Oracle Interview Questions in R12.docx

GENERAL LEDGER INTERVIEW QUESTIONS IN R12 Posted by Raju ERP 1) Can a flexfield qualifier be changed after it has been created? Ans) No. Once a segment qualifier has been designated for a specific segment and has been saved, it will permanently have the attributes with that qualifier. For example, you accidentally designate the cost center segment as the natural account segment. Even though you do not compile this, the system saves the changes. And once it has been saved, it will have all the attributes designated for the natural account qualifier, even after it has been changed back, resaved with the correct qualifier and compiled. This is the inherent functionality of the software. Unfortunately, there is no real easy solution for this issue. The only option is to create a new chart of accounts and attach a new set of books. 2) How to delete a segment value? Ans) There is no supported way to delete a segment value. Segment values can only be disabled not deleted. 3) Is there a way to load values for a specific segment outside of the form? Ans) iSetup is the Oracle product that provides supported APIs to load values into Oracle Applications flexfields. To load code combinations ADI may be used. Uploading zero amount journals will create new code combinations. In this case Dynamic Insertion should be enabled and all account segment values need to exist before the new account code combinations will be dynamically created.

4) What are the different types of Journals in General Ledger ? Ans) 1. Functional Currency Jv: This Journal, we enter Local Currency transaction purpose.

2. Foreign Currency Jv: this Journal, we enter other than local currency transaction purpose...before we define exchange rates 3.Suspense Jv: this Journal, whenever debit is not equal to credit that time, we enable in set of books window Suspense button, then it works otherwise it's not working 4.Tax Jv: this Journal, calculate taxation of Purchased items 5.Reverse Jv: this Journal whenever we enter recurring journal, at the time of we using..We have two methods...one is Debit to Credit and second one is sign (+ to -) 6.Recurring Jv :this one is We define one template, we use Periodically, these are 3 types 1.Standard 2.Skeleton 3.Formula 7.Mass Allocation Jv :Set of Expenses or Set of Revenue allocate different parts using Formula A*B/C A is Total Cost Pool..B is Usage Factor...C is Total Usage Factor... 8. Batch JV: Group of Journal we enter at a time, We Define Control Amount 9. Stat JV: This JV we have one side of Amount either debit or Credit..... 5) What is average Balance In Oracle Financials?

Ans) The Average Balance feature of Oracle General Ledger provides organizations with the ability to track average and end-of-day balances, report average balance sheets, and create custom reports using both standard and average balances. Average balance processing is particularly important for financial institutions, since average balance sheets are required, in addition to standard balance sheets, by many regulatory agencies. Many organizations also use average balances for internal management reporting and Profitability analysis. The difference between an average and standard balance sheet is that balances are expressed as average amounts rather Than actual period-end amounts. An average balance is computed as the sum of the actual daily closing balance for a balance sheet account, divided by the number of calendar Days in the reporting period .

6) Is there a limit to the number of periods in a budget year or how many years a budget can span? Ans) One can define budgetary control for n number of years however, one year can have maximum of 60 fiscal periods7) 7) What is a funding budget?

Ans) A budget against which accounting transactions are checked for available funds when budgetary control is enable for your set of books.

8) What is planning budget Ans) The plan for the future expenses is planning budget. It is a paper work. There is no funds requirement. It does not require journals. There are no restrictions for estimating of funds. 9) I was able to post a budget journal to a closed period, why? Ans) Yes you can do so, reason being budget journal is not linked with your accounting period. Once you have open the budget period then you can book budget journal for that whole period. 10) What is the specific purpose of assigning Balancing Segment Values to the Legal Entity in Accounting Manager Setup (as once assigned, the same value is not allowed to be selected for any other Legal Entity), if this value is usable for the Operating Unit(s) that does not have this Legal Entity Context? Ans) Summary of key facts: 1. Common COA Structure used for Primary and Secondary Ledgers 2. Ledger shared by Multiple Legal Entities 3. Specific Balancing Segment Values assigned to Specific Legal Entity (Overlap not allowed) 4. Specific Legal Entity Vision Operations Assigned to Payables Manager OU for Legal Entity Context 5. User preference set to Access Vision Operations OU by Default in Payables Conclusion and Findings: 1. Balancing Segment Value Assignment to the Multiple Legal Entities, sharing the same Ledger does not seem to restrict the user of these Balancing Segment Values in the Feeder, Operating Unit specific Modules Like AP, wherein Legal Entity Context is passed to the OU through the link of the Primary Ledger. 2. However, access to these Balancing Segment Values could be controlled through Security Rules being assigned to the Value Set and the Respective Responsibility 3. The Key question is: If Legal Entity having the context to the Operating Unit that shares the common Ledger does not have assignment to it, what impact it has on the integrity of data when this access is otherwise allowed, except through Security Rules?

11) What are the interface tables in General Ledger ? Ans) GL_BUDGET_INTERFACE  GL_DAILY_RATES_INTERFACE  GL_IEA_INTERFACE  GL_INTERFACE  GL_INTERFACE_CONTROL  GL_INTERFACE_HISTORY  12) What is DFF. Question: What does DFF mean? Answer: DFF is a mechanism that lets us create new fields in screens that are delivered by Oracle.

