Sequencing by Legal Entity or Ledger

Transcription

1 ERP CLOUD Sequencing by Legal Entity or Ledger Fusion Financials for EMEA Table of Contents 1. Purpose of the document 3 2. Implementation 5 Default Setting and Country Overrides 5 Rapid Implementation Process 7 3. Common Setup 11 Review and Optionally Modify Ledger Options 11 Review Legal Entities and Business Units 11 Legal Entities 12 Business Units Review Document Sequences Review Accounting and Reporting Sequences Advanced Setup 27 Set up Legal Entity Tax Profiles 27 Set up Legal Reporting Unit Tax Profiles 28 Set up Business Unit Tax Profiles 28 Accounts for the Ledger 30 Third Party Control Accounts 31 Complete Payables Setup 33 Complete Receivables Setup 34 Enter Supplier Sites and Third-Party Site Tax Profiles 36 1

2 Enter Customer Account Sites and Third-Party Site Tax Profiles Users and Security Open Accounting Periods Create Payables Invoices Create Receivables Transactions Enforce Chronological Order on Document Date Changing Subledger Sequencing Options New Transaction Types Sequences and Reporting 56 Financial Reports 56 Stage 1: Accounting Period is open 56 Transaction Tax Reports R9 Upgrade Considerations 60 2

3 1. Purpose of the document This document explains the implementation and usage guidelines for the enhanced sequencing features in Fusion. Sequencing is the process of assigning unique and consecutive numbers to documents and journal entries. Sequencing is a legal requirement in several countries in Europe, Asia and Latin America; it enables the fiscal authorities to verify the completeness of a company s accounting record. Document Sequences: Document Sequence is a unique number that is assigned to documents like invoice and payment at creation or completion time depending on reporting needs. A sequence can be Automatic, Gapless or Manual. Automatic numbering assigns a unique number to each document as it is generated. Automatic numbering is the most efficient method of numbering documents but does not guarantee that the numbering is gapless. Gapless numbering also automatically generates a unique number for each document, but ensures that the document was successfully generated before assigning the number. With Gapless numbering, no sequence numbers are lost due to incomplete or failed document creation. Manual numbering requires a user to assign a unique number to each document before it is generated. With manual numbering, numerical ordering and completeness is not enforced. Users can skip or omit numbers when entering the sequence value. Document Sequence Category is the name of the transaction type to which a sequence is assigned and all transactions of this type get a unique number assigned when they are created. Document Sequence Name is the name of the sequence used to generate unique number for the transaction document when it is created. Enforce Document Sequencing is a ledger option to enforce document sequencing for Payables and Receivables transactions. Enforce Document Sequence Date Correlation option is available if document sequencing is enabled at Legal Entity level. Selecting this option ensures chronological as well as gapless sequencing. When this option is selected a document sequence cannot be generated if the transaction accounting date is earlier than existing transactions with the latest existing accounting date, causing the transaction completion to fail. 3

4 Accounting and Reporting Sequences: Accounting Sequencing refers to numbering of general ledger journals when they are posted in General Ledger. It also refers to sequencing of subledger journals when they are created or completed in Subledger Accounting. Reporting Sequencing refers to assigning a gapless sequence to both general ledger and subledger accounting journals when the accounting period is closed. You can assign both accounting and reporting sequences to a journal simultaneously. Release 9 Enhancements: Release 9 introduces sequencing by legal entity: you can assign different document, accounting and reporting sequences to each legal entity within a ledger and / or business unit. Sequencing by legal entity is enabled at the ledger level in the Ledger Options page. Please also refer to R9 Upgrade Considerations section. This document will focus on sequences maintained at the Legal Entity level since it is new functionality in Release 9. 4

5 2. Implementation You can use Rapid Implementation (RI) spreadsheet and process to create sequencing setup. You can create one ledger and multiple legal entities that are associated to this ledger using the RI process. You can complete all setups including definition and assignment of sequences manually but Rapid Implementation will be very useful to complete enterprise creation with sequencing efficiently. After initial enterprise creation (RI or manual) a number of setup steps, security setup and basic transactional processing should be completed to be able to see how sequencing applies to transactions, subledger journals and general ledger journals. This document refers to a reference enterprise configuration. Default Setting and Country Overrides Use Rapid Implementation to configure sequencing. Rapid Implementation defaults sequencing to the ledger level for most countries. For Italy, Spain, France, Germany and Netherlands, Rapid Implementation defaults sequencing to the legal entity level. 5

