Oracle E-Business Suite - Release 12 Oracle General Ledger Technology Course Material April-2009

Transcription

1 Oracle E-Business Suite - Release 12 Oracle General Ledger Technology Course Material April

2 Contents 1. Introduction 2. Accounting Manager Setup 3. General Ledger -Key Setups 4. Journal Entry 5. Journal Approval 6. Budgets 7. Inquiry 8. Foreign Currency Transactions 9. Consolidation 10. FSG-Financial Statement Generator 11. FSG & XML Publisher 12. GL Important Profile Options 2

3 Oracle General Ledger Introduction 3

4 Overview General Ledger (GL) is the core accounting module where all the accounting entries created in sub-ledgers like AP,AR,FA,CM of Finance domain or PO,INV,OM of SCM domain and other modules like Projects are stored. To start using GL module first step is to setup the GL module which includes setting up of Ledger. Ledger is setup by using Accounting setup manager. Ledger is sum of Chart of accounts, currency, calendar and accounting convention. To start using one primary ledger is required. Optionally multiple secondary ledgers can be created. Once Ledger is setup, other setups like Journal Source, category, sequencing etc.. needs to be created. GL provides users Journal Entry screen to enter Functional, foreign and tax journals. Recurring and mass allocation further simplified users job in auto generating journals. Journals from sub-ledgers are imported in GL using Journals Import feature. Users can run standard reports to view accounting details or they can create custom reports via FSG. GL also provides features like Inquiry, Budgets, consolidation and average balance processing to users. 4

5 Oracle General ledger & Other Modules Oracle Order management Oracle Receivables Oracle Fixed Assets Accounting Information Flows into General Ledger from all sub-ledger Modules Oracle Inventory From Journal Entries Lines in General Ledger one can drill down to transactions level of Sub-ledgers Oracle General Ledger Oracle Purchasing Oracle Payables Oracle Cash Management ***Above List of modules integrating to GL is demonstrative and not exhaustive list. 5

6 Oracle General ledger Overview Open Ledger Period Enter / Import/ Generate Journals Review/ Post/Report Oracle General Ledger Setups : -Accounting Manager Setup -Legal Entity -COA - Ledger -Ledger Sets -Data Access Sets Revalue/ Translate/ Consolidate Account Inquiry/ FSG/ Standard Report Close Accounting GL Period 6

7 Oracle General Ledger Accounting Manager Setup 7

8 Accounting Setups Accounting Setup Manager Screen is used to create Ledger and complete Ledger related setups. It also allows creation of Legal Entity and Operating Units. Ledger is replacement of prior versions Set of Book. Additional component in Ledger is Accounting Convention One needs to activate currencies and create Chart of Account first before going to this screen. You can also create Legal entity & operating unit from Accounting Setup manager and also assign your ledger to Legal entity. You can also associate a secondary ledger to your primary ledger. You can also link Reporting currencies to your primary ledger which will replace your earlier version of MRC- Multiple Reporting Currencies. 8

9 Setup- Financials- Accounting Manager Use this Tab to create legal entity Use this window to search existing Ledgers or create a new Ledger 9

10 Create Chart of Account - COA Chart of Account (COA) is a combination of segments. Each segment represents one business/legal entity or focus area which can be measured and accounted like company, cost centre, location, product and so on. How many segments should be there in COA,depends on Client as to till what level client wants to capture his accounting information which is both meaningful and manageable. 10

11 Create Segments of COA In implementation scenario, this information is provided by client as to how they want to capture their accounting information and to what level they want to capture. 11

12 Flexfield Qualifiers Natural Account and Balancing segment are mandatory qualifiers. Balancing segment is attached to a segment on which trial balance needs to be Balanced or in other words Journal entry Debit and credit needs to be balanced on balancing segment. Natural Account segment once attached identifies/classifies each value stored in that segment as Asset, Liability, Expense, Revenue or Owner s Equity. 12

