Skip Headers

Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12
Release 12.1
Part Number E13482-03
Go to Table of Contents
Contents
Go to previous page
Previous
Go to next page
Next

Oracle General Ledger

This chapter covers the following topics:

Changes in Terminology

The following lists the terminology changes from Release 11i to Release 12:

Release 11i Term Release 12 Term Comments
Global Accounting Engine Subledger Accounting Refer to the Subledger Accounting section for more information.
Global Intercompany System (GIS) Advanced Global Intercompany System (AGIS) AGIS is a new application within the Oracle E-Business Suite that allows companies to streamline intercompany processing and facilitates the reconciliation of intercompany transactions. All of the GIS setup options and intercompany transactions will migrate to AGIS. Refer to the Advanced Global Intercompany System section for more information about the GIS upgrade.
Intercompany Accounts Intracompany Balancing The Release 11i Intercompany Accounts feature, including the intercompany balancing rules and clearing accounts, is replaced by the Intracompany Balancing feature in Advanced Global Intercompany System (AGIS) in Release 12. Refer to the Advanced Global Intercompany System section for more information about this upgrade.
MRC Primary Set of Books Primary Ledger  
MRC Reporting Set of Books Reporting Currency  
Multiple-Posting Set of Books (Global Accounting Engine) Secondary Ledgers  
Secondary Sets of Books Secondary Ledgers  
Set of Books Ledger  
Translated Currency Balance-Level-Reporting Currency  

Accounting Setup

In Release 12, the Accounting Setup Manager is a new feature that centralizes the setup and maintenance of common financial components within an accounting setup. An accounting setup defines the accounting context for one or more legal entities or other business entities.

The upgrade creates a separate accounting setup for each primary ledger that is upgraded from a set of books. The status of the accounting setup will be completed. Each accounting setup is a grouping of accounting-related setup components. The following lists the Release 12 setup components and how the Release 11i features map to them:

The following details the upgrade of each of these financial components and other upgrade considerations in General Ledger.

Sets-of-Books Changes

All set of books’ options will be copied over to ledger options in Release 12. All Release 11i functionality, with exceptions noted in the following sections, will be migrated to Release 12.

Set of Books Profile Option

In Release 11i, the GL: Set of Books profile option controlled the set of books that a responsibility could access. In Release 12, the GL: Ledger Name profile option replaces the GL: Set of Books profile option. All responsibilities to which set of books have been assigned using the GL: Set of Books profile option will be associated to a data access set using the GL: Data Access Set profile option. The data access set will provide full read and write access to the upgraded ledger allowing you to continue to use the ledger the same way as you did in Release 11i.

Secondary Tracking

This section describes the upgrade impact for the secondary tracking option.

In Release 11i, the set of books form had two check boxes to support secondary tracking; one for revaluation and another for closing and translation.

In Release 12, the ledger definition only has one check box to enable the secondary tracking segment for revaluation and closing and translation. For upgrade cases, Oracle will preserve the Release 11i settings. However, when you update the ledger options for upgraded ledgers the Track by Secondary Segment check box may or may not be checked but your Release 11i settings will be preserved behind the scenes.

The following describes when the Track by Secondary Segment check box will be checked after the upgrade:

In Release 11i, the secondary tracking segment setting of the primary set of books is independent of its reporting sets of books. In Release 12, the secondary tracking segment setting is the same for both a ledger and its reporting currencies because reporting currencies inherit most attributes from their source ledger. For upgrade cases, Oracle will preserve the Release 11i configurations.

Subledger Accounting Method and Options

All upgraded ledgers in Release 12 will have a subledger accounting method assigned during the upgrade. Any reporting currencies assigned to the ledger inherit the subledger accounting method from the source ledger. The subledger accounting method enables Oracle General Ledger to integrate with Oracle subledgers using Subledger Accounting. All upgraded, non-public-sector ledgers will have a subledger accounting method assigned called Standard Accrual or Standard Cash. All upgraded public sector ledgers will have a subledger accounting method assigned called Encumbrance Accrual or Encumbrance Cash. For Federal customers, all upgraded ledgers will have the US Federal Accounting subledger accounting method assigned. You will be able to use the ledger immediately after the upgrade.