6 Examples in this document are based on the configuration shown above: single ledger, multiple legal entity and business units: Ledger: FR Vision SEQ3 Legal Entity: FR Vision SEQ LE1-France and Business Unit: FR Bision SEQ BU1 Legal Entity: FR Vision SEQ LE2-France and Business Unit: FR Bision SEQ BU2 Basic steps will be explained using France country defaults. Following table shows sequencing defaults by country: Ledger Options Attributes Sequencing By Enforce Document Sequence Enforce Document Sequence Date Correlation Mapping Rule Italy Spain France Germany UK Netherlands US Canada NS (No Sequencing), Ledger or Legal Entity Legal Entity Legal Entity Legal Entity Payables Checked Checked Legal Entity NS Legal Entity NS NS Receivables Checked Checked Checked Checked Checked Defaulted as 'No' Yes Yes Sequencing By defaults apply to Accounting and Reporting sequences as well as document sequencing. NS: No Sequencing 6

7 Rapid Implementation Process Step Step Description Entities and Comments Processes 1 Specify Ledger, Business Units, Legal Entities. Make sure you accurately specify the country information so that the application creates the correct default sequencing. You can also change when a sequence should restart and what should be the initial value. Follow the Instructions to create the zip files(1) and (2). After completing the entries in the RI spreadsheet, use Step1 : Validate, Step 2: Generate Chart of Accounts File and Step 3: Generate Ledger, LE, and BU File on COA, Calendar, and Ledger worksheet. Step1 and Step 2 create the zip files: (1) ChartOfAccounts (2)FinancialsCommonEntities Save the zip files. 2 Login as Implementing Consultant (APPLICATION_IMPLEMENTATI ON_CONSULTANT) 3 Upload Chart of Accounts; Use zip file (1) Ensure 3 processes complete successfully 4 Deploy Chart of Accounts 7

8 5 Upload Ledger, Legal Entities and Business Units. Use zip file (2). Ensure 8 processes complete successfully Rapid Implementation process creates your ledger, business units and legal entities using the default settings for the countries. 8

9 Address and Tax Information in Rapid Implementation spreadsheet Country information entered in the spreadsheet will instruct the system which country defaults will be used. Examples showing the related section of the worksheet are given below: France: Legal Entity Name *Identifier *Country Address *Address Line City State County Province Postal Code *Registration Number *Reporting Unit Registration Number FR Vision SEQ LE1 - France NVSFR12 France FR Vision SEQ LE2 - France NVSFR22 France Paris Office Paris Paris FR7H FR7H Distr. Center Paris Paris FR8N FR8N Spain: Legal Entity Address Name *Identifier *Country *Address Line City State County Province Postal Code *Registration Number *Reporting Unit Registration Number Spain Corp LE1 SPAES0003 Spain St 333 Madrid ESB ESB Spain Corp LE2 SPAES0004 Spain St 335 Barcelona ESB ESB

10 Sequencing defaults from the RI spreadsheet Sequences Transactions *Restart *Initial Value Payables Invoices Annually 1 Payments Annually 1 Receivables Invoices Annually 1 Receivables Credit Memos Annually 1 Receivables Adjustment Activities Annually 1 Subledger Journals Annually 1 General Ledger Journals Annually 1 10

11 3. Common Setup Review and Optionally Modify Ledger Options You can control the main sequencing options for your ledger which you have created manually or through Rapid Implementation. The sequencing options defined at the Ledger level will apply to all the Legal Entities within that Ledger. Rapid Implementation creates the ledger with the sequencing defaults for the country. In the sample setup below, sequencing level is set up as legal entity. Sequencing will be enforced for Payables application only. This means that the sequence is always used for Payables transactions. If the checkbox is unchecked and sequencing is by Ledger or LE then the sequencing within Payables will be partially used. Please also see R9 Upgrade Considerations section. Task name: Specify Ledger Options Navigation : Navigator > Setup and Maintenance -> Specify Ledger Options You can optionally change the Sequencing By option, which is Legal Entity as Ledger or No sequencing. This setting controls sequencing of subledger transactions as well as accounting and reporting sequencing of subledger and General Ledger Journals. No sequencing setting can be used to disable sequencing. Please note that the profile option setup for enabling sequencing is no longer relevant for document sequencing. Perform other modifications on ledger options if necessary. Review Legal Entities and Business Units Legal Entities and Business Units are created by the rapid implementation process. Sequencing setup is completed automatically for your legal entities. You can manually create these entities and manually complete your sequencing setup. 11

