Anand Final Sec Ledgers

Secondary Ledgers
Unleashing Its Power!!!
Presented By:
Anshu Anand, Principal Software Engineer, Oracle GCS

Sivaranganath Chittapragada, Principal Software Engineer, Oracle GCS
Sangam 2014 : November 07
Copyright 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential Internal/Restricted/Highly Restricted
Agenda
Global Reporting : Pre-R12 Options
Secondary Ledgers : The Solution Offered by Release 12.
Kinds of Secondary Ledger Conversions.
Adding Secondary Ledger to existing Primary : Balance Initiation.
Tips for Easy Maintenance.
Things to Know Before Considering Secondary Ledgers.
Pointers to Reconcile
Q&A
Scope
Focus on Functionality and Business Usage. Detailed setups are kept out of Scope for
now. The reference documents for setups are available in the Oracle Knowledge Base.
The examples referred are for indicative purposes only. Their actual usage may
depend on the holistic requirement of an organization.
Reference to Accounting Conventions. The details and their accounting are kept out
of the scope of this presentation.
Corporate Global Presence

Varied Statutory Needs.
Interdepartmental
Sales
Low priced Asset
Purchased
Company : ABC Corp Ltd

Head Office : United States
Currency : USD
Asset or
Expense ?
Depreciation
Useful Life of Asset or

Fixed Percentage

Country Office : Singapore Country Office : India
Currency : SGD
Currency : INR
Multiple Reporting Currencies (MRC)

Reporting Book 1
Chart of Accounts : Acc

Currency : AUD
Pre R12 Options
Primary Book

Currency : USD
Reporting Book2

Currency : SGD
Statutory Global Reporting

Reporting Book3

Currency : INR
Consolidation
Meeting Statutory Requirements for Global Presence!

Possible Solutions Offered by R12 Application
Secondary Ledgers Defined

Represents Primary Ledger data that differs in one or more of the following
Chart of Accounts
Currency
Sub Ledger Accounting Method(SLAM)
Calendar
Used for supplementary purposes, such as Consolidation, Statutory reporting or Adjustments

for one or more legal entities within the same accounting setup.
Optional
Kinds of Secondary
Ledger Conversions
Journal Level Secondary Ledger.
SubLedger Level Secondary Ledger.
Balance Level Secondary Ledger.
Adjustment Level Secondary Ledger.
10
Journal Level Secondary Ledger

Data Flow
Sub Ledger
Transactions
Transfer to
General Ledger
Journal in
Primary
Posting
Journal Replicated
in Secondary
Manual
Journals
11
Comes across as a powerful tool when companies require the transactions/Journal details to be
available in secondary ledger.
Drilldown facility.
Enable the Required Sources for Replication
General Ledger Responsibility -> Setup -> Accounting Setup Manager
Journal Conversion Rules
Allows Manual Adjustments too.
Copyright 2014 Oracle and/or its affiliates. All rights reserved. |
Corporate Consolidated Ledger
Primary
Ledger
Country Office : India
India Secondary
Ledger (Calendar:
Apr Mar)
India Ledger
(INR)
Statutory
Reporting:
Apr to Mar
Business Case 1:
Corporate Head Office : USA
(USD)
Secondary
Ledger
Corporate
Reporting:
Jan to Dec
US
Ledger(USD)
Legal
Entity
India
IndiaLEs
LEs
Operating
Units
India OUs
US OU
Inventory
Orgs
India Org
US Org
US LE
Different Calendar Needs for

Statutory and Corporate Reporting.
If a legal entity must perform
corporate and statutory reporting,
one can use the primary ledger to
satisfy corporate reporting
requirements and then use a
secondary ledger to satisfy
statutory reporting requirements.
13
Kinds of Secondary
Ledger Conversions
Subledger Level Secondary Ledger.
14
Data Flow
Manual
Journals
Sub Module
Transactions
Transaction
Version1 Primary
Sub Ledger
Ledger
Accounting Journal Import
Method
Secondary
(SLAM)
Transaction Ledger
Version2
Replication
Manual
on Import
Replication
On
Posting
Journals
Oracle Confidential Internal/Restricted/

15
Primary Ledger:
Chart of Accounts : A
Currency : USD
( SLAM : United States
Federal )
SLAM:
United States
Federal
Sub Ledger
Entries
Secondary Ledger:
SLAM:
Standard Accrual
Chart of Accounts : B
Currency : SGD
( SLAM : Standard Accrual)
Secondary Ledger:
SLAM:
Standard Cash
Chart of Accounts : B
Currency : INR
( SLAM : Standard Cash)
16
Most transparent form of Conversion.