You cannot delete the subledger accounting method but you can change the subledger accounting method and subledger accounting options at any time. If you are not integrating Oracle General Ledger with Oracle Subledgers, then you do not need to change the assigned subledger accounting method because it will be ignored for General Ledger processing purposes.

The following lists the subledger accounting options that will be automatically assigned to upgraded ledgers:

Set of Books Linked to Asset Books

If an Assets corporate book and tax book(s) are linked to the same General Ledger set of books, the set of books will become a primary ledger in Release 12.

If an Assets corporate book is linked to a different set of books than its tax book(s), the set of books linked to the Assets corporate book will become a primary ledger and the set of books linked to a tax book will become a subledger level secondary ledger. If you enabled the Allow GL Posting option for this type of tax book to have journal entries created in the linked set of books, then after the upgrade, Subledger Accounting (SLA) will automatically create the accounting for Asset transactions in the upgraded subledger level secondary ledger. If, however, the Allow GL Posting option was not enabled, then accounting entries will not be automatically created for the upgraded subledger level secondary ledger.

If you used the General Ledger Consolidation functionality to map and transfer subledger transactions into the set of books linked to the tax book, then you can continue to do so in Release 12. With the new features in Release 12, however, you have the following two options to automate this process:

Option 1: Using Subledger Accounting (SLA)

You can use Subledger Accounting (SLA) to automatically create the accounting entries for all subledger transactions in both the primary ledger and the subledger level secondary ledger. Thus, every subledger transaction can be accounted in both ledgers simultaneously. To do this, perform the following steps after upgrade:

  1. Query the Accounting Setup by the primary ledger or secondary ledger using General Ledger’s Accounting Setup Manager.

  2. Update the Subledger Accounting Options for the secondary ledger, and then update the Accounting Options for the subledger applications. Enable Subledger Accounting for each subledger application by selecting Yes in the Subledger Accounting Enabled box.

  3. For the Secondary Ledger’s Subledger Accounting Method, verify the Application Accounting Definitions for all subledgers to ensure that the accounting rules meet your needs.

Option 2: Using the General Ledger Posting Program

You can use the General Ledger Posting program to automatically transfer journals from subledger sources to the subledger level secondary ledger. To do this, perform the following steps after upgrade:

  1. Query the Accounting Setup by the primary ledger or secondary ledger using General Ledger’s Accounting Setup Manager.

  2. Update the Primary to Secondary Ledger Mapping step for the secondary ledger. In the Journal Source and Category Conversion region, select Yes in the Transfer Journals to this Secondary Ledger box for the subledger source and category that you want General Ledger Posting to transfer.

Note: You can use a combination of both options. For example, you can use Subledger Accounting to handle some subledgers and General Ledger Posting to handle other subledger transactions. Journals that are entered directly in the primary ledger, such as manual journals, will be transferred to the secondary ledger by the General Ledger Posting program.

Secondary Sets of Books in Payables and Receivables

If you are using secondary sets of books in Oracle Payables and Receivables, the secondary sets of books become subledger-level, secondary ledgers in Release 12. In Release 12, Subledger Accounting (SLA) will automatically create the accounting for Payables and Receivables transactions in both the primary ledger and the subledger level secondary ledger simultaneously.

If you used the General Ledger Consolidation functionality to map and transfer subledger transactions into these secondary set of books, then you can continue to do so in Release 12. With the new features in Release 12, however, you have two options to automate this process. For more information about enabling these options, refer to the previous section, Set of Books Linked to Asset Books.

Multiple Reporting Currency Changes

Reporting sets of books from Release 11i will become subledger-level reporting currencies that are assigned to a primary ledger unless the MRC_DEBUG profile option is set to zero, in which case, the reporting set of books will become a journal-level reporting currency in Release 12.

Note: A subledger-level reporting currency maintains a currency representation of all subledger journals, GL journal entries, and balances for the primary ledger.

A journal-level reporting currency, which can be assigned to a primary ledger or secondary ledger, maintains a currency representation for GL journals and balances in the primary or secondary ledger.

