R12 Oracle General Ledger Management Fundamentals Student Guide Vol.1.pdf

R12 Oracle General Ledger Management Fundamentals

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Volume 1 - Student Guide

D49193GC10 Edition 1.0 June 2007 D51170

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Copyright © 2007, Oracle. All rights reserved. This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy and print this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way. Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display, perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorization of Oracle. The information contained in this document is subject to change without notice. If you find any problems in the document, please report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is not warranted to be error-free. If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the United States Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS The U.S. Government’s rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restricted by the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract. Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

Author Brent Bosin, Marilyn Crawford Technical Contributors and Reviewers Theresa Hickman, Mei Siauw, Cynthia Prier, Ivy Farren, Joe Gum, Kathy Wohnoutka, Pam Rietz, Suzanne Miller This book was published using:

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Table of Contents Oracle General Ledger Process ......................................................................................................................1-1 Oracle General Ledger Process .....................................................................................................................1-3 Objectives ......................................................................................................................................................1-4 Oracle General Ledger Overview ..................................................................................................................1-5 General Ledger Overview..............................................................................................................................1-6 Functions and Features ..................................................................................................................................1-7 General Ledger Accounting Cycle ................................................................................................................1-8 Critical Implementation Issues ......................................................................................................................1-9 Oracle General Ledger Integrates with … .....................................................................................................1-10 Also Integrates with …..................................................................................................................................1-13 Integrating with Subledgers...........................................................................................................................1-15 Importing to General Ledger from Non-Oracle Applications........................................................................1-16 Overview of Accounting Setup Manager ......................................................................................................1-17 Foreign Currency Concepts ...........................................................................................................................1-18 Multiple Currency Support ............................................................................................................................1-19 Budgeting ......................................................................................................................................................1-21 Overview of Enterprise Planning and Budgeting (EPB) ...............................................................................1-22 Reporting and Analysis .................................................................................................................................1-23 Standard Reports and Listings .......................................................................................................................1-25 Financial Statement Generator Reports (FSG) ..............................................................................................1-26 Summary........................................................................................................................................................1-27

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Accounting Setup Manager ............................................................................................................................2-1 2-1 Accounting Setup Manager ...........................................................................................................................2-3 ......2-3 .....2-3 Objectives ......................................................................................................................................................2-4 .............2-4 ............2-4 Accounting Setups.........................................................................................................................................2-5 ...................2-5 ..................2-5 Ledger Processing Options ............................................................................................................................2-7 ..... ..........................2-7 ......................2-7 Secondary Ledgers ........................................................................................................................................2-9 ............................... ............................... Reporting Currencies.....................................................................................................................................2-11 ............. .............................. .................. Accounting Setup Considerations..................................................................................................................2-13 ........................... Accounting Setups with One Legal Entity ....................................................................................................2-14 ................................ ............................... Accounting Setups with Multiple Legal Entities ...........................................................................................2-16 .............................. Accounting Setups with No Legal Entities....................................................................................................2-17 ............................. ............................ Designing the Chart of Accounts...................................................................................................................2-18 ............................... Summary........................................................................................................................................................2-19 ................................ ...............................

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Ledger...............................................................................................................................................................3-1 ................................ ............................... ................ ............... Ledger............................................................................................................................................................3-3 ............................... .......................... Objectives ......................................................................................................................................................3-4 ................................ ............................... ................................ ............................... Ledgers Defined ............................................................................................................................................3-6 ............................... ............................... Accounting Setup Manager Overview...........................................................................................................3-7 view........................ ................................ ............................... Secondary Ledgers ........................................................................................................................................3-9 ............................... ............................... Secondary Ledger Conversion rsion Levels ........... ...........................................................................................................3-10 ............................... .............................. Reporting Currencies.....................................................................................................................................3-12 .............................. ............................ ........................... Reporting Currency ncy (RC) Conversion Conversio Levels................................................................................................3-13 els................ Accounting Setup Setup Steps.................................................................................................................................3-14 Steps............. ......... Accounting ing Setup Manager Create Accounting Setup ..................................................................................3-16 Accounting ounting Calendar .... .....................................................................................................................................3-18 Unlimited Currencie Currencies.....................................................................................................................................3-19 Cu rrencie Sharing Ledgers Across Oracle Applications ................................................................................................3-20 Chart of Ac Accounts..........................................................................................................................................3-21 Building the Chart of Accounts Structure......................................................................................................3-22 Identifying Business Requirements ...............................................................................................................3-23 Iden

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Identifying Segment Requirements ...............................................................................................................3-24 Analyzing Reporting Requirements...............................................................................................................3-26 Creating a Worldwide Chart of Accounts......................................................................................................3-27 Worldwide Chart of Accounts Example........................................................................................................3-28 Creating Vertical Structures ..........................................................................................................................3-29 Validation and Value Sets .............................................................................................................................3-30 Using Independent and Dependent Segments................................................................................................3-31 Designing Size and Numbering Systems.......................................................................................................3-33 Creating Accounting Flexfields.....................................................................................................................3-35 Defining Value Sets.......................................................................................................................................3-36 Defining the Accounting Flexfield Structure.................................................................................................3-38 Defining Segment Values ..............................................................................................................................3-41 Populating Segment Value Attributes............................................................................................................3-42 Segment Qualifiers ........................................................................................................................................3-43 Control Accounts...........................................................................................................................................3-45 Control Accounts Setup and Process .............................................................................................................3-46 Defining Hierarchies......................................................................................................................................3-47 Working with Ranges ....................................................................................................................................3-49 Account Hierarchies ......................................................................................................................................3-50 Account Hierarchy Manager..........................................................................................................................3-51 Account Hierarchy Manager—Security ........................................................................................................3-52 Defining an Accounting Calendar .................................................................................................................3-54 Defining Period Types...................................................................................................................................3-56 Defining Your First Accounting Period.........................................................................................................3-57 Accounting Period Statuses ...........................................................................................................................3-58 Calendar Auditing..........................................................................................................................................3-600 Enabling Currencies ......................................................................................................................................3-61 3-61 Enabling Account Combinations...................................................................................................................3-62 .......3-62 ......3-62 Segment Value Inheritance............................................................................................................................3-63 .............3-63 Troubleshooting Segment Value Inheritance.................................................................................................3-65 ......... ...................3-65 ...........3-65 Defining Flexfield Security Rules .................................................................................................................3-67 ..........................3-6 ..........................3-6 Using Dynamic Insertion...............................................................................................................................3-69 .......... ............................. .................... Defining Cross-Validation Rules...................................................................................................................3-70 .............................. .............................. Defining Shorthand Aliases...........................................................................................................................3-72 ........................ ............................. ...... Overview of Account Hierarchy Manager.....................................................................................................3-74 ................................ ............................... Integrating with Oracle General Ledger ........................................................................................................3-76 ................................ ............................... Using the Account Hierarchy Toolbar...........................................................................................................3-77 ................................ ............................... Account Hierarchy Manager Segment Symbols............................................................................................3-78 ............................... Parent Levels in an Account Hierarchy .........................................................................................................3-80 ................................ ............................... ... Creating New Child Values ...........................................................................................................................3-81 ........................................ ......... Ledger Sets ....................................................................................................................................................3-82 .................................................. Data Access Sets............................................................................................................................................3-83 ........................................................... ............................ Summary........................................................................................................................................................3-84 ................................ ............................... ................................ ...............................

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Basic Journal Entries ......................................................................................................................................4-1 ............................... .............................. ............................... .............................. Basic Journal Entries .....................................................................................................................................4-3 .............................. ........................................................... ............................. Objectives ......................................................................................................................................................4-4 ................................ ............................... ................................ ............................... Journal Entries and the he Accounting he Accounting Cycle.....................................................................................................4-7 Cycl ......................... Integrating Journal nal Entries Entries in Oracle eBusiness ness ............................................................................................4-8 ........... Performing Journal Entry Funct Fu Functions..............................................................................................................4-9 nct ........ ........ Journal Entry Entry Types............ Types.......................................................................................................................................4-10 Journal nal Creation Creation Metho Methods..............................................................................................................................4-11 Journal ournal Components Co Component mponent ......................................................................................................................................4-13 Grouping Journ Journals into Batches.....................................................................................................................4-15 Manual Jou Journal Entries..................................................................................................................................4-17 Performing Additional Journal Actions.........................................................................................................4-19 Perform Posting Journals.............................................................................................................................................4-20 Pos

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Data Access Set Impact to Posting ................................................................................................................4-23 Posting to a Prior Period................................................................................................................................4-24 Overview of AutoPost ...................................................................................................................................4-26 Defining AutoPost Criteria Sets ....................................................................................................................4-27 Running AutoPost..........................................................................................................................................4-29 Performing Online Inquiries for Accounts and Journal Entries.....................................................................4-30 Performing Account Inquiry..........................................................................................................................4-31 Reviewing Balances with Account Inquiry ...................................................................................................4-33 Reviewing Variances Between Account Balance Types ...............................................................................4-34 Drilling Down to Subledger Details ..............................................................................................................4-35 T Accounts and Drilldown.............................................................................................................................4-37 Display Options Available While Viewing ...................................................................................................4-39 T Accounts.....................................................................................................................................................4-40 Activity Summary..........................................................................................................................................4-42 Reversing Journal Entries ..............................................................................................................................4-43 Creating Reversing Journals ..........................................................................................................................4-45 Reversing Journals Automatically .................................................................................................................4-46 Journal Reversal Prerequisites.......................................................................................................................4-47 Running Journal Entries Report.....................................................................................................................4-48 Integrating with Oracle General Ledger ........................................................................................................4-49 Web Applications Desktop Integrator Overview...........................................................................................4-50 Web ADI Core Functionality.........................................................................................................................4-52 Desktop Integration Via Web ADI ................................................................................................................4-54 Administering Web ADI ...............................................................................................................................4-56 Creating Web ADI Spreadsheets ...................................................................................................................4-57 Working With Web ADI Spreadsheets..........................................................................................................4-588 Defining Web ADI Layouts...........................................................................................................................4-59 4-59 Defining Web ADI Mappings .......................................................................................................................4-60 .......4-60 ......4-60 Defining Web ADI Style Sheets....................................................................................................................4-61 .............4-61 Defining Web ADI Setup Options for Key Flexfields...................................................................................4-62 ................ ....................4-62 .....4-62 Uploading and Downloading Data from Web ADI Spreadsheets .................................................................4-63 ............................4-6 ...........................4-6 Identifying Web ADI Profile Options ...........................................................................................................4-65 ................... .............................. ............ Identifying Form Functions, Menus, and Responsibilities in Web ADI........................................................4-66 .............................. Overview of Importing Journal Entries .........................................................................................................4-67 ................................ ............................... Importing Descriptive Flexfields ...................................................................................................................4-69 .............................. Importing Journals.........................................................................................................................................4-70 ............................... .............................. Multi-Table Journal Import ...........................................................................................................................4-72 ................................ ............................... Journal Import Group By Effective Dates Description..................................................................................4-74 ............................... Journal Import Group By Effective Dates Benefits .......................................................................................4-75 .............................. How to Set Up Journal Import Group By Effective Dates Dates ..................... ............................................................................4-76 .......... ......... Using Journal Import Group By Effective Dates...........................................................................................4-77 s.............................. ...................... ..................... Importing Journal References........................................................................................................................4-78 ........................................................... ............................ Reviewing Journal Import Data.....................................................................................................................4-80 ................................ ............................... ................................ ............................... Journal Import Verification Processs ............................ ..............................................................................................................4-81 ............................. ............................ Using Journal Entry Sources and ndd Ca Categories.......... Categories.................................................................................................4-83 tegories.......... ................................ ............................... Setting Profile Options ..................................................................................................................................4-85 ............................... ............................... Summary........................................................................................................................................................4-86 ................................ ............................... ............................... ..............................

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Using Accounting g Setup Manager.... Manager..................................................................................................................5-1 .................. Using Accounting unting Setup Manag Manager.................................................................................................................5-3 ........ Objectives ves ......................................................................................................................................................5-4 ........................... Creating ating Accoun Accounting ting Se Setups ..........................................................................................................................5-6 Accounting Setup P Prerequisites.....................................................................................................................5-7 Create Account Accounting Setup Demonstration ......................................................................................................5-8 Legal Entiti Entities Pages.......................................................................................................................................5-9 Accounting Setups Pages...............................................................................................................................5-10 Accoun Accounting Setup Manager Checklist ...........................................................................................................5-11 Acc

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Accounting Setup Manager Checklist (continued) ........................................................................................5-12 Legal Entities Overview ................................................................................................................................5-13 Balancing Segment Value Assignments ........................................................................................................5-14 Using Balancing Segment Values for Transaction Processing ......................................................................5-15 Completing Accounting Setups .....................................................................................................................5-16 Designating the Balancing Segment for a Chart of Accounts .......................................................................5-17 Defining Legal Entities Using Accounting Setup Manager...........................................................................5-18 Updating Balancing Segment Values ............................................................................................................5-20 Creating Accounting Setup Structures...........................................................................................................5-22 Creating Accounting Setup Structures (continued) .......................................................................................5-23 Creating an Accounting Setup .......................................................................................................................5-25 Completing Accounting Options ...................................................................................................................5-27 Updating Legal Entities .................................................................................................................................5-28 Primary Ledger Setup Steps ..........................................................................................................................5-30 Ledger Options ..............................................................................................................................................5-31 Reporting Currencies.....................................................................................................................................5-32 Ledger Balancing Segment Value Assignments............................................................................................5-33 Subledger Accounting Options......................................................................................................................5-35 Operating Units .............................................................................................................................................5-36 Intracompany Balancing Rules......................................................................................................................5-38 Sequencing ....................................................................................................................................................5-39 Secondary Ledgers ........................................................................................................................................5-40 Using Secondary Ledgers for Consolidated Reporting..................................................................................5-50 Using Ledgers for Consolidation...................................................................................................................5-54 Completing Accounting Setup.......................................................................................................................5-56 Adding, Deleting, Disabling Secondary Ledgers ..........................................................................................5-588

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Summary Accounts..........................................................................................................................................6-1 ....6-1 ...6-1 Summary Accounts........................................................................................................................................6-3 ..........6-3 Objectives ......................................................................................................................................................6-4 .................6-4 ................6-4 Overview .......................................................................................................................................................6-5 .......................6-5 Defining Summary Accounts ........................................................................................................................6-7 ............ .............................6 ..................6 Summary Account Examples ........................................................................................................................6-8 ............................... ............................... Detail Versus Summary Accounts.................................................................................................................6-10 ............................ ........................... Summary Accounts Versus Parent Values ....................................................................................................6-11 ............................... Parent Values and Rollup Groups..................................................................................................................6-12 ................................ ............................... Rollup Groups ...............................................................................................................................................6-13 .............................. Summary Account Templates........................................................................................................................6-14 .............................. ............................. Template Values ............................................................................................................................................6-15 .............................. Defining Summary Accounts ........................................................................................................................6-16 .............................. ................................... ..... Summary Account Creation Example ...........................................................................................................6-17 ................................ ............................... ................. Maintain Summary Accounts Overview........................................................................................................6-18 ............................... .............................. ......................... ........................ Maintaining Summary Templates..................................................................................................................6-19 ................................ ............................... ................................ ............................... Setting Budgetary Control .............................................................................................................................6-21 .............................. .............................. ............................... .............................. Incremental Add/Delete Summary ry Templates Templates Progra Program ram ......................... ................................................................................6-24 Planning Summary Accounts ............................. ........................................................................................................................6-26 .............................. ............................. Determine Summary Account count ount Needs ........... ............................................................................................................6-27 .............................. Plan Summary Account ount unt Structure ......... .................................................................................................................6-29 ........................... .......................... Plan Values and Groups .................. ................................................................................................................................6-35 .................. Plan Summary ary Account Account Templa Temp Templates................................................................................................................6-37 la ........ Summary........................................................................................................................................................6-38 ry............................. y.............................

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Advanced anced Jour Journal nal Ent nal Entries ..............................................................................................................................7-1 Advanced Journal Jourrrnal Journa na Entr Entries ..............................................................................................................................7-3 Objectives ......................................................................................................................................................7-4 .... About Re Recurring Journals ..............................................................................................................................7-5 Recurring Journal Types................................................................................................................................7-6 Recu Creating Recurring Journals ..........................................................................................................................7-7 C Copyright © Oracle Corporation, 2007. All rights reserved.

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Recurring Journal Entry Lines.......................................................................................................................7-9 Automatic Offset Example ............................................................................................................................7-10 Formula Recurring Journals ..........................................................................................................................7-11 Generating Recurring Journals ......................................................................................................................7-12 MassAllocations Overview............................................................................................................................7-13 MassAllocations versus Recurring Journals ..................................................................................................7-14 Steps to Create MassAllocation Journals.......................................................................................................7-15 Defining MassAllocation Journals ................................................................................................................7-16 Defining MassAllocation Formulas...............................................................................................................7-18 Account Segment Types................................................................................................................................7-20 Target and Offset Accounts ...........................................................................................................................7-21 MassAllocation Journal Example ..................................................................................................................7-22 Rent Expense Example ..................................................................................................................................7-24 Validating MassAllocation Journals..............................................................................................................7-25 Generating Mass Allocation Journals ............................................................................................................7-26 AutoAllocations Overview ............................................................................................................................7-27 AutoAllocation Workbench...........................................................................................................................7-28 Business Benefits of AutoAllocation Workbench .........................................................................................7-29 AutoAllocation Set Types..............................................................................................................................7-30 Step-Down AutoAllocations..........................................................................................................................7-31 Parallel AutoAllocations................................................................................................................................7-32 Additional Workbench Functionality ............................................................................................................7-33 AutoAllocation Sets and Oracle Workflow ...................................................................................................7-34 AutoAllocations and Oracle Workflow .........................................................................................................7-35 AutoAllocations Constraints..........................................................................................................................7-36 Submitting AutoAllocation Set Requests ......................................................................................................7-377 Reviewing the Status of AutoAllocations......................................................................................................7-38 7-38 Implementation Considerations for AutoAllocation Workbench ..................................................................7-39 .......7-3 ......7-399 AutoScheduling Overview.............................................................................................................................7-40 .............7-40 AutoScheduling Process ................................................................................................................................7-41 ....................7-41 ...................7-41 Financial Schedules .......................................................................................................................................7-42 ..........................7-4 Scheduling Journals.......................................................................................................................................7-44 ...... ............................. ........................ Scheduling a Request Using a Financial Schedule ........................................................................................7-45 .............................. Periodic Submissions.....................................................................................................................................7-46 .................... ............................. .......... Incremental Submissions ...............................................................................................................................7-47 ............................. Implementation Considerations for Journal Entry Automations ...................................................................7-48 ................................ ............................... GL Journal Approval Process Overview .......................................................................................................7-49 ................................ ............................... Journal Approval Features.............................................................................................................................7-50 ............................. ............................ Journal Approval Process ..............................................................................................................................7-51 .............................. Approval Methods .........................................................................................................................................7-56 ........................................ ......... Journal Approval Prerequisites......................................................................................................................7-57 ................................ ............................... ...................... ..................... Setting Up Journal Approval .........................................................................................................................7-58 ............................... .............................. Summary........................................................................................................................................................7-60 ................................ ............................... ................................ ...............................

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Advanced Security...........................................................................................................................................8-1 ................................ ............................... ................................ ............................... Advanced Security.........................................................................................................................................8-3 ............................... ............................... Objectives ......................................................................................................................................................8-4 ................................ ............................... ................................ ............................... Data Access Security y for Legal Entities and nd Ledgers....................................................................................8-5 nd Ledgers......... Setup and Process sss ............................ ..........................................................................................................................................8-12 .................. Data Accesss Security for Legal Entities and Ledge Ledgers Setup and Process......................................................8-13 Data Access ccess cess Security for Le Legal Entities and Ledgers Setup - Define Data Access Set.................................8-14 Management nagement Reporting Reporting and Security ............................................................................................................8-15 Management Reporting Repor and Security Setup ..................................................................................................8-19 Summary........................................................................................................................................................8-20 Summary.........

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Financial B Budgeting.........................................................................................................................................9-1 Financial Budgeting.......................................................................................................................................9-3 Finan Objectives ......................................................................................................................................................9-4 O Copyright © Oracle Corporation, 2007. All rights reserved.

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What Is a Budget?..........................................................................................................................................9-6 What Is an Oracle Budget? ............................................................................................................................9-7 Available Budget Methods ............................................................................................................................9-8 Anatomy of a Budget—Overview .................................................................................................................9-9 Budget Accounting Cycle..............................................................................................................................9-10 Creating a Budget ..........................................................................................................................................9-12 Budget Definition Steps.................................................................................................................................9-13 Budget Hierarchies ........................................................................................................................................9-14 Define a Budget .............................................................................................................................................9-15 Open Budget Year .........................................................................................................................................9-16 Master-Detail Budgets...................................................................................................................................9-17 Budgets Using FSG Reports..........................................................................................................................9-18 Multiple Versions of a Budget.......................................................................................................................9-19 Define Budget Organizations ........................................................................................................................9-20 Features of Budget Organizations .................................................................................................................9-21 Budget Organization Window .......................................................................................................................9-22 AutoCopy Budget Organizations...................................................................................................................9-23 Assign Account Ranges.................................................................................................................................9-24 Add/Change Account Ranges........................................................................................................................9-25 Removing Account Ranges ...........................................................................................................................9-26 Delete a Budget Organization........................................................................................................................9-27 Budget Entry Methods...................................................................................................................................9-28 Journals Created?...........................................................................................................................................9-30 Budget Entry Modes......................................................................................................................................9-31 Entering Budget Amounts .............................................................................................................................9-32 Budget Rules .................................................................................................................................................9-333 Budget Rules and Your Calendar ..................................................................................................................9-34 9-34 Budget Journals Process ................................................................................................................................9-35 .......9-35 ......9-35 Entering Budget Journals...............................................................................................................................9-36 .............9-36 Budget Journal Features ................................................................................................................................9-37 ....................9-37 ...................9-37 Calculating and Translating Budget Amounts...............................................................................................9-38 .................. ...........................9-3 ..........9-3 Budget Translation Overview........................................................................................................................9-39 .............. .............................. ................. Transfer Budget Overview ............................................................................................................................9-40 .............................. .............................. Transfer Budget Process ................................................................................................................................9-41 ...................... ............................. ........ Transfer Budget Amounts Example ..............................................................................................................9-42 ................................ ............................... Transfer Budget Percentage Example............................................................................................................9-43 ................................ ............................... Transfer with Budgetary Control...................................................................................................................9-44 ................................ ............................... Finalize Budgets ............................................................................................................................................9-46 ............................... ................................ Correcting Budgets ........................................................................................................................................9-47 ................................ ............................... ... Budget Journal Entries?.................................................................................................................................9-48 ........................................ .......... No Budget Journal Entries? ...........................................................................................................................9-49 ............................... .................................................. Freeze Budgets ..............................................................................................................................................9-50 ............................... .............................. Budget Inquiry Overview ..............................................................................................................................9-51 ............................... ............................................................ Performing Account Inquiry..........................................................................................................................9-52 ............................... ............................... Reviewing Variances Between Account Balance Balance Types T ..................... ...............................................................................9-53 Budget Inquiry Window ................................................................................................................................9-54 ............................... ............................... Drilldown This Budgett .............................. ..................................................................................................................................9-55 ............................... .............................. Query Detail Budgets gets and and Violations Only O y ...................................................................................................9-56 ..................... Two Wizards - Overview ............. ..............................................................................................................................9-57 ............. Budget Wizard: izard: Overview .............................................................................................................................9-58 izard: ..... Budget ett Wizard Key Bene Benefits .........................................................................................................................9-59 Summary........................................................................................................................................................9-60 ummary...................

