R12, Financial track is one of BEST release ever. We have already seen some great functionality like:
- A single responsibility to access and transact on multiple organizations
- A single ledger to manage multiple currencies
- Ledger sets to manage accounting processes across ledgers
- Centralized rules engines for tax, accounting and inter company
- A separate and simple payment creation and delivery solution
- Centralized trading partners (suppliers, banks, first party legal entities)
- Simplified reporting via XML Publisher and DBI
- Netting across trading partners
Oracle Payable:
Few Features like invoice Lines, Line level approvals, Matching to a PO shipment or receipt, Suppliers in TCA makes a complete new look. Read in details:
Read for more details
Welcome to R12 Account Payable:
As we learnt during Release 12, the E-Business Suite has couple of new products like Subledger Accounting, E-Business Tax thus significant changes have been observed in Account Payable data module as some of functionality is shared by some other products. Thus it is important to understand what is new. I would like to briefly outline the details of some of new changes and underlying impact on the objects. More details can be found in R12 release documents published by Oracle a month ago.Let’s have a dissection view of R12 payable, with some of its core objects
Suppliers:
We have seen in 11i
- Suppliers defined in AP.
- Supplier contacts replicated for each supplier site.
- Supplier becomes as TCA Party.
- Suppliers Sites as TCA Party Site for each distinct address.
- Contacts for each supplier/address , it means Single supplier address and contact can be leveraged by multiple sites, for each OU
- A single change to an address can be seen instantly by all OUs
- No longer need to manually ‘push’ updates across OUs.This can be best understood by the figure below.
1. When we upgrade supplier tables replaced with backward compatible views.
2. One party site for each distinct supplier site address
Country and address line1 are required, this is because creation of suppliers in Party in TCA data model would requires Country and address information, but it also understood if there is no country or address line 1 specified for a supplier site in cases when upgrades takes place, Payables derives the country based on the most frequently used operating unit of the Supplier’s historical transactions.
3. Employee as suppliers: address NOT migrated to party site in TCA remains in Oracle HR for data security reasons.
As we know in 11i employees are part of internal supplier’s record in order for Oracle Payables to create payments for their expense reports. Employees defined in Oracle Human Resources and associated with an Oracle Payables supplier record have existing party information. During the upgrade, Oracle Payables updates the existing party information to have a party usage of supplier but it does not migrate the employee address to the party site in TCA, they remain in Oracle Human Resources for data security reasons.
4. Utilize TCA Party relationships for franchise or subsidiary and its parent company.
Invoice:
Till 11i version, we have seen invoices:
- Had only distributions line.
- Allocation of freight and special charges are captured at the distribution level only
- Tax and payment and Project accounting Payment was captured through global Descriptive Flexfields.
1. Invoice Lines as a new additional line accommodated in Invoice data model.
Because of introduction of invoice line there is significant improvement of data flow with n other oracle modules like
- Fixed Asset - Asset Tracking
- Business Tax - Tax line
- Payment - Payment
- SubLedger Accounting - Accounting
3. Invoice distributions created at the maximum level of detail similar to 11i.
4. Core functionality
The impact with Upgrade can be summarized as:
1. One invoice line for every distribution in 11i
2. Sub Ledger Accounting requires that Payables transform the invoice distributions to be stored at the maximum level of detail
3. Global Descriptive Flexfields migrated to named columns.
That’s means functional testing is more required while upgrade takes place.
Banks and Bank Details
Now a days corporate treasury role has been greatly enhanced thus picking up a global bank as partner for all banking need is demand of time in global working model. The recent couple of years have seen drastic increase in acquisition and merger of company thus global working as well as global instance get popularity in ERP arena, and this is one of reason of the reason bank data model has been significant changes from 11 to 11i and 11i to R12.
Internal Bank Accounts
In 11i you might have observed, internal Banks defined in AP and that is shared by AP/AR/CE, Payroll and Treasury and they are bank accounts often replicated in multiple OUs
Where as in R12,
- Bank and Branch become part of TCA Parties.
- Internal Bank Account in Cash Management which is owned by a Legal Entity. Here the Operating units have granted usage rights.
In 11i
- Banks/Branches defined in AP
- Bank accounts often replicated in multiple OUs Before
- Suppliers, Banks and Branches are defined as Parties in TCA
- Supplier (party’s) payment information and all payment instruments (Bank Accounts, Credit Cards) moved into Oracle Payments.
Impact of Upgrade
1. With Upgrade banks and branches migrated to TCA parties
2. Banks merged if the following attributes are all the same:
a. Bank Number
b. Institution type
c. Country
d. Bank admin email
e. Bank name alt
f. Tax payer ID
g. Tax reference number
h. Description, Effective dates
3. Bank accounts, bank account uses are migrated into cash management.b. Institution type
c. Country
d. Bank admin email
e. Bank name alt
f. Tax payer ID
g. Tax reference number
h. Description, Effective dates
4. Transactions are stamped with the bank account uses identifiers as part of the upgrade
Integration with Oracle E-Business Tax
In 11i
- Oracle standard functionality was based out of User which determines tax by assigning Tax Codes at line level of invoice and Tax rules was controlled at underline code.
- There was global descriptive flex fields were captured for country-specific tax attributes.
- More important at most of the setup performed at OU level.
- A new module eBusinessTax determines tax based on facts about each transaction, this is reason why Oracle has introduced additional line information at invoice level.
- The module “ebusiness Tax” set and configure Tax rules which can be viewed
- Tax attributes collected in fields on key entities
- Configure tax rules once per regime and share with your legal entities
2. OUs migrated to tax content owner in R12
3. Tax information in tax codes are transformed to Regime-Rate flow.
4. E-Business Tax takes information from the AP invoice lines and creates summary and detail tax lines in the E-Business Tax repository.
Multi Org Access Control
MOAC is new enhancement to the Multiple Organizations feature of Oracle Applications.
This feature enables user to access data from one or many Operating Units while within a set given responsibility. Due to this change, all processing and some Reporting in Oracle Payables is available across Operating Units from a single Applications responsibility. Hence you can isolate your transaction data by Operating unit for security and local level compliance while still enabling shared Service centre processing. Data security is maintained using the Multiple Organizations Security Profile, defined in Oracle HRMS, which specifies a list of operating units and determines the data access privileges for a user.
Impact of Upgrade
R12 Upgrade does not automatically create security profiles, thus is important if any one want to use Multiple Organizations Access Control, the first things is to define security profiles, then link them to respective responsibilities or users.
Reference: Details can be found more on R12 RCD documents, from Oracle site.
R12 : Suppliers & Trading Community Architecture:
In earlier post, we have seen supplier has been moved into TCA model. Comparing to 11i version, three new AP tables containing supplier unique data been introduced. They have the links to TCA tables:- AP_SUPPLIERS
- AP_SUPPLIER_SITES_ALL
- AP_SUPPLIER_CONTACTS
Here is data model .This will really helps you to understand while designing integration with EBS R12.
Release 12: Legal Entity uptake
We are well aware of some of Oracle E-Business Suite R12 Architectural changes in the Financials section like:
- Legal Entity
- Ledger Sets
- Accounting Engine (SLA)
- Transaction Based Taxes(E-Tax)
- Inter-company Accounting (AGIS)
- Multi-Organization Access Control (MOAC)
Financial books defined as “A Legal Entity is an entity identified through the registration with the legal authority.”
That’s means,In this compliance world and in Oracle system it corresponds closely and defined as the system “Legal Entity” corresponds with an independently identifiable “legal person” a public company, a private business or limited partnership, a trust, a not-for-profit, a government or a non-government organization (NGO) - that can operate as if it were a real person in conducting business transactions.
What is meant for with LE?
- Can get the right to:
- Own property weather its is assets or inventory or receivable
- Trade (borrow, sell, buy, incur expenses, employ)
- And the responsibility to:
- Repay debt (liabilities, equity)
- Pay Taxes
- Account for themselves (legal reports, audits)
Release 11i GRE/LEs will be upgraded as Release 12 Legal Entities.
Release 11i Operating Units and Inventory orgs will be upgraded as Establishments.
One Legal Entity can have several establishments.
- In Release 12 there is no specific link between Operating Units and Legal Entities where as in R11 it was.
- The Legal Entity is linked to a Ledger and the Operating unit is also linked to a Ledger.
- Every Release 12 transaction must be associated with both an Operating Unit and a Legal Entity.
- The Legal Entity is also required for e-Business Tax to establish which taxes will be applicable to the transaction.
Legal Entity architecture, which is new in this release, provides users with the ability to model an enterprise’s legal organizational structure and define rules and attributes specific to legal entities.
Bank Account whether its is remittance bank or internal bank is now owned by the Legal Entity instead of Operating Unit, and can be used by any of the Operating Units sharing the same Ledger as that Legal Entity.
As marked (dotted red line) in above figure the relationship between legal Entity and Operating Unit is no more active. This concept allows Operating Units to be governed by more than one jurisdiction, but the accounting is still performed in a single ledger.
Multiple Legal Entities can be associated with a single Ledger, allowing the LEs to share the same ledger and chart of accounts, calendar and currency. Each LE points to one Ledger.
Multiple Operating Units can also be associated with a single Ledger. Each OU points to only on Ledger.
Take a note; in R12 EBS multiple legal entities can be associated with a single Ledger, allowing the LEs to share the same ledger and chart of accounts, calendar and currency. Each LE points to one Ledger. Multiple Operating Units can also be associated with a single Ledger. Each OU points to only on Ledger.
Where it affects:
“Most of the Financial Application Products”
Cash Management (Bank)
As discussed in earlier, in Release 12 Bank Accounts are owned by Legal Entities and can be accessed by multiple Operating Units.
