Only

Read/Write

US Corporate Ledger ($) US East (01)

View Journals View Balances View Reports

US West (02)

US South (03)

Create/Post Journals Update Balances Run Reports

Data Access Sets

Access Level Ledger Read/Write to Full Ledger US Corporate Ledger ($) US East (01)
View Journals View Balances View Reports

Legal Entities
(BSVs)

US West (02)

US South (03)

Create/Post Journals Update Balances Run Reports

Define Data Access Set

Setup : Financials : Data Access Sets

<Enter slide note>

<Insert Picture Here>

Definition Access Sets

Definition Access Sets

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

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

Definition Access Sets

Control Access to Definitions

GL Clerk

Privileges Use View Modify

Controller

Rent Allocation Recurring Rent

Rent Allocation Recurring Rent Balance Sheet Income Stmt

Setup Definition Access Set

Setup Definition Access Set

Setup Definition Access Set

<Insert Picture Here>

Business Benefits

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

Modeling Entities with Ledgers

Pros
Each legal entity is a separate ledger Data is secure Easy to secure definitions; Reports and Mass Allocations

Cons
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

 with Balancing Segment Values

Pros
Fewer ledgers to maintain No changing responsibilities Share setup information Perform processes across legal entities Easy reporting Consolidated information

Cons
Cannot share setup and data across currency boundary No data security Cannot secure definitions, such as FSG Reports and Mass Allocations Implicit mapping of LEs with BSV

<Insert Picture Here>

Upgrade

Upgrade
Release 11i
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

Release 12
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

Thank You