12 Legal Entities Task name: Assign Legal Entities Navigation : Navigator > Setup and Maintenance -> Assign Legal Entities Business Units Complete Business Unit setup before entering your subledger transactions. Task name: Manage Business Unit Navigation : Navigator > Setup and Maintenance -> Manage Business Unit 12

13 Please refer to section 6 Advanced Setup for setup steps that you need to complete before entering your Payables and Receivables transactions. 13

14 4. Review Document Sequences Below, you can see the values entered in a sample RI spreadsheet (Financial Sequences). These categories apply to all countries. Sequences Transactions *Restart *Initial Value Payables Invoices Annually 1 Payments Annually 1 Receivables Invoices Annually 1 Receivables Credit Memos Annually 1 Receivables Adjustment Activities Annually 1 Subledger Journals Annually 100 (*) General Ledger Journals Annually 1 (*) While the initial value is typically 1, 100 is used here to illustrate the flexibility and to easily verify that subledger journals and general ledger journals are numbered from their respective sequences. The application automatically assigns the document sequence names. Each sequence has versions for 2 financial years starting from the first financial year defined in the RI spreadsheet. Format of the document sequence names is as follows: Periodyear-periodnum-hexadecimal(seqno). Period year is the year of Calendar and period num is the number of that particular period. For example, for Calendar 'Accounting12', we have monthly periods from Jan to Dec. If the starting period of the sequence is Jan, then period num is 1. Seq no comes from the internal profile option DOC_SEQUENCE_HELPER_CODE which is not exposed to users. For every sequence created by the Rapid Implementation process, the value is incremented by 1. For the very first run of Rapid Implementation on a particular environment, this profile gets created with an initial value of 1. This value is converted to hexadecimal and used in the sequence string. For example, if year is 2010, starting period is Jan-2010 and the profile option value (seq no) is 250 then the document sequence name would be hex(250). Here hexadecimal of 250 would be 00FA so document sequence name will be : FA. 14

15 1. Payables: The following table shows the mapping of the items under Transactions heading of Financial Sequences worksheet to document sequence categories. Default Document Sequence Categories Payables Invoice Payments Transaction Code Name CRM INV Credit Memo Invoices DBM INV Debit Memo Invoices INT INV Interest Invoices PAY REQ INV Payment Request PREPAY INV Prepayment Invoices STD INV Standard Invoices CHECK PAY Check Payments CLEAR PAY Clearing Payments EFT PAY Electronic Payments WIRE PAY Wire Payments Rapid Implementation process creates one sequence per Invoices and one sequence per payments for each of two financial years starting from the Fiscal Year Start Date value provided in the spreadsheet. Four document sequences having auto-generated names in the format 2010-XX-XXXX and 2011-XX- XXXX are created with category assignments as follows: Sequence (1) 2010, Sequence (2) 2011 (Payables Invoices) Assigned To: CRM INV DBM INV INT INV PAY REQ INV PREPAY INV STD INV 15

16 Sequence (3) 2010, Sequence(4) 2011 (Payments) Assigned To: CHECK PAY CLEAR PAY EFT PAY WIRE PAY 16

17 Images below show the document sequences created for Payables and assigned to Payables document categories and Legal Entities. Task name: Manage Document Sequences Navigation : Navigator > Setup and Maintenance -> Manage Document Sequences 17

