Question: Can you please provide guidance as to the best way to handle entities with different calendar and fiscal years? Main company is Aug fiscal year close. A few legal entities are March close. One is December close.
Answer
Answer: Configuration touchpoints:
Entity
Time Profiles
Scenarios
FX Rates
Cubes
Data Integration – moving data between cubes
Case Study A
- Two completely separate organizations:
- Retail/Commercial organization – “Business”
- FEBRUARY year-end
- Charitable Foundation – “Charity”
- DECEMBER year-end
- No crossing of entities – entities are one or the other only
- Entities GL systems set up based on their respective year-ends
Scenario Configuration
Due to FX Rate tables being stored by cube, you’ll need separate scenario dimensions for each respective entity dimension.
Time Profiles
Cubes
Case Study B
- Group SEC & Managerial reported based on Corporate October year-end
- Local/Legal Statutory & Tax reporting based on following requirements:
- March Year-End – required for India entities
- December Year-End – required for Mexico, Brazil, Israel, China, Romania
- Other countries use corporate fiscal year as local/legal calendar
- All entities data imported via connector to Corporate wide Oracle GL based on October calendar
- GL Data coded by “ledger codes” to indicate what is US GAAP, Local/Legal, or both (captured in UD1)
- Some countries need country specific COA hierarchies
- Local/Legal reporting only needs to be in local currency
Entity Configuration
Create separate entity dimensions for each local reporting year-end.
Scenario Configuration
Duplicate scenarios to accommodate FX rates by currency and fiscal year.
Time Profiles
Accounts
Summary Accts – level used for planning
Detail Accounts – level used for group financial reporting
LL (Local/Legal) Accounts – additional detail and alternate hierarchies for country specific COA
UD1
Cubes
Sample app available as attachment
Source: Office Hours 2020-02-13 Partner Enablement