Question: Oh good, but can these new fields be added without modifying/customization of the screen?. Answer: Yes, certainly. Only some setup is needed, but no programmatic change is needed to setup DFF. Question: Why the word Descriptive in Name DFF? Answer: I think Oracle used this terminology because by means of setup...you are describing the structure of these new fields. Or may be Oracle simply used a silly word to distinguish DFF from KFF(discussed in latter training lesson). Question: Are these DFF's flexible? Answer: A little flexible, for example, depending upon the value in a field, we can make either Field1 or Field2 to appear in DFF. Question: So we create new fields in existing screen, but why the need of doing so? Answer: Oracle delivers a standard set of fields for each screen, but different customers have different needs, hence Oracle lets us create new fields to the screen. Question: Are these new fields that get created as a result of DFF free text? I mean, can end user enter any junk into the new fields that are added via DFF? Answer: If you attach a value set to the field(at time of setup of dff), then field will no longer be free text. The entered value in the field will be validated, also a list of valid values will be provided in LOV. Question : Will the values that get entered by the user in dff fields be updated to database? Answer: Indeed, this happens because for each field that you create using DFF will be mapped to a column in Oracle Applications. Question: Can I create a DFF on any database column? Answer: Not really. Oracle delivers a predefined list of columns for each table that are meant for DFF usage. Only those columns can be mapped to DFF segments. These columns are named similar to ATTRIBUTE1, ATTRIBUTE2, ATTRIBUTE3 ETC. Usually Oracle provides upto 15 columns, but this number can vary. Question: Can I add hundreds of fields to a given screen? Answer: This depends on the number of attribute columns in the table that screen uses. Also, those columns must be flagged as DFF enabled in DFF Registration screen. Don't need to worry much about this because all the ATTRIBUTE columns are by default flagged for their DFF usage. Question: Hmmm, I can see that DFFs are related to table and columns... Answer: Yes correct. Each DFF is mapped to one table. And also each segment(or call it field) is mapped to one of the attribute columns in that table. Question: I want these fields to appear in screen only when certain conditions are met. Is it possible? Answer: Yes, we have something known as Context Sensitive Descriptive Flexfields. In Order to do this, we will follow the below steps(screenshots will follow) :1. Navigate to the DFF Registration screen in Oracle Apps and query on Table AP_BANK_BRANCES. Now click on Reference Field 2. Navigate to DFF Segments screen and query on the Title of the “Bank Branch” and Unfreeze the Flexfield and add segments as to Section "GLOBAL Data Elements" as shown in screenshots.

13) What is Journal Import? Ans) Journal import is an interface used to bring journal entries from legacy systems and other modules into the General Ledger.(Specifically Journal Import gets entries from legacy data into the GL base tables. The tables populated during journal Import are GL_JE_BATCHES, GL_JE_HEADERS, GL_JE_LINES, GL_IMPORT_REFERENCES

14) What is the use of GL_Interface? Ans) Gl_Interface is the primary interface table of General ledger. It acts as an interface between data originating from other modules such as AP,AR, Legacy data and the Gl Base tables. 15) What is Actual Flag? Ans) Actual flag represents the Journal type. A-Actual B-Budget E- Encumbrance. 16) What is Encumbrance? Ans) It is a process of Reservation of funds for anticipated expenditure from a budget. Encumbrance integrates GL, Purchasing and Payables modules. 17) How many Key Flex Fields are there in General Ledger? Ans) One. Accounting Key Flex Field. 18) How many types of Budgets are there? Ans) Two Types.

Expenditure Budgets Revenue Budgets. 19)What are Spot Rate, Corporate Rate, Transaction Calendar and Accounting Calendar? Ans) Spot Rate: An exchange rate which you enter to perform conversion based on the rate on a specific date. It applies to the immediate delivery of currency. Corporate Rate: An Exchange rate that we define to standardize rates for our company. This rate is the standard market rate determined by the senior financial management for use through out the organization. User Rate: Conversion rate that is defined by the user. EMU Fixed Rate: An exchange rate that is provided automatically by the General Ledger while entering journals. It uses a foreign currency that has a fixed relationship with the euro. Transaction Calendar: Defines the business days and holidays for any calendar. Accounting Calendar: Defines different types of calendars namely Fiscal, Federal Fiscal, Month etc. 20)What is Security Rule? Ans) Security Rules are defined to control the access of a flexfield segment value (Financial information) at a responsibility level. 21) What are Cross Validation & ADI? Ans) CVS – Cross validate segments – Allows only valid code combinations. ADI – Allow dynamic inserts. – Allows any code combination irrespective of validity. ADI would prevail if both of CVS and ADI are checked. 22)What is Translation? Ans) Translation is a process used to convert functional currency to other reporting currencies at the account balances level. 23)What is Revaluation?

