PlanningforSubledgeraccountingsetupSLAMforprimaryandsecondaryledgersetup

WhenthereisareimplementingornewimplementationofR12OracleFinancialsSLAMwillbeoneofthenewconceptsto
understandhoweverbeforeconfiguringSLAMunderstandhowthehighleveldesignoftheledgers,chartofaccountsanddatasets
relatetothesetupofSLAMinrelationtoprimaryandsecondaryledgers.
DifferentBusinessScenariosmayexist:
Scenario1GlobalBusinessoperationwithmorethanoneparentcompanyandreportingrequirementUnitedKingdomIFRS()and
USGAAP($)withseparateforeignsubsidiariesaccountingineachcountryofoperationwithmanydifferentfunctionalcurrencies.
Scenario2GlobalBusinessoperationwithoneparentandonereportingrequirementUnitedKingdomIFRS()andseparateforeign
subsidiariesaccountingineachcountrywithmanydifferentfunctionalcurrencies.
Scenario3BusinessoperationwithoneparentcompanyUSGAAP($)andoneseparatelocalsubsidiaryaccountingwithone
functionalcurrencyUSD($)andwithalocalcurrencyofEUR
Scenario4BusinessoperationwithoneparentIFRS()andmanyUKsubsidiaries.
PrerequisitestoledgerandSLAMsetup
>assumedecisionswillhavebeenmadeonfunctionalcurrencybasedonoperationsandadherencetoIAS21
>assumedecisionswillhavebeenmadeonmulticurrencyreportingbasedonbusinessrequirements
>assumedecisionshavebeenmadeonsharedcorporatechartofaccounts
>assumedecisionshavebeenmadeonprimaryandsecondaryledgeruseinOraclebasedonsharedledgersets,transactionand
accountingchartofaccountsanduseofmultiorganddataaccessrequirements,calendarrequirementsandaccountingmethodand
currency.

AccordingtoeachoftheabovetheSLAMsetupwillvaryaccordingtosolutionbutwillbesomethinglikebelow:
Scenario1Solution
Thisisatypicalglobalbusinessexamplewheremorethanoneconsolidationisneededandtherearemanysubsidiarycompanies.
Functionalcurrencyislikelytobethatofeachentityandthereforereportingneedstobeinmorethanonecurrency.
Solutiona)
Inthiscasethemanysubsidiaryentitiescansharethecorporatechartofaccountsi.e.thetransactionchartofaccounts.Secondary
ledgerswillonlyberequiredbythe2parententitiesandtheconsolidationcanbedonefromprimarytosecondaryledgers.
Eachsubsidiaryentitywillhaveitsownledgerwithitsowncurrency,calendarandaccountingmethodhowevertheledgerswillall
usethecorporatechartofaccountsitwillbesharedacrossthegroup.
Thecorporatechartofaccountshastobeabletosupportthetransactionaccountinginallentities.

Separatecurrencyreportscanbeperformedinbothprimaryandsecondaryledgersifrequired.

SLAMwillneedadditionalconfigurationforthesecondarystatutoryreportingledgerstosupporttherequiredlevelofdataconversion
e.g.journal.

Solutionb)

Ifthecorporatechartofaccountscannotsupportthescenarioabovethenthesubsidiariesmayneedtousealocalaccountingchartof
accountandthereforeasecondaryledgerisrequiredforthischartofaccounts.

SLAMcanthenuseadditionalsetupssotheseentitiescanpostthesubledgertransactionsorjournalleveltothesecondaryledgerfor
internalreporting.

Scenario2
Asperscenario1butwithonlyoneconsolidationrequired.

Scenario3
InthisscenariothefunctionalcurrencyofthesubsidiaryandtheparentisUSD.
Thereforethesubsidiarycanusetheprimaryledgerwiththecorporateorstatutorychartofaccountsandusethemulticurrency
featuretoreportinUSD.Thelocalsubsidiarycanalsousethesecondaryledgerwiththeirlocalchartofaccountsandlocalcurrency
EUR.
Theconsolidationcanbedoneintheprimaryledgeroftheparentandthelocalsecondaryledgercanbeusedforinternalreporting
andlocalGAAP.
SLAMwillneedadditionalconfigurationtosupportthesecondaryledger.

Scenario4
AUKbusinesswithonefunctionalcurrencyandonecorporatechartofaccounts.ThePrimaryledgeroftheentitieswillusethe
transactioncorporatechartofaccountsandfunctionalcurrencyforbothwillbeGBP.Therewillbenorequirementtoreportin
anothercurrencyhowevertheremaybearequirementtoconsolidatetoasecondaryledgerwithadifferentchartofaccounts.
Inthiscasetheparententitymaysetupasecondaryledgertoconsolidatetheresults.
SLAMwillneedadditionalconfigurationtosupportthesecondaryledger.

AdditionalSLAMsetupsforusewithsecondaryledgers
Theconversioncanbeperformedatthefollowinglevels

SubledgerLevelSecondaryLedgers

JournalLevelSecondaryLedgers

BalanceLevelSecondaryLedgers

AdjustmentsOnlySecondaryLedger
Itisaprerequisitetocreateachartofaccountmappingifthesecondaryledgerusesadifferentchartofaccounts.
Theaccountingsetupbelowisanexamplesuitableforscenario1solution(a)inthisexampleaFrenchsubsidiaryisconsolidatedinto
the
USParent.
NavigatetoaccountingsetupinOracle>

PrimaryLedger

FrenchOperations

Secondaryledger

USStatutory

Chartofaccounts

Corporate

Chartofaccounts

USGAAP

Accountingcalendar

Monthly

Accountingcalendar

Fiscal

Currency

Euro

Currency

USD

Subledger
accountingmethod

Standardaccrual

Subledgeraccounting
method

USGAAP

Dataconversion
level
Disableconversion
date

Journal

01Feb2013

Chartofaccountsmapping
CorporatetoStatutorymapping

Currencyconversionrules
Sourcerepresentation

Frenchoperations

Sourcerepresentation
Defaultratetypes
Retaintransactionratetype

Corporate
Yes

ErrorHandling
Ifmissingconversionrate

oreporterror

*Uselastrate

Numberofdaystofindlastrate15

JournalconversionRules
Postjournalautomaticallyfromsourceledgero
Retainjournalcreatorfromsourceledgerno