As we know in 11i the Bank Accounts were Operating Unit Specific.
For all Internal Banks should be assigned to a Legal Entity.
Receivables:
Now all REC activity must have a legal owner, so Legal Entity is stamped on every transaction. Receivables activity such as transaction whether credit memo or debit memo or invoice must have stamps on it and receipt header with the Legal Entity information.
Because there can be multiple legal entities using the same ledger, it may be necessary for the user to assign the LE. Each transaction can only belong to one Legal Entity, so when multiple legal entities exist, either the system or the user will assign the LE.
- Transaction
- Receipts
Let’s look at how defaulting occurs for the Receipt Header.
As we know , internal Bank Accounts is not owned by legal entities instead of operating units, so LE defaults from internal (remittance) bank account.
The Receipt Method in Receivables has the bank account assignment, which determines what bank account gets assigned to the receipt.
Take a note in version 11 the receipt Method was called the Payment Method. Now in Release 12 this featured with same name “Payment Method” now used by new application called Oracle Payments. Therefore in AR, you will now see a Receipt Method, which is part of receipt setup; and Payment Method, which is part of Payments setup. Once the bank account is assigned to a receipt header, this information can be used to find the appropriate LE. Because the LE comes from only one source, the bank account, there is no special setup to be performed in Receivables. Defaulting of the single LE always occurs, so the user does not need to assign or update LE on receipts.
How LE affects receipts and there applications and refunds
We seen the receipts inherit the LE from the bank account weather its is manual, Automatic, Lockbox and Post Quick Cash Programs. There is no way that user can change the value.
Receipt application across Legal Entities is allowed if the receipt and transactions are in same OU and Sub Ledgers Accounting will performed by inter-company accounting for cross-LE receipt applications or cross-LE receipt clearing.
SLA will create inter-company accounting as long as LE is setup as one of the CCID (Account Code Combination) segment derivation sources in SLA.
Payable
Invoices and Payments indicate the operating unit and the legal entity owner of the transaction. The legal entity can be used as selection criteria when preparing pay runs.
Projects
As we know in 11i in EBS maintains the default legal context on the Operating Unit. There is not much impact in Projects model. Earlier in 11i we used to consider the Legal Entity of the Operating Unit as the Legal Entity of the Projects Transactions. Now the Legal Entity attached at the Default Legal Context of the Operating Unit is the Legal Entity of the Projects Transactions.
So the Legal Entity of the Projects expenditure transactions will be the Legal Entity attached at the Default Legal Context of the Expenditure Operating Unit and the Legal Entity of the Project will be the Legal Entity attached at the Default Legal Context of the Project owning operating unit.
LE and TCA
Legal Entity is still dependent on TCA. A party (supplier, customer, bank, student etc) is an entity that can enter into business relationships. As we know the Oracle TCA’s model supports four types of parties: organization, person, group, and party relationship. Under the TCA model, Parties (including Legal Entities) exist just once in our E-business Suite system for single maintenance and consistency. Legal Entities will be stored in TCA as Parties of party type ‘ORGANIZATION’. A Legal Profile, containing specific Legal Entity attributes, will be associated to the TCA Party. In addition, other TCA components will be used for Addresses, Contacts, Party Information, etc.
Where to do the setup
There should be no confusion.
May be , some may think if this is just extension of GRE/LE from old version , then Why this required to do set up from both ASM and HR in R12?
In R12 ,it is separate the legal entity from the GRE which is a HR organization. We did not link the 2 entities together as they serve 2 different purposes altogether.
The HR model does not look at the new Legal Entity model. It continues to use the GRE/LE as a legal entity. So the HR requirement can be achieved using the HR organization of type GRE/LE.
Therefore, Legal Entities do have to be set up in both ASM and HR in R12.
Hope this sound interesting for new change in Financial Architecture.
More details about LE:
- How do I define my Legal Entities?
In the real world a Legal Entity (LE) can enter into contracts, own cash (bank accounts), employ people, pay taxes, be sued and similar. In Oracle Financials Release 12, a whole new product; Legal Entity Configurator, was created to manage them. We allow you to define your real world Legal Entities and then map them to the E-Business Suite objects and structures. Transactions are stamped with an owning (first party) Legal Entity and that will be used to drive tax, accounting, intercompany and Legal Reporting.
So let’s look at the relationships LE have to other E-Business suite objects.
1- Accounting StructuresIn the General Ledger Set Up a Legal Entity can be mapped to
- A Single Ledger
- One or more Balancing Segment Values (aka Company Code) within a ledger.
There is no explicit mapping of Legal Entity to an OU, the relationship is derived from the ledger assigned to the OU and the Legal Entity mappings to ledgers as detailed above.
So how might you set up your LE in relation to your other set up in financials? There are two implementation models
1: Many
- LE are mapped to the Balancing Segment Value (BSV, aka Company code) within a Ledger, so multiple LE are accounted for in a ledger.
- An OU will have one Ledger assigned so transactions for many LE are processed and accounted in a single OU
- A single LE is mapped to a Ledger
- An OU will have one Ledger assigned
- Therefore an OU only has one LE (that means it is easy to derive the LE given the OU)
That depends where the LE are registered.
The 1: M model is recommended and preferred in the US, the 1:1:1 model is recommended for most non US regions
Multi-Org Access Controls
Multi-Org Access Control feature allows you to enter process data and generate reports from a single responsibility.
For More details:
- MOAC : From Multi-Org….To Multi-Access
Data security is maintained using security profiles that determine the data access privileges associated to responsibilities granted to a user.
Because of this you can perform multiple tasks across operating units without changing responsibilities, the simple case can be best described as diagram in the left, where 3 user from three difference OU’s required three separate responsibility to perform the task.
MOAC Benefits..
- Multi-Org Access Control feature allows you to enter, process data and generate reports from a single responsibility
- This is achieved by providing the Operating Unit field on the forms/pages and while running the concurrent processes
- To Set this feature you need to define the security profile containing operating units and set it at MO: Security Profile
- You can default the Operating Unit on forms/pages by setting the MO: Default Operating Unit profile
- As discussed above, security Profiles for data security
- MO: Security Profile
- List of operating units for a responsibility
- OU field on UI
- all transactions
- setup data specific to OU, like transaction type
- Enhanced Multi-Org Reporting and Processing
- Ledger/Ledger Set parameter on accounting reports and processes
- OU parameter on other standard reports and processes
- For example: submit the Payables Open Interface Import w/OU param null to import all records across all OUs
Using Oracle HRMS, you can define your security profile using two forms:
- The Security Profile form
- The Global Security Profile form that is shown here.
The Security Profile Form allows you to select operating units from only one Business Group. The Global Security profile Form allows you to select operating units from multiple Business Groups.
The decision on which form to use is really up to you and depends on your HR implementation and how you want to partition data. All you need to do is enter a name, and select the Security Type called “Secure organizations by organization hierarchy and/or organization list”. This allows you to assign multiple OUs. When assigning operating units, first select classification Operating Unit, and then select the organization or Operating Unit name. You can assign as many operating units as you want.
AP-AR netting
This is used to offset Payable & Receivables and other functionality like trading Partner Approval.
Read for More:
R12 : Setting up for AP/AR Netting:
Oracle Purchasing- You enter purchasing documents by operating unit. These include standard and blanket agreement purchase orders, requisitions, RFQ’s and quotes. You assign a PO shipment to an inventory organization, any inventory organization in the same set of books as the PO’s operating unit.
- You enter receipts by inventory organization.
- You setup one default liability account by operating unit.
- You enter invoices in one operating unit at a time.
- You run payment runs in one operating unit at a time.
- You can consolidate supplier invoices on one payment only within an operating unit.
- You setup bank accounts and associated cash accounts within an operating unit.
- You select invoices for payment on one payment run for one bank account based on pay group, priority, amount, currency, or payment method (i.e. check, electronic) within an operating unit.
- You setup suppliers for the entire database instance but addresses for each operating unit.
- You merge suppliers and addresses within an operating unit.
- You report supplier/customer netting within an operating unit.
