rené römbellgnrconsulting gmbh hans kolbe celantrasystems
TRANSCRIPT
René Römbell gnr Consulting GmbH
Hans Kolbe Celantra Systems
Rene Roembell
� Rene Roembell is based in Frankfurt Germany. He has been working with Oracle based ERP Systems since 1989 and Oracle EBS since 1996. He was Oracle Principal consultant until 2001.
� His extensive knowledge on Oracle applications and tools is combined with a deep understanding of functional, technical and project management challenges.
� Over the last few years he has specialized on rapid pan-European implementations for global companies.
Hans Kolbe
� Hans Kolbe has managed and advised global software implementation projects for over 15 years. His extensive knowledge on Oracle applications is combined with a formal background as a German attorney, trained in international and comparative law.
� Chair of Multi-National SIG Group
� Specialist in Intercompany and multi-org configurations, international compliance and transaction tax
� www.celantrasystems.com
� 415-730-1131
3
11/20/2017 4
Standard (“Silo”) ERP Multi-Org Model All Subsidiaries are Parallel Entities
Ledger Consolidation
CentralL1410
Ger1462
Fra Swe Den Spa
Inventory
Fra1475
U.K1473
Ita1463
Swe1444
Den1432
Hol1461
Bel1442
Swi1465
Aus1415
Spa1467
PorNorEE Mea Fin
Pol14xx
Per Operating Unit : One Validation Org for VAT rates , One Planning Org , Global Master.
Shared Operating Unit Model
General Concept
5
Silo Model
1 Ledger-1 Legal Entity-1 Operating Unit
SecondaryLedger Primary
Ledger
Secondary Ledger Primary
Ledger
Secondary Ledger Primary
Ledger
Secondary Ledger Primary
Ledger
SecondaryLedger Primary
Ledger
LE
OU
LE
OU
LE
OU
LE
OU
LE
OU
SecondaryLedger
SecondaryLedger
Cross Legal Entity Operating Unit (CLEOU)
1 Ledger-N Legal Entities-1 Operating Units
1-N-1
Secondary Ledger Primary
Ledger
LE LE LE
OU
LE LE
Opportunities through CLEOU Design
� Simplified Design – Single Ledger, Single OU
� Align Operating Unit with operating structure
� Reduce Month-End Activities and Reconciliations
� Dramatically reduce time to integrate acquisitions and roll-out new modules and functionality
� Ensure global processes by reducing number of configurations and synchronizations challenges
� Improve global data quality - reduce duplication
Multi-LE OU – Pros & Cons Pros
� Adding a legal entity into Corp Oracle (e.g. from acquisition) could be radically faster than current approach (creating a separate OU)
� Single Operating Unit with multiple legal entities should improve operational efficiency
� Fewer OU’s to close at month-end will help to speed the close, assuming no additional tasks are required
� Multi-LE support aligns with Oracle’s stated direction for Operating Unit concept
Cons
Impact on business operations
resulting from configuration
differences is not known
Impact on existing support
functions (IT & FSG) not known
If a legal entity grows too large,
it could entail configuring a
separate OU at a later date
Questions to the CLEOU proposal
� Does this design fit my operating structure? � Shared and local service services� Security, defaults, and validations
� How can I connect each transaction to a single LE? � Payments, Invoices � Reconciliation
� How can I fullfill my local statutory and tax reporting requirement? � Sequencing, tax, accounting � Local COA and GAAP rules
� What about Intercompany Transactions?� How does this impact corporate consolidations? � How do you deal with multiple functional currencies?
Answers from the CLEOU solution
� Does this design fit my operating structure? � Align Multi-Org to Op. Unit / multiple Options
� Transaction Ownership? � LE column in Finance Modules � Nominate Data Element in all others (Company Segment)
� Local statutory and tax reporting? � Stat Reporting + GL sequencing in secondary ledger� VAT through EBus Tax and � Trx Sequencing thru sub-ledger configuration
� What about intercompany Transactions? � Identify source, LE owner and LE partner
� How does this impact corporate consolidations?� Generally no impact. Secondary ledger available, if needed.
� Multiple functional currencies? � Reporting ledger can be used.
Looking at Key R12 functionality used for CLEO
Our discovery process
Using the R12 LE functionality� In conjunction with accounting setup
� to support your corporate and local reporting
� to support your GL ledger sequencing (gapless where needed)
� In conjunction with EB-Tax
� to fulfill the regional transaction tax (VAT etc.) requirements
� In conjunction with subledger document sequencing
� to fulfill country specific transaction sequencing requirements
� To default Payables and Receivables transaction ownership
� To identify intercompany transactions and implications
� To support your payments and receipts with correct legal ownership assignment
Operating Unit and CLEOU
• An Operating Unit is not directly connected to a Legal
• Default Legal Context is used to assign one of the Legal
11/20/2017 13
Ledger and Cleo
� BSV (Balancing Segment Value) representing a Legal Entity
11/20/2017 14
Receivables and Cleo
� Legal Entity column available for Transaction
� Default via Transaction Type
11/20/2017 15
Legal Entity Assignments and Defaulting
ReceivablesInvoice
Legal Entity
Trx Type
Order Type
Sales OrderService
Contract
Ledger
BSV
VendorSite
PayablesInvoice
PurchaseOrder
GL Journal
defaults
Customer Taxpayer ID
defaults
assigned
assigned
assigned
assigned
assigned
assigned assigned
Liability BSV
Project Invoice*
assigned
*enable decentralized Invoice Processing ot AR Transaction Type extension
EBTaxBank
account
Payment
Receipt
Bank Account Owner
Legal Entity
ConfigurationOwner
InventoryOrg
