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R12 = GL THEORY

General Ledger Cycle


1. Opening the periods
2. Enter / Import journals
3. Review journals
4. Post journals Inquiry
5. If require Run revaluation
6. If require Run Translation for consolidation
7. Review results
8. Prepare financials
9. Close the current period
10.

Open next period

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FLEX FIELDS IN GENERAL LEDGER:
1. Key Flex Fields
2. Descriptive Flex Fields
Key Flex Fields:

General Ledger:
Accounting KFF
Reporting Attribute KFF For reporting purpose.
GL Ledger KFF It is a mirror image of Accounting KFF. It is only
for internal purpose. It is used exclusively for certain GL features
such as Mass Allocations, Recurring Journals and FSG Reports.

Receivables:
Sales Tax Location Flex Field
Territory Flex Field

Fixed

Assets:
Category KFF
Asset Location KFF
Asset key KFF

Flex Field Qualifiers (Assign to Segments)


1.
2.
3.
4.
5.
6.

Balancing Segment FFQ


Cost Center Segment FFQ
Natural Accounts Segment FFQ
Inter Company Segment FFQ
Secondary Tracking Segment FFQ
Management FFQ

Segment Qualifiers (Assign to Segment values)


1. Allow Budgeting
2. Allow Posting
3. Account type (Assets / Liability / Expenses / Revenue / Ownership)
4. Third party control
5. Reconcile

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Assignment of FFQ to Segments

Company

Balancing Segment FFQ


Inter company Segment FFQ

Department
Accounts

Cost Center Segment


Natural Accounts Segment FFQ

Note:
One FFQ we can use only one time.
One segment we can assign to more than one FFQ.
We can create maximum 30 segments apart from General Ledger
Segment (Total 31).

1. Balancing

Segment:

We

generally

assign

these

qualifiers

for

Company segment, where usually balances are maintained.


2. Cost Centre Segment: We generally assign these qualifiers to
Department segment, where costs are spend or even gain.
3. Natural Accounts Segment: We generally assign these qualifiers for
Accounts segment, where it consist of accounting categories such as
Expenses, Revenue, Assets, Liabilities and ownership.
4. Inter Company Segment: (Optional): We generally assign these
qualifiers for COMPANY segment, using these qualifiers we are able
to perform inter company transactions.
5. Secondary tracking Segment: (Optional): Using these qualifiers we are
able to identify secondary tracking segment to process income
statement, closing transactions and revaluation.

6. Management Segment Qualifier:

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MSQ is used in Data Access set for allowing privileges to user other
than balancing segment values.

But we cannot assign Management segment FFQ for the segment for
which already Intercompany, Balancing and Natural accounts FFQ are
assigned.

Compile Structure:

Segment separator is used to separate the segments in the code


combination. (Dash, Period, Pipe and Custom).

Allow Dynamic Inserts: If we enable Allow Dynamic inserts, then we


are able to enter the all possible code combinations at the time of
transaction entry.
If we want to know how many code combinations in our
structure, multiply the number of values across the segments.
If we disable allow dynamic inserts, we cannot enter all possible
code combinations at the time of transaction entry.

Enable Freeze Flex Field Definition and click on Compile


button.

The structure information will get stored in a tabular form


GL_Code_Combinations_KFV.

Primary Ledger (Set of Books) 4 Cs


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4 Cs
Chart of Accounts (Structure, Segments & Segment values)

Currency

Calendar

Accounting Convention Method (Accrual / Cash)

Pre requisites for Chart of Accounts

Value Set

Structure and Segments

Segment Values

Value Set:
Value set is Set of rules or properties which are going to enforce or attach to
segments.
Upon enforcing or attaching value set to the Segment, your segment will
behave or act according to the value set.

Validation Types in Value Set

Independent: If validation type is independent, we can define values


for the value set and we can use at the time of transaction time.

Dependent: If validation type is dependent, then we cannot define


values for value set. Dependent values are always depending on the
independent value set.

None: If validation type is none, we cannot define values for the value
set. User can enter desire value at the time of transactions entry.

Pair & Special: Used in the programs to add additional pop up


window for parameters.

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Table: If validation type is table, then we can not define values but we
can use values from tables.

Translate dependent & Independent: We use to translate the


segment values into desire language.