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Multi-Currency................................................................................................................................................10-1 Multi-Currency. Multi-Currency ..............................................................................................................................................10-3 Multi-Curr Objectives ......................................................................................................................................................10-4 Objecti Overview of Multi-Currency .........................................................................................................................10-5 Ov Copyright © Oracle Corporation, 2007. All rights reserved.

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Foreign Currency Concepts ...........................................................................................................................10-6 Integrating with Subledgers...........................................................................................................................10-7 Reporting Currencies.....................................................................................................................................10-8 Defining Currencies.......................................................................................................................................10-10 Conversion Overview ....................................................................................................................................10-12 Conversion Example......................................................................................................................................10-13 Defining Conversion Rate Types...................................................................................................................10-14 Entering Daily Rates......................................................................................................................................10-16 Revaluation Overview ...................................................................................................................................10-17 Revaluation Process.......................................................................................................................................10-18 Running Revaluation .....................................................................................................................................10-19 Revaluation Example.....................................................................................................................................10-21 Currency Rates Manager Description............................................................................................................10-22 Currency Rates Manager Description (continued) ........................................................................................10-23 Currency Rates Manager Benefits .................................................................................................................10-24 Using Cross Rate Rules .................................................................................................................................10-25 Translation Overview ....................................................................................................................................10-26 Translation.....................................................................................................................................................10-28 Balances and Rates Used for Translation ......................................................................................................10-29 Cumulative Translation Adjustment Account ...............................................................................................10-30 Historical Rates .............................................................................................................................................10-31 Translation with Historical Rates and Amounts ............................................................................................10-32 Translating Owners' Equity Accounts ...........................................................................................................10-34 Secondary Tracking Segment Description.....................................................................................................10-36 Secondary Tracking Segment Description (continued) .................................................................................10-37 Secondary Tracking Segment Benefits..........................................................................................................10-38 388 How to Set Up Secondary Tracking Segment ...............................................................................................10-39 10-39 Using Secondary Tracking Segment..............................................................................................................10-41 .......10-41 ......10-41 Secondary Tracking Segment Closing and Translation Example.................................................................10-42 ..............10-42 ..............10-42 Secondary Tracking Segment Revaluation Example....................................................................................10-43 ................. ....................10-43 ....10-43 Automatically Assigned Rate Types..............................................................................................................10-44 ............ ...........................10 ................10 Foreign Currency Listings .............................................................................................................................10-46 ........... .............................. ..................... Foreign Currency Reports..............................................................................................................................10-47 .............................. .............................. Multi-Currency Profile Options.....................................................................................................................10-49 ............................... ............................... Summary........................................................................................................................................................10-51 ...................... ............................... ..........

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Consolidations..................................................................................................................................................11-1 ............................. Consolidations ...............................................................................................................................................11-3 ............................... .............................. Objectives ......................................................................................................................................................11-4 ................................ ............................... Overview of Consolidations ..........................................................................................................................11-5 ............................... .............................. ...... ..... Consolidation Tools.......................................................................................................................................11-6 ............................................. Consolidating Multiple Companies Sharing a Single Single Ledger........ Ledger....... Ledger........................................................................11-7 ........................... .......................... Consolidating Multiple Companies with Multiple Multiple Ledgers.... Ledgers...........................................................................11-8 ................................ ............................... Global Consolidation System (GCS) Features and Benef Bene Benefits f ......................... fits .........................................................................11-9 Global Consolidation System (GCS) CS) Features Features and Benefits Beenefits (continued) (continued) ......................................................11-10 Consolidating Data in Multiple ple Instances........... Instances......................................................................................................11-12 .............................. ............................. Interface Data Transformer meerr (IDT) Descriptio Desc Description..............................................................................................11-14 riptio tion.......................... ion.......................... Interface Data Transformer former (IDT) Benef former Benefits ts ........................ ...................................................................................................11-15 Interface Data Transformer ransformer (IDT) (IDT) Rule R Set Descriptio Description ..............................................................................11-16 Interface Data taa Transformer Strin String Function Examp Example...................................................................................11-17 Interface Data Transformer PL/SQL Function Example ..............................................................................11-18 Interface face Data Transform Transformer Lookup Table Example ....................................................................................11-19 Interface nterface Data Tran Transformer Steps ..................................................................................................................11-20 Other Uses for G Global Consolidation System................................................................................................11-21 Consolidation Workbench .............................................................................................................................11-23 Consolidati Consolidation Workbench (continued)..........................................................................................................11-24 Consoli Using the State Controller .............................................................................................................................11-26 Usi

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State Controller Button Colors ......................................................................................................................11-28 Defining a Consolidation Mapping ...............................................................................................................11-29 Mapping Rules...............................................................................................................................................11-31 Using Account Mapping Rules......................................................................................................................11-32 Using Segment Mapping Rules .....................................................................................................................11-33 Using Segment Rollup Rules.........................................................................................................................11-34 Defining a Consolidation Mapping Set .........................................................................................................11-36 Consolidation Hierarchy Viewer ...................................................................................................................11-37 Preparing Subsidiary Data .............................................................................................................................11-39 Revaluation Process.......................................................................................................................................11-41 Translation.....................................................................................................................................................11-43 Transferring Subsidiary Data to Parent Ledger .............................................................................................11-44 Consolidation Tracking and Reversals ..........................................................................................................11-46 Posting Consolidation Journal Entries...........................................................................................................11-47 Global Consolidation System Cross Instance Data Transfer .........................................................................11-48 Cross Instance Data Transfer Security...........................................................................................................11-50 Global Consolidation System Parallel Consolidation....................................................................................11-51 Creating Eliminating Entries .........................................................................................................................11-52 Formula-Based Eliminations .........................................................................................................................11-54 Automatic Intercompany Eliminations Program ...........................................................................................11-55 Defining an Elimination Set ..........................................................................................................................11-56 Source and Target Account Examples...........................................................................................................11-58 Balancing Options for Eliminations ..............................................................................................................11-59 Allow Out of Balance Journal .......................................................................................................................11-61 Balance with Net Difference .........................................................................................................................11-62 Consolidated Balances Inquiry ......................................................................................................................11-63 63 Performing Consolidated Balances Inquiry ..................................................................................................11-65 11-65 Running Consolidation Reports.....................................................................................................................11-66 .......11-66 ......11-66 Creating Custom Consolidation Reports .......................................................................................................11-68 .............11-68 Summary........................................................................................................................................................11-69 ....................11-69 ...................11-69

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Period Close .....................................................................................................................................................12-1 ..............................1 .............................1 Period Close...................................................................................................................................................12-3 .............................. .............................. Objectives ......................................................................................................................................................12-4 ........... ............................... ..................... The Accounting Cycle ...................................................................................................................................12-5 ............................... ............................... Period Close Checklist...................................................................................................................................12-6 .............................. ............................. Overview of Importing Journal Entries .........................................................................................................12-7 ............................... Journal Import Verification Process ..............................................................................................................12-9 ............................. ............................ Posting Journals.............................................................................................................................................12-11 ................................ ............................... Reconciling Subledger Data ..........................................................................................................................12-13 .............................. ................................... ..... Close the Subledgers .....................................................................................................................................12-14 ................................ ............................... ................. P2P Close Processes ......................................................................................................................................12-16 ............................. ..................................................... ........................ Overview of the P2P Period Close ................................................................................................................12-18 ............................................................ Reconcile AP to GL.......................................................................................................................................12-19 .............................. ............................................................ .............................. Reports...........................................................................................................................................................12-20 ................................ ............................... ................................ ............................... Reports (continued) .......................................................................................................................................12-22 ............................... ............................... O2C Period Close Process sss ............................ .............................................................................................................................12-25 .............................. Overview of O2C Period riod Close Process ........................................................................................................12-26 ........................... .......................... Transferring Inventory vent entory ory and Receivab Re Receivables........................................................................................................12-27 ceivab .................. O2C Standard rd d Reports .............. ...................................................................................................................................12-29 ....... Reconciling ling Receivables Tr Transactions, Receipts, and Customer Balances ...................................................12-30 Mapping pping Receivables Transactions T to General Ledger Categories ...............................................................12-32 GL Reconciliation Report R for Cash Management .........................................................................................12-33 Project Close Close Cycle C .......................................................................................................................................12-34 Overview oof Project Closing Cycles..............................................................................................................12-35 Closing a PA Period ......................................................................................................................................12-38 Period-Closing Exception Reports.................................................................................................................12-39 Per

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Period Rates...................................................................................................................................................12-40 Running Revaluation .....................................................................................................................................12-41 Revaluation Example.....................................................................................................................................12-42 Accounting Period Status ..............................................................................................................................12-43 Balance Sheet Close ......................................................................................................................................12-44 Income Statement Close ................................................................................................................................12-46 Historical Rates .............................................................................................................................................12-48 Foreign Currency Translation........................................................................................................................12-49 Overview of Consolidations ..........................................................................................................................12-50 Global Consolidation System (GCS) Features and Benefits .........................................................................12-52 Consolidating Ledgers...................................................................................................................................12-54 Reporting Options .........................................................................................................................................12-55 Performing Account Inquiry..........................................................................................................................12-56 Helpful Closing Reports ................................................................................................................................12-57 Summary........................................................................................................................................................12-59 Financial Reporting.........................................................................................................................................13-1 Financial Reporting .......................................................................................................................................13-3 Objectives ......................................................................................................................................................13-4 Objectives (continued)...................................................................................................................................13-5 Reporting Options .........................................................................................................................................13-6 Online Inquiry ...............................................................................................................................................13-7 When to Use Online Inquiry..........................................................................................................................13-9 Standard Reports and Listings .......................................................................................................................13-10 When to Use Standard Reports......................................................................................................................13-11 Financial Statement Generator Features ........................................................................................................13-12 FSG Hierarchical Security.............................................................................................................................13-14 3-14 Defining Row Sets.........................................................................................................................................13-15 ....13-15 ...13-15 Define Column Sets.......................................................................................................................................13-16 ..........13-16 When to Use FSG Reports.............................................................................................................................13-17 .................13-17 ................13-17 Using Ledger Sets in FSG Reports ................................................................................................................13-18 ........................13-1 ........................13-1 XML Publisher and Templates......................................................................................................................13-20 ............. .............................. .................. Publishing FSG Reports with XML Publisher...............................................................................................13-21 ........................... When To Use Report Manager ......................................................................................................................13-23 ........................... ............................... ..... E-Business Intelligence .................................................................................................................................13-25 .............................. .............................. When to Use E-Business Intelligence............................................................................................................13-27 ................................ ............................... Oracle Discoverer ..........................................................................................................................................13-28 ............................. When to Use Oracle Discoverer ....................................................................................................................13-29 ............................. ............................ Preparing Your FSG Report ..........................................................................................................................13-30 ............................... Building Basic Reports..................................................................................................................................13-31 ............................... ....... ...... Financial Statement Generator ......................................................................................................................13-32 ............................................. Steps for FSG Financial Reports ...................................................................................................................13-34 ............................... .............................. ........................... .......................... Defining Row Sets.........................................................................................................................................13-35 ............................................................ Assigning Accounts.......................................................................................................................................13-37 .............................. ........................................................... ............................. Defining Calculations in Row Sets................................................................................................................13-39 ts............................ s.......................................................... Reviewing Your Row Set Definitions finitions ................ ...........................................................................................................13-40 .............................. ............................. Defining Ad Hoc Reportss ............................ ..............................................................................................................................13-41 ............................. Defining Column Sets ets ts ........................... ...................................................................................................................................13-42 ........................... .......................... Applying Column mn Set Set Relative Head Headings......................................................................................................13-44 .................. Standard Column lumn umn Sets .............. ...................................................................................................................................13-46 ........ Reviewing ing ng Your Colu Column mn Se Set Definitions......................................................................................................13-47 Row Set and Column Column O Overrides ....................................................................................................................13-48 Defining and Requesting Reque Financial Reports ..................................................................................................13-50 Handling Round Rounding Problems........................................................................................................................13-52 Specifying Control Values.............................................................................................................................13-53 Defining Content Sets....................................................................................................................................13-55 Definin Selecting Display Options .............................................................................................................................13-56 Sel

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Reviewing Your Content Set Definitions ......................................................................................................13-58 Defining Row Orders.....................................................................................................................................13-59 Ranking Methods...........................................................................................................................................13-60 Order by Ranking - Display Description .......................................................................................................13-61 Order by Description - Display Description ..................................................................................................13-62 Order by Value - Display Value ....................................................................................................................13-63 Order by Value - Display Description ...........................................................................................................13-64 Reviewing Your Row Order Detail Listing Report .......................................................................................13-65 Copying Reports and Components ................................................................................................................13-66 FSG Report Prerequisites ..............................................................................................................................13-67 Enabling FSG Security ..................................................................................................................................13-68 Run FSG Reports from Standard Request Submission..................................................................................13-69 Downloading Financial Reports ....................................................................................................................13-70 Running Financial Report Sets ......................................................................................................................13-71 Different Output Options for FSG Using XML Publisher.............................................................................13-72 FSG Tips and Techniques..............................................................................................................................13-73 Setting FSG Options for General Ledger ......................................................................................................13-74 Working with the Attribute Set Window.......................................................................................................13-76 Modifying Attribute Sets ...............................................................................................................................13-77 Defining Summary Details ............................................................................................................................13-79 Summary........................................................................................................................................................13-80 Summary (continued) ....................................................................................................................................13-81

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Preface Profile Prerequisites •

Navigating Oracle Applications

How This Course Is Organized R12 Oracle General Ledger Management Fundamentals, Edition 1.0 is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations and written practice sessions reinforce the concepts and skills introduced.

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Related Publications Oracle Publications •

System release bulletins

•

Installation and user’s guides

•

Read-me files

•

International Oracle User’s Group (IOUG) articles

•

Oracle Magazine

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Typographic Conventions Typographic Conventions in Text Convention Bold italic Caps and lowercase Courier new, case sensitive (default is lowercase)

Initial cap

Element Glossary term (if there is a glossary) Buttons, check boxes, triggers, windows Code output, directory names, filenames, passwords, pathnames, URLs, user input, usernames

Arrow Brackets Commas

Graphics labels (unless the term is a proper noun) Emphasized words and phrases, titles of books and courses, variables Interface elements with long names that have only initial caps; lesson and chapter titles in crossreferences SQL column names, commands, functions, schemas, s, table names Menu paths hs Key names Key sequences

Plus signss

Key combi combinations

Example The algorithm inserts the new key. Click the Executable button. Select the Can’t Delete Card check box. Assign a When-Validate-Item trigger to the ORD block. Open the Master Schedule window. Code output: debug.set (‘I”, 300); Directory: bin (DOS), $FMHOME (UNIX) Filename: Locate the init.ora file. Password: User tiger as your password. Pathname: Open c:\my_docs\projects URL: Go to http://www.oracle.com User input: Enter 300 Username: Log on as scott Customer address (but Oracle Payables)

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Quotation marks

Uppercase

Do not save changes to the database. For further information, see Oracle7 Server SQL Language Reference Manual. here user_idd is the Enter [email protected], where name of the user. Select “Include a reusable module ule le component” and click Finish. This subject is covered inn Unit II, Lesson 3, 3 “Working with Objects.”

Use the SELECT com command mmand to view information stored in the LAST_NAME column of the hee EMP table.

Selec Select ect File > Save. Press P [Enter]. Press ress and rele release keys one at a time: ernat [F], [D] ernat [Alternate], Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

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Typographic Conventions in Code Convention Caps and lowercase Lowercase

Element Oracle Forms triggers Column names, table names

Example When-Validate-Item

Passwords

DROP USER scott IDENTIFIED BY tiger; OG_ACTIVATE_LAYER (OG_GET_LAYER (‘prod_pie_layer’))

SELECT last_name FROM s_emp;

PL/SQL objects

Lowercase italic Uppercase

Syntax variables

CREATE ROLE role

SQL commands and SELECT userid FROM emp; functions

Typographic Conventions in Oracle Application Navigation Paths This course uses simplified navigation paths, such as the following example, to direct you through Oracle Applications.

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(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve This simplified path translates to the following:

1.

(N) From the Navigator window, select Invoice then Entry then Invoice nvoice Batches Summary.

2.

(M) From the menu, select Query then Find.

3.

(B) Click the Approve button.

Notations:

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(N) = Navigator (M) = Menu (T) = Tab utton (B) = Button

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R12 Oracle General Ledger Management Fundamentals Table of Contents xiv

Typographical Conventions in Oracle Application Help System Paths This course uses a “navigation path” convention to represent actions you perform to find pertinent information in the Oracle Applications Help System. The following help navigation path, for example— (Help) General Ledger > Journals > Enter Journals —represents the following sequence of actions: 1.

In the navigation frame of the help system window, expand the General Ledger entry.

2.

Under the General Ledger entry, expand Journals.

3.

Under Journals, select Enter Journals.

4.

Review the Enter Journals topic that appears in the document frame of the help system window.

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Oracle General Ledger Process

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Chapter 1

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Oracle General Ledger Process Chapter 1 - Page 1

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Oracle General Ledger Process Chapter 1 - Page 2

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Oracle General Ledger Process

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Oracle General Ledger Process Chapter 1 - Page 3

Objectives

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Oracle General Ledger Process Chapter 1 - Page 4

Oracle General Ledger Overview

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Oracle General Ledger Overview y of accounting information. in The Oracle General Ledger is the central repository The main purpose of a general ledger system is to record financial activity of a company and to produce eople inside andd outside outs the organization make financial and management reports to help people decisions.

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Oracle General Ledger Process Chapter 1 - Page 5

General Ledger Overview

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General Ledger Overview Oracle General Ledger is a comprehensive financiall management sol solution that enables you to: ion on • Record and Review Accounting Information ls to record reco actual or budget reco • Import data from subsidiary ledgers, or enter journals r. transactions directly into Oracle General Ledger. mbrances through the purchase process and to mbrances • Enter encumbrance journalss to track encumb encumbrances ounts. unts. control spending againstt budgeted amoun amounts. alances online orr through t reports • Review account balances reports. ect, and adjust ac ccounting inform • Analyze, correct, accounting information. umbrance information. • Correct actual, budget, an and encumbrance value and translate balances denominated no • Revalue in foreign currencies. bal • Consolidate balances from multiple ledgers. A • Analyze Accounting Information Integr Oracle General Ledger with Oracle Enterprise Planning and Budgeting, Oracle • Integrate D Discoverer, or Web Applications Desktop Integrator to simplify the budgeting and forecasting process.

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Oracle General Ledger Process Chapter 1 - Page 6

Functions and Features

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Functions and Features Information Access Ledger through online o • Access information stored in the General Ledger inquiries or reporting and ryy off yo analysis tools. Oracle General Ledger is the repository your organization's financial information. Financial Controls control access to specific areas and a functions of General Ledger. • Use security features to control Data Collection rom Oracle subledgers subleedgers and non-Oracle non-O • Collect data from feeder systems. porting and Analy Financial Reporting Analysis ect from a variety of Standard Re • Select Reports and Listings. Financi Statement Generator to build customized reports with reusable report • Use the Financial objects. • Use Web W ADI (Web Applications Desktop Integrator) Report Manager to build reports an and drilldown on balances within a spreadsheet environment.

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Oracle General Ledger Process Chapter 1 - Page 7

General Ledger Accounting Cycle

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General Ledger Accounting Cycle 1. Open period 2. Create/reverse journal entries 3. Post 4. Review 5. Revalue 6. Translate 7. Consolidate ect balances 8. Review/correct ccounting counting reports 9. Run accounting 10. Close accounting period

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Oracle General Ledger Process Chapter 1 - Page 8

Critical Implementation Issues

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Critical Implementation Issues Shared information • Oracle Applications share information to avoid redundancy redundancy, minimize setup time, and keep systems synchronized. y Oracle Applica cations. • Identify the key entities shared by Applications. quired by multiple ple applications. • Define setup parameters required Information Flows ns once and pass sss th them em to the nex • Record transactions next business process. interfaces to import im • Use Oracle Applications open interfaces transactions. aces ces Open interfaces ansfer data within Oracle Applications. • Transfer transact • Import transactions from other applications into Oracle Applications. Sy Non-Oracle Systems Obta input from all business areas and applications that are affected by the • Obtain i implementation.

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Oracle General Ledger Process Chapter 1 - Page 9

Oracle General Ledger Integrates with …

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Oracle General Ledger Integrates with … man an Resource Man Here is a list of just some of the Financial and Human Management products that integrate with General Ledger. ments, realized realized gain gai ain and loss on foreign currency, and • Oracle Payables sends invoices, payments, invoice price variance to GL. voices, payments, ts, adjustments, ddebit memos, credit memos, • Oracle Receivables sends invoices, ealized gain andd loss l cash, chargebacks, and realized on foreign currency to GL. cons nstruction inn process proc asset additions, cost adjustments, • Oracle Assets sendss capital and construction ments, depreciatio deprecia tio and reclassifications tion, reclassi transfers, retirements, depreciation, to GL. rchasing sends ac als or receip • Oracle Purchasing accruals receipts not invoiced, purchase orders, final closes, ncellations to GL and cancellations GL. • Oracle Projects sen sends cost distribution of labor and non-labor costs, and project revenue to GL. Tr • Oracle Treasury sends revaluation and accrual entries to GL. Orac Property Manager sends revenues and expenses related to real estate to GL. • Oracle

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Oracle General Ledger Process Chapter 1 - Page 10

• Oracle Lease Management sends accounting distributions related to leases, such as bookings of contracts, accruals, asset dispositions, terminations, and adjustments for multi-GAAP contracts to GL. • Oracle HR shares employee information with GL. • Oracle Payroll sends salary, deductions, and tax information to GL.

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Oracle General Ledger Integrates with …

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Oracle General Ledger Integrates with … plications, Inventory Invent • In terms of manufacturing and public sector applications, sends cycle counts, ransactions, deliv physical inventory adjustments, receiving transactions, delivery transactions, ues, internal internal requisitions, requ quisitio sub-inventory transfers, intercompany transfers, sales order issues, and Cost of Goods Sold (COGS) too GL. al issues orr backf ckflush kflush from WIP to GL, as well as • Work In Process sends material backflush ource urce and overhead overhea overhea ead transactions, and cost updates. completions, returns, resource bution sends salar ary costs to GL. • Oracle Labor Distribution salary ds grant amounts received to build a project as well as • Oracle Grants Accounting sends enue to GL. unbilled revenue sends budget and forecast amounts to GL. • Oraclee Public Sector Bu Budgeting sends

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Oracle General Ledger Process Chapter 1 - Page 12

Also Integrates with …

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Also Integrates with … rprise prise Planning an • General Ledger's integration with Oracle Enterprise and Budgeting (EPB) allows get, forecast, and report on information stored you to easily identify, analyze, model, budget, d repo r in your general ledger. Use Oracle GL to maintain and report on account balances Financia ial Analyzer to analyze financial data, ial throughout the accounting period, and use Financial nces, after closing ing ng the pe period. riod. Y such as actual and budget balances, You can automatically dat ata, as well as functional, fun transfer actual, budget, or encumbrance data, statistical, and foreign neral eral Ledger to Financial Fi Financial Analyzer. Analyze From Financial Analyzer, you entered data from General sticated budgetin ing and modeling mode ling make changes to budgets and write can perform sophisticated budgeting modeling, ata to a new budget budg dget in GL or to several s back budget data budget versions for comparative dri directly rectly from EPB balances to balances and transactions in rectly reporting. You can also drill vides EPB users with immediate and direct access to GL Oraclee General Ledger Ledger. This provides ata without having havin to run reports or account inquiries in GL. data • Oracle Financ Financial Services Applications (OFSA) is a product suite that helps financial in services institutions assess enterprise performance. This integration allows the transfer of Gener Ledger balances to OFSA to reconcile OFSA instrument tables, calculate transfer General pr pricing of non-interest balance sheet items, or perform allocations. The results of OFSA

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Oracle General Ledger Process Chapter 1 - Page 13

allocation and transfer pricing results can then be transferred back to GL for posting and reporting. • The integration with Oracle Daily Business Intelligence (DBI) allows you to get a daily snapshot of your company's financial picture through its E-Business Suite Portals. The over 200 pre-built Portals provide every user in the enterprise with the right information that they need, about every aspect of their business. The information spans across multiple applications to give you real-time information all in one place. • The integration with Oracle Activity Based Management (OABM) allows you to perform complex analysis on costs that are collected in General Ledger in a separate analysis environment—apart from your GL data. OABM is optimized to support multi-layer complex cost assignment rules, activity hierarchies, and complex product and service definitions in terms of activities with complete activity definitions.

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Oracle General Ledger Process Chapter 1 - Page 14

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Integrating with Subledgers

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Integrating with Subledgers proce Transferring information from Oracle subledgers is a two-step process: taable from the su • Data is pushed into the GL_INTERFACE table subledger using a transfer program. formation from m the th he interface table ta to create valid, postable • Then Journal Import pulls the information edger. dger. journal entries in General Ledger. er program program from m Oracle O subledge such as Oracle Payables or When you initiate the transfer subledgers, u can choose to al also submit submit the Jo Oracle Receivables, you Journal Import process. If you do not al Import from th subledger, you must run Journal Import separately in choose to run Journal the subledger, ournals windo General Ledger,, using the Import Journals window, in order to create postable journal entries.

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Importing to General Ledger from Non-Oracle Applications

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plications Importing to General Ledger from Non-Oracle Applications Journal Import rt budget, actual, and encumbrance data from • Use Journal Import to automatically import Loa oader script s your non-Oracle applications. You cann create SQL Loader to load the data into the interface. d reserve them for fo your imported transactions. • You can also check funds and ktop top Integrator (Web (W Web ADI) • Web Applications Desktop et and upload to G • You can enter dataa in a spreadsheet General Ledger: gets. - Prepare and analyze budge budgets. pare functional an eign journ - Prepare and foreign journal entries.

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Overview of Accounting Setup Manager

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Oracle General Ledger Process Chapter 1 - Page 17

Foreign Currency Concepts

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Foreign Currency Concepts Conversion nsactions that are immediately converted at the nsactions • Conversion refers to foreign currency transactions which th time of entry to the ledger currency off the ledger in wh the transaction takes place. Revaluation y or asset account nts that may be m • Revaluation adjusts liability accounts materially understated or fluctuation in tthe exchange rate between the time overstated at the end of a period due to a fluctuation e of the period the transaction was entered and thee end period. Translation ac of restating an entire ledger or balances for a company from • Translationn refers to the act dger currency to a foreign currency. urren the ledger

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Oracle General Ledger Process Chapter 1 - Page 18

Multiple Currency Support

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Multiple Currency Support ou specify the reporting rep Reporting Currencies are integrated with ledgers. You currency as a part of the ledger with which you are working. an maintain maintain additional additi ditional itional currency representations at • Reporting currency is flexible. You can three different levels: - Balance level - Journal level el - Subledger level translaated balances. balances. Every E • Balance level maintains translated time you run translation in General alances are stored in a balance level le reporting currency. Ledger, balances nal level, is a curr ent • Journal currency representation of only your GL journals and balances. Every time ime you post a journal jo in GL, the journal will be converted to one or more journal level reporting curr currencies. • Subledg Subledger level is a complete currency representation of your subledger transactions, GL journ journals entries and balances.

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Every time you enter a subledger transaction or enter and post a journal directly in GL, the same transaction and journal will be converted to one or more associated subledger level reporting currencies. Reporting Currencies are not the same as secondary ledgers. Looking at the 4 C's that define a ledger, we have a chart of accounts, calendar, accounting method, and currency. If you only need multiple currencies to support your reporting requirements, use reporting currencies. If you need to account for your data using different calendars, charts of accounts, accounting methods in addition to currency, use a secondary ledger.

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Budgeting

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Budgeting Budgeting in Oracle General Ledger (GL) • Create an unlimited number of budgets or forecasts. • Control user access to budgets. various us levels of your you company's organization • Create budget organizations to mirror the various infor formation. ormation. and to control user access too the budget information. udgets. • Create master-detail budgets. Desk sktop Integrator (Web ( Budgeting with Web Applications Desktop ADI) familiarity of a spreadsheet, s • Enter budgett amounts in the familiarity then upload your budget data to General Ledger. wnloads both budget bud or actual amounts am • Downloads and use to calculating new budget amounts, th new budget amounts into Oracle General Ledger. then be upload the a use Oracle Planning and Budgeting to update budget balances in General Note: You can also Ledger. For more information, refer to the Oracle Planning and Budgeting User’s Guide.

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Overview of Enterprise Planning and Budgeting (EPB)

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Overview of Enterprise Planning and Budgeting What is Enterprise Planning and Budgeting (EPB)? lti-dimensional an • An application built on the integrated multi-dimensional and relational technology in Oracle10g geting, forecastin forecas tin ting, ing, reporting, monitoring, and analysis • An application for planning, budgeting, forecasting, da modeling an • An application that providess sophisticated data and multi-dimensional analysis • A keystone of Oracle's CPM initiative ilored lored for customer's custome mer's own busine • An application tailored business processes

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Reporting and Analysis

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Reporting and Analysis Online Account and Transaction Analysis: entries to their ssource. For example, you can • Drilldown to account balances and journall entries ntry try to the original nal transaction tran drill down from a Payables journal entry in Oracle Payables. Standard Reports and Listings: vides over 70 diffe diff fferent standard rreports and listings to help you • Oracle General Ledger provides different financial informa mation. ation. view financial and non-financial information. enerator nerator reports: Financial Statement Generator Gener erator rator (FSG) is a powerful tool that allows you to create • The Financiall Statement Generator nancial statements statement without thout programming. progr custom financial Manager Web ADII Report Manager: Man • With Report Manager, you can define reports graphically in Excel, then upload the report definitions to General Ledger as Financial Statement Generator (FSG) report objects. You can also download existing FSG reports, modify them in Report Wizard, then save the mod modified definition to General Ledger. You can select amounts from spreadsheet-based

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FSG reports and drill into the underlying financial information within Oracle Applications. Oracle Enterprise Planning and Budgeting: • Use Oracle Enterprise Planning and Budgeting, Oracle's On Line Analytical Processing (OLAP) application, to perform in depth analysis, modeling, budgeting, reporting, and forecasting functions using General Ledger data without additional data entry.

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Standard Reports and Listings

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Standard Reports and Listings ports and listings to meet your business Oracle General Ledger provides several types of reports nd listings is also available online. needs. All of the information in these reports and on, budget information, inform rmation chart of accounts listing, and You can obtain account analysis information, omization. many other types of data without customization. eports provide the th following following fun Oracle General Ledger standard reports functionality: ge generated and printed prin in the background while you • Request reports online. Your report is generated continue to work. bmit mit reports into report r • Group and submit sets to sav save time. r larly scheduled schedu intervals. • Schedule reports to run at regularly

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Financial Statement Generator Reports (FSG)

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Financial Statement Generator Reports (FSG) come statements aand balance sheets, online You can define custom financial reports, such as income yo report. You can control with complete control over the rows, columns, and content off your s, format, format, and cal alcula account assignments, headings, descriptions, calculations in addition to the actual ts make buildingg reports quick qu and easy. You can copy content. The reusable report components t, make minor edits, ed then apply tthe report component to a a report component from one report, reate a new report reate repor ort from scratch. new report without having to create

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Summary

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Accounting Setup Manager Chapter 2

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Accounting Setup Manager Chapter 2 - Page 1

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Accounting Setup Manager

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Accounting Setup Manager Chapter 2 - Page 3

Objectives

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Accounting Setup Manager Chapter 2 - Page 4

Accounting Setups

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Accounting Setups An accounting setup defines the accounting context for one or more legal entities or a business need if legal entities are not involved. everal factors, such su as Defining an accounting setup is based on several as: • legal environment intained ntained in the same sam ame primary ledg • number of legal entities maintained ledger • business needs ssing needs • transaction processing ould uld be assigned assigned to to accounting setups se Legal entities should to maintain a legal entity context for nd use Oracle fin subledge that require a legal entity context. No legal transactions and financiall subledgers hould be assigned to accounting ng setups if there are business needs that do no require a entities should legal entity context. ar involved, the general rule is to define a separate accounting setup for each If legal entities are legal entity oor group of legal entities that require their own primary ledger. In other words, if legal entities enti require any one of the following attributes to be different from other legal entities, a different diff primary ledger is required, and therefore a different accounting setup is required:

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• Chart of Accounts: One legal entity requires a six-segment chart of accounts and another requires only a four-segment chart of accounts. • Accounting Calendar: One legal entity uses a 4-4-5 calendar and another uses a monthly calendar; or one legal entity has a different fiscal year end than another. • Primary Currency: Legal entities operate in different countries requiring them to use their own local currencies. • Subledger Accounting Method: Legal entities operate in different countries or industries that have different accounting standards. • Ledger Processing Options: Legal entities operate in different industries, such as retail and financial services, and require different ledger processing options, such as maintaining average daily balances for legal entities in the financial services industry.

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Ledger Processing Options

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Ledger Processing Options ounting unting setups are created because each Based on the above information, four different accounting he two U.S. legal legal entities (U.S. East and U.S. legal entity requires its own primary ledger. If the ions, they they can sha share hare tthe same primary ledger and be West) share the same ledger processing options, included in the same accounting setup. fined at the ledger ledger ger level and refer to the following options Ledger Processing Options are defined p for tha that control how journals and transactions aree processed that ledger: eriod • First Ever Opened Period re Enterable Peri riods • Number of Future Periods • Retained Earnings Account edger dger Accounting Options, such uch aas the subledger accounting method, journal • Subledger escription language, langua entered currency balancing account, cash basis accounting, and the description currenc balancing account ledger currency • Option to track balances using a secondary segment Susp • Suspense Account • Rounding Differences Tracking Account

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Accounting Setup Manager Chapter 2 - Page 7

• Intracompany Balancing option • Journal Approval • Journal Entry Tax • Journal Reversal Criteria Set • Default Period End Rate Type • Default Period Average Rate Type • Cumulative Translation Adjustment Account • Journal Reconciliation • Budgetary Control • Reserve for Encumbrance Account • Average Balance Processing • Average Balance Consolidation • Net Income Account • Transaction Calendar If there are legal entities that require any one of the above ledger processing options to be different, then define a separate primary ledger for each legal entity and therefore, a new accounting setup.

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Secondary Ledgers

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Secondary Ledgers o each primary le Assign an unlimited number of secondary ledgers to ledger of an accounting fol setup. Each secondary ledger can be maintained at one of the following data conversion levels: maintains subledger subled edger journals, jo • The subledger level secondary ledger maintains general ledger journal onal accounting accounting g representation. representatio r entries, and balances in the additional This data conversion counting and the the General Ledger Posting program to create level uses both Subledger Accounting primary y and secondary ledgers simultaneously. the necessary journals in both the primary urnal entries entries from subledger transactions if the Subledger Accountingg creates the jour journal ates tes with Subledge dger ger Accounting. Accounting. General Ledger Posting creates the subledger integrates Subledger ess for all other transactions transactions that that do d no integrate with Subledger Accounting, journal entries s. includingg manual journal eentries. sec • The journal level secondary ledgerr m maintains primary ledger journal entries and balances a in an additional accounting representation. This type of secondary ledger is maintained using the Gen General Ledger Posting program. Every time a journal is posted in the primary th same journal can be automatically replicated and maintained in the secondary ledger, the ledge for those journal sources and categories that are set up for this behavior. ledger

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Accounting Setup Manager Chapter 2 - Page 9

• The balance level secondary ledger maintains primary ledger account balances in another accounting representation. This type of secondary ledger requires Oracle General Ledger Consolidation to transfer primary ledger balances to this secondary ledger. • The adjustments only secondary ledger level is an incomplete accounting representation that holds only adjustments. The adjustments can be manual adjustments or automated adjustments from Subledger Accounting. This type of ledger must share the same chart of accounts, accounting calendar/period type combination, and currency as the associated primary ledger. To obtain a complete secondary accounting representation that includes both the transactional data and the adjustments, use ledger sets to combine the adjustments-only secondary ledger with the primary ledger when running reports.

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Reporting Currencies

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Reporting Currencies n of the primary or secondary ledgers, assign If you only need a different currency representation ledgers, reporting currencies must share the reporting currencies to them. Unlike secondary ledgers, r/period type combination, r/period com ombin same chart of accounts, accounting calendar/period subledger accounting le method, and ledger processing options as their source ledger. rting currencies currenciess iinstead of secon As a general rule, always use reporting secondary ledgers if you only representation n that t differs in currency cu need to maintain an accountingg representation alone. oth primary and ssecondary ledgers. Reporting You can assign reporting currencies to bot both ined ned at one of th he following curr currencies are maintained the currency conversion levels: ger level reporting reportin currency maintains main • The subledger a complete currency representation of ubledger bledger journals, Generall Ledge your subledger Ledger journals entries, and balances. When using the bledger ledger level reporting repo subledger currency, define currency conversion rules. These rules provide instructions on hhow to convert subledger and general ledger data to one or more subledger reporti currencies. Subledger level reporting currencies are maintained using both level reporting Subledg Accounting and the General Ledger Posting program to create the necessary Subledger subl subledger journals and General Ledger journals in both the primary and secondary ledgers simultaneously. Subledger Accounting creates the journal entries from subledger

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Accounting Setup Manager Chapter 2 - Page 11

transactions if the subledger integrates with Subledger Accounting. General Ledger Posting creates the journal entries for all other transactions that do not integrate with Subledger Accounting, including manual journal entries. • The journal level reporting currency maintains General Ledger journal entries and balances in another currency representation. Journal level reporting currencies are maintained using the General Ledger Posting program. Every time a journal is posted in the source ledger, such as the primary or secondary ledger, the journal is automatically converted to the respective currency of the journal level reporting currency. • The balance level reporting currency only maintains balances in another currency. It maintains the translated balances of the source ledger. Every time general ledger translation is run in the source ledger, such as the primary or secondary ledger, the translated balances are reflected in the balance level reporting currency.

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Accounting Setup Considerations

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Accounting Setup Considerations err the number of legal entities that you want Before creating accounting setups, carefully consider to assign to each accounting setup. g accou ac aaccounting cou Associate each accounting setup with one of the following environment types: gal Entity • Accounting Setups with One Legal ultiple Legal Entities Entit tities • Accounting Setups with Multiple thh No Legal Entities Entiti tities ities • Accounting Setups with

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Accounting Setup Manager Chapter 2 - Page 13

Accounting Setups with One Legal Entity

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Accounting Setups with One Legal Entity unting nting setup type iif your legal entities meet You should only assign one legal entity to an accounting any one of the following criteria: ative requirement nts that require the legal entity to • Operate in a country with strict legislative requirements rate from other legal rate le entities maintain its accounting data separate ory rules that requ re qu a separate le quire • Have specific legal or statutory require ledger for the legal entity ry ledger attribute utes from other le • Require different primary attributes legal entities. For example, the legal wing ledger attrib entity requires any one of the follow following attributes to be different from other legal entities: egal entity re - Chart of Accounts: On One legal requires a 10-segment chart of accounts and nother requires a 6-segment nt char another chart of accounts. C - Accounting Calendar: One legal entity requires a weekly calendar and another requires a monthly calendar. - Prim Primary Currency: There are legal entities and companies that require different primary currencies to act as their main record-keeping currency.

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- Subledger Accounting Method: One legal entity uses the accrual method of accounting and another uses the cash basis of accounting. - Ledger Processing Options: One legal entity wants to translate revenue and expense accounts using period-end balances while another legal entity wants to use year-todate balances. • Need autonomous document sequencing of transactions and journals for each legal entity • Need to open and close periods autonomously for each legal entity • Have tax requirements that are specific for a legal entity

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Accounting Setups with Multiple Legal Entities

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Accounting Setups with Multiple Legal Entities tyy it means that multiple m If an accounting setup has more than one legal entity legal entities can share the same primary ledger attributes, such ass the same chart of accounts, accounting y,, subledger accou ountin method, and ledger calendar/period type combination, currency, accounting processing options. hee same accountin ting ing setup if all of the legal entities assigned to Assign multiple legal entities to the accounting g criteria: c the accounting setup meet all of the following ltiple tiple legal legal entitie • operate in a country that allows multip multiple entities to share the same primary ledger utes, such as thee same chart chart of aaccounts, calendar, primary currency, and ledger attributes, ccounting counting method subledger accounting method, document seq sequence, and accounting options eed to have diffe dger pro • do not need different ledger processing options for each legal entity. For example, al entities can use the same general ledger translation rule and cumulative translation legal adjustment acco accounts to translate balances. • do not need to open and close periods independently by legal entity • do not require autonomous document sequencing for a legal entity • ddo not have tax requirements that are specific for a legal entity

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Accounting Setups with No Legal Entities

y m e d a c A e l c a r O ly & On l a e n r s e t U n I e l c a r O Accounting Setups with No Legal Entities signed can be used use for multiple purposes Accounting setups that do not have legal entities assigned setu with no legal entity assigned based on business needs. For example, define ann accounting setup ransaction proces essing or use it to supplement the essing if a legal entity context is not required for transaction processing, ng setups that hav ave legal en accounting contained in other accounting have entities assigned. th no legal entitie ties ies for the follow You can use accounting setups with entities following business needs: tain ain transactions transactions ns using a legal en • You do not need to maintain entity context. parate arate instance instance of General Ledger as a standalone application and do • You are using a separate grate with Oracle Oracle financial suble not plan to integrate subledgers that require a legal entity context. ot integrating with Oracle racle financi • You are not financial subledgers but are using Subledger unting nting to integrate Oracle Genera Accounting General Ledger with non-Oracle systems. ou want to maintain maint an additional accounting setup for management reporting purposes • You consolidatio purposes. or consolidation

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Accounting Setup Manager Chapter 2 - Page 17

Designing the Chart of Accounts

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Designing the Chart of Accounts bility to identify identifffyy legal l entities during If your company uses legal entities and wants the ability transaction processing, designate the balancing segment of the ch chart of accounts as the legal ou to identify tran ansact entity or company segment. This enables you transactions per legal entity and take nting features ava vailable, suc full advantage of the legal entity accounting available, such as intercompany accounting. ities ties that use different diffe ffe ferent rent charts of aaccounts, it is recommended that If you have multiple legal entities alue sets that you ouu define for the bbalancing segment. This allows you you limit the number of value uee set across multiple mult ultiple ltiple charts charts of accounts ac to share the same value and assign unique balancing orr each legal entityy thatt is consist segment values for consistent across charts of account.

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Accounting Setup Manager Chapter 2 - Page 18

Summary

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Accounting Setup Manager Chapter 2 - Page 19

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Ledger Chapter 3

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Ledger Chapter 3 - Page 1

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Ledger

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Ledger Chapter 3 - Page 3

Objectives

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Objectives

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Ledgers Defined

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Ledgers Defined "Ledger." The Ledger L A fundamental concept in Oracle Applications is thee "Ledger." represents an hat is accountable in a self-contained way. accounting representation for an organization that nies in a common legal environment, A ledger owner might be a legal entity, a group of compani companies ntity but wi with th leg egal entity att a substantial operation within a legal entity legal attributes, or a foreign branch. ate te and manage manage Organizational O M Ledgers are also used to consolidate Models in reporting. In a pure accounts for itself itse tself in a ledger." implementation, "a legal entityy accounts ed ledger accounting accoun unting for the accounting acco A ledger provides balanced entity and serves as the al information. Consequently, Consequently Co , it iis the principal source of information for repository of financial plications in the O racle E-Busine the analytical applications Oracle E-Business Suite. nces have meanin y assert that the balance on an account at a given date has a Ledger balances meaning. They particu currency and is properly calculated. This implies a consistent specific value in a particular lication of what we w sometimes call "the 4 Cs": Chart of Accounts (COA), Calendar, application Currency, and ac accounting Convention. The COA provides the account code; Calendar the date accounti period; Currency the transaction currency; and Convention the accounting rules and accounting regu and regulations for the company/country.

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Ledger Chapter 3 - Page 6

Accounting Setup Manager Overview

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Account Setup Manager Overview ing ng setup for the ffollowing: Central place for defining and maintaining accounting • Legal Entities • Operating Units • Ledgers dgers • Primary and Secondary Ledgers • Reporting Currencies unting • Subledger Accounting ntra-company Bal ancing • Inter- and Intra-company Balancing ncing • Sequencing ccounting and Reporting Re • Accounting Sequencing counting Setup Manager Concepts Accounting Ledg Primary Ledgers Mai record-keeping ledger • Main, • Defined by 4Cs:

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Ledger Chapter 3 - Page 7

- Chart of accounts - Accounting calendar - Primary currency - Subledger Accounting Method Secondary Ledgers • Optional, additional accounting representations of your primary ledger • Can differ in one or more of the following from the primary ledger: - Chart of accounts - Accounting calendar - Primary currency - Subledger Accounting Method By assigning two different subledger accounting methods to each ledger, you can use Subledger Accounting (SLA) rules to simultaneously account for the same legal entity transaction in both ledgers to meet both fiscal and corporate requirements.

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Secondary Ledgers

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Secondary Ledgers Business Reasons ith different countries’ coun • For global companies that must comply with legal requirements consolida dation or management reporting • Useful for supplementary purposes, such as consolidation picttture ure within itself its tself orr a partial partia picture to be grouped with • Provides a complete accounting picture omplete picture other ledgers to provide a complete Benefits • More flexibility gal entity(s) entity(s) accounting accou unting information informat • Represent legal in a different: counting method - Accounting Accou - Chart of Accounts - Calendar Suble - Subledger Accounting Method - Maintain at 4 Different Levels

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Ledger Chapter 3 - Page 9

Secondary Ledger Conversion Levels

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Secondary Ledger Conversion Levels Balance Level ains primary ledg g account balances in another • The balance level secondary ledger maintains ledger dger req accounting representation. This type of secondary ledg ledger requires Oracle General Ledger t this secondary secon Consolidation to transfer primary ledgerr balances to ledger. Journal Level dary ledger maintains maint intains ntains journal journal entries ent • The journal level secondary and balances in an additional ntation. accounting representation. econdary condary ledger is maintained maintained usi • This type of secondary using the General Ledger Posting program. Every timee you post a journ journal in the primar primary ledger, the same journal can be automatically ated and maintained maintain in the secon replicated secondary ledger for those journal sources and categories at are set up for th that this behavior. ubledger Level Subledger • The suble subledger level secondary ledger uses both Subledger Accounting and the General Ledg Posting program to create the necessary journals in both the primary and Ledger secondary ledgers simultaneously. Subledger Accounting creates the journal entries from subledger transactions that integrate with Subledger Accounting.

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• General Ledger Posting creates the journal entries for all other transactions that do not integrate with Subledger Accounting, including manual journal entries. Adjustments Only • Secondary ledger level is an incomplete accounting representation that holds only adjustments. • The adjustments can be manual adjustments or automated adjustments from Subledger Accounting. This type of ledger must share the same chart of accounts, accounting calendar/period type combination, and currency as the associated primary ledger. To obtain a complete secondary accounting representation that includes both the transactional data and the adjustments, use ledger sets to combine the adjustments-only secondary ledger with the primary ledger when running reports.