18 2. Receivables: The following table shows the mapping of the items under Transactions heading of Financial Sequences worksheet to document sequence categories. Default Document Sequence Categories Transaction Code Name Invoice Invoice Receivables Invoices PA Invoice PA Invoice PA Internal Invoice PA Internal Invoice Intercompany Intercompany Receivables Credit Memos Credit Memo Credit Memo PA Credit Memo PA Credit Memo Adjustment Reversal Adjustment Reversal Receivables Adjustment Activities Chargeback Reversal Chargeback Reversal Chargeback Adjustment Chargeback Adjustment (*) Additional categories may be added to the ones that are listed in the above table. Document sequences having auto-generated names in the format 2010-XX-XXXX and 2011-XX-XXXX are created with category assignments as follows: 2 Sequences (2010, 2011) : Adjustment Reversal 2 Sequences (2010, 2011) : Billing Adjustment (*) 2 Sequences (2010, 2011) : Chargeback Adjustment 2 Sequences (2010, 2011) : Chargeback Reversal 2 Sequences (2010, 2011) : Credit Memo 2 Sequences (2010, 2011) : Intercompany 2 Sequences (2010, 2011) : Invoice 2 Sequences (2010, 2011) : Non-Accounting Adjustment (*) 2 Sequences (2010, 2011) : PA Credit Memo 2 Sequences (2010, 2011) : PA Internal Invoice 2 Sequences (2010, 2011) : PA Invoice 18

19 There are 22 Receivables sequences for 11 categories and 2 legal entities for the sample implementation referenced in this document. Setup screen images of two sequences are provided below, the first sequence assigned to LE1 and the second assigned to LE2. Task name: Manage Document Sequences Navigation : Navigator > Setup and Maintenance -> Manage Document Sequences 19

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21 5. Review Accounting and Reporting Sequences RI process creates accounting and reporting sequences using default settings for countries. Please refer to Implementation section for country specific information. The naming of the sequences use the following format: LE Name / Ledger Name + Accounting Sequence (for non-period close event) or Reporting Sequence (for period close) + SLA (for subledger journals) or GL (General Ledger journals). Non-period close event is Posting for General Ledger and Accounting of the subledger transaction for Subledger Accounting. In this example you can see that accounting and reporting sequences are created for both Subledger Accounting and General Ledger journals exclusively for two legal entities. FR Vision SEQ LE1 - France Accounting Sequence-SLA FR Vision SEQ LE1 - France Accounting Sequence-GL FR Vision SEQ LE1 - France Reporting Sequence-SLA FR Vision SEQ LE1 - France Reporting Sequence-GL FR Vision SEQ LE2 - France Accounting Sequence-SLA FR Vision SEQ LE2 - France Accounting Sequence-GL FR Vision SEQ LE2 - France Reporting Sequence-SLA FR Vision SEQ LE2 - France Reporting Sequence-GL Each sequence has versions for 2 financial years starting from the first financial year defined in the RI spreadsheet: 21

22 Rapid Implementation Sequencing Setup is completed with the following defaults (general and countryspecific): Subledger Journals - Accounting Journal Entry Type Sequencing Event Sequence Validation Date Journal Sorting Date Require assignment for all journals Subledger Subledger Accounting Accounting Date Accounting Date Yes Start Date End Date Journal Source Journal Category Accounting Event Type Accounting Entry Type Document Category Start Date of first version period. Null All All All Standard All General Ledger Journals - Accounting Journal Entry Type Sequencing Event Sequence Validation Date Journal Sorting Date Require assignment for all journals General Ledger Posting Accounting Date Accounting Date Yes Start Date End Date Journal Source Journal Category Accounting Event Type Accounting Entry Type Document Category Start Date of first version period. Null All All All Standard All 22

23 Period Close - Subledger Journal Entry Type Sequencing Event Sequence Validation Date Journal Sorting Date Require assignment for all journals Fiscal Balancing Segment Values Start Date End Date Journal Source Journal Category Subledger Period Close Reference Date Reference Date Yes All Checked Start Date of first version period. Null All All Period Close General Ledger Journal Entry Type Sequencing Event Sequence Validation Date Journal Sorting Date Require assignment for all journals Fiscal Balancing Segment Values Start Date End Date Journal Source Journal Category General Ledger Period Close Reference Date Reference Date Yes All Checked Start Date of first version period. Null All All 23

24 Following images show sequences and assignments for LE1. Task name: Manage Accounting and Reporting Sequences Navigation : Navigator > Setup and Maintenance -> Manage Accounting and Reporting Sequences FR Vision SEQ LE1 - France Accounting Sequence-GL Journal Entry Type: General Ledger, Sequencing Event: Posting 24

25 FR Vision SEQ LE1 - France Accounting Sequence-SLA Journal Entry Type: Subledger, Sequencing Event: Subledger Accounting 25