13 Accounting Setup Manager Create Ledger Skip Legal Entity creation if you want 13

14 Specify Ledger Components 14

15 Add Reporting Currencies 15

16 Save Accounting Setup 16

17 Complete Ledger Basic Accounting Setup 17

18 Review Ledger Setup and complete remaining setup 18

19 Specify Standard Information, Accounting Calendar and Sub-ledger accounting options 19

20 Specify Retained Earnings account 20

21 Complete remaining Options 21

22 Complete Advanced Options 22

23 Assign Balancing segment value to Ledger 23

24 Currency Translation Options 24

25 Complete Ledger Setup 25

26 General Ledger Accounting Setup Program is auto submitted on completion 26

27 Review the General Ledger Accounting Setup Program 27

28 Review the Ledger Definition 28

29 Create Legal Entity 29

30 Ledgers Created 30

31 Associate Legal Entity to Ledger 31

32 Create Operating Unit and Assign it to Legal Entity 32

33 Run Replicate Seed Data Program from System Administrator Responsibility 33

34 Create General Ledger Responsibility 34

35 Setting up Profile Option: GL Ledger Name Profile Option: GL Data Access Set Automatically set 35

36 Data Access Set By default one Data access set is create by system with the name of your Ledger. Data Access set shows the access level on a particular ledger. Default one is Full ledger. Custom data access set can be created and assigned to users to limit their access. 36

37 Open /Close Period Open Period of Ledger to allow user enter financial transactions. First period should be carefully opened after confirmation from client. 37

38 First Period Opened 38

39 Add more ledgers to a Data Access Set if multiple ledger s access is required. 39

40 Setup Profile Option:GL: Data Access Set Result Journal Entry Screen you can select any of the Ledger assigned to Data access set 40

41 Ledger Sets 41

42 Concurrent Request fired for compilation on saving Ledger Set definition 42

43 Practice Exercise 1. Create Chart of Account, Currency & Calendar Use XXX-your employee number with your setups. 2. Create Ledger and complete all related setup via Accounting setup manager. 3. Create and assign legal entity and operating unit. 4. Create ledger Sets. 5. Create Data Access Set. 6. Setup Profile options. 7. Create General Ledger Responsibility for your Ledger. Use XXX-your employee number with your setups. 8. Open First Period of your ledger 43

44 Oracle General Ledger Key Setups 44

45 Segment values 45

46 Cross Validation Rules 46

47 Security Rules 47

48 GL Accounts Combinations 48

49 Shorthand Alias 49

50 Rollup Groups 50

51 Summary Accounts 51

52 Sequences 52

53 Setup Journal - Sources 53

54 Journal Categories 54

55 Auto Post 55

56 Auto Reverse 56

57 Setup- Currencies 57

58 Setup- Tax Options 58

59 Journal Approval Limits 59

60 Setup-Others-Schedules & Maintenance 60

61 Practice Exercise 1. Review the Setup forms covered in this Key set up session. 2. Create Values in all your Value sets. 3. Create Your own Journal Category, Journal Source. 4. Create Security Rules. 5. Create Cross Validation Rules 61

62 Oracle General Ledger Journal Entry 62

63 Journal Entry- Batches 63

64 Journals- Manual Journal Entry 64

65 Posting Journal 65

66 Reversing Journals 1.Press Reverse Button on the Posted Journal which needs to be reversed 2. Choose Period in which reversal should have accounting impact 3. Concurrent Program for Reversal will be submitted 4. Reversed Journal Created 66

67 Tax Journals 1. Enable Journal Entry tax at Ledger Lever in Accounting Setup 2. Complete Tax Regime, Tax Code & Tax Rate Set up in E-Business Tax Responsibility 67

68 Set up Tax Options in General Ledger 68

69 Tax Journal Created 69

70 Auto Copy Batch 70

71 Journal Wizard 71

72 GL: Default Desktop Viewer Profile Option for Excel Versions 72

73 Notification for Prior Period Journal Entry 73

74 Journals Mass Allocation 74

75 75

76 Recurring Journals 76

77 77

78 Multiple Recurring Journals Created 78

79 Generate Journal Reversal, Allocation, Recurring & Carryforward 79

80 Schedule Allocation & Recurring Journal 80

81 Auto Allocation Workbench/View Status 81

82 Journal Import You can import Journals for multiple ledgers 82

83 Encumbrance Journal 83

84 Practice Exercise 1. Create Simple Functional Journal. 2. Use Auto Copy Feature to copy a journal. 3. Create tax Journal 4. Create Foreign Currency Journal. 5. Post Journals 6. Reverse Journals 7. Create Recurring Journals and Generate Recurring journals. 8. Create and generate Mass allocation Journal. 9. Review Journal Import Screen. 84