SubLedger transfers data to both Primary and Secondary at the same time
Virtually allows a Company to live in two different accounting representations.
Complete drilldown available from Secondary Ledger to the Submodule.
Apart from SubLedger transferred entries, GL Posting also replicates data into Secondary to allow
replication of manual journals.
SubLedger Sources should be disabled for replication Upon Posting to avoid duplicates.
17
Primary Ledger
Receivables a/c.Debit
Deferred Revenue a/c Credit
(For Corporate
Reporting)
International Accounting Standards

(IAS)
Revenue is recognized only when
the customer accepts the product.
Issue a
Sales
Invoice
Country Operations
Secondary Ledger
Receivables a/c.Debit
Revenue a/c Credit
(For Statutory/Local
Reporting)
Business Case 2:
Corporate Head Office : USA
Country Office : Switzerland
Different Accounting
Treatment needed for same
transaction : Sales Account
Local tax regulation requires that
the Sales Account" reflects all
billingbut..Corporate GAAP, (for
example IAS/IFRS) requires that
revenue is recognized only when
the customer accepts the product.
Local Laws of Reporting

Sales Account reflects all Billing
18
Kinds of Secondary
Ledger Conversions
19
Data Flow
SubLedger
Transactions
Transfer to
General Ledger
Journal in
Primary
CONSOLIDATION
Only Balances
Moved To
Secondary
Manual
Journals
20
Balance Level Secondary Ledger Cont.

Secondary Ledger maintains only Balances from Primary (and not journals)
Requires Consolidation to transfer balances from Primary to Secondary.
Ideal when no Adjustments are required in Secondary Ledger.
Provides drilldown from Account Inquiry and Drilldown.
Does not provide real time data like Journal Level Conversion.
Easy to maintain and Reconcile.
21
Kinds of Secondary
Ledger Conversions
22
Data Flow
Create FSG Report
Primary
Ledger
Adjustments
Only Ledger
23
Adjustment Level Secondary Ledger Cont.

Adjustment ledger must share same Chart Of
Accounts, Calendar/Period Type combination
and Currency associated to the Primary
Ledger
Account
Sales
Suggested to Include the Adjustment leader

with the same Ledger Set as the Primary
Ledger to get complete picture while running
Reports.
Primary
Ledger
(INR)
5,00,000
Adjustments
(Secondary)
(INR)
6,000
Total
(INR)
5,06,000
Short Term
Investments
10,000
Other Receivables
76,000
2,000
78,000
1,00,000
600
1,00,600
CIP Cost
Accrued Payroll
10,000
69,000
69,000
24
Subledger
Summarizing
the Concept
Journal
Balances
Adjustments
Only
Subledger, Journals &

Balances
GL Journals & Balances
Balances Only
Enter Manual
Adjustments directly into
Secondary Ledger or set
the SLA rules such that it
transfers only
adjustments
Enable Sub ledger Accounting

Method for Primary & Secondary
Ledgers is Mandatory.
Data Conversion depends on the
Journal Conversion Rules and Currency
Translation Options for Secondary
Ledger
.
Ledger
Ledger
The Chart of Accounts, Calendar, and
Currency of a Secondary Ledger are in
sync with that of Primary Ledger.
25
Adding Secondary
Ledger to Existing
Primary
26
To
Initialize Balances for General Ledger
To
Initialize Subledger Events
Consolidation
Web ADI
Concurrent program:SLA Secondary/ALC Ledger Historic Upgrade.

The program performs the following validations:
Applicable for SubLedger Level Conversion Only.
Application Accounting Definition (AAD) of Secondary and Primary Ledgers should be
same.
If the earlier run of the program is incomplete / failed, then the present run should be in
Recovery mode, with the same parameters as the prior run.
Currency conversion rates between Primary Ledgers entered / accounted currency to
Secondary Ledgers functional currency should be defined.
If the Secondary Ledger is of a different chart of accounts, the chart of account
mappings should be defined.
27
But Maintenance of
Secondary Ledgers Is
Very Difficult.
28
Not Really
Secondary Ledgers using same Chart of Accounts,

Calendar and Period Type
29
1. Posting
For Journal and Subledger level conversions
Setup : Post Journals Automatically from Source Ledger'
Requirements : Period Open in Secondary Ledger
Posts in
Secondary1
Post in
Primary
For Balance Level Conversion

Setup : Check Autopost while running Consolidation.
2. Autopost
Allows posting all Unposted Journals at one shot.
Posts in
Secondary2
Journal /Subledger
Conversion
.
3. Document Sequences
Profile: GL_COPY_DOC_SEQ_FROM_PRIMARY
Available through Patch 8509030:R12.GL.B
Oracle Confidential Internal/

30
Journal Reversal
Option 'Synchronize Reversals Between Primary and Secondary
Option 'Replicate Reversals from Primary Ledger'

No
Manual
Yes
AutoReversal
Allows reversal of Multiple Journals at one shot.
Criteria Set based.
Ledger Specific
Functionalities
Budgets
Journal Approval
Journal Line Reconciliation
31
Things to Know while

