<Insert Picture Here> Oracle E-Business Suite R12.1 General Ledger Overview Training Courseware For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION — DUPLICATION IS PROHIBITED

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Key Content Contributors Contributing Companies For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION — DUPLICATION IS PROHIBITED

Module: Oracle General Ledger COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION — DUPLICATION IS PROHIBITED

© 2009 Oracle Corporation – Proprietary and Confidential Bootcamp Objectives Oracle General Ledger Process Accounting Setup Manager Ledger Basic Journal Entries Accounting Setups Summary Accounts Advanced Journal Entries Advanced Security Financial Budgeting Multi-Currency Consolidations Period Close Financial Reporting For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Concepts & Ledger Processing Options Secondary Ledgers & Reporting Currencies Accounting Setups with One, Multiple and No Legal Entities For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION — DUPLICATION IS PROHIBITED

What is Accounting Setup Manager? Centralized method of defining and maintaining accounting structure aligned with the business needs! Single Page for accounting setup! For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

Accounting Setup Manager Components Legal Entity Primary Ledger Secondary Ledger Reporting Currencies For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

Ledger Processing Options This table is an example of ledger attributes for a global company that has four legal entities – two in US one in the U.K. and one in the France For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

Concepts: Primary Ledger Primary Ledger is the main record-keeping ledger. Defined by 4 C’s: Chart of Accounts Accounting Calendar Primary Currency Subledger Accounting Method One Primary Ledger is required for each accounting setup. For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Concepts & Ledger Processing Options Secondary Ledgers & Reporting Currencies Accounting Setups with One, Multiple and No Legal Entities For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION — DUPLICATION IS PROHIBITED

© 2009 Oracle Corporation – Proprietary and Confidential Concepts: Secondary Ledger It is an optional, additional accounting representations of the primary ledger. Secondary ledgers are used for supplementary purposes, such as consolidation, statutory reporting, or adjustments for one or more legal entities within the same accounting setup. Can differ in one or more C’s of the primary ledger: Chart of Accounts Accounting Calendar Primary Currency Subledger Accounting Method Maintained at 4 different levels: Subledger Level: Use SLA for Automatic Maintenance Journal Level: Use Posting for Automatic Journals Replication Balances Level: Use GL Consolidation to Transfer Balances Adjustments Only: Manual Adjustments in GL or Automated Adjustments from SLA For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential Concepts: Reporting Currencies Used for accounting and reporting in another currency (in addition to the ledger’s primary currency). Can be used with Primary or Secondary ledgers. One Primary Ledger is required for each accounting setup. Maintained at 3 different levels: Subledger Level: Use SLA for Automatic Maintenance Journal Level: Use GL Posting Balances Level: Use GL Translation For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

If one or more of the following are different, Concepts: Reporting Currencies Use a Secondary Ledger Currency If difference is only currency, Corporate Chart of accounts Monthly Calendar Accounting Method US GAAP Accrual Use Reporting Currencies 4Cs of a Primary Ledger If one or more of the following are different, For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

© 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Concepts & Ledger Processing Options Secondary Ledgers & Reporting Currencies Accounting Setups with One, Multiple and No Legal Entities For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION — DUPLICATION IS PROHIBITED

Accounting Setups with One, Multiple and No Legal Entities Accounting Setups with One Legal Entity You should only assign one legal entity to an accounting setup type if your legal entities meet any one of the following criteria: • Operate in a country with strict legislative requirements that require the legal entity to maintain its accounting data separate from other legal entities • Have specific legal or statutory rules that require a separate ledger for the legal entity • Require different primary ledger attributes from other legal entities. For example, the legal entity requires any one of the following ledger attributes to be different from other legal entities: - Chart of Accounts: One legal entity requires a 10-segment chart of accounts and another requires a 6-segment chart of accounts. - Accounting Calendar: One legal entity requires a weekly calendar and another requires a monthly calendar. - Primary Currency: There are legal entities and companies that require different primary currencies to act as their main record-keeping currency. For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION — DUPLICATION IS PROHIBITED

Accounting Setups with One, Multiple and No Legal Entities Accounting Setups with Multiple Legal Entities If an accounting setup has more than one legal entity it means that multiple legal entities can share the same primary ledger attributes, such as the same chart of accounts, accounting calendar/period type combination, currency, subledger accounting method, and ledger processing options. Assign multiple legal entities to the same accounting setup if all of the legal entities assigned to the accounting setup meet all of the following criteria: • operate in a country that allows multiple legal entities to share the same primary ledger and ledger attributes, such as the same chart of accounts, calendar, primary currency, subledger accounting method, document sequence, and accounting options • do not need to have different ledger processing options for each legal entity. For example, legal entities can use the same general ledger translation rule and cumulative translation adjustment accounts to translate balances. • do not need to open and close periods independently by legal entity • do not require autonomous document sequencing for a legal entity • do not have tax requirements that are specific for a legal entity For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION — DUPLICATION IS PROHIBITED

Accounting Setups with One, Multiple and No Legal Entities Accounting Setups with No Legal Entities Accounting setups that do not have legal entities assigned can be used for multiple purposes based on business needs. For example, define an accounting setup with no legal entity assigned if a legal entity context is not required for transaction processing, or use it to supplement the accounting contained in other accounting setups that have legal entities assigned. You can use accounting setups with no legal entities for the following business needs: • You do not need to maintain transactions using a legal entity context. • You are using a separate instance of General Ledger as a standalone application and do not plan to integrate with Oracle financial subledgers that require a legal entity context. • You are not integrating with Oracle financial subledgers but are using Subledger Accounting to integrate Oracle General Ledger with non-Oracle systems. • You want to maintain an additional accounting setup for management reporting purposes or consolidation purposes. For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION — DUPLICATION IS PROHIBITED

Concepts: Legal Entity (LE) Implementation Models 1 : Many LE are mapped to the Balancing Segment Value (BSV) within a Ledger, hence, multiple LE are accounted for in a ledger. An OU will have one Ledger assigned, hence, transactions for many LE are processed and accounted in a single OU. 1 : 1 : 1 A single LE is mapped to a Ledger. An OU will have one Ledger assigned, therefore, transactions for a single LE are processed and accounted in the OU. For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential