Brazil and US and other countries

1. © Mahindra Satyam 2009
P2R – General Ledger
Set of Books – US V/s Local
Chart of Accounts – Global V/s Local
JDSU Oracle Global Roll out
PASSPORT
Beverley Baker-Harris
Senior Project Manager

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© Mahindra Satyam 2009
Agenda
• Approach for Set of Books and Chart of
Accounts differences
• Set of Books Differences:
• US GAAP V/s Local GAAP
• Different accounting year (Jul – Jun V/s Jan – Dec and
Apr – Mar)
• Different accounting periods (4/4/5 V/s Calendar
Month)
• Chart of Accounts Difference:
• Separate chart of accounts for Local Reporting
• Globalization of existing Chart of Accounts values

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© Mahindra Satyam 2009
Set of Books – US GAAP V/s Local GAAP
• Issue:
 Regional Countries need to use US GAAP for Corporate Reporting and Local
GAAP for Local Reporting
 Transactions can be accounted using only one accounting representation
and adjustments are required for the other
• Approach:
 Primary Accounting Method will be US GAAP
 Maintain Separate Set of Books – For Local Adjustments only
 Use Essbase to consolidate US GAAP and Local GAAP adjustment books for
Local Reporting Requirements

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© Mahindra Satyam 2009
Set of Books – Accounting Year
• Issue:
 Some countries in the regions use different Accounting Year for local
reporting such as Jan – Dec, Apr – Mar
 Since US Calendar will be used for Primary Set of Books, correct YTD
Balances will not be maintained for Local Reporting
• Approach:
 Use Essbase for extracting the balances as per the local Accounting Year
 Maintain Opening and Closing balances outside the system for local
reporting requirements

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© Mahindra Satyam 2009
Set of Books – Accounting Period
• Issue:
 US uses monthly calendar with 4/4/5 weeks in the months of a quarter
 Some countries in the regions use Calendar Months as the accounting
period for local reporting
• Approach:
 US Calendar will be used for the Primary Set of Books
 Minimum possible transactions to be entered and accounted during the
differential number of days
 Use Oracle Standard Reports / BRIO to identify transactions during
differential number of days to adjust the local books and local reporting

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© Mahindra Satyam 2009
CoA – Local Chart of Accounts - AX
• Local CoA Requirements in France / Spain / Italy:
 Account Values numbering has to follow the pattern specified by the
statute. This pattern is different from the Account Values numbering
followed by JDSU US. For example, all the accounts starting with 1XXXX are
Owner’s Equity Accounts in France, while they are Asset accounts in US .
 The account values, required for local reporting, are much more detailed
than in use in US, therefore Local CoA needs to be primary CoA for
accounting.
• Approach:
 Two Set of Books will be maintained, one with Local CoA (Primary) and the
other with US CoA (Secondary).
 Use Global Accounting Engine (AX) for accounting the transaction
simultaneously in both the books.
 The primary accounting method will be US GAAP and adjustments will be
made for local reporting requirements.

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© Mahindra Satyam 2009
CoA – Local Chart of Accounts - AX
Global Accounting Engine Solution
SolutionusingAXAccounting
Transactions in Sub-
ledger using Set of
Books with Local CoA
as Primary
Accounting created by
Global Accounting
Engine
Sub-Ledgers:
Payables
Receivables
Inventory
Accounting Entries posted
in Primary Set of Books
with Local Chart of
Accounts
Accounting Entries posted in
Secondary Set of Books with
Global Chart of Accounts
based on Account Mapping
Make required
adjustments for Local
GAAP through Manual
Journal Entries
Local Reporting
US Reporting
Make adjustments
for Manual Journal
Entries

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© Mahindra Satyam 2009
CoA – Local Chart of Accounts - BR
• Local Chart of Accounts requirements in Brazil:
 Local Chart of Accounts is required in Brazil only for reporting under
Accounting SPED.
 The daily transactions can be accounted using JDSU Global Chart of
Accounts.
 Account Mapping needs to be defined between JDSU Global Chart of
Accounts and the Local Chart of Accounts for Accounting SPED reporting.
• Approach
 There is no need to define a separate set of books with the Local Chart of
Accounts.
 Product Localization provides solution for reporting as per the Local Chart
of Accounts for Accounting SPED.

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© Mahindra Satyam 2009
CoA – Globalization of Segment Values
• Issue:
 The US Chart of Accounts contain accounting values, which are required for
Corporate Reporting / US Reporting only.
 Regional Countries may require to add certain values in the existing value
sets for Local Reporting
• Approach:
 Identify potential issues due to maintenance of Global Chart of Accounts
and arrive at the decision (Local CoA V/s Global CoA)
 Maintain one single Global Chart of Accounts to take advantage of central
maintenance and control
 Arrive at a decision and co-ordinate with Regional Finance Controllers to
identify the values required to be added (To be completed by 07-Jul-2010)

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© Mahindra Satyam 2009
Questions
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