As we know the efficient Procure to pay process have these sub processes;
- Contract Management
- Purchase Requisitions
- Purchase Orders
- Accounts Payable - Managing invoice
- Supplier Payment
In real business world, many times when system is running external/internal auditor are more interested in scrutiny of:
- Goods received / invoices received
- Inaccurate or duplicate vendor & material master records
- Discrepancies in payment terms
- Delays / long processing times
- Detect duplicate vendor
- Unusually large or small payments
- Unauthorized changes made to invoices
- Detect Duplicate invoice
- Detect Duplicate payment
- Approval status
A ‘P2P’ query that made Auditors happy
It was brought by ISD team, as part year end audit for a ERP system which went live 3 month back. It was a one of requirement to display data for a particular PO which covers data from there all 5 five phases, means a particular PO line consist of:
- Requisition Detail
- Purchase Order Details
- Receiving Details
- Invoicing Detail
- Payment Details
Here is query:
SELECT
A.ORG_ID “ORG ID”,
E.VENDOR_NAME “VENDOR NAME”,
UPPER(E.VENDOR_TYPE_LOOKUP_
F.VENDOR_SITE_CODE “VENDOR SITE”,
F.ADDRESS_LINE1 “ADDRESS”,
F.CITY “CITY”,
F.COUNTRY “COUNTRY”,
TO_CHAR(TRUNC(D.CREATION_DATE)
D.SEGMENT1 “PO NUMBER”,
D.TYPE_LOOKUP_CODE “PO TYPE”,
C.QUANTITY_ORDERED “QTY ORDERED”,
C.QUANTITY_CANCELLED “QTY CANCALLED”,
G.ITEM_DESCRIPTION “ITEM DESCRIPTION”,
G.UNIT_PRICE “UNIT PRICE”,
(NVL(C.QUANTITY_ORDERED,0)-
(SELECT
DECODE(PH.APPROVED_FLAG, ‘Y’, ‘Approved’)
FROM PO.PO_HEADERS_ALL PH
WHERE PH.PO_HEADER_ID = D.PO_HEADER_ID) “PO STATUS”,
A.INVOICE_TYPE_LOOKUP_CODE “INVOICE TYPE”,
A.INVOICE_AMOUNT “INVOICE AMOUNT”,
TO_CHAR(TRUNC(A.INVOICE_DATE)) “INVOICE DATE”,
A.INVOICE_NUM “INVOICE NUMBER”,
(SELECT
DECODE(X.MATCH_STATUS_FLAG, ‘A’, ‘Approved’)
FROM AP.AP_INVOICE_DISTRIBUTIONS_
WHERE X.INVOICE_DISTRIBUTION_ID = B.INVOICE_DISTRIBUTION_ID)”
A.AMOUNT_PAID,
H.AMOUNT,
I.CHECK_NUMBER “CHEQUE NUMBER”,
TO_CHAR(TRUNC(I.CHECK_DATE)) “PAYMENT DATE”
FROM AP.AP_INVOICES_ALL A,
AP.AP_INVOICE_DISTRIBUTIONS_
PO.PO_DISTRIBUTIONS_ALL C,
PO.PO_HEADERS_ALL D,
PO.PO_VENDORS E,
PO.PO_VENDOR_SITES_ALL F,
PO.PO_LINES_ALL G,
AP.AP_INVOICE_PAYMENTS_ALL H,
AP.AP_CHECKS_ALL I
WHERE A.INVOICE_ID = B.INVOICE_ID
AND B.PO_DISTRIBUTION_ID = C. PO_DISTRIBUTION_ID (+)
AND C.PO_HEADER_ID = D.PO_HEADER_ID (+)
AND E.VENDOR_ID (+) = D.VENDOR_ID
AND F.VENDOR_SITE_ID (+) = D.VENDOR_SITE_ID
AND D.PO_HEADER_ID = G.PO_HEADER_ID
AND C.PO_LINE_ID = G.PO_LINE_ID
AND A.INVOICE_ID = H.INVOICE_ID
AND H.CHECK_ID = I.CHECK_ID
AND F.VENDOR_SITE_ID = I.VENDOR_SITE_ID
AND C.PO_HEADER_ID IS NOT NULL
AND A.PAYMENT_STATUS_FLAG = ‘Y’
AND D.TYPE_LOOKUP_CODE != ‘BLANKET’;
The important section which covers in the query output is as:
1. Information for Supplier
2.Purchase Order details
3. Receiving Items Details
4. Invoice Details
5. Payment Details
R12 : Setting up for AP/AR Netting
AP/AR Netting automatically compares Payables to Receivables and creates the appropriate transaction in each system to net supplier invoices and customer invoices. With this functionality, A receivables user can- View netted receipt details directly from the receipt
- Create Netting Agreements and Netting Batches
You can access the process via:
- Navigation: Receipts > Netting > Netting Batch
- Navigation: Receipts > Netting > Netting Agreement
- Receipts > Receipts > Action Menu : AP/AR Netting
After Querying a netted receipt, the user can see more details about the batch by selecting AP/AR Netting from the Action menu. This launches the AP/AR Netting batch window. Netted Receipts are created automatically by the AP/AR Netting process and cannot be updated by the user from the Receipts Workbench
1. Define netting control account
(N)Setup>Financials>Flex field>key>values
2. Create bank
(N)Setup>payment>Bank and Bank Branches
You should note, Payment document is not required for netting bank account.
3. Go to receivables responsibility, receipt class definition form
(N)Setup>Receipts>Receipt class
Query the ‘AP/AR Netting’ receipt class which is a seeded one.
4. Attach your bank account in this receipt class.
5. Go to system options, transaction and customer tabbed region, there enable ‘Allow payment of Unrelated Transactions’ check box
6. Create netting agreement
(N)Receipts>Netting>Netting Agreement
7. Enter an Invoice in Payables, validate and run create accounting.
8. Enter a transaction in receivables.
9. Create Netting Batch
(N)Receipts >Netting >Netting Batch
10. Query your netting batch and see the status as Complete. also click on view report icon on right side. Click on run push button, you can see the final netting report.
11. Go to view>request>find
You can see 3 concurrent request programs
- Create Netting batch
- Settle netting batch
- Netting Data Extract
13. Now Go to Tools >view Accounting, you can see Netting control account (defined in first step a) debited and receivable account credited.
14. Now go to payables and query your invoice number and click the tab view payments. You can see the payment details and copy the document number.
15. Query your copied payment document number. What you can see the payment type as Netting.
16. Click actions button and enable the check box create accounting.
17. Go to tools>view accounting .You can see the accounting entry
Credit Card functionality within i-expense
Is your company is in process of enabling credit card functionality within Oracle Internet Expense?If answer is yes…
It means, once the credit card functionality is enabled in i-Expense, then its allows users to select open credit card transactions and include them in their expense report. The only pre-requisite for your organization would make an agreement with the credit card company to import an electronic file of credit card transactions that summarizes employees’ expenses for a period. Once the electronic file is imported and validated, employees would be able to see their credit card transactions and then select them for expensing on their expense report.
AMEX (American Express) Corporate card is most popular one normally companies providing there employee who have requirement to frequent travel or other similar requirement.
American Express Corporate Service does provide these services to there corporate customer:
- KR/KP-1205 Card member Listing Report
- KR-1600 Corporate Express Cash Billed Data
- KR/KP-1300 Monthly (Cyclic) Aging Analysis
- KR/KP-1301 Interim Aging Analysis
- KR/KP-1100 Industry Summary
- KR-1022 Monthly (Cyclic) Billed Reconciliation Data
- KR-1025 Daily Unbilled Reconciliation Data
- KR-1072 Line Item Detail
- KR-1075 Line Item Detail-Daily Unbilled
Item #8, 9 are treated as level 3 data, and important to know these kinds of data is not currently supported in Oracle.
Level 3 transaction data refers to the detailed transactions that constitute a single transaction line on the credit card statement. For example, a single hotel transaction can contain the detailed transactions of room charge, meals, and room service.
Not only Amexm there are few more for which Oracle does support credit card transactions data file formats in EBS:
- American Express KR-1025 format (file name is Card Daily Data Feed)
- Diner’s Club Standard Data File format (file name is TRANS.DAT)
- Master Card Common Data Format, version 2.0
- Master Card Common Data Format, version 3.0
- Visa VCF4 format
- US Bank Visa format
- Bank of America Visa TS2 format
- Import Credit Card Transactions: As discussed above, if employees in your company use corporate credit cards, you can set up Internet Expenses to enable users to automatically import credit card charges from the card issuer into an expense report. Employees can also categorize each charge as either Business or Personal and, depending on your implementation, place items in dispute.
- Flexible Credit Card Payment and Reimbursement Setup: Internet Expenses supports several different scenarios for paying the credit card company and reimbursing employees for corporate credit card charges. You can set up your system to indicate how payment must be remitted to the card issuer. Your choices are:
- from your organization
- from the employee
- from both your organization and the employee
Three key CE tables now as:
- CE_BANK_ACCOUNTS for bank accounts
- CE_BANK_ACCT_USES_ALL for account uses by Operating Units & Legal Entities
- CE_GL_ACCOUNTS_CCID for bank account use accounting data
R12 : Suppliers & Trading Community Architecture
Earlier we have seen supplier has been moved into TCA model. Comparing to 11i version, three new AP tables containing supplier unique data been introduced. They have the links to TCA tables:- AP_SUPPLIERS
- AP_SUPPLIER_SITES_ALL
- AP_SUPPLIER_CONTACTS
Here is data model .This will really helps to understand while designing integration with EBS R12.
Hey did you notice there is one thing that keep changing since last 2 releases …the bank. We have seen there was once from pre 10.x to 11i when supplier bank separated from suppliers data and now its again in R12 when it become part of TCA.This time , because of changing business need and high demand of global partners working model. Not only your companies is operating globally, your partner too operating global, and then why not use them. In typical business cost model, if corporate office is using Citibank for payroll for USA operation then why not Citibank Singapore branch is used for payroll for Singapore if they are operating there. Sound bit low…why..
As we aware the key message of R12 while release was.
- Think Globally - using business intelligence and analysis tools
- Work Globally - using the global capabilities of the applications
- Manage Globally - using the latest system architecture and middleware
What is new in R12 for Bank
These changes make easier and more reliable by
- Single access point
- Single Legal Entity ownership
- Usage rights granted to one or more Organizations
- Reconciliation option defined at Bank Account level
- More flexibility and control
Release 10.6 character/10.7 NCA to 11i
How 10.x supplier banks are mapped to 11i
- Bank Name
po_vendor_sites.bank_number => ap_bank_branches.bank_name
po_vendor_sites.bank_number => ap_bank_branches.bank_number - Bank Number
po_vendor_sites.bank_num => ap_bank_branches.bank_num
po_vendor_sites.bank_num => ap_bank_branches.bank_branch_name - Bank Account Name
po_vendor_sites_all.bank_account_name => ap_bank_accounts_all.bank_ account_name - Bank Account Number
po_vendor_sites_all.bank_account_num => ap_bank_accounts_all.bank_ account_num
These are tables which hold the bank details irrespective of supplier or internal banks.
- ap_bank_branches
- ap_bank_accounts_all
If we compare the bank with 11i vs R12, we can notice the bank was utilized into three different places , finance ,payroll and treasury, which requires altogether a different setup. It was one of the big issues with integration aspect, as significant problem was recognized once the Expense management and payroll uses same bank for the respective person.
There was a common question/confusion between the Integration Existence between Bank Data in Accounts Payable and Bank Data In Payroll ?
As discussed above , you know most of release of 11i family of oracle Application does not have integration between HR and AP for bank account data.
We have notice in 11i there was functionality in which Payables in which we will create an employee type supplier from HR data and it will contain name and address info but not bank information. The reason for this is that HR/Payroll does not store the bank information in a standard way that makes the integration possible.
So now r12 this was well taken care and integration is built. There are plans under way for all bank account data models in the various products to be consolidated in the new TCA architecture. The Cash Management team is working on this project. Payables and HR/Payroll are working so that the eventual idea will be that you can set up bank accounts in one place and then indicate the usage (pay, expense reimbursement, etc).
For understanding it is comparison between 11i and release 12, where TCA community take cares of every things.
Release 12 , what is new than
Bank Accounts will be stored in a new table called CE_BANK_ACCOUNTS and will be located at a Bank Branch.
The new table which hold the bank information are as:
- CE_BANK_ACCOUNT:stores bank account attributes
- CE_BANK_ACCT_USES_ALL : This stores the bank account use attributes specific to Operating Unit (AR, AP) and Legal Entity (Treasury).
- CE_GL_ACCOUNTS_CCID :The accounting data pertaining to the bank account use will be stored in the table.
Missing link between Supplier And Supplier Banks?
You should know
- The link between PO_VENDORS and HZ_PARTIES is PO_VENDORS.party_id.
- The link between PO_VENDOR_SITES_ALL and HZ_PARTY_SITES is PO_VENDOR_SITES_ALL.party_
site_id . - When a Supplier is created Record will be Inserted in HZ_PARTIES. When the Supplier Site is created Record will be Inserted in HZ_PARTY_SITES. When Address is created it will be stored in HZ_LOCATIONS
- When a bank Is Created, the banking information will be stored in
- When the Bank is assigned to Vendors then it will be updated in HZ_CODE_ASSIGNMENTS.
Internal Bank Accounts & Supplier and Customer Bank Accounts in R12
Internal Bank Accounts
In Release 12, each internal bank account is assigned to a Legal Entity. Any or all operating units associated with that legal entity are permitted to use that bank account.
Supplier and Customer Bank Accounts
In Release 12 provides a centralized repository for suppliers’ and customers’ bank account and credit card information. All data is stored in one, secure place, providing shared service centers and collection department’s consistent information that they need.
In Oracle supplier can be entered from three different places. These are the Setup required to perform for a suppliers.
- Supplier Accounts
- Taxes
- Payments
- Term Date Basis
- Due Date Basis
- Invoice Currency
- Holds
- Enter Suppliers
- Enter employees as Suppliers
- Merge duplicate Suppliers
Other Details
- Classification Information (Significant for type and employee name)
- Parent subsidiary relationship
- Supplier bank information
- Appropriate GL accounts information
- Record tax information
- Hold conditions to supplier site (rather than on individual invoices)
- Tax payer ID
- VAT registration number
- Inactive date (to prevent invoice/PO entry after a certain date)
- PO_VENDORS : this hold a suppliers information
·
- SEGMENT1 – SYSTEM GENERATED OR MANUALLY ENTERED NUMBER FOR SUPPLIER (PO_UNIQUE_IDENTIFIER_CONTROL)
- VENDOR_ID – SYSTEM GENERATED UNIQUE NUMBER
- CREDIT STATUS –GOOD/POOR
- ORGANIZATION_TYPE_LOOKUP_CODE
- VENDOR_TYPE_LOOKUP_CODE – VENDOR/EMPLOYEE (EMPLOYEE_ID)
- ONE_TIME_FLAG
- PO_VENDOR_SITES_ALL : This hold corresponding site information Contains Details of the site like Full Address/Work of site
and its link with vendor_id.Important columns includes: - PURCHASING_SITE_FLAG, VENDOR_SITE_CODE, RFQ_ONLY_SITE_FLAG, PAY_SITE_FLAG,HOLD_ALL_
PAYMENTS_FLAG, HOLD_FUTURE_PAYMENTS_FLAG, HOLD_UNMATCHED_INVOICES_FLAG - PO_VENDOR_CONTACTS : This hold supplier contact information for respective sites.
These are typically connected as:
Take a note Segment1 is holding suppliers Number.
Quick query for new babies
select * from po_vendors
where segment1 = ‘1001‘;
select *
from po_vendor_sites pvs,
po_vendors pov
where pov.segment1 = ‘1001′
and pov.vendor_id = pvs.vendor_id;
select *
from po_vendor_contacts pvc,
po_vendor_sites pvs,
po_vendors pov
where pov.segment1 = ‘1001′
and pov.vendor_id = pvs.vendor_id
and pvs.VENDOR_SITE_ID = pvc.vendor_site_id;
Supplier Interface
Yes, that was one of the enhancement in oracle 11.5.10 release. Prior to that version, there was no interface or Public exist for supplliers, thus it was a tricky to handle supplier. As we have discussed above of AP availability .
If you are having 11.5.10+ version, and if you have requirement to create supplier from your legacy data than use Supplier Interface, life will be easier. What do you say.
How we start
This consists in 2 steps process:
Step 1: Populate the new interface tables with data. This can be done via SQL*Loader or typically used to load data in a table.
- AP_SUPPLIERS_INT
- AP_SUPPLIER_SITES_INT
- AP_SUP_SITE_CONTACT_INT
Alternatively, run the individual import programs to load one table at a time
- Supplier Open Interface Import (APXSUIMP)
- Supplier Sites Open Interface Import (APXSSIMP)
- Supplier Site Contacts Open Interface Import (APXSCIMP)
- When you load the data it should be ‘NEW’ initially. After the Supplier Sites Open Interface is run the status gets changed to PROCESSED’/'REJECTED’.
A Note with R12 for Suppliers
As we know in R12 Supplier is part of TCA , thus the link between PO_VENDORS and HZ_PARTIES is PO_VENDORS.party_id. The link between
PO_VENDOR_SITES_ALL and HZ_PARTY_SITES is PO_VENDOR_SITES_ALL.party_
When a Supplier is created Record will be Inserted in HZ_PARTIES. When the Supplier Site is created Record will be Inserted in HZ_PARTY_SITES. When Address is created it will be stored in HZ_LOCATIONS.
Do you know, there are many default value which can be controlled at set up level. Here is the explanation based out of close microscopic view of default values of Account Payable.
Do we have any General Setup Hierarchy for Default values???
Yes , we have a General Setup Hierarchy for Default values, which can be typically described as:
Quick Tour for Account Payable
AP takes care of all payments in Oracle Applications. This module has active interaction with Purchasing and General Ledger modules.The different functionality of the Payables module are:
- Set up Supplier.
- Enter, review and Approve invoices.
- Pay invoices and reconcile payments to bank a/c.
- Enter and apply pre-payments.
- Create journal entries for posting to GL.
1.Enter Suppliers
This step consist of set up as well as maintenance of existing one.During the setup, we need to do setup for
- Supplier Accounts
- Taxes
- Payments
- Term Date Basis
- Due Date Basis
- Invoice Currency
- Holds
- Enter employees as Suppliers : this is for managing and controlling Expense report
- Merge duplicate Suppliers
This consist Setup for;
- Distribution Set
- Tax
- Setup tolerance, matching options
This required set up for rule, so that approval and validation process can validate based on some parameter.
4.Payments
This requires set up for payment related dependency which include ;
- Format
- Bank
- Bank account
- Build program
- Payment Methods
- Manual
- Quick Check
- Automatic Check
5. Create Journal entries
Typical flow for creating Journal entries is summarized as:
And here is final note of accounting Entries of AP :
- During Invoicing
- Expenses A/C Dr to vendor liability
- During Payment
- Vendor liability A/C Dr to Cash/Bank A/C
- You must have a vendor to do anything
- Every Invoice must be fully Charged out before paid or posting to GL.
- All Payments must have an invoice
- Every Invoice must run through approval process.
- “Contra Charging” to “R12 AP/AR Netting”:
- Customer ABC raise an order to your company and your have made shipment of goods they have requested and you have raised an invoice of X amount, that you are expecting the money should be paid by customer.
- Same time , you have some taken some services to the same customer which is a vendor in your Payable, and now you have liability to pay the amount Y, you received against PO.
These kinds of business scenario always exist, specially if you are dealing with client whose line of business is either Airlines or Cargo or Healthcare domain. Such events are always there, therefore designing, configuring and identifying such need is foremost important step while implementing ERP.
What we seen after 11.5.9 , where similar kind of functionality Oracle has offered in term of “Contra Charging” which initially limited in European Localization and on and after 11.5.10, the same functionality have been standardize and incorporated in the product.
Contra Charging
Contra Charging allows you to select customer and suppliers through the screen and net their balances. This will submit two requests used to populate the Receivables and Payables Transaction Interface. This credit memos can then be imported through the standard invoice import in AR and AP.The base Functionality that currently exist in 11.5.10 are:
- Use the Contra Charging window to physically match the customer to the supplier and allocate an amount for contra charging
- Automatically populate the AR and AP Invoice Interface tables to create credit memos for the source Contra
- Import the invoices
- in AR with the Submit Invoice Import window, using the source Contra
- in AP with the Auto Invoice Import Program on the Run Auto Invoice window, using the source Contra
- Use the standard functionality to post the imported credit memos to Oracle General Ledger
- Use the Contra Netting Report
- to report on the netted contra charging transactions
- to check that the contra charging has been carried out successfully in Oracle Receivables and Oracle Payables
Follow the below mentioned steps and you should be able to use the contra charging functionality.
