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General Ledger Cycle

1. Opening the periods2. Enter / Import journals3. Review journals4. Post journals – Inquiry5. If require – Run revaluation6. If require – Run Translation for consolidation7. Review results8. Prepare financials9. Close the current period10. Open next period

FLEX FIELDS IN GENERAL LEDGER:

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1. Key Flex Fields2. Descriptive Flex Fields  

Key Flex Fields:

• General Ledger: • Accounting KFF • Reporting Attribute KFF – For reporting purpose.• GL Ledger KFF – It is a mirror image of Accounting KFF. It is only

for internal purpose. It is used exclusively for certain GL features such as Mass Allocations, Recurring Journals and FSG Reports.

• Receivables: • Sales Tax Location Flex Field • Territory Flex Field

• Fixed Assets: • Category KFF • Asset Location KFF • Asset key KFF

Flex Field Qualifiers (Assign to Segments)

1. Balancing Segment FFQ2. Cost Center Segment FFQ3. Natural Accounts Segment FFQ4. Inter Company Segment FFQ5. Secondary Tracking Segment FFQ6. Management FFQ

Segment Qualifiers (Assign to Segment values)1. Allow Budgeting2. Allow Posting3. Account type (Assets / Liability / Expenses / Revenue / Ownership)4. Third party control5. Reconcile

Assignment of FFQ to Segments

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• Company Balancing Segment FFQInter company Segment FFQ

• Department Cost Center Segment• Accounts Natural Accounts Segment FFQ

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

Segment (Total 31).

1. Balancing Segment: We generally assign these qualifiers for “Company” segment, where usually balances are maintained.

2. Cost Centre Segment: We generally assign these qualifiers to “Department” segment, where costs are spend or even gain.

3. Natural Accounts Segment: We generally assign these qualifiers for “Accounts” segment, where it consist of accounting categories such as Expenses, Revenue, Assets, Liabilities and ownership.

4. Inter Company Segment: (Optional): We generally assign these qualifiers for “COMPANY” segment, using these qualifiers we are able to perform inter company transactions.

5. Secondary tracking Segment: (Optional): Using these qualifiers we are able to identify secondary tracking segment to process income statement, closing transactions and revaluation.

6. Management Segment Qualifier :MSQ is used in Data Access set for allowing privileges to user other than balancing segment values.

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

Compile Structure:

• Segment separator is used to separate the segments in the code combination. (Dash, Period, Pipe and Custom).

• Allow Dynamic Inserts : If we enable Allow Dynamic inserts, then we are able to enter the all possible code combinations at the time of transaction entry.

If we want to know how many code combinations in our structure, multiply the number of values across the segments.

If we disable allow dynamic inserts, we cannot enter all possible code combinations at the time of transaction entry.

• Enable “Freeze Flex Field Definition” and click on “Compile” button.

• The structure information will get stored in a tabular form “GL_Code_Combinations_KFV”.

Primary Ledger (Set of Books) – 4 C’s

4 C’s• Chart of Accounts (Structure, Segments & Segment values)• Currency• Calendar• Accounting Convention Method (Accrual / Cash)

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Pre requisites for Chart of Accounts

• Value Set• Structure and Segments• Segment Values

Value Set:

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

Validation Types in Value Set• Independent: If validation type is independent, we can define values

for the value set and we can use at the time of transaction time.• Dependent: If validation type is dependent, then we cannot define

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

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

• Pair & Special: Used in the programs to add additional pop up window for parameters.

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

• Translate dependent & Independent: We use to translate the segment values into desire language.

