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General Ledger

This document outlines the process for converting general ledger balances from a legacy system to Oracle R12. Balances will be extracted as of June 30, 2011 and posted as the opening balances in R12. Only balances will transfer, not transaction history. Net activity for periods between July 2011 and go-live will also transfer. Secondary and reporting ledgers will require manual adjustments to true up balances after conversion journals post. Currency balances must transfer for revaluation at go-live.

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411 views2 pages

General Ledger

This document outlines the process for converting general ledger balances from a legacy system to Oracle R12. Balances will be extracted as of June 30, 2011 and posted as the opening balances in R12. Only balances will transfer, not transaction history. Net activity for periods between July 2011 and go-live will also transfer. Secondary and reporting ledgers will require manual adjustments to true up balances after conversion journals post. Currency balances must transfer for revaluation at go-live.

Uploaded by

Abhi Abhi
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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General Ledger Conversion

1. The GL balances need to be converted without compromising the integrity of


the nature of the balances.

� Closing balances of previous fiscal year will be converted as the initial


balances for R12 depending on the go-live dates of ledgers.

� Only GL balances and net period activity (as explained above) will be
converted to R12 ledgers. Transaction history will not be converted.

Initial GL balance conversion:


� GL Balances will be extracted from legacy systems as of 30-Jun-2011 after
period close and reconciliations in legacy systems.
� P&L accounts � Retained earnings
� These balances will be posted in R12 under respective ledgers and OUs as the
closing balances for 30-Jun-2011.
� The balances will be posted as WEB ADI journals in R12.
� Secondary ledger � There will not be any conversion to secondary ledgers; GL
balances will be converted to Primary ledgers only. The conversion journals
created in Primary ledgers will post to the available Secondary ledgers at a
journal level. The opening balances, if applicable in secondary ledgers will then
be trued up to the legacy secondary ledger balances through manual adjustments
� Reporting Ledger - No conversion; Journals posted to Primary ledgers will
post to Reporting ledgers followed by manual adjustments so that the legacy and R12
balances match. This is applicable to LTP only

� Only the functional currency amounts will be converted.


Conversion of net activity following beginning balance conversion:
� From 01-Jul-11 till the go-live, net period activity will be converted for
every period from legacy systems to R12.
� The first conversion of net period activity would be in the month of Jul-11
(calendar month). The final period of conversion would be the period when the sun
sets on the legacy systems or as per business decision.
� Data will be extracted after period close in the legacy systems.
� The data will be posted as WEB ADI journals in R12.
� Journals will be created only in Primary books. Journals will be posted in
Secondary/Reporting books at a journal level. Manual adjustments will be created in
these ledgers wherever applicable, to true up the balances to the legacy balances.
� Only the functional currency amounts will be converted.
Go-Live date requirements:
Currency level balances:
� Currency level balances are required on the go-live date for revaluation.
� For this purpose, the functional currency equivalent of foreign currency
balances will be reversed from the ledger with the �Revaluation adjustment account�
as offset account.
� The amounts will be rebooked at the transaction currency using the Corporate
exchange rates (effective date of journal).

Opening balances are simply loaded as a journal via GL_INTERFACE table. Adjusting
period has no play here.
If you are bringing historical data from JAN-10 then make sure you make DEC-09 as
your first period in GL. (You cannot do translation in your first period that is
why always keep 1 spare period in the beginning).
You do not bring opening balancing from AP and AR. You simply bring open
transactions if need be. However you need to make sure you remove the open AP and
AR transaction's from your GL open balances to prevent double counting.

Translation feature in Oracle is based on account balances being translated from a


functional currency to a foreign currency (for reporting purposes). For Multi
Reporting Currency (MRC) feature in Oracle, transactions (Journal Entries) are
converted from a functional currency to a reporting currency (a foreign currency).

If you intend to start transacting from JAN-10, your balance sheet account balances
from , say, your legacy system, which you would have transferred to your fresh
install, will not initialize (will not show up) in JAN-10. Therefore, since
Translation is done on Balance Sheet Account Balances, you cannot successfully run
it for your first accounting period JAN-10.

That is why you, for a work around, you open an accounting period DEC-09 during
which time you transfer your legacy balance sheet account balances before your main
first transactional accounting period.

By the time you open JAN-10, some concurrent program would be run to initialize the
beginning balance sheet account balances.

In short, you need to have a beginning balance sheet account balances for the
account period you intent to run the TRANSLATION feature.

All these foreign currency denominated transactions remained unsettled at the


period end must be REVALUED.

� Wherever is a foreign currency balance conversion we will be entering entered


amount as well as accounted amount. System will not calculate the accounted amount.

Assumptions:
Because the conversion is focused on B/S accounts, revaluation will not be required
at this stage. The period end process will revalue all entries at period end rate.
Because the conversion is focused on B/S accounts, the standard translation process
will not be required at this stage and the period end process should translate all
results at period end rate.
It is assumed that Translation and Revaluation processes will continue to run as
part of BAU.

These true-up journals can be created through manual journals to be posted into the
GL, or the recommended option is to create the true-up journals in the Pass Through
Journal format which will then be processed via DPL and FAH

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