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Reporting Currencies

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Reporting Currencies Business Reasons alysis • Useful for consolidation reporting and analysis o cons • No need to physically move balances to create views of consolidation data ion entities entities that share sh the same chart of accounts and • Beneficial for parent consolidation ies calendar with their subsidiaries Benefits dgers • Tighter link to ledgers ng and reporting in another curre • For accounting currency (in addition to the ledger’s primary y)) currency) nd • Cann be used with Pri Primary or Secondary ledgers

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Reporting Currency (RC) Conversion Levels

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Reporting Currency (RC) Conversion Levels ns at three three differe You can maintain additional currency representations different levels: - Balance level - Journal level - Subledger level nslated balances s. Every time yo s. • Balance level maintains translated balances. you run translation in General tored ored in a balance ce level reporting reporting currency. Ledger, balances are stored sentation of only your GL journals and balances. Every • Journal level, is a currency represe representation time you post a journal in GL, the journal will be converted to one or more journal level reporting currencies. edger level is a complete c renc representation of your subledger transactions, GL • Subledger currency journals ournals entries an and balances. Every time you enter e a subledger transaction or enter and post a journal directly in GL, the same transact transaction and journal will be converted to one or more associated subledger level reporting currencies.

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Accounting Setup Steps

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Accounting Setup Steps u must complete tthe required General Before you can use Accounting Setup Manager, you Ledger setup steps. At the very least, you must: • Define a chart of accounts • Define an accounting calendar • Enable currencies up consists consists of the hee following steps: steps Creating an accounting setup ities. ties. If you are are not n integrating w • Define Legal Entities. with Oracle subledgers or are defining an tup that does nott require require a legal entity context, then you can skip this step. accounting setup one, one or multiple multi legal gal entities entitie to an accounting setup. • Assign none, fine a primary ledger led yin a name, chart of accounts, calendar, currency, and • Define by specifying optionally a subl subledger accounting method. • Optionally aassign one or more secondary ledgers. Secondary ledgers can differ from the primary ledger in any or all of the following: - Chart of accounts - Calendar

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- Currency - Subledger Accounting Method • Optionally, you can create reporting currencies and assign to the primary and/or the secondary ledger if you want to maintain multiple currency representations. • Complete the Accounting Options by specifying the journal processing options and transaction processing options for the setup components in this accounting setup. • Mark the accounting setup complete. This will prevent certain changes to your accounting setup and launch the GL Accounting Setup Program that will make your setup components ready for data entry.

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Accounting Setup Manager Create Accounting Setup

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Accounting Setup Manager—Create Accounting Setup eac have sub-steps. The two When creating an accounting setup, there are two main steps that each ructure and then tto complete the accounting main steps are to create the accounting setup structure options. re e Create Accounting Setup Structure unting setup struc stru c cture is to assign none, one, or multiple legal The first step in creating an accounting structure p. entities to an accounting setup. ou assign, assign, the Acc Ac Based on the number of legal entities you Accounting Environment Type will default. assig d, then Other defaults. The Other Accounting Environment • If no legal entities are assigned, ot using ot usin Oracle subledgers, or if you want a standalone Type should be used if you are not dger for consolidation consolida ledger or management reporting purposes. • If one legal en entity is assigned, Exclusive Legal Environment defaults, but can be changed to Shared legal Environment. You should use the Exclusive Legal Environment if - the legal entity operates in a country where its transactions must be kept separate from the transactions of other legal entities

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- the legal entity is required to use a separate document sequence from other legal entities - you plan to use Globalization features specific to that country in which the legal entity operates you should also use the Exclusive Legal Environment for a legal entity that requires its own period close schedule (i.e. it must close its period at a different time than other legal entities).

- you want to use the Advanced Global Intercompany System, you must have at least one legal assigned to the accounting setup • If more than one legal entity is assigned, then the Shared Legal Environment type defaults and cannot be changed. You should house multiple legal entities in the same accounting setup - if you operate in a country that does not require a separate document sequence for each legal entity - All of the legal entities can share the same period close schedule, same primary and secondary ledgers, and same journal processing options Select the accounting environment type carefully. You cannot change it once it is defined. Complete Accounting Options The second step is to assign a primary ledger and optionally one or more secondary ledgers. Secondary ledgers can differ in one or more of the following from the primary ledger: • Chart of accounts • Accounting calendar • Currency • Subledger accounting method Save the structure. Note: You can add secondary ledgers at any time. Complete Accounting Options dy to complete the th accounting options. The After you have saved the structure, you are ready rmat. You mustt complete comp c accounting options page is in a checklist format. all of the required steps. ending on whethe her or not not yo Different setup steps are displayed depending whether you are using legal entities, urrencies. secondary ledgers, and reporting currencies. ng segment values to legal entities to help you It is strongly advised that you assign balancing ng transaction processing processing and rep re identify legal entities during reporting. You must assign Balancing V) to legal entities ies if you plan to use the Advanced Global Intercompany Segment Values (BSV) System. he required setup steps are comp co mp After all of the complete, you can complete the entire accounting setup.

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Accounting Calendar

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Accounting Calendar lee calendars and assign a Oracle General Ledger allows you to define multiple a different calendar nthly thly calendar for one ledger, and a weekly to each ledger. For example, you can use a monthly calendar for another.

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Ledger Chapter 3 - Page 18

Unlimited Currencies

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Ledger Chapter 3 - Page 19

Sharing Ledgers Across Oracle Applications

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Chart of Accounts

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Chart of Accounts unts using Accou In Oracle General Ledger, you build a chart of accounts Accounting Flexfields. Flexible: ruct ucture ure that meets ets your rreporting needs and • You can design a flexible account structure anticipates the way you run your organization inn tthe future. Multiple Rollups: ccounting counting information informa mation from multiple multi perspectives by creating rollup • You can summarize accounting groups. Ranges: acco ructure, you yo can use ranges to group accounts in reports, • With a well-planned account structure, ify security and ccross-validation ion rules, define summary accounts and reporting specify ierarchies. hierarchies.

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Building the Chart of Accounts Structure

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Building the Chart of Accounts Structure • The decisions you make when designing your chart of accounts are very important. urree of your chart oof accounts is difficult and not Making changes in the future to the structure recommended. ntt structure structtture ure that m meets the cu r • Plan carefully to create an account current needs of your uture ture requirement nts. organization and anticipate future requirements. cture for your industry cture ind ndustry and repor • Tailor your account structure reporting requirements. • Choose the number of segments, ass w well as the lengt length, name, and order of each segment.

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Identifying Business Requirements

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Identifying Business Requirements cation or a group of tightly integrated If all the detail for an item is contained in one application tself. Do not add extra segments to the applications, retain the detail in the application itself. at is tracked in yo your ssubledgers. For example, if you Accounting Flexfield structure for detail that dee a pr project oject segme ment in your Accounting Flexfield. are using Oracle Projects, do not include segment lications that all all pass p data to Oracle General Conversely, if you capture details in multiple applic applications her elements, such such as product, in the Accounting Flexfield. Ledger, consider including other

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Identifying Segment Requirements

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Identifying Segment Requirements nt to avoid compli Keep each business dimension in a separate segment complicating your processing and reporting. ne segment may y lead l tto difficulties when retrieving Combining location and department into one locationss and a restricting restrictin certain departments to data for the same department number across locations specific accounts. ch segment. Havi Avoid having more than one meaning for each Having more than one meaning can lt the segment, to isolate isolate different differen data for reporting, and to logically make it difficult to default bers to segment values. v exam assign codes or numbers For example, using one generic segment for ect, and product eelements lements ements make make iit impossible to analyze product sales by subaccount, project, roject. oject. individual project. er creating extra ssegments to handle any future reporting requirements that may occur. Consider onsider nsider data entry efficiency when ordering your segments. Consider Place segments with defaults at the beginning of your Accounting Flexfield, at the end, or both. A When the Accounting Flexfield window opens, the cursor is placed on the first blank, nondefault segment. Once users enter all the values for the blank segments, they can press the defaulted En key to save their work. Enter

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Use alpha characters only in parent account segments. Users can easily enter numerical child value characters using the ten-key pad when they do not have to shift hand position for alpha characters.

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Analyzing Reporting Requirements

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Analyzing Reporting Requirements General Ledger either in stand-alone Review reports currently produced outside of Oraclee General you Accounting Flexfield, or systems or in spreadsheets. Determine if addingg segments to your way using parent/child paren ent/ch hierarchies, allows you to structuring your segment values in a certainn way acle General Ledg edger. dger. generate those reports directly from Oracle Ledger.

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Creating a Worldwide Chart of Accounts

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Creating a Worldwide Chart of Accounts ree that can report effectively to meet It is important to design a chart of accounts structure ntry specific regul corporate business needs and comply with country regulations. How you accomplish this depends on your organizations needs. s: • There are two possible approaches: - Assign Account Ranges Segments. - Allow Reporting Units to Define Se Assign Account Rangess repres • For example, your departmentt segment represents true cost centers, such as factories. You unts to each eac cost center to maintain detail information by assign a different range of accounts enter. cost center. A - Factory 1: Assigned accounts 200 to 299 - Factory 2: Assigned accounts 300 to 399 Fac - Factory 3: Assigned accounts 400 to 499

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Worldwide Chart of Accounts Example

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Worldwide Chart of Accounts Example Allow Reporting Units to Define Segments utt allow each repo p • Establish general criteria for segments, but reporting unit to define an F example, exa additional segment and values within its own ledger. For each factory creates its count structure structure but bu does not report detail balance own segment and values in the account com mpany. The detail detai information disappears information for this segment to the parentt company. upon consolidation. - Factory 1: ates tes accounts 100 000 to 999 to represent repre Designates distribution channels in the account segment. subaccount actory 2: - Factory Designates accounts 100 to 999 to represent products in the product segment. Note: This method requires different ledgers for each unique Chart of Accounts.

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Creating Vertical Structures

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Creating Vertical Structures Consider summarizing your data according to your management stru structure. Create a separate segment for the lowest level in the Accounting Flexfield. eporting, rather than creating Strive to use parent rollups within a singlee segment for rep reporting, g Flexfield. additional segments in the Accounting ompany reports to Western Regio For example, a child value of Company Region which reports to European ac in the Ac Division. Only Company is a posting level account Accounting Flexfield. Set up nt of Company Company and an Western Div Western Region as parent Division as parent of European Region. organizes frequently, frequen ently, use use parent/child parent/ If your company reorganizes relationships for maximum flexibility. alue lue can be in multiple mu nts. It is better to create new parent structures than to A child value parents. fy y existing structu modify structures because changes can effect historical reporting. For example, if the Western Region co contained five companies, reported year end results, and then had two more companies moved mov into its child range, then historical reports run after the two additional companies were added would show different results.

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Validation and Value Sets

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Validation and Value Sets de Use independent validation when the meaning of a value does not depend on the value of another segment. ng of a value depe epends pends oon the value of another Use dependent validation when the meaning depends ent segment value ue determines the acceptable dependent (independent) segment. The independent segment values. lready ready exist in a ddatabase table. Use table validation when thee valid values alre already Points to Consider dating your value ue set against a non-Oracle no • If you are validating database table, have your System ator register the table ta e withh Oracle Oracl Application Object Library. Administrator g valu • The validation type of an existing value set cannot be changed. reco • It is strongly recommended that you use independent validation type with Accounting Key segm Flexfield segments. Parent values cannot be defined for dependent segments. The dependen validation type limits ability to use parent values with MassAllocations, dependent Mass MassBudgeting, and Financial Statement Generator (FSG).

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Using Independent and Dependent Segments

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Using Independent and Dependent Segments Independent Segments endent segments. Do not use the Dependent endent • For Accounting Key Flexfields, use independent /child child hi hierarchies erarchies es and llimits the ability to use parent validation type. It complicates parent/child location journall entries. e values with reporting and mass allocation Dependent Segments parate items that at are closely closely related relat into individually identifiable • Dependent segments separate segments. count is the most st common use use ffor independent/dependent segments • Account/subaccount classif ation and subaccount sub sub (account iss the major classification provides more detail within the nt). account). se • With dependent segments, you must set up each combination of independent/dependent values. n need to set up cross-validation rules for independent/ dependent combinations • You do not since you set up each combination individually. Sometimes setting up dependent segments is preferable to maintaining extensive validation rules for combinations of two segments which have many values with no ranges or logic for the valid combinations.

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• Dependent segments limit the values that appear on lists to the dependent values of the independent segment chosen.

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Designing Size and Numbering Systems

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Designing Size and Numbering Systems Numeric and Alphanumeric Values beca • Numerics are preferable from a data entryy perspective because users can use the ten key re easy to use. pad. Sort order is clearer and ranges are ogic and meaning meaning ng to users. If you do use alphanumeric • Alphanumerics may have some logic ena nable consistency and ease of sorting and codes, set up the codes in all uppercase to enable querying. ric coding system, system em, you can have alpha characters for parent values and • With an alphanumeric t allows for visually v numeric codes for child values;; this distinguishing levels of your hierarchy. dless of whether you y use numbers umber or alphanumeric characters, you must use the char • Regardless haracter) format type. t (character) egment Sizes Segment • To make data entry simpler, do not design the segments longer than needed. However, consi consider your organization's growth requirements. If your organization currently has 30 d departments, but plans to acquire more companies and expand its operations globally, a

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two character segment size will only accommodate up to 99 different department values. A three character segment size can accommodate up 999 different department values. • If you limit segment descriptions to a maximum of 30 characters, your flexfield pop-up window does not include a horizontal scroll bar. Coding Schemes • Consider revising your existing coding schemas. Retaining the old logic of historic numbering systems often places unnecessary constraints on the Oracle General Ledger and may create ongoing processing, reporting, and maintenance problems. • As Oracle General Ledger often uses ranges, make certain that these ranges are broad enough to create new values in logical sequences.

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Creating Accounting Flexfields

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Defining Value Sets

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Defining Value Sets ets (N) Setup > Financials > Flexfields > Validation > Sets What is a Value Set? attributes that th you assign to a key or descriptive • A value set defines the boundaries forr the attributes ntrol what types of o values can be used as Accounting flexfield segment. Value sets control alue sets determine determin mine the attributes of your segments such as mine Flexfield segment values. Value stify, alphanumer merics, erics, and value ssecurity. Value sets also control length, zero-fill, right-justify, alphanumerics, rformed. For exam xample, ample, w with ith inde how validation is performed. example, independent validation, a list of values must be created and used. Segment Assigning Valuee Sets to Segments countin Flexfield segment. • Assignn one value set to each Accounting hare the same value val sets across multiple ledgers to facilitate consolidation. • Share t same value set more than once within the same Accounting Flexfield • You can use the structure, as noted in the diagram above, where the same values set is used for the Balan Balancing and Intercompany segments.

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How to Define Value Sets 1. Open the Value Sets window. 2. Enter the following: - Value Set Name - Description - List Type - Security Type - Format Type - Maximum Size - Validation Type 3. Save your work. Note: Changing the attributes of a value set affects all of the Accounting Flexfield segments using that value set.

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Defining the Accounting Flexfield Structure

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Defining the Accounting Flexfield Structure How to Define Flexfield Structure egments (N) Setup > Financials > Flexfields > Key > Segments indow ndow 1. Open the Key Flexfield Segments window 2. Run a query to find: - Application—Oracle General Ledger Accounting Flexf xfield - Flexfield Title—Accounting Flexfield ny line and select selec (I) New 3. Place your in the Title field on any llowing informati on: 4. Enter the following information: de - Code auto - Title will automatically populate Descripti - Description - View Name Sav your work 5. Save 6 (B) Segments 6.

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7. In the Segments Summary window, define the individual segments and the order in which they appear 8. Place your cursor on line one 9. (B) Open 10. In the Validation Region of the Segments window, place checks in the Required and Security Enabled checkboxes 11. In the Sizes Region, enter sizes for Display, Description, and Concatenated Description fields 12. Save your work 13. (B) Flexfield Qualifiers 14. Select Enabled • Each ledger can have its own Accounting Flexfield structure. Select the appropriate symbol in the Segment Separator field. • Choose whether to enable dynamic insertion to allow new account combinations to be entered. If dynamic insertion is not allowed, account combinations must be defined using the GL Accounts window. • Choose to allow cross-validation rules to control the creation of account combinations. • You can also select to enable the flexfield structure and compile changes made to an Accounting Flexfield. nt • Enter a name, description, column and segment number for each segment. Segment numbers must be sequential for the accounting key flexfield, beginning with 1 (such as 1, 2, 3, …). • To prevent changes to the Accounting Flexfield structure definition, select the Freeze Flexfield Definition check box. Setting Validation Information for Segments • Assign a value set to each segment. • Always enable the flexfield security check box forr each segment. • Enter a default value from the list of values, or enter another vvalue. • Select the Required check box and the Displayed checkk bbox box. egment gment Display • Selecting Different Sizes for the Segment ers rs to be displayed displaye yed for the flexfie fl exfie segment value and its • Choose the number of characters flexfield Size and Descrip ription iption Size fields description in the Display Size Description fields. field, choose th • In the Concatenated Description Sizee field, the number of characters to be ch h segment value uee description description that makes up the account combination. displayed for each ield eld Qualifiers Assigning Flexfield Qualifie window, ow, assign ass • In the Flexfield Qualifiers qualifiers to individual accounting key flexfield gments: segments: - Natural A Account: Each Accounting Flexfield structure must contain only one natural accou accoun account segment. When setting up the values, you will indicate the type of account as A Asset, Liability, Owner's Equity, Revenue, or Expense. - Balancing Account: Each structure must contain only one balancing segment. Oracle General Ledger ensures that all journals balance for each balancing segment.

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- Cost Center: This segment is required for Oracle Assets. The cost center segment is used in many Oracle Assets reports and by Oracle Workflow to generate account numbers. In addition, Oracle Projects and Oracle Purchasing also utilize the cost center segment. - Intercompany: General Ledger automatically uses the intercompany segment in the account code combination to track intercompany transactions within a single ledger. This segment has the same value set and the same values as the balancing segment.

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Defining Segment Values

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Defining Segment Values yo create. These are the Use the Segment Values window to enter values forr each segment you combinatio values that you use when building your accountt code combinations. (N) Setup > Financials > Flexfields > Key > Values nt structure structure before ore performing this step. Note: Create the segments and account

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Populating Segment Value Attributes

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Populating Segment Value Attributes As you enter values for a value set in the Segment Values window, yyou also set the attributes for those values. ndependent orr Translatable Tra Translat If the value set has the type Translatable Independent Dependent, the sers can select the th Translation Translati icon to update the Translati Translated Value field is enabled and users guages. translated value in all installed languages. ent value (an account acco ccount segment va ccount Select Parent to specify a parent value that references a number of led ed child values). ). When When entering parent values, optionally enter a other segment values called nd/or level. rollup group name and/or lee values by selec ng the enabled enabled check box or by using the Date From and To Enable or disable selecting fields.

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Segment Qualifiers

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Segment Qualifiers so assign qualifie • When you define a segment value, you must also qualifiers for that value to eting ting is allowed, whether w determine the account type, whether budgeting posting is allowed, and men entt value. You m must enter segment qualifier other information specific to that segment values for fo any value valu set used to create an information whenever you define segment values ation. tion. Segment Segment qualifiers qu vary by segment. Accounting Flexfield combination. ers: You can define the following segment qualifier qualifiers: Allow Budgeting: rform detailed budgeting bu acc • Enter Yes to perform for accounts with this segment value. If set to No, th this segme you cannot assign accounts w with segment value to budget organizations and you for or those accounts. If you are defining a parent segment cannot define budget formulas for ue, you must enter ente No. value, low Posting: Allow • If set to N No, you cannot use accounts with this segment value to enter journals. If you are definin defining a parent segment value, you must enter No because you cannot not post to parent ac accounts.

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Account Type: • Defines the account type for the natural account segment value. You can enter only valid account types. Enter the type of proprietary account (Asset, Liability, Owners' Equity, Revenue, or Expense) or enter the type of budget account (Budgetary Dr or Budgetary Cr). For statistical accounts, enter either Asset, Liability, or Owners' Equity. If you choose an account type of Revenue or Expense for a statistical account segment value, your statistical balance zeros-out at the end of the fiscal year. The default for this field is Expense. To change the Account Type for a value that has not been used, unfreeze all Accounting Flexfield structures that reference the natural account segment. Changing the account type only affects new accounts created after this change is made. Note: Please consult Oracle Support before making a change to a value that has been used or has a balance to prevent problems. Third Party Control Account: • Enter Payables, Receivables, or Yes for the Third Party Control Account to designate the account as a Control Account. Access to this account will be restricted to Oracle Payables, Receivables, and Inventory, for which Subledger Accounting automatically creates detailed balances. If you do not specify the account as a control account, you will be able to use the account for all Oracle Applications. Reconciliation Flag: d • Enter Yes for Reconciliation Flag to allow reconciliation for natural accounts that should balance to zero. Note: When you define a value as a Parent, you can not budget or post to this value even if you select the Budget Entry Allowed and Posting Allowed check boxes.

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Control Accounts

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Control Accounts ssed from Oracle Payables, Receivables, Control accounts are General Ledger accounts accessed g automatically creates cr and Inventory, for which Subledger Accounting detailed balances. ng data from una nautho Control Accounts prevent users from entering unauthorized sources. Benefits • Improved Data Integrity ed source source to post st to an account - Only allow approved ciliation • Streamlined Reconciliation betwe ween source system syste and GL account balance - Enforce consistency between

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Control Accounts Setup and Process

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Control Accounts Setup and Process alues, you can designate de • When defining your natural account segment values, an account as a egment values wi control account using the qualifier in the segment window. m which data can an n origin • You can select the journal source from originate for each control account. y data from the specified sp sourc • SLA and GL will verify that only source can be posted to the control account.

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Defining Hierarchies

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Defining Hierarchies Child Segment Values • Post journals and enter budgets directly too child segment va values. Assign ranges of children to parents. Parent Segment Values nces of associated associated ted ed child accounts. accounts Any segment that has • Use parents to sum the balances en if that segment nt has has its own parent par above it - is considered a children beneath it - even eneral Ledger. You Yo cannot post post jjournals or enter budgets directly for parent by Oracle General ra v parent segment values. Assign ranges of child values to parent values to create ts, MassAlloc Ma ssAlloc summationss for running repo reports, MassAllocations, or MassBudgeting. an create parent ssegment values alues for independent segments, but there are limitations • You can hen used with dep when dependent segments. The Dependent validation type limits using parent values with Ma MassAllocations, MassBudgeting, and Financial Statement Generator (FSG). p The only parent value available for dependent segments is an all inclusive parent that include all the values of the value set. includes

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Technical Note: • Summary accounts may use the segment value 'T' in one or more of the segments, therefore, define the segment value "T" for every Accounting Flexfield segment if you are planning to create summary accounts. The value 'T' is also a parent value even though its children are not specifically assigned. Note: Char must be used as the format type for all segments of the accounting key flexfields because of the value "T".

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Working with Ranges

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Working with Ranges t. • Enter the ranges of child values for each parent. • Specify a range type of Child or Parent. w t specified range are • When using the Child type, any childd values that falll within the considered children of the parentt value. ues that fall withi ues • When using the Parent type,, any parent valu values within the specified range are he parent value. considered children of the Moving Ranges f one parent to another parent value. one • Move a rangee of child values from ild ld moved is also a parent, ent, its chi ent, • If the child children are moved automatically. g Hierarchies Viewing hierar • View the hierarchy structure to which the selected value belongs.