Contents of Value Set

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List Type Security Type Format type Validation Type

3 Types 3 Types 7 Types 8 Types

1. List of Values 1. No Security 1. Char 1. Dependent

2. Long List of Values 2. Hierarchical 2. Date 2. Independent

3. Pop List 3. Non Hierarchical

3. Date Time 3. None

4. Number 4. Pair

5. Standard date 5. Special

6. Standard date time

6. Table

7. Time 7. Translatable Independent

8. Translatable Dependent

Currency:

Monitory currency: Functional Currency, Foreign Currency Non Monitory currency: STAT Currency

Calendar:Accounting Calendar: Calendar & Fiscal Calendar

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Transaction Calendar

Period Type

• General ledger have 3 standard period types:1. Month2. Quarter3. Year

• Period types are used in defining Accounting Calendar.• Each ledger has an associated period type. • When you assign a calendar to a ledger using Accounting Setup

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

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

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

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

Calendar Status:1. Open2. Closed3. Permanently Closed4. Future Entry5. Never Opened

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• Year Types 1. Calendar2. Fiscal

There are 5 types of period status:Status Entry Posting

1. Never opened X X 2. Open √ √3. Closed X X 4. Future √ X5. Permanently Closed X X

Mandatory Accounts for Set of Books1. Retained Earnings Account (Ownership)2. Translation Adjustment Account (Expenses)3. Suspense Account (Assets / Liabilities)4. Rounding Difference Account (Expenses)5. Reserve for Encumbrance (Ownership)6. Net Income (Expenses / revenue)

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Note:From the above “Retained Earnings account” is mandatory to create primary ledger. Remaining 5 accounts are optionally mandatory based on the requirement.

1. Retained Earnings:Retained earnings are accumulated profits. Whereas net income means current year profits

2. Translation adjustment account: Translation is conversion of functional currency or local currency into foreign currency for reporting purpose.Translation basically uses 2 rates: period average rate & period end rate.Translation uses period average rate to translate all profit and loss account balances. (Expenses & revenue)Translation uses period end rate to translate all balance sheet balances. (Assets & Liabilities)

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

Conversion rate types: 31. Spot

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2. Corporate3. User (Reporting)

Spot:An exchange rate which you enter to perform conversion based on the rate on a specific date. It applies to the immediate delivery of a currency.

Corporate:This rate is generally a standard market rate determined by senior financial management for use throughout the organization.

User (Reporting):An exchange rate you specify when you enter a foreign currency journal entry.

Journal Source

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

• To define journal source: Setup à Journal à Sources.• When we import data from legacy systems to GL we require source

names.• Importing journal Reference:

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

• Require Journal approval:

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

• Import using key: This is used to define whether journals will be imported using source key or not.

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

• Effective date Rule:1. Fail2. Leave alone3. Roll Date

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

• Leave Alone: Journal import will accept all transactions regardless of the effective date.

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

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

Journal category

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• Journal Category determines the purpose or type of the journal entry.• When you enter a journal you specify a journal category.

Examples:1. AP Invoices2. AP Payments3. Adjustment4. Budget5. Intercompany6. Inventory7. Payments8. Payroll9. Receipts10. Year end close.

Enter Journals

• It is used to record the day to day business transactions. It contain Dr and Cr lines. Always debit must be equal to credit.

• You can enter several types of journal entries, including foreign currency journals, statistical journals, and intercompany journals.

• Journals can be created in two ways: 1. Manual 2. Import

1. manual : Enter journals manually by using navigator Navigation to enter Journal: Journals à EnterManual journals can be enter in 2 ways:1. individual Journal 2. batch Journal.

• Journal body contains two areas:12

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1. Header 2. Lines

• We have 2 types of methods: 1. Standard Journal 2. Average Journals

• We have 3 types of balances: 1. Actual 2. Budget 3. Encumbrance.

Reverse Journal

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

• Once the journal is got posted it wouldn’t allow the user to make any changes.

• The only solution or remedy is to reverse the journal.•  In order to reverse the journal, first review the journal, use reverse

button available in the journal window, also indicate the period where the reversal entry should get created.

• Navigation: Journal à Entry•  Once we reverse the journal system will create one un posted journal,

showing the earlier debit balance to credit side & earlier credit balance to debit side.

• Post this un posted journal.•  After the journal reversal the particular account in the journal will

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• Reverse is of two types:• Change sign (Profile option is required)• Switch Dr/Cr.

