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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

    [email protected]

    732-650-0052 Ext 232

    Ajay Sharma

    [email protected]

    513-229-8920 Ext 20