Académique Documents
Professionnel Documents
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Agenda
Introduction
Robert Smith currently is a Manager at KPMG, LLP with over 17 years of experience working with Oracle Applications as user and consultant.
Purpose of AAP Process Reconciliation Setup and Process Reconciliation Write-Offs Reconciliation Logic and Example Accounting Setup Lessons Learned Q&A
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International.
KPMG International Countries: 150 Professionals: 143,000+ Partners: 7,900 Revenue: $22.7 B Global Advisory Professionals: Americas EMEA ASPAC 7K 20K 5K
KPMG Services
KPMG is a service provider independent from any suppliers or products, fostering an independent view and position.
100+ global methods and toolkits to bring the firms vast knowledge to each client
Audit
Provides independent audit services designed to enhance the reliability of information prepared by clients for use by investors, creditors and other stakeholders, including countryspecific statutory requirements
Advisory
Helps clients to tackle growth, governance, and performance challenges, combining specialist skills around the world to provide objective advice and execution to help preserve and improve value
Tax
Helps clients throughout the world stay on top of tax-related developments and address a host of international, federal, state, and local tax issues
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Oracle Global Delivery Strength: 2,000+ resources in 35 countries/member firms World Class Business Process Transformation capabilities Deep Oracle expertise in Financial Management (Oracle & PeopleSoft),
HCM (PeopleSoft), EPM (Hyperion & Essbase), Business Intelligence (OBIEE & BI Analytics), and GRC
Developing SCM capabilities, with strong expertise in OPM and Demantra Oracle Platinum Partner with an extensive set of Specializations
o Diamond Level Certification in process
Oracle TITAN Award winning RapidSolutionsSM methodology KPMG LABSSM provide fully configured, industry-leading Oracle E-Business,
PeopleSoft HCM & Financials, Oracle Business Intelligence OBIEE and Analytics reference environments
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
CFO
CIO
Financial Management
Business Effectiveness
Oracle Capabilities
Key Facts
Oracle Platinum Partner Specialized: Oracle E-Business, PeopleSoft, Hyperion, Business Intelligence & Analytics Oracle Fusion Early Adopter Partner Program Diamond Level Certification Initiative in process Focus on Oracle-enabled Global Value Delivery Method Global Delivery Strength: 2,000+ resources in 35 countries
Financials
Information Management Data Quality Management Strategic Platform Alignment Cloud Strategy and Deployment ERP Performance Management & Implementation Security and Risk Rationalization Outsourcing Enablement
Procurement
Payroll
Benefits
Across Industries
Transfer Pricing Governance, Risk & Compliance International Financial Reporting Standards
Enterprise Performance Management & Essbase
Compensation
Talent Management
Workforce Planning
BI Financial Analytics
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
BI HR Analytics
BI Project Analytics
Oracle has long recognized KPMGs industry domain expertise and leadership position; viewing KPMG practitioners as trusted business advisors and industry thought leaders. We work closely with Oracles Sales teams, especially in the rollout of new releases, and have a long history working with Oracles Product Strategy & Development teams. The relationship our practitioners share with Oracle becomes a direct value to each of our clients when seeking rapid resolution to product issues.
Leading implementer of v9.1 solutions. The 1st to implement HCM v9.1, HCM 8.9 and Revenue Management v8.9.
Leading implementer of Oracle BI solutions, including OBI EE and BI Analytic Applications. One of the 1st to implement Project and HR Analytics 7.9.6
A leader in GRC Transformation services. The 1st to successfully implement Oracle EGRCM 8.6.
Deep experience implementing Oracle EPM solutions, including Hyperion and Essbase. The 1st to successfully implement HFM Fusion.