BUDGETSBudget is nothing but: better planning and controlling of the funds for future usage.In oracle we can define budgets up to 60 periodsThere are 2 types of budgets

1. Planning budget (Revenue Budget)2. Funding budget (Expenses Budget)

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

Funding Budget

Under funding budget we can plan and control the expenses.We can create budget journals in funding budget.

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Setup Steps:1. Create Reserve for encumbrance account2. Enable:

budgetary control Require Budgetary journals Assign “Reserve for Encumbrance account”

At Ledger level3. Define expenditure head of accounts4. Define Budget and open next year

5. Define Budget organization: Set sequence Set password for budget Set range for accounts Create Budget Rules Select funds check level Select amount type

6. Create Budget Journals7. Query the budget journals and post8. Create journal entry using budget account

Balance types: 3

1. Budget2. Actual3. Encumbrance

Budget balances are planned amounts at initial stage.Actual balances are paid amounts so far.Encumbrance balances are reserved amounts for future payments.

Funds Check Level: 3

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1. Absolute2. Advisory3. None

If we use absolute we cannot use more than the amount what we specified.

If we use Advisory, system will give caution if we cross the amount given

If we use None, System will not give any caution, and we can enter the more amounts also.

Amount Types: 4

1. PTD: Period to date: One month2. QTD: Quarter to date: 3 months3. YTD: Year to date: 1 year4. PJTD: Project to date: Depends on project beginning date

Budget Rules: 8

1. Divide evenly2. Repeat per period3. 4/4/54. 4/5/45. 5/4/46. Prior year budget monetary7. Current year budget monetary8. Prior year budget STAT

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Mass Allocation

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

Formula: T = A x B/CA = Cost pool AmountB = Usage factorC = Total UsageT = Target AccountO = Off set account

Segment types in mass allocation:1. Constant 2. Looping 3. Summing

Mass Allocation Methods:1. Full type allocation 2. Incremental Allocation

11i Steps:1. Define STAT Currency

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2. Create SFT account3. Create STAT journal with SFT account4. Set up parent department and set up parent & child relation5. Prepare mass allocation formula6. Run mass allocation7. Review and post journal

Mass allocation formula:Formula Amount Account Currency A 100000 - -B - C-L-C-C STATC - C-S-C-C STATT - C-L-C-C INRO - C-C-C-C INR

R 12 Steps:Step: 1 Create Usage factor account and Cost pool account

Nav: Setup à Financialsà Flex fields à key à Values

Step: 2 Define Parent and child values for departmentsNav: Setup à Financialsà Flex fields à key à Values

Step: 3 Create cost pool journal and post.Nav: Journal à Enter

Step: 4 Create and Post Statistical Journal Nav: Journal à Enter

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Step: 5 Define and Generate Mass allocation formulaNav: Journals à Define à Allocation

Step: 6 Query mass allocation journalNav: Journals à Enter

Types of Journals

1. Functional Currency Journal2. Foreign Currency Journal3. Recurring Journal4. Tax Journal5. Revaluation Journal6. Suspense Journal7. Reverse Journal8. Mass allocation Journal9. STAT currency Journal10. Budget Journal11. Batch Journal12. Manual Encumbrance Journal

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Suspense Journal

• As per accounting principles Debit amount should always equal to Credit amount for the same Company Value.

• If both amounts are not equal, the difference amount will go to Suspense Account.

Setup required for Suspense Journal:

1. Create Suspense Account (Expenses / Revenue)Navigation: Setup à Financials à Flex Fields à Key à Values.

2. Enable suspense account feature at ledger level under journal processing tabNavigation: Setup à Financials à Accounting setup manager à Accounting setup

3. Define Suspense account RulesNavigation: Setup à Accounts à Suspense

4. Create Journal / Review JournalNavigation: Journal à Enter.

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Recurring Journal

• Journals which are repeating every accounting period is called a recurring journal.

Recurring journals are 3 types:

1. Standard Recurring Journal2. Skeleton Recurring Journal3. Formula Recurring Journal

Standard Recurring Journal: Under standard recurring journal method same accounts with the same amounts will be effected with the each accounting period. We know account and amount already.

