Financial Apps Collaborate 16 Sessions

We’re just two days away from the start of Collaborate and there are so many session I want to get to, my focus is on Financial Applications both Cloud and E-Business Suite.  I already listed sessions where you can find me presenting, but here are ones I think will be interesting, I will attend as many as I can

Firstly two cloud customers(Alex Lee and Westmont Hotels) talking about their experiences implementing cloud financials.

Fusion Financials Implementation Customer Success Experience

Monday April 11th 12:45 PM–1:45 PM – South Seas J

Derrick Walters, Corporate Applications Manager at Alex Lee

How Westmont Hospitality Benefited by Leveraging Cloud ERP
3:15 PM–4:15 PMApr 11, 2016 – South Seas I
Sacha Agostini Oracle Functional Consultant at Vigilant Technologies, LLC.

Next some AGIS, Legal Entity and related topics on E-Business suite.  In these areas that have been out for some time, I generally learn something about innovative uses of the products.  Our partners and customers are very smart.

Intracompany, Intercompany, AGIS – Unraveling the Mysteries!
2:15 PM–3:15 PM Apr 10, 2016 – South Seas A
Bharati ManjeshwarMs at Highstreet IT Solutions, LLC

Master Data Series – Legal Entities From 11i thru Cloud
9:15 AM–10:15 AM Apr 12, 2016 – Breakers F
Thomas Simkiss Vice-President of Consulting at Denovo Ventures, LLC

Its Not too Late! How to Replace Your eBTax Solution After You Have Upgraded
10:30 AM–11:30 AM Apr 11, 2016 – South Seas I
Mr Andrew BohnetDirector ateBiz Answers Ltd

General Ledger and Financial Accounting Hub – A look at a Multi-National Structure
3:30 PM–4:30 PMApr 10, 2016 – Jasmine H
Bharati ManjeshwarMs at Highstreet IT Solutions, LLC

Finally, there are sessions called Power Hours, which are strangely two hours, but i really like the experience last year and based on the fact they are back i assume others did too.  they are not a traditional lecture format, they are more interactive and allow people to discuss their experiences and learn from each other.  If you have not tried one, I highly recommend them.  Here are a couple that jumped out at me
Power Hour – Coexistence – On Premise and Cloud Together and In Harmony
3:15 PM–5:30 PM Apr 11, 2016 – Mandalay Bay C
Mohan Iyer Practice Director at Jade Global, Inc.
Power Hour – eBTax Hacks – Your Questions Answered
9:15 AM–11:45 AM Apr 12, 2016 – Mandalay Bay C
Mr Andrew Bohnet Director at eBiz Answers Ltd
Alexander Fiteni President at Fiteni Enterprises Inc
Dev Singh Manager at KPMG LLP Canada
Power Hour – Master Data Structures in EBS and Cloud
12:45 PM–3:00 PM Apr 11, 2016 – Mandalay Bay C
Mohan Iyer Practice Director at Jade Global, Inc.

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

EBusiness Suite Legal Entity FAQ

I’ve been preparing these for a presentation at Oracle OpenWorld next week, they were mostly taken from the questions asked by Alyssa Johnson in her comment, but they are very typical questions that I get asked a lot.

What is the difference between the 11i GRE/LE and R12 LE?

  • GRE/LE is upgraded as an LE in R12
  • In 11i GRE/LE was often a dummy LE, not real LE structure and had little use
  • R12 LE has a more robust definition
  • R12 LE is used more by processes and reports across financials

Where does the LE impact R12 processing?

  • Short answer – Tax, Intercompany (AGIS), Global Features

Why should I assign BSVs to my LEs in the Ledger?

  • It is optional, if your BSV is your company code, you have an implied LE there in your GL
  • It helps with some LE derivation for transaction stamping
  • Allows you to run reports by LE
  • May make Intercompany rules easier to define

In 11i, the LE doesn’t really correspond to the true Legal Entities of the Organization (e.g. only one LE is setup even though there are multiple companies). What is going to break in R12 if I leave it that way?

  • Nothing will break if you do nothing and stay with one ‘dummy’ LE
  • You won’t get all the good stuff we talked about earlier

Is there a connection between the LE and the BU?

  • If you map LE to Ledgers / BSV, there is an indirect LE-OU relationship
  • There is a Default Legal Entity for an OU (Default Legal Context) which in some cases(1:1:1) it will be the only LE so it is a direct assingment

If you want to add anything to this, or have more questions then fine the comments section below…

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.

Advanced Global Intercompany System R12 White Paper

There is a white paper available on metalink (metalink note 418649.1) that describes in detail each set up step you need to perform to set up AGIS.  It is a very nice document with screen shots to show you every step of the way and there are also some viewlets that show you the set up in progress.

This is a pretty good starting point if you are setting up AGIS

Fixed Assests Intercompany in R12

Fixed Asset?
Fixed Asset?

Something I often forget to mention is the enhancement of Intercompany functionality in Fixed Assets (FA) that has been provided in R12. So here is my attempt to explain it, based on an old email discussion with the FA team, I wouldn’t describe myslef as an FA expert, but if there are any comments or questions I might be able to find an FA expert to get an answer. :)

In 11i FA stores reference accounts in two setup entities; Book Controls and Categories. The intercompany Payables and Receivables accounts were stored directly on the book, only the natural accounts segment were stored for these two accounts. The Account Generator definition would combine the natural account with other sources to get a full account combination. Out of the box, those sources were a default ccid which is also on the book and a ccid from the asset assignment. So the balancing segment is derived from the asset assignment, the natural account from the values on the book, and other segments from the default account.

The intercompany would kick in for two transaction types “Transfer” and “Unit Adjustment”. However, other transactions could result in intercompany impacts, but they would not be generated in FA so GL would do the balancing when the accounting was posted there.

So in R12 FA uses the AGIS Intercompany balancing feature, which is Continue reading “Fixed Assests Intercompany in R12”

R12 Best Practices White Paper

I noticed today on Stephen Chan’s blog that this White Paper is available on metalink

Best Practices for Adopting Oracle E-Business Suite, Release 12 (Metalink Note 580299.1)

I haven’t reviewed the document yet, despite there being a section on AGIS. As soon as I resolve the problem I’m having with my metalink login I will take a look. I understand it was pulled together by Anne Carlson, who I know reads this blog becasue she mailed me just today with a question about it, I’m hoping some of the useful posts from this blog made the cut.

I want to use this opportunity to plug two other guides that are new in R12 and I highly recommend you read if you are looking at upgrading to R12.

Oracle Financials Concepts Guide, Release 12 (Part No. B28873-01

Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12 (Part No. B31543-01)

I discuss them a little more along with a few other resources in this post.

UPDATE (June 16th):

I reviewed the White Paper and the AGIS section is fairly sparse – I will be contacting the author to try and get more detail in there.

However on the whole I think it’s a great document and essential reading for anyone looking to implement  or upgrade to R12.  Now if we can just publish that information on a blog, then we’ll truly have a living document, I’ll ask that question of the document owners.