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Account Hierarchies

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Account Hierarchies rchies to view your yo business according to • Use various flexible parent/child account hierarchies zational lines, or any other combination of zational product lines, geographical regions, organizational factors you deem important. ny vertical and horizontal ho lev as you need to • Create your hierarchy with as many levels ness or businesss se segment. s gment. It is be effectively analyze your business better to create new parent ures because changes chan chan structures than to modify existing structure structures can effect historical reporting. value that have the Parent check box selected value Note: Oracle Generall Ledger treats all segment values hildren assigned assigne and does not allow direct posting or as parents even iff they don't have children budgeting to these values.

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Account Hierarchy Manager

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Planning Hierarchies nd save Parent and Child segment values, Plan your hierarchies carefully. When you create and they become permanent. You cannot change or delete Parent or C Child segment values using the neral eral Ledger. You ou can only disable them. Disabled Account Hierarchy Manager or Oracle General count Hierarchy y Manager M aas grayed out. segment values are displayed in the Account es, creating numer merous parents parents and children, or managing the If you are creating large hierarchies, numerous d children, you can use a spreadsh attributes of many parents and spreadsheet template as a planning aid. emplate after thee grid g d format in th Model your spreadsheet template the Attributes window. Enter the appropriate data in thee cells. You cann uuse your templat template to guide you when making changes in archy Manager. You Y can copy an the Account Hierarchy and paste entries from your template into the ndow, one field at a time me for the Value, Description, From, and To fields. The Attributes window, mat at you enter in yo date format your template mu must follow the MM–DD–YYYY format.

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Account Hierarchy Manager—Security

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Account Hierarchy Manager—Security (N) Setup > Accounts > Manager The Account Hierarchy Manager has security rules that work ttogether. You can control read ss to hierarchies, s,, segme only or read/write access and control access segment values, and charts of accounts. urity • Read Only, Read/Write Security bles les you from modifying mod odifying or savin - Read Only – Disables saving hierarchies or segment values s.. You can only query, q hier and parameters. view hierarchy, view details, and export to a tab i displayed in the th title bar of the Account Hierarchy delimited files. Read Onlyy is ger. er. Manager. ead/Write Securi - Read/Write Security – Givess you read/write access to all segment values in the Chart S of Accounts. Segment Value Security may limit the segment values you can access. Valu Security—An Oracle Applications feature that lets you exclude a segment • Segment Value value or ra ranges of segment values for a specific user responsibility. Segment Value Securi is extended to the Account Hierarchy Manager. Security

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• Chart of Accounts Security—You have access to those charts of accounts associated with your user responsibility. If you need access to charts of accounts not available to you, see your system administrator.

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Defining an Accounting Calendar

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Defining an Accounting Calendar Account Calendar Considerations ng up your periods period in advance, you can reduce • Define at least one year at a time. By setting he start of eachh accounting accoun a the amount of period maintenance at the period. nnot be performed perffformed ormed med ed in the initial initia period opened for your • Foreign currency translations cannot ledger. od carefully. After Afte fter you open the first accounting period, prior • Choose the earliest period pened. periods cannot be opened. mber of periods you yo want to budget budg for, up to a maximum of 60 periods. • Set up the number od is opene • When thee next accounting period opened, Oracle General Ledger rolls account balances ard to that period. forward How to Define an Acc Accounting Calendar (N) Setup > Finan Financials > Calendar > Accounting • Open th the Accounting Calendar window • En Enter the following information: - Calendar: Accounting Demo

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- Description: Standard Calendar • Enter the following information to add the periods that make up the calendar year: Prefix Type Year Quarter Num From To Name Jan Month 2003 1 1 01-JAN-2003 31-JAN-2003 Jan-03 Feb Month 2003 1 2 01-FEB-2003 28-FEB-2003 Feb-03 • Notice the Adjustment box to designate an adjusting period. • Save your work • Close the Accounting Calendar window. A decision window appears whenever you close the Accounting Calendar window after creating or editing a calendar. Select the Current button to validate the calendar you just created. • (B) OK • Find your request in the Requests window and select the View Output button to find out if there were any errors in the calendar you just created • The Calendar Validation Report identifies if there are missing periods for this calendar

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Defining Period Types

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Defining Period Types ine the year to assign as Oracle General Ledger uses the year type to determine to a period name in ew period types: the accounting period system. When defining new hich an accounting accountin ing period per • Choose Calendar to use the year in which begins for the period name. fi year ends ffor the period name. • Choose Fiscal to use the yearr in which yourr fiscal

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Defining Your First Accounting Period

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Defining Your First Accounting Period When you define a new ledger, choose carefully thee first accounting period you want to open. racle acle General Ledger Led Once you open your first accounting period, Oracle does not allow you to open prior accounting periods. ting ing period or not ot in your cale Choosing whether to include an adjusting calendar is a very important edd number of adjusting ad adj ddjusting j justing decision. You can have an unlimited periods. Typically, the last day of the ting ing period to perform pe perf rf rform adjusting aand closing journal entries. Once fiscal year is used as an adjusting ounting unting calendar, r, you cannot cha you begin using your accounting change its structure to remove or add an adjusting period.

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Accounting Period Statuses

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Accounting Period Statuses Never Opened: • You cannot enter or post journals. Future Enterable: The number of fu • You can enter journals, but you cannot post. The future enterable periods is a w. You can chang fixed number defined in the Ledger window. change the number of Future y time. Enterable periods at any Open: ls to any open pperiod. An unlimited number of periods can • You can enterr and post journal journals w the posting postin process and can confuse users entering be open, but doing so may slow als. journals. d: Closed: re • You must reopen Closed periods before you can post journals. You should manually close a periods after finishing your month-end processing.

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Permanently Closed: • Permanently Closed periods cannot be reopened. This status is required to archive and purge data.

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Calendar Auditing

y m e d a c A e l c a r O ly & On l a e n r s e t U n I e l c a r O Calendar Auditing cale Oracle General Ledger can automatically audit yourr accounting calendars to check for common setup errors. This feature strengthens controls during im implementation and prevents alid calendar def efinit finiti potential processing problems related to invalid definitions. ar window to ente nter periods, tthe system only performs When you use the Accounting Calendar enter he wrong number ber of days days assigned assign to a period or online checking of errors such as the ays. nonadjusting periods that havee overlapping day days. dar window, thee Calendar C Auditi When you exit the Calendar Auditing program automatically produces a tlines calendar definition de violatio such as date omissions, overlapping report that clearly outlines violations iods, and nonsequ ential periods. nonadjusting periods, nonsequential ar Validation report repo printss the error err description, years, periods, or dates that violate The Calendar the GL calendar definitio definition when you create a calendar or add accounting periods to your ndar. calendar. Use the Calenda Calendar Validation Report to identify errors in your calendar that may interfere with the proper ooperation of Oracle General Ledger.

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Enabling Currencies

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Enabling Currencies (N) Setup > Currencies > Define 1. To Enable or Disable a Currency, open thee Currencies wind window. existi xisting ng records by b using the CTRL + F11 keys. 2. In the currencies window, query all existing nabled. Scroll Scroll tto the right and select the 3. Select any existing currency thatt has not been en enabled. Enabled check box to enablee the currency. 4. Save your work.

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Enabling Account Combinations

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Enabling Account Combinations The default setting for an account code combination is enabled. Once created, an account code combination cannot be deleted. To discontinue using an account code combination, simply unt. You can n also so us deselect the Enabled check box for the account. use the effective date to enable or have a new ew department departme as of January 1, 2002, you disable the combination. For example, if you have ation tion with an effective effe fective date of 01-JAN-2002 0 can create an account code combination and the account iss means you have hav the flexibility to create the combination becomes enabled onn that date. This vance. account combinations in advance. control the follow owing attributes from the GL Accounts window: Additionally, you can control following • Preserved • Type fective Dates • Effective • Allow Posting Bu • Allow Budgeting

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Segment Value Inheritance

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Segment Value Inheritance Overview of Segment Value Inheritance ounts maintenance by automatically replicating • Oracle General Ledger eases chart of accounts de com changes to segment value attributes off the account cod code combinations that contain that ou enable a partic pa rticu icular cost cen segment value. For example, if you particular center segment value that had u can run the Segm gment Value Inhe gment been disabled previously, you Segment Inheritance program so that all ns containing that hat at cost cost center are automatically re-enabled. You account code combinations cted account code de combinations combinations ffrom being affected by segment can also prevent selected hanges anges by selecting selectin ting ing the Preserved Preserved check box in the GL Accounts window. value attribute changes ent nt Value Inherita nce Program Using the Segment Inheritance itance pprogram: • To use the Segment Valu Value Inheritance disab a segment or change other attributes in the Segment Values - Enable or disable window. - Run tthe Segment Value Inheritance program to change the attributes on all account co combinations that contain the segment. code - Use the Segment Value Inheritance Exception Report to view the account code combinations that have been changed.

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• Individual segment value attributes override account code combination attributes. To protect account code combinations from changes when you run the Segment Value Inheritance program, select the Preserved check box in the GL Accounts window. • An account code combination is composed of several segment values. If these segment values have conflicting settings with respect to being enabled, posting, budgeting, and effective dates, the most restrictive of these settings for any of the individual segment values applies to the account code combination when the program is run. If you disable a segment value, the code combinations that contain that value will no longer be able to used, even if the preserved check box is selected. Note: You can also disable an account code combination in the GL Accounts window. However, you must select or deselect the Enabled check box for each account combination individually. This applies to other attributes such as budgeting and posting as well.

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Troubleshooting Segment Value Inheritance

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Troubleshooting Segment Value Inheritance Accounting Flexfield Structure: • If you want to update another Accounting Flexfield structu structure, you must use the u have multiple ledgers le responsibility for that structure. If you ledgers, you must have at least one dger. The The segmen ent value inhe responsibility defined for each ledger. segment inheritance program only he one assignedd to t the responsibility responsib updates one ledger, which is the of the user launching edgers need to be updated, you must m launch the program multiple the program. If multiple ledgers m a different respo ponsibility. times, each time from responsibility. Table Validation: ment Value Inheritance Inherit nce program is i run for a chart of accounts that contains a • If the Segment alidated value set, set the columns umns mns LAST_UPDATE_DATE L table validated and CREATION_DATE ust st be in the table used by the table b validated value set. If the table does not have these must th Segment Value Inheritance program cannot determine which segment columns, then the values attrib attributes have changed since its last run and assumes that no segment value has changed in this value set. • Th The Segment Value Inheritance program prints a warning message in the report.

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• The program continues the inheritance process for other segments and generates a warning when the program is completed. Segment Value Inheritance and Flexfield Security • Segment value inheritance and flexfield security are different and unrelated. • You can use flexfield security to enable specific users to use a segment value and block other users from using the same value. • Segment value inheritance finds code combinations using a segment value and transfers the segment value attributes to the code combinations.

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Defining Flexfield Security Rules

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Defining Flexfield Security Rules ic segment values • To prohibit certain users from accessing specific values, you can define flexfield security rules and assign those rules to the responsibility off the restricted users. For use ser access acc only to his or her own example, you can create a security rulee that grants a user department. ntt values must pass pas ass every every assigned assigne flexfield security rule for a • Accounting Flexfield segment re the value can be b selected by th user's responsibility before the user. How to Define Security Rules als > Flexfields > Validation > Security S (N) Setup > Financials > Define d Key Flexfield S ment window 1. In the Find Segment window, enter: ng Fl - Title Accounting Flexfield D - Structure Demo Accounting Flex Segmen - Segment Company t Find button. 2. Select the En the parameters for the security rule. 3. Enter 4 In the Security Rules region: 4.

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5.

6. 7.

8.

- Name Demo FFS - Description Company Not Valid for Responsibility - Message Demo FFS – Company not valid for responsibility In the Security Rules Elements region: - Include 00 – 99 - Exclude 00 - 00 Save your work. Select the Assign button and assign the rule to: - Application Oracle General Ledger - Responsibility Demo Vision Operations, USA - Name Demo FFS Save your work.

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Using Dynamic Insertion

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Using Dynamic Insertion Setting the Allow Dynamic Inserts Option combinations to be b added automatically as you • You have the option of allowing account combinations ledg This option is controlled enter them in transactions, including when you definee a ledger. eck box located located oon the Key F by the Allow Dynamic Inserts check Flexfield Segments window. lll accounts to bee define manually in the Accounts Alternately, you can require all Combinations window. ies es enable dynamic dynam mic insertion while whi they are entering historical data • Frequently, companies ystem. stem. They then n disable the feature featu to ensure tighter control over the from a legacy system. ew account comb inations. creation of new combinations. u are defining an Accounting A ing Flex Note: If you Flexfield for Oracle Projects, you must define your t option set to Yes. For more information, refer to the segmentt with the Allow D Dynamic Inserts acle cle Projects User Guide. Oracle

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Defining Cross-Validation Rules

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Defining Cross-Validation Rules ess you can create when w Cross-validation controls the combinations of values you are setting up idation rule defin de fin whether a value of a Accounting Flexfield combinations. A cross-validation defines pecific values off other o particular segment can be combined with specific segments. Cross-validation is ch controls controls the values va you ccan enter for a particular different from segment validation, which segment. creation of comb You use cross-validation rules to prevent the cr combinations that should never exist coexist in the sa (combinations with valuess that should nott ccoexist same combination). For example, you event vent the combination combina nation off a product produ with administrative departments. can assign rules to prevent vising Cross-Vali Cr oss-Validation Rules Defining and Revising Cross-Validation alidate only new accounts, you should define and enable • Becausee cross-validation rules validate m prior to entering enterin accounts. them • Revise cross-va cross-validation rules at any time, but remember that they only prevent the creation of new inva invalid account combinations. Combinati Combinations of Segment Values • N New accounts must pass every enabled cross-validation rule to be valid.

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• Cross-validation rules do not affect existing accounts. • Using Cross-Validation with Dynamic Insertion • Enable dynamic insertion in the Key Flexfield Segments window to allow users to define new account combinations of segment values. • If dynamic insertion is not enabled, you can only enter new account combinations of segment values using the GL Accounts window. • Cross validation rules are important even if dynamic insertion is not enabled to prevent creating invalid combinations accidentally. Specifying Cross-Validation Rules • To enter cross validation rules, navigate to the Cross Validation Rules window. (N) Setup > Financials > Flexfields > Key > Rules • Enter the error message that should be displayed if the rule is violated. Include the name of the rule in the error message for easy identification. • Enter the name of the segment most likely to cause this cross-validation rule to fail; Oracle General Ledger moves the cursor to this segment whenever a new account combination violates this cross-validation rule. Defining Cross-Validation Rule Elements • Select Include or Exclude and specify a range of accounts for each rule. • Oracle General Ledger excludes all accounts that are not explicitly included. • Exclude rule elements always override Include rule elements. Therefore, create a universal tatements. Include statement that includes all possible accounts. Then specify Exclude statements. • Note: Defining many rules with few elements is generally much clearer than defining few nclude element aand rules with many elements. For clarity, always contain one universal Include one or more restricting Exclude elements. our ur system admini Note: To help you maintain your cross-validation rules, have your administrator add the following reports to your General Ledger responsibility: ort provides a listing list • Cross-Validation Rule Violation Report: This report of all the cros previously-created flexfield combinations that violate your cross-validation rules. You can tually disable the existing combinations that tually also choose to have the report program actually violate your new rules. repo poort rt lists all the cross-validation rules that • Cross-Validation Rules Listing Report: This report d structure. Thiss iis the informatio exist for a particular flexfield information you define using the pres esented in a multiple-rule mult Define Cross-Validation Rules form, presented format you can review cords for a given en n flexfield structu and keep for your records structure.

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Defining Shorthand Aliases

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Defining Shorthand Aliases Defining Aliases to Represent Accounts gle le segment, several sever segments or an entire • An alias can represent the value for a single account combination. mber ber of aliases too represent com • You can define an unlimited number complete or partial accounts. How to Create Aliases exfields > Key > Aliases (N) Setup > Financials > Flexfields w, use u the Find ico 1. In the Shorthand Aliases window, icon to find the Demo Accounting Flex nts. chart of accounts. plication lication Or - Application Oracle General L Ledger gF - Flexfield Title Accounting Flexfield - Structure DEMO ACCOUNTING FLEX E 2. Select the Enabled checkbox. 3. In the Max Alias Size field, enter 4. I the Prompt field, enter Alias. 4. In

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5. In the Aliases, Description tabbed region, enter: - Alias Cash - Template 01.100.1000 - Description Cash account for Cost Center 100 6. Save your work 7. Open the Key Flexfield Segments window. (N) > Setup > Financials > Flexfields > Key > Segments 8. Use the Find icon to locate: - Application Oracle General Ledger - Flexfield Title Accounting Flexfield 9. From the Structures list, select Demo Accounting Flex. 10. Clear the Freeze Flexfield Definition check box. Select OK when the message box appears. 11. Select the Freeze Flexfield Definition check box and select OK when the message box appears. 12. Save your work. Important Notes: • You cannot define a shorthand alias using invalid values. ne • There is no validation process or checking of cross-validation rules when you define shorthand aliases. d and recompile • After you define the first shorthand alias, you must unfreeze your flexfield tep is performed it in order to be able to use your newly defined shorthand alias. This step only once. • The Flexfields: Shorthand Entry Profile Option must be set too Yes before you can use your ser or system adm shorthand aliases. This profile option can be set by the user administrator. accou • Caution: Do not define shorthand aliases for a small number of accounts. It is inefficient. • Entering Aliases When Entering Accounts es window, the sh sshorthand window is displayed. • When you invoke the account list of values as orr skip the shorthand sho horthand window to open the • You can enter a partial shorthand alias Accounting Flexfield window. as, the Accounting Accountin ing Flexfield window win • After you enter a partial alias, displays the segment he alias. Change Changee aany segment va values represented by the values if desired. represen represen ented an entire accounting ac • If you entered an alias that represented combination, it fills in the ove ve you to the nex ext field in the wi values and move next window.

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Overview of Account Hierarchy Manager

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Overview of Account Hierarchy Manager With the Account Hierarchy Manager you can: ccount structure structure hierarchies • Graphically create, maintain, and review account • Define new parent and child segmentt values, as welll aas chan change parent/child dependencies Hierarchy Hier er Manage and have your changes • Create new rollup groups from the Account Hierarchy Manager oth the Key Segment Segm gment Values and Rollup Groups windows reflected automatically in both Planning Hierarchies n you y create and ssave Parent and Child segment values, Plan your hierarchies carefully. When manent. anent. You canno ot change or del they become permanent. cannot delete Parent or Child segment values using the archy Manager or Oracle cle Genera Account Hierarchy General Ledger. You can only disable them. Disabled alues are displayed displaye in the Account ccou Hierarchy Manager as grayed out. segment values u are creating larg If you large hierarchies, creating numerous parents and children, or managing the attributes ttributes of many parents and children, you can use a spreadsheet template as a planning aid. Model your sp spreadsheet template after the grid format in the Attributes window. Enter the appropriat appropriate data in the cells. You can use your template to guide you when making changes in the Ac Account Hierarchy Manager. You can copy and paste entries from your template into the

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Attributes window, one field at a time for the Value, Description, From, and To fields. The date format you enter in your template must follow the MM–DD–YYYY format.

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Integrating with Oracle General Ledger

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Integrating with Oracle General Ledger h Oracle General L Account Hierarchy Manager is fully integrated with Ledger. You can create counting Flexfields Flexfiel using the Account and manage values and hierarchies for your Accounting ral Ledger. All ch chang Hierarchy Manager just as you can in General changes made in Account Hierarchy ng and yourr entire re chart of accounts is available in Manager are reflected in GL upon saving king with account account nt structures and hierarchies in Account Account Hierarchy Manager. Working use se of the graphical graphic interface. In addition, Hierarchy Manager is easy andd intuitive because ulations for account accou ount structures is a simple process using the Account performing what-if manipulations Hierarchy Manager. ount Hierarchy Manager Manager in conjunction conju conju You can use Account with GL. First, set up the basic ework in General Ledger er by defin account framework defining value sets, the account structure, segment nts. Then T qualifiers,, and the order of the segments. use the Account Hierarchy Manager to add valuess and relationship relationships. You will find setting up your chart of accounts to be more efficient his way. this

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Using the Account Hierarchy Toolbar

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Using the Account Hierarchy Toolbar Building a Hierarchy he Values List w To build a hierarchy, select a parent value from the window and choose the View nt value and all its it chil Hierarchy button from the toolbar. The parent children are displayed in the Hierarchy window. elect additional values v To continue building a hierarchy, select from the V Values List window, then archy window. Any A new values m drag and drop them in the Hierarchy must be added to existing parent ndow. dow. For example, exampl ple, you can select selec a child value, drag it to the values in the hierarchy window. n drop it onto any any parent value. Y Hierarchy window, then You can also select a parent value, drag it indow, and drop drop it it on any parent value. to the Hierarchy window, re are instances when w However, there youu cannot drop a selected value onto an existing value in the exa hierarchy diagram. For example, you cannot drop a child value onto another child value. The unt Hierarchy Ma Account Manager will prevent you from completing the drag and drop in these stances. instances. v To remove a value from a hierarchy, select it and choose Remove from the right-click mouse menu.

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Account Hierarchy Manager Segment Symbols

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Account Hierarchy Manager Segment Symbols Displaying Segment Values and Hierarchies nssists ists of multiple windows w The Account Hierarchy Manager interface consists to help you find, manage, and create hierarchies. dow Chart of Accounts - Segments Window nts window lists the th Chart of Accounts Acc The Chart of Accounts - Segments you can access subject ty. y. to Chart of Accounts Security. Children in a Gra Hierarc Hierarch Displaying Parents and Children Graphical Hierarchy 1. Expand any Chart of Accountss folder to view the individual segments, such as Company, ent, nt, Account, etc. Department, hlight a specific se 2. Highlight segment and cho choose Find in the Query Values window. The window cha changes to the Values List window and displays all the Parent and Child tha segment. values for that Highligh any parent value and choose the View Hierarchy button. The Hierarchy window 3. Highlight appe appears. Parent and Child values are displayed in a graphical hierarchy.

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Query Values Window Enter search criteria in the Query Values window to search for existing segment values. Values you can access are subject to Segment Value Security. Criteria entered in the Parent and Child tabs work together in your search. The Parent and Child tabs have Values, Status, and Dates tabs to help you limit your query. You can sort the results of your search by Value or Description. Values List Window Expand a Chart of Accounts, select a Segment and choose Find in the Query Values window. The Account Hierarchy Manager displays 100 segment values at a time in the Values Detail window. You can select arrows to scroll through the list. Values Detail Window The Account Hierarchy Manager displays your hierarchies and attributes in two windows— Account Values Detail window and Hierarchy window. The title of the Values Detail window is dynamic to reflect the segment you are working with. For example, if you highlight a parent value for the account segment in the Account Values window and choose the View Hierarchy button from the toolbar, the parent and its children appear in the Hierarchy and Attributes sub windows of the Account Values Detail window. The displayed title of the Values Detail window, in this example, is Account Values Detail. The Hierarchy window displays your hierarchies graphically. From a Hierarchy window, you can build, modify, and view account hierarchies. The Attributes window lists the attributes of segment values displayed in the Hierarchy window. Attributes are: Description, Rollup Group, Account Type, Effective Date Ranges, Enabled, Budgeting Allowed, and Posting Allowed.

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Parent Levels in an Account Hierarchy

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Parent Levels in Account Hierarchy As illustrated in the diagram, a parent value can be a child of a highe higher level parent. For example, in the diagram, parent value 3110 has two child segmen segment values, 3111 and 3115. The arent rent value 3100, 0,, which whi also includes the child parent is itself a child of the higher level parent 00 is, in turn, turn, a child ch of the topmost parent value, 3000, values 3150 and 3160. Parent value 3100 values lues 32 3200 200 and 3300, aas well as all of their child which also includes the lower level parent va values. count ount Hierarchy M When you select a parent level in the Accou Account Manager, you are selecting the parent value lues, ues, which include includ lower level parents and their segment value plus alll of its child values, alues. For example, example, if you se lect the parent value 3300 from the hierarchy associated child values. select ting the va shown in the diagram, you are selecting values 3300, 3310, 3311, 3315, and 3350.

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Creating New Child Values

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Creating New Child Values w segment value bby entering attributes for a Use the Account Hierarchy Manager to define a new ith the defined fo new child value. The new value must comply with format of the segment's value set. or your hierarchy, hierarchy hy, from the C To create a new child segment value for Chart of Accounts Accounts and nd Segment for th Segments window select the Chartt of Accounts the existing hierarchy you nd in the Query Values V window, and choose New Child from the want to work with. Choose Find ributes ibutes window appears. ap C Edit menu. The Child Attributes In the Child Attributes window, enter a new Hierarch chy Manager validates vali Segment Value. The Account Hierarchy the value when you close the Child w.. Attributes window. eate and save a new ne childd segment segmen value, you cannot delete it. To disable the Once you create time uncheck thee Enable E segment value at any time, check box in the Child Attributes window.

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Ledger Chapter 3 - Page 81

Ledger Sets

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Ledger Sets at share the same COA and calendar Ledger Sets enable you to group multiple ledgers that u to treat multiple ledgers as one. For example, combination. Essentially, Ledger Sets allow you ledgers in a ledger ledg dger set s in a single submission by you can open and close periods for multiplee ledgers riods programs from fr Su submitting the new Open and Close Periods the Submit Request form.

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Ledger Chapter 3 - Page 82

Data Access Sets

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Data Access Sets Data Access Sets enable you to specify read only orr read and write aaccess for a legal entity, ntt segment value. ledger, balancing segment value or management

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Summary

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Summary

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Basic Journal Entries Chapter 4

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Basic Journal Entries Chapter 4 - Page 1

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Basic Journal Entries

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Basic Journal Entries Chapter 4 - Page 3

Objectives

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Objectives

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Objectives

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Basic Journal Entries Chapter 4 - Page 6

Journal Entries and the Accounting Cycle

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Journal Entries and the Accounting Cycle g cycle: Journal entries are an integral part of the accounting • Open period • Create functional and foreign journall entries. • Reverse journal entries • Post lances • Review and correct balances balance ces • Revalue foreign currency balances oreign reign currency ba ances • Translate foreign balances lidate idate ledgers • Consolidate eview view and correct correc balances • Review accountin reports • Run accounting • Close the accounting period

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Basic Journal Entries Chapter 4 - Page 7

Integrating Journal Entries in Oracle eBusiness

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Integrating Journal Entries in Oracle eBusiness General Ledger fo Journal entries transfer accounting transactions to General for reporting and analysis. You can integrate the following subledgers withh Oracle General Ledger: nvoiced, voiced, purchase se orders, order final close cancellations • Purchasing: Accrual of receipts not invoiced, alized gain gain and lo loss, invoice pprice variance • Payables: Invoices, payments, realized ons, ns, cost adjustments, adjustme ments, transfers, transfers, retirements, r • Assets: Capital asset additions, depreciation, onstruction in pro rocess reclassifications, also construction process backflush to WIP, W completions, returns, resource and • Work In Process: Material issues orr backflush actions, cost updates upddates overhead transactions, y:: Inventory, cost of goods oods sold (COGS), ( (C • Inventory: cycle count and physical inventory tments, receiving transactions, ns, ddelivery transactions, intercompany transfers, sales adjustments, rder issues, internal intern requisitions, subinventory transfers order Cos distribution of labor and non-labor, revenue • Projects: Cost Receivab • Receivables: Invoices, payments, adjustments, debit memos, credit memos, cash, char chargebacks, realized gain and loss • Payroll: Salary, deductions and taxes

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Basic Journal Entries Chapter 4 - Page 8

Performing Journal Entry Functions

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Performing Journal Entry Functions nd Oracle Web A Using Oracle General Ledger, Oracle subledgers, and ADI, you can perform the following journal entry functions: ral Ledger or use see Web ADI to enter journals from a • Create journal entries in Oracle General spreadsheet. • Import journal entries • Post journal entries information tion and nd d journal entries • Inquire on accountt informa • Drill down to subledgers orts • Run reports verse journal entries entri • Reverse

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Basic Journal Entries Chapter 4 - Page 9

Journal Entry Types

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Journal Entry Types he following types type of journal entries: Within Oracle General Ledger, you can work with the use for most accounting • Manual Journal Entries: The basic journal entry type is used ments and reclass assificat transactions. Examples include adjustments reclassifications. rsing journal entri tries are create • Reversing Journal Entries: Reversing entries created by reversing an existing se any any journal entry ent ntry and post it to the current or any future journal entry. You can reverse open accounting period. ng journal entries entries are defined once, then are repeated • Recurring Journal Entries: Recurring quent uent accounting g period p you gene for each subsequent generate. You can use recurring journal entries utomatic consolid ing and elimin to define automatic consolidating eliminating entries. Examples include intercompany ad debt expense, aand periodic odic ac debt, bad accruals. assAllocations: MassAllocations M • MassAllocations: are journal entries that utilize a single journal entry alloc balances across a group of cost centers, departments, divisions or other formula to allocate E segments. Examples include rent expense allocated by headcount or administrative costs allocate by machine labor hours. allocated

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Basic Journal Entries Chapter 4 - Page 10

Journal Creation Methods

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Journal Creation Methods Manual Journal Entries nal. • Organization Need: Create adjusting journal. manuall manually ally. lly. • Procedure: Enter debits, credits, and accruals manually. • Reversing Entries see errors errors and revaluation reva valuation journals. journals • Organization Need: Reverse hee journal encumb mbrance and accru mbrance • Procedure: Reverse the encumbrance accrual amounts of a preexisting journal entry. ntries • Recurring Entries zation ation Need: Create Crea journals nals usin • Organization using fixed variable amounts and complex formulas. ate multiple journ th the same or similar information. Create journal entries with • Procedure: Crea Create journals using skeleton, standard, or formula template. MassAlloc • MassAllocations Organ • Organization Need: Allocate from one account to many by using a single formula. P • Procedure: Calculate journals by using an allocation formula.

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Basic Journal Entries Chapter 4 - Page 11

• • • • •

Journal Import Organization Need: Integrate Oracle General Ledger with other applications. Procedure: Import journal entry information from feeder systems. Journal Wizard Organization Need: Integrate Oracle General Ledger with an Excel spreadsheet for journal creation. • Procedure: Upload journal entries from an Excel spreadsheet.

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Journal Components

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Journal Components Every journal entry belongs to a batch. You create a batch of journal entries by entering a h. This step is optional. opt name, control total and description for the batch. If you do not enter batch atically creates on one ba information, Oracle General Ledger automatically batch for each journal entry, defaulting the name and the latest open period. pe • All journal entries in a batch share the same period. descript iption ption are optional. optiona • Entering a batch control total and description ou must must recall th • If you do not enter a batch name, you the journal entry by date. tion is stored in th the GL_JE_BAT • Batch information GL_JE_BATCHES table. mpanies use standard stan co Note: Most companies naming conventions for batches and journals to easily ho entered the jou he pu identify who journal and the purpose of the journal entries. An example would be: al today's date. Accrual ournal Header Information I Journal • The head header information identifies common details for a single journal entry, such as name, effec effective date, source, category, currency, description, and control total.

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Basic Journal Entries Chapter 4 - Page 13

Group related lines into journal entries • All lines in a journal entry must share the same currency and category. • If no journal entry-level information is entered, Oracle General Ledger assigns a default name, category, and the functional currency. • Header information is stored in the GL_JE_HEADERS table. Journal Line Information • Journal lines specify the accounting information for the journal entry. • Total debits must equal total credits for a journal entry for all journal entries except budget journal entries and statistical journal entries. • Description for each line can be entered optionally. • Information for journal entry lines is stored in the GL_JE_LINES table.

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Grouping Journals into Batches

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Grouping Journals into Batches ed, d, you can enter a journal directly without • The use of journal batches is optional. If desired, Journa window. A batch name is creating a batch by selecting New Journal in the Find Journals ined ned with a batch chh ID aand system date as in Manual created for you using the source combined . ted number of journal jo • Batches can contain an unlimited entries. atch must share share the th same accounting accoun • All journal entries in a batch period. You can enter rrent or future future enterable en account journals only in a current accounting period. th current accounting accou Note: If you enter a period prior to the period and the user profile Journals: riod Notification is set to Yes, General G Enable Prior Period Ledger displays a message indicating ournal. that you are entering a prior pperiod journal. • If you post one jour journal entry, the entire batch posts. • When using th the reversing functionality, you can choose to reverse all the entries in a batch or just one journal. c post journal entries with unbalanced debits and credits if Suspense posting is • You can e enabled. The difference is posted to the suspense account. If suspense posing is not

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Basic Journal Entries Chapter 4 - Page 15

enabled, you cannot post an unbalanced journal entry except for statistical or budget entries which do not have to be balanced to post. How to Create a Journal Batch 1. Open the Find Journals window. (N) Journals > Enter (B) New Batch 2. Select the New Batch button. The Batch window appears. 3. Enter the following information: Batch Demo Computer Purchases and Sales Period Select the latest open period Control Total 220000 (This field is optional) 4. Select the Journals button to enter a journal header and journal lines. 5. Enter the Journal Header information: Journal Demo Computer Purchase Category Addition Currency USD 6. Enter the following journal lines: Line Account Debit Credit Description 10 01-000-1560-2113-000 85000 Computers and Software 20 01-000-1110-2113-000 5000 Cash ble le 30 01-000-2210-2113-000 80000 Accounts Payable

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7. Save. In the Decision window, select Yes to save the journal entry, even though ther there is a control total violation. d journal entry entry wi 8. In the Header level, select the New icon to create a second within this batch. 9. Enter the following header information: omputer mputer Sales Name Demo Computer enue Category Revenue USD Currency jo entry: 10. Enter the following information for the second journal Debit itt Credit Line Account Description 113-000 135000 13 10 01-000-1210-2113-000 Accounts Receivable 10-2113-000 1350 20 01-420-4110-2113-000 135000 Revenue 11. Save your work.

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Basic Journal Entries Chapter 4 - Page 16

Manual Journal Entries

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Manual Journal Entries rency when you oopen the Enter Journals Your functional currency appears as the default currency window. • Foreign Currency Journal Entries specify y the th currency you y want to use and enter - To enter a foreign currency journal, specify conversion information. an be Spot, Corpo porate, User, or other porate, o - Conversion type can Corporate, defined type. te must be within in the accounting accounting period defined for the journal entry. - Conversion date onversion rate if you enter enter User as the conversion type. - Enter a conversion • Statisticall Journal Entries statis ent select STAT as the currency for the journal entry. - To enter a statistical journal entry, j - Statistical journal entries can be "one-sided" entries. The debits do not need to equal credits for the journals to post. Co - Combined Currency and Statistical Amounts - You can enter a statistical journal entry by itself or combined with currency journal amounts.

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Basic Journal Entries Chapter 4 - Page 17

- Set the Journals: Mix Statistical and Monetary profile option to Yes. - Define a statistical unit of measure for any natural account segment values you want to combine statistical and monetary journal entries. - When entering the journal lines, use debit and credit amounts for any monetary currency. In the Statistical Amounts region, enter the statistical quantity. • Intercompany Journal Entries - Enter the intercompany transaction. General Ledger automatically creates the balancing intercompany journal lines based on the accounts you defined in the Intercompany Accounts window. How to Create a Manual Journal Entry 1. Open the Batch window. (N) Journals > Enter (B) New Batch 2. Enter the Batch and Period. 3. (B) Journals 4. Enter data for the following fields: Journal Period Category Currency Description 5. Enter journal line information. 6. Save your work. o not equal equal the cre 7. Select Yes to close the message box telling you that the debits do credits. One-sided journal entries can be posted when the currency iss STAT.

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Basic Journal Entries Chapter 4 - Page 18

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Performing Additional Journal Actions

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Performing Additional Journal Actions You can use the More Actions window to perform additional journal activities. try ry or batch. Selec Reverse Journal: You can reverse a journal entry Select a reversal period if prompted. Credit or Changee Sign. Select the reversal method: Switch Debit/Credit hange the period od of any entry. entry Change Period: Select this button to change concurrentt pprocess to post a manual journal entry and Post: Select this button to launch the concurrent sting is availablee in the More Ac update account balances. Posting Actions window only if the profile Jo s to Yes. option Journals: Allow Posting During Journal Entry is set entr tries by navigating navigatin to the Post Journals window. Note: You can also post journal entries (N) Journals > Post. ction: If you enab y co Funds Action: enable budgetary control for a ledger, you have the following additional ns available for m actions manual journal entries: • Check funds • Reserve funds Vi results • View

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Basic Journal Entries Chapter 4 - Page 19

Posting Journals

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Posting Journals You have three methods to post journal batches. g Batch Posting: Navigate to the Post Journals window to post a group of journal batches. (N) Journals > Post tions button from m either the Jou Manual Posting: Select the More Actions Journals window or the Batch ntr try. y. This option is i available only if the profile window to post a journal batch att the time of entr entry. ing ng During Journal Journa rnal nal Entry has been bee set to Yes. When you post option Journals: Allow Posting ll journals jourrnals in a ba journals, Oracle Generall Ledger posts all batch. You cannot post individual journal entries in a batch. ons (N) Journals > Enter (B) More A Actions prog Automaticc Posting: Run the AutoPost program to post journal batches automatically based on a ule you define. schedule N) Setup > Journ (N) Journals > AutoPost Posting Journ Journal Batches You can post actual, budget, and encumbrance journal batches.

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Basic Journal Entries Chapter 4 - Page 20

The Posting Status for the batch must be Postable and the Period Status must be Open for the following balance types: • Actual: Open period • Budget: Periods in an open budget year • Encumbrance: Any period up to the last period in the latest encumbrance year If applicable, check the Control Total for the journal entry batch. General Ledger does not post journal batches if the total entered debits do not match the control total for the batch. Correcting Batch Posting Errors Review the batch to identify the posting error. Common explanations for unpostable batches include: • Control total violations • Posting to unopened periods • Unbalanced journal entries Correct the specific error and post the batch from the More Actions window. Posting Status • Unposted • Pending • Processing • Selected for posting • Posted • Error How to Post Journal Entries 1. Open the Find Journal Batches window. (N) Journals > Enter 2. (B) More Actions 3. (B) Post 4. Note the concurrent request ID number. 5. Select OK in the Note window. 6. Open the Post Journals window. (N) Journals > Post ches hes window, find nd your batch. 7. In the Find Journal Batches x. 8. Select the check box. 9. (B) Post requ ID D number. 10. Note thee concurrent request ect OK to close tthe Note window. dow 11. Select

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Basic Journal Entries Chapter 4 - Page 21

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Basic Journal Entries Chapter 4 - Page 22

Data Access Set Impact to Posting

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Basic Journal Entries Chapter 4 - Page 23

Posting to a Prior Period

y m e d a c A e l c a r O ly & On l a e n r s e t U n I e l c a r O Posting to a Prior Period eriod, as well as tto a prior fiscal year, as You can post journal entries to a prior accounting period, long as the prior period is open. When you postt to a prior period period, General Ledger automatically quent periods eve ven if the period is closed. In updates the beginning balances of all subsequent even prior year, General Ge Ledg adjusts your retained addition, if you post a journal entry intoo a prior Ledger our income andd eexpense accoun earnings balance for the effect on your accounts. ty for an accounti nting period, simply simp close the period to prevent When you finalize your activity accounting ditional journal entries. en the entry or posting of additional Displaying Warning Messages ou do not accidentally acciden ally enter a jo To ensure that you journal for a prior period, you can require dger to display a message m whenev you try to enter a prior period journal. To use General Ledger whenever ture, ure, have your system sy t this feature, administrator set the profile option Journals: Enable Prior Period fication to Yes. Notification Having many ac accounting periods open affects the time required to run the posting program. Therefore, keep k the number of open accounting periods to a minimum. Also, minimizing the number of open periods prevents errors in posting to an incorrect period.

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Basic Journal Entries Chapter 4 - Page 24

You should run a Trial Balance Report whenever you post to a previous fiscal year to ensure that your Retained Earnings account is properly reconciled.

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Overview of AutoPost

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Overview of AutoPost To facilitate journal batch posting, you can schedulee automatic postin posting based on parameters ts that include a rrange of journal effective dates you specify. You can define multiple criteria sets and multiple AutoPost priorities. urnal Import, Imporrt, you ou routinely post p journal entries from For example, suppose after running Journal osting these batch Payables to record your payments.. To automate pos posting batches, you can define a set of ournal entries wit with a source of P criteria to select all unposted journal Payables, a category of Payments, ual for all periods. periods ds. You can then schedule the AutoPost program to and a balance type of Actual racle General General Led run at the beginning off each week. Ora Oracle Ledger automatically selects and posts your tee your cash balances. bal Payables paymentt batches to updat update

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Basic Journal Entries Chapter 4 - Page 26

Defining AutoPost Criteria Sets

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Defining AutoPost Criteria Sets utomatically tomatically post journal j You can define multiple AutoPost criteria sets to automatically entries. For each ches for posting bbased on: criteria set, you can choose to select journal batches • Journal source • Journal category • Balance type • Period • Effective date riority of the crite eria ria set. The pri You can set the priority criteria priority number must be a value from 1 to 99, lo where 1 is thee highest priority and 999 is the lowest. Batches with higher priorities are posted mb more than once. You can also select whether all first. Youu can use the same priority number ity sets are consid priority considered for posting or only sets with a specific priority number: P • Submit All Priorities in Order: Submits the batches for all of your AutoPost priorities in the same AutoPost run based on priority number. Sub • Submit Only Priorities with Batches in Order: Submits batches with a specific priority number only.

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Basic Journal Entries Chapter 4 - Page 27

Note: Select this option when you need to balance the load on your concurrent manager. This may be necessary since a single AutoPost request that contains multiple priorities can result in numerous instances of the Posting program running concurrently. The load on the concurrent manager is increased further if a large number of journal batches are selected by your AutoPost priorities.

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Running AutoPost

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Running AutoPost utoPost program to select and post any Once you define an AutoPost criteria set, run the AutoPost journal batches that meet the specified criteria. You can run the AutoPost program from: (N) Setup > Journ urnal rnal > AutoPo • AutoPost Criteria Sets window: (N) Journal AutoPost nter the AutoPost ost st criteria criteria set name nam in the Parameters window. • Submit Request window: Enter ution Report to ve verify the journal batches selected for posting. verify Review the AutoPost Execution

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Basic Journal Entries Chapter 4 - Page 29

Performing Online Inquiries for Accounts and Journal Entries

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urnal rnal Entries Performing Online Inquiries for Accounts and Journal Oracle General Ledger provides three windows to view detail and su summary information for edger accounting transactions: your account balances, journal entries, and subledger • Account Inquiry • Journal Inquiry • Journal Enter urnals window or the Account In Whether you start in the Journals Inquiry window, you can take ical cal view of underlying under derlying accounting accountin information for your transactions by advantage of the graphical count and Activit ity Summary wi accessing the T Account Activity windows. You can also drilldown to see the actions that created creat the journal entries. e subledger transactions

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Basic Journal Entries Chapter 4 - Page 30

Performing Account Inquiry

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Performing Account Inquiry get, and encumbra Use the account inquiry feature to view actual, budget, encumbrance account balances for a specific period or periods in either entered or balance level rep reporting currencies. ss the the type of account acc ccount information you want to view: You can select one of three buttons to access nd YTD account nt balances by period p • Show Balances: Displays PTD and for both detail and summary accounts. ists all all the journa rnal nal batches batches and eentries that affect the account • Show Journal Details: Lists journal dow own to the full journal jou balance. From here you can drill down entry and subledger transaction. e: Displays actual al vs. budget orr eencumbrance amounts and the variance for • Show Variance: D, YTD, and PJTD (project-to-date) project-to-da time periods. project-to-da PTD, QTD, ispla balances from posted journal entries. To get the Note: The Account Inquiry window displays accoun balance information, be sure all journal entries are posted. most up-to-date account A How to Perform Account Inquiry 1. Open the Account Inquiry window. (N) Inqu Inquiry > Account 2 Enter the following selection criteria for Accounting Periods: 2.

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3. 4.

5. 6. 7.

From JUN-03 To Current period Accept the defaults for Currency and Primary Balance Type In the Accounts region, use the Find Accounts window to enter a range of accounts: Segment Low High Account 2210 2210 Sub Account 0000 2113 Select account 01-000-2210-2113-000 and then select the Show Balances button. In the Detail Balances window, put your cursor on the line for the current period. Select the Journal Details button to view the journal information for this account. Select the Show Full Journal button to drill down to the journal entry that created this information.

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Reviewing Balances with Account Inquiry

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Reviewing Balances with Account Inquiry gate from summary summ When you perform an account inquiry, you can navigate account balances to ptions tions to move bet detail balances. You have several navigation options between summary and detail information: u can drill down to t the journa • From detail account balances, you journal entries that make up the k up to the summa mary account bala account balances or drill back summary balance. furth rthe therr to review the subledger transaction by • From the journal entry, you can drill further wn button, button, whenn available. selecting the Drilldown consolida consolida idated dated journal batch, bat you can drill further to see subsidiary • If drilling downn from a consolidated ry y details and subledger sub dger transactions. transacti transacti journal entry The button, Drilldown to [subsidiary on if youu are reviewing re ledger name], appears only consolidated balances in your parent ger. ledger.

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Reviewing Variances Between Account Balance Types

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Reviewing Variances Between Account Balance Types (N) Inquiry > Account > (B) Show Variance ry and secondaryy account type, such as: You can compare balances between any primary • Actual and budget • Budget and budget • Actual and encumbrance ry y and secondaryy balance balance type and an select a budget or encumbrance You must specify a primary are re balance amoun unts. type in order to compare amounts.

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Drilling Down to Subledger Details

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Drilling Down to Subledger Details nal Entry, and Journal Jou You can drill down from the Account Inquiry, Journal Inquiry windows. journa entry, then select the • From the Account Inquiry window, drill down to the journal nsactions sactions button. n. Drilldown button, then the Show Transactions urnals windows,, review r jo • From the Journal Inquiry and Journals the journal entry and select an ournal entry. entrry. Select Sele elect Drilldown from fr account combination in the journal the Tools menu. ubledgers if the journal j entry wa You can only drill down to subledgers was generated from one of the gers: Payables, Receivables, Receivabl R es, Inv following Oracle subledgers: Inventory, Assets (except depreciation), g,, and Work in Process. Pr Projects, Purchasing, les, you can see ddetailed iled inform • For Payables, information about payments and invoices. c see detailed ailed information about invoices, receipts, adjustments, or • For Receivables, you can ash applications. cash Inventory Assets (except Depreciation), Projects, Purchasing, and Work in Progress • For Inventory, you can ssee the detailed information about transactions. Note: In order to drilldown to subledger transactions, you must enable the Import Journal Refe References option for each journal source in the Journal Sources window.

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Note: If your implementation uses Multiple Organizations, you see only subledger transactions that are associated with your current responsibility's organization (MO: Operating Unit profile option). For more information, refer to the Oracle General Ledger User Guide.

