Oracle 12i - How to create accounting and transfer JE's to GL using SLA

I. Create Accounting Program:

The Create Accounting program processes eligible accounting events to create subledger journal entries. To create the subledger journal entries, the Create Accounting program applies application accounting definitions that are created in the Accounting Methods Builder (AMB).

The Create Accounting program:
•Validates and creates subledger journal entries
•Optionally transfers the journal entries to GL
•Optionally posts the journal entries in GL
•Generates the Subledger Accounting Program Report, which documents the results of the Create Accounting program

Draft Accounting:
When you select draft accounting, Subledger Accounting creates the relevant journal entries in draft mode. Draft entries are not posted to General Ledger. You can review the resulting entries, update the transactions, or update the accounting rules. Any changes will be reflected when the transaction is processed again for accounting.

Online Accounting (Final):
Final entries are ready to be transferred to General Ledger and cannot be modified. The transactions are considered as processed for accounting. Any changes to the rules will not impact final entries.

Straight-Through Accounting (Final - Post):
If you select Final Post, Subledger Accounting posts the journal entries all the way through to General Ledger. This means that you can update GL balances straight from the invoice entry (or any other transaction entry) window.

Create Accounting Program:
The Create Accounting program creates subledger journal entries. In general, the parameters described in the table above determine which accounting events are processed.
Navigation Paths (example Payables)
Payables: Other > Requests > Run
Receivables: View > Requests (B) Submit a New Request

Paramaters:

1. Ledger - Required; limits accounting events selected for processing to those of a particular ledger. This program is run for primary ledgers or valuation method enabled secondary ledgers. Any reporting currency or secondary ledger associated with the selected primary ledger is also processed; i.e. entries are generated for the selected primary as well as reporting currencies and non-valuation method secondaries.

2. Process Category - Optional; restricts the events selected for accounting to a particular process category. For example, Invoices.

3. End Date - Required; end date for the Create Accounting program; processes only those events with event dates on or before the end date

4. Mode (Draft/Final) - Required; determines whether the subledger journal entries are created in Draft or Final mode

5. Errors Only (Yes/No) - Required; limits the creation of accounting to those events for which accounting has previously failed

6. Report (Summary/Detail/No Report) - Required; determines whether to generate a report showing the results of the Subledger Accounting program in summary or detail format

7. Transfer to General Ledger (Yes/No) - Required if Mode is set to Final; determines whether to transfer the subledger journal entries to General Ledger

8. Post in General Ledger (Yes/No) - Required if Mode is set to Final; determines whether to post subledger journal entries in General Ledger

9. General Ledger Batch Name - Optional; user-entered batch name that appears on the transferred General Ledger subledger journal entries. Transfer to GL option must be set to Yes.

10. Include User Transaction Identifiers (Yes/No) - Required; controls whether the report displays user identifiers' names and values.


Create Accounting Program:
The Create Accounting program generates one or more accounting programs depending on the volume to be processed. The Subledger Accounting Program report is generated by the Create Accounting program and documents the results of the Create Accounting program. It lists the following:
•Successful events and the subledger journal entries created for those events
•Errors for failed events
You can run the report in summary, detail, or no report mode which are described as follows:
•Summary mode provides a summary of events processed and detailed information about their errors.
•Detail mode provides details of subledger journal entries generated from the processing of completed events and a detailed error report.
•No report mode will show an error count without actually generating the report.

II. Transfer Journal Entries to GL Program:

The Transfer Journal Entries to GL program enables you to transfer any eligible journal entries to General Ledger, including those from previous runs that have not yet been transferred to General Ledger.

Note: This program is used if you run accounting online in Final mode (not Final Post) or if you run the Create Accounting program and set the Transfer to GL parameter to No.

The only reason you would want to run the Create Accounting program and set the Transfer to GL parameter to No is if you want to run accounting at different intervals than the GL transfer, for example, you may run accounting every hour but only transfer to GL nightly.

The Transfer Journal Entries to GL program consists of a subset of parameters used in the Create Accounting program as listed below:
–Ledger
–Process Category
–End Date
–Post in General Ledger
–General Ledger Batch Name

III. Oracle Subledger Accounting Program Report:

The Subledger Accounting Program Report is generated by the Create Accounting program and lists the following:
•Successful events and the subledger journal entries created for those events
•Errors for failed events

You can run the report in summary or detail mode as follows:
•Summary mode provides a summary of events processed and detailed information about any errors.
•Detail mode provides details of subledger journal entries generated from the processing of completed events and a detailed error report.

IV. Transfer Journal Entries to GL Report:

The Transfer Journal Entries to GL report is generated by the Transfer Journal Entries to GL program and lists the following:
•Transfer to GL Summary
•Errors

Setting Profile Options:
The profile options listed above relate to data access and security and impact how accounting is generated through SLA in R12.

1. SLA: Enable Subledger Transaction Security in GL
•Use this profile option to combine subledger transactions security with data access security for General Ledger responsibilities when drilling down to multi-organization enabled subledger application. Transaction security in the respective subledger application is always applied when drilling down from subledger transactions to subledger journal entries.

2. SLA: Enable Data Access Security in Subledger
•This profile option determines whether the General Ledger Access Set security mechanism is applied for a subledger application responsibility when viewing, reporting, or creating subledger journal entries associated with a given ledger. The General Ledger Access Set security mechanism is always applied for responsibilities associated with the General Ledger application.
•The profile option enables you to combine data access security with subledger transaction security and therefore control access to subledger journal entries depending on the ledger to which they belong. For example, you can implement a Multi-Org Security Profile that allows you to create Oracle Receivables Invoices for two different operating units each associated with different ledgers but restrict drill-down from the subledger transaction to the associated subledger journal entry based upon the destination ledger contained in the Access Set.

3. SLA: Additional Data Access Set
•The SLA: Additional Data Access Set profile option, in conjunction with the GL: Data Access Set profile option, controls which ledgers and balancing or management segment values you can access when logging onto a responsibility. If SLA: Enable Data Access Security in Subledgers is enabled for the responsibility, you have access only to the ledgers and balancing or management segment values included in the data access sets assigned to the SLA: Additional Data Access Set and GL: Data Access Set profile options.

4. SLA: Allow Reports Journal Source Override
•This profile option applies only to the following reports:
-Open Account Balances Listing
-Third Party Balances Report
•Enable this option to change the Journal Source parameter during report submission. If the option is set to No, then you cannot change the value defaulted during report submission.
For example:
•Should the general ledger data access set security be enforced when generating accounting? For example, should journal entries be created if the user does not have ledger clearance even if they may have multiorg access to the operating unit?
•Should the transaction security model be applied when drilling down from GL? For example, should the user be allowed to inquire on journal entries of certain operating units if they do not have MO access, but have ledger clearance?
•If there are secondary ledgers and data access set security is enforced in the subledger module, then an additional data access set needs to be assigned to the user to enable access to the secondary ledger.
•Should the user be able to run certain reports across data from multiple subledger applications?

Self Assessed Tax (perviously Use tax) in Oracle Payables 12i

Self-Assed Tax :
Self Assessed tax differs from regular taxes in one way: as a purchaser, you are responsible for reporting and paying the tax and the supplier is not.
This was also known as USE TAX in previous releases.
For example: You receive an invoice for $1000 which is due to be paid to the supplier. Tax A for 10% was not charged on the invoice however, as the purchaser, you recognize that you are responsible to pay tax A. You would self-assess Tax A for the $100 and include it in your filings to the corresponding tax authority.

Features:
•The flexibility to have self assessed tax automatically assessed (based on tax setup) or to manually mark the calculated tax as self assessed during invoice entry.
•An ability to have recoverable and non-recoverable portions of self assessed tax amounts based on your invoice details.
•The ability to report and account detailed recoverable and non-recoverable self assessed tax AND the corresponding Self Assessed Tax Liabilities when the transaction is accounted.

Benefits:
Improved Fiscal Discipline
•Automatic reporting and accrual helps maintain an audit trail for the tax amounts and the invoices they tie to.
•Separate liability accounts for self assessed taxes translate to more granular and accurate accounting.
Improved Operational Excellence
•By automating previously manual processes and providing functionality available during invoice entry, the propensity for human error or delayed information is reduced.

