General Ledger & Intercompany

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    Anil Nair
    GL:Ledger Design
    Topic posted August 8, 2019 by Anil NairBronze Medal: 1,250+ Points, tagged Accounting Hub Cloud Service, Allocations, Assets, Cash Management, Expenses, Financials, General Ledger, Payables, Period Close / Reconciliation, Reports, Setup / Administration, Subledger Accounting 
    77 Views, 5 Comments
    GL:Ledger Design
    GL: Ledger Design

    How to consolidate 4 ledgers into 2 ledgers what are some of the considerations and risks?

    For data migration, how can we consolidate the balances from 4 ledgers to 2 ledgers?

    What is the impact on integrations to GL and to subledgers?



    • Praveen T

      Hi Anil,

      Could you clarify the below informations.

      • Currently does 4 ledgers are representated by respective SL or only few are having  SL
      • Does all 4 ledgers have same functional currency.
      • What is currently driving the consolidation- Business need or ease of use or some thing else.





    • Krishnan Venkatachalam

      One option is to setup a ledgerset and then pull the data from the Essbase cube at the ledgerset level (which will balances across ledgers). But this will only work at balance level.

      Without knowing any background of why you are doing this, that is the best I can come up with.


    • Mahesh Nelapati

      What's your business use case for consolidating 4 ledgers into 2 ledgers ?

    • Anil Nair

      Thanks for the response.

      I don't have the full details yet, but customer is using 4 separate ledgers with separate SLs in the Oracle EBS 11i and are moving to Oracle Cloud with only 2 ledgers - One primary and one secondary.

      • What are some of the risks and considerations with respect to moving from 4 to 2 ledgers?
      • What are the detailed steps involved (implementation viewpoint) in consolidating 4 to 2 ledgers in future state?



    • Praveen T

      Hi Anil,

      Based on the current requirements, I am listing down the areas which needs to be considered for this project. As mentioned earlier, we need to know the business case/need in detail to come out with solution approach.


      List of considerations

      1. As customer is planning to move from 11i to cloud, you need to review whether there is any need for COA redeign is required. Cloud implementation can be considered as an oppurtunity by the organization for transformation of COA structure considering the  statutory, internal reporting and intercompany transactions etc.
      2. If current  COA structure is fine and we are expecting no change in future, then the work becomes simpler and easier. One thing you need to ensure that merging and reconciliation is performed before migrating the data  to new ledger.
      3. Also, you need to consider whether migration requires any earlier period data ( old data) to be migrated in GL. Ex) Last 2 yrs of GL data to facilitate reporting and compliance needs etc
      4. Four SL having 4 GL is now being migrated to one single ledger and supported by a secondary ledger. If these sub ledgers are merged, all supplier, customer transactions needs to be performed in single SL. You also need to consider security and operation aspects of this change. Ex) Post change, Bank kaccounts of 4 SL wiill be made available in single SL.

      These are the points which you need to consider at high level. Once you eloborate on the above points, you may come across many points/checklists which needs to be considered for this transformation activity.