26 FR Vision SEQ LE1 - France Reporting Sequence-SLA Journal Entry Type: Subledger, Sequencing Event: Period Close FR Vision SEQ LE1 - France Reporting Sequence-GL Journal Entry Type: General Ledger, Sequencing Event: Period Close 26

27 6. Advanced Setup This section provides details for setup required before you can enter transactions in Payables and Receivables. Some of these steps are not strictly required or may not be directly related to sequencing. You may not need to review all the details in this section. For example, you can bypass the details related to setting up of tax entities and start from Third Party Control Accounts sub section if you will create transactions without tax. In general, please review only those sub sections that are relevant to your business case. Set up Legal Entity Tax Profiles Register Legal Entities with tax regimes of the country. Task name: Manage Legal Entity Tax Profiles Navigation : Navigator > Setup and Maintenance -> Manage Legal Entity Tax Profiles 27

28 Set up Legal Reporting Unit Tax Profiles Register Legal Reporting Units with tax regimes of the country. Task name: Manage Legal Reporting Unit Tax Profiles Navigation : Navigator > Setup and Maintenance -> Manage Legal Reporting Unit Tax Profiles Set up Business Unit Tax Profiles You need to complete this setup to give the high level instruction to the tax engine that the tax calculation will be legal entity based. Task name: Manage Party Tax Profiles Navigation : Navigator > Setup and Maintenance -> Manage Party Tax Profiles 28

29 Use Legal Entity tax subscription must be checked. 29

30 Accounts for the Ledger Create tax accounts for the new ledger. Task name: Manage Tax Rates and Tax Recovery Rates Navigation : Navigator > Setup and Maintenance -> Manage Tax Rates and Tax Recovery Rates (Tax Accounts tab) 30

31 Third Party Control Accounts Specify your third-party control accounts and ensure that required setup is completed if you use the Financial Third-Party Reports. Task name: Manage Value Sets Navigation : Navigator > Setup and Maintenance -> Manage Value Sets To update existing account combinations which contain these account segment values, submit Inherit Segment Value Attributes process. Navigation: Navigator > Tools -> Scheduled Processes 31

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33 Complete Payables Setup Complete the following setups before entering transactions in Payables. Some setup items are directly related to how the sequencing will function in your implementation. Details are provided for these items. Complete the following setup for your Business Entities: Payables System Options Task name: Manage Invoice Options Navigation : Navigator > Setup and Maintenance -> Manage Invoice Options Specify Allow document category override option to allow or restrict users to change the document category of the individual invoice. Common Options for Payables and Purchasing Procurement Business Function Procurement Agent Manage Bank Accounts (Payment Documents) Task name: Manage Bank Accounts Navigation : Navigator > Setup and Maintenance -> Manage Bank Accounts 33

34 (1) Payment Documents section Payment Document Category is defaulted. It is possible to change or remove the payment document category from this page. (2) Business Unit Access tab Complete Receivables Setup Complete the following setups before entering transactions in Receivables. Some setup items are directly related to how the sequencing will function in your implementation. Details are provided for these items. Complete the following setup for your business entities: Create Receivables Activities Create Receivables System Options Task name: Manage Receivables System Options Navigation : Navigator > Setup and Maintenance -> Manage Receivables System Options 34

35 Document number generation is set up as When completed. Other available option are When saved or None. This means the receivables transaction will be assigned a sequence number at completion. For the sample ledger, sequencing is not enforced for receivables; due to this above setup will not be effective on the transactions of this ledger. Manage Transaction Source Task name: Manage Transaction Source Navigation : Navigator > Setup and Maintenance -> Manage Transaction Source You can check this option to use document sequence number as transaction number. Create Receivables Autoaccounting Rules Create Bank Account Create Receipt Method 35

36 Enter Supplier Sites and Third-Party Site Tax Profiles Create new Supplier Sites for the Business Units Create Supplier Site Tax Profiles for the new sites Task name: Manage Suppliers Navigation : Navigator > Suppliers -> Manage Suppliers 36

