General Ledger ( GL) differences in 11i and R12

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Please find below the details on the major changes in General Ledger ( GL) differences in 11i and R12

 

Ledger: The ledger is a major concept change  in Release 12 which  replaces the 11i concept of a set of books. the Ledger represents an accounting representation for one or more legal entities or for a business need such as consolidation or management reporting. The new change provides the flexibility for the defining the model in a easy and efficient way for the setup of the legal entities and accounting representations in Release 12. It provides the  shared service center and single instance initiatives where all legal entities of an enterprise are accounted for in a single instance, and data, setup, and processing must be effectively secured but also possibly shared.

 

While a set of books in 11I  is defined by 3Cs

  1. Chart of accounts
  2. Functional currency
  3. Accounting calendar

R12 has been added with 4th C as Accounting Method

  1. Chart of accounts
  2. Functional currency
  3. Accounting calendar
  4. Accounting Method

Accounting Setup Manager:

Accounting Setup Manager is a new feature that streamlines the setup and implementation of Oracle Financial Applications and provides the following common setup components:

  • Legal Entities
  • Ledgers, primary and secondary
  • Operating Units, which are assigned to primary ledgers
  • Reporting Currencies
  • Subledger Accounting Options. Creation of Accounting Methods  sub-module level  and associating it to the ledger where the accounting is stored.
  • Intercompany Accounts and Balancing Rules
  • Accounting and Reporting Sequencing

Definition Access Set: Definition Access Sets are an optional security feature that allows to create a secure shared General Ledger definitions . Definition Access Sets allow to assign a user or group of users access to specific definitions like change in Setup , Submission of Reports and View of Reports .Few of them are listed below which are commonly used:

  • MassAllocations,
  • Recurring Journal Formulas,
  • Financial Statement Generator (FSG) components

Subledger Accounting (SLA): SLA concept is introduced in R12 , which is a Rule-based accounting engine, toolset & repository which is supporting most of Oracle business Suite modules. SLA acts as an intermediate step between subledger products and the Oracle General Ledger. Journal entries are created in Subledger Accounting and then transferred to Oracle General Ledger .  Every single subledger transaction ( like AP, AR, FA , PA) that requires accounting is represented by a complete and balanced subledger journal entry stored in a common data model.

Commonly used features of SLA in R12:

  • Journal Entry Setup and sequencing
  • Subledger Accounting Definition for each sub – module
  • Multiple Accounting Representation
  • Multi-period Accounting
  • Feature for providing Draft and online accounting
  • Replacement for disabled accounts
  • Category based Accounting
  • Accrual Reversal Accounting
  • Provides Accounted and Gain/Loss Amount calculations
  • Application Accounting Definition Loader
  • Enhanced Reporting Currency Functionality

AutoReversal Criteria Setup:  Oracle Apps R12 allows to setup the AutoReversal Criteria Sets which can be shared across ledgers to reverse journals across multiple ledgers ,  enhanced by integrated Web-based Spreadsheet Interface.

 

Automatic Posting: Oracle Apps R12 allows to have the common AutoPost Criteria sets across multiple ledgers that share the same chart of accounts and calendar and use the AutoPost Criteria sets to post journals across multiple ledgers simultaneously.

Creation of  foreign currency recurring journals:  11i provides the support for creating / defining the recurring journals in the functional currency or STAT Currency where as in Oracle Apps R12 , user can create recurring journals using foreign currencies.

 

Currency Translation of Multiple Ledgers : Oracle Apps R12  provides the flexibility to run the Translation program for multiple ledgers simultaneously

 

Financial Reporting for Multiple Ledgers:  Oracle Apps R12  provides the flexibility to run Financial Statement Generator (FSG) reports for multiple ledgers simultaneously which helps in managing multiple ledgers when you need to  run a balance sheet or income statement report for all of your ledgers at the same time

 

Cross-Ledger and Foreign Currency Allocations : Oracle Apps R12 allows  to allocate financial data from one or more ledgers to a different target ledger and enables to perform cross-ledger allocations, which is useful for purposes such as allocating corporate or regional expenses to local subsidiaries when each entity has its own ledger