85 Oracle General Ledger Journal Approval 85

86 Journal Approval Prerequisites: Enable Journal Approval at Ledger level Enable Journal Approval at Journal Source Level Create Employee Hierarchy Enter Authorization Limits Set profile Options: Journals: Allow Preparer Approval & Journals: Find Approver Method. 86

87 Ledger Setup Enable Journal Approval 87

88 Journal Source level 88

89 Employee Hierarchy 89

90 Profile Options 90

91 Authorization Limits 91

92 Enter Journal Exceeding Preparer limits 92

93 Approver Approves Journal 93

94 Practice Exercise 1. Complete Setup related to Approval Enabling in Ledger. 2. Setup Approval related profile options. 3. Create two employees and setup Supervisor hierarchy. 4. Create Authorization limits for these employees. 5. Create Journal exceeding Limit and review notification in supervisor user ID. 94

95 Oracle General Ledger Budgets 95

96 Budgets 96

97 Define Budget Open: The budget is available for update and budget entry. Current: The budget is open, and it is the default budget when you use most budgeting and inquiry forms. You can have only one Current budget at a time for each ledger. Frozen: The budget is unavailable for update or budget entry. 97

98 Open Next Budget Year 98

99 Enter Display Sequence 99

100 Budget Organization Account Ranges Assignment 100

101 Budgetary Control Options 101

102 Enter Account Assignments 102

103 Enter Budgetary Control Options 103

104 Enter Budget Journal 104

105 Create Budget Journal 105

106 View Results 106

107 Budget Journal Created 107

108 Enter Actual Journal against Budgeted Account 108

109 View Results 109

110 Changed Amount to INR

111 View Results 111

112 Practice Exercise 1. Create Budget & Budget Organization 2. Simulate Advisory and None Scenario. 3. Simulate QTD,YTD and PJTD scenario. 112

113 Oracle General Ledger Inquiry 113

114 Inquiry Account, Average, Budget, Journal & Funds You can review your account balances, journals and funds in Inquiry section 114

115 Account Analysis and Drilldown 115

116 Drill Down to Account balances Level 116

117 Drill Down to Journal batches Level 117

118 Drill Down to Journal Level 118

119 Average balance Inquiry Screen 119

120 Budget Inquiry Screen 120

121 Journal Inquiry Screen 121

122 Funds Available Inquiry Screen 122

123 Account Analysis and Drilldown 123

124 Export Details 124

125 Create View 125

126 Practice Exercise 1. Perform Inquiry for your Journals & Accounts. 2. Use Drill down feature to check balances details. 3. Use Account Analysis drill down. 4. Export the details. 5. Modify/Create the View 126

127 Oracle General Ledger Foreign Currency Transactions 127

128 Process Involved due to Foreign Currency In Ledger if Reporting Currencies setup is used then revaluation journal is created automatically. Functional Currency is specified at Ledger Level. Transactions in Sub-Ledger or Journals in GL may be entered in the Foreign currency due to the nature of transaction. Company may be required to report its balances in currency other than Ledger Functional Currency. In Such scenario Conversion, Revaluation and Translations are processes which are involved. Below are some scenarios where Subsidiary company s transaction and Functional currency may be same or different than the Parent company and types of processes which will be involved in such scenarios. Remeasurement includes Conversion and Revaluation. Conversion happens at the time of transaction and Revaluation happens when program Revaluation is run for a range of accounts and for a period. 128

129 Pre-Requisites for Foreign Currencies( Conversion/Revaluation & translation) Define & Enable Currencies. Define Currency Conversion rates. Assign a currency to a ledger Define a Cumulative Translation Adjustment account ( Type Owners Equity for Balance Sheet items and one for Revenue and expense type for P/L )for your ledger. Define Revaluation unrealized gain/loss account Enter Daily Rates. Assign rate types for your ledger Enter Historical rate (Optional) Enable Segment tracking segment to track translation and revaluation accounts tracked on a secondary segment. 129

130 Ledger Setup Reporting Currency Functional Currency Reporting Currency Currency translation Options 130

131 Creation & Assignment of Translation Adjustment account 131

132 Enter Foreign Currency Journal USD Journal Conversion 132

133 Submitting Translation 133

134 Check Trial Balance and compare functional and Foreign currency trial 134

135 Trial balance Output - INR Trial balance Output - USD 135

136 Currency Revaluation Enter Foreign Currency Journal effective date 01-mar-09. Do the revaluation on 31-Mar

137 Run Revaluation Program 137

138 Run Revaluation Program 138

139 Revaluation Output- NO Batch generated as there was no difference in the currency rate as on transaction date and as on Revaluation date. 139

140 Change Currency Rate to 60 instead of

141 Resubmit Revaluation Program 141

142 Revaluation batch created as per Output file 142

143 Revaluation Journal 143

144 Practice Exercise 1. Enter Currency Daily Rates. 2. Assign reporting currencies in ledger setup. 3. Create Translation adjustment account. 4. Enter Foreign Currency Journal. 5. Change Foreign Currency rates 6. Run Revaluation program 7. Run Translation program. 8. Review report output. 9. Review revaluation journal 144

145 Oracle General Ledger Consolidation 145

146 Consolidation Consolidation is the period-end process of combining the financial results of separate subsidiaries with the parent company to form a single, combined statement of financial results. The Global Consolidation System (GCS) provides the flexibility to help you manage your consolidation needs regardless of your company structure. 146

147 Consolidation Methods There are two methods you can use to achieve consolidated results with Oracle Applications: 1. Reporting Consolidations: (Discussed in FSG section in next slides) Define an FSG report which consolidates data stored in a single ledger or which sums data across separate ledgers on the same applications instance. 2. Data Transfer Consolidations: Serves global enterprises with multiple ledgers or multiple applications instances. With data transfer consolidations, you move your financial data from diverse ledgers and data sources into a single consolidation ledger. You can report on and analyze consolidated financial information from this consolidated ledger. 147

148 Consolidation Steps Prepare Consolidation Data- Revalue and Translate Subsidiary balances. Create Consolidation & COA mappings. Transfer Data. Eliminate Balances. Report. 148

149 COA Mapping 149

150 Segment Mapping Rules 150

151 Consolidation Definition In R12 you can consolidate your Reporting currency ledger with parent Ledger 151

152 Transfer- Data and Data Set 152

153 Elimination Define & Generate The Oracle General Ledger Automatic Intercompany Eliminations program eliminates intercompany balances. Create an elimination set which is a batch of one or more elimination journal entries. Full Eliminations: Elimination sets can optionally use an elimination company to fully eliminate a group of intercompany elimination entries for a set of subsidiaries. If your elimination journals are out of balance, you can specify balancing options to either allow out of balance journals to be created or to post the net difference to an alternative account. In addition, threshold rules can be applied to prevent the creation of the balancing lines if the net difference exceeds a specific amount, a percentage of a particular account, or a percentage of the total journal. You generate the elimination set every period to automatically create the elimination journal entries. You have the option of automatically posting the journal now or you can wait till you review it to post. You can also use the Consolidation Workbench to track the elimination status of your elimination sets and post any generated elimination sets. 153

154 Practice Exercise Run revaluation and translation for your Subsidiary book. Create Consolidation mappings. Run consolidation. Transfer Data. Eliminate entries. Review Consolidated batch. Post Consolidated batch in parent book. 154

155 Oracle General Ledger FSG (Financial Statement Generator) 155

156 FSG Financial Statement Generator (FSG) is a powerful report building tool for Oracle General Ledger. Purpose of FSG: Generate financial reports, such as income statements and balance sheets Generate presentation quality financial reports with XML Publisher Design custom financial reports to meet specific business needs Print & schedule Reports. Print reports to tab-delimited files for easy import into client-based spreadsheet programs. Create XBRL instance documents for easier exchange and analysis of your reporting information. 156

157 Required Component Row Set Column Set Report Optional Component Content Set Row Order Display Set/Group Report Set 157

