To Cross-Validate or Not? Best Practices to Enforce Valid GL Combinations. Helene Abrams CEO eprentise

Transcription

1 To Cross-Validate or Not? Best Practices to Enforce Valid GL Combinations Helene Abrams CEO eprentise

2 Webinar Mechanics Open and close your panel. View, select, and test your audio. Submit text questions. Raise your hand. Q&A addressed at the end of the session. Answers will be posted within two weeks on our new LinkedIn Group, EBS Answers: /about Everyone will receive an within 24 hours with a link to view a recorded version of today s session. Polling questions will be presented during the session. If you want CPE credit for this webinar, you must answer all of the polling questions. 2

3 3 Learning Objectives After completion of this program you will be able to: Objective 1: List the steps required to set up new cross-validation rules in General Ledger. Objective 2: Explain why using logical ranges in your chart of accounts value sets helps to minimize cross-validation rule maintenance. Objective 3: Describe how data segmentation at the chart of accounts segment level is important to optimizing cross-validation rules. Objective 4: List six criteria for designing good cross-validation rules.

4 4 Agenda Cross-validation Rules Overview Introduction Chart of Accounts Basics Cross-validation Rule Setup Defining and Creating Your Rules Optimizing Cross-validation Rules Chart of Accounts Design Logical Ranges Data and Information Segmentation 6 Criteria for Designing Good Cross-validation Rules

5 5 Introduction: Finished but not Done : Transformation Software for E-Business Suite Company Overview: Established 2006 Helene Abrams, CEO eprentise Can Consolidate Multiple EBS Instances Change Underlying Structures and Configurations Chart of Accounts, Other Flexfields Inventory Organizations Operating Groups, Legal Entities, Ledgers Calendars Costing Methods Resolve Duplicates, Change Sequences, IDs Separate Data So Our Customers Can: Reduce Operating Costs and Increase Efficiencies Shared Services Data Centers Adapt to Change Align with New Business Initiatives Mergers, Acquisitions, Divestitures Pattern-Based Strategies Make ERP an Adaptive Technology Avoid a Reimplementation Reduce Complexity and Control Risk Improve Business Continuity, Service Quality and Compliance Establish Data Quality Standards and a Single Source of Truth

6 6 Chart of Accounts Basics Accounting Flexfield Structure in E-Business Suite Segments Values Code combinations Segments (or Dimensions) Values Company Business Unit Cost Center Region Account East West 2222 Code Combination A cross-validation rule determines and controls the valid segment values that may be used in conjunction with values in other segments.

7 Setting Up Cross-Validation Rules 1. A Cross-validation rule applies only to a single chart of accounts structure or accounting flexfield 2. Cross-validation rules only work on data entry (and for the first time a combination is used) 3. Cross-validation rules have no impact on code combinations that are already in use Important to design and set up your cross-validation rules before entering transactions 4. Set up rules by defining valid combinations in the Define Cross-validation Rules form 7

8 8 Creating Cross Validation Rules Define the Goal Limit vs. Allow Limit Prevent certain chart of account segment values from being used in conjunction with specific values in other segments. Example: Prevent accounts from being used with departments Allow Only permit certain values to be used under certain matching conditions. Example: only department 7640 may be used with any product line that begins with S What s the difference? Nothing the logic is the same. By allowing only certain values, you are really just limiting all the rest of the values. Even so, it s good practice to think about the rules as limiting or allowing in order to get a better grasp of what values or rages need to be included and excluded.

9 CVR Elements (or Statements) The first part of setting up your rule is defining the cross-validation rule elements, or statements. Include element First create an Include element that includes the entire range of values for each segment. Every cross-validation rule must include at least one Include element. Exclude element(s) Next create any necessary Exclude elements that place limits on the values that can be used. Exclude elements override Include elements. Always start with a global inclusion then move on to exclusions. 9

10 Cross-validation Errors A cross-validation error occurs when a user inputs an invalid segment value based on the Exclusion elements of existing cross-validation rules. As with any application, handling errors efficiently allows the user to get back up and running with minimum of wasted time and effort. Determine your error segment This is the segment that will receive the focus of the cursor upon an error, so choose the segment that will most likely be causing the error Define your own error messages Short, concise messages that briefly explain the problem and suggest a fix are best. For example, You have entered an incompatible business unit/account combination. Please re-enter. 10

11 11 Example COA Structure & Values We ll use the following five-segment Accounting Flexfield in the examples that follow:

12 CVR Example 1 Goal Prevent revenue account values between and from being used with balance sheet department values between 1000 and Elements: Global Include, single Exclude Error segment: Department 12