1.Define document sequences, assign the document sequence to Contra document category.
- You can assign a unique document sequence to each invoice and payment document in your Payables system so you have a unique identifier for each document.
- A document category is a set of documents (invoices or payments) that share similar characteristics. You can assign a single document sequence to one or more document categories.
- Use assignment window in System administrator responsibility to attach the document category with the document sequence created for contra charging invoices.
A lookup is any predefined value that was not defined in a setup window.
3. Setup user profile for AP Responsibility, including the following:
- Tax: Allow Override of Tax Code (Yes)
- Tax: Allow Override of Customer Exemption (Yes)
- Sequential Numbering (Partially Used)
- JG: Contra - Include Future Dated Payment in Supplier Balance (Yes)
5. Define Payables Lookup for ‘Contra’.
A lookup is any predefined value that was not defined in a setup window. Use the Oracle Payables Lookups window to review and maintain sets of values, or lookups, that you use in Payables. Use the Oracle Payables Lookups window to create a new Payables lookup for contra charging.
This New Contra Lookup Code will be used as a source when the Contra Charging Credit memos are created.
6. Assign a ‘Contra Charging’ Menu to ‘AP_NAVIGATE_GUI12′ main menu,which tied to AP Responsibility.
To attach the Contra Charging Form to the Existing Payables Responsibility, attach JG_CONTRA_CHARGE_GUI Sub Menu to AP_NAVIGATE_GUI12 Main Menu.
Navigation Path: System Administrator responsibility: Application: Menu Form
7. Having created the new form ‘Contra Charging’, enter Contra Charging Transactions, then ‘Submit Contra transaction.
What’s new in Release 12
When a trading partner is both a customer and a supplier, an agreement may be made to offset open receivables’ against open payables’ items. Netting Agreements add trading partner terms as well as deploying company controls. A selection program automatically pulls information from Oracle Receivables and Oracle Payables taking into consideration discounts, late fees, and withholding taxes prior to determining the final netting amount. A review process and trading partner approval afford further verification to support the netting event.
The matching of open receivables and open payables is automated. You are now able to determine whether you or your trading partner has a greater balance outstanding and update your books, collect payments or make payments accordingly.
Benefits:
AP/AR Netting provides for the ability to “collect” on your receivables balances with the amount owed for your purchases by offsetting one against the other.This will Reduce bank Charges , Fewer Transactions to Process and thus significant Cash flow Improvement.
From 11i to R12
R12 Netting solution replaces 3 solutions(FV,JE,IGI) in 11i.
In R12 the Contra Charge functionality has been optimized and therefore changed into the AP/AR Netting functionality. In the Payables module as well as the Receivables module, there is a Netting submenu.
- Payables: Payments -> Entry -> Netting
- Receivables: Receipts -> Netting
- Oracle Financials Common Country Features user guide.
General Ledger:
New Features like :
Eliminate Accounting Errors by providing Alternate Accounts Replace Disabled Accounts, Introduction for Definition Access Sets, Introducing Ledger Sets in place of SOB
Read for More:
- R12 - Oracle General Ledger - New and enhanced features:
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,
- 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
Here are the some more details about subledgers
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.
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.
Here’s an example. Assume we have a ledger and the ledger currency is USD.
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.
Creating foreign currency recurring journals
In Release 11i, you could define recurring journals using the functional currency or STAT currency.
Now in Release 12, you can create recurring journals using foreign currencies. This is particularly useful if you need to create foreign currency journals that are recurring in nature. For example, assume a subsidiary that uses a different currency from its parent borrows money from the parent. The subsidiary can now generate a recurring entry to record monthly interest payable to the parent company in the parent’s currency.
Data Access to Multiple Legal Entities and Ledgers
You no longer have to constantly switch responsibilities in order to access the data in a different ledger. You can access multiple ledgers from a single responsibility as long as all ledgers share the same chart of accounts and calendar.
Simultaneous Opening and Closing of Periods for Multiple Ledgers
You no longer have to open and close periods for each ledger separately. You can now open and close periods across multiple ledgers simultaneously by submitting Open and Close Periods programs from the Submit Request form.
Simultaneous Currency Translation of Multiple Ledgers
You can run the Translation program for multiple ledgers simultaneously, if you are managing multiple ledgers.
Financial Reporting for Multiple Ledgers
Now with this feature you can 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 of your ledgers at the same time.
Cross-Ledger and Foreign Currency Allocations
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
Streamlined Automatic Posting
You can now share AutoPost Criteria sets across multiple ledgers that share the same chart of accounts and calendar and use the AutoPost Criteria sets to post journals across multiple ledgers simultaneously.
Streamlined AutoReversal Criteria Setup Integrated Web-based
AutoReversal Criteria Sets can also be shared across ledgers to reverse journals across multiple ledgers. This is enhanced by integrated Web-based Spreadsheet Interface.
Journal Copy
Now we can now copy entire journal batches. You can copy journal batches with any status. The system will create a new journal batch containing the same journal entries.You may also change the batch name, period, and/or effective date while copying the journal batch. After copying the journal batch, you may modify the unposted journals in the same manner as any manually created journals.
Streamlined 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.
The enhancement in R12 allows you to define mappings between charts of accounts instead of between sets of books, so that they can be shared across multiple Consolidation Definitions.
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.
You can also secure access to chart of accounts mappings using definition access set security. This allows you to secure which users can view, modify, and/or use chart of account mappings in consolidation definitions.
Replacement for Disabled Accounts
Normally 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.
Data Access Security for Legal Entities and Ledgers
In R12, 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.
Management Reporting and Security
This can be best understood as:You can designate any segment (except the natural account segment) of your chart of accounts to be your management segment and use Oracle GL security model to secure the management segment for reporting and entry of management adjustments.
Prevent Reversal of Journals with Frozen Sources
You can no longer reverse journals from frozen sources defined in the journal sources form.
If the journal is created from a frozen source, the journal cannot be modified even if the source is subsequently unfrozen in the future.
This provides streamlined data reconciliation with subsystems. Not being able to reverse journals that originated in subledgers will ensure that the account balances will always tie out with General Ledger. If you need to reverse a subledger journal, then you should do so in Subledger Accounting or the subledger application.
Prevent Reversal of Unposted Journals
You also can no longer reverse unposted journals. This ensures data integrity and better auditability. In the past when we allowed you to reverse unposted journals, there was a risk that the original journal could be deleted so you could end up reversing something that didn’t exist. Now, all reversals can be tied back to the original posted journal.
Integrated Web-based Spreadsheet Interface
Through the integration with Web ADI, users can now leverage spreadsheet functionality in Oracle General Ledger via a web-based interface. The spreadsheet interface can be conveniently launched from a GL responsibility.
Using the Journal Wizard, we can leverage spreadsheet functionality to create actual, budget, or encumbrance journals. You can take advantage of spreadsheet data entry shortcuts such as copying and pasting or dragging and dropping ranges of cells, or even using formulas to calculate journal line amounts. You can then upload your journals to Oracle General Ledger. Before uploading, you can save and distribute your journal worksheets for approval.
We can also import data from text files into spreadsheets, where it can be further modified before uploading to Oracle. This functionality is useful when migrating data from legacy systems, or from any source that can produce delimited files.
Using the Budget Wizard, you can download budget amounts to a spreadsheet, modify the amounts, and then upload them back. You can also choose to download the actual amounts to compare it with the budget amount. Budget Wizard also allows you to plot graphs and do a graphical comparison on the amounts. Budget Wizard also provides budget notes. You can add descriptions to accounts and amounts in your budget and explain your budget within the budget worksheet, avoiding the clutter of external documentation.
Control Accounts
You are able to control data entry to an account by ensuring it only contains data from a specified journal source and to prevent users from entering data for the account either in other journal sources or manually within general ledger.
Security for Definitions
You can secure your setup and definitions by granting specific privileges to users to view, modify, and/or execute a definition. This enables you to control which of your users can view a definition, but not modify or execute it, or execute a definition without modifying it, or vice versa.
Following is a list of definitions that have this security available for:
- MassAllocation and MassBudget Formulas
- FSG Reports and Components
- Accounting Calendars
- Transaction Calendars
- AutoPost Criteria Sets
- AuoReversal Criteria Sets
- Budget Organizations
- Chart of Accounts Mappings
- Consolidation Definitions
- Consolidation Sets
- Elimination Sets
- Ledger Sets
- Recurring Journals and Budget Formulas
- Rate Types
- Revaluations
Maintaining two sequnces have been introduced, accounting and reporting sequencing.
For more details on Journal Line Reconciliation:
Journal Line Reconciliation enables you to reconcile journal lines that should net to zero, such as suspense accounts, or payroll and tax payable accounts for countries, such as Norway, Germany, or France.
In R12, we’ve made many improvements to intercompany accounting. R11i’s Global Intercompany System (GIS) has been replaced with an exciting new product called Advanced Global Intercompany System (AGIS). We also extended intercompany balancing support to include encumbrance journals.
Enhanced Intercompany
Some of the GL Standard Reports converted into XML Publisher
Oracle General Ledger’s Account Analysis, General Journals and Trial Balance standard reports are now integrated with XML Publisher.
