GL - Functional Overview - I

Contents Page

Contents Page No 1) Overview . 04 2) Implementation Flow Chart - Create Set of Books 06 3) Responsibilities . 08 4) Set of Books Components ... 09 5) Accounting Flex-field Structure ... 10 6) Value Sets ... 12 7) Segment Values Definition ... 13 8) Parent and Child Values ... 14 9) Security Rules . 16 10) Cross Validation Rules .. 17 11) Period Type and Accounting Calendar 18 12) Currency . 19 13) Define Set of Books 20 14) Implementation flow chart - Define Accounts 22 15) Summary Accounts 23 16) Implementation flow Chart - Define Controls 24 17) Account Aliases .. 25 18) Budgetary Control Groups . 26

Contents Page Contents Page No

19) Encumbrance Types . 27 20) Oracle General Ledger - Other Modules 28 21) Oracle General Ledger Accounts Cycle .. 29 22) Journal Entries .. 30 23) Revaluation . 32 24) Translation . 33 25) Consolidation . 34 26) Recurring Journals 36 27) Mass Allocation Journals .. 37 28) Document Sequencing 38 29) Budgeting 39 30) Financial Statement Generator (FSG) . 42 31) General Ledger Desktop Integrator (GLDI) 44

Overview. ..

Oracle General Ledger is a comprehensive Financial Management solution that dramatically

enhances financial controls, data collection and financial reporting throughout your enterprise.

FY97 PLAN
Journal Entry Jan-97 to Dec-97 Sales... CC100 Finance...CC200

Actual Accounting Information

Budget Accounting Information

Encumbrance Accounting Information

Account Balances General Ledger Review Accounting Information

Manipulate Accounting Information

Online Reports

 Overview

Central Repository

Oracle General Ledger is the central repository of accounting information, receiving transactions from both Oracle and non-Oracle sub-ledgers.

Accounts Payable Project Accounting

Revenue Adjustments Invoices Payments

Depreciation Asset Transactions

Fixed Assets

General Ledger

Invoices Cash Receipts

Accounts Receivable

WIP Transactions Inventory Transactions

Accrued Receipts

Cost Management

Purchasing

Implementation Flow Chart- Create Set of Books

Create Set Of Books

Step 1

Create Set Of Books

Step 6

Define Accounts

Define Controls

Define Responsibilities
Step 2

Define Cross Validation Rules

Step 7

Define Value Sets

Step 3

Define Period Types

Step 8

Define Flexfield Structure

Step 4

Define Accounting Calendar

Step 9

Define Segment Values

Step 5

Define Currencies
Step 10

Define Security Rules

Define Set Of Books

Responsibilities

A responsibility in Oracle Applications determines the privileges available to user

General Ledger User:

Cannot change any Setup Options

General Ledger Super User:

Can change any Setup Options

Cannot Post Journal Entries Cannot see the Financial Statements Can only enter Journal Vouchers

Can Post Journal Entries Can see the Financial Statements Has the option to exercise any valid option in Oracle General Ledger

Set Of Books Components

A Set of Books is a Group of Companies or Funds that share the same Accounting Flex-field Structu
Calendar and Functional Currency.

01-021-011-00000-000-50146-000-000 01-011-011-00000-000-50120-000-000 01-031-011-00001-000-50136-000-000 01-041-011-00000-000-50136-000-000 01-051-011-00000-000-50146-000-000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Accounting Calendar Assign Assign

INR Functional Currency

Accounting Flexfield Structure

ISB Set Of Books

Accounting Flex-field Structure

Accounting Flex-field Segments

Company Balancing Segment

Department Cost Center Segment

Account Natural Account Segment

Company
Value Sets Format: Char Maximum Size: 2 Validation: Independent

Department
Format: Char Maximum Size: 3 Validation: Independent

Account
Format: Char Maximum Size: 5 Validation: Independent

Accounting Flex-field Structure

What is a Balancing Segment?

