ORACLE FINANCIAL
1. Oracle general ledger
2. Account payable
3. Account receivable
4. Fixed assets
5. Cash management
Oracle General Ledger
GENERAL LEDGER is the central repository for all accounting transactions The source ledger group defines the ledgers that you are going to report on in Daily Business (what ever daily production or transaction are recorded in a book that books Called as ledger book)
Each numerical value in the general ledger must fall into one of the following three Categories:
• Actual
• Encumbrances
• Budgets
The General Ledger module is where your chart of accounts, fiscal calendar, and currency are defined in a relationship known as a set of books. You can define more than one set of books in which this information may vary according to the needs of your enterprise.
For example, you may have a manufacturing plant in
Therefore you would set up two different sets of books for these manufacturing plants. The set of books relationship contains what is known as the three Cs: Currency,
Calendar and Chart of Accounts.
Books
Calendar
Currency
Chart of Accounts
CALENDAR: - A calendar instance defines a particular occurrence of a calendar type. A calendar instance is defined by assigning a start and an end date to a calendar type.
The start and end dates are dates most meaningful to your institution to represent the calendar periods
You can define multiple calendars and assign a different calendar to each set of books. For example, you can use a (monthly calendar) for one set of books, and a (quarterly calendar) for another
Create calendar instances. Your calendar instances describe calendars, such as 2007 and 2008. A calendar instance is the start and end date for a particular calendar
TYPE, ACCOUNTING, TRANSACTION
TYPE:-at these screen we take a decision about the calendar type and number of Periods per year along with adjustment periods
Navigation:-setup/financial/calendar/type
ACCOUNTING:-at these screen we assign the ranges of date or duration of days
To the number of periods which is define in the above step
Add accounting periods to your calendar to define the number of periods in the calendar year. You can add periods to a calendar at any time. Your calendar can contain both adjusting and non-adjusting accounting periods
A calendar for a new year should contain the period, quarter, and year, and there should be no missing days between periods.
Adjustment periods:-it is used to overlap to assign periods it can consist of Single periods or multiple periods it also enjoys all the status of normal periods accounting periods cannot overlap, except for adjusting periods. If any of your non-adjusting accounting periods overlap, General Ledger reports an error.
To create a new accounting calendar:
1. Either click the Create button or in the first blank Prefix field, enter a prefix for the accounting calendar you want to create.
2. Select a Type from the drop down list.
3. Enter a Year.
4. Enter a Quarter.
5. Enter a Number.
6. Select a From and To Date by clicking the Calendar icon. These are required fields.
7. Enter a calendar name.
Navigation:-setup/financial/calendar/accounting
TRANSACTION CALENDAR:-
It is used to define weekly workday Patten for a business it is used to define routine
In the fields provided in the Exception Type area, you can specify when you want the exception to occur. You can set an exception to happen on a given date each year, on a given date once ever, or on a regularly occurring interval (example - first Monday in January).
To set the exception to occur on a specified date each year, click the top radio button, select the month from the list of months, and select the day from the list of days.
Navigation:-setup/financial/calendar/transactions
Currency
Use the Applications window to manually apply receipts that are in one currency to one or more transactions in different currencies. For example, you can apply a USD receipt to one invoice denominated in euros (EUR) and another in Canadian dollars (CAD). You can apply receipts to invoices, debit memos, and chargeback.
You can enter values for your actual foreign currency data in one of two ways. You can specify the entered amount along with a conversion rate type and date and let your General Ledger application calculate the converted amount for you. Or, you can directly specify the entered and converted amounts and not specify the conversion rate, type and date
Once you have created a multi-currency conversion list in the Multi-Currency Conversion window you can attach it to a price list or agreement. You can select the Multi-Currency Conversion List from the Currency Conversion Criteria field in the price list or agreement.
Navigation:-setup/currency/define
Daily rates:-General Ledger uses daily rates to perform foreign currency journal conversions. You can maintain daily conversion rates between any two currencies that you have enabled in your applications instance.
Period rates:-You can maintain period-average, period-end, and revaluation exchange rates for any foreign currency you have enabled. General Ledger uses
Historical rates:-Enter historical rates or amounts for translating actual and budget account balances. You can enter rates for any foreign currency you have enabled.
Flex field
You define descriptive information and validation information for each segment. You also determine the appearance of your key flex field window, including the size of the window, the number and order of the segments, and the segment descriptions and default values.