Ans) It is process used to revalue assets and liabilities denominated in foreign currency into functional currency based on period end exchange rate we specify. Unrealized gains/losses are resulted because of exchange rate fluctuations which are recorded in unrealized gain/loss account in GL. 24)What is FSG (Financial Statement Generator)? Ans) Financial statement generator feature helps us to generate reports such as balance sheets and income statements with out programming. It also provides a high degree of control on the rows, columns, contents and calculations on the report. Different components such as row set, column set, content set, row order, display set have to be defined before a statement is generated, of which row set and column set are mandatory. 25) What is Consolidation? Ans) Consolidation is a period-end process of combining the financial results of separate business subsidiaries with the parent company to form a single combined statement of financial results. 26) At what level General Ledger data is secured? Ans) GL data is secured at Set of Book level. Subledger module data is secured at Responsibility level (i.e., at Operating Unit Level). 27) Difference between Primary Ledger and Secondary Ledger in R12 ? Ans) Primary ledger: The primary ledger acts as the primary accounting representation Secondary Leger: Secondary ledgers represent the primary ledger's accounting data in another accounting representation that differs in one or more of the following ways:  chart of accounts 

accounting calendar/period type combination



currency



subledger accounting method



ledger processing options

Use secondary ledgers for supplementary purposes, such as consolidation, statutory reporting, or adjustments for one or more legal entities within the same accounting setup. For example, use a primary ledger for corporate accounting purposes that uses the corporate chart of accounts and subledger accounting method, and use a secondary ledger for statutory reporting purposes that uses the statutory chart of accounts and subledger accounting method. This allows you to maintain both a corporate and statutory representation of the same legal entity's transactions in parallel. Assign one or more secondary ledgers to each primary ledger for an accounting setup. The secondary ledgers assigned can only perform the accounting for the legal entities within the same accounting setup.

ACCOUNTS PAYABLE INTERVIEW QUESTIONS IN R12 Posted by Raju ERP

1.Explain about Accounts Payable. Ans)The Accounts Payable application component records and manages accounting data for all vendors. It is also an integral part of the purchasing system: Deliveries and invoices are managed according to vendors. The system automatically triggers postings in response to the operative transactions. In the same way, the system supplies the Cash Management application component with figures from invoices in order to optimize liquidity planning.

2.What is the meaning of invoice? Ans)An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms. In the rental industry, an invoice must include a specific reference to the duration of the time being billed, so rather than quantity, price and discount the invoicing amount is based on quantity, price, discount and duration. Generally speaking each line of a rental invoice will refer to the actual hours, days, weeks, months etc being billed.

3) Can you give a sample Process Flow for Procure to Pay Cycle? Ans) Process flow for Procure to pay will go through two departments (Commercial & Finance) Procure - Commercial Department The following steps invovle to prcure any item 1. Received Requsition from concern Department 2. Request for Quotation from Suppliers at least three 3. Finalize the best Quotation by keeping in mind about our companies standard 4. Check the Budget for the same 5. Negociate with supplier for more economic pricing and finalize the payment terms 6. Process the PO and forward to the supplier to supply the goods and services Pay Cycle - Finance Department

The following steps need to be fulfil 1. Invoice should be match with PO 2. Invoice should has all the supporting documents such as PO copy,Delivery note duly signed by reciever (our staff who authorized to received goods / store keeper) 3. If the invoice is for services then it should be forwarded to the concern department head or project manager for his confirmation of work done and his approval 4. Even if it not the services invoice, it should forwarded to the concern person's approval who request the PO for the same 5. Finance can reject the invoice if it is not budgeted and ask for the reasons. 6. After receiving all the confirmation and approvals from the concern department heads the invoice will be update in to the accounting system first in order to avoid any duplication of Invoice and PO (it shown on accounting package if the invoice is duplicate if not, altelast it tells you if the PO already used or cancel) 7. Finance approved the invoice and process the payment base on payment terms with the supplier.

4)What are the journals entries in Procure to Pay Cycle. Ans)

Description

A) Po creation Entry

DR

CR

No Entry

No

B) While Receiving the goods Accurval

Material Receiving

Ap

C) While Inspection Entry

No Entry

No

D) While Trans ford the good to Inventory Receiving

Inv Org Material

Material

Purchase price Varience

F) While Po Is Matching to Invoices

Ap Accurval

Liability

G) While Making the Payment Clearing

H) Ofter Reconciliation

I) Final Entry

Liability

Cash

Cash Clearing

Cash

Inv Org Material

Cash

5)What is the difference between EFT & Wire? Ans)EFT and WIRE are the most popular form of electronic payment method. EFT stands for electronic fund transfer and it is one of the fastest mode of electronic payment after WIRE. EFT is a batch oriented mechanism for transfering funds from one bank to another because of which clearing & settlement takes around 2 to 4 days. On the other hand, WIRE is a RTGS i.e. real time gross settlement system of making the fund transfer on real time and gross basis. Clearing and settlement happens on the same day. WIRE is more expensive and faster than EFT.

6) What is meant by Distribution Sets: Ans)You can use a Distribution Set to automatically enter distributions for an invoice when you are not matching it to a purchase order. For example, you can create for an advertising supplier a Distribution Set that allocates advertising expense on an invoice to four advertising departments. You can assign a default Distribution Set to a supplier site so Payables will use it for every invoice you enter for that supplier site. If you do not assign a default Distribution Set to a supplier site, you can always assign a Distribution Set to an invoice when you enter it. Use Full Distribution Sets to create distributions with set percentage amounts, or use Skeleton Distribution Sets to create distributions with no set distribution amounts. For example, a Full Distribution Set for a rent invoice assigns 70% of the invoice amount to the Sales facility expense account and 30% to the Administration facility expense account. A Skeleton Distribution Set for the same invoice would create one distribution for the Sales facility expense account and one distribution for the Administration facility expense account, leaving the amounts zero. You could then enter amounts during invoice entry depending on variables such as that month's headcount for each group.