- R12 : Sequence in GL made Legal Compliance Easy:
Accounting Sequence
This is sequence used in GL journals when posted in GL ,Sequence subledger journals when completed in Subledger Accounting.
What we have seen in Release 11i, we had document sequencing that sequentially numbered documents upon creation. Accounting Sequencing will automatically assign a sequence number to GL journal entries that are posted in GL. There’s also an option to sequence subledger journals when they are completed in SLA Accounting.
Reporting Sequence
This sequence is used in GL Journals when you close a GL Period.Sequence sub ledger Journals when you complete the accounting in SLA .This is one of replacement of Accounting Engine (AX) legal sequencing and Italian Journal Book commonly known Libro Giornale.
These two Sequences can be assign mutually exclusive sequences based on:
- Ledgers or Reporting Currencies
- Journal sources
- Journal categories
- Balance types
a) Legal Compliance made easy: The one biggest advantage of it will now addresses business requirements in many countries, such as Europe & Asia. Therefore its allows fiscal authorities to verify the completeness of a company’s accounting records.
b)Flexibility get enhanced:With this it provides greater flexibility in choosing different journal sequencing options, as mention above, these can be based out of these different criteria, such as by ledgers, reporting currencies, journal sources, journal categories, and balance types.
c)No Localization Required: Somehow related to (a) discussed above, earlier it the local reporting need was catered by localization , which now is part of GL activity.
Where to Define the the sequence.
You can define the accounting sequence in the context of a ledger in Accounting Setup Manager.There is another way ie Accounting Sequencing menu function which we can create and manage our sequencing rules.
For Accounting Sequences which is internally a posting event, the GL journals are sequenced when they are posted in GL and Subledger journals are sequenced when completed in SLA. For Reporting Sequences (period close event), GL journals and subledger journals are sequenced when a GL period is closed.You can see both can be appear in the Journal screen as below.
Read for more details
- R12 - Oracle General Ledger - New and enhanced features
Rule based accounting engine, toolset & repository supporting ALL Oracle E-Business Suite modules.
Read for More details:
- R12 SLA: From Product Accounting to Subledger Accounting
So What is Subledger Accounting?
• SLA is an intermediate step between subledger products and the Oracle General Ledger
• Journal entries are created in Subledger Accounting and then transferred to Oracle General Ledger
• Each subledger transaction that requires accounting is represented by a complete and balanced subledger journal entry stored in a common data model
Is this Module or what?
It is good to know ,sub ledger Accounting is a Service, not an Application .
The high points of SLA would be:
- There are no SLA responsibilities
- Users do not login to SLA
- SLA is a service provided to Oracle Applications
- SLA forms and programs are embedded within standard Oracle Application responsibilities
- SLA provides the following services to Oracle Applications
- Generation and storage of detailed accounting entries
- Storage of subledger balances (e.g. third party control account balances)
- Subledger accounting entries
- Subledger reporting (e.g. Subledger journal reports, open account balances listing)
Most of modules which need accounting entry with finance uses service of SLA Modules.
This new Product has these many new functionality such as:
- Journal Entry Setup and sequencing
- Date Effective Application accounting Definitions
- Multiple Accounting Representation
- Multi-period Accounting
- Summarization Options
- Draft and online accounting
- Replacement for disabled accounts
- Process category Accounting
- Transaction account Builder
- Accrual Reversal Accounting
- Accounted and Gain/Loss Amount calculations
- Application Accounting Definition Loader
- Enhanced Reporting Currency Functionality
GL Flow with Subledger-Level Secondary Ledger
Lets take a case , with a scenario with basic Finance module, you can find how tightly accounting model is separated with transaction model in release 12.
This is the typical flow within one product with SLA can be best described as:
- R12 SLA: Analyzing Subledger Accounting
- All accounting performed before transfer to the GL.
- and this is achieved by user setup who can do by definable accounting rules.
The same idea has been incorporated in new sub ledger accounting model , indeed a was a real need because of some uneven functionality likes:
- Inconsistencies in Accounting Generation like Summary vs. Detail
- Direct to General Ledger vs. Open Interface
- Inconsistent Drilldown from General Ledger
- Also it has been seen inconsistent Mechanisms for controlling Accounting as certain options has been used in existing version:
- flex builder
- Account Generator
- Automatic Offsets
- A new transactional application that generates accounting impact
- Used to store detailed information not needed for a general ledger
- Sub ledgers post summarized activity to a general ledger periodically to maintain centralized account balances for the company
How Receivables Accounting happen in 11i
As we know the final accounting data not generated prior to transfer to GL as only distribution level information is passed to GL.
In 11i , we know three distinct distributions tables for invoices / Credit Memos / Debit Memos have to capture accounting class & amounts information but not debits & credits.
·
- Receipts & Adjustments
- Unapplied, applied
- Both debits & credits
- Misc. Cash Receipts
- Both debits & credits
- As we know “View Accounting” is a report against distributions to see the accounting information.
How Payables Accounting happen in 11i
We know accounting data generated and stored in “Accounting Events” tables prior to transfer to GL in Payable. Once Transaction get completed it was need to run the “Create Accounting” process which basically populate data into accounting events tables.Then the actual line information move takes place from accounting events table to General Ledger Tables.The existing 11i accounting Process is can be best understood by figure below.
Subledger to Ledger Reporting in 11i
It means complete, final accounting only available in the GL
- All debits and credits
- All journal entries
- All balances
How it is resolved in Release 12 Subledger Accounting
All sub ledger accounting data generated and stored in shared SLA tables prior to transfer to GL , and this is achieved by running “Create Accounting” to populate SLA tables(Very very similar to Payable events). Once this can be done , user can “View Accounting” only after “Create Accounting” is run and completed successfully.
Transferring Accounting information from AP/AR to GL in R12
The Create Accounting process has similar options, you can create accounting in Final or Draft mode and if Final mode is selected, the Transfer to GL parameter can be used to automatically transfer the accounting created by the corresponding run. When the Create Accounting process transfers the journal entries to GL it only transfers the accounting created by the process that calls it. If there is accounting created by the online option = Final or a previous Create Accounting program that was not transferred, that accounting will not be transferred. The Transfer Journal Entries to GL program needs to be ran separately to transfer any accounting created online or created by a previous Create Accounting process that did not transfer the entries.
Is/was link an issue in 11i?
Yes, From Distributions to SLA
- Create Accounting process
- Applies accounting rules
- Loads SLA tables, GL tables
Creates detailed data per accounting rules,stores in SLA “distribution links” table
SLA Distribution Links Table
- Must join through to get true Distribution ==> SLA journals matches
- Holds finest granularity of accounting data
- Multiple distributions may be aggregated into a few SLA journal lines
and Final picture looks like:
SLA Key attribute :Something called Event Model ? What is all about?
Event Model are basically definition of the sub ledger transaction types and there life cycle.
It has three levels
- Event Entity: Highest level, often 1 per sub ledger application
- Event Class: classifies transaction types for accounting rule purposes
- Event Type: for each transaction type, defines possible actions with accounting significance.
we have notice some of event classes in Payable and Receivable.
- Payables
- Invoice
- Debit Memo
- Prepayment
- Payments
- Refunds
- Receivables
- Invoice
- Deposit
- Receipt
- Bill Receivable
- AP Invoice Events
- Validated
- Adjusted
- Cancelled
- AR Receipt Events
- Created
- Applied
- Unapplied
- Updated
- Reversed
- R12 SLA vis-Ã -vis AX of 11i
- Understanding Global Accounting Engine ( Product AX)
- Understanding Global Accounting Engine - Dual posting, Tables, Reports
- R12 SLA: From Product Accounting to Subledger Accounting
- R12 SLA: Analyzing Sub ledger Accounting
Is SLA a clone of AX?
Yes, almost the functionality was derived from there itself, lets see vis-Ã -vis to uptake some of the functionality in these two products.
Not only functionality, some of the reports replaces the corresponding reports of the Global Accounting Engine.
The good is that both the Global Accounting Engine(AX) and Oracle Subledger Accounting(SLA) generate accounting from a compiled definition of accounting rules defined by users. Oracle Subledger Accounting further maintains version control on the rules enabling users to modify the rules while maintaining auditability.
New featues centralized processing, a tight integration with Receivables & Payables along with nicly coupled with flexible approval rules makes a brand new A(advanced)GIS .New Reconciliation Tools is yet another that makes settlement progress easy.
Read for More details
R12 “AGIS”:
What makes “Advanced?”
In Oracle R12 GIS Module, seems some of the old features and functionality have been greatly enhanced with addition of some more new features introduced. The point which should be noted here is, R11i GIS get new name commonly known as “Advanced Global Intercompany System” in short ‘AGIS’. The difference is the prefix ‘A’, therefore will take a close microscopic view on feature that makes 11i GIS into Advanced GIS of R12.Here are the candidate features:
Ability to create invoices (AR and AP)
Oracle Advanced Global Intercompany System can create invoices in payables and receivables sub ledger from intercompany transactions.
Using Oracle Advanced Global Intercompany System user can enter transactions for multiple recipients within a single batch. This allows user to submit intercompany transactions from one initiator to one or more recipients in a single batch.
Proration of transaction distribution amounts
When user allocates more than one distribution account in a batch that has multiple recipient transactions, Oracle Advanced Global Intercompany System can automatically prorate the distribution amounts based on the recipient transaction amounts. The proration of amounts is also used by Oracle Advanced Global Intercompany System to adjust the distribution amounts in the batch when a recipient transaction is deleted or it is rejected.
