R12 Italian Localization Guide

Please find step by step guide to implement R12 Italian Localizations

Clikc Hear

R12 COGS Accounting

Summary on R12 Deferred COGS Accounting

• The role of COGS workflow is not changed.
•  A new account called Deferred COGS account is introduced
• when the order shipped the entry will be                       Cr Inventory Material account                                                 Dr Deferred COGS Account  
• After revenue is recognized, the following programs need to be run to relieve deferred COGS value and debit actual COGS account.

Requests to Run

1. In  Inventory Responsibility run “Collect Revenue Recognition Information”
2. In  Inventory Responsibility run “Generate COGS Recognition Events”

R12 Internal Requisition Flow

Internal Requisition

Reference Metalink : 744481.1 and  406312.1
Metalink notes are described at great detailed on required setup,

• Organization witch ships the Goods [Source Organization /Shipping ]

, Organization witch request the goods [Destination Organization / Selling]

• Create Location, assign Destination Inventory Organization

 Create customer in Source organization assign, the location at ship to internal location, [ you can’t assign same internal location to any other customer , it’s 1to1 mapping]  

Destination ORG	Source ORG
PO Responsibility : Create Internal Requisition, Approve it Note: You can’t make any modification once the requisition is approved You can’t even cancel the Requisition You also noticed that Item Price in Requisition will be defaulted automatically the item cost of sourcing Organization , after selecting the source Inventory org.   Need by date will be the Scheduled Shipping date of the Order Run Create Internal Orders This request imports Order lines in source organization
	OM Responsibility Run  Import internal Orders Order will be created in Booked status. Run Pick Release and ship confirm Any changes to the order will reflect to the linked Internal requisition Canceling the Order will result canceling the requisition too You can’t  add any lines to the order, item change will be allowed  incase of item replacement /substitution
Based on Shipping Network setup In transit / Direct In Transit: Receive Goods using the Requisition numbers This can be done using Inventory / PO Responsibility
Cost manager worker costs the inventory transaction, with out this worker running successfully , you can’t create AR or AP invoices. Make sure all transaction  cost calculated . 1) calc of Average costing in Destination Organization is taking the price from List Price
	In Inventory Organization Run Inter company  AR Invoices In AR Responsibility Run Auto Invoice Interface
In Inventory Organization Run Inter company  AP Invoices In AP Responsibility Run Payables Open Interface Import

APP-AR-11017: Recreation of Payment Schedules failed because the transaction has activity against it

APP-AR-11017: Recreation of Payment Schedules failed because the transaction has activity against it

one of the cause for this error in AR will be different Payment terms id in AR_PAYMENT_SCHEDULES and RA_CUSTOMER_TRX

check term_id  in both table if they are not the same update accordingly

Grant Access Inventory ORG to Specific Responsibility in 11i & R12

You want to restrict which Inventory Organizations can be accessed by a particular responsibility.

For each responsibility that needs to access a subset of the available organizations:

1) Navigate to INV / Setup / Organizations / Organization Access

2) Enter the organization code, application name and responsibility name and save

3) Repeat for each organization that will be available to the responsibility.

NOTE:  Any organization that is NOT assigned to at least one responsibility is available to ALL RESPONSIBILITIES.

R12: maintain Your Reporting Currencies

You can maintain reporting currencies three levels of details:

• The balance level reporting currency maintains account balances in another currency using GL Translation. Thus translated balances are now referred t as balance level reporting currencies

• The journal level reporting currency maintains journal entries in another currency representation.

This type of secondary ledger is maintained using the General Ledger Posting program. Every time you post a journal in the source ledger, the same journal is converted to the currency of the reporting currency. This is equivalent to Thin MRC in R11i. Thin MRC was a hidden, undocumented feature. Now in R12, it is fully productized and documented as Journal level Reporting Currencies.

• The subledger level reporting currency uses both Subledger Accounting and the General Ledger Posting program to convert all journals from all sources to the reporting currency. This is equivalent to Full MRC in R11i except in R11i, only some subledgers integrated with MRC. In R12, we offer currency conversion for all subledgers that integrate with Subledger Accounting.

