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How do Oracle Users in China Set up COA’s?

How do Oracle Users in China Set up COA’s?

As promised during last week’s Webcast “Rolling Out Oracle in China: Meeting the Localization Challenge” we’re happy to provide the answers to questions that came up during the Q&A session that required further research.

  • Q: How do you handle the data stamp in case operations are in China while the Oracle instance is hosted in North America?
    A: Most of our clients who have subsidiaries in China face this situation. The time zone difference won’t result in too many difficulties to business operations in China . With global single instance, company can only setup server time to one certain time zone. However as mentioned during the Webcast, the ‘Time zone’ profile can display local time for local daily operations. For instance, if a China user sets up the profile as ‘China time zone,’ the user will be able to see local time when he/she process transaction in Oracle.

    The biggest challenge caused by ‘Time zone differences’ is that businesses need to define detail month-end procedures for all the operations across global to ensure transaction data are accurately recorded in correct period for each operation.

    Q: If we’re operating in China, can we have simply use the global COA without having to set up the second ledger?
    A: Even we suggest you setup 2 ledgers for your China subsidiary, one that confirms to US GAAP and another that conforms to China GAAP, however, setting up a secondary ledger is not a mandatory requirement in China. Before designing the ledger structure for a China subsidiary, you first need to see whether the existing COA can cover the detailed accounts required in China, and whether the GAAP difference under one ledger is controllable.

    If the answer to those two questions is yes, then you can follow the global COA and the primary ledger should be sufficient. In this case, you may use a global natural segment plus a local segment combination to represent one detail China account, while you need to carefully design the FSG for create statutory reports required in the People’s Republic of China.

    You can also add detail accounts for China in global COA, in this case, you need double check existing FSG reports to make sure necessary accounts won’t be impacted.

    In addition to the situation above, you also need to consider how to handle any GAAP adjustments that are required when you design the solution.

If you missed the Webcast, you can download a copy of it is available on our is Oracle R12 Right for You page.

Likewise, if you’re interested in China more information on rolling out Oracle in China, please take a moment to visit our China mini-site or download white papers on deploying Oracle in China from our white papers library.