Contents of Value Set


List Type

Security Type

Format type

Validation Type

3 Types

3 Types

7 Types

8 Types

1. List of Values

1. No Security

1. Char

1. Dependent

2. Long List of Values

2. Hierarchical

2. Date

2. Independent

3. Pop List

3. Non Hierarchical

3. Date Time

3. None

4. Number

4. Pair

5. Standard date

5. Special

6. Standard date
time

6. Table

7. Time

7. Translatable
Independent
8. Translatable
Dependent

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Currency:
Monitory currency: Functional Currency, Foreign Currency
Non Monitory currency: STAT Currency
Calendar:
Accounting Calendar: Calendar & Fiscal Calendar
Transaction Calendar

Period Type

General ledger have 3 standard period types:


1. Month
2. Quarter
3. Year

Period types are used in defining Accounting Calendar.

Each ledger has an associated period type.

When you assign a calendar to a ledger using Accounting Setup


Manager, the ledger only accesses the periods with the appropriate
period type.

You can assign up to 366 accounting periods per fiscal year for any
period type, and maintain actual balances for those periods.

For example, you could define a Week period type and specify 52
periods per year.

However, for budgets you can only use the first 60 periods.

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Calendar Status:
1. Open
2. Closed
3. Permanently Closed
4. Future Entry
5. Never Opened

Year Types
1. Calendar
2. Fiscal

There are 5 types of period status:


Status

Entry Posting

1. Never opened

2. Open

3. Closed

4. Future

5. Permanently Closed

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Mandatory Accounts for Set of Books


1. Retained Earnings Account (Ownership)
2. Translation Adjustment Account (Expenses)
3. Suspense Account (Assets / Liabilities)
4. Rounding Difference Account (Expenses)
5. Reserve for Encumbrance (Ownership)
6. Net Income (Expenses / revenue)
Note:
From the above Retained Earnings account is mandatory to create primary
ledger. Remaining 5 accounts are optionally mandatory based on the
requirement.
1. Retained Earnings:
Retained earnings are accumulated profits. Whereas net income means
current year profits
2. Translation adjustment account:
Translation is conversion of functional currency or local currency into
foreign currency for reporting purpose.
Translation basically uses 2 rates: period average rate & period end
rate.
Translation uses period average rate to translate all profit and loss
account balances. (Expenses & revenue)
Translation uses period end rate to translate all balance sheet
balances. (Assets & Liabilities)

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3. Suspense Account:
When ever, user is going to enter Debit without credit or credit without
debit or debit balances are not matching with credit balances, in this
case, system will automatically populate Suspense account.
Error: 6

unbalanced journal entry, suspense not allowed

Conversion rate types: 3


1. Spot
2. Corporate
3. User (Reporting)
Spot:
An exchange rate which you enter to perform conversion based on the rate
on a specific date. It applies to the immediate delivery of a currency.
Corporate:
This rate is generally a standard market rate determined by senior financial
management for use throughout the organization.
User (Reporting):
An exchange rate you specify when you enter a foreign currency journal
entry.

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Journal Source

It is a Journal component; it is used to identify the ORIGIN of the


journal.

To define journal source: Setup Journal Sources.

When we import data from legacy systems to GL we require source


names.

Importing journal Reference:


To import detailed information from summary journals we use this
option.

Require Journal approval:


This field is used to get the journal approval by higher management
for different journal sources.

Import using key: This is used to define whether journals will be


imported using source key or not.

Freeze Journals:
To freeze the journal source, preventing users from making changes to
any un posted journals from that source, or reversing journals for Sub
ledger Accounting journal sources.

Effective date Rule:


1. Fail
2. Leave alone
3. Roll Date

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Fail: Journal Import will reject transactions when the effective date is
not a valid business day. No posting takes place.

Leave Alone: Journal import will accept all transactions regardless of


the effective date.

Roll Date: Journal Import will accept the transaction, but roll the
effective date back to the nearest valid business day within the same
period. If there is no prior valid business day within the same period,
the effective date is rolled forward.

Note: The Effective Date Rule field will not appear unless you have
average balance processing enabled for at least one ledger.

Journal category

Journal Category determines the purpose or type of the journal entry.

When you enter a journal you specify a journal category.

Examples:
1. AP Invoices
2. AP Payments
3. Adjustment
4. Budget
5. Intercompany
6. Inventory
7. Payments
8. Payroll
9. Receipts
10.

Year end close.

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Enter Journals

It is used to record the day to day business transactions. It contain Dr


and Cr lines. Always debit must be equal to credit.

You can enter several types of journal entries, including foreign


currency journals, statistical journals, and intercompany journals.

