Global Accounting Engine

Oracle R 11.5Global Accounting Engine Education

Rossella Piccirilli Feb 2010

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Learning Objectives

At the end of this session you should be able to:

– Describe the features of Global Accounting Engine

– Describe the business needs

– Discuss the Implementation steps Integration

– Discuss Troubleshooting/Diagnostics

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Agenda

Global Accounting Engine Overview

Global Accounting Engine Demonstration

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Functional Agenda

Detailed Description of Each Feature

– Feature and Key Concepts

– Deep Dive

– Demonstration

– Implementation Considerations

– Troubleshooting/Diagnostics

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Features Summary

Global accounting engine is a tool/module that allows to comply with accounting regulations of specific countries. Some accounting entries are legal in one country but not in other countries.

The Global Accounting Engine was originally developed to meet the business requirements of specific countries like Italy France Spain and Portugal

The Global Accounting Engine is also needed for European foreign subsidiaries as they are required to do reporting in foreign countries.

Each subledger transaction, that requires accounting, is represented by a complete and balanced AX journal entry that is stored in the global accounting engine tables.

The Global Accounting Engine replaces the Transfer to General Ledger program that is used in each subledger application for one subledger and one set of books.

Global Accounting Engine is being replaced in R12 by the SLA Subledger accounting functionality.

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Global Accounting EngineIntegrates with Receivables Payables and Inventory

Payables InvoicePayables InvoicePayables InvoicePayables Invoice

French RulesFrench RulesPlan Plan ComptableComptableFrench French CalendarCalendarEUREUR

SOB Set of BooksSOB Set of Books

AX AX JournalsJournals

AX AX JournalsJournals

DrDr CrCr

• Meet Statutory requirements for the submission of reporting to local authorities

• Corporate Rules = Accounting Standardization

• Local Rules = Improved Local Compliance

• Improved Audit- ability

Some Benefits

• Subledger Daybooks (AX Journals for subledger entries)

• Statutory Reports, inquiries, open items,

• Multiple Representations

• Double posting to set of books

What it is

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Global Accounting Engine General Architecture

TransactionsAX

Event translation and posting to GL

GL Posting

Global Accounting Engine

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Major Features

Multiple Accounting Representations – AX allows Multiple accounting representations and enable corporations to design and implement global accounting policies independently from considerations that apply to subsidiaries operating in other countries, or in highly regulated vertical markets.

Analytical Criteria – Analytical criteria enables users to easily report, inquire and analyze financial and operational data across subledger applications.

Inquiries, Drilldown and Reporting – The Global Accounting Engine Architecture provides detailed subledger accounting reports and inquiries that satisfy local fiscal and business requirements for detailed reconciliation between subledger transactions and General Ledger.

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Key Concepts

Event Model: AX Event Type: for each transaction type, defines possible actions with accounting significance

Synchronous posting: possibility to post journals from subledgers to more than one set of books. The functionality ensures that either journals are posted to all set of books or to none

Accounting drilldown: like for subledger tranfer program it is possible to drilldown inquiry from subledgers to GL and viceversa

Global Accounting Engine provides a process for closing periods that ensures a complete and gapless numbering is generated as required in some countries

Print specific reports that comply with local statutory requirements (Italian Journal Book)

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Key Concepts: Event Types

Event types are seeded data which the Global Accounting Engine uses to classify and translate events into subledger accounting entries.

Event types are predefined in the system and a translation program compiles after you assign a rule set to your set of books and freeze the Subledger Setup window.

Translation schemes are linked to event types and are a component of the rule set that you assigned. The translation schemes tell the Global Accounting Engine how to translate event types into accounting entries.

