China’s National Audit Office, or CNAO, is in charge of auditing both state-oriented enterprises and public sector entities in China. This government organization serves as the supreme audit institution of China and functions directly under the leadership of the prime minister.
The CNAO has defined a standard accounting interface for all public and state-owned entities, and has established that all ERP software must be accredited by the National Product Certification Center (NPCC).
In order to facilitate compliance, Oracle has provided a solution that not only fulfills the national accounting standard requirements, but also covers the most common cash-related transactions to enhance EBS.
The solution exports the data files requested by CNAO using the Financial Data Export and the existing FSG functions, and also includes the commonly required Cash Flow Statement. The data export function is a key localization solution provided in Oracle R12. It is based on a legal entity instead of using a set of books. For the most commonly requested reports, users can utilize the existing FSG and XML publisher to design them. If the users need these financial statements with separate layouts, they can easily configure the XML publisher accordingly.
Localization Patches increase the functional scope of Oracle R12 and streamline the accounting process by closing the gap between US corporate models and China’s local statutory requirements. These patches provide a seamless integration to prevent the unnecessary hassle of transferring data to fit different standards and thus to increase the company’s productivity. Functional areas such as BI publisher, Trading Community Architecture, and E-tax can all be streamlined using the Global Consolidation System, which allows for a high degree of configuration. China localization patch also provides some localization reports – currently Shanghai is the only city that enforces CASDI standard when registering companies’ newly adopted ERP/ accounting system.