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2 Actions by Competitors
Globalization is unstoppable.
3 Changing Customer Requirements Regardless of geography, industry or
income, companies are globalizing to
4 Industry Standards and Regulations
gain new customers and access new
5 Tax Codes markets. Is this a good thing? Nearly
two-thirds of the CEOs we surveyed
6 Changing Workforce Attitudes are positive about the impact that
globalization will have on their
7 International Reporting Standards
organizations over the next three
8 Language and Cultural Differences years.
Source: 9th Annual Global CEO Survey –
Direct impact on Finance Globalization and Complexity; PwC 2006
Major Focus
Easy Reporting
Parent Compliance
Transparent US GAAP / IAS-IFRS
Audit, €+$ Corp COA
Reconciliation Financial Analytics Corp Calendar
& Drilldown Data for
Management
+ National Compliance
- and Local Regulation
Compliant
€ National COA
Comprehensive Local Calendar
and compliant Controlled
processing Transaction
Entry
How Financials Release 12 Can Help
The Global Business Release
Release Twelve
The Global Business Release:
A New Financial Architecture
Global Financial Architecture
6 Major Initiatives
1. Ledger and General
Ledger Ledger Sets
& Ledger
Ledger Sets
2. Multi-Org
Dr Cr
Access Subledger Accounting (SLA)
Control
3. Subledger Tax Inter Bank
Accounting Engine Company
Model
4. Tax Engine
5. Intercompany
Multi-Org
6. Bank Model Access
Control
Inventory Receivables Projects
Multi-Org
Access Control
Work Think Manage
MOAC: Multi-Org Access Control
Role based access to Operating Units
Select
Operating
Units
In daily use
Run Reports
Select
Across
Operating
Classify Unit
Organization Operating
classification
as operating Units
unit
<Insert Picture Here>
Subledger Accounting
GENERAL LEDGER
Cash 100 3,500,000 2,750,000 750,100
SLA Controls that Receivables
Inventory
1,000,000
500,000
3,000,000
1,200,000
3,500,000
1,500,000
500,000
200,000
GL Balances and Assets
Prepayments
100,000
1,000
100,000
1,000
Payables (750,000) 2,800,000 2,700,000 (650,000)
SLA Balances tie, Accruals (250,000) 50,000 (300,000)
Shares (100,000) (100,000)
and that both tie Previous Results (501,100) (501,100)
Balance Sheet - 10,500,000 10,500,000 -
to the document Sales 3,000,000 (3,000,000)
COGS 1,500,000 1,500,000
(invoice, payment, etc.) R&D 300,000 300,000
S&M 300,000 300,000
sources G&A-Fin 300,000 300,000
G&A-IT 150,000 150,000
G&A-HR 150,000 150,000
Period Income 300,000 300,000
Income Statement - 24,000,000 24,000,000 -
Opening Closing
Balance Debit Credit Balance
SUBLEDGER ACCOUNTING
Receivables
Customer One 250,000 150,000 400,000 -
Customer
Customer
Customer
Two
Three
Four
350,000
100,000
100,000
250,000
1,500,000
800,000
450,000
1,400,000
750,000
150,000
200,000
150,000
General Ledger
Customer Five 200,000 300,000 500,000 -
Total 1,000,000 3,000,000 3,500,000 500,000
Payables
Vendor
Vendor
Vendor
I
II
III
(250,000)
(100,000)
(150,000)
1,000,000
75,000
725,000
900,000
50,000
775,000
(150,000)
(75,000)
(200,000)
SLA Detail
Vendor IX (250,000) 1,000,000 975,000 (225,000)
Total (750,000) 2,800,000 2,700,000 (650,000)
Multiple Accounting Representations
Global Compliance – Statutory and Stock Market
Ledger A Ledger B Multiple Ledgers
French Rules US GAAP
Plan Comptable US COA
French Calendar US Calendar
EUR EUR
or
Dr Cr
Subledger
Accounting
Single subledger
transaction
can create multiple
accounting Chose to use an
representations alternative Ledger -
and in multiple or just an Adjustment
Payables Invoice currencies Ledger or segment
SLA keeps the Subledgers & GL tied out
Keep the auditors happy!