1. Name the structure and name view: (COMBINATION OF CODES)
2. Define segment (company, department, account, branch, block, organization)
3. Define value set (modify the width, height, list of values)
4. Assign value set
5. Assign flexfields qualifier
6. Freeze the structure
Flex field qualifiers
Use this window to apply flex field qualifiers to your key flex field segments. The window title includes the current flex field and segment names.
For each qualifier, indicate whether it is enabled for your key flex field segment.
Since you can set up your key flexfields in any way you prefer, Oracle Applications products use flex field qualifiers to identify certain segments used for specific purposes. You should consult the help for your key flex field to determine whether your key flex field uses qualifiers and what purposes they serve.
Some qualifiers must be unique, and you cannot compile your flex field if you apply that qualifier to two or more segments. Other qualifiers are required, and you cannot compile your flex field until you apply that qualifier to at least one segment.
You should consult the Key Flexfields in Oracle Applications section for your key flex field to determine whether your key flex field uses qualifiers and what purposes they serve.
Account Type: Defines the account type for the (natural account segment) value. You can enter only valid account types. Natural a/c type described the account values like (expense, revenue, assets, liability, and other a/c)
Company type: - Defines the company type for the (balancing segment value). When a transaction is enter which is unbalance and unposted system set to be Death transaction is balance using suspense a/c automatically
Department type: - define the department type for the (cost center segment) Cost center is location of business which generate a revenue and expenses
Multiple types: - define the multiple types for the (intercompany segment) These segment is used to unable a transaction between two different Company of a same organization and this is optional qualifier
Posting Allowed: Indicates whether General Ledger should allow detailed posting to Accounting Flexfields with this segment value.
1. Freeze the flex field:-these is used to lock the setup so that an unauthorized User can’t modify the structure
2. cross validation:-is used to unable a relationship between value Of one segment to other segment these option is used the combination With security type and value type from value set screen
3. Freeze rollup group:- these option is used for implementing the Concept of summary template where group of a/c value’s are rollup sum/total into single a/c value
4. allow dynamic inserts:- while inserting a transaction combination of Different segment values has to be done these is allow only when this option is enable
5. Segment separator: - is used to mark the one value to another value of Segment while entering the code combination.
6. enable:- enable option is used to list these structure in the LOV while
Value: - Use the Value Set window to define your independent value sets, any dependent value sets that depend on them, and any table-validated value sets your flex field needs
set of books
A set of books determines the functional currency, account structure, and accounting calendar for each company or group of companies. If you need to report on your account balances in multiple currencies, you should set up one additional set of books for each reporting currency. Your primary set of books should use your functional currency. Each reporting set of books should use one of your reporting currencies
Attention: Before you can use a newly defined set of books, your system administrator must associate the set of books with one or more responsibilities. This is done using the profile option GL Set of Books Name. Your responsibility determines which set of books you use.
Navigation:-setup/financial/books/define
To define a set of books:
Define your period type.
Define your accounting calendar
Define or enable your functional currency.
Define your account structure
If you want to create Retained Earnings, Suspense, Translation Adjustment, and Reserve for Encumbrance accounts as you enter them for the set of books, allow dynamic insertion for your account segments.
mandatory account used in set of books
· Retained earnings
· Translation adjustment
· Suspense a/c
· Rounding of difference
· Reserve for encumbrance
Retained earning:- These a/c used at the end of year or closing of year, it is calculate from (total income)-(total expenses) amount carried to next year
Its a/c type is (ownership stock hold)
Translation adjustment:- these a/c used at the time of running a report or transaction. It takes care of unbalance amount when running a transaction report.
Its a/c type is (ownership stock hold)
Suspense a/c:- when unbalance journal is enter the shorter side is debited or credited with suspense a/c . Totals amount should be corrected and then going to a suspense account.
Its a/c type is (assets/liability)
Rounding of difference:- These a/c is used when a decimal option is enable in currency along with minimum accountable unit
Its a/c type is (ownership stock hold)
Reserve for encumbrance:- these a/c is used with the combination of budget setup reserve for encumbrance is used to reserve the amount from budget for the further to be done Exam:-reserve for purchase
Its a/c type is (ownership stock hold)
Retained Earnings Update Process and the Open Period Program: Balances for all income statement account combinations for a given pair of primary balancing and secondary tracking segment values will be closed out to a retained earnings account combination bearing the same segment values at the beginning of a new fiscal year.
User
Then go to system /administrator (responsibility/model)
The username must not contain more than one word. You should use only alphanumeric characters ('A' through 'Z', and '0' through '9') in the username.
User names and responsibilities are set up in Oracle Applications to secure access to the data and functionality within the applications.
User level attached the general ledger book is more secured and only access by individual user. When practicing will prefer to go responsibility level
Navigation:-security/define/user
Password
Enter the initial password of an application user. An application user enters this password along with her or his username to sign on to Oracle Applications.
A password must be at least five (5) characters and can be up to thirty (30) characters.
Responsibilities:- Use this window to define a responsibility. Each application user is assigned at least one responsibility. A responsibility determines if the user accesses Oracle Applications or Oracle Self-Service Web Applications, which applications functions a user can use, which reports and concurrent programs the user can run, and which data those reports and concurrent programs can access.
Note: Responsibilities cannot be deleted. To remove a responsibility from use, set the Effective Date's to field to a past date. You must restart Oracle Applications to see the effect of your change.
General ledger book attached with the responsibility assign by any user who is listing the responsibility in his access
Responsibilities Block: - An application name and a responsibility name uniquely identify a responsibility
Responsibility Name
If you have multiple responsibilities, a pop-up window includes this name after you sign on.
Profile Values Block
Set values for profile options at one or more levels. Each value overrides those set to its left. For example, a User Value setting overrides a Responsibility Value setting, which overrides an Application Value setting, which overrides a Site Value setting.
If you have a profile option value that is no longer valid, you will see an LOV for the field instead of the value.
Profile This field displays the name of a profile option.
Site
This field displays the current value, if set, for all users at the installation site.
Application
This field displays the current value, if set, for all users working under responsibilities owned by the application identified in the Find Profile Values block.
Responsibility
This field displays the current value, if set, for all users working under the responsibility identified in the Find Profile Values block.
User
This field displays the current value, if set, for the application user identified in the Find Profile Values block.
Server
This field displays the current value, if set, for the server identified in the Find Profile Values block.
Organization
This field displays the current value, if set, for the organization identified in the Find Profile Values block.
Suggestion: You should set site-level default values for any required options after installation of an application. If you do not assign a particular profile option at any of the levels, that option does not have a default value and may cause errors when you use forms, run reports, or run concurrent requests.
User name like:-Intel password:-123456
Note: - when the password is enter first time password get expired because in real time environment user is created by system administration and information pass to individual person it prompt to the enter the new password first task to be done when you log into your oracle general ledger responsibility its to open the periods so as to enter the journal
Open & close periods
Then come to general ledger (responsibility/model)
Open and close accounting periods to control journal entry and journal posting, as well as compute period- and year-end actual and budget account balances for reporting.
Accounting periods can have one of the following statuses:
Open: Journal entry and posting allowed.
Closed: Journal entry and posting not allowed until accounting period is reopened. Reporting and inquiry allowed.
Permanently Closed: Journal entry and posting not allowed. You cannot change this period status. Reporting and inquiry allowed.
Never Opened: Journal entry and posting are not allowed. General Ledger assigns this status to any period preceding the first period ever opened in your calendar, or to any period that has been defined, but is not yet future-enterable. You cannot change this period status.
Future-Entry: Journal entry is allowed, but posting is not. Your period is not yet open, but falls within the range of future-enterable periods you designated in the Set of Books window. You cannot change this period status without using the concurrent process to open the period
Journal entries
You can organize journal entries with common attributes into batches. For example, you might group your journal entries by type or date. You can have multiple journals in one batch, or you can have a separate batch for each journal entry.
In the Journals window, enter a unique Journal name for the entry. If you do not enter a journal name, General Ledger automatically assigns a name using the following format: Source Journal ID Date.
If you did not enter a batch name before entering journals, General Ledger uses the name of the first journal in the batch to create a default batch
Name.
To enter a journal without entering batch information, choose New Journal from the Find Journals window and proceed
Navigate to the Enter Journals window
Enter an Account for the journal line.
Enter the Debit or Credit amount for the designated account
Note: If needed, you can enter debits and credits as negative amounts.
Posting Journal
Post journal batches to update the account balances of your detail and summary accounts. You can post actual, budget, or encumbrance journal batches.
Suggestion: Run a Trial Balance Report whenever you post to a previous fiscal year to ensure that your Retained Earnings account is properly reconciled.
Note: You must define appropriate daily rates for your reporting currencies before you post journals in your primary set of books.
Translating
You can translate your actual and budget account balances from your functional currency to another currency. If average balance processing is enabled, you can translate both average and standard balances.
Run translation after you have completed all journal activity for an accounting period.
Note: When you first translate a balancing segment value, you establish the initial translation period. You cannot translate a period before the initial translation period for that balancing segment.
Suggestion: Translation is a reporting tolls used translate the balances of a/c from functional currency to foreign currency.
