Oracle Cash Management r12 Summary
Compiled By:
Prasanna Kumar Reka
Oracle Applications Consultant
rekaapps@yahoo.com
Topics:
• New Bank Account Model
• Multi-Org Access Control (MOAC)
• Integration with SLA
• Bank Account Transfers
• Cash Pooling
• Other Features
Cash Management model is used to manage liquidity and control cash, some techniques like Cash pooling will help organizations use idle funds and reduce external borrowing which will help organizations use cash optimally. Some enhancements like Bank Accounts transfers are very useful features for those who deal with multiple/concentration accounts.
New Bank Account Model:
Banks are now taken into Trading Community Architecture (TCA) which will give several benefits when customers are using shared services models for disbursements and collections. Benefits from the new bank account module are:
• Internal Bank Accounts are defined and managed centrally and act as a single point of access for all other modules like payroll, payables, receivables, treasury etc.
• Bank Account access for each application is made explicit for security and internal control purposes.
• Each bank account is defined for Bank & Bank Branch combination which is defined in TCA
• A single Legal Entity is granter ownership for the Bank Account and user rights are provided for organizations.
• Since the bank account is at legal entity level reconciliation made easy as it is one account against multiple in previous models, reconciliation options are defined at bank account level.
Multi-Org Access Control (MOAC): Supports MOAC and users can work on multiple organizations from a single responsibility.
Sub-Ledger Accounting (SLA): Cash management is tightly integrated with SLA and all cash management accounting is handled using SLA.
Bank Account Transfers:
Balances can be transferred between internal bank accounts manually or automatically using physical cash pools, this feature earlier supported from treasury is now supported in Cash Management.
However payment processing is handled using Oracle Payments and accounting using SLA.
Cash pooling:
Oracle Supports following cash pooling techniques:
a. Self Initiated Physical Cash Pools
b. Bank Initiated Physical Cash Pools or Zero Balance Accounts (ZBA)
c. Notional Cash Pools
Note: Cash pooling techniques which are supported earlier form Treasury are now supported form Cash Management; however cash pools spanning different legal entities are still supported from Treasury only.
Self-Initiated Cash Pool:
This type of cash pool is controlled by organization users. This includes defining rules to automatically determine when bank account transfers should be made and for what amount. Users can accept or overwrite system generated “Transfer Proposals”.
Bank-Initiated Cash Pool or Zero Balance Bank Accounts (ZBA):
This is also called as Zero Balance Accounts as no balances are left in the accounts at the end of the day as they are swept to concentration accounts.
Organizations can use Bank Service to automatically sweep all end of day balances to and from main concentration account. Oracle Cash Management automatically creates and reconciles all the related sweep transactions based on reported prior-day bank statement activity.
Notional Cash Pools:
Organizations may utilize notional cash pool arrangements offered by banks that track not only individual account balances but also the net balance across all accounts.
This technique is common in some countries and does not require physical cash transfers to be made between accounts for concentration purposes.
Other Features:
Bank Statement Accounting: Users can create Matching Rules which are used to automatically create and reconcile transactions in Oracle Cash Management based on reported prior day bank statement lines. Matching Rules are defined based on Bank Accounts, Transaction Codes and Text Search Strings.
Reduces reconciliation issues associated with repetitive first notice items like bank fees or bank account interest. Transactions that were created are stored in Cash Management are available for reporting as well as for automatic reconciliation.
Support for New Balance Types: New Bank Account balance types supported for internal bank accounts (Ex: Ledger, Available, Value date, I day float, 2 day float, projected to date, MTD, YTD).
Interest Calculation: System allows the users to verify interest amounts charged or credited by their banks based on balance history and user-defined interest rate schedules.
Bank Account Signing Authority: Users can indicate single and joint signing limits for each bank account as well as signer group categories, effective dates, approval statuses and other relevant information.
Electronic copies of documents like Passport Photos, Signature files or Bank documents directly to signing authority records.
Using Oracle Workflow approval requests can be routed for signing authorities, or users can set status manually.
Cash Positioning Intra-Day Activities: Intra-Day bank statement activity can be included or excluded from Cash positioning.
Saturday, March 28, 2009
Friday, March 13, 2009
Oracle Accounts Receivable r12 Summary
Oracle Accounts Receivable r12 Summary
Compiled By:
Prasanna Kumar Reka
Oracle Applications Consultant
rekaapps@yahoo.com
• Multi-Org Access Control allows users to access data from multiple operating units from a single Receivable application responsibility
• Fully integrated with Sub-Ledger accounting (SLA)
• Receivables use the Tax setups from E-Business Tax Modules
• Collections Workbench is Obsolete, this functionality is handled from Advanced Collections Module
• Bills Receivable feature replaced Bills of Exchange feature, new additional reference field added to Bills Receivable Workbench
• Oracle Deductions management solution replaced Trade Accounting Feature. Deduction management solution is delivered in partnership with Receivables, Trade Management & Credit Management. Handles customer deductions and over payments.
• Line Level cash Application – allows users application of receipts to specific transaction individual items such as individual lines, group of lines, tax or freight buckets
• Funds Capture Enhancements – Receivables through oracle payments support the automated, electronic funds capture via Credit Cards, ACH, and bank-to-bank transfers.
• Refunds – Receivables works with Oracle payments to process and generates checks and bank account transfers for customer refunds and credit memos.
• New Credit Card Error handling enhancements
• Credit Card Charge backs – Cardholders can dispute credit card charges with their car-issuing bank and when they do, the merchant is “Charge Back” by the card’s issuing bank.
• Balance Forward Billing – BFB is the enhanced version of consolidated billing invoice for industries where customers are billed for all their account activity on a regular, cyclical basis.
• New Customer GUI: Customer standard form is redesigned as HTML-based user interface.
• Late Charges - Users can create late charge policies and assign the same to customer accounts or sites. Flexible policy configurations include multiple interest calculations, transaction and account balance thresholds, and currency level rate setups. Additionally charges may be modeled as different document types such as adjustments, debit memos, or interest invoices depending on the business need.
• Legal Entity – Oracle Receivables captures transactional data with in the context of legal entity owning this data, thus enabling better, more streamlined statutory compliance. Legal Entities are visible explicitly on receivables transactions.
• Reconciliation between AR & GL made easy by using flexible account and exception report.
• AP/AR Netting – Automated, users can know whether trading partner has a greater balance outstanding and update your books, collect payments or make payments accordingly.
• Golden Tax Adaptor for Mainland China for government certified Tax Software called “Golden Tax”.
Revenue Management Enhancements
• As per the contractual obligations revenue can be recognized partially prorated for any accounting period based on the dates and rules. Receivables deliver new configurable accounting rules to determine the treatment of revenue allocations for a partial period. Ex: If a contract goes into effect in the middle of the period, recognize revenue partially on prorate basis for that month.
• Event-Based Revenue Management allows users to deferral reasons and corresponding revenue events specific to their business practices.
• As per the matching principle COGS and Revenue are recognized in the same accounting period. For Example of Revenue is partially recognized, the corresponding COGS is proportionately recognized.
• In partnership with Lease Management and Loans, newly enhanced Event-Based Revenue Management feature achieved payment based revenue recognition by associating transaction lines with revenue impacting contingencies.
Compiled By:
Prasanna Kumar Reka
Oracle Applications Consultant
rekaapps@yahoo.com
• Multi-Org Access Control allows users to access data from multiple operating units from a single Receivable application responsibility
• Fully integrated with Sub-Ledger accounting (SLA)
• Receivables use the Tax setups from E-Business Tax Modules
• Collections Workbench is Obsolete, this functionality is handled from Advanced Collections Module
• Bills Receivable feature replaced Bills of Exchange feature, new additional reference field added to Bills Receivable Workbench
• Oracle Deductions management solution replaced Trade Accounting Feature. Deduction management solution is delivered in partnership with Receivables, Trade Management & Credit Management. Handles customer deductions and over payments.
• Line Level cash Application – allows users application of receipts to specific transaction individual items such as individual lines, group of lines, tax or freight buckets
• Funds Capture Enhancements – Receivables through oracle payments support the automated, electronic funds capture via Credit Cards, ACH, and bank-to-bank transfers.
• Refunds – Receivables works with Oracle payments to process and generates checks and bank account transfers for customer refunds and credit memos.
• New Credit Card Error handling enhancements
• Credit Card Charge backs – Cardholders can dispute credit card charges with their car-issuing bank and when they do, the merchant is “Charge Back” by the card’s issuing bank.
• Balance Forward Billing – BFB is the enhanced version of consolidated billing invoice for industries where customers are billed for all their account activity on a regular, cyclical basis.
• New Customer GUI: Customer standard form is redesigned as HTML-based user interface.
• Late Charges - Users can create late charge policies and assign the same to customer accounts or sites. Flexible policy configurations include multiple interest calculations, transaction and account balance thresholds, and currency level rate setups. Additionally charges may be modeled as different document types such as adjustments, debit memos, or interest invoices depending on the business need.
• Legal Entity – Oracle Receivables captures transactional data with in the context of legal entity owning this data, thus enabling better, more streamlined statutory compliance. Legal Entities are visible explicitly on receivables transactions.
• Reconciliation between AR & GL made easy by using flexible account and exception report.
• AP/AR Netting – Automated, users can know whether trading partner has a greater balance outstanding and update your books, collect payments or make payments accordingly.
• Golden Tax Adaptor for Mainland China for government certified Tax Software called “Golden Tax”.
Revenue Management Enhancements
• As per the contractual obligations revenue can be recognized partially prorated for any accounting period based on the dates and rules. Receivables deliver new configurable accounting rules to determine the treatment of revenue allocations for a partial period. Ex: If a contract goes into effect in the middle of the period, recognize revenue partially on prorate basis for that month.
• Event-Based Revenue Management allows users to deferral reasons and corresponding revenue events specific to their business practices.
• As per the matching principle COGS and Revenue are recognized in the same accounting period. For Example of Revenue is partially recognized, the corresponding COGS is proportionately recognized.
• In partnership with Lease Management and Loans, newly enhanced Event-Based Revenue Management feature achieved payment based revenue recognition by associating transaction lines with revenue impacting contingencies.
Wednesday, March 11, 2009
Oracle Assets r12 Summary
Oracle Assets r12 Summary
Compiled By:
Prasanna Kumar Reka
Oracle Applications Consultant
rekaapps@yahoo.com
Topics:
1. SLA Integration
2. Mass Additions Interface Enhancement
3. Reporting using XML Publisher
4. Automatic Depreciation Rollback
5. Other Enhancements
Few changes made in Oracle Assets module but are very useful.
SLA Integration
• Asset accounting is tightly integrated with SLA, users can use the seeded accounting definitions or can define custom definitions leveraging the flexibility of SLA.
Mass Additions Enhancements
• New columns provided to Mass Additions interface tables to import certain values like asset life, depreciation method etc from legacy systems without deriving from asset category setups
• New extensible pubic APIs provided to automatically prepare mass additions without user interface for all required attributes such as expense account, asset category, location etc.
XML Reports
• XML publisher support major asset transaction reports in variable formats by creating your own templates using familiar tools such as Acrobat, Word and Excel.
Automatic Depreciation Rollback
• Function to Roll Back Depreciation is removed as it is handled by the Assets automatically.
• If users need to make adjustments to one or few assets after running depreciation without closing period, they can proceed to do so, oracle assets rollback depreciation for the assets adjusted automatically
• Assets 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.
Other Enhancements
• Enhanced logging for Asset Transactions and Programs
• Enhanced functionality for Energy industries a) Asset Impairment b) Energy units of Production Method (UOP) c) Energy straight line method.
Compiled By:
Prasanna Kumar Reka
Oracle Applications Consultant
rekaapps@yahoo.com
Topics:
1. SLA Integration
2. Mass Additions Interface Enhancement
3. Reporting using XML Publisher
4. Automatic Depreciation Rollback
5. Other Enhancements
Few changes made in Oracle Assets module but are very useful.
SLA Integration
• Asset accounting is tightly integrated with SLA, users can use the seeded accounting definitions or can define custom definitions leveraging the flexibility of SLA.
Mass Additions Enhancements
• New columns provided to Mass Additions interface tables to import certain values like asset life, depreciation method etc from legacy systems without deriving from asset category setups
• New extensible pubic APIs provided to automatically prepare mass additions without user interface for all required attributes such as expense account, asset category, location etc.
XML Reports
• XML publisher support major asset transaction reports in variable formats by creating your own templates using familiar tools such as Acrobat, Word and Excel.
Automatic Depreciation Rollback
• Function to Roll Back Depreciation is removed as it is handled by the Assets automatically.
• If users need to make adjustments to one or few assets after running depreciation without closing period, they can proceed to do so, oracle assets rollback depreciation for the assets adjusted automatically
• Assets 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.
Other Enhancements
• Enhanced logging for Asset Transactions and Programs
• Enhanced functionality for Energy industries a) Asset Impairment b) Energy units of Production Method (UOP) c) Energy straight line method.
Tuesday, March 10, 2009
Oracle Sub Ledger Accounting (SLA) r12 Summary
Oracle Sub Ledger Accounting (SLA) r12 Summary
Compiled By:
Prasanna Kumar Reka
Oracle Applications Consultant
rekaapps@yahoo.com
Topics:
1. SLA is a new product
2. Inconsistent Accounting Practices in earlier releases
3. Centralized repository for Sub-Ledger Accounting with Multiple Accounting Representations Support
4. Flexible Accounting Definitions
5. Draft Accounting
6. Online Accounting
7. Replacement for Disabled accounting
8. On-Line inquiries
9. Journal Entry Sequencing
10. Sub-ledger Manual Journal Entries
11. Multi-Period Accounting
12. Standard Reports with XML Publisher Template
13. Diagnostics framework
14. Other Enhancements
SLA is a new product
• Sub-Ledger Accounting is new product in release 12, users will not find this as a separate module, infact they are provided as extra functions with in Sub-Ledgers
• Sub-Ledger is designed leveraging the Common Accounting Module (XLA), Global Accounting Engine (AX) and event based accounting model introduced earlier in accounting for AP transactions.
Inconsistent Accounting Practices in earlier releases
• There are lot of inconsistencies in accounting in earlier releases:
-->AP-creates and stores accounting in AP and then transferred to GL
-->AR- no dr/cr are created and stored in AR but distribution information is transferred to GL to create accounting
-->FA- Creates directly into General Ledger
-->PA-Accounting created for 2 sides dr/cr differently
• Sub-Ledger addresses this issue and accounting from all sub-ledgers (complete dr/crs) are stored in sub-ledger first then transferred to General Ledger
Centralized repository for Sub-Ledger Accounting with Multiple Accounting Representations Support
• Now Sub-ledger serves as a centralized repository or common source for all sub-ledger accounting data. Provides the complete links and references between GL financial information and source transactions in Sub-Ledgers. New tables introduces for storing sub-ledger transactions which start with XLA_. Tables used to store Accounting Events, Reconciliation references and accounting information.
• Sub-Ledger facilitates Multiple accounting Representations (MAR) which facilitate posting accounting from a single source to different ledgers in different ways as designed (Accounting Methods).
Flexible Accounting Definitions
• Setting up of Accounting Methods are critical setup for Sub-Ledger accounting. Users can copy seeded accounting methods and change wherever required instead of defining from the scratch.. User Type “Oracle” represents seeded accounting methods and “User” represents user created accounting methods.
• Sub-ledger Accounting Method (SAM)-->Application Accounting Definition (AAD)-->Journal Entry Setups-->Account Derivation Rules (ADR)
• Accounting Setups:
• Sub-Ledger Accounting Method (SAM) --> Ledger Level grouping which is a superset of all Application accounting Definitions (AAD)
• Application Accounting Definition (AAD)--> Sub-ledger or Application level (ex: AP,AR) grouping which is superset of all Journal Entry Definitions. AADs can be created with date effective, which facilitate creation of multiple AADs for each application with different date ranges.
• Journal Entry Setups: Which is critical setup for definition GL date, descriptions, reconciliation references and account derivation rules for generating journal entries for sub-ledger transactions.
• Account Derivation rules are part of Journal Entry setups which derive separate segments to form GL code combination or complete GL code combination. “Conditions” can be used to determine how and when many of these components are used and to create defaults
Draft Accounting
Two accounting generation modes are provided in SLA 1) Final 2) Draft. By creating accounting in DRAFT mode users can check the accounting entries before they are being transferred to GL as final accounting. User can regenerate the accounting again in DRAFT till they are satisfied, process can be repeated any number of times. This minimizes the need for correcting the JEs in general Ledger and facilitates a clean audit as review and corrections are completed in SLA. Accounting created in DRAFT mode is not transferred to General Ledger, DRAFT accounting is for review only purposed and stored in SLA.
Once transactions are reviewed and satisfied accounting is created in “FINAL” mode and final accounting is transferred to GL. Users can create accounting as “FINAL” without actually using “DRAFT” mode of generating accounting. Accounting modes and mode override options are setup in Sub-Ledger options.
Online Accounting
• Ability to immediately create, view, transfer and post accounting in GL when transactions are entered into sub-ledgers like AP (related setups are setup/selected in Sub-ledger setup options and while running concurrent programs).
• Common accounting rules and validations for both offline and online accounting
• Users can create accounting online in draft mode, view adjust before creating accounting in final mode.
Replacement for Disabled accounting
• When an account is disabled, users can continue to create accounting for transactions that include the disabled account without erroring. Oracle SLA stores substituted disabled account on SLA journal lines for audit and reconciliation purposes.
On-Line inquiries
SLA takes advantages of Oracle personalization framework that allows users to customize their view of the accounting using any of the attributes of the journal entry and to save predefined searches. Embedded flows support a bi-directional drill between journal entry headers, lines, T-Account and Transaction data.
Journal Entry Sequencing
Sequencing information is available for querying and display of journals. SLA provides two different sequence mechanisms for sub-ledger journal entries:
1) Accounting Sequence
2) Reporting Sequence
# Accounting Sequencing: SLA assigns a sequence to its journal entries as they are completed.
Reporting Sequencing: Designed to meet legal requirements in southern Europe. Reporting sequence is assigned to both the sub-ledger and general ledger journals entries when the GL period is closed.
Reporting sequence feature replaces the accounting Engine (AX) legal sequencing and Libro Giornale fetures. This type of sequence is used by the most of the legal reports required in some countries as the main sorting criteria to display the journal entries.
Sub-ledger Manual Journal Entries
New Sub-Ledger manual Journal Entries can be created with in the context of the application. There is no concept of Manual JEs in previous releases except for GL.
Multi-Period Accounting
Users can create accrual and recognition journals to allocate costs over a range of accounting periods. Users can also configure GL Date,a prorating method and have the ability to create a single recognition journal based upon the multi period end date.
Recognition journal for the future periods are created as incomplete until the period is open or enterable and are available for inquiries and reports.
Standard Reports with XML Publisher Template
Some critical reports are:
• Journal Entries Report
• Accounting Analysis Report
• Third Party Balances Report
• Open Account balances listing
• Sub –Ledger period close exception report
Diagnostics framework
• Provide a tool to view the information used to create sub-ledger journal entries.
• Helps in understanding how the Journal Entry Setups were used to create journals
• Results of the diagnostics are available as an HTML Report
Other Enhancements
• Ability to account for changes for Third Parties
• Automatic reversal of Accrual entries either next day or into next accounting period
• Accounting policies based on intra or inter-product business flows
• SLA replaced Global Accounting Engine (AX)
• Ability to calculate gain/loss for foreign currency transactions in SLA and use ADRs to account for gain/loss in flexible way.
• Journals created with errors are not transferred to GL, users can view the error journals online or using standard XML publisher. Once corrected user can re-create the accounting. Ex: Journals created for closed GL period.
• AAD loader enables export and import of accounting definitions and journal entry setups. Users can test the Accountign definitions in test instance export and import them into production instance once duly tested.
• MRC functionality is enhanced to support all journal sources. Reporting SOB are now known simply as reporting currencies.
• Users can elect to account for a limited subset of their journals based upon business transaction entities using process categories.
Compiled By:
Prasanna Kumar Reka
Oracle Applications Consultant
rekaapps@yahoo.com
Topics:
1. SLA is a new product
2. Inconsistent Accounting Practices in earlier releases
3. Centralized repository for Sub-Ledger Accounting with Multiple Accounting Representations Support
4. Flexible Accounting Definitions
5. Draft Accounting
6. Online Accounting
7. Replacement for Disabled accounting
8. On-Line inquiries
9. Journal Entry Sequencing
10. Sub-ledger Manual Journal Entries
11. Multi-Period Accounting
12. Standard Reports with XML Publisher Template
13. Diagnostics framework
14. Other Enhancements
SLA is a new product
• Sub-Ledger Accounting is new product in release 12, users will not find this as a separate module, infact they are provided as extra functions with in Sub-Ledgers
• Sub-Ledger is designed leveraging the Common Accounting Module (XLA), Global Accounting Engine (AX) and event based accounting model introduced earlier in accounting for AP transactions.
Inconsistent Accounting Practices in earlier releases
• There are lot of inconsistencies in accounting in earlier releases:
-->AP-creates and stores accounting in AP and then transferred to GL
-->AR- no dr/cr are created and stored in AR but distribution information is transferred to GL to create accounting
-->FA- Creates directly into General Ledger
-->PA-Accounting created for 2 sides dr/cr differently
• Sub-Ledger addresses this issue and accounting from all sub-ledgers (complete dr/crs) are stored in sub-ledger first then transferred to General Ledger
Centralized repository for Sub-Ledger Accounting with Multiple Accounting Representations Support
• Now Sub-ledger serves as a centralized repository or common source for all sub-ledger accounting data. Provides the complete links and references between GL financial information and source transactions in Sub-Ledgers. New tables introduces for storing sub-ledger transactions which start with XLA_. Tables used to store Accounting Events, Reconciliation references and accounting information.
• Sub-Ledger facilitates Multiple accounting Representations (MAR) which facilitate posting accounting from a single source to different ledgers in different ways as designed (Accounting Methods).
Flexible Accounting Definitions
• Setting up of Accounting Methods are critical setup for Sub-Ledger accounting. Users can copy seeded accounting methods and change wherever required instead of defining from the scratch.. User Type “Oracle” represents seeded accounting methods and “User” represents user created accounting methods.
• Sub-ledger Accounting Method (SAM)-->Application Accounting Definition (AAD)-->Journal Entry Setups-->Account Derivation Rules (ADR)
• Accounting Setups:
• Sub-Ledger Accounting Method (SAM) --> Ledger Level grouping which is a superset of all Application accounting Definitions (AAD)
• Application Accounting Definition (AAD)--> Sub-ledger or Application level (ex: AP,AR) grouping which is superset of all Journal Entry Definitions. AADs can be created with date effective, which facilitate creation of multiple AADs for each application with different date ranges.
• Journal Entry Setups: Which is critical setup for definition GL date, descriptions, reconciliation references and account derivation rules for generating journal entries for sub-ledger transactions.
• Account Derivation rules are part of Journal Entry setups which derive separate segments to form GL code combination or complete GL code combination. “Conditions” can be used to determine how and when many of these components are used and to create defaults
Draft Accounting
Two accounting generation modes are provided in SLA 1) Final 2) Draft. By creating accounting in DRAFT mode users can check the accounting entries before they are being transferred to GL as final accounting. User can regenerate the accounting again in DRAFT till they are satisfied, process can be repeated any number of times. This minimizes the need for correcting the JEs in general Ledger and facilitates a clean audit as review and corrections are completed in SLA. Accounting created in DRAFT mode is not transferred to General Ledger, DRAFT accounting is for review only purposed and stored in SLA.
Once transactions are reviewed and satisfied accounting is created in “FINAL” mode and final accounting is transferred to GL. Users can create accounting as “FINAL” without actually using “DRAFT” mode of generating accounting. Accounting modes and mode override options are setup in Sub-Ledger options.
Online Accounting
• Ability to immediately create, view, transfer and post accounting in GL when transactions are entered into sub-ledgers like AP (related setups are setup/selected in Sub-ledger setup options and while running concurrent programs).
• Common accounting rules and validations for both offline and online accounting
• Users can create accounting online in draft mode, view adjust before creating accounting in final mode.
Replacement for Disabled accounting
• When an account is disabled, users can continue to create accounting for transactions that include the disabled account without erroring. Oracle SLA stores substituted disabled account on SLA journal lines for audit and reconciliation purposes.
On-Line inquiries
SLA takes advantages of Oracle personalization framework that allows users to customize their view of the accounting using any of the attributes of the journal entry and to save predefined searches. Embedded flows support a bi-directional drill between journal entry headers, lines, T-Account and Transaction data.
Journal Entry Sequencing
Sequencing information is available for querying and display of journals. SLA provides two different sequence mechanisms for sub-ledger journal entries:
1) Accounting Sequence
2) Reporting Sequence
# Accounting Sequencing: SLA assigns a sequence to its journal entries as they are completed.
Reporting Sequencing: Designed to meet legal requirements in southern Europe. Reporting sequence is assigned to both the sub-ledger and general ledger journals entries when the GL period is closed.
Reporting sequence feature replaces the accounting Engine (AX) legal sequencing and Libro Giornale fetures. This type of sequence is used by the most of the legal reports required in some countries as the main sorting criteria to display the journal entries.
Sub-ledger Manual Journal Entries
New Sub-Ledger manual Journal Entries can be created with in the context of the application. There is no concept of Manual JEs in previous releases except for GL.
Multi-Period Accounting
Users can create accrual and recognition journals to allocate costs over a range of accounting periods. Users can also configure GL Date,a prorating method and have the ability to create a single recognition journal based upon the multi period end date.
Recognition journal for the future periods are created as incomplete until the period is open or enterable and are available for inquiries and reports.
Standard Reports with XML Publisher Template
Some critical reports are:
• Journal Entries Report
• Accounting Analysis Report
• Third Party Balances Report
• Open Account balances listing
• Sub –Ledger period close exception report
Diagnostics framework
• Provide a tool to view the information used to create sub-ledger journal entries.
• Helps in understanding how the Journal Entry Setups were used to create journals
• Results of the diagnostics are available as an HTML Report
Other Enhancements
• Ability to account for changes for Third Parties
• Automatic reversal of Accrual entries either next day or into next accounting period
• Accounting policies based on intra or inter-product business flows
• SLA replaced Global Accounting Engine (AX)
• Ability to calculate gain/loss for foreign currency transactions in SLA and use ADRs to account for gain/loss in flexible way.
• Journals created with errors are not transferred to GL, users can view the error journals online or using standard XML publisher. Once corrected user can re-create the accounting. Ex: Journals created for closed GL period.
• AAD loader enables export and import of accounting definitions and journal entry setups. Users can test the Accountign definitions in test instance export and import them into production instance once duly tested.
• MRC functionality is enhanced to support all journal sources. Reporting SOB are now known simply as reporting currencies.
• Users can elect to account for a limited subset of their journals based upon business transaction entities using process categories.
Monday, March 9, 2009
Oracle Accounnts Payable r12 Summary
Oracle Accounts Payable r12 Summary
Compiled By:
Prasanna Kumar Reka
Oracle Applications Consultant
rekaapps@yahoo.com
Topics:
1. Multi-Org Access Control
2. New Supplier User Interface & Inclusion of Suppliers into Trading Community Architecture(TCA)
3. Bank Definition Enhancements
4. Legal Entity Ownership
5. Invoice Lines and Approvals
6. Disbursement Requests
7. iSupplier Enhancements
8. Payment Process Enhancements & Oracle Payments
9. Enhancements to support Contract Financing
10. Other Topics
Multi-org Access Control (MOAC):
• Using single application responsibility users can process payables transactions for unlimited operating units (OUs).
• Data can be secured with data access privileges to users, using security profiles that are defined for a list of Operating Units (OUs)
New Supplier User Interface & Inclusion of Suppliers into Trading Community Architecture (TCA)
• Suppliers are included in Trading Community Architecture (TCA)
• New user interface for supplier entry and maintenance
• Product specific attributes defined for suppliers can be controlled using function security (Ex: Purchasing attributes)
• New locations and relationships for new Operating Units (OUs) is streamlined
• Purchase Category assignment to designate the type of goods and services that supplier will supply
• Distinction maintained between Supplier company details and Terms & Conditions for a trading relationship
• More flexibility in definition and maintenance of Supplier Bank account information from supplier entry and maintenance user interface.
Bank Definition Enhancements
• Bank Accounts are centrally defined, managed and secured and includes the legal ownership and operating unit access for each bank account
Legal Entity Ownership
• Legal Entity is the one which bears Tax Identification number and legally obligated to report, so ability to track data by legal entity as Out of Box functionality is provided.
• Legal entity can have multiple operating units, data is operating unit specific. Legal entity can be used as selection criteria in pay runs which process invoices from multiple operating units in a single pay run.
Invoice Lines and Approvals
• In release 11i for AP Invoice we can enter Header and distributions, but release 12 concept of Invoice lines is introduced which enables better model the paper or electronic business document. Each Invoice line will have its own distributions so an invoice can have (Header, Line & Distribution)
• New Invoice lines supports the representation of the goods or services as well as tax, freight and other charges as lines with distributions tied to each lines.
• This enhancement also enables the ability for line level approval using AME and matching between an invoice line and a purchase order shipment pay item or receipt.
• Approvers of invoice submitted without a Purchase Order can enter accounting details as they approve.
Disbursement Requests
• “Disbursement Requests” are request to make a payment to a company or individual that is not a supplier.
• Disbursement requests carry accounting entries and support funds checking for budgetary control
• Can leverage AP Approval workflow functionality
• Currently Oracle Loans takes advantage of this feature for loans disbursement to borrowers and Oracle Receivables for Customer Refunds.
• Enhancements for supplier collaboration using iSupplier
iSupplier Enhancements
• Non-PO invoices entered via iSupplier portal
• INVOICE REQUESTS: Invoices entered by supplier with or without PO are represented as Invoice Requests.
• Invoice requests in payables are not accounted or paid until the invoice can be verified and approved.
Payment Process Enhancements & Oracle Payments
• New User Interface, robust and easy to use. (Ex: Selected Invoice view page)
• Toolset for Payment manager – Single pay run selecting multiple Currencies, Paygroups & operating Units.
• Payruns scheduling and payment dashboard empowers your payment manager with the ability to monitor all current pay run processing and payment process that require attention.
• Flexible payment processing engine, oracle payables in partnership with oracle payments offers the latest generation of electronic payment transmission technologies, formats and security meeting most industry standards ‘Out of Box”.
Enhancements to support Contract Financing
• Enhanced invoice processing for contract financing retainage and progress terms.
• Complex payment terms and conditions for fixed price contracts
• Options to schedule points of progression for invoicing, request an advance or progressive financing support, and record negotiated amounts to retain until completion of the purchased items, service or project
• Terms and conditions are supported during the lifetime of the contract.
Other Topics
AP/AR Netting: When trading partner is both a customer and a supplier you may choose to offset open receivables against open payable items. Some enhancements were made from 11i.
Note: Oracle Payments is a new product and it is not part of this post.
Compiled By:
Prasanna Kumar Reka
Oracle Applications Consultant
rekaapps@yahoo.com
Topics:
1. Multi-Org Access Control
2. New Supplier User Interface & Inclusion of Suppliers into Trading Community Architecture(TCA)
3. Bank Definition Enhancements
4. Legal Entity Ownership
5. Invoice Lines and Approvals
6. Disbursement Requests
7. iSupplier Enhancements
8. Payment Process Enhancements & Oracle Payments
9. Enhancements to support Contract Financing
10. Other Topics
Multi-org Access Control (MOAC):
• Using single application responsibility users can process payables transactions for unlimited operating units (OUs).
• Data can be secured with data access privileges to users, using security profiles that are defined for a list of Operating Units (OUs)
New Supplier User Interface & Inclusion of Suppliers into Trading Community Architecture (TCA)
• Suppliers are included in Trading Community Architecture (TCA)
• New user interface for supplier entry and maintenance
• Product specific attributes defined for suppliers can be controlled using function security (Ex: Purchasing attributes)
• New locations and relationships for new Operating Units (OUs) is streamlined
• Purchase Category assignment to designate the type of goods and services that supplier will supply
• Distinction maintained between Supplier company details and Terms & Conditions for a trading relationship
• More flexibility in definition and maintenance of Supplier Bank account information from supplier entry and maintenance user interface.
Bank Definition Enhancements
• Bank Accounts are centrally defined, managed and secured and includes the legal ownership and operating unit access for each bank account
Legal Entity Ownership
• Legal Entity is the one which bears Tax Identification number and legally obligated to report, so ability to track data by legal entity as Out of Box functionality is provided.
• Legal entity can have multiple operating units, data is operating unit specific. Legal entity can be used as selection criteria in pay runs which process invoices from multiple operating units in a single pay run.
Invoice Lines and Approvals
• In release 11i for AP Invoice we can enter Header and distributions, but release 12 concept of Invoice lines is introduced which enables better model the paper or electronic business document. Each Invoice line will have its own distributions so an invoice can have (Header, Line & Distribution)
• New Invoice lines supports the representation of the goods or services as well as tax, freight and other charges as lines with distributions tied to each lines.
• This enhancement also enables the ability for line level approval using AME and matching between an invoice line and a purchase order shipment pay item or receipt.
• Approvers of invoice submitted without a Purchase Order can enter accounting details as they approve.
Disbursement Requests
• “Disbursement Requests” are request to make a payment to a company or individual that is not a supplier.
• Disbursement requests carry accounting entries and support funds checking for budgetary control
• Can leverage AP Approval workflow functionality
• Currently Oracle Loans takes advantage of this feature for loans disbursement to borrowers and Oracle Receivables for Customer Refunds.
• Enhancements for supplier collaboration using iSupplier
iSupplier Enhancements
• Non-PO invoices entered via iSupplier portal
• INVOICE REQUESTS: Invoices entered by supplier with or without PO are represented as Invoice Requests.
• Invoice requests in payables are not accounted or paid until the invoice can be verified and approved.
Payment Process Enhancements & Oracle Payments
• New User Interface, robust and easy to use. (Ex: Selected Invoice view page)
• Toolset for Payment manager – Single pay run selecting multiple Currencies, Paygroups & operating Units.
• Payruns scheduling and payment dashboard empowers your payment manager with the ability to monitor all current pay run processing and payment process that require attention.
• Flexible payment processing engine, oracle payables in partnership with oracle payments offers the latest generation of electronic payment transmission technologies, formats and security meeting most industry standards ‘Out of Box”.
Enhancements to support Contract Financing
• Enhanced invoice processing for contract financing retainage and progress terms.
• Complex payment terms and conditions for fixed price contracts
• Options to schedule points of progression for invoicing, request an advance or progressive financing support, and record negotiated amounts to retain until completion of the purchased items, service or project
• Terms and conditions are supported during the lifetime of the contract.
Other Topics
AP/AR Netting: When trading partner is both a customer and a supplier you may choose to offset open receivables against open payable items. Some enhancements were made from 11i.
Note: Oracle Payments is a new product and it is not part of this post.
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