37 Enter Customer Account Sites and Third-Party Site Tax Profiles Reference Set Assignments (Review, Modify if necessary) You may need to review and modify set assignments for your business units. Task name: Manage Business Unit Set Assignment Navigation : Navigator > Setup and Maintenance -> Manage Business Unit Set Assignment RI process uses the default set COMMON for all reference data. A sample customer site setup is shown below: Task name: Manage Customers Navigation : Navigator > Setup and Maintenance -> Manage Customers 37

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40 7. Users and Security Assign roles to new or existing users. Before opening accounting periods and entering your transactions, associate corresponding roles that were created automatically during the RI process to new or existing users. Use following table as reference: Payables users Receivables users General Ledger user AP_SUPV_FR_SEQ_BU1 AP_SUPV_FR_SEQ_BU2 AP_MGR_FR_SEQ_BU1 AP_MGR_FR_SEQ_BU2 BILLING_MGR_FR_SEQ_BU1 BILLING_MGR_FR_SEQ_BU2 GENERAL_ACCTG_MGR_FR_SEQ AP_ACCOUNTS_PAYABLE_SUPERVISOR_JOB_FR Vision SEQ BU1 - France AP_ACCOUNTS_PAYABLE_SUPERVISOR_JOB_FR Vision SEQ BU2 - France AP_ACCOUNTS_PAYABLE_MANAGER_JOB_FR Vision SEQ BU1 - France AP_ACCOUNTS_PAYABLE_MANAGER_JOB_FR Vision SEQ BU2 - France AR_ACCOUNTS_RECEIVABLE_MANAGER_JOB_FR Vision SEQ BU1 - France AR_ACCOUNTS_RECEIVABLE_MANAGER_JOB_FR Vision SEQ BU2 - France GL_GENERAL_ACCOUNTING_MANAGER_JOB_FR Vision SEQ3 FR 8. Open Accounting Periods Open first accounting period in General Ledger, Payables and Receivables. You can also open other accounting periods depending on the accounting date ranges of your transactions. 1 Login as General Ledger Accounting Manager User Open First Period for the ledger Ensure process is submitted and completed successfully. 2 Login as Payables Manager User Open First Payables Period for the ledger Ensure process is submitted and completed successfully. 3 Login as Receivables Manager User Open First Receivables Period for the ledger Ensure process is submitted and completed successfully. 40

41 Open/Close Payables Accounting Periods from the Manage Accounting Periods screen. (Payables Manager) Open/Close Receivables Accounting Periods from the Manage Accounting Periods screen. (Receivables Manager) Open/Close General Ledger Accounting Periods from the Period Close screen. (General Accounting Manager) 41

42 9. Create Payables Invoices Create, account and post Payables Invoices for the two Business Units: Task name: Create Invoice Navigation : Navigator > Payables Invoices -> Create Invoice (1) BU1/LE1: Document Sequence assigned. Accounting Sequence assigned to Subledger Accounting entry. 42

43 GL Accounting Sequence assigned to General Ledger Journal. 43

44 (2) BU2/LE2: Document Sequence assigned. Accounting Sequence assigned to Subledger Accounting entry. 44

45 GL Accounting Sequence assigned to General Ledger Journal. 45

46 10. Create Receivables Transactions Task name: Create Transaction Navigation : Navigator > Receivables Billing -> Create Transaction (1) BU1/LE1 Document Sequence is not assigned. This is the case since Enforce Document Sequencing is not checked for Receivables. Please refer to Review and Optionally Modify Ledger Options. Accounting Sequence is assigned to Subledger Accounting entry. 46

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48 GL Accounting Sequence is assigned to General Ledger Journal. 48

49 11. Enforce Chronological Order on Document Date Use chronological and gapless ordering on sequencing to ensure transactions are entered into the system in chronological order of their accounting dates. Regulatory authorities in some countries expect the accounting date corresponds to the date that transactions are recognized by the company. For Payables invoices, this means when they are received from the supplier. For Receivables, it is when they are printed and sent to customers. The validation ensures that General Ledger dates and sequence numbers are consistent with the requirement. Set Enforce Chronological Order on Document Date to Yes to set up sequencing when chronological ordering is legally required or functionally desired for the given ledger or legal entity. If required, ledger option must be set as follows: Enforce Chronological Order on Document Date = Yes Task name: Specify Ledger Options Navigation : Navigator > Setup and Maintenance -> Specify Ledger Options This functionality is based on the accounting dates of the subledger transactions. 49

50 The option of enforce correlation can be enabled only when sequencing is set by LE (this option cannot be enabled if sequencing by is set as Ledger). Please also note that this feature is available just for document sequencing and not accounting/reporting sequences. Following example will show how the option works: Existing Invoice with an accounting date of 05-FEB-2010, Sequence Number: 2 Task name: Manage Invoices Navigation : Navigator > Payables Invoices -> Manage Invoices Try to enter an invoice with an accounting date of 02-FEB-2010: Task name: Create Invoice Navigation : Navigator > Payables Invoices -> Create Invoice Since the second invoice (above) has an accounting date that is earlier than the latest accounting date for the legal entity (first invoice), it is not possible to assign a document sequence to the invoice and it cannot be saved. 50

51 Please also note that it is not possible to delete an already sequenced transaction/receipt. If you no longer require a transaction, either cancel the transaction or reverse the transaction through a credit memo. 12. Changing Subledger Sequencing Options When there are any changes to legal or audit reporting requirements involving sequencing, modify the subledger sequencing options to comply with the changes. The changes become effective immediately when the change is saved. A transaction entry following the setup change will use the new setup independent of the transaction or the accounting date. For example, your audit reporting may require sequencing of Receivables transactions as well as Payables in the new financial year. Additionally, you may need to enforce chronological order to meet the changing requirements. You have to change the setup before you enter the first transaction in the new financial year. Changes to setup are shown below: Task name: Specify Ledger Options Navigation : Navigator > Setup and Maintenance -> Specify Ledger Options 51

52 Enter a Transaction for LE2/BU2 after the above modification; you can see that the sequence is now assigned. 52

53 13. New Transaction Types Set up transaction types in Receivables for new types of documents. Using the sequencing options you have set up for your ledger, the application creates and assigns one sequence to each transaction type you create. An example is shown below: Task name: Manage Transaction Types Navigation : Navigator > Setup and Maintenance -> Manage Transaction Types Task name: Manage Document Sequence Categories Navigation : Navigator > Setup and Maintenance -> Manage Document Sequence Categories 53

54 Task name: Manage Document Sequences Navigation : Navigator > Setup and Maintenance -> Manage Document Sequences 54

55 You can see that the following new transaction was sequenced from the new sequence associated to the transaction type. 55

56 14. Sequences and Reporting In this section you will see how document, accounting and reporting sequences are assigned to documents and journals through sections of Financial and tax reports. Financial Reports Stage 1: Accounting Period is open Accounting Period, JAN-10 is open. Daily Journals Report Source: Payables 56

57 Daily Journals Report Receivables 57

58 Stage 2: General Ledger Accounting Period is closed Accounting Period, JAN-10 is closed. 58

59 Transaction Tax Reports Input VAT Journal Report for Spain This report shows the document sequence names and numbers that are assigned to the Payables invoices. Sequence number in the first column is generated at report submission and is not related to the document sequence number that is assigned to the transaction. In the above example user runs the report with an initial value of

60 15. R9 Upgrade Considerations If pre-r9 sequencing profile setting was Always, the sequencing settings are preserved. Otherwise, pre- R9 sequencing profile setting of Partial/Not Enabled translates to No Sequencing in R9. You can use the following table for information but please refer to the upgrade document for the detailed flow. Please also refer to ERP Cloud Release 9 Upgrade document. Document Sequencing Profile setting Settings in Specify Ledger Options UI after upgrade Site Product Sequencing By Enforce Document Sequencing Partial Payables Not Enabled OR Partial No Sequencing None Receivables Not Enabled OR Partial No Sequencing None Partial Payables - Always Ledger Payables Yes Partial Receivables Always Ledger Receivables Yes Payables - Yes, Always [No product level setting for Receivables] Ledger Always Payables - Always Ledger Payables Yes Payables - Yes (Receivables is not checked) Receivables Partial Ledger Receivables - No Always Payables Not Enabled OR Partial No Sequencing None Receivables Not Enabled OR Partial No Sequencing None Please also review the Release 9 Readiness Content for Financials. At post upgrade, you must review the settings in the Sequencing region of the Specify Ledger Options page before recording new Financials transactions and journals to ensure they are same as your pre- Release 9 settings and/or reflect what you need starting in Release 9. 60

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