“The global business release.”
This is how Oracle has referred to its current version of E-Business Suite (EBS), Release 12 (R12). And the description is not wrong: R12 offers users unprecedented functionality, particularly when looking at global operations. Previously, companies needed to rely on several sets of books, or even multiple instances, to account for their entire enterprise – that was especially true for those that had implemented shared services centers. But with the introduction of a common accounting engine with Subledger Accounting (SLA) and a Multi-Org Access Control (MOAC), businesses can streamline their operations and financial reporting by consolidating sets of books into ledger sets and reduce the number of instances they have. Considering that there is no way to transact information directly from instance to instance, using a single instance, in addition to adopting a single chart of accounts, is the best way to leverage R12.
Ledgers have replaced the concept of sets of books in EBS. A ledger can have its own accounting method, calendar, currency and chart of accounts. Ledgers can then be combined into ledger sets to easily post transactions across all the associated ledgers and subledgers, while still being able to provide a consolidated view of all of the data. This means that a user can enter a single transaction into the primary ledger, and by defining the accounting rules, the data will be updated to several other ledgers without the need to reenter the same information multiple times.
In prior releases, modules such as Accounts Receivable and Accounts Payable contained their own rules for posting accounting events into the General Ledger (GL). The universal posting engine streamlines the close process. By applying standard accounting rules to all business transactions, SLA ensures consistent financial reporting. If the business uses a single chart of accounts, the user only needs to define the rules for posting transactions to the GL or to subledgers once, and then all the related subsidiary ledgers in a ledger set will be updated automatically. Users need to support only one set of rules, and the maintenance of rules is simplified.
A company operating in a global environment might need certain ledgers to comply with the statutory requirements of a particular region or to report the same data in a different way for the corporate office. For example, most organizations with foreign subsidiaries prepare their consolidated financial statements according to IFRS (International Financial Reporting Standards) and also according to US GAAP (Generally Accepted Accounting Principles) standards. Now, rather than consolidating the information with third party programs, direct bolt-ons or, even worse, spreadsheets, subledgers allow businesses to automatically present the information in a clear and correct way.
Multi-Org Access Controls (MOAC) grant the ability to manage customers and suppliers across operating units without affecting responsibilities. Users can be given permissions for multiple operating units, and processes and transactions will then span those operating units. For example, MOAC increases the efficiency of operating a shared services center with streamlined access, processing and reporting across operating units.
Using MOAC, different rates, discounts and credit lines are easily determined, making it easier to negotiate with suppliers and leverage purchasing power across the enterprise. A single global instance with MOAC implemented allows customers to make decisions based on complete information, even when the business crosses regions and divisions.
With the new functionality in Oracle E-Business Suite Release 12, a single global chart of accounts and a single global instance reduces the time spent compiling, reconciling and consolidating financial data from disparate systems and spreadsheets, and decreases the close time between the different modules and the general ledger. Accounting policies can be standardized across the entire enterprise and everyone adheres to the same set of rules and definitions. MOAC empowers users to effect changes across operating units across an instance. Given these features, the data remains consistent, has full drill-down and roll-up capability, auditability and visibility into all of the activity for the entire ledger set, which ultimately ensures global corporate consistency and global visibility.