Skeleton Recurring Journal: Under skeleton journal method partial information will be entered at the time of recurring journal creation. We know the account but do not know the amount.

Formula Recurring Journal: Using formula recurring method, journal lines amounts will be calculated by recurring journal program based on simple formula.

Recurring Journal Setup

• Step:1 Define Recurring Journal

Navigation: Journals à Define à Recurring.

• Line:1 Enter Expenses account (Debit Account) and the amount for Standard

Recurring Journal Enter only Debit account for Skeleton recurring, do not enter amount

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Enter debit account & enter the formula for the amount for Formula recurring journal

• Line: 2 Enter the credit account We can enter 9999 lines in a recurring journal. In which 9998 lines are

for debit lines and only one line is for credit line. We call this line as offset account line. Hence we have to enter line 2 as a offset line and key in the number 9999 in line 2.

Do not enter amount for line 2. System will add all the debit lines amount and consider the credit amount as offset account.

If you wish to enter more credit lines, we have to give negative sign for the lines, for example -9998, -9997 etc.

• Step: 2Generate the recurring journal = Click on “Generate” buttonSay SubmitSchedule the journals for recurring.Enter parameters Run program.

• Step: 3Ensure Concurrent program completed Normal View à Request

• Step: 4Query the recurring journal and post. Journal à Enter.

With the above report system will generate un posted journals in GL.,

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With the source: recurring.Post the journals after review.

REVALUATION

Revaluation reflects the changes in the exchange rates.For example:Invoice May 5th $1000 Rs 45 Rs 45000Payment May 10th $1000 Rs 47 Rs 47000If paid on May 25th $1000 Rs 43 Rs 43000In the above example gain or loss is Rs 2000

Setup Steps:1. Define un realized gain or loss accounts2. Define exchange rate type3. Define daily rates for the date of journal entry (USD à INR)4. Define daily rates for the date of Payment (USD à INR)5. Enter foreign currency journal6. Run revaluation

Enter name and description for revaluation Currency Options: Choose single currency & USD Rate Options: Choose Daily Rates & Exchange rate type Choose Unrealized gain & loss accounts Choose revaluation ranges

Say “Revalue”

Submit request window will open

System choose automatically program as “Program – Revalue balances”

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Choose parameters: Ledger Revaluation batch Period Effective date

Say OKSubmit

View à requestEnsure program completed normal

7. Query revalue journal and post it

Tax Journal

Steps:

1. Enable “Journal Entry Tax” at Ledger level under “Journalling” tab2. Define input tax codes and assign GL account3. Set up tax options: √ Allow tax code override4. Enter and post journal

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Manual Encumbrance Journal

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

Navigation: Journal à Encumbrance

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

Approval is not applicable

TRANSLATION

Translation is used to convert the accounting balances from Functional Currency to Foreign currency at Balances level

This activity is done at a particular period end This is an off line activity Translation is done at balances level We can report in number of currencies – No limit We use 3 types of rates:

1. Period end rate: Assets & Liabilities2. Average rate: Expenses & Revenues3. Historical rate: Ownership

Translation is part of “Consolidation” We cannot run Translation for first period

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Account type RateExpenses Period average rateRevenue Period average rateAssets Period end ratesLiabilities Period end ratesOwnership / Equity Historical rates

Setup Steps:1. Create “Cumulative Translation Adjustment” account 2. Define exchange rate type3. Define daily rates4. Assign rate type & CTA account to ledger5. Run Translation6. Run Trial balance Translation report

** Exchange rate type is used to build relationship between the two currenciesThere are various exchange rate types

1. Corporate2. Marketing3. User4. Spot

Corporate type is used for rates which are defined by the higher management in the organization.Market rate is at present what the rate in the market isUser rate: At the time of transaction entry user can enter applicable exchange ratesSpot rate is a kind of market rate

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To convert the balances from functional currency to foreign currency at transaction level (at journal entry level) we use reporting currency.In reporting feature we will be having one primary ledger and unlimited reporting ledgers.