Self Assessed Tax Predetermined Process:
•During Invoice Entry, Validation, and Import, Payables gathers information known as “tax drivers’ entered on the invoice header and lines and passes that information to the new E-Business Tax module.
•Based on these tax drivers and additional information derived by E-Business Tax such as the supplier’s party tax profile and buyer’s and supplier’s tax registrations, the engine determines if any self assessed tax is applicable to the invoice.
•The self assessed tax will be passed back to Payables along with the recoverable and non-recoverable tax amounts and the General Ledger Accounts for the recoverable tax and self assessed liability.
•Payables displays the self assessed tax amount in a column on the Invoice header in the Invoice Workbench. Payables will also derive the accounts for the non-recoverable portion of the self assessed tax then store all accounts to be used later when the invoice is accounted.
•When the Invoice is Accounted, the self assessed tax and corresponding self assessed tax liabilities will be accounted along with the rest of the invoice.

Self Assessed Tax Manual Determination Process:
•This slide illustrates the process for an invoice where the calculated tax returned by the E-Business Tax engine is expected to be paid to the supplier and the Payables’ user updates the it as Self Assessed instead.
•Just like the first example, Payables gathers tax drivers entered on the invoice header and lines and passes that information to the E-Business Tax module.
•Based on these tax drivers and additional information derived by E-Business Tax, the engine calculates the tax that is expected to be paid to the supplier (in other words: Non-self assessed taxes)

Self Assessed Tax: Predetermined Set Up – First Party, Party Tax Profile:
To enable the application to automatically assess self assessed taxes for the First Party or for certain Third Party Suppliers, you need to first set up the Party Tax Profile. The Party Tax Profile is party specific, tax related information that can be associated to 1st and 3rd parties. It includes information such as defaults, tax registrations, classifications and tax reporting codes.
Using the Tax Managers responsibility, navigate to the Parties, Party Tax Profiles page. Search based on the Party Type of First Party Legal Establishment and the desired party name.
You have the flexibility to configure First Party Establishments for Self Assessed Taxes at the following levels based on your needs:
•Registration, Regime
•Registration, Regime, Tax
•Registration, Regime, Tax, Tax Jurisdiction
•From the Tax Summary Window, the Payables user marks the tax as self assessed. E-Business Tax updates their records and returns the tax details to Payables.
•Payables stores the GL Accounts, displays the self assessed tax amount in a column on the Invoice header and the validated invoice is ready for accounting.

Self Assessed Tax: Predetermined Set Up – First Party, Party Tax Profile:

•Enable Self Assessment on the Party Tax Profiles tab
•By checking the Set for Self Assessment/Reverse Charge option at a particular level, E-Business Tax returns applicable taxes for supplier invoices that fall within the level
–For example, if you enable this option at the Registration – Regime level, all invoices to be taxed within that regime will be considered Self Assessed tax

You can also set up a particular supplier’s Party Tax Profile by doing either of the following:
•Use the Tax Managers responsibility to query a Third Party
•Navigate to the Tax Details page from the Supplier (Entry) pages from the Payables Responsibility

Implementation Considerations:
E-Business Tax is a common module available with Oracle Financial Applications.
•The E-Business Tax engine is responsible for calculating tax amounts applicable to invoices.
•It also assists in automatically identifying taxes as self assessed and allows setting options for manual determination.
Subledger Accounting is also a common module available with Oracle Financial Applications.
•Subledger Accounting is not specific to this feature but a general tool to configure accounting entries and to provide accounting reports to meet your needs.

Whats new for Fixed Assets in 12i

I. Subledger Accounting Architecture:

•Oracle Assets is fully integrated with SLA, which is a common accounting platform for Sub Ledgers
•You can use the seeded Account Derivation definitions or modify them as required
•SLA supports Account Generator functionality for existing Asset Books
•Supports new SLA Accounting report and online account inquiry

Benefits:
The flexibility of the accounting rule setup allows meeting different requirements in different legislative, geographic or industry contexts within a single instance. Assuming operations in multiple countries, each with its own legal requirements and accounting standards, you are able to define a setup to meet each of the requirements. SLA allows for multiple accounting requirements for a single transaction or business event.

The accounting data that is generated is viewable and provides full auditability.