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
BUSINESS PROCESS FOCUS Financial Management IT Strategy & Performance Business Effectiveness People & Change SERVICE PROGRAMS Implementation & Upgrade Business Transformation & Process Optimization ERP Strategy & Roadmaps Value Upgrade Assessment HealthCheckSM Review System Selection Assistance Technical Infrastructure Planning Enterprise Application Integration Customized Training
Our Clients
TECHNICAL EXPERTISE Planning & Architecture Hardware/Software Assessment KPMG LABSSM & Configurations Upgrade & Implementation Custom Development Lab Environments Database Administration Support Services & Optimization Demonstration & Interface Development Training Environments Data Conversion Automation Testing Facilities System Performance Tuning PeopleSoft v9.1, EBS 12.1, Middleware / Integration OBIEE 11g, BI Apps 7.9.6, Demantra 7.3, Hyperion Fusion
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
CHANGE & TRAINING FOCUS EBS, PeopleSoft, BI, Change Management & Training Expertise Process-based training methodology Job Impact and Change Strategies
INDUSTRY FOCUS Consumer Goods Communications & Media Energy & Utilities Financial Services Government & Public Sector Healthcare Manufacturing Professional Services Retail Transportation
To identify potential issues with receiving and purchasing transactions that could impact the accuracy of the AP accrual accounts recorded in the General Ledger Quantities differ between receipts and invoices Discrepancies in vendor billings Invoices matched to incorrect purchase order Receiving against wrong purchase order Miscellaneous transactions that do not belong to the accrual accounts Freight and tax payables entries that are incorrectly posted to the accrual accounts
The AAP reconciliation process has been feared or strongly disliked Now with Release 12, users have access to a comprehensive reconciliation report and the ability to write off obsolete transactions
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Setup/Process
Reconciliation Setup/Process
Yes Yes
Reconciliation Summary Reconciliation Detail Write-Off Summary Write-Off Details
Yes
No No
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Setup/Process
Reconciliation Setup/Process
Identify accrual accounts to be reconciled
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Setup/Process
Reconciliation Setup/Process
Enter transactions throughout the month as normal Load program populates the following tables: CST_AP_PO_RECONCILIATION CST_MISC_RECONCILIATION CST_RECONCILIATION_SUMMARY Only transactions having a net balance will populate the tables
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Setup/Process
Reconciliation Setup/Process
Summary Accrual Reconciliation Report is used to determine the accrual accounts have balances
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Setup/Process
Reconciliation Setup/Process
The AP and PO Accrual Reconciliation Report is used to view the accrual accounts having a net balance not equal to zero
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Setup/Process
Reconciliation Setup/Process
The Miscellaneous Accrual Reconciliation Report is used to view miscellaneous invoices not matched to PO or PO receipts
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Write-Offs
Reconciliation Write-Offs
Review transactions and decide to write off. Ensure all transactions are completed and posted or reports reviewing may not be accurate. Write-Off will automatically generate general ledger transactions.
Yes
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Write-Offs
Reconciliation Write-Offs
Yes
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Write-Offs
Reconciliation Write-Offs
After write-off and running accounting, transactions can be reviewed and see the accounting generated
Yes
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Logic/Example
11i
Reconciliation Rebuild retrieved data falling within relevant date range, regardless of status of fully invoiced, partially invoiced, un-invoiced or written off Reconciliation Reports are reported by PO lines
R12
Concentrates on PO distributions rather than lines and aggregate totals
Load program uses to date parameter as a cut-off date to obtain PO distributions having a net balance which simplifies process and improves performance Reconciliation reports only show distributions with balances resulting only relevant data that directly impacts the current Net Accrual Balance Reconciliation is based on age of PO Distributions not the transaction date of the whole transaction Accrual write-offs are removed from the reconciliation reports and write off entries are systematically created The reconciliation reports should only be used to reconcile current balances
Accrual Write-offs are removed from the reconciliation report, but the user has to manually
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Logic/Example
Period 1 January 2012 PO#1 PO#2 PO#1 PO#2 PO#1 PO#2 Ordered 10 Ordered 10 Received 5 Received 5 Invoiced 5 Invoiced 4 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/31/2012 01/31/2012
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Logic/Example
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Logic/Example
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Logic/Example
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Logic/Example
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Logic/Example
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Logic/Example
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Reconciliation Logic/Example
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Accounting Setup
Receiving
Within standard Oracle the user can define the inventory accrual account to be used at the organization level Many times this is not enough so now in R12 users can utilize the Subledger Accounting (SLA) setups to map the accrual account based on various user decided attributes
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
27
Accounting Setup
Payables
Within standard Oracle the user can define the AP Accrual account to be used at the Supplier and Supplier Site level Many times this is does not offer enough flexibility so now in R12 users can utilize the SLA setups to map the Payables accrual account based on various user decided attributes
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
28
Accounting Setup
Write-Offs
Within standard Oracle the default offset account that is used when writing off an accrual transaction is the charge account on the PO distribution if the destination type of the PO distribution is Expense If the destination type of the PO distribution is inventory than the default account is the variance account on the PO distribution (Purchase Price Variance) If this default account does not provided enough flexibility then the user can use the R12 SLA setups to map the Write-Off offset as they wish The mapping for the write-off can be found in the Cost Management module
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
29
Lessons Learned
Transactions must be accounted Reconciliation should be done every month The data on the Oracle reports is what is in the system Transactions not final accounted do not appear on the reports SLA rules not consistent on the purchasing and payables side can cause out of balances between report and genera ledger
2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
30
Thank you
Robert Smith robertwsmith@kpmg.com
2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.