An Accounting Flex-field segment that you define so that Oracle General Ledger automatically balances all journal entries for each value of this segment. For example, if your company segment is a balancing segment, Oracle General Ledger ensures that, within every journal entry, the total debits to company 01 equal the total credits to company 01.

Value Sets

Value Sets are defined to specify the types of values which can be used for Each Accounting
Flexfield Segment

Each Segment in the Accounting Flex-field Structure will be assigned a

Company
Format: Char

Value Set

Department
Format: Char Maximum Size: 3 Validation: Independent

Account
Format: Char Maximum Size: 5 Validation: Independent

Maximum Size: 2
Validation: Independent

Segment Values Definition

Accounting Flex-field Segments

Company Balancing Segment

Department Cost Center Segment

Account Natural Account Segment

Company
Format: Char Value Sets Maximum Size: 2 Validation: Independent

Department
Format: Char Maximum Size: 3 Validation: Independent

Account
Format: Char Maximum Size: 5 Validation: Independent

Segment Values

01 02

001 002

10101 20101

Parent and Child Values

Parent Values Total Assets

Child/ Parent Values

Fixed Assets

Current Assets

Child Values

Land

Building s

Cash

Bank

Stock

No limit to number of levels No limit to number of entities on each level

Parent and Child Values

Parent Values :
Assign ranges of Child values to Parent Values No Posting is done to Parent Values

Budgets are not entered directly for Parent Accounts

Child Values :
Post journals directly to Child segment values Enter Budgets directly to Child Segment Values
Natural Account Segment values are to be qualified as Assets, Liabilities, Ownership/Stock,

Revenue or Expenses

Security Rules

Control Access to ranges of Accounting Flex-field Segment values by defining Security Rules and assigning them to responsibilities

Cross Validation Rules

Prohibit invalid combinations of Accounting Flex-field Segment values using Cross Validation Rule

Department

Account

Administration

Revenue - MBA

Period Type and Accounting Calendar

An Accounting Calendar consists of Accounting Periods associated with a Period

Type

Period types control the number of Accounting Periods per fiscal year. Period types
could be Month, Quarter, Year etc.,

Accounting Calendar
Name
Jan-99 Feb-99 Mar-99 Apr-99 May-99

Type
Month Month Month Month Month

Year
1999 1999 1999 1999 1999

Period
1 2 3 4 5

Qtr
1 1 1 2 2

From
01-Jan-99 01-Feb-99 01-Mar-99 01-Apr-99 01-May-99

To
31-Jan-99 28-Feb-99 31-Mar-99 30-Apr-99 31-May-99

Dec-99

Month

1999

12

01-Dec-99

31-Dec-99

Currency

Oracle Applications has predefined all ISO Currencies

Indian Rupee is also Predefined by Oracle Applications The Symbol for Indian Rupee is INR.

Define Set of Books

A Set of Books is a Group of Companies or Funds that share the same Accounting Flex-field Structur
Calendar and Functional Currency

01-021-011-00000-000-50146-000-000 01-011-011-00000-000-50120-000-000 01-031-011-00001-000-50136-000-000 01-041-011-00000-000-50136-000-000 01-051-011-00000-000-50146-000-000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Accounting Calendar Assign Assign

INR Functional Currency

Accounting Flexfield Structure

ISB Set Of Books

Define Set of Books

Enable
Account

Budgetary Control to implement Budgeting and Encumbrance Accounting

Allow Suspense posting to automatically post out of balance journals to a

Suspense

Implementation Flow Chart - Define Accounts

Create Set Of Books

Create Set Of Books

Define Accounts
Step 11

Define Controls

Enter Chart of Accounts

Step 12

Define Additional Inter company Accounts

Step 13

Define Additional Suspense Accounts

Step 14

Define Summary Accounts

Summary Accounts

All Assets Rollup Group

All Assets

Level 2 Rollup Group

Fixed Assets

Current Assets

Child Values

Land

Building s

Cash

Bank

Stock

Use Summary Accounts to view financial information at Summary Level Define rollup groups to capture different summary levels for each Accounting Flex-field Segment

