Guest Post: Custom Balancing by 2 segments in EBS R12

Sangeeta
Sangeeta Sameer, IT Leader – Finance, Renewables ERP at GE Power & Water

This is a guest post from Sangeeta Sameer, who worked for Oracle for 6 years before moving on to work for GE where has held a number of senior positions.  She has also joined the board of the OAUG Multinational Special Interest Group.

At the Collaborate 2014 Conference, David Haimes and I presented a custom solution to enable balancing by 2 segments of the Chart of Accounts in Release 12.1.3 of Oracle e-Business Suite. The attached PowerPoint and Paper that we presented describes in detail the requirements and the custom solution.

So when David asked me to write a guest post about this topic, I thought about what else I would include in the paper if we were writing it again. While the paper talks about the requirement to create a balanced Trial Balance by 2 segments, it does not expand on why we need a balanced Trial Balance by 2 segments. Global corporations like General Electric (GE) need better granularity and accountability for the financial performance of their geographical divisions and lines of businesses by being able to create a Balance Sheet at both a Legal Entity/Statutory level and Business Unit/Management Entity level. GE is a Global conglomerate that has diverse businesses operating in a large number of countries. GE needs the ability to create a balanced Trial Balance by the Legal Entity (LE) and the Management Entity (ME) segments in the Chart of Accounts.

The ability to automatically balance by more than one segment is not a new requirement for GE, and I think it would be a requirement for other multinational companies as well. This requirement is explained quite well in Oracle Fusion Applications Enterprise Structures Concepts Guide 11g Release 5 (11.1.5) – Part # E22899-05. See the section titled “Legal Entity and Its Relationship to Balancing Segments”. While Fusion Applications are able to balance by up to 3 segments in the Chart of Accounts, Oracle e-Business Suite (EBS) Applications are able to balance by one segment only.

In prior EBS Release 11i implementations at GE, the requirement to balance by 2 segments was satisfied by developing custom solutions that needed to be re-visited for Release 12. For example, one of the solutions in 11i was for a custom program to bring balancing entries into the Interface Table. With the introduction of SLA in Release 12, this 11i solution was no longer a good one for R12. The solution described in the attached Paper and PowerPoint is a much more robust solution, and is live in Production for 2 different ERP Projects at GE.

The OAUG Multinational Special Interest Group (SIG) is organizing a webinar on June 11th at 10.30 am Pacific (1.30 pm Eastern) on this topic. David and I will repeat the presentation from Collaborate 2014, and look forward to sharing this solution again. The webinar will be one hour long, including 20-25 minutes for Q&A.

The link to register for this webinar is:
https://www4.gotomeeting.com/register/790696327

Report from Collaborate 14, Las Vegas

David in a Suit
Talking Fusion Accounting Hub in a suit

Last month I attended and presented at Collaborate, the largest Oracle conference outside of Open World and one where the agenda is determined by the user community.

I was well organized this year; before I attended the conference I had downloaded the mobile App and started creating a conference agenda, I was a little bit disappointed that I had to manually add sessions I was presenting to my agenda, seems like a missing feature and it did not create the best first impression.  However, I then found the mobile app really good, a lot of discussions, the ability to comment on sessions and all the good social features you would expect.  When the conference got started the gamification they had added (a simple leader board of activity) helped to drive adoption and also caused some controversy, I’ll stay out of that but I would recommend reading Debra Lilley’s thoughts on it.

Throughout the week many people were talking about how several sessions they wanted to attend seemed to be scheduled at the same time. My first thought about this was that they were just making a polite excuse for not attending some of my sessions, but then I did observe the same thing myself.  It is hard having to choose between two or often three very interesting and useful sessions which are on at the same time, it is also tough when attendance at some sessions is lower than they deserve.  However, as I thought more about it, I feel it should be seen as a positive that the quality of the sessions and the presenters was very high.

My session on Fusion Accounting Hub and GLobal Charts of Accounts and Consolidation was on Monday and I had a decent crowd, got through a lot of material and had some really good questions (and I hope the answers were good).  I mentioned on my blog that FAH was the talk of the town based on the number of sessions that were covering it, I certainly spent  lots of time discussing it with people over the course of the conference.  We had a good GL SIG group meeting, I did a few minutes about the management segment and Data Access Sets in EBusiness Suite GL Release 12.  I was surprised that more people were not aware of this very useful feature, maybe I should blog about it (he says, adding it to a long to do list).  My third session was co-presented with Sangeeta Sameer from GE, I have asked Sangeeta to write a guest blog post introducing it, sharing the paper and announcing a webinar repeat of it – watch this space.

Exciting that all the things were, probably the part I enjoyed most was talking to so many people who had implemented or were implementing Cloud ERP Apps.  I had a chance to hear the positive comments and excitement that customers and partners had, but equally chat about where the y had suggestions for improvements.  We have a lot of very experienced, motivated and very smart partners out there and I enjoy every minute talking with them and learning from them, hopefully helping them out with a few tips too.

So next up for me is Open World, I did not make KScope this year, but one day I would like to go there, but for my particular field Collaborate is a must conference and if you have never been I would highly recommend you consider it next year, I will certainly be submitting a paper.

 

 

 

Collaborate 14 Paper: Balancing by 2 Segments

It is a very common requirement to automatically balance by two different segments of the chart of accounts, typically the Legal Entity and some sort of Management Entity (department, line of business, cost center, etc).  Fusion financials allows you to balance by up to three segments, which is always a well received feature.  However at Collaborate you can learn how one company built a custom to do this in EBusiness Suite.  I’m honored to have been asked to Co-present with GE on this topic, they have done some really good work here and I’m sure it will be of great interest to others too.  So come along and join us, you’ll get the specifics of what they did, the details are below:

Session ID: 13941
When: 10 Apr 11:00 AM-12:00 PM
Room: Level 1, Marco Polo – 801
Speakers: Sangeeta Sameer, General Electric (GE),  David Haimes, Oracle Corporation
Abstract: This paper describes the Custom solution that General Electric (GE) implemented in collaboration with Oracle to achieve Balancing by 2 segments in Release 12.1.3 of Oracle E-Business Suite (EBS). GE has the business need to Balance by both the Legal Entity (LE) and Management Entity (ME) segments in the Chart of Accounts. While Fusion Applications allow Balancing by 3 segments, Oracle EBS Applications do not have this Functionality. This paper covers the requirements and solution in detail for 2 Segment Balancing.

Advanced Global Intercompany (AGIS) takes on it’s own sound

At the moment I am talking a lot about AGIS with customers,
users and consultants. It seems it’s being used a lot and I have
had a few people asking me if I know any consultants experienced in
it because they have are struggling to fine experts to implement
it. What is interesting is how everyone pronounces it, “a-jis”
rather than how we always pronounced it in product development was
spelling out the letters AGIS or frankly we just call it
Intercompany. Just goes to show once things are out in the world,
they take on their own life and identity.

Want more on Legal Entities?

I was perusing the statistics that wordpress.com provides for this blog and was interested to learn that the most commented on post, with a whopping 69 comments, is the classic from November 2007 – How do I define my Legal Entities? .  It has also received 18,449 page views which is the second most viewed post on this blog.  My conclusion is that people are interested in this topic and want to learn more, so I thought I would mention the OAUG GL SIG meeting at OpenWorld where I have been asked to make a short presentation about Legal Entities, essential details are:

 

Title: OAUG General Ledger SIG
Time Sunday, 04:00 PM, Moscone West – 3005
Length 1 Hour
Abstract: The OAUG General Ledger SIG is a worldwide community of professionals engaged in the use of record-to-report business processes. Group members are business users, consultants, and support members engaged in the use of Oracle General Ledger.

This session focuses on Oracle Fusion Financials’ General Ledger feature, the Oracle E-Business Suite Release 12+ update, and the Oracle Financials release roadmap.

I have just started to think about preparing slides and I thought that rather than actually work on them, I would blog and see if anyone had ideas on the type of thing I should talk about (the hip crowd would call it crowd sourcing).  It’s been almost 4 years since that post, so let me know in the comments what more information you would like on Legal Entities in Oracle Apps.

The comments section is just down below, past all the widgets asking you to like the post and share it…

FSAH and AGIS Intercompany Implementation thoughts

Written by David Haimes

As Intercompany transactions are very likely to cross systems they are a good candidate for integration in a ‘Hub’ of some sort.

In R12 the Financials Services Accounting Hub (FSAH) allows integration of third party systems to Oracle and is incredibly powerful and flexible.

Let’s use a simple example:

Company A and B both use two different Ledgers. A Sales Invoice is issued by Company A (to Company B) for $5,000

The accounting needs to be created as below, they need to be booked with the same accounting date in the same period.

In Company A

Debit Intercompany AR $5,000
Credit Intercompany sales $5,000

In Company B

Debit Expense or inventory (per content), $5,000
Credit Intercompany AP, $5,000

So there’s a number of options that come to mind (in no particular order).

1) Using Oracle Accounting Hub you can account for transactions form third party systems, it uses the Subledger accounting engine to process accounting events defined for the third party system. If your invoice systems are third party applications, you could create 2 events (one for each company/ledger/party to the transaction) for the sales invoice and get the full accounting out of the single system integration.

2) Enter these transactions in AGIS, the specific accounting will be entered/generated and approvals from company A and B obtained before AGIS either books it direct to GL or generates the Invoice for company A and B if required.

3) It may not be ideal to force users to navigate to a different screen (or change some import process, EDI, XML feed etc) to issue Intercompany invoices from other invoices as in 2) above. So continue to enter in your regular sales invoice system but run a process which detects an invoice is Intercompany and cancels it, then generates a transaction for it in AGIS (via the Open Interfaces) or FSAH.

I don’t think any one of these is right for all situations, detailed analysis of the particular implementation environment and requirements needs to be done to figure out the best approach. If you have any thoughts, better suggestions or experience then please share them in the comments.

Financials Sessions at Oracle Open World 2008

A lot of people are asking when various sessions are, readers of this blog are probably interested in Oracle EBS financials, Helle posted on Oracle Mix a couple of useful links. I recommend looking at this pdf which lists all the financials sessions including demogrounds, apps lounges, presentations etc.

My session is listed there, I look forward to seeing some of your there.

Thursday 25th, 3:00 p.m.

Moscone West 2006

Are Intercompany Processing and Reconciliation Currently Pain Points for Your Enterprise?

David Haimes, Oracle; Helle Hennings, Oracle

I blogged last year about the meet the Experts Lounge, well this year it has been renamed to Applications Lounge. I haven’t been asked to attend this year, so if you want to ask me any questions or provide feedback you’ll have to come to the session above, find me at the DEMOgrounds, the Blogger Meetup or follow me in twitter, or use this blog all year round – remember customer interaction is not just for Oracle Open World, it’s for life.