1. Key Flex Fields
2. Accounting Setup Manager
3. Primary Ledger
4. MSQ – Management Segment Qualifier
5. Reporting Ledger – MRC
6. Sub ledger
7. Ledger Set
8. Data Access Set
9. Data Definition Set
10. Legal Entity
11. Operating Units
12. Intra company
13. Intercompany balancing rules
14. Open / Close periods
15. Journal Options
16. Sequencing: Accounting & Reporting
New Key Flex Field is added in R12 – GL Ledger Flex Field.
Now we have 3 KFF in GL.
1. Accounting KFF
2. Reporting Attribute KFF
3. GL Ledger FF
· If you have created your “Structure” by using Accounting KFF with the 4 Segments i.e. Company, department, Accounts and Location.
· The same structure will be copied to “GL Ledger FF” by adding one more segment called “Ledger”.
· GL Ledger FF is used for internal purpose.
· We use majorly in: Mass Allocation & FSG.
· In 11i Set of Books is similar to ASM in R12.
· ASM is a centralized place where we can perform several activities.
1. Primary ledger creation
2. Reporting ledger (Multi Reporting currency) setup
3. Secondary Ledger
4. Legal entity creation
5. Operating unit creation
6. Intercompany balancing rules
7. Intra company
ü 11i Set of Books = R12 Primary Ledger
ü In 11i Set of Books determines 3 C’s i.e. Currency, Calendar & Chart of Accounts.
ü 4th C added in R12 i.e. Accounting Method.
ü 4 C’s:
3. Chart of Accounts
4. Accounting Method
ü Accounting method determines which method organization opt for accounting whether Accrual or Cash basis.
ü Ledger is where we record the actual day to day business transactions.
ü Primary Ledger is created in General Ledger responsibility through “ASM”.
ü Reporting Ledger is used for Multi reporting currency purpose.
Ø In 11i we have to perform several steps to define MRC through Set of Books.
Ø We have to create 2 set of books and have to manually choose the SOB as reporting or primary.
Ø We have to manually assign reporting SOB to primary SOB.
Ø Journals transferred to reporting SOB in unposted mode.
Ø Calendar and Chart of accounts should be same.
v Where as in R12 steps are minimized to perform MRC
ü Once you assign reporting currency to Primary Ledger, system will automatically create reporting Ledger
ü And also Reporting Ledger is assigned by system automatically to Primary Ledger.
ü Journals will transfer to Reporting Ledger in Posted mode.
ü To perform MRC in R12 through Reporting Ledger Calendar, Chart of Accounts and Accounting method should be same.
If any C is different apart from Currency:
§ If Chart of accounts, Calendar and Accounting Method is different, we have to use Secondary Ledger concept to perform MRC.
§ For internal management reporting purpose also we can use secondary ledger concept, when we have Accounting Method is different.
· In 11i we create Legal Entity in HRMS Responsibility.
Ø In R12, Legal Entity is created through “ASM” from GL Responsibility.
Ø We can create Legal Entity address also from “ASM”
Ø No need to classify the Legal Entity information.
Ø After creation of Legal Entity the same we assign to Primary Ledger through “ASM”
Ø Then we assign Balancing Segment Values (BSV) (Company) to Legal Entity what are all the companies are maintained under one legal registration.
Ø For AGIS (Advanced Global Intercompany system) purpose also we have to assign Legal Entity to Primary Ledger
· 11i Operating unit is created in “HRMS responsibility” through Organization window.
ü Where as in R12 we can create Operating unit in 2 ways:
1. Through ASM from GL Responsibility
2. “HRMS responsibility” through Organization window
Ø To create OU through ASM, the prerequisites are Business group & Legal Entity.
11i OU assigned to LE R12 OU assigned to Primary Ledger
Ø Sequencing is used to assign gapless numbering for the transactions which are manually entered and also imported from SLA journals.
Ø Sequencing is 2 types:
1. Accounting Sequencing
2. Reporting Sequencing
Ø Accounting Sequence: When you post the journal, number will be assigned to transaction (Manual Journals & SLA Journals)
Ø Reporting Sequencing: Number will be assigned to transactions at the time of closing the period. This is used as a legal compliance for gapless numbering.
Inter Company transactions means:
Transactions between the Companies under the same Legal Entity
Intra Company transactions means:
Transactions between the Companies under the different Legal Entities
This concept is also called as AGIS (Advanced Global Inter Company Systems).
ü Collection of Ledgers is called Ledger Set.
ü We can group the ledgers as a set who’s Calendar and Chart of accounts should be same.
ü In general to access single ledger we will assign “GL Ledger Name” profile option to GL Responsibility.