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T Accounts and Drilldown

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T Accounts and Drilldown ng entries in a gra You can view journal entries or subledger accounting graphical format using the T Account and Activity Summary windows. You access these windows from: Enter Journals Window M) Tools > T Accounts Acc ccounts (B) T Accounts Acc (N) Journals > Enter (B) Find (M) Journals Window B) Find (B) Review Revie view Journal (M) Tools > T Accounts (B) T Accounts (N) Journals > Enter (B) quiry uiry Window Journal Entry Inquiry (N) Inquiry > Journal > (B) F Find (M)) Tools > T Accounts nt Inquiry Window Account N)) Inquiry > Acco (N) Account (B) Show Journal Details (M) Tools > T Account or (N) Inquiry > A Account (B) Show Journal Details (B) Drilldown > (B) Show Accounting Transactio (B) T Accounts Transactions Acco Accounting information is viewable in two different formats that can be customized:

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• T Accounts: Displays journal entries or subledger accounting entries in a graphical T Account format including account, activity detail, net activity for the entry and account balance information. • Activity Summary: Displays journal entries and subledger entries in a trial balance format including account, net activity for the entry, and account balance information. The Activity Summary and T Accounts windows are for display purpose only. You cannot update records from these windows. Drilling Down to Subledgers Using the Tools menu, you can also drilldown to originating transactions in Oracle subledgers.

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Display Options Available While Viewing

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Display Options Available While Viewing ubledger accounting accounti windows, the Options The first time you try to access the T Accounts or subledger window opens the next time you choose to view window appears. You can then specify which window Accounts, Activit vity Su accounting information. You can set the T Accounts, Activity Summary, or Options window as the default window. mize the T Accounts Accoun ounts unts and Activity Summary windows to Use the Options window to customize ca choose to vie display the exact information you want. You can view: tion by full accounting accou ounting flexfield flexfield or summarized by account segment. • Accounting information ption, balances, entered e amount and activity in the T Accounts window. • Account description, amounts, escription, balanc • Account description, balances, entered amo amounts in the Activity Summary window. tss and credits in se umn or as a net amount in the Activity Summary • Debits separate columns indow. window. The Options, T Ac Accounts, and Activity Summary windows are all linked. From any of these windows, you can access the other two windows by clicking the appropriate button.

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T Accounts

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T Accounts Use the T Accounts window to view journal entries in a graphical T Account format. General ry, such as accoun Ledger displays information for the journal entry, accounts, activity details, net activity entered and funct nctiona ctiona currency. Customize the for the entry, and account balances in both entered functional display to meet your inquiry needs. vity Summary How to Use T Accounts and Activity ch Name field and an nd select select the Fin 1. Enter Demo% in the Batch Find button to retrieve the Demo and Sales journal al batch. Computer Purchase and (N) Journals > Enter b on. 2. Select the Review Journal button. 3. Selectt a journal line an and navigate to th the T Accounts window. Accoun (M) Tools > T Accounts Option window, select the Segment radio button in the Organize By region. Select 4. In the Options Com the Company and Account segments from the List of Values. Sel the T Accounts button to view a graphical t-account display of the accounting 5. Select information.

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6. From the T Accounts window, select the Activity Summary button to view the same information in a trial balance format. 7. Select the Options button to return to the Option window.

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Activity Summary

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Activity Summary The Activity Summary window contains a view of the accounting en entry, summarized by de and credit amounts by account in a trial balance format. This columnarr layout groups debit ransaction. account to provide a high-level view of the transaction. In this window, you can: columns ns with separate columns for entered and • Display debits and credits in separate columns functional currency, or ount of debits andd credits in one ccolumn. • Display the net amount

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Reversing Journal Entries

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Reversing Journal Entries You can create reversing journal entries to reverse accruals, estimate estimates, temporary adjustments and reclassifications, or correct errors. ys: You can reverse a journal entry in two ways: versed by switching switchi ching hing the the debit and credit amounts. • Switch Dr/Cr: Journal entry is reversed ch the orig • Change Sign: Journal entry is reversed by changing original journal amounts from positive to negative. onc nce. You can rev A journal entry can be reversed only once. reverse a reversing journal entry. h responsibility ca an reverse journal journ entries directly from the Enter Journals or You control which can brance rance window by excluding luding the function called Enter Journals: Reverse from the Enter Encumbrance ility's lity's menu. responsibility's rsing Journal Bat Reversing Batches • You can reve reverse a single journal entry or an entire batch of journal entries. When you reverse a batch, General Ledger creates a reversing batch with a reversing journal entry for each journal entry in the original batch.

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• General Ledger uses the reversal method assigned to the journal category in the Journal Reversal Criteria window.

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Creating Reversing Journals

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Creating Reversing Journals You have two options for manually selecting journall entries for reve reversal. You can create the nerate the reversa reversal immediately or enter the period and generate reversal later. ately tely reve reverse rse any y posted p Use the More Actions window to immediately or unposted journal entry or nterable period. batch in the current period or future enterable ore re Actions (N) Journals > Enter (B) Review Journal (B) More view Batch (B) More view M (N) Journals > Enter (B) Review Actions indow to definee a reversal reversal perio Use the More Details window period for a journal entry. Then, select the ater ter time, to be reversed rev eversed in the Reverse eversed Re journal entry at a later Journals window. ew Journal urnal (B) M (N) Journals > Enter (B) Revi Review More Details w ene Use the Reverse Journals window to generate reversal journals with a predefined reversal d, such as monthly monthl accruals, that need to be reversed at the beginning of the following period, eriod. period. (N) Journals > Generate > Reversal Note: If you select the Reversal button in the More Details Window, the reversing journal will be ccreated immediately.

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Reversing Journals Automatically

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Reversing Journals Automatically If you routinely generate and post large numbers off reversing journal entries as part of your counting periods monthly procedures for closing and opening accounting periods, you can use the Automatic utomate the proce cess. T Journal Reversal feature to save time and automate process. This feature automatically an automatically automat reverses your previous month's accrual journal entries and post them, if desired. ionally AutoPost st Reversal, optio • Enable AutoReverse, and optionally options for journal categories. egories gories with Auto toReverse enable • Enter journals using categories AutoReverse enabled. tic ic Reversal Reversal prog ogram by: • Launch the Automatic program m the Submit Req - Submittingg a request from Request window to run the Automatic Reversal am for all journals journal that hat meett the submission requirements, or program L: La - Setting the profile option, GL: Launch AutoReverse After Open Period, to Yes. When you open the next period, the AutoReverse program finds all journal entries that have categories with AutoReverse and, optionally AutoPost, enabled. It creates reversing journ journal entries and, optionally, posts them.

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Journal Reversal Prerequisites

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Running Journal Entries Report

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Integrating with Oracle General Ledger

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Integrating with Oracle General Ledger ing ng all of the the Mic You create your journal entries in a spreadsheet, using Microsoft Excel features that oad your journal eentries from Web ADI to the you are familiar with. When you are ready, upload he Jou GL_INTERFACE table. From the interfacee table, submit the Journal Import process to create postable journal entries. Journal import can be submitted inn three ways: ame time you sub ubmit the upload process • From Web ADI, at the same submit separate submis mission ission process • From Web ADI as a separate submission the Import Journals Journal window. • From General Ledger using the urnal entries have been n validated validated by Oracle General Ledger, unposted journal When your journal edd in the Enter Journals window in General Ledger. entries are created and can be reviewed

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Web Applications Desktop Integrator Overview

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Web Applications Desktop Integrator Overview ality lity to the desktop where the familiar Web ADI brings Oracle E-Business Suite functionality c Microsoft Excel, Word, and Project applicationss can be used to complete your Oracle EBusiness Suite tasks. soft oft Excel enables les es you to brin The Web ADI integration with Microsoft bring your E-Business Suite ar data entry entry and nd modeling techn data to a spreadsheet where familiar techniques can be used to uite tasks. You can c create forma complete Oracle E-Business Suite formatted spreadsheets on your w, edit, and create Oracle E-Business Suite data. Use desktop that allow you to download, view, such uch as copying and an pasting pasting or dr data entry shortcuts (such dragging and dropping ranges of cells) or amounts to save time. You can combine speed and accuracy by Excel formulas to calculate amounts fiel within thin the spreadsheet. sp invoking lists of values for fields After editing the spreadsheet, you can f y to validate the data before uploading it to the Oracle Euse Web ADIs validation functionality ness Suite. Validation Valida Business messages are returned to the spreadsheet, allowing you to identify nd d correct invalid data. and All business rrules these users encounter in the main application are enforced within the Web ADI work worksheet. For example, if the wrong cost center is entered for a journal, the data will not co be committed to the database; a message will be returned directly to the worksheet where the

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invalid data exists; the user can then quickly make the correction and save their Excel data to Oracle General Ledger.

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Web ADI Core Functionality

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Web ADI Core Functionality Layout Features • Remove and add fields to a Layout: Userss are only presente presented with the fields they need, vigation paths between vigation bet resulting in simpler UI and shorter navigation needed fields increases productivity. he Layout: The UI U can conform to t your business process. If • Indicate field placement in the n order will quicke cken ken entry, entrrry, y, then fi fields in the UI can be ordered in a entering data in a certain quicken similar way. ltt value to a field d in a Layout: Sa • Assign a default Save time by having default values lly ly populate the ddocument cument when it is generated. cument automatically he layout: Layouts Layout can be define • Save the defined by one with the appropriate responsibility, then ed by the entire ssite. used ext Import Featur Text Features • Import text te file data into a document on the desktop (i.e. Excel worksheets): Move data from legacy or third party systems into Oracle Applications. The data will be accurate since it will move through the desktop document allowing for edits, then validated before

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it is uploaded. Data conversion from other systems is simplified by eliminating the need for custom SQL scripts. • Create Mapping Templates which can be modified and re-used: Change where data is moved on the fly. Accommodate organizational changes and data restructuring by the easy creation or modification of mapping templates. Security Features • Attach Web ADI functions to a menu: Create customized points of access which act as security profiles. • Attach a menu to a responsibility that is assigned to users: Restrict Web ADI access on the user level. • Add default parameters to a self service link: Force users to use predefined parameters when generating a document on their desktop. • Attach form function to a user's menu to grant access to an integrator: Determine the desktop functionality within Web ADI to which a user has access. Internet Computing Features • Centrally Deployed: The client needs only a browser and Excel to operate the product. • Runs on the Web: The client/server ADI installs everything to the PC, including all of the business rules. The move to a web architecture means that the business rules are now ta installed on the middle tier. So when Web ADI communicates with the database, only data is sent.

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Desktop Integration Via Web ADI

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Desktop Integration Via Web ADI he desktop is dete The Oracle E-Business Suite task you perform on the determined by the integrator vered ered with the E-Business E-B you select in Web ADI. Each integrator is delivered Suite product that p. provides the functionality being integrated with the desktop. eatures General Ledger - Journals Integrator Features sheet-based journal journal journ n entry worksheets worksh • Automatically builds spreadsheet-based based on a definable layout. nal entry by copyi pying ying and pasting pasting journal lines, then making incremental • Enables quick journal copying modifications. journa templates emplates which wh you can modify and upload repeatedly. • Allows youu to define journal alidation of accounts acco enfor • Full validation with enforcement of security and cross validation rules, as well as other reference fields. journal into Oracle General Ledger through the General Ledger open interface. • Loads journals Conform to Oracle General Ledger Euro compliance rules. • Conforms Pro • Provides lists of values for fields (including KFFs and DFFs) within the spreadsheet.

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General Ledger - Budgets Integrator Features • Automatically builds budget worksheets, based on the budget elements you define in Oracle General Ledger. • Creates budget worksheets for any open budget period range. • Provides a flexfield pop-up window to assist entering and validating new budget accounts. • Enforces segment value security in budget worksheets. • Limits the accounts that are downloaded. • Creates graphs of your budgets and actuals using a variety of graphing styles, including bar graphs, line graphs, and even 3-D area graphs. • Provides budget notes to add descriptions to accounts and amounts in your budget. • Create Assets Integrator and Physical Inventory Integrator Features • Use the Layout feature to define personalized asset worksheets. • Allows spreadsheet cut, copy, and paste functionality. • Provides Lists of Values for easy access to valid field information. • Maps data files into asset worksheets when used in conjunction with the Import Text File feature. • Full validation of accounts with enforcement of security and cross validation rules, as well as other reference fields. • Posts assets to Oracle Assets through the Mass Additions table. HRMS Integrators Features ata from • Oracle HRMS delivers a number of Integrators that support download of data various windows and folders. • Another delivered Integrator provides both download and upload support for salary proposals and administration. • In addition, a system administrator can configure Web ADI for HRMS to download data databa by setting up from any other HRMS window or directly from the application database, new Integrators as required.

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Administering Web ADI

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Administering Web ADI int System Administrators can also edit mappings and layouts for all integrators. Implementation Methods n follows one off two m • Generally, the product implementation methods: spreadsh spreadsh sheet functionality functiona - The product integrates the generate spreadsheet within its own i the backgrou functional page flow. Web ADI is usedd in background to generate the spreadsheet. mmon method. This is the most common rovides a self-ser ervice menu item that invokes the Web ADI Create - The product provides self-service Documentt page flow.

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Creating Web ADI Spreadsheets

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Working With Web ADI Spreadsheets

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Working With Web ADI Spreadsheets Viewing Data eet allow you to to ttoggle on and off the views of • The toggle bars at the top of the spreadsheet and Lines. Web ebb ADI enables you to turn on each of the sections: Context, Header, and ne items. This iss useful when your spreadsheet contains Microsoft Excel filtering on the line many rows of data. Multiple Worksheets multip tiple worksheets worksheets if your product integrator is defined to • Your spreadsheet may contain multiple ple le worksheets or if your downloaded downlo generate multiple data exceeds 64,000 rows, multiple lly created. If your spreadsheet contains multiple worksheets will be automatic automatically heets, eets, then at upload uplo time you will wil be presented the options of Upload or Upload worksheets, l.. Upload will upl All. upload only the current worksheet. Upload All will upload all worksheets. Graph Viewing Graphs • If you your integrator supports graphs, your spreadsheet will include additional graphing op options.

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Defining Web ADI Layouts

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Defining Web ADI Layouts Layouts enable you to customize the user interface presented in your spreadsheet. Use the t layout functionality to determine the fields in a spreadsheet, set their positions, and specify default values for the fields. spreadsh dsheet sheet in the Create C A layout must be available before you create a spreadsheet Document flow. Some ts, s, or you can use use the procedure described d integrators offer predefined layouts, in this chapter to create a layout. predef p ffined ined and preselected. p Therefore you cannot Note: For some products,, the layouts aree predefined yout during docum yout ument creation. select an alternate layout document our ur User is assign d the System A Note: Unless your assigned Administrator responsibility, you must be ess to an integrator integrato to modify dify its layout. Specific form functions grant access to granted access specific integrators.

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Defining Web ADI Mappings

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Defining Web ADI Mappings du You can choose to automatically import data into thee spreadsheet during the Create Document ontent page, Web ADI prompts you to select a ontent flow. When you choose to import data on the Content determine wheree imported impo i mapping. Web ADI requires a mapping to determine data should be placed in the spreadsheet. w columns in the spreadsheet. You do not Mapping associates columns in thee imported data with o if a mapped field is not need to create new mappings for fields that doo not have data, or et. You need to create crea cr te multiple mappings m included in the spreadsheet. for Content only if the he downloaded columns c associations between the and the fields in the spreadsheet change. If you sttructures, you may m have to define more than one mapping for import text files with varied data structures, each text file variation. o not modify Con wn Note: Do Contents that download data from the Oracle E-Business Suite. e: To modify an integrator's mappings, you must be granted access to the integrator or have Note: Adm the System Administrator responsibility.

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Defining Web ADI Style Sheets

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Defining Web ADI Style Sheets g properties for th The Style Sheet enables you to define the following the Sheet, the Prompts, the Hints, and the Data fields: • Background color • Font color • Font Family • Font Style • Font size reate Style Sheet Sheet page using the Define Style Sheet link. This may be under Navigate to the Create ntegration responsibility, respon ty, or it may m be located under a different responsibility the Desktop Integration istr assigned to you by your sy system administrator. ct a Read Only co Select color to apply to the background of read-only fields. Read-only fields take propertie of Data fields. Use the color picker to select a color, or for additional color the font properties options, you can enter the hexadecimal value for the color in the field provided (for example, #A5 enter #A52A2A for brown).

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Defining Web ADI Setup Options for Key Flexfields

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ds s Defining Web ADI Setup Options for Key Flexfields on and zero padd Web ADI provides the option to set right-justification padding for every segment of a lue set level. key flexfield, regardless of this setting at the value er format maskss aafter a segment value has been Lists of values for flexfields apply character right--justify -justify andd zero z selected. These format masks such as right-justify padding and maximum character inition. nition. Use the W width are derived from the flexfieldd value set defini definition. Web ADI Setup Options specified in the value va v lue set definiti feature to override the values specified definition. ngg from client server serv erver ADI, this this provides pr Note: If you are migrating the equivalent functionality to the Zero Pad Accountt Values feature..

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Uploading and Downloading Data from Web ADI Spreadsheets

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Manage Document Links Uploading Data t,, you you can upload the data to Oracle Applications. After creating and modifying your spreadsheet, To upload data: t, choose Upload ad d from the Oracle Orac menu. The Upload 1. While viewing your spreadsheet, s. Parameters window appears. meters. Upload parameters pa p rameters depen 2. Select the desired parameters. depend on the integrator you select. stem administrator administrato ator might disallow disallo you from changing upload Moreover, your system ng the Web ADI: I: Allow Allow Set Para parameters using Parameters profile option. 3. Start the upload process. A After the upload process completes, the upload window indicates her or not the uplo ccess whether upload was successful. Web ADI returns messages to the spreadsheet dentifying all rows row containing invalid values. If the data in any rows are invalid, Web identifying ADI does not uupload any of the data in the spreadsheet. You must correct all errors to successful upload the spreadsheet. Any errors that occur during the upload of a multisuccessfully w sheet workbook will also be displayed in a Summary Worksheet. The Summary W Worksheet enables you to see all errors and link to them. N Note: Not all spreadsheets support upload.

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Downloading Data Download enables you to refresh data that you have imported into your spreadsheet. This option is available only if the spreadsheet contains imported data. Note: Any new rows of data or other modifications that you have made on the spreadsheet will be overwritten when you use Download to refresh the data. Some product integrators may not allow refresh. If you imported data from a text file, Download will not be available.

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Identifying Web ADI Profile Options ADI functions functio in your system. These profile options can be set to control specific Web ADI

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Identifying Form Functions, Menus, and Responsibilities in Web ADI

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ponsibilities in Web ADI Identifying Form Functions, Menus, and Responsibilities Form Functions to omatically matically created. creat ated. Note Not that integrators are not This is a list of form functions that are automatically eir ir associated prod roducts. oducts. installed with Web ADI, but with their products. Menus enu is creat created ed with wi the following prompts: The Desktop Integration Menu CREATE_DOCU • Create Documentt (BNE_ADI_ CR CREATE_DOCUMENT) out ut (BNE_ADI_DEFINE_LAYOUT) (BNE_ADI_DEFINE_LAYO • Define Layout EFINE_ • Define Mapping (BNE_A (BNE_ADI_DEFINE_MAPPING) anage Document Links (BNE_ADI_LOB_MANAGEMENT) • Manage • Setup Options (BNE_ADI_SETUP_OPTIONS) S Define Style Sheet (BNE_ADI_DEFINE_STYLESHEET) Responsi Responsibility • The Desktop Integration responsibility is created with the Desktop Integration Menu.

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Basic Journal Entries Chapter 4 - Page 66

Overview of Importing Journal Entries

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Overview of Importing Journal Entries About Journal Import on from from other applications app pp • Use Journal Import to integrate information such as payroll, fixed assets ts with your General Ledger accounts receivable, accounts payablee and fixed import accou application. For each accounting period, you can im accounting data from these feeder jour urrnal entries. You can also use Journal Import urnal systems, then review, update and post the journal rom your previous previou previous ou accounting system. sy to import historical data from General Ledger lets you ltiple tiple interface tables. tab ables. This enables enabl you to customize interface tables import data from multiple equirements. Eac ach particul particular ar sou to your specific requirements. Each source/group ID combination will only have terface table at a time. Journal import im data in one interface will process data from one table at a time. mport subledger and feeder system ste data to General Ledger: • To import - Set up General Gene Ledger to accept Journal Import data by defining your ledger, currenc currencies, accounts, journal sources, and categories. You should also run the Op Optimizer program, and define your concurrent program controls. - Export data from your feeder system and populate the GL_INTERFACE table. Note: If you use reporting currencies and Oracle subledger systems, you must post to

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General Ledger from each subledger multiple times. Post first using your primary subledger responsibility, which transfers amounts denominated in your functional currency. Post next using each of your subledger reporting responsibilities, which transfers amounts denominated in your reporting currencies. Run Journal Import. If your import program converts your journal entries from other sources into the required data format, and all of the data is valid in your General Ledger application, then Journal Import should run successfully the first time. However, if you load data into the GL_INTERFACE table which is not valid in your General Ledger application, Journal Import informs you of the specific errors on the Journal Import Execution Report. Note: If you use reporting currencies and Oracle subledger systems, and have chosen not to run Journal Import automatically when posting amounts to General Ledger from your subledgers, you must run Journal Import manually in your primary ledger and in each of your reporting ledgers. Use the Journal Import Execution Report to review the status of all import journal entries. The Journal Import Execution Report prints a line for each journal entry source from which you are importing journal entries. If you encounter relatively few Journal Import errors, you can correct the data in the GL_INTERFACE table. If you encounter several Journal Import errors, you should delete the Journal Import data from the GL_INTERFACE table, and correct the information in your feeder system before rerunning Journal Import. Review the journal entries created by Journal Import before you post them. Post your Journal Import journal entries.

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Importing Descriptive Flexfields

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Importing Descriptive Flexfields Importing descriptive flexfields is optional. You can choose to import descriptive flexfieldss with or without validation. If importing with ines only if validation valid dation succeeds. validation, Journal Import creates journal lines xfield field information information on from Oracle subledgers, you must run If you want to import descriptive flexfield cle le General Ledger Ledge ger using the Imp Journal Import separately in Oracle Import Journals window. Choose ds with or without withouut validation. to import descriptive flexfields yss import descriptive descript ptive flexfield flexfield information inf Note: You should always with validation to avoid nes. corrupting journal lines. nal lines, lines, yo If you want to create summary jjournal you cannot import descriptive flexfields.

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Importing Journals

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Importing Journals (N) Journals > Import > Run avigate to the Import avigate Imp Journals window. Enter the To run journal import from General Ledger, navigate IDs, or sp specific Group IDs. You can use the source. You can choose No Group ID, All Group IDs, Group ID D exists in the interface table. Then select list of values for this field to determine if the Group ort rt program. the Import button to start the import te a report when the t transfer is ru Note: Oracle subledgers create run from the subledger that ort Group ID. You ou can view the output o displays the Journal Import in the Request window to locate the Group ID. urnal Import in parallel pa allel for several severa sources as long as each request corresponds severa You can run Journal nation. T to a unique Source/Group ID combination. The maximum number of combinations you can run me is 20. at one time acle General Ledger Led Oracle names the created batch with the following naming convention: User Suspense Posting

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• If suspense posting is enabled for your ledger, select the Post Errors to Suspense check box. Journal Import posts entries with invalid account combinations to a predefined suspense account or accounts, if you have defined one for each journal source and category. Typical account errors are: - Detailed posting not allowed. - Account disabled for this date. - Disabled account. - Account code combination is not valid. - Account code combination ID does not exist. • If you choose not to post errors to a suspense account, Journal Import rejects any source/group ID combination with account errors.