Multiple Reporting Currency Sets of Books

Release 11i multiple reporting currency (MRC) primary sets of books and assigned reporting sets of books become primary ledgers with reporting currencies in Release 12. Both the primary ledger and its reporting currencies will be included in the same accounting setup in Release 12. In addition, a data access set that includes the primary ledger and all of its associated reporting currencies will automatically be created during the upgrade.

Reporting Sets of Books Assigned to Secondary Sets of Books

In Release 11i, reporting sets of books that are assigned to Payables and Receivables secondary sets of books will be upgraded as subledger level secondary ledgers that are assigned to the primary ledger.

Terminology Changes for Reporting Set of Books Options

The following discusses the terminology changes associated with the General Ledger Reporting Currency Option:

Release 11i Option Release 12 Option Additional Details
Default Reporting Default Rate Type This option is displayed in the Currency Translation Options region of the Update Reporting Currency page of Accounting Setup Manager in Release 12. This option defaults from the Default Reporting field of the Release 11i GL Conversion Rules form. If no GL Conversion Rules were specified, then this option defaults from the Default Reporting field of the first record in the Conversion Options window.
First MRC Period First Future Conversion Period This option is displayed in the Data Conversion Initiation region of the Update Reporting Currency page in Release 12.
GL Conversion Rules Journal Source and Category Conversion This option is displayed in the Journal Source and Category Conversion region of the Update Reporting Currency page in Release 12.
Inherit check box Retain Transaction Rate Type This option is displayed in the Currency Translation Options region of the Update Reporting Currency page in Release 12. This option defaults from the Inherit check box in the Release 11i GL Conversion Rules form. If no GL Conversion Rules were specified, then this option defaults from the Inherit check box from the first record in the Conversion Options window.
No Rate Action Missing Conversion Rate This option is displayed in the Currency Translation Options region of the Update Reporting Currency page in Release 12.
MRC: Maximum Days to Roll Forward Conversion Rate profile option Number of Days to Find the Last Rate This option is displayed in the Currency Translation Options region of the Update Reporting Currency page in Release 12.
GL/MRC Journals: Inherit the Journal Creator from the Primary Book's Journal profile option Retain Journal Creator from Source Ledger This option is a Yes/No drop down box that is displayed in the Journal Conversion Rules region of the Update Reporting Currency page in Release 12.
Reporting Book Initialization Option:
  • Derive From Original Transaction Rate

  • Use Initialization Rate

Retain Original Conversion Rate Type:
  • Yes

  • No

This option is a Yes/No drop down box that is displayed in the Data Conversion Initialization region of the Update Reporting Currency page in Release 12:
  • If the Release 11i setting was Derive From Original Transaction Rate, then the Release 12 option will be set to Yes.

  • If the Release 11i setting was Use Initialization Rate, then the Release 12 option will be set to No.

If Use Initialization Rate specified, the Conversion Date Historical Conversion Rate Date This option is displayed in the Historical Conversion region of the Update Reporting Currency page in Release 12.
If Use Initialization Rate specified, the Conversion Type Historical Conversion Rate Type This option is displayed in the Historical Conversion region of the Update Reporting Currency page in Release 12.

Deleted Profile Option

The Release 11i profile option called GL/MRC: Post Reporting Journals Automatically has been removed in Release 12. By default, all reporting currency journals will be automatically posted when posted in the source ledger.

Synchronized Options for Primary and Reporting Sets of Books

In Release 11i, users could change settings for certain options on a primary set of books independently of its reporting set of books. The upgrade will preserve the Release 11i settings, but in Release 12 these options cannot be manually updated for reporting currencies because the reporting currency will inherit its settings from its source ledger. If you modify any of the ledger options for the source ledger after the upgrade, the settings on the reporting currency will automatically be changed to be synchronized with the source ledger. Be aware that you may not be able to revert to certain Release 11i configurations once options are changed. The following summarizes all of the ledger options that will be automatically changed for the reporting currency if updated in the source ledger in Release 12:

Reporting currencies in Release 12 will inherit the primary ledger’s suspense posting option. If suspense posting is enabled for the primary set of books and not enabled in the reporting set of books in Release 11i, then in Release 12, the reporting currency will have suspense posting enabled and use the same suspense account as the primary ledger.

If suspense posting is not enabled for the primary set of books but enabled in the reporting set of books in Release 11i, then in Release 12, the reporting currency will also not have suspense posting enabled to be synchronized with its source ledger.