Subledger
Accounting Accounting Journal
Events Program Entries
GL
Subledger Accounting Journal
Service Entries
and
Transactions Reconciled: Subledger Balances
(& adjustments) Docs, SLA, GL in synch Balances
<Insert Picture Here>
Ledger B
US GAAP Implements the 4 C’s:
US COA Accounting Method
US Calendar Chart of Accounts
EUR Calendar
Currency
Reporting Currency
Ledger Sets
Global Information At A Glance
Ledger A Ledger B
French Rules US GAAP
Plan Comptable US COA
French Calendar US Calendar
EUR EUR
Reporting Currency
Ledger Sets
Global Information At A Glance
Share:
Ledger Set Chart of Accounts
Calendar
Ledger C
US GAAP
US COA
Ledger A Ledger B US Calendar
French Rules US GAAP USD
Plan Comptable US COA
French Calendar US Calendar
EUR EUR Ledger D
US GAAP
US COA
US Calendar
AUD
Key benefits to many Ledgers in one set
• Decision-driving business information always available
• Simpler processing and General Ledger management
• Data and definitions that can be shared and secured Reporting Currency
Currency in Release 12
• Transaction Currencies
• Accounting Currency in Primary Ledger
• Reporting Currency in Primary Ledger
• More Accounting Currencies in Secondary Ledgers
• For every transaction OR
• For SLA Posting level / GL activity level
• Balance level Translation or Remeasurement in
Ledgers – within Ledger sets, run at one click
• Balance & Activity level Translation or
Remeasurement in Financial Consolidation Hub
• Enhanced Revaluation
• [Functional Currency term dropped: conflicts with IAS 21 / FAS 52]
Data Access, Definition Access
View Write
GL Manager Accountant
France Ledger
Canada Ledger
US Ledger
Ledger Considerations
Ledger Sets – Work them your way
Management
Ledger Set
Corporate
US Ledger Set Ledger Set
Legal Ledger Legal Ledger Legal Ledger Adjustment
US1 US2 US3 Ledger US
adjustments
eliminations
UK Ledger Set
Legal Ledger Legal Ledger Adjustment Adj Ledger
UK1 UK2 Ledger UK Corporate
Global Business
Functions
Setup and maintain: Legal Entities, Establishments, Jurisdictions, Legal Authorities, Legal Addresses
Where LE fits in…
Accounting Setup
Manager (ASM)
E-Business Tax
Information Visibility • Use of E-Business Suite components such as trading partner geography,
trading partner classification, legal entity, inventory item categorization,
and accounting event.
Oracle E-Business Tax
Processing taxes for transactions and reporting
Transactions
Purchasing
Compliance, Assurance Efficiency, Global Visibility
Parties
Single Interface for Transactions
Payables Places
Calculate
Determine Applicable Tax Status Taxable Tax
Products Regimes Taxes & Rate Basis Amount
Sales Orders
Processes
Transparent Integration with Tax Partner Services
Receivables
Tax Reports
… - PDF, HTML, RTF
- Security enabled
Tax
Transactions
Taxes,
Rules
<Insert Picture Here>
Advanced Intercompany
(AGIS)
Open
Interfaces /
API
Generate subledger invoices Online
Control transaction entry with Reconciliation
Excel Reporting
Intercompany Calendar
(Web ADI)
Fully Configurable Approval Rules
Flexible Security Model
Centrally defined Intercompany XML
Accounts Publisher
Reports
Dr Cr
General Subledger
Ledger Accounting Receivables Payables
AGIS at Work
Rebilling a Corporate Cost from an USA HQ
Subledger
General Invoices &
Ledger Entries Documents
Illinois New York France Italy
Company Company Company Company
<Insert Picture Here>
Banking Model
Work in Process
Purchasing Payables Assets
Plus
Centralized Credit Card Model
Credit Card Encryption
Supplier & Customer Banks in TCA
Bank Model: Example of What You Can Do
Pay invoices from different OUs with 1 instruction
• New Payments Module
OU A
• New Bank Model
• New Bank & Credit Card
Features
OU B
OU C Single
Payment Bank Payments
Instruction
Sub Ledger
Accounting
Invoices
Banks
Legal Entity
Operating Units
<Insert Picture Here>
Sharing Services
• Global Set-up
Work in Process Purchasing Payables
• Global Integration
Share Services, maintain privacy
Exploit Cross-OU Processes
Yesterday: An LE Group in 1
SoB with 1 OU - no partitioning R12: Introduce partitioning
without sacrificing processes
Ledgers in
Ledger Sets, MOAC
New OUs
Inventory
Inventory Inventory Receivables Projects
Receivables Projects
Work in
Process Work in
Work in
Process Assets Process Purchasing Payables Assets
Purchasing Payables
Release 12: The Global Business Release
MOAC,
Intercompany,
+300 Features
Bank, Payments
TCA, LE
QUESTIONS