ü To access Ledger Set we have to assign “Data Access Set” profile option to GL responsibility.
Advantage of Ledger Set:
Ø No need to create several GL responsibilities for each Ledger, we can access multiple ledgers from single responsibility without switching responsibility.
Ø We can open / Close periods at a time for all the ledgers.
Ø We can perform the activities like Revaluation, Translation and consolidation reports from single responsibility for all the ledgers at a time.
In 11i we have to open the periods one by one each period.
In R12, once we open first period, system will ask for the target period.
System will automatically open the periods which are between first period and target period, by running a program.
In 11i we have 5 FFQ, R12 added 6th FFQ i.e. Management FFQ
- Balancing Segment FFQ
2. Cost Center Segment FFQ
- Natural Accounts Segment FFQ
- Inter Company Segment FFQ
- Secondary Tracking Segment FFQ
- Management FFQ
Assignment of FFQ to Segments:
1. Company à Balancing
2. Department à Cost Centre
3. Accounts à Natural Accounts
4. Company à Inter company
5. Secondary tracking FFQ:
v If we assign Secondary tracking segment FFQ to any Segment, that segment also will behave as Balancing Segment.
v In other words, secondary tracking segment FFQ is similar to balancing segment FFQ.
v But we cannot assign Secondary tracking segment FFQ for the segment for which already Intercompany, Balancing and Natural accounts FFQ are assigned.
Management Segment Qualifier:
v MSQ is used in Data Access set for allowing privileges to user other than balancing segment values.
v But we cannot assign Management segment FFQ for the segment for which already Intercompany, Balancing and Natural accounts FFQ are assigned.
Ø It is a kind of security to access data.
Ø Through data access set we can set privileges to user to access the data in 2 modes.
1. Read only
2. Read and write
Ø We can set privileges to access for balancing segment values where we assign balancing segment FFQ.
1. Balancing Segment values (BSV)
3. Ledger Sets
Ø If customer required to give access through data Access Set to other than BSV (for example Location), then we have to assign “management Segment qualifier to that Location.
ü Definition access set is also used to set privileges as a security.
ü Through this we can set privileges or level of permission to users for specific functions.
ü Definition access set is used for only General ledger functions.
ü We can set privileges like:
1. Lines in the invoice
2. Two new invoices
3. Changes in the supplier
4. Changes in the banks
5. TCA (Trading Architecture Community)
6. AP / AR Netting
7. Payment Manager
8. MOAC (Multi Org Access Control)
9. SLA (Sub ledger Accounting)
10. Create Accounting
11. Changes in the invoice work bench
12. Asset Invoices
13. Change in the AP report names
In 11i invoice body contain header and distribution only.
R12 added “Lines” in the invoice body.
We can enter several line items in one invoice and assign distributions to each line separately.
Added two more invoice types in R12.
i) Retain age Release Invoice
ii) Transportation Invoice
Retain age Release invoice; in general we use this invoice more in contracts. Customer will retain some amount from the periodical payment up to the contract get completed for security purpose. And release that retained amount after the completion of contract.
For this purpose we use “Complex PO entry form”. This is an HTML page. We have to match the invoice with this PO.
Transportation Invoice is used in general, where goods purchased from one supplier and the same goods transported by another supplier. To record this transportation separately we use Transportation invoice.
In 11i, Supplier header is Global (master Record) and Supplier site is Local (specific to operating unit).
In R12, if you give access at supplier site level, this will become Global.
Other operating units also can access Supplier site information.
This is a HTML web page called JSP page (Java Screen Page).
We have only one form to create all 3 types of bank accounts (Internal, Supplier and Customer) in 11i.
Here the bank account is Operating unit specific.
In R12 bank accounts are created separate forms for each type of account.
Here bank & bank branch account information can be accessed by all operating units if we give access, which are under same Legal entity.
Legal Entity is owner of the Bank in R12.
Bank and branches are become parties of TCA.
Internal Bank account creation only defined in the banks window.
Whereas Supplier Bank account will be created in Supplier creation window and Customer bank account will be created in Customer creation window.
If the users of different applications need the same data, the same definition we store in common data storage area. This concept is called “Trading community Architecture” (TCA). Such data we called “Party”.
TCA Parties 11i: Legal Entity, Customer
TCA Parties R12: Legal Entity, Customer, Supplier, Bank and bank branches.
In R12, Legal Entity is owner to Bank, hence Bank also become a party of TCA.
Use of TCA is data can be accessed at Global level.
TCA table starts with HZ.
· This concept we called as “Contra” in 11i.