Setup Steps:1. Define rounding difference account2. Assign rounding difference tracking asset at ledger level3. Define exchange rate type4. Define daily rates5. Define reporting currency options at primary ledger level6. Define reporting GL responsibility7. Assign reporting ledger to responsibility8. Assign responsibility to user9. Open periods in reporting ledger10. Create journal and post in primary ledger

Difference of MRC & Translation

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MRC TRANSLATION

Transaction level Balance LevelUp to 8 Currencies No limit of CurrenciesOn line activity Off line activityDaily Rates Average, Period end & historical rates

Part of consolidationWe can run at any point of time We cannot run for first period

Auto Post

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• We can post the journals automatically by specifying the some criteria in Auto post criteria set.

• Criteria could be: combinations of ledger or ledger set, journal source, journal category, balance type, and period.

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

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

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

Steps: 1. Define auto post criteria

Navigation: Set up à Journal à Auto Post

2. Enter JournalNavigation: Journal à EnterEnter Journal linesSave journalDo not postCheck to see Auto post program completed successfully

Auto Reversal

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Auto reverse is nothing but, reversing journal automatically based on the criteria that we specify.

Criteria could be: Journal category Reversal Method Reversal period

If you routinely generate and post large numbers of journal reversals as part of your month end closing and opening procedures, you can save time and reduce entry errors by using Automatic Journal Reversal to automatically generate and post your journal reversals.

Prerequisites for Auto Reversal:• The journal balance type is Actual.• The journal category is enabled to be Auto reversed.• The journal is posted but not yet reversed.• The journal reversal period is open or future enterable.

• Note: Automatic Journal Reversal reverses posted journals of the balance type Actual. You cannot use this feature to automate budget or encumbrance journal reversals.

Auto Reverse - Set up steps:

1. Define reversal criteria

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Navigation: Set up à Journal à Auto reverse

Choose: Category Method: Switch Dr / Cr Reverse period Reversal date

Enable check box: Auto reverse Auto post reverse

2. Enter one journal with above category

3. Perform inquiry on account balances

4. Run “Program – Automatic reversal” Navigation: Reports à Request à Standard

5. Perform inquiry on account balances

SEQUENTIAL NUMBERING

Sequential numbering is used to assign unique number to the various transactions.

System will assign serial numbers to the data flows in to General Ledger through sub ledger accounts based on the category.

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The transactions are Journals, AP Invoices, AP payments, Bank accounts, AR invoices and AR receipts etc.

Sequencing information is available for querying and display of journals.

You can call either sequential numbering or Document category or voucher numbers.

SLA provides 2 different sequence mechanism for sub ledger journal entries:1. Accounting Sequence2. Reporting Sequence

Accounting Sequence:The accounting sequence is assigned to sub ledger accounting journal entries at the time that the journal entry is completed.

Reporting sequence:The reporting sequence is assigned to both sub ledger accounting journal entries & General Ledger journal entries, when the General Ledger period is closed.This sequence is used by most of the legal reports required in some countries, as the main sorting criteria to display the journal entries.Reporting sequence is optional

These two sequences are not mutually exclusive, and, can coexist in the same journal entry

Setup Steps

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1. Define “Sequential numbering” profile option at responsibility levelNavigation: System administrator

Profile à System

2. Define sequential numberingNavigation: System administrator

Application à Sequence numbering à Define

3. Assign sequential number to the CategoryNavigation: System administrator

Application à Sequential numbering à Assign

4. Create JournalNavigation: General ledger

Journals à Enter

** Automatic: System generate number after saving journal** Manual: user has to enter number manually** Gapless: No gap for the journals from different sources

JOURNAL APPROVAL

Journal approval is an additional security feature to post the journals using this feature we can define approval limits for employees.