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Key Concepts: Event Types

Payables events (some samples)

– CASH_ADJUSTED (Modifying or voiding current payments)

– CASH_APPLIED (Creating or applying current payments)

– NON_CASH_ADJUSTED (Adjusting invoices, prepayments, and memos)

Receivables events (some samples)

– NON_CASH_COMPLETE (Getting invoices, debit/credit memos, commitments, or chargebacks entered and completed)

– NON_CASH_UPDATE (Modifying the revenue lines for accounted invoices, debit/credit memos, commitments or chargeback)

– RECEIPT_APPLICATION (Applying, reapplying or deleting applications)

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Key Concepts: Events vs Categories

Predefined events have to be assigned to Journal categories in order to have the correct sequence assignment.

Translation schemes are predefined in the system

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Functional Deep Dive Agenda

Detailed Description of Each Feature

– Feature and Key Concepts

– Deep Dive

– Demonstration

– Implementation Considerations

– Troubleshooting/Diagnostics

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Business Objectives

Respect Operational diversity and statutory accounting policies

Resolve conflicts between corporate and local fiscal requirements for accounting (double posting)

Provide Local Statutory reports to comply with Tax and Statutory regulations

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Business Benefits

Global Accounting Engine main benefit is to provide a particular transactional set of the Oracle Financials which permits to comply with Statutory requirements which else could not be respected

Streamline accounting processing

Provide GL to subledger transaction reconciliation platform by maintaining link between transaction and accounting data

Increase transparency and enable full auditability of the transaction and accounting data through the new data model

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Business Benefits

Information Delivery

Regulatory Reporting

Global Accounting

Engine

Transaction Systems

Oracle Inventory

Oracle Payables

Oracle Receivables

Posting available for multiple set of books

Predefined validations

Full audit trail

Accounting drilldowns

Detailed journal entries

reference information

Consistent balances

On-line inquiries

Analytics

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AX Posting Daily User Interaction

END USER

Enter/validate/approve transaction

END USER

Run AX posting Import into GL/can be automatic

END USER END USER

Post in GL/can be automatic

Financial Options

System Options

AccountingOptions

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Subledger Accounting Deep Dive Agenda

Detailed Description of Each Feature

– Feature and Key Concepts

– Deep Dive

– Demonstration – Global Accounting Engine Payables/Receivables

– Implementation Considerations

– Troubleshooting/Diagnostics

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Demo: Global Accounting Engine

Payables

1. Enter an invoice and validate it

2. AX posting to GL

3. View AX journal entry and t-account

4. Query entry in GL and drill back to AX entry and to invoice

5. Main reports

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Demo Global Accounting Engine

2. Run AX Payables posting Use the specific AX Subledger responsibility

Choose a Max processing date

Posting can be also run in draft mode (Transaction will not be posted to GL)

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Demo Global Accounting Engine

2. AX Posting to GL: Check the Posting Manager results

The event translation report will list out the number of translated events/and or specific

errors failures

If no transactions are available for posting the GL Journal Import will complete with warning

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Demo Global Accounting Engine

3. View AX Journal Entry and T - Account

The invoice has to be accounted

A valid document sequence has to be assigned (it happens

during invoice validation)

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Demo Global Accounting Engine

3. View AX Journal Entry and T - Account

This sequence is attached to both subledger AX categories assigned.

It means that AX is numbering all subledgers’ transaction with a single

sequence.

Doc sequence number: it is different from the one

saw earlier (internal subledger sequence)

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Demo Global Accounting Engine

3. View AX Journal Entry and T - Account

Accounting details are visible

They can be see also if the posting is run in draft

mode

It is possible to see the GL journal only if the

posting has not been run in draft mode

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Demo Global Accounting Engine

3. View AX Journal Entry and T – Account – Journal Entry Details

Accounting details are visible

They can be see also if the posting is run in draft

mode

It is possible to see the GL journal only if the

posting has not been run in draft mode

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Demo Global Accounting Engine

4. Query Entry in GL and drill back

a. GL resp Inquiry > Account

b. Use summary template

c. Drilldown on GL jounals

d. Drill down on AX Journal

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Demo Global Accounting Engine

5. Main reports

1. Daily Journal Book – Header/Line Descriptions Report

2. Account Ledger by Account/Accounting Flexfield Report Use the Account Ledger by Account/Accounting Flexfield report to review all accounting lines per account and period

