Feature Replacement - Cash Management Module

Hi All,

as we all know there were many new features that were provided in the Release 12 version, but how many of us know about the modifications(Alterations / Deletions / Replacements) that took place in the existing features. It is really hard to find out the changes made to the existing features, unless otherwise we work on that area. I am making an attempt to cover such existing areas which got modified due to the introduction of new Release 12 features.

In this topic we will discuss about the change that has been made to the Cash Management Setup. As we all know the only setup which one needs to make for the Cash Management
Module is the System Parameter Setup under the navigation
Cash Management Responsibility > Setup > System > System Parameters ( Navigation remains the same for Rel 11 and Rel 12)

In Release 11, under the System Parameters form we have 3 TABS,
TAB 1 = General || TAB 2 = Auto Reconciliation || TAB 3 = Open Interface

Screen Shot of System Parameter Form in Release 11

Whereas in Release 12, under the System Parameters form we have only 2 TABS,
TAB 1 = System Controls || TAB 2 = Cash Management Transactions

Screen Shot of System Parameter Form in Release 12

Since there are new tabs are in place for Release 12 versions we will see whether they cover the functions that are being carried out through 3 tabs in Release 11 versions.
In Release 11,
General TAB = Receivable Activity , Float Handling, Archive/Purge Options, Matching Order option for AP and AR, Signing Authority Approval.
Auto Reconciliation TAB = Exchange Rate details, Tolerances details
Open Interface TAB = Interface code and Interface matching criteria
In Release 12,
System Controls TAB = Reconciliation Controls, Signing Authority Approval and Archive/Purge Options
Cash Management Transactions TAB = Exchange rate type options, Bank Account Transfer Authorisation type.

If you make a comparison between the above, you will find out almost many features continues to remain the same apart from few which were not appearing in Release 12 , and few which were new in Release 12, we will see what are they now.

Features that were available in Release 11 Cash Management Module but NOT
=================================================================
available in Release 12 Cash Management Module
==============================
1) Receivable Activity
2) Float Handling
3) Matching Order option for Payables and Receivables
4) Tolerances Details
5) Interface Code and Interface Matching Criteria
6) Check box for Using Reconciliation Open Interface

In case if you are wondering how cash managment will work without these, there is no need to panic, since all the above metioned features got shifted to different area in Release 12. You can do all these setups while creating Bank Accounts in Release 12.
You will find all these controls under Create Bank Account process ( i.e. after creating a bank and bank branch) in Step 3 which is Account Controls.

Screen Shot of Account Controls page (Bank Account) in Release 12
Features that were NOT available in Release 11 Cash Management Module but
=================================================================
available in Release 12 Cash Management Module
==============================

Bank Transfer is a new feature in Cash Managment Module, earlier it was carried out in Treasury modules and by few workarounds in the financial modules. So the below features are in support of bank Transfers.
1) Bank Account Transfer Authorisation Type
2) Bank Transfer Rate Date

To sum up, in Release 12 setting up of cash management is not only limited to System Parameter Form, it also requires Bank Account setups to be done.
And many may argue that System Parameter form is not the only setup in the Cash Management Module, since we need to setup Banks, Payment Methods, Receivable Activities etc etc..., but all these are related setups, whereas System Parameter setup is the one and only setup that can be made in a Cash Management Module and not anywhere else.

Will meet you guys with other features ...

Never ending Bugs list and Setup Issues !

Never ending Bugs list and Setup Issues !

Here is the Scene where a junior consultant who is new to Release 12 is having a conversation with the senior Consultant with respect to the tuffness in doing setups...

JC = Hello Sir
SC = Hi JC !
JC = Sir, i have been recently assigned the task of carrying out setups in REL 12.
SC = Is it, great news ! I am sure you will be learning more.. !
JC = Certainly sir, but i am facing lot of issues while carrying out setps... !
SC = Is it , what went wrong?
JC = I am not sure, i have been following userguides and manuals but still ending up in
trouble....
SC = Ok, tell me the problems which you are facing in your setups let me c , if i can help
JC = Yes Sir, initial problem which i am facing was i was unable to Choose my Business
Group while creating ledgers using Accounting Setup Manager.
SC = That will be Bug No. 5971509
JC = In the Accounting Setup Manager, there is no LOV button available for selecting the Ledgers, we have to do manual query with all permutations and combinations if we forgot the name of the Ledger. I dont know the easy way out..
SC = ohh that one, it will be Bug No. 5986471
JC = While performing the setups in Accounting Setup Manager, i came to the last step for pressing the complete button, whereas the complete button was not available !
SC = that will be Bug No. 6080622
JC = When i tried creating Bank Accounts, i cannot see my Legal entity name in the Bank Account owner field, i know what went wrong.
SC = This is normal, refer Note:415529.1
JC = In AR, i am unable to make setup for Receivable Activities, i get message to define Party tax profile, but not mentioned how to do the same any where.
SC = This is stated in Note:419019.1, you can get the steps from that
JC = In Cash Management, i am getting error message "no data Found" frequently, what could be the reason for it.
SC = Reason could be Note:419500.1
JC = And in ASM i was unable to create Operating units
SC = oh that one can be solved by Note:428828.1
JC = And while creating Legal Entity i was unable to select INDIA, why is that, india and many other countries are not at all appearing in the list of values
SC = It is because of Note:438089.1
JC = Sir what is all these numbers which you are gaving me..... ?
SC = These are the reference numbers for Bugs and Setup issues which are not taken care by the technical experts while finalizing the product.
JC = What am i supposed to do with these Numbers sir ?
SC = You have to get access to metalink website, where oracle gives support to all customers, in that site, you can search using these numbers to view the detailed documentation.
JC = How can i get access to metalink, since i am not a customer?
SC = Dont worry, you can ask your client to create one for you, or you can get the CSI or Customer Support Identification number from your client and create an ID on your own.
JC = Thank u very much sir !
SC = Dont thank me, what ever errors you have faced so far is not becoz of you, it is becoz of oracle only, in future when ever you get an error use metalink as the first resource for solving your problem.... Thank Oracle
JC = Sir, you are being diplomatic... how can i thank oracle , they are the one who created these errors in first place... and later they are making up for it in the support division.
SC = In a way it is true !! I cannot comment more on it !! (even though this is a blog !)
JC = Sir i will be having more doubts in coming days to come, will be getting in touch with you often .. !
SC = You are always welcome.... Check one thing, Oracle also makes up for all these errors and bugs by providing Roll up patches, there are many versions for it, i heard that recently they released Rollup patch 4 for rel 12, ask your DBA to apply that patch in your instance , which will reduce the technical errors !
JC = Will do that sir !
SC = Since its a new system , it will take time to stablize, u know some thing, oracle always tests thier products with the customers only.... !
JC = I can see that now !
SC = OK Bye
JC = Thanks for your time sir , looking forward for many more conversations like this one, Bye

New Feature - Sub Ledger Accounting (SLA)

New Feature - Sub Ledger Accounting (SLA)

We have already discussed about Subledger Accounting Method during the post "Its
not 3 c's any more". Here we will see it in bit more detailed manner what exactly it is.
My first request to Functional Consultants through out the world is that, you need not know SubLedger Accounting to perform an Implementation. One can use the Standard
seeded Subledger accounting methods itself.
However if the client wants a special accounting treatment to be followed on a case to case basis, then we should be knowing something on SLA.

Firstly, one can create a new Subledger accounting on his own (which will be a Huge
time consuming process)
Secondly, one can copy an existing Subledger accoutning and make changes wherever
required ( Highly recommended)
Thirdly, Subledger methods owned by Oracle cannot be altered

Subledger accounting method which is given by oracle are standard, which means they
are not specific to any chart of accounts, they work in the same manner.
However one can create an Subledger accounting method for a specific chart of
accounts.

The introduction of Subledger accounting also changes the way in which transactions
are transferred to GL.
Earlier in REL 11,
Subledger > Create Accounting >Run Transfer to GL > GL interface > GL Main Table
Now in REL 12,
Subledger > Create Accounting > Sub Ledger tables (XLA) > Run Transfer to GL > GL
Interface > GL Main Table

The only difference in the accounting methods followed in REL 11 and REL 12 is that,
access to create an accounting method is given in the front end itself to the users in REL 12 which was not there in REL 11 !!!

New Feature - " SL and MAR "

SL and MAR - Secondary Ledgers and Multiple Accounting Representations
===========================================

Ever since introduction of REL 12, most of them know that Set of Books got replaced by Ledgers. But in REL 12 we have something called Primary Ledger and Secondary Ledger, however we dont have a primary or Secondary Set of Books in earlier release, it is only one set of books.
How to get a knowledge upgrade for people who know only set of books and doesn't have any idea on ledgers.
For them Primary Ledger in REL 12 is equal to the Set of Books in R 11, as simple as that, however Secondary Ledger in Rel 12 is something new, which was not thier in previous release. Even though some may link Reporting Set of Books in REL 11 as Secondary ledgers in REL 12, which is not correct, since we still have the same functionality of Reporting Set of Books as Reporting Ledgers in REL 12.
So what does these Secondary Ledger do in REL 12 is a big question ??
Secondary Ledgers are mainly used for creating Multiple Accounting Representations.

What do you mean by Multiple Accounting Representations?
As we know oracle offers by default 5 sub ledger accounting methods, apart from which a user can create on his own as many sub ledger accounting methods as he wants. One may want to know how the financial position of the company under all five methods of Accounting, in which case you can create Secondary Ledgers and attach different Accounting method to it.

How transactions are created with Multiple Accounting Representations?
By selecting a Data Conversion level while creating a Secondary Ledger. One can select any data conversion level among Balance, Journal, Subledger and Adjustments only. What happens is that, once a Journal entry or a transaction is recorded in Primary Ledger, the same transactions gets transferred to Secondary Ledger, even though the Accounting method of Primary and Secondary ledgers may be different..

This functionality can be useful when the Statutory requirement is to maintain books of accounts in certain accounting method and company policy is to maintain books of accounts in different accounting method, and also many other reasons one can think off..

New Feature - Data Access Sets

One of the new features in General Ledger is Data Access Sets. This feature plays a very important role in having a Secured Data Access to the user or one can called it as RBAC (Role Based Access Control).
In previous versions, access to data by users has been restricted only by excluding the menus and functions of the responsibility and then that responsibility is assigned to the particular users who are eligible. This job is carried out by a system administrator or a consultant having system administrator responsibility. This functionality stays as such in Rel 12 also.
Apart from the above, in Rel 12, General Ledger has also contributed a new feature towards securing data.
A Ledger created in General Ledger Module is accessed by various modules using different responsibilities, if one decided to exclude menus for all such responsibilities it will be a time consuming process, instead one can create a security by creating an Data Access Set for a ledger in General Ledger itself, which will apply to all responsibilities using that particular ledger. However, a setting is required for each such responsibilities, that is you have to attach the respective Data Access Set to the respective Responsibility by using GL: Data Access Set profile option. This setting can be done only from system administrator responsibility.
Note: One Responsibility can have only one data access set assigned.

Now let us see what are the types of security that one can have for a ledger or ledger set.
1) Full Ledger 2) Balancing Segment Value 3) Management Segment Value

1) Full Ledger - Full ledger access means having full read and write access to the ledger and all of its balancing segment values or management segment values.

2) BSV - If you assign specific balancing segment values to legal entities and ledgers, you will only be able to use those balancing segment values during transaction processing and journal entry.

3) MSV - When securing management segment values for a ledger, take note of the management segment values you used when you assigned the default accounts to the ledger, such as the retained earnings account and the cumulative translation adjustment account.

The privileges available for all the three Data Access sets are :

Read Only: Allows users to view data in ledgers and balancing or management
segment values.
Read and Write: Allows users to view and enter data in ledgers and balancing or
management segment values.

If you closely observe the BSV and MSV data access types it is more or less similar to a security rule that is defined in General Ledger module. And one more thing, BSV and MSV type Data Access sets also considers Security Rules.
For Eg: Assume that you have blocked a Segment value 01 for your company segment,
whereas you have included segment value 01 in the Data Access set, in which case, the
user will not have access to the segment value 01.

Will confuse you guys more with my other posts shortly !!

Its not 3 C's any more.... !

Dear All,
as we all know that in Release 12, "Set of Books" have been Substituted by "Ledgers".
This Substitution is not just a transformation of name alone, the components has also undergone a change, more than a change you can call it as an addition.
In previous versions, set of books consists of,
C = Chart of Accounts
C = Calendar
C = Currency
In Release 12, ledgers Consists of
C = Chart of Accounts
C = Calendar
C = Currency
C = Accounting Method or Convention ( ***** New Component*****)

Lets see more about this new component....

Selection of Accounting method is nothing new for people using earlier versions of Oracle Applications, it is carried out at the Subledger level. The available methods were Accrual and Cash in previous versions.
In Release 12, the selection of Accounting method is done at the ledger creation level itself. And this is the only place where the accounting method is selected and not in any other place !
(Accounting method can be changed any time, it will not affect the existing transactions)

Lets us see what are the available (Seeded) Accounting methods in Release 12,
1) Accrual with Encumbrance Accounting
2) Cash with Encumbrance Accounting
3) Standard Accrual
4) Standard Cash
5) US Federal Accounting

Now lets see basis of Selection of Accounting methods:
All upgraded, non-public-sector ledgers will have a Subledger accounting method assigned called Standard Accrual or Standard Cash ( This is nothing but the same Cash and Accrual which we had in rel 11)

All upgraded public sector ledgers will have a subledger accounting method assigned called
Encumbrance Accrual or Encumbrance Cash. ( This come in to place when we use purchasing modules, and transfer of encumbrance journals becomes necessary)

For Federal customers, all upgraded ledgers will have the US Federal Accounting subledger accounting method assigned.

Note: You cannot delete the Subledger accounting method but you can change the Subledger accounting method and Subledger accounting options at any time. And also you can create a new Subledger method and attach it to your ledger.

Hope this clarifies about the fourth "C" in Release 12 !

New Feature: General Ledger - Ledger Sets

Dear All,
Ledger Sets means its a set of Ledger nothing more... ! What is the purpose of it and how it reduces the work of Functional Consultants ?
As many would aware that in previous versions there are many routine jobs which will be performed individually for every different set of books. For example, Opening a Period - This has to be carried out as an individual step for each and every set of books in the previous version.
In Release 12, we can group all the ledgers in to an Ledger Set and perform actions to that ledger set which will in turn reflect in the individual ledgers.

Another important use of this ledger sets are in Consolidation. Before moving in to its use in consolidation, let us see what was the problem in earlier versions which was faced.
In rel 11, assume that a company wants to have 2 Set of Books even though they share same Currency, Chart of Accounts and Calendar, the consultants stand would always be to AVOID having two set of books, because when the client has more than one set of books it would normally call for Global Consolidation System to be in place, if they had only one set of books the consolidation can be achieved through Financial Statement Generator (FSG) reports.

How this consolidation is solved in Rel 12 is, that assume you have two ledger named as Ledger A and Ledger B, both of them are sharing the same Features. But for consolidation in rel 12, you need not do a GCS for this case, you can create a Ledger set lets name it as Ledger set C which comprises Ledger A and Ledger B. Then assign this Ledger Set to the responsibility, from which you can run reports which can satisfy your requirements.

Note: Ledger Sets can be used to link ledgers which are sharing different Currencies also, but it does not perform conversion or translation. In order to achieve Conversion and translation benefits one need to perform Global Consolidation System which remains the same as of the previous version... !

New Feature - Multiple Organization Access Control ( MOAC )

Dear all,
the buzz word ever since the introduction of Release 12 is MOAC feature... ! We will just see what it is all about...

MOAC is a new feature which facilitates the user to Access more than one operating unit without switching responsibilities.... !
How is it achieved ?
It is achieved by defining a security profile using HRMS forms and then attaching that security profile to the respective responsibility using MO: Security Profile Option...

The other notable feature in MOAC is that one can create a normal security profile as well as global security profile. The advantage of having a Global Security Profile is that an user can access operating units which are not under one roof or one Business Group, whereas in case of normal security profile, the operating units are within the Business Group !

Many related documentations have been published in explaining this concept to the audiences.... one such resource is ERPSTUFF.COM where detailed explanation on performing setups with screen shots has been provided to members of the site ..... and ofcourse its written by me !

New Feature: General Ledger - Accounting Set up Manager

Hi everyone,
who ever had a hands on experience on release 12 version of Oracle Applications, will certainly know something about Accounting Setup Manager. Lets speak about what it really is.....
As many know that the term Set of Books has been replaced by Ledgers in release 12.... same way the replacement of the Set of Books form is Accounting setup Manager .
Accounting Set up Manager is used for:
Creating Ledgers ( Primary and Secondary)
Create Operating Unit
Create Sequences
Create Legal Enitity
Define Intercompany Accounts and Rules
Enabling Budgetary Control
Define Subledger Accounting Options
etc..etc..

What is so special about this Accounting Setup manager is that it is not form based it is an html page... !! Which means that it comes with all advantages as well as DISADVANTAGES !!
( I would say that the biggest disadvantage of all is that you got to use your mouse predominantly for most of your operations and every screen takes time to refresh which tests everyones patience )

Will discuss more on other new features in my future posts !