Setup steps:

1. Enable journal approval at ledger level33

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Navigation: General ledgerSetup à Financials à Accounting setup manager à Accounting setup

2. Enable journal approval at journal sourceNavigation: General ledger

Setup à Journal à Sources

3. Define approval limits for employeesNavigation: General Ledger

Setup à Employees à Limits

4. Create user and assign employee to userNavigation: System Administrator

Security à User à Define

5. Log in with employee user and create journalsNavigation: General ledger

Journals à Enter

** in 11i: we have to assign profile option to GL Responsibility, that is, “Journals: Allow preparer approval” through system administrator Navigation: Profile à System

Approver Methods:

1. Go up management chain2. Go Direct3. One Stop then go direct

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Difference between Security rules and cross validation rules

Security Rules (SR) Cross validation rules (CVR)

SR enabled at Responsibility level CVR enabled at structure & chart of accounts level

List of values are not displayed for those combination where SR was enabled

All list of values are displayed, but we will get error message for invalid code combination

No error message will displayed in SR Error message will displayed in CVRSR restrict permission for segment values

CVR restrict user for invalid code combination

SECURITY RULES

Security rules are used to restrict the user from entering segment values. It will work at responsibility level.

Step: 1 Enable security at value set

Navigation:Set up à Financials à Flex fields à Validation à Sets

Step: 2 Enable security at segment level

Navigation: Set up à Financials à Flex fields à Key à Segments

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Step: 3 Define Security rules

Navigation:Setup à Financials à Flex Fields à Key à Security à Define

Step: 4 Assign Security rules to the responsibility

Navigation:Setup à Financials à Flex Fields à Key à Security à Assign

Step: 5 try to create Journal with 03 Company segment value

Navigation: Journal à Entry

Say “New Journal”You will see only 2 segments, restricted company value is not visible

If you try to enter restricted segment value, system will through error message

CROSS VALIDATION RULES

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

Step: 1 Enable cross validation rules at structure

Navigation:Setup à Financials à Flex Fields à Key à Segments

Step: 2 Define cross validation rules

Navigation:

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Setup à Financials à Flex Fields à Key à Rules

Step: 3 Enter journals using restricted code combination

Navigation: Journal à Enter

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

DEFINITION ACCESS SET

Definition access set will work at Responsibility level.

DAS is used to provide access in 3 ways to the users for various definitions:1. Use2. View3. Modify

Step: 1 Define Definition Access Set

Navigation:

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Set up à Financials à Definition Access sets à Define

Step: 2 Assign Definition Access set to Responsibility

Navigation:Setup à Financials à Definition Access Sets à Assign

Step: 3 Enable Security for accounting Calendar

Navigation:Setup à Financials à Calendars à Accounting

Query your accounting calendarSelect check box “Enable Security”Say “Assign Access”Choose Definition Access set

ALIASES

Aliases are used to define the short name for account code combinations

Step: 1 Define Aliases

Navigation:Setup à Financials à Flex Fields à Key à Aliases

F11Query your structure

Shorthand:Select check box: EnabledEnter Max alias sizePrompt: Short Name

Go to “Alias, Descriptions” tabEnter alias name

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Choose values for TemplateGo to “Aliases, Effective” tabEnter from date

Save

Step: 2 Compile Accounting Structure

Navigation:Set up à Financials à Flex Fields à Key à Values

Step: 3 Enter Journal to check the Alias result

Navigation: Journals à Enter

LEDGER SET

Ledger set is used to access multiple Ledgers information from single responsibility.Using Ledger set we can group only Ledgers which are having same Chart of Accounts and same Calendars.

Step: 1 Define ledger setsNavigation: Setup à Financials à Ledger Sets

Enter Name and Short name Choose:

Chart of Accounts Calendar Default Ledger All other ledgers you want to group

Save.

Step: 2 Assign Ledger set to responsibilityNavigation: System Administrator

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Profile à System

Choose responsibilityProfile Option: GL: Data Access SetChoose Ledger set

If you assign both the profile options: GL Ledger Name & GL Data Access SetSystem will choose first Data Access set

DESCRIPTIVE FLEX FIELD

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

Step: 1 Enable and Define DFF fields

Navigation:Setup à Financials à Flex Fields à Descriptive à Segments

Query Application: General Ledger Title: Enter Journals: Journals Prompt: Context or Enter DFF Enable check boxes: Required & Displayed

Click on Segments

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Enter the fields SaveClose this windowFreeze Flex Field definitionSay “Compile”

Step: 2 Enter Journal to view DFFNavigation: Journal à Enter

New JournalEnter Journal as usualClick on DFF check box to enter DFF fields

CONSOLIDATION

Consolidation is used to consolidate the multiple subsidiary ledger information into parent ledger.