Subledger Accounting Process:
The process is executed as follows:
•Enter transactions in Oracle Assets
•Run the Create Accounting Program to process accounting.
•Inquire and drilldown from SLA Pages

II. Enhanced Mass Additions for Legacy Conversions:

• Many attributes have been added to the FA MASSADDITIONS interface table, including:
–Asset life
–Depreciation method
–Prorate convention
–Bonus rule Ceiling name
–Depreciation limit

• Oracle Web Applications Desktop Integrator (Web ADI) has been enhanced to support the following new columns:
–Depreciation Method
–Life in Months
–Basic Rate
–Adjusted Rate
–Prorate Convention
–Bonus Rule
–Depreciation Limit Type

Enhanced Mass Additions for Legacy Conversions Benefits:
You can use the mass additions process to convert data from a previous asset system. Instead of loading the asset information into multiple Oracle Assets tables, load it into the FA_MASS_ADDITIONS table. The Post Mass Additions process can then be used to move the asset information from the table to Oracle Assets. After placing your data in this table, you run the Post Mass Additions program to perform the data import.

III. Automatic Preparation of Mass Additions:

•Consist 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, and others

Benefits:
The major benefits of this feature are that you can:
•Avoid manual intervention during the Mass Additions prepare process
•Avoid customization and use public APIs to effect custom business logic

To process mass addition lines:
1.Interface Mass Additions Lines from Accounts Payable or any other system
2.Run the Prepare Mass Additions Program
3.Optionally verify Mass Additions data
4.Post Mass Additions

Automatic Preparation of Mass Additions Setup Quickcodes
Set up the Rules to Prepare Mass Additions in Quickcodes:
•Use Default: The Asset Category is derived based on the Asset Clearing Account if there is a one to one match in the Asset Category setup. The Expense account is derived based on the Clearing Account by replacing the natural account segment from the Asset Category.
•Use Custom: The Prepare Mass Additions program will use the custom logic coded in the Public API
•Use Custom Energy: Energy industry specific custom rule.

IV. Flexible Reporting Using XML Publisher:

•Major Asset Transaction reports have been modified to support XML publisher
•You can customize report output by modifying seeded templates or by using new templates

XML reporting is available for the following asset reports:

•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

Set up Procedure:
1.Query up the concurrent program as system administrator
2.Change the output format to XML
3.Once the output is flagged as XML, submit concurrent request


V. Automatic Depreciation Rollback:
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, you can submit depreciation for the entire book prior to closing the period. If it becomes necessary to process financial adjustments on one or more assets, you 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 transactions to be processed normally. The 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.

Benefits:

1. It is no longer required to run depreciation rollback program manually.
2. Depreciation rollback is executed only on select assets as required and not on the entire Asset Book, thereby enhancing performance of the program.

12i Cash Management new features - PART 1

I. Bank Account Balances and Interest Calculations:

In prior releases, bank account balances were only available as a part of the bank account statement. The bank account interest calculation was only available for bank accounts set up in Treasury. In Release 12, the functionality to keep track of the multiple bank account balance types and calculate accrued interest is available to all internal bank accounts set up in the centralized bank account model.

Not only can you enter the balances manually, but also you can import them automatically at the same time when the bank statement is imported. In addition to the actual historic balances, you can keep track of the projected balances. Such balances can be entered manually or copied over from the Cash Position. You can then create reports that will compare the actual balances versus projected, and you can accomplish it in either an onscreen report or via XML Publisher. Finally, to simplify the bank account interest calculation, you can create reusable interest rate schedules that will contain the interest rates and other interest calculation parameters. Interest calculation features will work not only for stand-alone bank accounts but also for the notional cash pools as well.

Bank Account Balances and Interest Calculations - Benefits:
The new bank account model allows you to view bank account balances independent of the bank statement, calculate accumulated interest on the fly, and create customized balance reports.

Bank Account Balances and Interest Calculations Maintenance:
Once you have defined your bank accounts in the centralized bank account model, query them in the bank account balance page and manage historical or projected amounts.

Bank Account Balances and Interest Calculations Setup:
To obtain a balance report, create a report layout or a view and generate a report based on that. To calculate interest on the bank account balance, create the interest rate schedules, tie them to the bank accounts and use the interest calculator page to view the accumulated interest.

II. Bank Account Transfers:

In Release 12, you are able to create bank account transfers in Cash Management. The transfers can be initiated, approved, settled and accounted for. The settlement is done through the Payments application, while the accounting is done though the Subledger Accounting engine.

Bank Account Transfers Description:
Bank Account Transfers can be created manually by the user in the system. In addition, if there are any physical cash pools defined in the system, the transfers can be created automatically when the cash leveling process is run or when a bank statement with ZBA sweep lines is processed.

