to cross-validate or not? · 2016-09-13 · company department account product line intercompany 3...
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©2016 eprentise All rights reserved
To Cross-Validate or Not? Best Practices to Enforce Valid GL Combinations
Helene Abrams
CEO
eprentise
©2016 eprentise All rights reserved
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.
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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
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©2016 eprentise All rights reserved
eprentise Can… …So Our Customers 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
Introduction: Finished but not Done
: Transformation Software for E-Business Suite
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
Company Overview: Established 2006 l Helene Abrams, CEO
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©2016 eprentise All rights reserved
Chart of Accounts Basics
Accounting Flexfield Structure in E-Business Suite
Segments
Values
Code combinations
Company Business
Unit
Cost
Center
Region Account
01 100 150 East 1111
02 100 210 West 2222
Segments
(or Dimensions)
Values
Code Combination
A cross-validation rule determines and controls the valid segment values that
may be used in conjunction with values in other segments.
01 100 150 East 1111
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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
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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 30000 – 40000 from being used with departments
1000 – 1999
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.
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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.
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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.”
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Example COA Structure & Values
Company Department Account ProductLine Intercompany 3digitsNumeric 4digits
Numeric5digitsNumeric
3digitsAlphanumeric
3digitsNumeric
ExampleValues
001 USHoldingCo
1010 Administrative 40000 Revenue C99 CPUs 001 USHoldingCo
010 ABCHard
Drives,Ltd.
5042 Consulting 20000 Liabilities D47 Internal
Harddrives
010 ABC
Solutions,Ltd.
320 DEFSystems,LLC
7640 RepairandMaintenance-InternalHard
Drives
50013 ExpensesReplacementpartsfor
InternalHardDrives
M50 Memory 320 DEFSystems,LLC
731 GHIEnterprises,
Inc.
2020 Finance 35000 Sales-Hardware
S10 InstallationServices
731 GHIEnterprises,
Inc.
We’ll use the following five-segment Accounting Flexfield in
the examples that follow:
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CVR Example 1
Goal — Prevent revenue account values between 30000 and 40000
from being used with balance sheet department values between 1000
and 1999.
Elements: Global Include, single Exclude
Error segment: Department
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Defining Rules in the Form
General Ledger General Ledger
General Ledger General Ledger
CV_REVENUE_SEGMENT No revenue accounts between 30000 and 40000 for balance sheet
departments between 1000 and 1999
Include
Exclude 000.1000.30000.000.000
000.0000.00000.000.000 999.9999.99999.ZZZ.999
999.1999.40000.ZZZ.999
CV_REVENUE_001: Please choose a valid department outside of 1000-1999 for revenue account
Department 1000 1999
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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
This exclude statement prevents the departments below 7640 from
using any product line that starts with anything below S: This exclude statement prevents the departments above 7640 from
using any product line that starts with anything below S:
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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 30000 and
40000 from being used with any department values other than the
following 5 values (we’ll begin with the familiar global Include
element):
3001
5057
6124
8537
9905
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Example Goal: Prevent revenue account values between 30000 and
40000 from being used with any department values other than the
following 5 values (we’ll begin with the familiar global Include element):
3001 5057 6124 8537 9905
This statement prevents all departments greater than 5057 and less
than 6124 from being used:
CVR Implications on COA Design
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CVR Implications on COA Design
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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
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Maintaining Your CV Rules and Valid Combinations
Review existing key flexfields when you update your cross-
validation 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.
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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.
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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.
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©2016 eprentise All rights reserved
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
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FlexField Software – Process Flow
• Run report set to reconcile
• 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
• Create new COA in E-Business Suite (Structure, Qualifiers)
• Install FlexField software (client/server)
• Run current baseline report set
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Mapping the Accounting Flexfield
Either Segments and Values or Code Combinations
Segments
Company Company New
Segment
Current
Segment
Cost Center Cost Center New
Segments
Current
Segment + Location
Product Line Line of Business New
Segment
Current
Segments + Cost Center
1:1
1:M*
M:1
Values or Code Combinations Company
01
Company
100 New
Value
Current
Value
Cost Centers
01
02
03
Activity
101 New
Value
Current
Values
1:1
M:1
New Mapping Must be Derived from Old Segment Values
*Segment Level Only
CO-CC-ACT
01-10-1000
01-20-1500
CO-CC-ACCT-LOC
100-300-16000-200 New
Value
Current
Value
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Select the Source and Target Flexfield
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FlexField Software to Change your EBS Chart of
Accounts Map Segments and Values or Code Combinations
Segment Mapping
1 1 Mapping
M 1 Mapping
1 M Mapping
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Create Mapping Files
1:M – Mapping of Company to (Company and Business Unit)
M:1 – Mapping of (Region, Account, Product) to Account
A B C D E F
CO Value
CO Description New CO Value
New CO Description New BU Value
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
Current Company Segment
Values and Descriptions
New Company and Business Unit
Segment Values and
Descriptions
Current Region,
Account, and Product
Segment Values and
Descriptions
A B C D E F G H
Reg
Value
Reg
Description
Account
Value Account Description
Product
Value
Product
Description
New
Account
Value
New Account
Description
1 01 Southwest 1400 SALES COMMISSIONS 001 computer 140000 SALES COMMISSIONS
GENERAL
2 01 Southwest 1405 SALES COMMISSIONS - OTHER 002 hard drive 140500 SALES COMMISSIONS
HARD DRIVE
3 02 Northeast 1410 SALES COMMISSIONS - RESERVE 001 computer 140000 SALES COMMISSION
GENERAL
4 02 Northeast 1415 SALES COMMISSIONS SERVICES -
SUPPORT 003 Services 146000
SALES COMMISSION -
SERVICES
5 02 Northeast 1415 SALES COMMISSIONS SERVICES -
WARRANTY 003 Services 146000
SALES COMMISSION -
SERVICES
6 03 Southeast 1410 SALES COMMISSIONS - RESERVE 002 hard drive 141000 SALES COMMISSIONS
- RESERVE
New Account Segment
Values and Descriptions
Exceptions:
• Account Type Mismatch
• Multiple Descriptions
• Splitting Balancing Segment
• Length of Value
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Create Mapping File from FlexField
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Load Mapping Files into FlexField
• Overwrites existing segment value mappings
• Repeat Loading until you are satisfied with mappings and have no exceptions
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Apply Changes to Database
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Align Accounts
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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
Old
CCID
Entity Cost
Center
Account Interco Future
Use
Balance
7754 02001 00965 150170 0000 0 $100,000.59
7766 02001 00965 150170 0000 0 $10,250.33
7783 02001 00965 150170 0000 0 ($7,432.84)
02001 00965 150170 0000 0 $102,818.08
Many old CCIDs mapped to the same new code combination
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Export Current and New Code Combinations
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Post-Change Steps (Not covered by Software) Hard-Coded (RICE Activities)
Interfaces to third-party systems
Data Warehouse
Reports
Workflows
OFA – Oracle Financial Analyzer
Uses Ranges
Approval Assignments
Budget Assignments
New EBS Features
New Modules/Functionality
Some Configuration – New CoA, Ledgers
Upgrade to R12
Definition of Target
Testing and Cutover Strategy &
Execution
Rules (Use Business Logic)
Cross Validation
Consolidation
Account Derivation Rules
Accounting Generator
Roll-up Groups
Security Rules
Summary Templates
Mass Allocations
Costing and Revenue Recognition
Rules
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