This chapter covers the following topics:
The following lists the terminology changes from Release 11i to Release 12:
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:
Legal Entities: HR Organizations classified as GRE/LEs in Release 11i will be preserved as Legal Entities in Release 12. Legal entities can be manually assigned to a ledger and balancing segment values can optionally be mapped to legal entities to help you identify transactions by legal entity during transaction and journal processing. For more information about the upgrade for legal entities, see the Legal Entity Configurator section.
One Primary Ledger: Most sets of books in Release 11i will become primary ledgers in Release 12. The details for the set-of-books upgrade are discussed in the Set of Books section.
Operating Units: All HR Organizations classified as operating units will be preserved in Release 12. If operating units are assigned to a set of books, then they will be associated to a primary ledger in an accounting setup. You can now view all operating units assigned to an upgraded primary ledger using Accounting Setup Manager.
Reporting Currencies: Multiple Reporting Currency (MRC) reporting sets of books become reporting currencies in Release 12. The Multiple Reporting Currency upgrade is discussed in the Multiple Reporting Currency Changes section.
Secondary Ledgers: Multiple-Posting set of books (Global Accounting Engine) will upgrade to secondary ledgers. The Global Accounting Engine upgrade is discussed in the section on Global Accounting Engine Integration.
Intracompany Balancing: Intercompany Accounts in Release 11i is renamed to Intracompany Balancing Rules, a feature provided by the new Advanced Global Intercompany System. Refer to the Advanced Global Intercompany System section for more information.
Intercompany Accounts: The Release 11i Global Intercompany System (GIS) will be replaced by Advanced Global Intercompany System (AGIS). The following Release 11i GIS features will be migrated to the corresponding features in AGIS: Subsidiaries, Intercompany Transaction Types, Intercompany Clearing Accounts, and Auto Accounting Rules. Refer to the Advanced Global Intercompany System section for more information.
The following details the upgrade of each of these financial components and other upgrade considerations in General Ledger.
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.
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.
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:
If Secondary Tracking was enabled for both Revaluation and Closing and Translation in Release 11i, then the single check box will be checked in Release 12 and secondary tracking will continue to perform for all three features.
If Secondary Tracking was enabled for Closing and Translation but not for Revaluation in Release 11i, then the check box will be checked in Release 12. Behind the scenes, secondary tracking will be off for Revaluation.
If Secondary Tracking was enabled for Revaluation only in Release 11i, then the check box will not be checked in Release 12. Behind the scenes, secondary tracking will continue to be supported for Revaluation.
If Secondary Tracking is not enabled at all in Release 11i, then it also will not be enabled in Release 12.
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.
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:
Subledger Accounting Method: For non-public-sector ledgers, Standard Accrual will default unless the upgrade detects that the ledger is a cash-basis ledger, in which case, Standard Cash will be assigned. For public sector ledgers, Encumbrance Accrual will default unless the upgrade detects that the ledger is a cash-basis ledger, in which case, Encumbrance Cash will be assigned. You can change the subledger accounting method at any time but you cannot delete it.
Subledger Accounting Method Owner: Oracle defaults for all upgraded ledgers. If you change the subledger accounting method, then the owner of that method will default.
Journal Entry Language: The base language installed for the instance defaults.
Entered Currency Balancing Account: If a suspense account was assigned to the set of books in Release 11i, then the suspense account will default for the entered currency balancing account. Users can change this account at any time. If no suspense account was assigned, then no account will default. However, you should enter an account that Subledger Accounting will use to post differences from out-of-balance foreign currency journals in subledgers.
Rounding Differences Tracking Account: No default value is assigned. You should enter an account to prevent processing errors by Subledger Accounting. Subledger Accounting will issue an error if it encounters a subledger journal entry that is unbalanced because of rounding differences and an account is not specified.
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:
Subledger Accounting (SLA)
The General Ledger Posting Program
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:
Query the Accounting Setup by the primary ledger or secondary ledger using General Ledger’s Accounting Setup Manager.
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.
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:
Query the Accounting Setup by the primary ledger or secondary ledger using General Ledger’s Accounting Setup Manager.
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.
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.
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.
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.
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.
The following discusses the terminology changes associated with the General Ledger Reporting Currency 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.
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:
Number of Future Enterable Periods
Rounding Differences Account
Reserve for Encumbrance Account
Retained Earnings Account
Intracompany Balancing Rules
Enable Journal Entry Tax
Journal Reversal Criteria Set
Require Budget Journals option
Period End Rate Type
Period Average Rate Type
Translation Adjustment Account
Secondary Tracking Segment option (once enabled for a ledger, the Track by Secondary Segment option cannot be disabled)
Descriptive Flexfields
Suspense Account
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
This section describes details for users who integrated General Ledger with Global Accounting Engine.
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.
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.
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.
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.
This section discusses upgrade details regarding revaluation and revaluation sets in Oracle General Ledger Release 12.
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.
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:
Users have multiple sets of books in Release 11i.
The sets of books share the same chart of accounts.
The sets of books are configured with different settings for the revaluation option for secondary segment tracking.
Users want to run revaluation for upgraded sets of books that did not have the secondary segment tracking enabled for revaluation in Release 11i.
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.