With manual transfers, you have the option of creating and using a payment template. The template will default the transfer information, such as the source and destination bank accounts, currency, and payment method, and can be used in the same fashion as a repetitive or semi-repetitive wire template created by your bank.

In cases when the settlement of the bank account transfer does not have to be initiated by the system (for example, for ZBA bank account transfers that the bank processes on its own), there is an option to exclude such a transfer from the settlement process and only create the accounting entries.

Finally, the UMX security model lets you define who can create bank account transfers for which legal entities. The settlement authorization function is also separate from the transfer creation, so you can implement the separation of duties for bank account transfer management.

Bank Account Transfers - Benefits:
The bank account transfer functionality enriches the Cash Management functionality so that you could take action on the projected closing balances calculated by the system. The seamless integration with the Payments application allows you to send payment instructions to the bank in a variety of payment formats and the integration with the Subledger Accounting allows you to use flexible journal creation rules.

Bank Account Transfers Process:
•Responsibility: Cash Management
•Navigation: Cash Management > Bank Account Transfers
Once the setup is in place, you can start creating the bank account transfer. If the system parameter requires authorization, the bank account transfer must be authorized before it is available for settlement or journal creation. Otherwise, you can proceed to settle or journalize the bank account transfer immediately after creation and validation.

The Payments application formats your payment request and sends it to the bank. Any exceptions in the payment process are communicated back in the form of an error status. If settlement of the bank account transfer errors out, you can see the reason so that the cause of the error can be rectified and the bank account transfer recreated. If the payment is processed without any exception, you see a successful payment status returned.

The subledger accounting process creates journal entries according to your setup and you can drill down to view these journal entries.

Bank Account Transfers – Dependencies and Interactions:
The bank account transfer feature depends on Payments application in cases where the settlement of the bank account transfers is required. There is also a dependency on the Intercompany setup when funds are transferred between different legal entities. Finally, all of the accounting activity for bank account transfers happens in the Subledger Accounting framework.

Bank Account Transfers Setup:
•Responsibility: Cash Management
•Navigation: Setup:System Parameters > (T) Cash Management Transactions
If you are using the cash leveling or ZBA features, the setup starts with the new system profile. Then, optionally, you can set up Transaction Subtypes and Payment Templates for bank account transfers. The Payment Templates are required if you intend to send the payment instructions to the bank to process the bank account transfer. The Transaction Subtypes are optional and can be used for reporting purposes.

Bank Account Transfers Setup – Set System Profile:
The new system profile option CE: Bank Account Transfers defines where the cash transfers will be created as a result of the cash pool activity. If you choose Cash Management, then the cash transfers created by the cash leveling or ZBA sweep activity are created in Cash Management using the Bank Account Transfer framework. If you choose Treasury, then these cash transfers are created in Treasury using Inter-Account Transfers (if both bank accounts belong to the same legal entity) or Intercompany Funding transactions (if bank accounts belong to different legal entities). Before Release 12, Bank Account Transfers could only be created in Treasury. This functionality is preserved but now you have a choice.

III. Subledger Accounting:

Subledger Accounting provides a common flexible framework for creating journal entries for Bank Account Transfers and Bank Statement Cash Flows in Cash Management. Prior to Release 12, Cash Management produced journal entries for bank statement activity based on simple rules and sent them to the General Ledger interface. In Release 12, in addition to the bank statement activity, a new source of accounting entries is available – bank account transfers – and the rules for journal entry creation are more flexible and sophisticated. Finally, you can now view all the journal entries produced by Cash Management events in Cash Management.

Subledger Accounting for Cash Management:
In Cash Management Release 12, bank account transfers and bank statement cash flows are the two objects that can produce accounting events. Once the events are created and the accounting program is run, the journal entry setup and the accounting configurations are referenced to produce journal entries. The journal entries are then transferred to GL. GL has visibility into the source transactions and Cash Management users can drill down from the transaction level to the journal entry details.

Subledger Accounting - Benefits:
The Subledger Accounting feature allows multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements. In addition, with subledger accounting you retain the most granular level of detail in the journal entries, with different summarization options in the General Ledger, allowing full audit and reconciliation

Subledger Accounting Key Concepts :
Here are some key subledger accounting concepts:
•Event model is defined in SLA for each subledger represents the transaction/document types and the lifecycle of each transaction:
-Event class classifies transaction types
-Event type defines possible actions on each event class with possible accounting significance.

