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GL ConsolidationGL Consolidation

OVOAUG Conference

January 26, 2007

Rajesh Barde

CDC Services/Horizon Companies

(A CDC Corporation Company)

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CDC Services/Horizon CompaniesCDC Services/Horizon Companies

Oracle PracticeOracle Practice

z Oracle Partner

z Oracle implementation, upgrade,

customizations, training, post production

supportz Oracle Financials, Distribution,

Manufacturing, Project Accounting,

Discoverer, BIz On site/Offshore teams

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AgendaAgenda

z Set of Books Structurez GL Consolidation

z

Eliminationz Case Study

z Lessons learned

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GL Sets of BooksGL Sets of Books

zAccounting Flexfield Structure Balancing Segment

Cost Center

Natural Account

Example 10.225.4159

zAccounting CalendarzCurrency

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Over view of GL ConsolidationOver view of GL Consolidation

z Consolidation is a functionality in theGeneral Ledger Module that allows you to

combine financial results of multiple

companies from multiple sets of books,currencies, calendars and accounting

flexfield structures

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GL ConsolidationGL Consolidation

z Consolidation of companies within a Set ofBooks

z Consolidation of companies across multiple

Sets of Books in the same instancez Consolidation of companies across multiple

Sets of Books across multiple instances

z Accounting for some companies ismaintained in non-Oracle applications

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GL ConsolidationGL Consolidation

zSame or Different Charts of AccountszBalances or Transactions

z

Same or Different CalendarzBalance Type

Actual/Translated

Budget

Statistical

zSame or Different Currency

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Consolidation StepsConsolidation Steps

zCreate Consolidation mapping: parent andsubsidiary sets of books

zPost all Journals in subsidiary set of books

zRevalue foreign currency balances in

subsidiary sets of books

zTranslate subsidiary balances to thefunctional currency of parent set of books

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Consolidation StepsConsolidation Steps

zRun and review trial balance reportzTransfer data from subsidiary to parent

z

Run Journal importzPost the consolidation journal in parent set

of books

zEliminate intercompany balances

zRun trial balance and other financial reports

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ExampleExample

Consolidated

Set of Books

USSet of Books

Countries

In NA/SA

Countries

In Europe

UKSet of Books

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Consolidation mappingConsolidation mapping

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Consolidation RulesConsolidation Rules

zSegment Rules Assign Single Value

Copy Value From

Use Rollup group

zAccount Rules

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Segment RulesSegment Rules

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Account RulesAccount Rules

Subsidiary Account Range

10-100-1001 To 10-500-1999

Parent Account

10-999-1000

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Account RulesAccount Rules

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Mapping SetsMapping Sets

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Elimination ofElimination ofIntercompany BalancesIntercompany Balances

zAutomatic Inter company Eliminationsusing elimination sets

zStandard Journal Entries

zADI

zRecurring Journal Entries with formulas

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Balancing EliminationsBalancing Eliminations

zAllow out of balance journalzBalance with net difference accounts

zThreshold rules

Constant amount

Percentage of amount

Percentage of journal

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Elimination SetElimination Set

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Elimination Accounts SetupElimination Accounts Setup

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Elimination Balancing OptionsElimination Balancing Options

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Generate EliminationsGenerate Eliminations

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ReportsReports

zUnmapped Subsidiary ReportzDisabled Parent Accounts Report

zConsolidation Rules Report

zConsolidation Journals Report

zConsolidation Audit Report

zFSG reports

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Inquiry & Drill DownInquiry & Drill Down

zConsolidated and subsidiary entitieszSummary and detail account balances

zConsolidation Journals

zSubledger transactions

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Case StudyCase Study

zGlobal company investing in power plants

z150 subsidiary, joint venture and fullyowned companies across the globe

z

Regional reporting for North America,South America, Europe, Asia

zImplementation of GL, AP, AR, FA, CM,

Project Costing & Billing, iExpenses,Discoverer, BI

zGL Consolidation for Regional & Global

Financial reporting

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Case StudyCase StudyHQ in

US

NorthAmerica

SouthAmerica

Europe Asia

Companies

REGIONS

Companies Companies Companies

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Lessons learnedLessons learned

z Standardize Key Accounting Flexfield across Sets

of Books

z Importance of Security rules and Cross-validation

rules

z Incorrect account code combinations must be

disabled

z Limited access for creation of code combinations

zDesign the consolidation hierarchy

zKeep only 1 period open at a time

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Lessons learnedLessons learned

zUser testing for all Sets of Books

zUser Training

zParticipation by international users

zPhased v/s big bang approach

zProcess ownership

zTop Management support

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Thank You

Your Global Partner

CDC Services dba Horizon CompaniesCDC Services dba Horizon Companies

(A CDC Corporation Company)(A CDC Corporation Company)http://www.horizoncompanies.comhttp://www.horizoncompanies.com

Rajesh Barde

rajesh@horizoncompanies.com

732-650-0052 Ext 232

Ajay Sharma

asharma@horizoncompanies.com

513-229-8920 Ext 20