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Release 12 : Ledger Architecture
Milan Parikh
Principal Product Manager
Agenda
• Set of Books Architecture
• Market Drivers
• Key Features
• Business Benefits
• Upgrade
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Set of Books Architecture
� Set of books
• Holds the accounting for 1 or more legal entities
• Defined by 3C’s
• Chart of accounts, functional currency, accounting calendar
� Each GL responsibility tied to 1 set of books
� Managing Multiple Accounting Representations
• Multiple Reporting Currencies (MRC)
• Use GL Consolidation functionality to consolidate
Set of Books Architecture
SOB East($)
SOB West($)
SOB ATS(€)
SOB DM(€)
SOBs
Modeling Entities with Sets of Books
US East US West Austria GermanyLegal Entities
OU East OU ATSOU West OU DMOUs
Modeling Entities with Sets of Books
Pros Cons
• Each legal entity is a separate set of books
• Data is secure
• Easy to secure definitions, such as FSG reports
• Many books to maintain
• Changing responsibilities
• Difficult to share data and setup information
• Cannot perform processes across books
• Time-consuming open/close process
• Difficult reporting
… with Balancing Segment Values
SOB US($)
SOB Europe(€)
SOBs
OU East OU ATSOU West OU DMOUs
LEs(BSVs)
US East(01)
Austria(03)
Germany(04)
US West(02)
Pros Cons
• Fewer books to maintain
• No changing responsibilities
• Share setup information
• Perform processes across
legal entities
• Easy reporting
• Consolidated information
• Cannot share setup and data
across currency boundary
• No data security
• Cannot secure definitions,
such as FSG Reports and
Mass Allocations
• No explicit mapping of LE’s
with BSV’s
… with Balancing Segment Values
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Market Drivers
�Cross/Multiple-Set of Books Operations and Reporting
�Data and Definitions that can be shared and secured
�Support for Multiple Accounting Representations
Market Drivers
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Key Features
Key Features
• Ledger - Primary, Secondary and Reporting Currencies
• Ledger Sets
• Data Access Sets
• Definition Access Sets
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Ledger
� Defined by 4C’s
i. Chart of accounts
ii. Functional currency iii. Accounting calendariv. Accounting method
� Set of books is converted to a ledger
� Explicit modeling of legal entities via ledgers or
balancing segment values
� The transaction entries are done in Primary Ledger
Ledger
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Secondary Ledger
Business Scenario
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
$$
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
££
French IASFrench IAS
Plan Plan ComptableComptable
French CalendarFrench Calendar
€€
Operations in US, UK, France
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
$$
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
$$
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
$$
Business Scenario
US GAAPUS GAAP
US COAUS COA
US CalendarUS Calendar
££
French IASFrench IAS
Plan Plan ComptableComptable
French CalendarFrench Calendar
€€
Reporting ledger
Secondary Ledger
Secondary Ledgers
• For global companies that must
comply with different countries’
legal requirements
• Useful for supplementary
purposes, such as consolidation
or management reporting
• Provides a complete accounting
picture within itself or a partial
picture to be grouped with other
ledgers to provide a complete
picture
• More flexibility!
• Represent legal entity(s) accounting information in a different:
• Accounting method
• Chart of Accounts
• Calendar
• Subledger Accounting Method
• Maintain at 4 Different Levels
• When security and independence is preferred, secure data and allow certain processes to be performed independently
• Management Reporting Efficiency
Business Reasons Benefits
Secondary Ledger
SLA
Transaction
Accounting
Subledger Transactions
SLA
Corporate Ledger(Primary Ledger)
Local Statutory Ledger(Secondary Ledger)
AP AR FAOther
Subledgers
Legal Entity
Maintaining Multiple Accounting Representations with Secondary Ledgers
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Reporting Currencies
Reporting Currencies
• Useful for consolidation reporting
and analysis
• No need to physically move
balances to create views of
consolidation data
• Beneficial for parent consolidation
entities that share the same chart
of accounts and calendar with
their subsidiaries
• For accounting and reporting in
another currency (in addition to
the ledger’s primary currency)
• Can be used with Primary or
Secondary ledgers
Business Reasons Benefits
Use Reporting Currencies
Currency
If difference is only currency,
Conclusion
CorporateChart of accounts
Monthly Calendar
Accounting Method
US GAAPAccrual
Use a Secondary Ledger
4Cs of a Primary Ledger
If one or more of the following are different,
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Ledger Sets
Ledger Sets
• Grouping of ledgers with the same chart of accounts and
calendar/period type combination
• Essentially treats multiple ledgers as one
Ledger Sets
Open/Close Periods• Open/Close Periods Independently or Simultaneously
Create Journals• Allocations Across Ledgers
• Recurring Journals for All Ledgers
Translate Balances• Translate Balances for All Ledgers
View Information• No Changing Responsibilities
• View Journals and Account Balances
Create Reports• Report on One or All Ledgers in a Ledger Set
Perform the Following Across Ledgers:
Ledger 2
Ledger SetLedger Set
Ledger 1
Ledger 4
Ledger 3
Ledger Sets
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Data Access Sets
Data Access Sets
� Enable responsibilities to access multiple ledgers
� Achieve granular control for accessing balancing
segment values
� Setup read/write privileges
Data Access Sets
Ledger
Legal Entities(BSVs)
US Corporate Ledger ($)
US East(01)
US West(02)
US South(03)
Access Level Read Only
• View Journals• View Balances• View Reports
Read/Write
• Create/Post Journals• Update Balances• Run Reports
Data Access Sets
Ledger
Legal Entities(BSVs)
Access Level
US Corporate Ledger ($)
US East(01)
US West(02)
US South(03)
Read/Write to Full Ledger
• Create/Post Journals• Update Balances• Run Reports
• View Journals• View Balances• View Reports
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Define Data Access Set
Setup : Financials : Data Access Sets
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Definition Access Sets
� Control access to setup/reference independently of data
security
� Enable setup sharing across ledgers
and ledger sets
� Enable setup autonomy within multi-legal entity ledgers
� Set up view, modify, and usage privileges
Definition Access Sets
Definition Access Sets
Securable Definitions using Definition Access Sets
• Accounting Calendars
• AutoAllocations
• AutoPost Criteria Sets
• AutoReversal Criteria Sets
• Budget Formulas
• Budget Organizations
• Chart of Accounts Mappings
• Consolidation Definitions
• Consolidation Sets
• Elimination Sets
• FSG Reports and
components
• MassAllocations
• MassBudgets
• Rate Types
• Recurring Journals
• Revaluations
• Transaction Calendars
Definition Access Sets
Control Access to Definitions
UseUse ViewView ModifyModify
GL Clerk Controller
Rent Allocation
Recurring Rent
Rent Allocation
Recurring Rent
Balance Sheet
Income Stmt
PrivilegesPrivileges
Setup Definition Access Set
Setup Definition Access Set
Setup Definition Access Set
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Business Benefits
Business Benefits
� Support for multiple accounting representations
� Primary Ledger, Secondary Ledgers
� Cross/multiple-ledger operations and reporting
� Ledger Set
� Data and definitions that can be shared and secured
� Data Access Set
� Definition Access Set
Many ledgers to maintain
Changing responsibilities
Difficult to share data and setup information
Cannot perform processes across ledgers
Time-consuming open/close process
Difficult reporting
Modeling Entities with Ledgers
Pros Cons
Each legal entity is a separate
ledger
Data is secure
Easy to secure definitions;
Reports and Mass Allocations
Cannot share setup and data across currency boundary
No data security
Cannot secure definitions, such as FSG Reports and Mass Allocations
Implicit mapping of LE’s with BSV
… with Balancing Segment Values
Pros Cons
Fewer ledgers to maintain
No changing responsibilities
Share setup information
Perform processes across legal
entities
Easy reporting
Consolidated information
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Upgrade
Upgrade
• Sets of Books
• Global Accounting Engine
• AX Posting Sets of Books
• Global Intercompany System
(GIS)
• GL Intercompany Accounts
• Translated Currency
• Multiple Reporting Currencies
• MRC Primary Set of Books
• MRC Reporting Set of Books
• Thin MRC Reporting Book
• Full MRC Reporting Book
• Translated Balance
• Ledgers
• Subledger Accounting
• Secondary Ledgers
• Advanced Global
Intercompany System (AGIS)
• Intracompany Balancing
• Balance level RCs
• Reporting Currencies (RCs)
• Primary Ledger
• Reporting Currency
• Journal level RC
• Subledger level RC
• Balance Level RC
Release 11i Release 12
Thank You