3. Italian Journal Book Report: journal entries in chronological order based on the sequence assigned by the Italian Journal Sequencing program

4. Supplier/Customer Subledger by account This report reconciles to your balances in the Supplier/Customer Balance by Account/Accounting Flexfield

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Subledger Accounting Deep Dive Agenda

Detailed Description of Each Feature

– Feature and Key Concepts

– Deep Dive

– Demonstration

– Implementation Considerations

– Troubleshooting/Diagnostics

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Implementation Considerations

Setup for Global Accounting Engine to be done at SOB level and subledger level

Document sequences assignments are a setup prerequisite

Multiple posting option

Who can submit AX Payables and AX Receivables posting

Setup a legal sequence for Statutory reporting

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Implementation ConsiderationsSetup steps - prerequisites

1. Create new AX specific Responsibility for each subledger

2. Setup Profile options values:

1. AX Application Name

2. MO: operating unit

3. Sequential numbering

3. Setup Control Accounts for Payables and Receivables

4. Define Document Sequences

5. Create a specific document category and legal sequence for journal book

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Implementation ConsiderationsSetup steps - prerequisites

3. Classify subledger accounts as control accounts for reconciliation reports

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Implementation ConsiderationsSetup steps - prerequisites

5. Legal Sequencing program

Accounting entries can be both translated by the Global Accounting Engine as well as

manually entered into General Ledger,

Accounting entries are assigned original accounting sequence

numbers at different times, depending on the situation

In each case, accounting sequence numbers are based on

dates other than the accounting date.

The Legal Sequencing program assigns final accounting sequence numbers,

based on the accounting date, to your subledger accounting entries in the Global

Accounting Engine. With the Legal Sequencing program, the accounting sequence

numbers that are assigned to your transactions are unique and gapless within a set

of books.

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Implementation ConsiderationsSetup steps

1. Setup Subledger options

2. Freeze posting

3. Start operating

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Implementation ConsiderationsSetup steps

1. Setup Subledger optionsSetup legal sequencing

options

Add subledgers and related SOB

Associate a rule and posting SOBs

Decide Posting options

Link categories

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Implementation ConsiderationsSetup steps

1. Setup Subledger options

Associate a specific category to all events/or

more categories to segregate by different

sequences Link categories the window will open

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Implementation ConsiderationsSetup steps

2. Setup Subledger options

Repeat the steps also for Receivables subledger and for Inventory (if required

Last step is to click of ‘FREEZE button’.

Concurrent programs are run in order to generate the AX configuration you setup

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Implementation ConsiderationsSetup steps

2. Setup Subledger options

Concurrent programs are run to generate the rules for each subledger included in the setup

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Subledger Accounting Deep Dive Agenda

Detailed Description of Each Feature

– Feature and Key Concepts

– Deep Dive

– Demonstration

– Implementation Considerations

– Troubleshooting/Diagnostics

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Troubleshooting

Everytime the AX posting is run we need to check the event translation report

If any error we will check via backend the following 4 tables:

AX_EVENTS

AX_SLE_HEADERS

AX_SLE_LINES

AX_BALANCES

In the AX_EVENTS table we will check for the event status as ‘E’

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Troubleshooting: Diagnostics

Global Accounting

Engine Program

Concurrent programs outputs

AX tables

1.User can correct the error via front end based on

instructions provided in the output file

2. A datafix is needed

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Troubleshooting

Please refer to the attached document HANDLING POSTING ERRORS DOC for visualizing some common error scenarios and related applicable fixes

Microsoft Word Document

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Troubleshooting steps

Run AX posting and view error (even translation report)

Select via backend

Fix issue

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Global Accounting Engine: Debrief

What happened?

What did you learn?

How can it be applied?

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Summary

At the end of this module you should be able to:

– Describe the new features of Global Accounting Engine

– Describe the business needs – Market Drivers

– Discuss the Implementation steps

– Discuss Troubleshooting/Diagnostics

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Questions and Discussions