158 Before Creating/Running FSG ensure that you have accounting data for the month report is run for. To ensure this we have passed below journal for Mar-09 and will prepare FSG to capture this data in FSG report. Line Account Entered: Debit Entered: Credit

159 FSG-Row Set 159

160 160

161 Column Set 161

162 162

163 Report 163

164 What if Use E-E-E-E-E-E-E in the row set assignment 164

165 What if Use T-T-T-T-T-T in the row set assignment What if Use T-T-E-T-T-T in the row set assignment ( Expand in Cost Centre segment and Total in all others) 165

166 FSG Comparative Statement Add one more Column in the Column Set with Offset -1 if you want previous month s data in that column. 166

167 Row Order Ranking by Column and Display 3 columns Row Order Change Display of 3 columns and change of Sequence. 167

168 Content Set 168

169 FSG-Content Set Output when T-T-T-T-T-T in the row set assignment. Content Set is used to Override Row Set definition. Content Set Options 169

170 Output with Content Set to Override Row set Definition. 170

171 FSG Display Set & Group 171

172 FSG Report Set 172

173 FSG-Auto Copy Options in Auto Copy 173

174 Practice Exercise 1. Create a Row Set 2. Assign account in the row set 3. Create a column set and assign period types in the column set. 4. Create default headings in column set builder 5. Create and run report 6. Create Optional components and see how report differs with each component. 174

175 Oracle General Ledger FSG & XML Publisher 175

176 FSG & XML Publisher Run FSG From Financial Reports window with Output option as XML Step 1 Go to Reports- Run-Financials and select FSG report which is required in XML format Step2 After Concurrent Program is complete. From SRS window Select XML Report Publisher and in parameter select your Request which completed In Step1. Select Right values in Output format chose either Excel/HTML/PDF or RTF 176

177 Sample PDF Output generated 177

178 FSG & XML Publisher From SRS Window Publish your FSG report with XML Publisher 178

179 Output from Program - Publish FSG Report 179

180 FSG & XML Publisher Republish the FSG report against a different report template 180

181 Practice Exercise 1. Run your FSG reports in different ways mentioned in this FSG & XML session. 2. Review and check the output. 181

182 Oracle General Ledger Profile Options 182

183 Oracle General Ledger Profile Options GL : Default Desktop Viewer GL: Data Access Set GL Account Analysis Report: Enable Segment Value Security on Beginning/Ending Balances GL AutoAllocation: Continue to Next Step if No Journal Created GL Consolidation: Cross Instance Workflow Notification Contact GL Consolidation: Exclude Journal Category During Transfer GL: Income Statement Accounts Revaluation Rule GL: Journal Review Required GL: Launch AutoReverse After Open Period GL: Owner's Equity Translation Rule GL Consolidation: Preserve Journal Batching GL: Reverse Transaction Codes on Un-natural Balances GL Consolidation: Preserve Journal Effective Date GL:Create Encumbrance Entries for Budgetary Accounts GL Consolidation: Separate rows for debit and credit account balances in consolidation journal GL:Create Interfund Entries 183

184 Oracle General Ledger Profile Options GL Daily Rates: Cross Rates Override GL Journal Import: Separate Journals by Accounting Date GL Ledger ID GL Ledger Name GL Revaluation: Days to Roll Forward Daily Rates GL Revaluation: Tracking by Cost Center GL Revaluation: Validate Gain/Loss Accounts GL Summarization: Accounts Processed at a Time Per Delete Worker GL Summarization: Maintenance Index Selection Factor GL Summarization: Number of Delete Workers GL Summarization: Rows Deleted Per Commit GL Translation: Revenue/Expense Translation Rule GL:Enforce Account Category Balancing Journals: Allow Multiple Exchange Rates Journals: Allow Non-Business Day Transactions Journals: Allow Posting During Journal Entry Journals: Allow Preparer Approval Journals: Default Category Journals: Display Inverse Rate Journals: Enable Prior Period Notification Journals: Find Approver Method Journals: Mix Statistical and Monetary Journals: Override Reversal Method GL: Auto Allocation Rollback Allowed GL: Archive Journal Import Data 184

185 Practice Exercise 1. Review Relevant Profile Options by logging as System Administrator 185

186 186