7)What is the meaning of GRN? Ans) GOODS RECEIPT NOTE MEANS IT PROVES THAT MATERIAL IS DELIVERED AT STORES DEPARTMENT. GRN IS THE BASE DOCUMENT AND IMPORTANT DOCUMENTS FOR PROOF OF RECEIPT OF MATERIAL AT WARE HOUSE.THIS CAN BE PREPARED BY STORES DEPARTMENT AND APPROVED BY PLANT HEAD. GRN CONTAINS ORDERED QTY,RECEIVED QTY AND ACCEPTED QTY. BILL WILL BE PASSED BASED THE GRN NOTE. ONCE THE GRN IS PREPARED AUTOMATICALLY INVENTORY WILL BE UPDATED AND ACCORDINGLY PAYMENT WILL BE RELEASED TO THE VENDOR. GRN contains the following details. 1.Ordered quantity . 2.Received Quantity. 3.Defective quantity in received quantity . 4.Quality standards details. 8) How does the payment mechanism work? Ans) The open items of an account can only be cleared once you post an identical offsetting amount to the account. In other words, the balance of the items assigned to each other must equal zero.During clearing, the system enters a clearing document number and the clearing date in these items. In this way, invoices in a vendor account are indicated as paid, and items in a bank clearing account are indicated as cleared. You generally use the payment program to clear invoices. Manual clearing of open items is therefore not usually necessary. However, you will sometimes have to clear items manually if, for example, you receive a refund from your vendor or you have set up a direct debit procedure.

9) Difference between interface tables and base tables? Ans) The difference between the interface and base tables is as below Interface table: is the table where the data gets validated before data get posted to the base tables. There are many interfaces which are seeded with Oracle. You can consider as the entry point of the data, and the interface checks the sanity of data. Base tables: As told earlier once the data is validated will get updated in the base tables, and is

considered as the data which is in the base table is accurate and used in many ways. (Reporting..etc..)

The base tables in AP are as follows: 1) ap_invoices_all 2) ap_invoice_payments_all 3) ap_invoice_distibutions_All 4) ap_payment_schdules 5) ap_payment_dustributions_all 6) ap_checks_all 7) ap_accounting_events_all  8) ap_bank_accounts_all 9) ap_bank_accounts_uses_all    10) What is the process of creating an Invoices and transferring it to GL? Ans)  1. create batch 2. create invoice 3. create distribution 4. validate the invoice 5. actions ­à approve 6. if individual create accounting click ok 7. If batch go to batch create accounting. 8. Create accounting hits Payable Accounting(Transfer) ??Program which will create accounting. 9. Run Transfer to GL Concurrent Program 10. Journal Import

11. Post journals 12. Hits balances. 11) How do u Transfer from AP to GL?  Ans)“Payables transfer to GL program” is used to transfer from AP to GL.

12) How many types of invoices are there in AP. Ans)  1. Standarad invoice  2. Debit Memo 3. Credit Memo 4. Mixed Invoice 5. Retain age Invoice 6. Transportation invoice 7. Prepayment invoice 8. Expenses Report Invoice 9. Payment Request Invoice 10. Po default 13) How many types of purchase order types/agreements are there?   A) Standard Purchase Order: You generally create standard purchase orders for one­time purchase of various items.  You create standard purchase orders when you know the details of the goods or services you require, estimated costs,  quantities, delivery schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may  be encumbered since the required information is known B) Planned PO : A planned purchase order is a long­term agreement committing to buy it items or services from a single source. You must specify tentative delivery schedules and all details for goods or services  that you want to buy, including charge account, quantities and estimated cost. EX: Buying goods for Christmas from a specific dealer. C) Contract PO : You create contract purchase agreement with your supplier to agree on specific terms and conditions  without indicating the goods and services that you will be purchasing i.e. for $ amount you must supply this much  quantity. You can later issue standard PO referencing your contracts and you can encumber these purchase orders if you 

use encumbrance accounting. D) Blanket PO : You create blanket purchase agreements when you know the detail of goods or services you plan to buy  from a specific supplier in a period , but you do not yet know the detail of your delivery schedules. You can use blanket  purchase agreements to specify negotiated prices for your items before actually purchasing them. A Blanket Purchase Agreement is a sort of contract between the you and ur supplier about the price at which you will  purchase the items from the supplier in future. Here you enter the price of the item not the quantity of the items. When  you create the release you enter the quantity of the items. The price is not updatable in the release. The quantity * price  makes the Released Amount. Now suppose your contract with your supplier is such that you can only purchase the items  worth a fixed amount against the contract.

14.Payment Method:

A funds disbursement payment method is a medium by which the first party payer, or deploying company, makes a payment to a third party payee, such as a supplier. You can use a payment method to pay one or more suppliers. Oracle Payments supports several payment methods for funds disbursement, including the following: 

Check



Electronic



wire



Clearing

Check: You can pay with a manual payment, a Quick payment, or in a payment batch.