R12 Financials – Oracle General Ledger

EBS R12 Financials Ledger Architecture

Click hear for presentation

R12: maintain your secondary ledgers

You can maintain secondary ledgers at four levels of details:

• The balance level secondary ledger maintains primary ledger account balances in another accounting representation. This type of secondary ledger requires Oracle General Ledger Consolidation to transfer primary ledger balances to this secondary ledger.

• The journal level secondary ledger maintains journal entries and balances in an additional accounting representation.

This type of secondary ledger is maintained using the General Ledger Posting program. Every time you post a journal in the primary ledger, the same journal can be automatically replicated and maintained in the secondary ledger for those journal sources and categories that are set up for this behavior.

The subledger level secondary ledger uses both Subledger Accounting and the General Ledger Posting program to create the necessary journals in both the primary and secondary ledgers simultaneously. Subledger Accounting creates the journal entries from subledger transactions that integrate with Subledger Accounting.General Ledger Posting creates the journal entries for all other transactions that dono integrate with Subledger Accounting, including manual journal entries.

The adjustments only secondary ledger level is an incomplete accounting representation that holds only adjustments.

The adjustments can be manual adjustments or automated adjustments from Subledger Accounting. This type of ledger must share the same chart of accounts, accounting calendar/period type combination, and currency as the associated primary ledger. To obtain a complete secondary accounting representation that includes both the transactional data and the adjustments, use ledger sets to combine the adjustments-only secondary ledger with the primary ledger when running reports.

Difference Between Secondary Ledgers and Reporting Currencies

If you only need a different currency representation, then use reporting currencies.

If you need an different accounting representation that differs in one or more f the following, then use secondary ledgers:

• Chart of accounts
• Calendar
• Currency
• Subledger Accounting Method

R12 Subledger Accounting Process Events

You can run accounting in two ways, one is Online other is batch mode. Online accounting is ideal when you want to generate accounting event for one transaction. Batch mode accounting process will be initiated by submitting accounting concurrent request (Create Accounting, Submit accounting)

There is no difference if you run online accounting or batch accounting in terms of the event generation. Only different is in detailed reporting

Tables that are involved in this process are

XLA_TRANSACTION_ENTITIES
XLA_EVENTS
XLA_AE_HEADERS
XLA_AE_LINES
GL_IMPORT_REFERENCES
GL_JE_LINES
GL_JE_HEADERS
GL_BALANCES

Links Between these tables

GL_JE_LINES (JE_HEADER_ID, JE_LINE_NUM)	GL_IMPORT_REFERENCES (JE_HEADER_ID, JE_LINE_NUM)
GL_IMPORT_REFERENCES (GL_SL_LINK_TABLE, GL_SL_LINK_ID	XLA_AE_LINES (GL_SL_LINK_TABLE, GL_SL_LINK_ID)
XLA_AE_LINES (APPLICAITON_ID, AE_HEADER_ID)	XLA_AE_HEADERS (APPLICATION_ID, AE_HEADER_ID)
XLA_AE_HEADERS (APPLICATION_ID, EVENT_ID)	XLA_EVENTS (APPLICATION_ID, EVENT_ID)
XLA_EVENTS (APPLICATION_ID, ENTITY_ID)	XLA_TRANSACTION_ENTITIES (APPLICATION_ID, ENTITY_ID)

Draft : Draft will create journal entries, which are not final, which means they are not ready to be transferred to GL.

You can create accounting on this transaction again and again, which will delete the old journal entries and create new ones. You can’t transfer these journal entries to GL.

xla_events.process_status_code = D
xla_events.event_status_code = U
xla_ae_headers.accounting_entry_status_code = D

Final : Final will create journal entries, which can be transferred to GL. Once it is finally accounted you can’t run create accounting on the particular transaction (specifically on that event).

Run Transfer Journal Entries to GL program

xla_events.process_status_code = P
xla_events.event_status_code = P
xla_ae_headers.accounting_entry_status_code = F

Final Post: Final Post will create journal entries in final mode, transfer them to GL and post them.

xla_ae_headers.accounting_entry_status_code = F
xla_ae_headers.transfer_status_code = Y
xla_events.process_status_code = P
xla_events.event_status_code = P