In other words, Consolidation is used for preparation of financial reports of parent and subsidiary companies.

If both companies are using different currencies, translation is required.After translation data will be remain in the same books.By using consolidation concept, we transfer data from subsidiary to Parent SOB.

For Translation of fixed assets balances, revaluation is required.The difference will go to “unrealized gain / loss” account.The difference of 3 rates will go to “CTA Account” (Cumulative Translation adjustment account)

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There are 2 types of consolidation methods:1. Balance2. Transaction

** Transaction method is used when we have same currency for parent and subsidiary ledger

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

Consolidation Rules: 2

1. Segment Rules2. Account Rules

Segment Rules again classified in to 3

1. Use roll up rule from2. Use copy value from3. Assign single value

** If codes are different: Co2 à Co1 Use roll up rule from** If codes are same: Do1 à Do1 Use copy value from** If structure is different Assign single value

Setup Steps:

1. Define Parent Ledger and required Subsidiary Ledgers2. Define Parent and Subsidiary GL Responsibilities

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3. Assign Ledgers to Responsibilities4. Assign responsibilities to users5. Define Exchange Rate type6. Define Daily Rates7. Complete currency translation options8. Define consolidation mapping in the Parent ledger9. Open periods in parent and subsidiary ledgers10. Define Consolidation set11. Enter and post journals in each subsidiary ledger12. Run translation13. Transfer data in to Parent ledger14. Query the Consolidation journals in the Parent Ledger and post

Step: 7

Complete Currency translation options in parent and subsidiary ledgerNavigation: Setup à Financials à ASM à Accounting Setup

Query your LedgerGoUpdate Accounting optionsClick on Update of Ledger set up step

Go to “Ledger Options” tabUnder “Currency Translation options”Choose:

Default period end rate type Default period average rate Cumulative Translation Adjustment Account

Say Finish

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Step: 8 Define consolidations mapping in the parent ledger

Navigation: General LedgerConsolidation à Define à Consolidation

Name Consolidation MappingEnter Description

Consolidation Attributes: Choose Parent Ledger Choose Subsidiary Ledger Currency: INR Method: Balances Usage: Standard

Run Options:Select check boxes

Run Journal Import Create Summary Journals Auto post

Click on “Mapping”

Enter Mapping Name and DescriptionChoose Target & Source Chart of AccountsClick on “Segment Rules”

Choose Target Segment ValuesChoose Action: Copy value fromChoose Source Segment values

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Save and close this windowChoose “mapping” in Consolidation Definition window

Step: 10 Define Consolidation SetNavigation: General Ledger

Consolidation à Define à Consolidation set** Consolidation set is used to group the consolidation mappingEnter Consolidation set nameChoose Parent LedgerMethod: BalancesChoose Run optionsChose Consolidation mappingSave

Step: 12 run the translation in each subsidiary ledger

Navigation: Subsidiary ledgerCurrency à Translation

Step: 13 Transfer data in the parent ledger

Navigation: Parent General LedgerConsolidation à Transfer à Data Set

Choose “Consolidation set” Usage: Standard

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Balance Type: Actual Currency: INR Method: Balances

Subsidiary: Amount type: PTD Choose Period

Click on “Query consolidation” system will automatically select consolidation mappingSay “Transfer”Ensure program completed normal

ROLL UP GROUP & SUMMARY ACCOUNTS

Step: 1 Create summary accounts at chart of account levelNavigation: Setup à Financials à Flex fields à Key à Values

Step: 2 Create Roll up groupNavigation:Setup à Financials à Flex fields à Key à Groups