Considering Secondary
Ledgers
..Do It Right!
32
Average Balances
Journal Line Reconciliation.
Subledger level Reporting Currency cannot be attached to a Secondary ledger.
Selective Assignment of Balancing Segment from Primary to Secondary
'Chart of Accounts Mapping', a Balancing Segment Value of one ledger cannot be mapped to
Non-BSV segment of the other.
1.
2.
3.
4.
Balancing Segment
Cost Center
Natural Account
Future
1. Balancing Segment
2. Natural Account
3. Future
'Adjustment Segment' Vs 'Adjustment Ledger

Re-enable Secondary Ledger
Budgets - Do we need them in Secondary???
Change in SLAM Allowed ????
33
Pointers to
Reconciliation
34
Journal Level
Technical Assistance
Expectations
1. Upon Posting in Primary
All posted Journals from primary are replicated in

Secondary.
Table : GL_JE_HEADERS
Excepting those sources and Categories marked

for non-replication explicitly.
Post the Unposted journals in primary to allow
For replication in Secondary.
2. Identify Sources and Categories excluded for

Replication
Table : GL_JE_INCLUSION_RULES
Both Primary and Secondary are individual ledgers
on their own. Manual Journals created in Secondary only

can be one of the major causes of mismatch in
balances
35
Subledger Level
Run the SLA Diagnostics to identify missing transactions.
How To Avoid and Fix Corruption in Data Transfer from SLA - Negative Ledger_ID, Not
Reached GL, Duplicate in GL (Doc ID 883557.1)
Any Datafix To be run after confirmation from Oracle Support Only***
Can be run for both Primary and Secondary.
Query from Journal Reconciliation to be run to identify manual Journals not replicated.
Ensure All journals are posted in Primary and Secondary before reconciliation.
Document Sequences
36
Balances Level
Post all the journals in Primary before running Consolidation
Suggested to run Consolidation in the Audit mode.
Ensure Journals created in Secondary are Posted.
Run Summary Trail Balance (or Translated Trial Balance) for both ledgers to compare
the Account balances.
For accounts with difference, suggested to run the Account Analysis (180 chars)
report to identify any manual journals created in Secondary causing the difference.
Reports:
Chart of Accounts - Mapping Rules Report
Consolidation Exception Report: Unmapped Subsidiary Accounts
Consolidation Exception Report: Disabled Parent Accounts
37
Safe Harbor Statement

The above material is intended to outline our general product direction. It
is intended for information purposes only, and may not be incorporated
into any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing decision.
The development, release, and timing of any features or functionality
described for Oracles products remains at the sole discretion of Oracle.
38
39
Email Contacts:
anshu.anand@oracle.com
sivaranganath.chittapragada@oracle.com
40

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Secondary Ledgers

Unleashing Its Power!!!

Anshu Anand, Principal Software Engineer, Oracle GCS

Corporate Global Presence

Company : ABC Corp Ltd

Useful Life of Asset or

Company : ABC Corp Ltd

Multiple Reporting Currencies (MRC)

Chart of Accounts : Acc

Pre R12 Options

Chart of Accounts : Acc

Chart of Accounts : Acc

Statutory Global Reporting

Chart of Accounts : Acc

Meeting Statutory Requirements for Global Presence!

Secondary Ledgers Defined

Used for supplementary purposes, such as Consolidation, Statutory reporting or Adjustments

Journal Level Secondary Ledger

Copyright 2014 Oracle and/or its affiliates. All rights reserved. |

Corporate Consolidated Ledger

Country Office : India

Different Calendar Needs for

Copyright 2014 Oracle and/or its affiliates. All rights reserved. |

Oracle Confidential Internal/Restricted/

Most transparent form of Conversion.

International Accounting Standards

Local Laws of Reporting

Balance Level Secondary Ledger Cont.

Adjustment Level Secondary Ledger Cont.

Suggested to Include the Adjustment leader

Subledger, Journals &

GL Journals & Balances

Enable Sub ledger Accounting

Initialize Balances for General Ledger

Initialize Subledger Events

Concurrent program:SLA Secondary/ALC Ledger Historic Upgrade.

Secondary Ledgers using same Chart of Accounts,

For Balance Level Conversion

Oracle Confidential Internal/

Option 'Synchronize Reversals Between Primary and Secondary

Option 'Replicate Reversals from Primary Ledger'

Things to Know while

'Adjustment Segment' Vs 'Adjustment Ledger

1. Upon Posting in Primary

All posted Journals from primary are replicated in

Excepting those sources and Categories marked

2. Identify Sources and Categories excluded for

Both Primary and Secondary are individual ledgers

on their own. Manual Journals created in Secondary only

Safe Harbor Statement

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