13 Defining Rules in the Form General Ledger General Ledger General Ledger General Ledger CV_REVENUE_SEGMENT No revenue accounts between and for balance sheet departments between 1000 and 1999 CV_REVENUE_001: Please choose a valid department outside of for revenue account Department Include ZZZ.999 Exclude ZZZ

14 CVR Example 2 Goal Only department 7640 is permitted for use with any product line that starts with S. Elements: Global Include, three Excludes Error segment: Department 14

15 CVR Example 2 Goal Only department 7640 is permitted for use with any product line that starts with S. Elements: Global Include, three Excludes Error segment: Department 15

16 CVR Example 2 Goal Only department 7640 is permitted for use with any product line that starts with S. Elements: Global Include, three Excludes Error segment: Department 16

17 CVR Implications on COA Design Out of Range Cross-validation rules can get messy if your chart of accounts values are not organized in logical ranges. Rule elements are much more complex due to the inability to rely on value ranges for exclusion Example Goal: Prevent revenue account values between and from being used with any department values other than the following 5 values (we ll begin with the familiar global Include element):

18 18 CVR Implications on COA Design Example Goal: Prevent revenue account values between and from being used with any department values other than the following 5 values (we ll begin with the familiar global Include element): This statement prevents all departments below 3001 from being used:

19 19 CVR Implications on COA Design Example Goal: Prevent revenue account values between and from being used with any department values other than the following 5 values (we ll begin with the familiar global Include element): This statement prevents all departments greater than 3001 and less than 5057 from being used:

20 20 CVR Implications on COA Design Example Goal: Prevent revenue account values between and from being used with any department values other than the following 5 values (we ll begin with the familiar global Include element): This statement prevents all departments greater than 5057 and less than 6124 from being used:

21 21 CVR Implications on COA Design Example Goal: Prevent revenue account values between and from being used with any department values other than the following 5 values (we ll begin with the familiar global Include element): This statement prevents all departments greater than 6124 and less than 8537 from being used:

22 22 CVR Implications on COA Design Example Goal: Prevent revenue account values between and from being used with any department values other than the following 5 values (we ll begin with the familiar global Include element): This statement prevents all departments greater than 8537 and less than 9905 from being used:

23 23 CVR Implications on COA Design Example Goal: Prevent revenue account values between and from being used with any department values other than the following 5 values (we ll begin with the familiar global Include element): And finally, this statement prevents all departments greater than 9905 from being used:

24 CVR Implications on COA Design 24

25 Best Practices Trying to include more than two segments in a cross-validation rule is too complex and leads to even more required Exclude elements. Soon, you re at thousands of rules to maintain It s easy to steer clear of this problem by adhering to best practices when designing your chart of accounts Ranges One type of data in one (and only one) segment Similar data in only one segment 25

26 Maintaining Your CV Rules and Valid Combinations Review existing key flexfields when you update your crossvalidation rules to maintain consistent validation. Regardless of your current validation rules, GL accepts a key flexfield combination if the combination already exists and is enabled. Maintenance Suggestions: Decide upon your cross-validation rules when you first set up your key flexfield structure. Review existing combinations and disable any combinations that do not match the criteria of your new rules. 26

27 27 Available Reports Reports for Checking Cross-validation Rules: Cross-Validation Rule Violation Report This report provides a listing of all the previously-created flexfield combinations that violate your cross-validation rules. You can also choose to have the report program actually disable the existing combinations that violate your new rules. Cross-Validation Rules Listing Report This report lists all the cross-validation rules that exist for a particular flexfield structure. This is the information you define using the Define Cross-Validation Rules form, presented in a multiple-rule format you can review and keep for your records for a given flexfield structure.

28 28 Six Criteria for Designing CVRs 1. Design your chart of accounts with cross-validation rules in mind. 2. Start each rule with an include statement that includes the entire range of values. 3. Limit each rule to only 2 segments. 4. Make your error messages very descriptive so that when a user gets an error, he or she understands what changes need to be made to the entered code combination. 5. Use several simple rules rather than one complex rule. 6. Start your Cross-validation Error Messages with CV so that the user knows that the combination is failing because of a Cross-validation rule (as opposed to a security rule, or an end-dated value) when they get the error message.