Journals can be created in two ways:

1. manual:

1. Manual 2. Import

Enter journals manually by using navigator

Navigation to enter Journal: Journals Enter


Manual journals can be enter in 2 ways:
1. individual Journal

2. batch Journal.

Journal body contains two areas:


1. Header 2. Lines

We have 2 types of methods:


1. Standard Journal 2. Average Journals

We have 3 types of balances:


1. Actual 2. Budget 3. Encumbrance.

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Reverse Journal

We generally reverse that journal, which got entered also got posted,
where you find there is an error in the posted entry.

Once the journal is got posted it wouldnt allow the user to make any
changes.

The only solution or remedy is to reverse the journal.


In order to reverse the journal, first review the journal, use reverse
button available in the journal window, also indicate the period where
the reversal entry should get created.

Navigation: Journal Entry


Once we reverse the journal system will create one un posted journal,
showing the earlier debit balance to credit side & earlier credit balance
to debit side.

Post this un posted journal.


After the journal reversal the particular account in the journal will
show the balance Zero.

Reverse is of two types:

Change sign (Profile option is required)

Switch Dr/Cr.

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BUDGETS
Budget is nothing but: better planning and controlling of the funds for future
usage.
In oracle we can define budgets up to 60 periods
There are 2 types of budgets
1. Planning budget (Revenue Budget)
2. Funding budget (Expenses Budget)

Planning Budget
This is used for only planning purpose. System will not be controlling under
this budget.
For planning budget we cannot create budget journals

Funding Budget
Under funding budget we can plan and control the expenses.
We can create budget journals in funding budget.
Setup Steps:
1. Create Reserve for encumbrance account
2. Enable:
budgetary control
Require Budgetary journals
Assign Reserve for Encumbrance account
At Ledger level
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3. Define expenditure head of accounts
4. Define Budget and open next year

5. Define Budget organization:

Set sequence
Set password for budget
Set range for accounts
Create Budget Rules
Select funds check level
Select amount type

6. Create Budget Journals


7. Query the budget journals and post
8. Create journal entry using budget account

Balance types: 3
1. Budget
2. Actual
3. Encumbrance
Budget balances are planned amounts at initial stage.
Actual balances are paid amounts so far.
Encumbrance balances are reserved amounts for future payments.
Funds Check Level: 3
1. Absolute
2. Advisory
3. None
If we use absolute we cannot use more than the amount what we specified.
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If we use Advisory, system will give caution if we cross the amount given
If we use None, System will not give any caution, and we can enter the
more amounts also.

Amount Types: 4
1.
2.
3.
4.

PTD: Period to date:


QTD: Quarter to date:
YTD: Year to date:
PJTD: Project to date:

One month
3 months
1 year
Depends on project beginning date

Budget Rules: 8
1.
2.
3.
4.
5.
6.
7.
8.

Divide evenly
Repeat per period
4/4/5
4/5/4
5/4/4
Prior year budget monetary
Current year budget monetary
Prior year budget STAT

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Mass Allocation
Mass allocation means:
Allocation of Revenues and cost expenses across any cost center,
department or division by using of parent values by using simple formula.
Example: Rent paid based on square feet used.
Formula:

T = A x B/C

A = Cost pool Amount


B = Usage factor
C = Total Usage
T = Target Account
O = Off set account
Segment types in mass allocation:
1. Constant

2. Looping 3. Summing

Mass Allocation Methods:


1. Full type allocation

2. Incremental Allocation

11i Steps:
1. Define STAT Currency
2. Create SFT account
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3. Create STAT journal with SFT account
4. Set up parent department and set up parent & child relation
5. Prepare mass allocation formula
6. Run mass allocation
7. Review and post journal

Mass allocation formula:


Formula

Amount

100000

Account
-

Currency
-

C-L-C-C

STAT

C-S-C-C

STAT

C-L-C-C

INR

C-C-C-C

INR

R 12 Steps:
Step: 1

Create Usage factor account and Cost pool account


Nav: Setup Financials Flex fields key Values

Step: 2

Define Parent and child values for departments


Nav: Setup Financials Flex fields key Values

Step: 3

Create cost pool journal and post.


Nav: Journal Enter

Step: 4

Create and Post Statistical Journal


Nav: Journal Enter
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Step: 5

Define and Generate Mass allocation formula


Nav: Journals Define Allocation

Step: 6

Query mass allocation journal


Nav: Journals Enter

Types of Journals
1. Functional Currency Journal
2. Foreign Currency Journal
3. Recurring Journal
4. Tax Journal
5. Revaluation Journal
6. Suspense Journal
7. Reverse Journal
8. Mass allocation Journal
9. STAT currency Journal
10.

Budget Journal

11.

Batch Journal

12.

Manual Encumbrance Journal

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Suspense Journal

As per accounting principles Debit amount should always equal to


Credit amount for the same Company Value.

If both amounts are not equal, the difference amount will go to


Suspense Account.

Setup required for Suspense Journal:


1. Create Suspense Account (Expenses / Revenue)
Navigation: Setup Financials Flex Fields Key Values.
2. Enable suspense account feature at ledger level under journal
processing tab
Navigation:
Setup Financials Accounting setup manager Accounting setup
3. Define Suspense account Rules
Navigation: Setup Accounts Suspense
4. Create Journal / Review Journal
Navigation: Journal Enter.
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Recurring Journal

Journals which are repeating every accounting period is called a


recurring journal.

Recurring journals are 3 types:


1. Standard Recurring Journal
2. Skeleton Recurring Journal
3. Formula Recurring Journal
Standard Recurring Journal:
Under standard recurring journal method same accounts with the same
amounts will be effected with the each accounting period. We know account
and amount already.
Skeleton Recurring Journal:
Under skeleton journal method partial information will be entered at the time
of recurring journal creation. We know the account but do not know the
amount.
Formula Recurring Journal:
Using formula recurring method, journal lines amounts will be calculated by
recurring journal program based on simple formula.
Recurring Journal Setup

Step:1

Define Recurring Journal

Navigation: Journals Define Recurring.

Line:1

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Enter Expenses account (Debit Account) and the amount for Standard
Recurring Journal
Enter only Debit account for Skeleton recurring, do not enter amount
Enter debit account & enter the formula for the amount for Formula
recurring journal

Line: 2

Enter the credit account


We can enter 9999 lines in a recurring journal. In which 9998 lines are
for debit lines and only one line is for credit line. We call this line as
offset account line. Hence we have to enter line 2 as a offset line and
key in the number 9999 in line 2.
Do not enter amount for line 2. System will add all the debit lines
amount and consider the credit amount as offset account.
If you wish to enter more credit lines, we have to give negative sign
for the lines, for example -9998, -9997 etc.

Step: 2
Generate the recurring journal = Click on Generate button
Say Submit
Schedule the journals for recurring.
Enter parameters
Run program.

Step: 3
Ensure Concurrent program completed Normal View Request

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Step: 4
Query the recurring journal and post.

Journal Enter.

With the above report system will generate un posted journals in GL.,
With the source: recurring.
Post the journals after review.

REVALUATION
Revaluation reflects the changes in the exchange rates.
For example:
Invoice

May 5th

$1000

Rs 45

Rs 45000

Payment

May 10th

$1000

Rs 47

Rs 47000

If paid on

May 25th

$1000

Rs 43

Rs 43000

In the above example gain or loss is Rs 2000


Setup Steps:
1. Define un realized gain or loss accounts
2. Define exchange rate type
3. Define daily rates for the date of journal entry (USD INR)
4. Define daily rates for the date of Payment (USD INR)
5. Enter foreign currency journal
6. Run revaluation
Enter name and description for revaluation
Currency Options: Choose single currency & USD
Rate Options: Choose Daily Rates & Exchange rate type
Choose Unrealized gain & loss accounts
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Choose revaluation ranges
Say Revalue
Submit request window will open
System choose automatically program as Program Revalue
balances

Choose parameters:
Ledger
Revaluation batch
Period
Effective date
Say OK
Submit
View request
Ensure program completed normal

7. Query revalue journal and post it

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Tax Journal
Steps:
1. Enable Journal Entry Tax at Ledger level under Journalling tab
2. Define input tax codes and assign GL account
3. Set up tax options: Allow tax code override
4. Enter and post journal

Manual Encumbrance Journal


Encumbrance means is reserve the funds for future usage.
We do not do this practice in real time.
Navigation: Journal Encumbrance

Category: Expenditure
Source:
Encumbrance
Balance type:
Encumbrance
Type:
Encumbrance

Approval is not applicable

TRANSLATION

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Translation is used to convert the accounting balances from Functional
Currency to Foreign currency at Balances level
This activity is done at a particular period end
This is an off line activity
Translation is done at balances level
We can report in number of currencies No limit
We use 3 types of rates:
1. Period end rate:

Assets & Liabilities

2. Average rate:

Expenses & Revenues

3. Historical rate:

Ownership

Translation is part of Consolidation


We cannot run Translation for first period

Account type

Rate

Expenses

Period average rate

Revenue

Period average rate

Assets

Period end rates

Liabilities

Period end rates

Ownership / Equity

Historical rates

Setup Steps:
1. Create Cumulative Translation Adjustment account
2. Define exchange rate type
3. Define daily rates
4. Assign rate type & CTA account to ledger
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5. Run Translation
6. Run Trial balance Translation report

** Exchange rate type is used to build relationship between the two


currencies
There are various exchange rate types
1. Corporate
2. Marketing
3. User
4. Spot
Corporate type is used for rates which are defined by the higher
management in the organization.
Market rate is at present what the rate in the market is
User rate: At the time of transaction entry user can enter applicable
exchange rates
Spot rate is a kind of market rate

MRC MULTI REPORTING CURRENCY


To convert the balances from functional currency to foreign currency at
transaction level (at journal entry level) we use reporting currency.
In reporting feature we will be having one primary ledger and unlimited
reporting ledgers.
Setup Steps:
1. Define rounding difference account
2. Assign rounding difference tracking asset at ledger level
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3. Define exchange rate type
4. Define daily rates
5. Define reporting currency options at primary ledger level
6. Define reporting GL responsibility
7. Assign reporting ledger to responsibility
8. Assign responsibility to user
9. Open periods in reporting ledger
10.

Create journal and post in primary ledger

Difference of MRC & Translation


MRC
Transaction level
Up to 8 Currencies
On line activity
Daily Rates

TRANSLATION
Balance Level
No limit of Currencies
Off line activity
Average, Period end & historical rates

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We can run at any point of time

Part of consolidation
We cannot run for first period

Auto Post

We can post the journals automatically by specifying the some criteria


in Auto post criteria set.

Criteria could be: combinations of ledger or ledger set, journal source,


journal category, balance type, and period.
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Once you define an Auto Post criteria set, run the Auto Post program
to select and post any journal batches that meet the criteria defined by
the criteria set.

You can also schedule the Auto Post program to run at specific times
and submission intervals.

You can submit the Auto Post program or schedule Auto Post runs
directly from the Auto Post Criteria Sets window. Alternatively, you can
use the Submit Request window.

Steps:
1. Define auto post criteria
Navigation: Set up Journal Auto Post
2. Enter Journal
Navigation: Journal Enter
Enter Journal lines
Save journal
Do not post
Check to see Auto post program completed successfully

Auto Reversal

Auto reverse is nothing but, reversing journal automatically based on the


criteria that we specify.
Criteria could be:
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Journal category
Reversal Method
Reversal period
If you routinely generate and post large numbers of journal reversals as part
of your month end closing and opening procedures, you can save time and
reduce entry errors by using Automatic Journal Reversal to automatically
generate and post your journal reversals.
Prerequisites for Auto Reversal:

The journal balance type is Actual.

The journal category is enabled to be Auto reversed.

The journal is posted but not yet reversed.

The journal reversal period is open or future enterable.

Note: Automatic Journal Reversal reverses posted journals of


the balance type Actual. You cannot use this feature to
automate budget or encumbrance journal reversals.

Auto Reverse - Set up steps:


1. Define reversal criteria
Navigation: Set up Journal Auto reverse
Choose:
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Category
Method: Switch Dr / Cr
Reverse period
Reversal date
Enable check box:
Auto reverse
Auto post reverse
2. Enter one journal with above category
3. Perform inquiry on account balances

4. Run Program Automatic reversal


Navigation: Reports Request Standard
5. Perform inquiry on account balances

SEQUENTIAL NUMBERING
Sequential numbering is used to assign unique number to the various
transactions.
System will assign serial numbers to the data flows in to General
Ledger through sub ledger accounts based on the category.

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The transactions are Journals, AP Invoices, AP payments, Bank
accounts, AR invoices and AR receipts etc.
Sequencing information is available for querying and display of
journals.
You can call either sequential numbering or Document category or
voucher numbers.

SLA provides 2 different sequence mechanism for sub ledger journal entries:
1. Accounting Sequence
2. Reporting Sequence
Accounting Sequence:
The accounting sequence is assigned to sub ledger accounting journal
entries at the time that the journal entry is completed.
Reporting sequence:
The reporting sequence is assigned to both sub ledger accounting journal
entries & General Ledger journal entries, when the General Ledger period is
closed.
This sequence is used by most of the legal reports required in some
countries, as the main sorting criteria to display the journal entries.
Reporting sequence is optional
These two sequences are not mutually exclusive, and, can coexist in
the same journal entry

Setup Steps
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1. Define Sequential numbering profile option at responsibility level
Navigation: System administrator
Profile System
2. Define sequential numbering
Navigation: System administrator
Application Sequence numbering Define

3. Assign sequential number to the Category


Navigation: System administrator
Application Sequential numbering Assign

4. Create Journal
Navigation: General ledger
Journals Enter

** Automatic: System generate number after saving journal


** Manual: user has to enter number manually
** Gapless: No gap for the journals from different sources

JOURNAL APPROVAL
Journal approval is an additional security feature to post the journals using
this feature we can define approval limits for employees.
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Setup steps:
1. Enable journal approval at ledger level
Navigation: General ledger
Setup Financials Accounting setup manager Accounting setup

2. Enable journal approval at journal source


Navigation: General ledger
Setup Journal Sources

3. Define approval limits for employees


Navigation: General Ledger
Setup Employees Limits

4. Create user and assign employee to user


Navigation: System Administrator
Security User Define

5. Log in with employee user and create journals


Navigation: General ledger
Journals Enter

** in 11i: we have to assign profile option to GL Responsibility, that is,


Journals: Allow preparer approval through system administrator
Navigation: Profile System

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Approver Methods:
1. Go up management chain
2. Go Direct
3. One Stop then go direct

Difference between Security rules and cross


validation rules
Security Rules (SR)

Cross validation rules (CVR)

SR enabled at Responsibility level

CVR enabled at structure & chart of


accounts level
All list of values are displayed, but we
will get error message for invalid code
combination
Error message will displayed in CVR
CVR restrict user for invalid code
combination

List of values are not displayed for those


combination where SR was enabled
No error message will displayed in SR
SR restrict permission for segment
values

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SECURITY RULES
Security rules are used to restrict the user from entering segment values.
It will work at responsibility level.
Step: 1

Enable security at value set

Navigation:
Set up Financials Flex fields Validation Sets
Step: 2

Enable security at segment level

Navigation: Set up Financials Flex fields Key Segments


Step: 3

Define Security rules

Navigation:
Setup Financials Flex Fields Key Security Define
Step: 4

Assign Security rules to the responsibility

Navigation:
Setup Financials Flex Fields Key Security Assign
Step: 5
Navigation:

try to create Journal with 03 Company segment value


Journal Entry

Say New Journal


You will see only 2 segments, restricted company value is not visible
If you try to enter restricted segment value, system will through error
message

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CROSS VALIDATION RULES


It is used to restrict the end users from entering code combinations.
It will work at structure level.
Step: 1

Enable cross validation rules at structure

Navigation:
Setup Financials Flex Fields Key Segments
Step: 2

Define cross validation rules

Navigation:
Setup Financials Flex Fields Key Rules
Step: 3
Navigation:

Enter journals using restricted code combination


Journal Enter

System will through error message after you select the restricted code
combination

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DEFINITION ACCESS SET


Definition access set will work at Responsibility level.
DAS is used to provide access in 3 ways to the users for various definitions:
1. Use
2. View
3. Modify

Step: 1

Define Definition Access Set

Navigation:
Set up Financials Definition Access sets Define
Step: 2

Assign Definition Access set to Responsibility

Navigation:
Setup Financials Definition Access Sets Assign
Step: 3

Enable Security for accounting Calendar

Navigation:
Setup Financials Calendars Accounting
Query your accounting calendar
Select check box Enable Security
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Say Assign Access
Choose Definition Access set

ALIASES
Aliases are used to define the short name for account code combinations
Step: 1

Define Aliases

Navigation:
Setup Financials Flex Fields Key Aliases
F11
Query your structure
Shorthand:
Select check box: Enabled
Enter Max alias size
Prompt: Short Name
Go to Alias, Descriptions tab
Enter alias name
Choose values for Template
Go to Aliases, Effective tab
Enter from date
Save
Step: 2

Compile Accounting Structure

Navigation:
Set up Financials Flex Fields Key Values
Step: 3
Navigation:

Enter Journal to check the Alias result


Journals Enter

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LEDGER SET
Ledger set is used to access multiple Ledgers information from single
responsibility.
Using Ledger set we can group only Ledgers which are having same Chart of
Accounts and same Calendars.
Step: 1
Define ledger sets
Navigation: Setup Financials Ledger Sets
Enter Name and Short name
Choose:
Chart of Accounts
Calendar
Default Ledger
All other ledgers you want to group
Save.
Step: 2
Assign Ledger set to responsibility
Navigation:
System Administrator
Profile System
Choose responsibility
Profile Option: GL: Data Access Set
Choose Ledger set
If you assign both the profile options: GL Ledger Name & GL Data Access Set
System will choose first Data Access set

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DESCRIPTIVE FLEX FIELD


If you want to have additional field in standard forms, DFF is used to capture
the additional information of organization.
Step: 1

Enable and Define DFF fields

Navigation:
Setup Financials Flex Fields Descriptive Segments
Query Application: General Ledger
Title: Enter Journals: Journals
Prompt: Context or Enter DFF
Enable check boxes: Required & Displayed
Click on Segments
Enter the fields
Save
Close this window
Freeze Flex Field definition
Say Compile

Step: 2

Enter Journal to view DFF

Navigation: Journal Enter


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New Journal
Enter Journal as usual
Click on DFF check box to enter DFF fields

CONSOLIDATION
Consolidation is used to consolidate the multiple subsidiary ledger
information into parent ledger.
In other words, Consolidation is used for preparation of financial reports of
parent and subsidiary companies.
If both companies are using different currencies, translation is required.
After translation data will be remain in the same books.
By using consolidation concept, we transfer data from subsidiary to Parent
SOB.
For Translation of fixed assets balances, revaluation is required.
The difference will go to unrealized gain / loss account.
The difference of 3 rates will go to CTA Account (Cumulative Translation
adjustment account)
There are 2 types of consolidation methods:
1. Balance
2. Transaction
** Transaction method is used when we have same currency for parent and
subsidiary ledger

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** Balancing method is used when we have different currency in parent and
subsidiary ledger

Consolidation Rules: 2
1. Segment Rules
2. Account Rules
Segment Rules again classified in to 3
1. Use roll up rule from
2. Use copy value from
3. Assign single value
** If codes are different:
** If codes are same:
** If structure is different

Co2 Co1 Use roll up rule from


Do1 Do1 Use copy value from
Assign single value

Setup Steps:
1. Define Parent Ledger and required Subsidiary Ledgers
2. Define Parent and Subsidiary GL Responsibilities
3. Assign Ledgers to Responsibilities
4. Assign responsibilities to users
5. Define Exchange Rate type
6. Define Daily Rates
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7. Complete currency translation options
8. Define consolidation mapping in the Parent ledger
9. Open periods in parent and subsidiary ledgers
10.

Define Consolidation set

11.

Enter and post journals in each subsidiary ledger

12.

Run translation

13.

Transfer data in to Parent ledger

14.

Query the Consolidation journals in the Parent Ledger and post

Step: 7
Complete Currency translation options in parent and subsidiary ledger
Navigation:
Setup Financials ASM Accounting Setup
Query your Ledger
Go
Update Accounting options
Click on Update of Ledger set up step
Go to Ledger Options tab
Under Currency Translation options
Choose:
Default period end rate type
Default period average rate
Cumulative Translation Adjustment Account
Say Finish
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Step: 8

Define consolidations mapping in the parent ledger

Navigation: General Ledger


Consolidation Define Consolidation
Name Consolidation Mapping
Enter Description
Consolidation Attributes:
Choose Parent Ledger
Choose Subsidiary Ledger
Currency: INR
Method: Balances
Usage: Standard

Run Options:
Select check boxes
Run Journal Import
Create Summary Journals
Auto post

Click on Mapping
Enter Mapping Name and Description
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Choose Target & Source Chart of Accounts
Click on Segment Rules
Choose Target Segment Values
Choose Action: Copy value from
Choose Source Segment values
Save and close this window
Choose mapping in Consolidation Definition window

Step: 10

Define Consolidation Set

Navigation: General Ledger


Consolidation Define Consolidation set
** Consolidation set is used to group the consolidation mapping
Enter Consolidation set name
Choose Parent Ledger
Method: Balances
Choose Run options
Chose Consolidation mapping
Save

Step: 12

run the translation in each subsidiary ledger

Navigation: Subsidiary ledger


Currency Translation

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Step: 13

Transfer data in the parent ledger

Navigation: Parent General Ledger


Consolidation Transfer Data Set
Choose Consolidation set
Usage: Standard
Balance Type: Actual
Currency: INR
Method: Balances

Subsidiary:
Amount type: PTD
Choose Period
Click on Query consolidation system will automatically select consolidation
mapping
Say Transfer
Ensure program completed normal

ROLL UP GROUP & SUMMARY ACCOUNTS


Step: 1

Create summary accounts at chart of account level

Navigation: Setup Financials Flex fields Key Values


Step: 2

Create Roll up group

Navigation:
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Setup Financials Flex fields Key Groups
Step: 3

Assign Roll up group to parent account at COA level

Navigation:
Setup Financials Flex fields Key values
Select parent Account
Go to Value, Hierarchy, Qualifiers
Group: Choose Roll up group
Save
Step: 4

Create Summary Accounts

Navigation:

Name:

Setup Accounts Summary

Enter Name

Choose Ledger
Enter Template values:
Company: D
Department: D
Account: Choose Roll up group
Sub account: D
Product: D
Say OK
Choose: Earliest period
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Save
Status: Adding
Go to View Request
Ensure program completed normal
Step: 5
Navigation:
Step: 6

Pass a journal entry with these accounts and post it


Journal Enter
Inquiry of Account balances

Navigation: Inquiry Accounts


Choose Summary Template
Choose parent account
Click on Show balances
Average Balances

Average balances are in General used by banking sectors.


Through this we will find out the account balances for working days
only
We have to setup working days and non working days through
Transaction Calendar in general ledger.
If you choose transaction calendar, system will not allow user to
record any type of transaction on non working days, and we can see
the balances on daily basis also.
Steps:

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1. Set up Transaction calendar
2. Create new set of books, assign this transaction calendar to new SOB
3. At SOB Enable average balances and assign Net income account
(No, No, Revenue, No, No)
4. Create new responsibility for general ledger average balances
5. Assign profile option GL Ledger name to the GL responsibility
6. Assign this responsibility to user
7. Open periods in SOB
8. Enter journal to see whether non working days enabled or not
9. We can inquiry the balances by specific day wise (Only for Balance
sheet items)

Financial Statement Generator FSG

FSG is dynamic tool in General Ledger to build reports such as Balance


Sheet and Income Statement.
Through FSG we can build reports in simple manner without writing
any codes.
The report is consist of Rows and Columns, and is used Row set &
Column set to define rows and columns.
Steps:
1. Define row set
Navigation: Reports Define Row set
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2. Define Column set
Navigation: Reports Define Column set
3. Define Report
Navigation: Reports Define Report
4. Run Report
Navigation: Reports Requests Financial

General Ledger period Closing Procedures


1. Set the status of the first accounting period in the new fiscal year to Future Entry.
Note: The first period of the new fiscal year should not be opened until all of the yearend
processing for the last period of the current year has completed.
2. Transfer data from all of your subledgers and feeder systems to the GL_INTERFACE table.
3. Run the Journal Import process to populate the GL_JE_BATCHES, GL_JE_HEADERS, and
the GL_JE_LINES tables. This can be done automatically from the subledger systems, or
manually from Oracle General Ledger.
4. Close the period for each subledger. This prevents future subledger transactions from being
posted to General Ledger in the same period.
5. Review the imported journal entries in Oracle General Ledger. You can review them online or
in reports. Reviewing journal entries before posting minimizes the number of corrections and
changes that need to be made after posting.
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Below is a list of useful reports:
Journal Batch Summary Report
General Journal Report
Journal Entry Report
Journal Line Report
Journal Source Report
Journals by Document Number Report (when document sequencing is used)
Unposted Journals Report.
6. Post the imported journal entries. You can also schedule Autopost to pick up and post
journals transferred from subledgers on a regular basis. This reduces the volume of posting done
at month end.
8. Revalue balances to update foreign currency journals to your functional currency equivalents.
9. Post all journal entries, including: manual and reversals.
10. Update any unpostable journal entries and then post them again.
Common reasons for unpostable batches include:
Control total violations
Posting to unopened periods
Unbalanced journal entries
11. Run General Ledger reports, such as the Trial Balance reports, Account Analysis reports, and
Journal reports.
12. Create and post adjusting entries and accruals in the adjusting period.
13. Run Trial Balance reports and other General Ledger Reports in the adjusting period after
adjustments are made.
14. Close the last period of the fiscal year using the Open and Close Periods window.
15. Open the first period of the new fiscal year to launch a concurrent process to update account
balances. Opening the first period of a new year automatically closes your income statement and
posts the difference to your retained earnings account specified in the Set of Books form.
16. Run FSG reports for the last period of the year.

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