Assign related parent values to rollup groups. Use Rollup groups when creating summary accounts

Implementation Flow Chart

Step 20

Create Set Of Books

Define Accounts

Define Controls
Step 15

Define Controls

Define Short Hand Aliases

Step 16

Define Encumbrance Types

Step21

Define Journal Entry Sources Define Journal Entry Categories Define Units of Measure

Set Up Autopost
Step 22
Step 17

Index Accounting Flexfield Segments

Step 23

Step 18

Define System Controls

Step 24

Step 19

Set Profile Options

Define Budgetary Control Groups

Account Aliases

A Shorthand alias is a simple code that represents a partial or complete Accounting Flex-field

Use Shorthand aliases to reduce flex-field entry keystrokes and maximize productivity and accur

Sample Shorthand Aliases

Alias Cash

Accounting Flex-field Structure (Co-Dep-Site-Proj-Act-Acc-Buf1-Buf2) 01-021-001-00000-000-13101-000-000

Travel
Revenue

01-011-001-00000-000-50101-000-000
01-031-001-00000-000-30201-000-000

Budgetary Control Groups

1) Do not perform budgetary control on transactions coming from the Chairmans office

Requisitions

Purchase Orders

FUNDS CHECK LEVEL None

Invoices

FUNDS CHECK LEVEL Absolute Override Amount 10000 INR

2) Perform absolute budgetary control on invoices, but allow override for certain Accounts Payable users of INR 10000

Requisitions 3) Perform advisory budgetary control for all requisitions from purchasing

Purchase Orders

FUNDS CHECK LEVEL Advisory

Encumbrance Types

1) The user department creates a requisition for new equipment

Requisition ----- ---------- -----

Post a Commitment Encumbrance Journal

2) The Purchasing Department creates a Purchase Order to order the new equipment

Purchase Order ----- ---------- -----

ISB Set Of Books

Reverse the Commitment and post an Obligation Encumbrance Journal 3) The Purchasing Department receives an invoice for the equipment Invoice ----- ----from the vendor ------ -----

Reverse the Obligation and post an Actual Payables Journal

Oracle General Ledger - Other Modules

Oracle General Ledger shares information with Oracle Financial and manufacturing sub-ledgers
Cost Management
Set Of Books JE Sources JE Categories Set Of Books Exchange Rates JE Sources JE Categories

Accounts Payable
Set Of Books Exchange Rates

Fixed Assets

Set Of Books Exchange Rates Set Of Books JE Sources JE Categories

Accounts Receivable

General Ledger
Set Of Books Exchange Rates JE Sources JE Categories

Project Accounting

Set Of Books Exchange Rates

Order Entry

Purchasing

Oracle General Ledger Accounting Cycle

Define Set of Books Open Accounting Period

Enter Manual Journal Entries

Setup Journal Import Import Journals using Journal Import

Define Recurring Journals

Create Recurring Journals

Define Mass Allocations

Create Mass Allocation Journals

Review Unposted Journals online and in Standard Accounting Reports

Correct Journal Import Error Journals Import Journals using Journal Import Correct Errors Post Journals
Reverse Journals

Define Financial Statements and Perform Online Inquiries

Journal Entries ...

Name : January Revenues Period: Jan-02

Batch

Name: Rent #1 Currency: INR Category : Rent-Land

Name: Rent #2 Currency: USD Category : Services

Name: Rent #3 Currency: CND Category : Repacking

Journal Entry

Cash 10,000 Land Revenue 10,000

Cash 10,000 Service Revenue 10,000

Cash 10,000 Repacking Revenue 10,000

Journal Lines

A Journal Batch may contain an unlimited number of Journal Entries A Journal Entry may contain an unlimited number of Journal Lines

 Journal Entries

Enter Journals

Foreign Currency?