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Multi-Table Journal Import

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Multi-Table Journal Import Using Multi–Table Journal Import rnal Import Pack • General Ledger provides you with the Journal Package terface table and populate the (GL_JOURNAL_IMPORT_PKG) to create a new inte interface able. ble. In addition, addition,, yyou can crea GL_INTERFACE_CONTROL table. create your own procedures to l Journal IImport. This enables you to populate your interface table with data and to launch dure. automate the entire procedure. • Below are the steps to follow to use M Multi-Table Jour Journal Import: w interface table le. e. New interface tables must have the same columns as the - Create a new table. NTERFACE table but ut you can aadd d more if your needs require. GL_INTERFACE opulate the new iinterface table able w - Populate with data. - Populate the G GL_INTERFACE_CONTROL table with one record for each source/gro ID combination that was put into the interface table. Specify a table source/group name that the data is to be retrieved from for each combination. Specify what should b done with the data once it has been processed. be

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- Start Journal Import using the Import Journals window. Specify each of the source/group ID combinations that you want to import. If there are multiple tables, Journal Import will be launched multiple times. - If Journal Import indicates that the data is erroneous, then correct the data using the Correct Journal Import Data window or delete it using the Delete Journal Import Data window. If you choose to correct it, then start Journal Import again using the Import Journals window.

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Journal Import Group By Effective Dates Description

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tion Journal Import Group By Effective Dates Description cally group journa Journal Import now provides an option to automatically journal lines into journal entries based on effective dates. This functionality wass previously only available to customers using average balance processing. L Journa Journall Import ort: rt: Separate JJournals by Accounting Through a new profile option called GL Import: ournal lines intoo separate s journal by different accounting Date, you can choose to separate journal journals cludes journals or dates, even if using a standard ledger. This incl includes originating from Oracle subledger applications.

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Journal Import Group By Effective Dates Benefits

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Journal Import Group By Effective Dates Benefits By grouping and monitoring business transactions by date, rather tha than by accounting period: antt to account for your business transactions. • You have greater flexibility in how you want ounting period. You can account for them by effectivee date or by accou accounting compliancee with w the new Sarbanes-Oxley Act. • You facilitate financial auditing and compliance ve better information informat mati ation on that is updated upda on a daily basis. This • For DBI customers, you have tter business decisions deci cisions and react more quickly to opportunities. enables you to make better

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How to Set Up Journal Import Group By Effective Dates

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How to Set Up Journal Import Group By Effective Dates t: Separate Journa 1. Set the profile option called GL Journal Import: Journals by Accounting Date. L_INTERFACE ttable via Journal Import will be - If set to Yes, journals that pass the GL_INTERFACE ate. separated into separate journals byy accounting date date. acco counting period. period - If set to No, journals will be grouped by accounting cess. 2. Run the Journal Import process. hat originated from fro Oracle subledgers suble Note: If you want journals that to be separated by ust set this profile file option option for eac accounting date, you must each Oracle subledger application.

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Using Journal Import Group By Effective Dates

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Using Journal Import Group By Effective Dates g period but with different effective dates, If you have two journal lines in the same accounting eaate te two separate jjournals; one for each line that by setting the profile option to Yes, you can create will still be grou ouped in the same journal batch. has a different effective date. Both journals will grouped gro rouped by accounting acc By setting the profile option to No, thee lines will be grouped period and placed rrent functionality rrent ity for for standard ledgers. le in the same journal. This is the current

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Basic Journal Entries Chapter 4 - Page 77

Importing Journal References

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Importing Journal References You can import subledger transactions into Generall Ledger in detail. The Journal Import process creates one journal entry line for every transaction line in the subledger. ed the import process, pro rocess, you can choose to summarize rocess, To reduce the size of journal lines and speed unn Journal Import rt: journal entry information when you run Import: nals check box too have Journal Journal Im • Select Create Summary Journals Import summarize all d, and currency currency into in one debit and credit line. transactions for the samee account, period, ort rt creates summary summa mary journal journal lines, lines all mapping back to the source • When Journal Import ost. However, you yo can preserve preserve transaction detail for summary journal information is lost. GL_IMPORT_R FERENCES table: t lines in the GL_IMPORT_REFERENCES elect the Import Journal J eferen - Select References check box in the Journal Sources window for en source you wish to preserve. (N) Setup > Journal > Sources. each journal entry - Oracle Ge General Ledger populates the GL_IMPORT_REFERENCE table with one record for every transaction in your feeder system. cann import descriptive flexfields if you create summary journals. You cannot

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Note: If you want to be able to drill down to subledger transaction lines, such as Payables invoices, from General Ledger, select the Import Journal References check box for the subledger source in the Journal Sources window whether you transfer in summary or detail from subledgers.

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Reviewing Journal Import Data

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Reviewing Journal Import Data General L Review the status of accounting data imported into Oracle General Ledger using the Journal ction on the report repor to identify the types of errors Import Execution Report. Use the Error Key section found. Source and Group ID if any of its The journal import program rejects all transactions of a Source journals have errors. cation process too identify i cor Use the journal import verification and correct journal import errors.

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Journal Import Verification Process

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Journal Import Verification Process Validation When Using Open Interfaces efore it creates creates journal jjo • Journal Import validates all of your data before entries in General g for yourr ledger, r, Journ Ledger. If you allow suspense posting Journal Import assigns lines with ccount. Journal Journal Import I rejec invalid accounts to the suspense account. rejects all other invalid lines, and RFACE table, where wh you can correct cor they remain in the GL_INTERFACE them online in the ata window or inn your feeder systems. sys Correct Journal Import Data Journal Import also prints Jourrnal Importt E Execution repor your error lines in thee Journal report. ion Journal Level Validation port validates the following ollowing attributes attrib • Journal Import to ensure that your journals contain the riate accounting ddata: appropriate comb - Account combinations Unbalanc journal entries - Unbalanced Perio - Periods - Foreign currency errors - Budget information

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- Encumbrance information - Other miscellaneous items Correcting Journal Import Errors Online • If your Journal Import results in relatively few errors, you can make online corrections to the data that was rejected, then rerun Journal Import to import the corrected data. (N) Journals > Import > Correct • The Correct Journals Import window displays each field of the GL_INTERFACE table. From this window you can query import lines that have a status of Error or Corrected. • Make your corrections. - If you are correcting Accounts data, you must enter an account segment value or enter a valid Code Combination ID. - Segment values override Code Combination IDs, so you must first clear all displayed segment values before changing the displayed Code Combination ID. • The Status changes to Corrected after you save your changes. • Select the Import Journals button to return to the Import Journals window. • Deleting Journal Import Data to Correct Errors • If you encountered a high number of errors from the Journal Import process, you should delete all information from the interface table and rerun Journal Import after correcting the errors. (N) Journals > Import > Delete • If you delete import data that originated from an Oracle subledger, you must correct the data in the subledger and reimport it from the original source: oup up ID from the - Delete all the import data for your journal entry source and group GL_INTERFACE table. - Correct the errors in feeder system. - Repopulate the GL_Interface table. - Rerun Journal Import. m Oracle subledge Caution: Do not delete journal import data from subledgers such as Oracle Payables or cate ate the transactions have been sent Oracle Receivables. The Oracle subledgers set flags to indica indicate befo fore the tra to Oracle General Ledger. These flags must be reset before transactions can be resent.

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Using Journal Entry Sources and Categories

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Using Journal Entry Sources and Categories (N) Setup > Journal > Sources nal entries origina Journal entry sources indicate where your journal originate. ed journal sources source ces for journal jo jo General Ledger supplies a list of predefined entries that originate in ables. Oracle subledger applications, such ass Assets or Payab Payables. sources for nonon-Oracle n-Oracle feeder ssystems. You can define your own journall sources non-Oracle ecify whether too import iim mport m port detail reference ref For each journal source, specify information for summary Oracle subledger subl bledger applications. applicatio This is required if you want to be journals imported from your Oracle subl bledger transaction transactio from balances in General Ledger. able to drilldown too the original subledger ources, you can: With journal sources, ne intercompany and suspensee aaccounts for specific sources. • Define AutoPos program for specific sources. • Run the AutoPost jour journ • Import journals by source. • Freeze journals imported from subledgers to prevent users from making changes to any jou journals that have been transferred to General Ledger from that source. This ensures that transactions from your subledger systems reconcile with those posted in General Ledger.

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• Report on journals by source using the Foreign Currency Journals or General Journals reports. If you have journal approval enabled for your ledger, you can use journal sources to enforce management approval of journals before they are posted. If you are using average balance processing, select an effective date for your journal source. For more information, refer to the Oracle General Ledger User Guide or 11i General Ledger Financial Management Advanced Topic Average Balance Processing. Journal Categories (N) Setup > Journal > Categories • Journal categories help you differentiate journal entries by purpose or type, such as accrual, payments, or receipts. When you create journal entries, you must choose the default or specify a category. • Using categories, you can: - Define intercompany and suspense accounts for specific categories. - Use document sequences to sequentially number journals by category. - Define journal categories for accruals and estimates. Use these categories when you define criteria for AutoReverse and AutoPost. • Journal categories appear in standard reports, such as the General Journals report. You can run reports by category, by source, or category and source. For example, for month end ha close, you might run a report listing all journals that were created for the period with category of accruals. This way you can review the accrual entries created beforee finalizing your close. ournal urnal Import Caution: Oracle General Ledger does not have a standard report showing Journal nformation. reference information. You must create a custom report to access this information.

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Setting Profile Options

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Setting Profile Options Journals: Allow Multiple Exchange Rates - Controlss whether to allow multiple conversion rates within a journal entry. ntrry - Controls wh ntry whethe Journals: Allow Posting During Journal Entry whether you can post a manual journal entry from the Enter Journals window. cify the default default category ca for man Journals: Default Category - Specify manual journal entries. C whethe General Ledger notifies you Journals: Enable Prior Periodd Notification - Controls whether journal for a prior prio rior ior period. when you are entering a journal tical and Moneta M oneta etary tary - Controls w Journals: Mix Statistical Monetary whether you can enter statistical amounts in al line as monetary monetar amounts. mounts. the same journal Journals: Override Reversa Reversal Method - Con Controls whether you can override the specified default al method. reversal

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Summary

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Summary

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Summary

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Using Accounting Setup Manager

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Chapter 5

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Using Accounting Setup Manager Chapter 5 - Page 1

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Using Accounting Setup Manager

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Using Accounting Setup Manager Chapter 5 - Page 3

Objectives

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Objectives

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Using Accounting Setup Manager Chapter 5 - Page 5

Creating Accounting Setups

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Creating Accounting Setups in steps and are ddescribed in the table The Accounting Setup Process consists of three main above: 1. Create an accounting setup structure. 2. Update accounting options. tup. 3. Complete the accounting setup.

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Using Accounting Setup Manager Chapter 5 - Page 6

Accounting Setup Prerequisites

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Accounting Setup Prerequisites Complete General Ledger Setup Steps General Ledger prerequisites, such as defining a • To create accounting setups, complete the General ndar. chart of accounts and accounting calendar. dger Accounting ng Methods Optionally, define additional Subledger thods other than S • To use additional subledger accounting meth methods Standard Accrual or Standard g Subledger Accounting Acco counting . Cash, define them using gers in Accountin ting Setup Setup Manag • When defining ledgers Accounting Manager, assign a subledger accounting nning ning to use Subledger Suble ledger Accounting Accountin to integrate data from transaction Accountin method if planning sources. rm this step for eeach subledger ger accounting a • Perform method. ounting unting Setup Manager Man Accounting provides the following pages: Entitie Pages • Legal Entities Accoun • Accounting Setups Pages Ac • Accounting Options Pages

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Using Accounting Setup Manager Chapter 5 - Page 7

Create Accounting Setup Demonstration

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Using Accounting Setup Manager Chapter 5 - Page 8

Legal Entities Pages

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Legal Entities Pages The Legal Entities page enables you to: fic balancing balancing segm g • Create new legal entities and assign specific segment values to legal entities to saction processin ing and and reporting. You can take full help identify legal entities during transaction processing y-related features, es, such as Int advantage of all of the legal entity-related Intercompany Accounting. attributes, attribu bu • Query existing legal entities, view their attributes, and make updates to the legal entities. ent values assigned assigne gned ned to legal entit • Update balancing segment entities. leg egal entity. • Enter an end-date to deactivate a legal

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Using Accounting Setup Manager Chapter 5 - Page 9

Accounting Setups Pages

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Accounting Setups Pages etups page: You can perform the following in the Accounting Setups • Create new accounting setups. amed med afte afterr the prim rimary le • Query existing accounting setups (named primary ledger) by legal entity or ledger. ons for an accounting accoun unting setup to mo unting • Update the accounting options modify the related setup components. al entities and view vie iew ew their attribut • Query existing legal attributes. ssociated primaryy ledger for any legal entity, ledger, operating unit, and • Identify the associated reporting currency. w the status of acc ups • View accounting setups. ounting Options Pages Accounting After creating an accounting setup structure, update the accounting options immediately after creating the structure or later.

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Using Accounting Setup Manager Chapter 5 - Page 10

Accounting Setup Manager Checklist

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Using Accounting Setup Manager Chapter 5 - Page 11

Accounting Setup Manager Checklist (continued)

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Using Accounting Setup Manager Chapter 5 - Page 12

Legal Entities Overview

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Legal Entities Overview Define one or more legal entities using Accounting Setup Manager's Legal Entities tab if etups. planning to assign legal entities to accounting setups. egal gal Entity Configurator. Config figurato The Legal Entity pages of You can also define legal entities using Legal me as the Legal Entity E pages in Legal Entity Accounting Setup Manager are the same as balancing segment values to legal balancing Configurator. The only difference is that you can assign up Manager. entities using Accounting Setup

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Using Accounting Setup Manager Chapter 5 - Page 13

Balancing Segment Value Assignments

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Balancing Segment Value Assignments Assigning balancing segment values to legal entitiess is optional; how however, it is strongly g segment segment values to each legal entity to help recommended that you assign specific balancing ocessing and repo porting This is particularly identify legal entities during transaction processing reporting. g setup s wher important for accounting setups that usee the accounting where multiple legal entities share the same primary ledger. ent nt values to legal gal al entities, entities, you ca By assigning balancing segment can also take advantage of all of g features availabl availab able, such as inter the legal entity accounting available, intercompany accounting. egment values to your legal entities, then all balancing If you do not assign any balancing seg segment or transaction pprocessing. segment values will be available ffor ltiple tiple value sets for fo the balancing alancing segment across charts of accounts, be sure to If using multiple he correct value sset to the legal entity. Once assigned, you cannot remove the value set assign the m legal entities. However, H from there is no harm in assigning the wrong value set or assigning balancing segme segment values for the wrong value set; the system will ignore it during transaction processing.

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Using Accounting Setup Manager Chapter 5 - Page 14

Using Balancing Segment Values for Transaction Processing

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Using Balancing Segment Values for Transaction Processing ntity are automati Any balancing segment values assigned to a legal entity automatically assigned to the legal entity's ledger when completing the accounting setup. ubledgers, use only ubledgers, on the valid balancing segment When entering transactions using Oracle subledgers, ntity. tity. values that are assigned to the legal entity. al Ledger, use use only onl nly the valid bala When entering journals in General balancing segment values entities and the ledger le itself. assigned to the ledger's legal entities assign gned to the the legal entities or ledgers, then all balancing If no balancing segment values are assigned ter transaction segment values will be available to en enter transactions and journal entries.

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Using Accounting Setup Manager Chapter 5 - Page 15

Completing Accounting Setups

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Completing Accounting Setups If you have an accounting setup with multiple legal entities assigned and specific balancing annot complete the th accounting setup if the segment values assigned to legal entities, you cannot following violations exist: alues assigned assigned to o the legal en • overlapping balancing segment values entities for the same accounting setup ess assigned to som ome, not all, of th • balancing segment values some, the legal entities assigned to the up same accounting setup ot check for overl ov erl Accounting Setup Manager does not overlapping balancing segment values assigned accou ting setups. T to legal entities in different accounting Therefore, ensure that the correct balancing lues ues are assigned to legal entities in all accounting setups. segment values se Before the accounting setup is complete, delete and add balancing segment values to legal tities ities at any time. After completing the accounting setup, you cannot delete balancing entities segment values from legal entities; you can end date the balancing segment value to prevent it the use of it.

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Using Accounting Setup Manager Chapter 5 - Page 16

Designating the Balancing Segment for a Chart of Accounts

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Designating the Balancing Segment for a Chart off Accounts It is recommended that you designate the balancing segment of the cchart of accounts as the ultiple legal entities ultiple entit that use different charts of legal entity or company segment. If there are multiple bbalan ba accounts, limit the number of value sets youu define for the balancing segment to ease ts across multiple mu maintenance efforts. This allows you too share value sets charts of accounts and alues for each legal leg egal entity that is consistent across charts of egal assign unique balancing segment values accounts.

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Using Accounting Setup Manager Chapter 5 - Page 17

Defining Legal Entities Using Accounting Setup Manager

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Defining Legal Entities Using Accounting Setup Manager ities. Use the Create Legal Entity page to create legal entities. Prerequisites—The following prerequisites aree required only if you are planning to assign balancing segment values to legal entities: • define a chart of accounts he balancing segm gment • define segment values for the segment Creating Legal Entities ntities page. 1. Open the Legal Entities 2. Select Createe Legal Entity dentifica dentifica 3. Enter all relevant fields ffor the Identification Information, Legal Address, Additional ormation, and Bal en Value Assignments. Information, Balancing Segment 4.. Select Apply or click Save and Add Details to enter additional information for the legal entity that in includes the following: - re registrations - establishments 5. In the Balancing Segment Value Assignments region, click Add Value Set.

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Using Accounting Setup Manager Chapter 5 - Page 18

6. Select a value set from the list of values. Only value sets that use the balancing segment value qualifier are displayed. 7. To assign balancing segment values for the value set, click Add Balancing Segment Value. 8. Select one or more balancing segment values to assign to this legal entity. You cannot assign parent values. Note: Be sure to assign unique balancing segment values to each legal entity. You cannot complete the accounting setup if multiple legal entities assigned to the same accounting setup have overlapping balancing segment values assigned or only some of the legal entities have balancing segment values assigned. 9. To make this value available for a limited time, enter a start date and/or an end date. Start and end dates can be changed at any time. 10. Select Apply.

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Using Accounting Setup Manager Chapter 5 - Page 19

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Updating Balancing Segment Values

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Updating Balancing Segment Values orr the legal entity in one of the following Update the balancing segment value assignments for pages: • Legal Entities tab ssigning legal legal ent ntities to accou • Accounting Options page after assigning entities accounting setups. Add value ent ntities at any time. tim sets and balancing segment values to legal entities Prerequisites ty • Define a legal entity ounting setup setttup up to automatically assign the value set • Assign a legall entity to an acco accounting d with the legal en associated entity'ss ledger. te balancing segment segm fo legal entities: To update valuess for 1. Open the Legal E Entities page and search for a legal entity. B 2. Select the Balancing Segment Value Assignments sub-tab. 3. To upd update the balancing segment value assignment, click Update.

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Using Accounting Setup Manager Chapter 5 - Page 20

4. Add one or more value sets. Once assigned, you cannot remove the value set. If you accidentally assign the wrong value set that is not associated with any of the legal entity's ledgers, the invalid value set will be ignored during transaction processing. 5. Add or remove balancing segment values. If the legal entity is assigned to a complete accounting setup, you cannot remove its balancing segment values. You can disable them by entering an end date. 6. Select Apply. To update balancing segment values for legal entities that are assigned to accounting setups: 1. Open the Accounting Options page for an accounting setup. 2. In the Legal Entities region, select the Update Balancing Segment Values icon for a legal entity. The value set associated with one or more of the legal entity's ledgers will be automatically assigned. 3. Add or remove balancing segment values for the appropriate value set. If multiple value sets are assigned to the legal entity, assign the same balancing segment value across value sets.

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Using Accounting Setup Manager Chapter 5 - Page 21

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Creating Accounting Setup Structures

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Creating Accounting Setup Structures rk or skeleton of an accounting setup. The accounting setup structure defines the framework

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Using Accounting Setup Manager Chapter 5 - Page 22

Creating Accounting Setup Structures (continued)

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Using Accounting Setup Manager Chapter 5 - Page 23

Creating Accounting Setup Structures (continued)

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Using Accounting Setup Manager Chapter 5 - Page 24

Creating an Accounting Setup

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Creating an Accounting Setup Assigning Legal Entities ups is optional. Assign A • Assigning legal entities to accounting setups legal entities if you are edgers dgers that require ire a leg planning to use Oracle financial subledgers legal entity context for gn legal entitiess if you are pla transaction processing. Also, assign planning to use legal entity rcompany accoun unting. specific features, such as intercompany accounting. L p • If creating legal entities from the Assign Legal Entities page, you are not creating a ntity. tity. Complete Complete th complete definition of your legal entit entity. the definition of the legal entity later from the Legal Entities tab. unting Represent tions Defining Accounting Representations fy the ledger attributes attrib • Specify for the pri primary ledger. The primary ledger acts as the primary counting represen accounting representation. Optionally specify the ledger attributes for one or more ledg to represent primary ledger transactions in a different chart of accounts, secondary ledgers cu calendar, currency, subledger accounting method, and/or ledger processing options. ma • To maintain additional currency representations of primary or secondary ledgers, assign re reporting currencies to them.

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Using Accounting Setup Manager Chapter 5 - Page 25

Note: Add secondary ledgers and reporting currencies to accounting setups at any time. Before completing the accounting setup, you can delete secondary ledgers and reporting currencies. After completing the accounting setup, you can only disable the conversion of reporting currencies and secondary ledgers. To define accounting representations: 1. Open the Define Accounting Representations page from the Assign Legal Entities page. 2. Specify primary ledger attributes for the required fields. Note: You cannot assign a calendar if it contains gaps between periods or it does not have a full fiscal year defined. 3. Optionally assign a subledger accounting method if planning to use Subledger Accounting to integrate data from Oracle financial subledgers or external feeder systems. Note: Once you assign a subledger accounting method, you must always have a subledger accounting method assigned. You can change the subledger accounting method at any time. 4. Optionally, specify the following secondary ledger attributes: - name - chart of accounts - accounting calendar - Currency - subledger accounting method 5. Specify a Data Conversion Level. 6. Optionally, select the Add Reporting Currency icon. llowing currency 7. In the Add Reporting Currency page, enter a currency and one of the following conversion levels: - Balance: maintains translated balances rting ting currency usin - Journal: maintains journals and balances in the reporting using the General Ledger Posting program tion ion of the source ledger's subledger - Subledger: maintains a currency representation journals, General Ledger journals, and balances using bo both Subledger Accounting and m. the General Ledger Posting program. 8. Select Apply. Saving the Accounting Structure counting ounting Stru cture ure page from the Define Accounting 1. Navigate to the Save Accounting Structure e. Representations page. ounting setup stru ructure. 2. Review the accounting structure. h. 3. Click Finish.

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Using Accounting Setup Manager Chapter 5 - Page 26

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Completing Accounting Options

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Completing Accounting Options cklist format to co The Accounting Options page is displayed in a checklist complete the relevant setup ntering tering transactions transaction and journals. steps to make the accounting setup ready for entering setup st Before entering transactions, complete all of the required se steps for each accounting setup. ll of the required ed setup steps for the primary ledger If using secondary ledgers, complete all secondary ry ledgers Navigate Naviga to the Accounting before completing the setup steps for the secondary lowing ways: Options page in one of the following ounting setup stru tructure, ructure, click De • After saving the accounting structure, Define Accounting Options. ng accounting setup set etup from the A • Query an existing Accounting Setups page, and then select the counting Options icon. on. Update Accounting The name of the Accounting Options page is named after the primary ledger, such as nting Options: