Standard Oracle System Reports and R12 Financials ERR!

As discussions about the future of Oracle Discover continue and organisations map their future needs into business analytic tools.

I decided to refresh on Oracle Standard Reports.

Not so exiting a subject but I thought I could do with a refresh and not having been hands on for some time took the opportunity to brush up.

Some new features in R12.2 like improved features in the reporting manager help.

Information discovery dashboards (Endeca) integrated with Oracle Financials modules now exist.

The need for valuable information is not just restricted to information about performance.

I decided to gem up about what standard reports are available for the E-Business Suite Financial Modules.

Many of the standard reports are used or are the basis for reconciliation as opposed to use as an insightful view of data and transactions.

Then I remembered what about error reports quite useful if there is an issue that needs resolving urgently.

ERR! You might think but anyway here is my list that I have found useful in identifying and resolving issues.

 

Module Report
General ledger for cash management

 

Account Analysis Report for the General Ledger Cash Account
Cash Management Auto-Reconciliation Execution Report
General Ledger, Sub-Ledgers and Fixed Assets Sub ledger Period Close Exceptions Report
Accounts payable Invoice on Hold Report
Account payable Unaccounted Transactions Report
Accounts payable Void Payment Register
Accounts payable (control accounts)

 

Transaction Exception Details
Projects for assets

 

Interface Assets Exceptions
Fixed Assets Assets Not Assigned to Any Cost Centers Listing

 

NB- There are also enhancements in R12.2. to Receivables and E-Business Tax modules.

I am not sure if any error reports exist for receivables or E-Business Tax? More brushing up to do!

Not totally financial but I will get to that later

Due to bad weather and a faulty car, I missed the Oracle Financials Sig event in February. Never mind the documents are online at UKOUG and I have been having a browse.

The presentation from Oracle about private and hybrid cloud security caught my eye.

Apart from presenting details on the Oracle Identity Access Management product, which can be found at https://cloud.oracle.com/home it went further to give detail about other aspects of IT security.
Two new initiatives are on the radar for 2016.

The EU Cyber Security Initiative affecting many industries has been approved to become a directive this year 2016 and a new EU directive on privacy laws comes into effect.

The fact sheet http://ec.europa.eu/justice/data-protection/reform gives more detail about privacy laws affecting the EU and US and the fact sheet https://ec.europa.eu/digital-single-market/news/eu-cybersecurity-initiatives-working-towards-more-secure-online-environment explains a bit more about cyber security but essentially the new rules on Cyber Security will affect a number of industries and aim to:

 improve cybersecurity capabilities in Member States
 improve Member States’ cooperation on cybersecurity
 require operators of essential services in the energy, transport, banking and healthcare sectors, and providers of key digital services like search engines and cloud computing, to take appropriate security measures and report incidents to the national authorities.

If you already know this great but even if your organisation is not directly affected you should be aware.

In reality, most risk to IT systems comes through problems with hardware/software failures and not with hackers; you can take measures to secure your systems. Audit and documentation your systems to identify risks, have a security incident plan, Involve your executive management are some of these.

To go back to the presentation it reminds us again that the areas organisations need to be aware and review are:
• Access Management
• Identity Governance
• Data Security
• Network Security

Back to reading with interest the other presentations which are mostly financial.

Group depreciation in Oracle Financials EBS

This feature in Oracle Fixed Assets allows you to set up a group of assets. Why would you want to use this feature? In many countries regulations in certain industries like oil & gas, telecom and utilities require tax and compliance reporting require this. These corporations hold large volumes of assets and group depreciation allows for these assets to be held together for ease of reporting.

Where Group Depreciation is used and assets are held at group level then there are a number of restriction on performing other asset functionality and data-migration.

Examples of some functionality that cannot be used on group assets-

  • Bonus Depreciation
  • Tax Reserve Adjustment:
  • Group retirement adjustment
  • Mass Depreciation Adjustment
  • Physical Inventory
  • Revaluation

What happens if reporting is required to show component assets and associated depreciation for each individual member assets?

One option may be to set the tracking method to calculate the member asset amount option, this will calculate depreciation on each member asset. This can only be performed when the asset is added so this option cannot be applied to legacy assets.

Another option might be to disable the group asset the problem with doing this is that the assets in the group must  be either retired or reclassified prior to being disabled.

For these industries there is no easy work around if complying with International Financial Standards and holding assets in Oracle Financials at a group level.

It will be interesting to see how these organisations meet the new reporting standards in particular component asset lives and revaluations.

Upgrade to Oracle R12 EBS Tax and three key points: Location, Location, and Location!

Upgrade to Oracle R12 EBS Tax and three key points: Location, Location, and Location!

Location flex-field and geography hierarchy

In Oracle Financials R12, the R11i tax location flex-field is replace by geography hierarchy which is held in the Trading Community Architecture (TCA).Before the upgrade the geography and tax validation must be reviewed and may need to be configured to meet your current needs.