Yes

Supply Exchange Rate

Post Journals Generate Reversal Journal Voucher Generate Reports

Review Journals
No

No

Is the Journal Entry Correct? Is the Journal Entry Correct? Yes Generate Reports

Post Journals

No Mark Journal for Reversal

When posting to earlier open periods, actual balances roll forward through the latest ever-opened period

Revaluation

Converts to USD Foreign Currency INR Functional Currency

REVALUE
Converts to USD Foreign Currency INR Functional Currency

The exchange rate difference arising out of revaluation is posted to Unrealized Gain/Loss Account

Translation

Functional Currency
INR INR INR

TRANSLATE

USD

USD

USD

Foreign Currency
Oracle General Ledger translates Balance Sheet and Income Statement Accounts as per FASB 52

Consolidation...

Subsidiary 1 Set of Books

Subsidiary 2 Set of Books

Subsidiary 3 Set of Books

CONSOLIDATE

Parent Set of Books

Oracle General Ledger enables you to consolidate one or more sets of books into another for reporting purposes

 Consolidation

Verify Subsidiary Sets of Books Verify Parent Set of Books Define Consolidation

Run Consolidation Request and Purge Consolidation Audit Details Post Consolidation Batch

Run Consolidation Reports

Recurring Journals

Create Recurring Journals for transactions that occur every Accounting Period Create three types of Journals using Recurring Journals
O Skeleton Journals Enter accounts only Do not enter a formula to create skeleton journals Each generation produces journal entries with no journal line amounts Enter journal Line amounts using Enter Journals form O Standard Journals Enter Accounts and Constant Amounts Enter a formula using constants to generate recurring standard journals Each generation produces a journal with identical Journal line amounts O Formula Journals Enter Accounts and variable amounts Enter a formula using Accounting Flexfields as arguements

Massallocation Journals

Define a single formula to allocate amounts across a group of Balancing Segment values, departm etc.,

Allocate Amounts

Total Rent Expense

Finance Dept

Admin Dept

IT Dept

Admission Dept

Document Sequencing

Assign sequential numbers to actual journal entries for increased control. Account for journal entrie by grouping them into different document sequences

Sequential Numbering Category : Numbering : Journal Creation : Initial Value : 1

1

Accruals Automatic Manual

Purchases Automatic

Adjustment Manual Manual

Automatic 28
28

N/A
4

29

30

23

Budgeting ...

A Budget consists of periods, accounts and amounts

Anatomy of a Budget

Periods

Name : ISB02PLAN
Apr-01 To Mar-02
52110 52220 ------INR 100000 INR 200000

Accounts Amounts

 Budgeting

Define budgets, assign accounts to budget organizations, and record budget amounts using different Amounts forms Use various forms to enter,

Periods
Use Define Budget form

Accounts
Use Define Budget] Organization form

calculate and transfer budget amounts

ISB02PLAN

Finance Dept IT Dept JE Finance Dept INR 100000 IT Dept INR 200000

ISB02PLAN Apr-01 to Mar-02 Finance Dept -- INR 100000 IT Dept -- INR 200000

Budgeting ...

Budget Accounting Cycle :

1

Determine Degree of Control Define Budgets Enter Budgets

Review and Correct Budgets

Freeze Budgets

Report on Budgets

Financial Statement Generator

Create Customized financial reports on account balances using the Oracle General Ledger Financial Statement Generator (FSG) Define Row Sets Define Column Sets Define Content Sets
1

Define Row Orders

Define Display Sets

Financial Statement Generator

Autocopy Report Components Define Reports Define Report Sets Autocopy Reports and Report Sets Request Reports and Report Sets

10

General Ledger Desktop Integrator

The GL Desktop integrator is a spreadsheet based tool for entering Budget amounts, entering journals, and running financial reports

GL Desktop Integrator operates within Microsoft Excel, allowing you to take full advantage of familiar Excel functionality while seamlessly integrating with Oracle General Ledger