· We can cancel the customer and supplier contra balances for only one party at a time at balances level only.
· We have to add one more functionality called “Contra charging menu” to contra
· Navigation: System Administration à Application à Menu
ü R12 introduced this concept as “AP/AR Netting”.
ü With this we can net off customer and supplier contra balances for several parties at a time at transaction level.
ü Site level netting also possible in R12.
ü System will automatically update the account balances.
ü Payment batch
ü Form based
ü From front end we cannot see the payment details in the Batch
ü Multiple currency payments are not possible.
ü Payment Manager
ü Web page
ü It is a dash board environment. We can create some templates with more options.
ü We can stop the batch payment process at certain point.
ü We can process multiple currency payments.
ü Payments multiple operating units of one legal entity are possible.
ü Payments of multiple operating units under multiple Legal entities possible.
ü In 11i we have to switch responsibility to access other operating unit.
ü Through MOAC concept in R12:
· We can access all operating units without switching one responsibility to other.
· We can grouped different operating units to one “security profile” and then assigned to Responsibility.
ü These are 2 types:
- Security profile (MO: Security Profile & HR: Security Profile)
- Global security profile
ü Through “Global security profile” we can access the operating units though they belong to different business groups.
ü MOAC is used to the applications which works at operating unit level (Example: AP, AR etc.)
1. We can do some modifications in the standard process for sub ledger account transactions.
2. Transaction type is called event class
3. Event type are specific action on the invoice (validation, cancellation etc)
4. Multiple accounting representation can be achieved through SLA
5. Multiple period accounting representation also possible
6. SLA is used to set up derivation rules to pick up the fields for accounting
7. Classification wise liability account, such as: Regular supplier, Tax Authority, Contract Supplier or Employee. If you set derivation rule for supplier classification, system will automatically taking the classification.
8. Accounting Generator is helping SLA to create accounting
9. Reconciliation of month end process is easy
10. As and when create invoices, SLA immediately generate journal entries
11. Detailed drill down of information is possible
ü 11i we use “Payables transfer to General Ledger” program to transfer AP data to GL.
ü R12 to transfer data from AP to GL, program name is “Create Accounting”.
ü We have 3 modes in create accounting program.
iii) Final Post
· Draft: This is only for review purpose. No real entries generated.
· Final: Real entries are generated. Transfer data as un posted based on the
· Final Post: Real Entries are generated; data transferred to GL and posted the
Entries based on the parameters.
ü Data will transfer to GL through SLA, interface tables by default not available.
11i we have separate invoice type for PO Default & Quick Match.
R12 included this concept in the standard invoice itself.
11i to create Asset invoice
We have to choose track as asset from Folder.
We have to give distribution account as “Asset Clearing” or “CIP Clearing”.
R12 no need track as asset, only we have to choose distribution account as “Asset clearing” or “CIP clearing”.
Options in 11i: 2
1. Financial options
2. Payables Options
Options in R12: 4
1. Financial Options
2. Payable options
3. User operating preferences
4. Payable system setups (Global information)
2. Line level Cash Application
3. Refund process automation
4. Revenue recognition
5. Sub ledger accounting
6. Customer screen
7. Late charges
8. AP/AR Netting
9. Balance forward billing
10. Create accounting
11. Collections work bench
If customer paid excess amount, that can be paid back (Refund) to customer or can be keep as on account in customer account.
ü Enter a debit memo for excess amount received
ü Apply the excess amount to debit memo
ü Create Customer as supplier in AP
ü Create one standard invoice in AP for customer
ü Distribution account (Clearing Account) should be same in both debit memo and standard invoice
ü Make payment
ü Refund attributes will get enabled in invoice work bench
ü System will ask for payment method
ü Once you save, system will automatically create customer as supplier
ü Query invoice in AP and make payment
It is a process of recognizing the revenue of a project.
We have to set up Invoice rules & Accounting rules
Invoice rules: To recognize revenue schedules
Accounting rules: for % of revenue (Fixed duration, Variable duration, Daily)
Total cost is booked to Deferred COGS account, if you run a program balance will transferred from deferred COGS to COGS
Customer creation is done through HTML page or web page.
Customer bank account can be created in customer definition.
Late charges / financial charges / Interest charges are specific to operating unit in 11i
Late charges are global and centralized & Fixed amount of interest can be chargeable
This concept is called as “Consolidated billing” in 11i
For credit card or telephone bills, all transactions together billed at one cutoff date, this is called consolidated billing.
This can be generated at customer site level or specific customer account level.
Balance forward billing can be generated Daily, Weekly or Monthly through Bill Presentation Architecture (BPA)