Different Average Balance Settings for Primary and Reporting Sets of Books

In Release 11i, users can set the Average Balances or Average Balance Consolidation options for the primary set of books independently of the reporting set of books. In Release 12, users can only set these options for the ledger and the reporting currency will inherit the attribute from its source ledger. For upgrade cases, Oracle will preserve the Release 11i configurations.

Note: If average balances is disabled in the primary ledger, but enabled for its reporting currency, General Ledger Posting will terminate with an error when posting subsequent journals. Users will need to disable the conversion of the reporting currency that has Average Balances enabled to successfully post journals in the primary ledger.

Single-Reporting Set of Books Assigned to Multiple Primary Sets of Books

If you currently have multiple primary sets of books linked to one reporting set of books in Release 11i, this configuration will be upgraded to multiple primary ledgers that share the same reporting currency. You will not, however, be able to use some of the new Release 12 features using this configuration. For example, you will not be able to query accounting setups by the name of the upgraded reporting currency; you will only be able to query accounting setups by the name of the primary ledger. Currency translation in Release 12 is another feature that may not behave as intended with this setup.

If multiple primary ledgers are linked to a single reporting currency, then the reporting currency will synchronize its own settings to be synchronized with the primary ledger that was most recently updated. For example, if you have different settings for suspense posting where one primary ledger has it enabled and another does not, once you update one of the primary ledgers, the shared reporting currency will inherit the settings from the primary ledger that was last updated.

Be aware that users who had access to the reporting set of books in Release 11i will have access to all of the reporting currencies for a single primary ledger. In addition, users who had access to the primary ledger will now have access to the reporting currency as well. This is required to prevent posting errors. In Release 12, the journals for both the primary ledger and its reporting currencies will be grouped in the same journal batch. In order to successfully post the batch, the user who initiates the posting process must have access to both the primary ledger and its reporting currencies.

Reporting Set of Books Not Assigned to a Primary Set of Books

Accounting Setup Manager does not support unattached reporting set of books that are not assigned to a source ledger. In Release 11i, if you had reporting sets of books that were not assigned to a primary set of books, then in Release 12, those reporting sets of books will be upgraded to primary ledgers. You can continue to use the upgraded primary ledger for journal processing.

If you do not want these unattached reporting sets of books to be upgraded to primary ledgers, then before the upgrade, you should assign the reporting set of books to a primary set of books using the Assign Reporting Set of Books form in Release 11i.

Reporting Sets of Books with Disabled Relationships to a Primary Set of Books

In Release 11i, if you disabled a reporting set of books’ relationship to its primary set of books, that reporting set of books will still be upgraded as a disabled reporting currency assigned to the upgraded primary ledger. This will ensure that historical information is retained.

Reporting Sets of Books with Translated Currencies

In Release 11i, if you performed currency translation in a reporting set of books, then the translated balances will upgrade to balance-level-reporting currencies in Release 12. After upgrade, you can continue to run translation for these balance-level-reporting currencies, but you will not be able to translate to new currencies. Also, you will not be able to update the currency translation options for these balance-level-reporting currencies, such as the period-end rate type, period-average rate type, and cumulative-translation adjustment account.

Reporting Set of Books with Inconsistent Journal Conversion Rules

In Release 11i, the journal conversion rules defined for a reporting set of books provided instructions to the General Ledger Posting program on converting specific journal sources to a reporting currency. Typically, journals from MRC-enabled subledger sources should not be converted using journal conversion rules because they would automatically be converted at the subledger level. Having MRC-enabled subledger sources also converted using journal conversion rules may result in double counting; once at the subledger level and again at the general ledger level.

Prior to the upgrade, you should use the Assign Reporting Set of Books form to verify that the journal conversion rules are correctly defined. The optional Preupgrade Diagnosis Program will identify all sets of books that have inconsistent journal conversion rules defined.

For more information, refer to the Oracle E-Business Suite Upgrade Guide: Release 11i to Release 12 Guide, "Appendix A: Financials Upgrade Impact" Financials and Procurement Products, General Ledger.