29 Transformation Software Solutions Two Product Lines FlexField Change chart of accounts in EBS Built-in Rules Changes data in all subledgers Retain all historical transactions Quick, easy project, low price point eprentise Software that remodels any setup data Reorganizes configuration, master, and transaction data Maintains all history resulting in a single source of truth Based on a source that is transformed into a target Enterprise-level scope project Metadata Analysis and intelligent knowledge repository 29

30 FlexField Software Process Flow Create new COA in E-Business Suite (Structure, Qualifiers) Install FlexField software (client/server) Run current baseline report set Pair accounting flexfields Map either segments and values or code combinations Create mapping file from software Add new values, combinations in Excel Load csv file into FlexField Software Resolve Exceptions Execute Changes Transform CCIDs Apply changes to history, subledgers Align balances Print audit report Run report set to reconcile 30

31 Mapping the Accounting Flexfield Either Segments and Values or Code Combinations New Mapping Must be Derived from Old Segment Values Segments Current Segment Current Segment Current Segments Company Cost Center Product Line + Cost Center Values or Code Combinations Current Value Current Values Current Value Company 01 Cost Centers CO-CC-ACT Company Cost Center New Segment + Location New Segments Line of Business Company 100 Activity 101 New Value New Value CO-CC-ACCT-LOC New Value New Segment 1:1 1:M* M:1 *Segment Level Only 1:1 M:1 31

32 Select the Source and Target Flexfield 32

33 FlexField Software to Change your EBS Chart of Accounts Segment Mapping 1 1 Mapping M 1 Mapping 1 M Mapping 33

34 FlexField Software to Change your EBS Chart of Accounts Map Segments and Values or Code Combinations Changes CCID everywhere All setups All subledgers All history Looks as though the new chart of accounts was part of the original implementation Full audit trail, drill down, roll up Built in exception reporting 34

35 Create Mapping Files Current Company Segment Values and Descriptions 1:M Mapping of Company to (Company and Business Unit) Current Region, Account, and Product Segment Values and Descriptions A B C D E F New CO New BU CO Description CO New CO Description Value Value Value M:1 Mapping of (Region, Account, Product) to Account New BU Description 1 01 North America Company 01 New Company 101 New Business Unit 2 02 Overseas Distribution 02 New Distribution Company 102 Overseas Operations BU 3 03 French Company 03 French Manufacturing Company 103 Project Mfg BU 4 27 Consulting Services Company 04 New Vision Consulting Ltd 104 Vision Consulting BU 5 95 Operation Elimination 05 Intercompany 195 Operations Elimination BU 6 99 Corporation (Vision Consolidation) 99 New Vision Consolidation 199 Vision Consolidation BU A B C D E F G H New Reg Reg Account Product Product New Account Account Description Account Value Description Value Value Description Description Value 1 01 Southwest 1400 SALES COMMISSIONS 001 computer SALES COMMISSIONS GENERAL 2 01 Southwest 1405 SALES COMMISSIONS - OTHER 002 hard drive SALES COMMISSIONS HARD DRIVE 3 02 Northeast 1410 SALES COMMISSIONS - RESERVE 001 computer SALES COMMISSION GENERAL 4 02 Northeast 1415 SALES COMMISSIONS SERVICES - SALES COMMISSION Services SUPPORT SERVICES 5 02 Northeast 1415 SALES COMMISSIONS SERVICES - SALES COMMISSION Services WARRANTY SERVICES 6 03 Southeast 1410 SALES COMMISSIONS - RESERVE 002 hard drive Exceptions: Account Type Mismatch Multiple Descriptions Splitting Balancing Segment Length of Value SALES COMMISSIONS - RESERVE New Company and Business Unit Segment Values and Descriptions New Account Segment Values and Descriptions 36

36 Create Mapping File from FlexField 37

37 Load Mapping Files into FlexField Overwrites existing segment value mappings Repeat Loading until you are satisfied with mappings and have no exceptions 38

38 Apply Changes to Database 39

39 Align Accounts 40

40 Merging Balances Balance Tables (GL, AX, XLA etc.) Unique constraint on code combination ID Forces one balance per code combination No other tables are affected Many old CCIDs mapped to the same new code combination Old CCID Entity Cost Center Account Interco Future Use Balance $100, $10, ($7,432.84) $102,

41 Export Current and New Code Combinations 42

42 Post-Change Steps (Not covered by Software) Hard-Coded (RICE Activities) Definition of Target Interfaces to third-party systems Data Warehouse Reports Workflows OFA Oracle Financial Analyzer Testing and Cutover Strategy & Execution Rules (Use Business Logic) Uses Ranges Approval Assignments Budget Assignments New EBS Features New Modules/Functionality Some Configuration New CoA, Ledgers Upgrade to R12 Cross Validation Consolidation Account Derivation Rules Accounting Generator Roll-up Groups Security Rules Summary Templates Mass Allocations Costing and Revenue Recognition Rules 43

43 Questions 44

44 Thank You! Helene Abrams CEO Answers from this session will be posted within two weeks on our new LinkedIn Group, EBS Answers: - One World, One System, A Single Source of Truth - 45