Location based tax rates and Jurisdiction

In an R12 upgrade, the tax locations of the records are upgraded, and each one is associated with a tax rate. Jurisdictions are associated to tax rates. Jurisdictions are geography records that tie back to locations in the Trading Community Architecture (TCA).

Tax Group and Tax Regime

After upgrade, this will be set as Standard Tax Classification Code (STCC). Tax codes that are historically part of a tax group will upgrade and create the direct tax determination rate in R12.Either the STCC or the STCC and the direct rate rule which is created in the upgrade from the will be applied against events to calculate the tax. The country of the operating unit and the tax type will determine in R12 EBS Tax what Tax Regime code is held in the upgraded system.

 

Oracle Sub-Ledger Accounting a snip it on using SLAM with secondary ledgers

Additional SLAM set ups for use with secondary ledgers

The conversion can be performed at the following levels

 

  • Sub-ledger Level Secondary Ledgers
  • Journal Level Secondary Ledgers
  • Balance Level Secondary Ledgers
  • Adjustments Only Secondary Ledger

It is a prerequisite to create a chart of account mapping if the secondary ledger uses a different chart of accounts.

The accounting set up below is an example suitable for scenario 1 solution (a) in this example a French subsidiary is consolidated into the

US Parent.

Navigate to accounting set up in Oracle>

 

 

Primary Ledger French Operations Secondary ledger US Statutory
Chart of accounts Corporate Chart of accounts US  GAAP
Accounting calendar

 

Monthly Accounting calendar Fiscal
Currency Euro Currency USD
Sub-ledger accounting method Standard accrual Sub-ledger accounting method USGAAP
Data conversion level Journal
Disable conversion date 01-Feb-2013

 

 

Chart of accounts mapping 

Corporate to Statutory mapping

 

 

 

Currency conversion rules

Source representation                                                            Source representation French operations
Default rate types Corporate
Retain transaction rate type Yes

Error Handling

If missing conversion rate                                   o report error

* Use last rate

Number of days to find last rate           15

 

Journal conversion Rules

Post journal automatically from source ledger     o

Retain journal creator from source ledger           no

Not very topical but who knows – Inflation accounting for fixed assets

Example of Modified historic Cost Scenarios to be applied to Pre-UAT test environment

 

Scenarios will be run over a period of three year ends to allow a “YO”- “YO” index to be applied and the full results of the accounting effect of IAS16/FRS15/FREM 6.2.5 when fully applied where losses on revaluation should be debited to the relevant reserve (see above) to the extent that gains have been recorded previously, and otherwise to the operating cost.

 

Indexed Revaluation

Index no List of Indexes Year 1 Year 2 Year 3
1 YO-YO 110 90 120
2 Rising-Rising-Rising 105 110 120
3 Falling-Falling-Falling 95 90 85
4 Rising-Falling-Falling 120 110 95

 

Asset Category used for Revaluations Plant & Equipment

 

Scenarios:-

Index revaluation using the above indexes applied to a number of sub-categories of Plant & Equipment applied to a number of Assets

 

Additional Category for Professional revaluation on an Asset in the Category Buildings

 

  • Year 1,2, 3 indexed revaluation of a number of assets added in the prior year applying index 1,2,3,&4 Assets to show all accounting including backlog 4 Assets
  • Year 2 Professional revaluation for 2 Asset in 2 categories to show after indexed revaluation and before indexed
  • Year 2 applying index 2 to a disposal to show that Revaluation reserve retired 1 Asset
  • Year 2  applying index 2 cost adjustment to show revaluation on adjusted cost  Asset
  • Year 2 applying index 2 revaluation on a re-classed asset to show use of relevant index for new category applied to asset 1 Asset
  • Year 2 applying index 4 addition to show revaluation for in year addition 1 Asset
  • Year 3 applying index 2 re-life to show revaluation change to depreciation on 2 re-life Asset  (1) reduce life (2) extend life
  • Year 3 select assets to remove from Indexed revaluation 2 Assets

 

Total number of Assets tested = 14

Expected results will be held in a separate spreadsheet and show the revaluation for each asset for each of the 3 years

 

Reports – Testing of all Oracle IAC reports

 

Problems with the technical aspects of transaction processing?

Have you ever had a conversation about transaction processing and thought what about the technical aspects.In fact having recently had that conversation and I came of the phone thinking where would I go to first?

I found this resource for Oracle EBS which may come in usefull when thinking about transaction processing and the Oracle technology stack link to it from twitter.

https://twitter.com/Oracle_EBS/status/597831052535562240

Applying creative thinking and problem solving to your Business and Finance Systems Equals Success

Applying creative thinking and problem solving to your business and finance Systems Equals Success

This is what I Bring to Your Organisation
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You tell me what to deliver
• Review scope and help with planning
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This is how I work with you
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Contact Michele Bryant for a free and informal meeting or discussion.