GL Features in R12

1.Multi Org

In Release 11i, a user assigned to an Operating Unit (OU) would process data from the products deployed in that OU. To process data for another OU, a user would log out of the first and into the second. The data generated in that OU would be accounted for according to rules generated by various product accounting engines, and posted to general ledger in ways appropriate for the different products, some generating part of the detail at different times in the process. General Ledger sets of books (Sob) were self-contained, reflecting the balances of the entity to which you’d assigned the Sob, and managed by users assigned to the Sob.

In Release 12.0, by contrast, users can be assigned to multiple operating units, and are supported by processes and transactions that can span operating units. Their data is book-kept according to rules stored in a single accounting engine,and the accounting is stored in subledger tables that are standard across all products. Complete accounting is maintained for every appropriate event, and all subledger entries are fully balanced and detailed. A single, common posting engine summarizes to your required level of detail, and posts to General Ledger.Sets of Books are replaced by the accounting entity’s ‘ledger’ for data, and its ‘Ledger Set’ for processing, from reporting, opening and closing, through allocations. Ledgers can be combined into ledger sets, and GL users are assigned to the ledger sets. User access to multiple operating units is called ‘Multi-Org Access Control’,(MOAC).

2. Multi-Org Access Control (Changed functionality): Multi-Org Access Control enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating

units within a single applications responsibility. This increases the productivity of Shared Service Centers, as users and processes no longer have to switch applications responsibilities when processing transactions for multiple operating units at a time. Data security and access privileges are still maintained using security profiles that now support a list of operating units.

3. Multi-Org Security Profile Preferences(Changed functionality): A Multi-Org Security Profile defines the list of operating units to which a user has access. If a user typically uses a subset of the operating units in his security profile, he may set up Preferences to limit the operating units available to him
during transaction processing. The user can also set a default ‘operating unit’ tominimize manual data entry when an operating unit context is required.

4. Enhanced Multi-Org Reporting(Changed functionality): Consistent with the Multi-Org Access Control feature, users are able to run reports using two levels:

• Ledger: The report runs for all operating units within a ledger to which the
user has access
• Operating Unit: The report runs for a selected operating unit that belongs to the user’s security profile.

5. Multi-Org Integration with Accounting Setup Manager:(New functionality) The Accounting Setup Manager is a central location to define your accountingrelated setup across all financial applications. Here, you can define your legal entities and their accounting context, which includes the ledgers that will contain the accounting data for each legal entity. Multi-Org is integrated into the Accounting Setup Manager such that users can define operating units and their relationship to ledgers. For each operating unit, users can also select a legal entity to provide a default legal context during transaction processing. This centralizes your setup and makes it easier to inquire on and maintain relationships between ledgers, legal entities, and operating units.

6.GL Accounting Setup- Simultaneous Accounting for Multiple Reporting Requirements:(New functionality)

Companies that are global in nature and that have operations in different localities often have multiple reporting requirements. These companies and their subsidiaries often need to satisfy the accounting and reporting requirements for each country as well as those of the parent company. This involves performing accounting in accordance with accounting principles and standards of multiple countries and in different currencies, charts of accounts, and/or calendars. The reporting requirements can also be statutory in nature, and one subsidiary may even need to satisfy multiple sets of statutory requirements. Oracle General Ledger simplifies the simultaneous management of the accounting for all of these different reporting requirements in this latest release. You are able to define your legal entities and the setup needed to address each accounting and reporting requirement using the Accounting Setup Manager. New enhancements and integration with Subledger Accounting enable Oracle General Ledger to perform accounting for all reporting requirements of a legal entity simultaneously.

7. Centralized Accounting Setup(New feature): The Accounting Setup Manager is a central location to define your accounting-related setup across all financial applications. Here you can define your legal entities and their accounting context, which includes the ledgers* that contain the accounting data for each legal entity. If a legal entity has multiple reporting requirements, you can include additional reporting currencies or ledgers in the accounting context to satisfy the additional requirements.

8. Enhanced Reporting Currency Functionality (Changed functionality) : Multiple Reporting Currencies functionality is enhanced to support all journal sources. Reporting sets of books are now simply reporting currencies. Every journal that is posted in the primary currency of a ledger can be automatically converted into one or more reporting currencies. This conversion can be performed by Subledger Accounting, to convert all subledger journal entries, or by General Ledger, to convert more summarized General Ledger journals. You can choose to convert any journal sources and

categories.

9. Improved Processing Efficiency- Simultaneous Data Access to Multiple Legal Entities and Ledgers: -New feature.

Can access multiple legal entities and ledgers when you log into Oracle General Ledger using a single responsibility. This improves processing efficiency by reducing the need to switch between responsibilities when trying to access data for different ledgers or legal entities.

10.Simultaneous Opening and Closing of Periods for Multiple Ledgers: (New feature) The Open and Close Periods Programs have multiple enhancements. You are able to run any of the Open and Close Periods Programs from the Concurrent Manager. This allows you to take advantage of scheduling and request set capabilities for greater processing efficiency. Also, if you manage multiple

ledgers, you can open or close periods for multiple ledgers simultaneously. You can even keep the status of periods across multiple ledgers in synch with new programs that ensure a specific period is Open or Closed for all of the ledgers you manage.

11. Cross-Ledger and Foreign Currency Allocations:(New feature) You are able to allocate financial data from one or more ledgers to a different target ledger. This enables you to perform cross-ledger allocations, which is useful for purposes such as allocating corporate or regional expenses to local

subsidiaries when each entity has its own ledger. This is possible even if the target ledger is in a different currency than the source ledger(s) because you can create allocations in foreign currencies. Foreign currency allocations are also useful within a single ledger if you need to allocate amounts to a currency that is different from the primary currency of a ledger.

12. Simultaneous Currency Translation of Multiple Ledgers (New functionality) If business manages multiple ledgers; you can run the Translation program for multiple ledgers simultaneously.

13. Financial Reporting Across Ledgers (New Functionality): Business is able to run Financial Statement Generator (FSG) reports for multiple ledgers simultaneously. This is useful if you manage multiple ledgers and want to run a balance sheet or income statement report for all ledgers at the same time.

14. Automatic Journal Copy:(New Feature) Business is able to automatically copy an existing journal batch to create a new journal batch with the same journals and journal lines. This reduces the amount of work you need to do to re-create a journal that has already been defined. During the copying process, you have the option to change the period and effective date of the journal batch.

15. Streamline Automatic Posting(New Feature): AutoPost Criteria can be shared across ledgers that have the same chart of accounts and calendar. This dramatically reduces the number of AutoPost Criteria sets you need to define. Furthermore, you can automatically post journals across multiple ledgers imultaneously.

16. Streamline AutoReversal Criteria Setup:(New feature) AutoReversal Criteria can be shared across ledgers. This dramatically reduces the number of AutoReversal Criteria sets you need to define.

17. Streamline Consolidation Mappings : You are able to define Chart of Accounts Mappings (formerly known as Consolidation Mappings) between two charts of accounts. Therefore, if you
have multiple Consolidation Definitions for parent and subsidiary ledgers that share the same chart of accounts pair, and their mapping rules are the same, you only have to define a single Chart of Accounts Mapping. This significantly reduces the number of mappings you need to define if your Consolidation Definitions involve the same pair of charts of accounts and the mapping rules are the same.

18. Replacement for Disabled Accounts: When an account is disabled, you can prevent transactions that include the account from erroring during journal import by defining a replacement account for the disabled account. Journal import replaces the disabled account with the replacement account and continue the journal import process if the replacement account is valid. This improves processing efficiency by preventing the journal import process from erroring and enabling the successful creation of the journal with minimal user intervention when an account has been disabled.

19. Data Security across Legal Entities and Ledgers: In R12 release, since you can access multiple legal entities and ledgers when you log into Oracle General Ledger using a single responsibility, Oracle General Ledger provides you with flexible ways to secure your data by legal entity, ledger, or even balancing segment values or management segment values. You are able to control whether a user can only view data, or whether they can also enter and modify data for a legal entity, ledger, balancing segment value or management segment value.

20. Management Reporting Security: You can designate any segment (except the natural account segment) of your chart of accounts to be your management segment and use Oracle General Ledger’s security model to secure the management segment for reporting and entry of management adjustments.

21. Prevent Reversal of Journals with Frozen Sources: Journals with frozen journal sources are prevented from being reversed to streamline the reconciliation of data from Subledger Accounting sources.

22. Prevent Reversal of Unposted Journals: Users are no longer allowed to reverse ‘Unposted’ journals.

23. Entered Currency Reporting and Analysis: Oracle General Ledger tracks the balances that are entered in your ledger’s primary currency. This enables customers to perform currency analysis on amounts that are entered in the ledger’s primary currency for the purposes of currency valuation and hedging.

24. Foreign Currency Recurring Journals: You can use Recurring Journals to create foreign currency journals. This enables user to pre-define journals that are recurring in nature and that are in foreign currencies and simply generate them when business need them.

25. Intercompany Balancing Support for Encumbrances: Intercompany encumbrance journals are automatically balanced during journal posting.

26. Integration with Subledger Accounting: Oracle Subledger Accounting provides tools that allow users to meet multigaap, corporate, and fiscal accounting requirements. With a flexible tool

called Accounting Methods Builder, users can determine the accounts, lines,descriptions, summarization, and dates of their journal entries. Users can also add detailed transaction information to journal headers and lines. Detailed subledger accounting journals are available for analytics,auditing, and reporting. They are summarized, transferred, imported and posted to Oracle General Ledger.

Oracle General Ledger’s integration with Subledger Accounting provides a unified process to post data to general ledger from Oracle subledgers and external feeder systems. Also, it provides a consistent view when drilling down from general ledger balances to subledger transactions. Please refer to the Oracle Subledger Accounting section of this document for more information.

27. Enhanced Intercompany: The Global Intercompany System (GIS) feature from previous releases has been incorporated into the Oracle Advanced Intercompany System product. Please refer to the Oracle Advanced Global Intercompany System section of this document for more information.

28. GL Standard Reports Integration With XML Publisher: Oracle General Ledger’s Account Analysis, General Journals and Trial Balance standard reports are now integrated with XML Publisher. Using XML Publisher allows you to leverage the formatting features of a word processing application to design the layout of your report.

In R12 a new product called Oracle Subledger Accounting is introduced.

Oracle Sub ledger Accounting is a new product in this release. Oracle Sub ledger Accounting enables corporations to comply with corporate,local and managerial accounting and audit requirements via increased control,visibility and efficiency.