Electornic: Electronic An electronic funds transfer to the bank of a supplier.You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file during payment batch creation. If you are using the eCommerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is

formatted and delivered to your ap.out directory for delivery to your bank. Wire: Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of a suplier.A payment method where you pay invoices outside of Payables by notifying your bank that you want to debit your account and credit your supplier’s account with appropriate funds. You provide your bank with your supplier’s bank information, and your bank sends you confirmation of your transaction. Your supplier’s bank sends your supplier confirmation of the payment. You then record the transaction manually. Clearing: Clearing Payment for invoices transferred from another entity within the company without creating a payment document.Payment method you use to account for intercompany expenses when you do not actually disburse funds through banks. You do not generate a payment document with the Clearing payment method. When you enter the invoice, you enter Clearing for the payment method.You can record a Clearing payment using a Manual type payment only. 15.What id recurring invoices? What are AP setup steps? Ans) some times suppliers would not be sending any invoices. but still the payment have to made to home: rent, lease rentals. in this situation we have to create invoice every period wise. For that purpose we have to create one recurringinvoice template. Template means with one master copy creating the multiple invoices is called template. Here we are creating the one invoice master copy is formally known as recurring invoice or recurring invoice template. SET UP: 1)we have to create one special calendar 2)we have to create one full distribution set 3)we have to enter payment terms in the recurring invoice window 4)enter the template no, first invoice amount, special invoice amounts

RECEIVABLES SETUPS IN R12 Posted by Raju ERP

Receivables overview:

Accounts receivable is an asset account in the general ledger that documents money owed to a business by customers who have purchases goods or services on credit. Accounts receivable can be contrasted with accounts payable, a liability account in the GL that documents money the business owes for the purchase of goods or services. Accounts receivable, accounts payable and payroll are usually listed as the top three missioncritical business processes in a disaster recovery plan .

Receivables Workbenches: Oracle Receivables provides four integrated workbenches that you can use to perform most of your day–to–day Accounts Receivable operations. You can use the Receipts Workbench to perform most of your receipt–related tasks and the Transactions Workbench to process your invoices, debit memos, credit memos, on–account credits, chargebacks, and adjustments. The Collections Workbench lets you review customer accounts and perform collection activities such as recording customer calls and printing dunning letters. The Bills Receivable Workbench lets you create, update, remit, and manage your bills receivable. Each workbench lets you find critical information in a flexible way, see the results in your defined format, and selectively take appropriate action. For example, in the Transactions Workbench, you can query transactions based on the bill–to or ship–to customer, currency, transaction number, or General Ledger date. You can then review financial, application, and installment information, perform adjustments, create a credit memo, or complete the transaction. All of the windows you need are accessible from just one window, so you can query a transaction once, then perform several operations without having to find it again.

Receivables Setups in R12: Overview of Setting Up: During setup, you define business fundamentals such as the activities you process and their accounting distributions, your accounting structure, and various control features. Setup is also

the time to define comprehensive defaults that Receivables uses to make data entry more efficient and accurate. In addition, setup lets you customize Receivables to employ the policies and procedures that you use in your business. You can set up Receivables a number of different ways. The following graphic shows the most complete setup scenario. If you use the Oracle Applications Multiple Organization Support feature to use multiple sets of books for one Receivables installation, please refer to the Multiple Organizations in Oracle Applications manual before proceeding. If you plan to use Oracle Cash Management with Oracle Receivables, additional setup steps are required. Note: If you plan to use Multiple Reporting Currencies (MRC) with Receivables, additional setup steps are required. For more information, refer to the Multiple Reporting Currencies in Oracle Applications manual. Related Product Setup Steps: The following steps may need to be performed to implement Oracle Receivables. These steps are discussed in detail in the Setting Up sections of other Oracle product user guides. Set Up Underlying Oracle Applications Technology The Implementation Wizard guides you through the entire Oracle Applications setup, including system administration. However, if you do not use the Wizard, you need to complete several other setup steps, including: • performing system–wide setup tasks such as configuring concurrent managers and printers • managing data security, which includes setting up responsibilities to allow access to a specific set of business data and complete a specific set of transactions, and assigning individual users to one or more of these responsibilities. • setting up Oracle Workflow General Ledger Setup Steps: The following table lists steps and a reference to their location within the Applications Implementation Wizard (AIW). 

Define Chart of Accounts



Define Currencies



Define Calendars



Define Calendar Period Types



Define Ledger



Assign Ledger to a Responsibility

Define Chart of Accounts: Define Segments: Navigation: General Ledger --> Setups --> Flexfields --> Key --> Segments. Query With Accounting Flexfield and click on New. Give your coa name and save.

Click on Segments. Enter your segments names.

and save your work.

Assign Flexfield Qualifiers to Company and Accounting segments.

Select Company segment and then Click on Flexfield Qualifiers.

Select Balancing segment qualifiers and save.

Select Accounting segment and then click on flexfield qualifiers.

Select Natural Account Segment and save.

Define Value sets:

Click on Value set.

Enter the value set Name and Size.

Save your work.

Like wise define value set for all reaming segments.

Assign Value sets to respective segments.

Save your Work.

Select Allow Dynamic inserts and Freeze Flexfield Defination and then click on Compile.

Wait untill the following program are successfully completed.

Define Values:

Navigation: General Ledger --> Setups --> Flexfields --> Key -->Values. Enter the below information and click on find button.

Enter the company values names and save your work.

Like wish define values for all reaming segments.

Define Currencies: Navigation: General Ledger --> Setup --> Currencies --> Define. Enter information and save.