Step: 3 Assign Roll up group to parent account at COA levelNavigation:Setup à Financials à Flex fields à Key à values

Select “parent Account” Go to “Value, Hierarchy, Qualifiers” Group: Choose Roll up group

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Save

Step: 4 Create Summary AccountsNavigation: Setup à Accounts à Summary

Name: Enter Name Choose Ledger

Enter Template values: Company: D Department: D Account: Choose Roll up group Sub account: D Product: D

Say OK

Choose: Earliest period

SaveStatus: Adding

Go to View à RequestEnsure program completed normal

Step: 5 Pass a journal entry with these accounts and post itNavigation: Journal à Enter

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Step: 6 Inquiry of Account balancesNavigation: Inquiry à Accounts

Choose Summary Template Choose parent account

Click on “Show balances”Average Balances

Average balances are in General used by banking sectors. Through this we will find out the account balances for working days

only We have to setup working days and non working days through

“Transaction Calendar” in general ledger. If you choose transaction calendar, system will not allow user to record

any type of transaction on non working days, and we can see the balances on daily basis also.

Steps:

1. Set up Transaction calendar2. Create new set of books, assign this transaction calendar to new SOB3. At SOB √ Enable average balances and assign “Net income account”

(No, No, Revenue, No, No)4. Create new responsibility for general ledger average balances5. Assign profile option “GL Ledger name” to the GL responsibility6. Assign this responsibility to user7. Open periods in SOB8. Enter journal to see whether non working days enabled or not9. We can inquiry the balances by specific day wise (Only for Balance

sheet items)

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Financial Statement Generator – FSG

FSG is dynamic tool in General Ledger to build reports such as Balance Sheet and Income Statement.

Through FSG we can build reports in simple manner without writing any codes.

The report is consist of Rows and Columns, and is used Row set & Column set to define rows and columns.

Steps:

1. Define row setNavigation: Reports à Define Row set

2. Define Column setNavigation: Reports à Define à Column set

3. Define ReportNavigation: Reports à Define à Report

4. Run ReportNavigation: Reports à Requests à Financial

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General Ledger period Closing Procedures  1. Set the status of the first accounting period in the new fiscal year to Future Entry.   Note: The first period of the new fiscal year should not be opened until all of the year–end processing for the last period of the current year has completed.   2. Transfer data from all of your subledgers and feeder systems to the GL_INTERFACE table.   3. Run the Journal Import process to populate the GL_JE_BATCHES, GL_JE_HEADERS, and the GL_JE_LINES tables. This can be done automatically from the subledger systems, or manually from Oracle General Ledger.   4. Close the period for each subledger. This prevents future subledger transactions from being posted to General Ledger in the same period.   5. Review the imported journal entries in Oracle General Ledger. You can review them online or in reports. Reviewing journal entries before posting minimizes the number of corrections and changes that need to be made after posting. Below is a list of useful reports: • Journal Batch Summary Report • General Journal Report • Journal Entry Report • Journal Line Report • Journal Source Report • Journals by Document Number Report (when document sequencing is used) • Unposted Journals Report.   6. Post the imported journal entries.  You can also schedule Autopost to pick up and post journals transferred from subledgers on a regular basis. This reduces the volume of posting done at month end.  

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8. Revalue balances to update foreign currency journals to your functional currency equivalents.   9. Post all journal entries, including: manual and reversals.   10. Update any unpostable journal entries and then post them again. Common reasons for unpostable batches include: • Control total violations • Posting to unopened periods • Unbalanced journal entries   11. Run General Ledger reports, such as the Trial Balance reports, Account Analysis reports, and Journal reports.   12. Create and post adjusting entries and accruals in the adjusting period.   13. Run Trial Balance reports and other General Ledger Reports in the adjusting period after adjustments are made.   14. Close the last period of the fiscal year using the Open and Close Periods window. 15. Open the first period of the new fiscal year to launch a concurrent process to update account balances. Opening the first period of a new year automatically closes your income statement and posts the difference to your retained earnings account specified in the Set of Books form.   16. Run FSG reports for the last period of the year.

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