Reporting Set of Books with Inconsistent Setup across Products or Operating Units

Users may have reporting sets of books with inconsistent setup configurations between different products and/or operating units in Release 11i. An example of this is an AR book with three operating units enabled and an AP book with only two operating units enabled. This type of configuration is not supported in Release 12. In Release 12 reporting currency conversion options are synchronized across all products and operating units for that reporting currency.

If you wish to modify these configurations prior to the upgrade, refer to the optional preupgrade diagnosis program discussed in the Release 12 Upgrade Guide, Appendix B. Otherwise, the reporting sets of books will upgrade as-is, and you will not be able to update the setup options for a specific product and/or operating unit after the upgrade.

Reporting Set of Books with Incomplete Setup for Products or Operating Units

Users may have reporting sets of books enabled only for a partial set of products and/or operating units in Release 11i. All of the sets of books with missing setups are listed in the optional preupgrade diagnostic program discussed in the Oracle E-Business Suite Upgrade Guide: Release 11i to Release 12, Appendix B. This type of configuration is not supported in Release 12.

Refer to the Release 11i Multiple Reporting Currencies User Manual to complete the setup, otherwise each set of books will upgrade as-is, and users will not be able to define the setup for a specific product and/or operating unit after the upgrade. For those reporting sets of books not enabled for General Ledger, but enabled for other subledger products, the upgrade will automatically create a default accounting setup for General Ledger.

Move/Merge

In Release 11i, users needed to submit a separate move/merge request and a separate move/merge reversal for a primary set of books and each of its reporting sets of books.

In Release 12, source ledgers and their assigned reporting currencies are more tightly integrated and processing has been streamlined. In Release 12, if users submit a move/merge request for the source ledger, the move/merge request will automatically be submitted for all of its assigned reporting currencies. This also applies to move/merge reversals. If users subsequently reverse the move/merge request that was submitted in Release 12, then the reversal will apply to both the source ledger and all of its assigned reporting currencies. Users will not be able to submit separate move/merge requests or move/merge reversals for the source ledger or its reporting currency.

Note: If a move/merge request that was submitted in Release 11i is later reversed after upgrading to Release 12, then the reversal will only affect the ledger or reporting currency that submitted the original move/merge request. For example, if the original move/merge request was submitted by the primary set of books, then reversing it in Release 12 will only affect the primary ledger. If users want to keep the reporting currencies synchronized with the primary ledger after the move/merge reversal, they will need to adjust reporting currency balances by entering manual journal entries.

Note: The request names of upgraded move/merge requests that have the same name within the same chart of accounts will be appended with the Ledger ID.

Global Accounting Engine Integration

This section describes details for users who integrated General Ledger with Global Accounting Engine.

Single Secondary Set of Books Assigned to Multiple Primary Sets of Books.

If you are using the Global Accounting Engine and you have more than one main set of books linked to the same multiple-posting set of books, this configuration will upgrade to multiple primary ledgers (each in a different accounting setup) that have the same secondary ledger assigned. You can continue to use this configuration in Release 12, but you may not be able to use some new Release 12 features. For example, you will not be able to query accounting setups in Accounting Setup Manager by the secondary ledger; you will only be able to query accounting setups by the primary ledger. You will be able to view the secondary ledger in all of the accounting setups for the shared primary ledgers using Accounting Setup Manager.

Global Accounting Engine Dual Posting

The Global Accounting Engine Dual Posting solution in Release 11i allowed you to transfer a single Payables or Receivables transaction to two sets of books using different accounting rules. Because Global Accounting Engine Dual Posting only addressed transactions from specific subledgers, such as Payables and Receivables, all other transactions that require a second accounting representation could only be addressed by the General Ledger Consolidation functionality to map and transfer these transactions into a second set of books.

In Release 12, the main set of books are upgraded as a Primary Ledger, the posting set of books are upgraded as a Subledger level Secondary Ledger, and Global Accounting Engine is replaced by Subledger Accounting. If you used Global Accounting Engine to transfer subledger transactions to the posting set of books, then in Release 12, Subledger Accounting (SLA) automatically creates the accounting for these subledger transactions in both the primary ledger and the subledger level secondary ledger simultaneously. If you used the General Ledger Consolidation functionality to manually transfer other subledger transactions to the posting set of books, then in Release 12, you can continue to do this. With the new features in Release 12, however, you have two options to automate this process. For more information about enabling these options, refer to the Set of Books Linked to Asset Books section.

Drilling Down to Individual Subledgers from Oracle General Ledger

From General Ledger, you can drill down to subledger details via SLA from the Account Inquiry, Enter Journals, or Journal Entry Inquiry windows for journals that have specific journal sources assigned to them. For example, if a journal source is Receivables, you can drill down to the transaction details in Oracle Receivables. For further information, see individual subledger documentation such as the Oracle Receivables User Guide.

Period Rates

All period rates defined in Release 11i upgrade to daily rates in Release 12. Period end rates upgrade to daily rates with a conversion rate type name of Period End <ledger id>. Period average rates upgrade to daily rates with a conversion rate type name of Period Average <ledger id>.

If you performed currency translation in your Release 11i sets of books, those sets of books will become ledgers in Release 12 with currency translation options assigned. The daily rates that represent the period end and period average rates will be automatically assigned to the ledger. You can view all upgraded period rates in the Daily Rates form or from the Daily Rates page in Currency Rates Manager in Release 12.

Revaluation

This section discusses upgrade details regarding revaluation and revaluation sets in Oracle General Ledger Release 12.

Revaluation Adjustments Involving Period Rates

In Release 11i, revaluation adjustments could be calculated using period rates, daily rates of a specified rate type, or user-entered rates specified at run time for the revaluation request. Revaluation sets were specific to a set of books.

For the Release 12 upgrade, set of books-specific period rates are merged into the daily rates model, identifiable by unique period-end and period-average rate types. Under this new model, revaluation adjustments are calculated with the option of either using daily rates of a specified rate type or one-time, user-entered rates specified for the revaluation; the period rates option has now been removed from the user interface. It is also now possible to share revaluation sets across ledgers that share a common chart of accounts.

The upgrade process merges the period rates with the daily rates model by assigning system-generated period-end and period-average rate types to sets of books when converting them to ledgers. Existing revaluation sets that were assigned the period rates option are modified to use the daily rates type option. The rate type assigned to each revaluation set corresponds to the system-generated, period-end, rate type assigned to the upgraded ledger.

Revaluation Sets Involving Secondary Segment Tracking

In Release 11i, revaluation sets were specific to the set of books. It was possible to have gain/loss templates correspond to the setting for the secondary segment tracking revaluation option on the set of books. Alternatively, the templates could also correspond to the profile option that controlled cost center tracking. For example, if secondary segment tracking was enabled for the set of books, the secondary tracking segment in the gain/loss account templates would be filled in dynamically by the revaluation program and could not be updated by the user. The balancing segment was always non-updateable for the templates because this was dynamically determined in all situations.

In Release 12, it is now possible to share revaluation sets across ledgers that share a common chart of accounts. These ledgers may have different settings for secondary segment tracking or for the cost center tracking profile option. The gain/loss account templates for revaluation sets have been updated to only have a non-updateable field for the balancing segment; all other segments require a segment value. This makes the revaluation set equally usable for all ledgers regardless of how they track revaluation.

During the upgrade, revaluation sets will keep the same gain/loss account templates as originally defined. Where there are non-balancing segments that are missing an account value in the templates, it is not possible for the system to assign appropriate account values. In Release 12, however, the system requires all segments, except the balancing segment, in the templates to contain values, so users will need to enter values for these segments prior to running revaluations with the upgraded templates.

The non-balancing segments that require attention applies to users who satisfy the following conditions:

Statistical Report-Level Currency for Financial Statement Generator Reports

In Release 11i, it was possible for users to specify the statistical (STAT) currency as the report-level currency or runtime currency for Financial Statement Generator reports. In Release 12, the report-level currency and runtime currency must represent a ledger currency. Since the STAT currency cannot be a ledger currency, any upgraded reports from Release 11i that referenced STAT at the report-level will no longer display the STAT currency for that field. The field will be blank.

The upgraded report will still work but you will not be able to specify the STAT currency at runtime. In order to report on STAT currency balances, you should update those reports and specify the STAT currency at the row-level or column-level or use currency control values for the STAT currency.