Upload Transaction Batches created in Excel
This was a missing link in the earlier version, as earlier product does not have capability to use direct upload functionality, rather than interfacing through Open GIS interface. In Release 12 ADI is heavily used in this module, which is replacement of external integration for AGIS System using by mean of Microsoft based Excel spreadsheet. Now flexibility is provided to user that can generate spreadsheet templates that have features of intercompany entry pages and using the templates the user can enter transactions in the spreadsheet and upload them into Oracle Advanced Global Intercompany System. The good thing has found the standard templates can be customized by removing or adding the entry fields from a list of available fields. This feature is used to create a template that contains only the entry fields that are important for the business. The required fields cannot be removed from the template. Once the templates are generated, user can save them in their local computer to reuse them in the future. This figure describe the options available in both the versions.
Multiple recipients Support
Reversal of batch/transaction
This changed feature enables a user to reverse a whole batch or an individual transaction in a batch. When the user reverses a batch or a transaction, a new reversal batch is created, which displays the references to the original transaction. One point to be noticed is that new batch is submitted automatically immediately after it is created. Not both the parties (Sender /receiver), its only users with access to the initiator organization can reverse its batches or transactions. The set up is there where a user can choose a reversal method determining if the new batch will be created with opposite signs, or with switched debits and credits.
Descriptive flexfield support
In AGIS descriptive flexfields is supported on the batch and also on individual transactions within the batch. Descriptive flexfields allow user to enter any additional information specific to the nature of business, in the batch and in the transactions. Important to note that these DFF can be used by sender. The user can enter descriptive flexfield information for the recipient in the Recipient Accounting section.
Flexible Approval Rules and Workflow Notifications
In R12, AGIS very similar to other module, home page displays notifications about approval or rejection statuses of intercompany transactions. You should note that notifications can be sent to the users via email. The rules for approvals and notifications can be customized using Oracle Approval Management Engine (AME), which allows the user to add extra approval rules and hierarchies to suit their business needs.
Document attachment
The user can attach the documents for the batch as well as for each of the transaction. When user submits the batch, the documents are transferred to respective recipients.
Transaction security
Intercompany transactions entry pages incorporate various security features. The user can enter transactions only for those intercompany organizations that are assigned to the user. Other security features include minimum transaction amount, control amount and function security.
For example:
Intercompany accountant processes intercompany transactions for many intercompany organizations in the enterprise.What is different between these two is :
- R11i - Each responsibility has only one subsidiary assigned, therefore a user can initiate intercompany transactions for one subsidiary from each responsibility
- R12 – the user can initiate intercompany transactions for many trading partners without changing responsibility
The new Intercompany calendar gives the user the option to control intercompany transaction processing by periods status.
What is observed in this functionality can be best describe as:
If a user wants to control intercompany cut-off dates, then the user can choose which General Ledger calendar will be used to control transaction entry by intercompany period status. Intercompany Calendar prevents users from entering transactions in closed periods and from closing the period if open transactions exist for the period user wants to close. When the user tries to close General Ledger accounting period, or Oracle Payables period or Oracle Receivables period while Intercompany Period is still open, the warning message can be displayed informing user about the status of intercompany period.
Setup Profile Options
In AGIS there is no profile options that means these three as below intercompany profile options used in R11i are obsolete in this release.
- Intercompany: Protect Receiver Natural Account
- ntercompany: Subsidiary
- Intercompany: Use Automatic Transaction
There are two new reports avaible in XML Publisher format
- Intercompany Transaction Summary report
- Intercompany Account Details report.
The new reports offer all of the functionality of the obsolete reports plus additional benefits.
A bit on these 2 reports:
1)Intercompany Transaction Summary report replaces the Intercompany Transaction Detail report and Unapproved Transaction Listing report.
The purpsoe of this report is to give user a clear overview of intercompany transactions and their statuses, there so that day-to-day tasks and speeds up period close activities.
This report also provides supporting documentation for intercompany reconciliation and helps keep intercompany in balance by uncovering any potential discrepancies.
2) Intercompany Account Details report replaces the Transaction Activity Summary report
This new report provides a detailed listing of all accounting lines for intercompany batches, grouped by transaction.
The report is divided into two sections:
- one section for outbound batches
- one section inbound transactions.
The user can run the report for one or many organizations to which the user is given the access.
User can select what parameters like initiator, Recipient, GL Date range, Batch Number range, Transaction Status, Currency, Batch Type, Invoice Number, and many more to run the report by. User can run the report by ranges of initiator and recipient accounts to see what transactions make up their balances.
Reconciliation process is automated to easily reconcile intercompany receivables and intercompany payables account balances. The process helps user to identify account balances difference and to research the cause of difference. The reconciliation process supports drilldown to General Ledger journal details and subledger transaction details to investigate the reason of balance difference. The underline report have capablity to show:
- Details by Reconciliation Summary
- Details Reconciliation Summary by Source
- Details Reconciliation Summary by Journals
As bank Data Model has been changed and moved at a centralized place which get associated with legal entity association. Bank statement reconciliation become easier by more user friendly parameter.Other Features like centralized Balances & Interest,Interest Calculator,Bank Account Transfers makes a complete different look.
Read the below topics for More details:
- R12 : Bank & Trading Community Architecture(TCA)
- CE_BANK_ACCOUNTS for bank accounts
- CE_BANK_ACCT_USES_ALL for account uses by Operating Units & Legal Entities
- CE_GL_ACCOUNTS_CCID for bank account use accounting data
- R12 : EBS Banking Model in demanding and Changing World
As we aware the key message of R12 while release was .
- Think Globally - using business intelligence and analysis tools
- Work Globally - using the global capabilities of the applications
- Manage Globally - using the latest system architecture and middleware
What is new in R12 for Bank
These changes make easier and more reliable by
- Single access point
- Single Legal Entity ownership
- Usage rights granted to one or more Organizations
- Reconciliation option defined at Bank Account level
- More flexibility and control
Release 10.6 character/10.7 NCA to 11i
How 10.x supplier banks are mapped to 11i
- Bank Name
po_vendor_sites.bank_number => ap_bank_branches.bank_name
po_vendor_sites.bank_number => ap_bank_branches.bank_number - Bank Number
po_vendor_sites.bank_num => ap_bank_branches.bank_num
po_vendor_sites.bank_num => ap_bank_branches.bank_branch_name - Bank Account Name
po_vendor_sites_all.bank_account_name => ap_bank_accounts_all.bank_ account_name - Bank Account Number
po_vendor_sites_all.bank_account_num => ap_bank_accounts_all.bank_ account_num
These are tables which hold the bank details irrespective of supplier or internal banks.
- ap_bank_branches
- ap_bank_accounts_all
If we compare the bank with 11i vs R12, we can notice the bank was utilized into three different places , finance ,payroll and treasury, which requires altogether a different setup. It was one of the big issues with integration aspect, as significant problem was recognized once the Expense management and payroll uses same bank for the respective person.
There was a common question/confusion between the Integration Existence between Bank Data in Accounts Payable and Bank Data In Payroll ?
As discussed above , you know most of release of 11i family of oracle Application does not have integration between HR and AP for bank account data.
We have notice in 11i there was functionality in which Payables in which we will create an employee type supplier from HR data and it will contain name and address info but not bank information. The reason for this is that HR/Payroll does not store the bank information in a standard way that makes the integration possible.
So now r12 this was well taken care and integration is built. There are plans under way for all bank account data models in the various products to be consolidated in the new TCA architecture. The Cash Management team is working on this project. Payables and HR/Payroll are working so that the eventual idea will be that you can set up bank accounts in one place and then indicate the usage (pay, expense reimbursement, etc).
For understanding it is comparison between 11i and release 12 , where TCA community take cares of every things.
Release 12 , what is new than
Bank Accounts will be stored in a new table called CE_BANK_ACCOUNTS and will be located at a Bank Branch.
The new table which hold the bank information are as:
- CE_BANK_ACCOUNT:stores bank account attributes
- CE_BANK_ACCT_USES_ALL : This stores the bank account use attributes specific to Operating Unit (AR, AP) and Legal Entity (Treasury).
- CE_GL_ACCOUNTS_CCID :The accounting data pertaining to the bank account use will be stored in the table.
Missing link between Supplier And Supplier Banks?
You should know
- The link between PO_VENDORS and HZ_PARTIES is PO_VENDORS.party_id.
- The link between PO_VENDOR_SITES_ALL and HZ_PARTY_SITES is PO_VENDOR_SITES_ALL.party_
site_id . - When a Supplier is created Record will be Inserted in HZ_PARTIES. When the Supplier Site is created Record will be Inserted in HZ_PARTY_SITES. When Address is created it will be stored in HZ_LOCATIONS
- When a bank Is Created, the banking information will be stored in
- When the Bank is assigned to Vendors then it will be updated in HZ_CODE_ASSIGNMENTS.
Internal Bank Accounts & Supplier and Customer Bank Accounts in R12
Internal Bank Accounts
In Release 12, each internal bank account is assigned to a Legal Entity. Any or all operating units associated with that legal entity are permitted to use that bank account.
Supplier and Customer Bank Accounts
In Release 12 provides a centralized repository for suppliers’ and customers’ bank account and credit card information. All data is stored in one, secure place, providing shared service centers and collection departments consistent information that they need.
Payment
Central Engine for Payment Disbursement and Funds Capture,Secure Repository for Credit Cards and Customer/Supplier Bank Accounts
Read for more details for technical coverage:
- Know the Changes because of R12 Oracle Payment Module (Fund Disbursement) in EBS
- Creation & validation of payments
- Aggregation of payments into files
- Format & transmission of files
It is very important to understand some of important changes impact while upgrading 11i to r12 to some of the custom reports if they are based out of R11i10 version schema model.
Understand some of the changes because of Funds Disbursement (Oracle Payment)
Some of the important changes can be summarized as:
Balancing
To Support Intercompany & Intracompany Transaction, the difference can be best understood as:
11i:
Balancing Journal Entries generated at posting time by the General Ledger Posting routine
In R12, the Balancing Routine:
Generates balancing accounting entries for subledger journal entries at time accounting is created
Generates balancing journal entries at posting time for all other journals Centralized Balancing Routine
Oracle Receivables
- Release 12 : What’s New in Oracle Receivables
Oracle’s Release 12 (R12) of their E-Business Suite continues to extend the functionality of the Receivables arena , in addition to incorporated new financial architecture and new products , Oracle Receivables is now very natured product.As part of this post, we will look at Oracle’s newest/enhanced offerings in Oracle Receivables.
Revenue Recognition
In R12 revenue recognition is based on Rules and Events, and they are:
- Time-Based Revenue Recognition
- Ratably Over Time
- Upon Expiration of Contingencies
- Event-Based Revenue Recognition
- Payment
- Customer Acceptance
- Rule-Based Revenue Recognition
- Payment Term Thresholds
- Refund Policy Thresholds
- Customer Credit worthiness
Lets take a quick look on some of the new changes:
- Daily Revenue Recognition
- Revenue distribution over full as well as partial accounting periods.
- Fulfills stringent accounting standards
- Accuracy to the number of days in the accounting period.
- Enhanced Revenue Contingencies :
- Fully Supports US GAAP and IAS
- User definable contingencies
- User definable defaulting rules for contingencies assignment
- Supports parent-child (e.g. Product and Service) relationship
- Integration with Order Management and Service Contracts
- User Interface as well as Programming Interface (API) support
- Access control through seeded Revenue Managers Responsibility
- Deferred Revenue Management
Event-Based Revenue Management in Oracle Receivables allows users to define revenue deferral reasons or contingencies and corresponding revenue recognition events. In Release 12, revenue contingencies for customer acceptance that are applied to goods sold in Order Management are now applied to services sold to cover those goods. Revenue is deferred for service ordered in both Order Management and Service Contracts. Acceptance contingencies associated with an item instance are automatically applied to service revenue associated with the item instance when it is covered in a Service Contract as a Covered Product. Revenue for services on other covered levels, subscriptions and usage is not impacted by contingencies applied to goods associated with those services.
Global Architecture
As we know, with in global architecture , these new things has been introduced.
- Sub ledger Accounting - Journal Creation takes place prior to GL.
- Bank Model - This unified model enables to park customer Bank as well as Internal bank information into there new model, so that working capital cash flow should be enhanced.
- EBusiness Tax - Oracle E-Business Tax is a new product that uniformly delivers tax services to all Oracle EBusiness Suite business flows. In Release 12, Receivables is enhanced to support
integration with the E-Business Tax product. - Intercompany - This is enhanced by automatic balancing,
This enhance you by enabling and performing tasks across operating Units (OUs), where you have access to without changing responsibilities. As we know , MOAC 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.
In nutshell, once MOAC is enabled, then you can:
- Perform Setups for any OU
- Enter invoices across OUs
- Receive Cash for any OU
- Manage Customer Credit across all OU
- Run reports across OUs
Because of this greatly enhanced Role based security options, the ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring from finance controller side.
Line Level Cash Applications
The Line Level Cash Applications solution allows the application of receipts to specific transaction items such as individual lines, groups of lines, or tax or freight buckets. From the receipt workbench, you are able choose whether to allocate cash to the entire transaction or to apply amounts against specific items according to the customer remittance.
- Apply to specific lines or groups of lines
- Indicate when tax, freight or finance charges only are paid
- Make changes as needed
- Easily view activity against receipts
- Know what historical activity affects your receipt
- See what prior activity affects a new application
We have seen 11i Customer standard forms makes easier by simple navigation. This times there is clearer separation of the party and account layers, which makes a consist ant look and feel. More over full backward compatibility with 11i UI Bill Presentment Architecture has been provided.
The AR Create Customer page in R12 has eliminated the navigation to separate windows. Now, users can specify the following on a single page:
- Customer Information
- Account Details
- Address
- Account Site Details
- Business Purpose
Refunds
Oracle Receivables is fully integrated with Oracle Payables to deliver a seamless, automated process to generate check and bank account transfer refunds for eligible receipts and credit memos.
Late Charges
As we know oracle receivables delivers enhanced Late Charges functionality enabling the creation of standard late charge policies that can be assigned to customer accounts or account sites.Flexible policy configurations include multiple interest calculation formulas, transaction and account balance thresholds, and currency-level rate setups. With new changes these are the enhanced functionality:
- Expanded assessment and calculation capabilities
- Tiered charge schedules
- Penalty charge calculation
- Integration with Balance Forward Billing
- Centralized setup and maintenance of late charge policies
- Calculation performed independent of Dunning and Statement processing
AR-AP Netting
The matching of open receivables and open payables is automated.
Balance Forward Billing
This makes easy transaction processing.
Balance Forward Billing is an enhanced version of the existing consolidated billing functionality for industries where customers are billed for all their account activity on a regular, cyclical basis.
Balance Forward Billing provides the ability to setup cycle-based billing at the account or account site levels, enable event based billing, and leverage user configurable billing formats provided by Oracle Bill Presentment Architecture.
A typical case can be best understood as
- Payment Term defaults
- from Site profile if Bill Level = Site
- from Account profile if Bill Level = Account
- Billing Date derived from transaction date and billing cycle
- Due Date derived from billing date and payment term
- Optionally select non-Balance Forward term if Override Terms = Yes
- Release 12: 6 New and Changed Feature in “Oracle Assets”
- Sub Ledger Accounting Architecture
- Enhanced Mass Additions for Legacy conversions
- Automatic Preparation of Mass Additions
- Flexible Reporting using XML publisher
- Automatic depreciation rollback
- Enhanced functionality for Energy industry
As we have discussed “Oracle Sub edger Accounting ” is a rules-based engine for generating accounting entries based on source transactions from ALL Oracle Applications. Therefore Fixed Asset module does integrated with such functionality to cater the asset accounting at ledger level. With this feature:
- Oracle Assets is fully integrated with SLA, which is a common accounting platform for Sub Ledgers.
- Customers can use the seeded Account Derivation definitions or modify them as required.
- Continue to support Account Generator functionality for existing Asset Books.
- New SLA Accounting report and online account inquiry.
- It leads to faster closings: Since there is no requirement of having to close the period, accounting can be created for FA transactions and sent to GL on a continual basis throughout the period.
- There is no need to wait until the end of the month to run Create Accounting in order to get the data to GL.
Enhancements have been made to the FA_MASS_ADDITIONS table.
Now with this enhanced feature, we can populate the values for the new attributes directly in the FA Mass Additions interface table rather than accepting default values from the asset category. Legacy conversion can be completely automated.These are new adds-on:
- Asset Life
- Depreciation Method
- Prorate Convention
- Bonus Rule Ceiling Name
- Depreciation Limit Plus others
- New columns in the Asset Additions WebAdi
- Additional attribute can be used to populate values directly thereby eliminating the need to override the defaults from the Asset Category
- This new feature consists of default rules and Public APIs that can be used by customers to complete the preparation of mass addition lines automatically.
- Auto populate required fields such as Expense Account, Asset Category etc.
- Avoid manual intervention during the Mass Additions prepare process
- Avoid customization and use public APIs to effect custom business logic.
- Assets now uses Flexible Reporting using XML publisher
- Major Asset Transaction reports have been modified to support XML publisher.
- Users can modify or use new templates to view report output.
Thirteen asset reports have been converted in XML Publisher based report.
- Asset Transfers Report
- Transaction History Report
- Asset Reclassification Report
- Mass Additions Create Report
- Cost Adjustment Report
- Cost Summary Report
- CIP Summary Report
- Reserve Summary
- Journal Entry Reserve Ledger
- Asset Additions Report
- CIP Capitalization Report
- Mass Additions Posting
- Asset Retirements
Depreciation is rolled back automatically by the system when any transaction is performed on an asset if the following conditions are met:
- Depreciation has been processed in that period
- The period is not closed
Depreciation rollback is executed only on select assets as required and not on the entire Asset Book this enhances performance of the program.
Since release 11i, users have been able to run depreciation for an asset book without closing the period. If additional adjustments are required in the current period, then the user submits a process to roll back depreciation for the entire book, performs the necessary adjustment(s) and then resubmits the depreciation program. In Release 12 the intermediate manual step of rolling back depreciation for the entire book in order to process further adjustments on selected assets is no longer necessary. As before users may submit depreciation for the entire book prior to closing the period. If it becomes necessary to process financial adjustments on one or more assets, the user may proceed with the transaction normally via the asset workbench or mass transactions.
Oracle Assets automatically rolls back the depreciation on just the selected assets (instead of the whole book) and allows the transaction(s) to be processed normally. The asset(s) for which depreciation was rolled back is automatically picked up during the next depreciation run or at the time that the depreciation period is finally closed.
Enhanced functionality for Energy Industry
As per RCD , this can be understood as;
- Energy Units of Production Method for Group Assets
- Allow Production method for Group Assets
- Allow Production upload to Group Assets
- Energy Straight line Method
- Net Book Value / Remaining Life
- ADI-
- OU- Operating Unit
- TCA-
- RCD-
- LE- Legal Entity
- SLA-Sub Ledger Accounting
- MOAC
- MRC
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