Define Calendar Period Types:

Navigation: Setup --> Financials --> Calendars --> Types. Enter the information and save.

Define Calendar: Navigation: Setup --> Financials --> Calendars --> Accounting.

Save. Define Ledger :

See My Blog how to define Ledger in R12.

Assign Ledger to a Responsibility:

Navigation: System Administrator --> Profile --> Systems.

Click on find. Assign Ledger to GL Responsibility.

Save.

Oracle Inventory Setup Steps: 

Define Operating Unit.



Define Inventory Organizations



Define Items

Define Operating Unit:

See my blog how to define Operating unit in R12.

Define Inventory Organization:

Navigation: Inventory --> Setup --> Organizations --> Organizations. Click on New.

Enter information in the required fields.

Save your work and click on othres. click on Accounting information.

Enter the required information and save.

Click on Others and select the inventory information.

Under Inventory Parameters tab enter the following information.

Under Costing Information tab enter the following information.

Under Revision and Lot Serial And LPN enter the required information.

Under the other accounts tab enter the required information.

Save your work. Define Items: Navigation: Inventory --> Items --> Master items. Enter the name and description.

Go to Tolls and click on copy from.

Enter Finished good and then click on Apply and done button.

Receivable Setups:



Define System Options



Define Transaction Flexfield Structure



Define Sales Tax Location Flexfield Structure



Define AutoCash Rule Sets



Define Receivables Lookups



Define Invoice Line Ordering Rules



Define Grouping Rules



Define Application Rule Sets



Define Payment Terms



Define AutoAccounting



Open or Close Accounting Periods



Define Transaction Types

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Define Transaction Sources

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Define Collectors

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Define Approval Limits

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Define Remittance Banks

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Define Receivables Activities

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Define Receipt Classes

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Define Receipt Sources

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Define Payment Methods

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Define Statement Cycles

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Define System Profile Options

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Define Salespersons

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Define Customer Profile Classes

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Define Customers

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Define Remit–To Addresses

Define System Options: Define your accounting, discount, tax, and invoice system options to control how Receivables works. System options determine your accounting method, set of books, accounting flexfields, whether you use header or line–level rounding, and control the default operation of the AutoInvoice and Automatic Receipt programs. System options also control how Receivables calculates tax on your transactions. You must specify a tax method, choose a Location Flexfield Structure, indicate whether to compound tax, select the address validation to use, and define tax defaults and rounding options. As you can set up your system to calculate Sales Tax, Value Added Tax, or Canadian Tax, we recommend that you carefully review the appropriate implementing tax essay before defining your system options. Navigation: Receivables --> Setups --> System --> System Options.

Enter the required information in respective fields.

Define Transaction Flexfield Structure:

Transaction flexfields are descriptive flexfields that AutoInvoice uses to identify transactions and transaction lines. Receivables lets you determine how you want to build your transaction flexfield structure and what information you want to capture.

There are four types of transaction flexfields:

• Line Transaction Flexfield

• Reference Transaction Flexfield • Link–To Transaction Flexfield • Invoice Transaction Flexfield You must define the Line Transaction Flexfield if you use AutoInvoice. You can use the Line Transaction Flexfield to reference and link to other lines because the Line Transaction Flexfield is unique for each transaction line. AutoInvoice always uses the Line Transaction Flexfield structure for both the Link–to and Reference information when importing invoices. You must explicitly define the Link– to, Reference, and Invoice Transaction Flexfield structures only if this information is to be displayed on a custom window. Receivables gives you the option of displaying Invoice Transaction Flexfield information in the reference column of invoice lists of values. Use the System Profile Option AR: Transaction Flexfield QuickPick Attribute to select the Invoice Transaction Flexfield segment that you want to display. For example, if you want to be able to reference the order number for imported invoices when using an invoice list of values, you must assign the transaction flexfield segment that holds the order number to the AR: Transaction Flexfield QuickPick Attribute profile option. The order number will now display in the reference column of invoice lists of values. Line Transaction Flexfield: Use columns INTERFACE_LINE_ATTRIBUTE1–15 and INTERFACE_LINE_CONTEXT to define the Line Transaction Flexfield. Line Transaction Flexfields are unique for each record in the interface table and therefore can be used as record identifiers. Reference Transaction Flexfield: Reference Transaction Flexfields have the same structure as the Line Transaction Flexfields. Transactions 4 – 235 Reference Transaction Flexfields are used to apply a credit memo to an invoice or associate an invoice to a specific commitment. For example, to refer a credit memo to a specific invoice, use the REFERENCE_LINE_ATTRIBUTE1– 15 and REFERENCE_LINE_CONTEXT columns of the credit memo to enter the Line Transaction Flexfield of the invoice. To refer an invoice to a specific commitment, use the REFERENCE_LINE_ATTRIBUTE1–15 and REFERENCE_LINE_CONTEXT columns of the invoice to enter the Line Transaction Flexfield of the commitment.

Link–To Transaction Flexfield: Link–To Transaction Flexfields also have the same structure as the Line Transaction Flexfield. Use Link–To Transaction Flexfields to link transaction lines together in the interface table. For example, you might want to import tax and freight charges that are associated with specific transaction lines. If you want to associate a specific tax line with a specific transaction line, use the LINK_TO_LINE_ATTRIBUTE1–15 and LINK_TO_LINE_CONTEXT columns of the tax line to enter the Line Transaction Flexfield of the invoice. Invoice Transaction Flexfields: Create a new flexfield with a similar structure as the Line Transaction Flexfield, but only include header level segments. For example, if the Line Transaction Flexfield structure has four segments and the last two segments contain line level information, define your Invoice Transaction Flexfield using the first two segments only. Segments included in the Invoice Transaction Flexfield should be included in the AutoInvoice grouping rules.

Define Sales Tax Location Flexfield: Receivables uses the customer shipping address to determine the sales tax rate on transactions for all customers in the country that you define in the Systems Option window as your home country. Proceed to the next step if you are not charging your customers tax based on their shipping address. Following are the seeded Sales Tax Location Flexfield structures: • Country • State and City • Province and City • City • Province • State, County and City Use the Key Flexfield Segments window to select the seeded Sales Tax Location Flexfield structure, or to set up a new structure, that you want Receivables to use to determine your sales tax rates and to validate your customer addresses. You can confirm that the required segments are enabled by navigating to the Segments Summary window. Navigate back to the Key Flexfield Segments window to freeze your flexfield

structure by checking the Freeze Flexfield Definition check box and then compiling the flexfield. Note: When you define tax system options in the System Options window, use the list of values in the Location Flexfield Structure field to select the same Sales Tax Location Flexfield structure that you selected in the Key Flexfield Segments window.

Navigation: Receivables --> Setup --> Financials --> Flexfield --> Key --> Segments.

Query with Sales Tax Location Flexfield

Enter the required information in respective filelds.

Save your work. Like wise we can define other sales tax location flexfields, Define AutoCash Rule Sets:

If you are using AutoCash, define your AutoCash rule sets before defining system parameters or customer profiles classes. AutoCash rules determine the sequence of application methods Receivables uses when applying receipts imported using AutoLockbox to open debit items.

Navigation: Receivables --> Setup --> Receipts --> Autocash rule sets.

Define Receivables Lookups:

Receivables provides several default lookups which are used throughout the application to provide validated default values and list of values choices. You can add or update these to customize your list of values and speed data entry. For example, you can define additional reasons for creating credit memos or enter the names of each freight carrier used by your business.

Navigation: Receivables --> Setup --> System --> Quickcodes --> Receivables.

Define lookups as you like.

Define Invoice Line Ordering Rules:

If you are using AutoInvoice, define invoice line ordering rules to specify how you want to order and number transaction lines after AutoInvoice groups them into invoices, debit memos, and credit memos. Receivables provides many attributes that you can use to define your line ordering rules.

Navigation: Receivables --> Setup --> Transactions --> Autoinvoice --> Line Ordering rule.

Define Grouping Rules:

If you are using AutoInvoice, define grouping rules to indicate how you want to group transaction lines imported by AutoInvoice. For example, to include specific transaction lines on a single transaction, certain attributes must be identical. Receivables provides many attributes that you can use to define your grouping rules.

Navigation: Receivables --> Setup --> Transactions --> Autoinvoice --> Grouping Rule.

Define Application Rule Sets:

Define Application Rule Sets to control how Receivables reduces the balance due for your open debit items when you apply payments using either the Applications window or Post QuickCash. You can define your own application rule sets, assign them to transaction types, and specify a default rule set in the System Options window.

Navigation: Receivables --> Setup --> Receipts --> Application Rule sets.

Define Payment Terms:

Define payment terms to determine the payment schedule and discount information for customer invoices, debit memos, and deposits. You can also define proxima payment terms to pay regular expenses such as telephone bills and credit card bills that occur on the same day each month and create split payment terms for invoice installments that have different due dates.

Navigation: Receivables --> Setup --> Transactions --> Payment terms.

Define AutoAccounting:

Define AutoAccounting to specify the general ledger accounts for transactions that you enter manually or import using AutoInvoice. AutoAccounting uses this information to create the default revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, bills receivable accounts, and AutoInvoice clearing (suspense) accounts.

Navigation: Receivable --> Setup --> Transactions --> Auto Accounting.

Like wise we should also define reaming auto accounting types.

Open or Close Accounting Periods:

Navigation: Receivables --> Control --> Accounting --> Open/Close Periods.

Define Transaction Types:

Define the transaction types that you assign to invoices, debit memos, commitments, chargebacks, credit memos, on–account credits, and bills receivable. Receivables uses transaction types to default payment term, account, tax, freight, creation sign, posting, and receivables information. Receivables provides two predefined transaction types: Invoice and Credit Memo.

Navigation: Receivables --> Setup --> Transaction --> Transaction Types.

Define Transaction Sources:

Define the transaction sources that you assign to invoices, debit memos, commitments, credit memos, on–account credits, and bills receivable. Receivables uses transaction sources to control your transaction and transaction batch numbering, provide default transaction types for transactions in batch, and to select validation options for imported transactions. Receivables provides the following predefined transaction sources: MANUAL–OTHER, DM Reversal, and Chargeback. Navigation: Receivables --> Setup --> Transaction --> Sources.

Define Collectors:

Define collectors to assign to your customers through credit profile class assignments. Collectors can use the Collections windows and Receivables collection reports to keep apprised of a customer’s past due items. Receivables provides a predefined collector called DEFAULT.