The journal creation rules are defined per event class/event type. In Cash Management, there are two event classes: Bank Account Transfer and Bank Statement Cash Flow. An accounting event for a Bank Account Transfer, for example, would be the creation or cancellation of a bank account transfer. So, any time a bank account transfer is created, an accounting event is created as well. Based on the rule setup, there may or may not be a resulting journal entry. You may set up rules to generate journal entries for some events, but not for others.

Transaction object and sources are the data model for each subledger that contains the transaction attributes/information made available to be used during journal rule setup and journal entry generation.

R12 Financials Overview and new features at a glance (PART 1)

Why R12:

Release 12 is defined as “The Global Business Release.” Global is not just a geographic perspective, but also a comprehensive perspective; release 12 functionality spans across both industries and business functions.
•Flexible, centralized, global accounting structure
•300+ enhancements to best practice business processes
•Comprehensive governance, risk and compliance platform
•Truly integrated performance management
•Real-time profitability analysis
•Unified financial and operational analytic applications
•Integration with core industry applications
•Self-service report formats and publicationSuperior ownership experience

New architecture and benefits:

The major components of the new architecture include:
•Multi-Org Access Control
•Ledger and Ledger Sets
•Subledger Accounting
•Tax Engine
•Intercompany
•Bank Model

Benefits of the new architecture include:
•Maintain 1 Ledger with 1 OU for each Company (LE)
-Get privacy for each company’s data
-Manage each company’s national and local compliance
•Combine many companies’ ledgers in a set
-Share GL services and workload
-Get combined data
•Use MOAC to enable access to many OUs
-Process in and report across many Companies’ Operating Units


MOAC: Multi-Org Access Control:
MOAC provides role based access to Operating Units, and allows you to perform multiple tasks across operating units without changing responsibilities.


Subledger Accounting:
Subledger accounting provides centralized rules and a common repository, and global control of your accounts. Features include:
•Accounting Rules
-SarBox & 8th Dir.
-User Editable
•Subledger Daybooks (Journals)
•Subledger Balancing
•Reports, inquiries, open items, et cetera
•Multiple Representations
•Common Posting to GL Ledgers
•Real time or Periodic

Benefits of subledger accounting are:
•Faster, Easier Reconciliation
•Corporate Rules = Accounting Standardization
•Local Rules = Improved Local Compliance
•Automate “Apples to Apples” Adjustments
•Improved Audit- ability
•Improved Internal Control

Ledger:

•One Repository of Financial Truth
•Implements the 4 C’s:
–Chart of Accounts
–Currency
–Calendar
–Accounting Convention
•Example:
–The balance on Creditors (COA)
–is 4.2M Eur (Currency)
–on March 31, 2006 (Calendar)
–according to IAS/IFRS definitions (Accounting Convention)


Ledger Sets:
Ledger sets provide global information at a glance. Ledger sets share a chart of accounts and a calendar. The key benefits to many Ledgers in one set are:
•Decision-driving business information always available
•Simpler processing and General Ledger management
•Data and definitions that can be shared and secured


Ledger Architecture:
Typical Ledger Sets:
•All IAS/IFRS or US GAAP ledgers
•26 Subs in 1 country
•35 countries in 1 region


Legal Organization:
Legal Entities (Les) such as Parent companies, own or control subsidiaries. There are no group entities
•LEs pay the taxes and therefore need tax registrations
•Trade between LEs needs intercompany
•LEs own the money and bank accounts
•LEs file the accounts and take care of accounting
•LEs comply with whatever needs compliance: “legal” in LE


Enhanced Legal Support:
•Did not replace GRE/LE - employer
•Added TCA parties for the Authorities
•Added a Legal Entity Configurator
•Introduced the following new terms:
-Jurisdiction: A legislative category and territory, has legal rules
-Legal Authority: Legal body who enforces legislation, collects fees / taxes, etc
-Legal Function: Functions that companies are required to perform (e.g. produce yearly report, pay taxes, etc.)
-Legal Associations: Mapping companies to Ledgers, BSVs, OUs and other system entities


Examples of using Legal Entities:
•Accounting Setup Manager: Assign books, bookkeeping rules and currency management to your registered companies
•EBusiness Tax: Have your registered companies calculate, file, and pay the transaction taxes they owe
•Intercompany: Do business between and across your registered companies with full legal documentation
•Bank Model: Have your registered companies use their money to pay their bills, etc.