Translation can’t be run in first open periods when translation is run for a period the next periods should be open. Translation is run for assets, liability and revenue, expense etc.
Revaluing
Revaluation is reporting tools used to convert foreign (USD) currency to functional currency (
Use the Revaluation window to define, run, update, and delete revaluations for foreign currency-denominated balances. Revaluation launches a process that revalues the functional currency equivalent balances for the accounts and currencies you select, using the appropriate current market rate for each currency. Resulting gain or loss amounts are posted to the gain/loss or cumulative translation adjustment accounts you specify and balanced by balancing segment values. This process creates a revaluation batch containing separate journal entries for each revalued foreign currency.
Define accounts for unrealized gains and unrealized losses. You can use the same account for both.
Define a revaluation rate for each currency for each period or date for which you want to run revaluation.
For MRC installations, define a Cumulative Translation Adjustment account for your set of books.
All Currencies: all balances for which the appropriate conversion rates are defined will be revalued.
Single Currency: only balances for the specified currency will be translated. You must choose a currency from the List of Values in the Currency field.
Period Rates: Revaluation will use period-end rates to revalue all balances.
Daily Rates: Revaluation will use daily rates of the specified Type to revalue balances. You must choose a type from the Type field.
Type: Revaluation will use this type when you select Daily Rates. The List of Values includes all defined conversion rate types other than User and EMU Fixed.
Consolidation
Every company must complete common consolidation steps in order to consolidate financial results.
Define a consolidation mapping for each subsidiary set of books you want to consolidate to your parent.
Enter and post journals to your subsidiary set of books during the normal course of business.
If the subsidiary and parent sets of books have different functional currencies, translate the subsidiary set of book's balances into the parent set of book's functional currency.
Note: If your subsidiary set of books has summary accounts defined that are used in the consolidation mapping, you should not transfer account ranges. The summary accounts will not be consolidated.
SEGMENT RULE ACTION
Segment rules is used to transfer the date from parent to subsidiary when segment are similar along with values
Copy Value From: Copy all values in your subsidiary segment to the same values in your parent segment. The segments do not have to use the same value set, but must use the same segment values.
Assign Single Value: Assign one specific value that will be used for the parent segment. You must enter the value that the parent chart of accounts will use.
Use Rollup Rules From: Map values from your subsidiary segments to your parent segments using the rule specified in the Rollup Rules region.
NOT ASSIGNED: There is no segment to assign on the other side.
Once you have transferred your subsidiary data to your parent set of books, you need to combine the subsidiary and parent data. This involves several steps:
- Run Journal Import if you did not choose it as one of your consolidation run options.
- Review the unposted journal batch created by the transfer and subsequent Journal Import.
- Post your consolidation journal in your parent set of books.
Defining Budgets
Budget is used to allocate the funds for expenditure our the year budget is also estimate of revenue to be generate for a year which is known as income budget
Budget are used to regulate the expenditure and income target to be meet with in the periods so as to enable an organization to grow in the Wright manner. Budget can be allocated in a single period or multiple periods. Budget allocated for a periods if not utilized completely. The balance is carried forward to next periods reserving the amount from expenditure amount is known as reserve for encumbrance.
Reserve for encumbrance is used for reserve the amount for regular purchases for which payment is suppose to be done.
Simple budget setup
A budget is create to represent a collection of estimated amounts for a range of accounting periods
Open: The budget is available for update and budget entry.
Current: The budget is open, and it is the default budget when you use most budgeting and inquiry forms. You can have only one Current budget at a time for each set of books.
Frozen: The budget is unavailable for update or budget entry.
You can enter and update budget amounts only for open budget years. Once you open a new fiscal year for your budget, it remains open. For best performance, do not open a budget year until you are ready to use it.
Summary template
General Ledger uses summary templates to create summary accounts, whose balances are the sums of multiple detail accounts. Use summary accounts to perform online summary inquiries, as well as to speed the processing of financial reports, Mass Allocations, and recurring journal formulas
To enter a summary account template:
- From the Summary Accounts window, enter the summary account Template using one of the following values for each segment:
D: Your template creates and maintains a summary account for every detail segment value. This value creates the most summary accounts of any template value.
Note: General Ledger will not allow you to define a summary account template using only D template values.
T: Your template creates and maintains a summary account that sums balances of all detail segment values. This value creates the fewest summary accounts of any template value.
If you enter T for a segment, all summary accounts created by the template will have the value T for the segment. Therefore, the value T must be defined and enabled for the segment. Also, the segment value must be a parent and detail posting and budgeting are not allowed.
Note: Do not define a summary account template using only T template values. A template using T values for every segment will have a zero balance if your general ledger is in balance.