Navigation: Receivables --> Setup --> Collections --> Collectors.

Define Approval Limits: Define approval limits to determine whether a Receivables user can approve adjustments or credit memo requests. You define approval limits by document type, dollar amount, reason code, and currency. Approval limits affect the Adjustments, Submit AutoAdjustments, and Approve Adjustments windows as well as the Credit Memo Request Workflow. Navigation: Receivables --> Setup --> Transactions --> Approval Limits.

Define Remittance Banks: Proceed to the next step if you already defined your remittance banks in Oracle Payables. Define all of the banks and bank accounts you use to remit your payments. You can define as many banks and bank accounts as you need and define multiple currency bank accounts to accept payments in more than one currency.

Define Receivables Activities

Define Receivables Activities to provide default accounting information when you create adjustments, discounts, finance charges, miscellaneous cash transactions, and bills receivable. Receivables also uses Receivables Activities to account for tax if you calculate tax on these activities. Navigation: Receivables --> Setup --> Receipts --> Receivable Activities.

Like wise we should define reaming receivable actives also. Define Receipt Classes: Define receipt classes to specify whether receipts are created manually or automatically. For manual receipts, you can specify whether to automatically remit it to the bank and/or clear your accounts. For automatic receipts, you can specify a remittance and clearance method, and whether receipts using this class require confirmation. Navigation: Receivables --> Setup --> Receipts --> Receipts Class.

Click on Bank accounts.

Enter information in respective fields.

Save your work.

Define Payment Method: Define the payment methods to account for your receipt entries and applications and to determine a customer’s remittance bank information. When defining payment methods, you must enter a receipt class, remittance bank information, and the accounts associated with your payment receivables type. You can also specify accounts for confirmation, remittance, factoring, bank charges, and short–term debt. Navigation: Receivables --> Setup --> Receipts --> Receipts Class.

Define Statement Cycles: Define statement cycles to control when you create customer statements. You assign statement cycles to customers in the Customer Profile Classes window. Navigation: Receivables --> Setup --> Print --> Statement Cycle.

Define profile options: Define profile options to provide default values for some Receivables operations, specify how Receivables processes data, and control which actions users can perform. Navigation: Administrator --> Profile --> Systems. During your implementation, you set a value for each Receivables user profile option to specify how Receivables controls access to and processes data. Receivables lets you govern the behavior of many of the windows that use profile options. Profile options can be set at the following levels: • Site: This is the lowest profile level. Site level profile option values affect the way all applications run at a given site.

• Application: These profile option values affect the way a given application runs. • Responsibility: These profile option values affect the way applications run for all users of a given responsibility. • User: These profile option values affect the way applications run for a specific application user. The values you enter for options at the User level supersede the values that your system administrator has entered for you for these options. Each of these user profile options affect the behavior of Receivables in different contexts. In Receivables, operations that profile options can affect include receipt application, the entry of adjustments, the creation and remittance of automatic receipts and taxes, and posting to your general ledger. You may also have additional user profile options on your system that are specific to applications other than Receivables. To change profile options at the Site, Application, or Responsibility level, choose the System Administrator responsibility, then navigate to the Personal Profile Values window. Query the Profile Name field to display the profile options with their current settings, make your changes, then save your work. You can change profile options at the user level in the Personal Profile Values window. To do this, navigate to the Personal Profile Values window, query the profile option to change, enter a new User Value, then save your work. Generally, your system administrator sets and updates profile values at each level. Attention: For any changes that you make to profile options to take effect, you must either exit, and then reenter Receivables, or switch responsibilities.

Define Salespersons: Define salespersons to allocate sales credits to invoices, debit memos, and commitments. If you do not want to assign sales credits for a transaction, you can enter No Sales Credit. If

AutoAccounting depends on salesperson, Receivables uses the general ledger accounts that you enter for each salesperson along with your AutoAccounting rules to determine the default revenue, freight, and receivable accounts for transactions. Define Customer Profile Classes: Define customer profile classes to categorize customers based on credit, payment terms, statement cycle, automatic receipt, finance charge, dunning, and invoicing information. When you initially set up your customers, you assign each customer to a profile class. To customize the profile class for a specific customer, use the Customer Profile Classes window. Navigation: Receivables --> Customers --> Profile Classes. In Profile Class window enter the following information.

In Profile class Amount tab enter the following information.

Save your work. Define Customers:

Define customers and customer site uses to enter transactions and receipts in Receivables. When you enter a new customer, you must enter the customer’s name, profile class and number (if automatic customer numbering is set to No). You can optionally enter customer addresses, contacts, site uses and telephone numbers. You must enter all the components of your chosen Sales Tax Location Flexfield when entering customer addresses in your home country. Navigation: Receivables --> Customers --> Standard. Define Remit–To Addresses: Define remit–to addresses to inform your customers where to send payments. Associate each remit–to address with one or more state, country, and postal code combinations. For example, if you want your customers in California and Nevada to send their payments to a specific address, enter the remit–to address and associate the states CA and NV with this address. Remit–to addresses are assigned based on the bill–to address on the transaction.

Navigation: Setup --> Print --> Remit-to-addresses. Click on Create Remit to addresses.

Enter the required information

Click on Apply.

Enter the country name in the same page and then click on the GO. Click on the Receipts form Create button.

Enter the following information and click on Apply button.