Multiple Reporting Currencies Overview
Use Multiple Reporting Currencies (MRC) to maintain your transactions and account balances in multiple currencies. For example, you can maintain a primary set of books in CAD (Canadian Dollars) and have General Ledger automatically maintain reporting sets of books in USD (U.S. Dollars), GBP (British Pound), and the Euro -- the single currency of the European Monetary Union (EMU).
If you need to report on your account balances or at the transactions level in multiple currencies, define a primary set of books using your functional currency and additional sets of books using your reporting currencies.
Define a set of books, as noted above.
Select one of the three options:
Primary Set of Books: Choose this option if you are defining a primary set of books.
Reporting Set of Books: Choose this option if you are defining a reporting set of books.
Not Applicable: Choose this option if you are not using Multiple Reporting Currencies.
General Ledger Activities and Processes
Once you have set up MRC, many of the standard General Ledger activities will require new steps or additional information. These include:
Opening Periods -- You must open/close accounting periods in your primary set of books and in each of your reporting sets of books. See: Opening and Closing Accounting Periods
Defining Daily Rates -- Daily rates are used to convert your primary set of books' journals to the appropriate reporting currencies. If you do not currently maintain daily rates, you must do so if you want to use MRC. Your daily rates must be defined before you post journals in your primary set of books. See: Entering Daily Rates
Posting Journals -- General Ledger automatically generates unposted converted journal batches in your reporting sets of books when you post the original journals in your primary set of books. These unposted journal batches must be posted to update the related account balances. See: Posting Journal Batches
Reversing Journals -- When you reverse a journal entry in your primary set of books, General Ledger will also reverse the corresponding entry in your reporting sets of books. See: Defining Reverse Journal Entries
Importing Journals -- When you import journals from non-Oracle feeder systems, General Ledger creates converted journals in your reporting sets of books when you post the imported journal batch in your primary set of books. See: Importing Journals
Subledger Posting to General Ledger -- If you use Oracle feeder systems, you must run the subledger application's post to General Ledger process in both your primary and reporting sets of books. See the various Oracle subledger user's guides for more information. Also see:
Entering Budgets -- Budget amounts are not converted automatically to your reporting currencies. If you need your budget amounts in a reporting set of books, you must enter them separately. See: Overview of Budgeting
Entering Encumbrances -- General Ledger automatically creates converted encumbrance entries in your reporting sets of books when you create the associated encumbrance entry in your primary set of books. See: Entering Encumbrances
Translation -- If you use MRC, you may not need to
translate your account balances to achieve your desired reporting results. See: Notes on Using Translation with Multiple Reporting Currencies. See also the profile option GL/MRC Revaluation: Use Primary Currency instead of Entered Currency in General Ledger Profile Options
Revaluation -- If you use MRC, make adjustments in your reporting set of books according to the table at Understanding MRC. See: Notes on Using Translation with Multiple Reporting Currencies.
Remeasurement -- If you use MRC, make adjustments in your reporting set of books according to to the table at Understanding MRC.
Consolidation -- You may be able to consolidate directly from a subsidiary's reporting set of books to your parent set of books. See: Preparing Subsidiary Data
Financial Statement Generator
Financial statement is used to generate income and expenditure statement, profit&loss, balance sheet, fund flow statement etc, for a periods or also a multiple periods (fsg) also have seen generating comparative statement like account balances using:PTD-actual, PTD-budget, PTD-variance, PTD-year
Note: If you have average balance processing enabled in your set of books, you can report on functional, foreign-entered, or translated average balances.
Row set: - A Row Set defines the format and content of the rows in an FSG report. In FSG, the commonly assumed attribute for a row definition is an account assignment, whereas the attribute for a column definition is a time period (amount type).
Column set: - A column set defines the format and content of the columns in an FSG report. In FSG, the commonly assumed attribute for a column definition is a time period (amount type), whereas the attribute for a row definition is an account assignment. Therefore, typical column sets include headings and subheadings, amount types, format masks, currency assignments, and calculation columns for totals.
Report set:-Use financial report sets to group FSG reports that you run together frequently. You can only assign predefined reports to a report set.
Running financial report:-To generate FSG reports you must request that FSG run them. You can request an individual report, all or part of a report set, or several report sets. If you request an individual report, you can either run a predefined report or request that FSG run an ad hoc report. For ad hoc reports, you select report objects and other report parameters during the report submission process.
Row orders :-to modify the order of detail rows in a report. Rank rows in ascending or descending order based on the amount in a particular column and/or by sorting segments by description or value.
