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

Oracle E-Business Suite - Release 12 Oracle General Ledger Technology Course Material April-2009 1

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

Oracle General Ledger Introduction 3

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

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

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

Oracle General Ledger Accounting Manager Setup 7

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

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

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

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

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

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

Specify Ledger Components 14

Add Reporting Currencies 15

Save Accounting Setup 16

Complete Ledger Basic Accounting Setup 17

Review Ledger Setup and complete remaining setup 18

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

Specify Retained Earnings account 20

Complete remaining Options 21

Complete Advanced Options 22

Assign Balancing segment value to Ledger 23

Currency Translation Options 24

Complete Ledger Setup 25

General Ledger Accounting Setup Program is auto submitted on completion 26

Review the General Ledger Accounting Setup Program 27

Review the Ledger Definition 28

Create Legal Entity 29

Ledgers Created 30

Associate Legal Entity to Ledger 31

Create Operating Unit and Assign it to Legal Entity 32

Run Replicate Seed Data Program from System Administrator Responsibility 33

Create General Ledger Responsibility 34

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

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

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

First Period Opened 38

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

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

Ledger Sets 41

Concurrent Request fired for compilation on saving Ledger Set definition 42

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

Oracle General Ledger Key Setups 44

Segment values 45

Cross Validation Rules 46

Security Rules 47

GL Accounts Combinations 48

Shorthand Alias 49

Rollup Groups 50

Summary Accounts 51

Sequences 52

Setup Journal - Sources 53

Journal Categories 54

Auto Post 55

Auto Reverse 56

Setup- Currencies 57

Setup- Tax Options 58

Journal Approval Limits 59

Setup-Others-Schedules & Maintenance 60

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

Oracle General Ledger Journal Entry 62

Journal Entry- Batches 63

Journals- Manual Journal Entry 64

Posting Journal 65

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

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

Set up Tax Options in General Ledger 68

Tax Journal Created 69

Auto Copy Batch 70

Journal Wizard 71

GL: Default Desktop Viewer Profile Option for Excel Versions 72

Notification for Prior Period Journal Entry 73

Journals Mass Allocation 74

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Recurring Journals 76

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Multiple Recurring Journals Created 78

Generate Journal Reversal, Allocation, Recurring & Carryforward 79

Schedule Allocation & Recurring Journal 80

Auto Allocation Workbench/View Status 81

Journal Import You can import Journals for multiple ledgers 82

Encumbrance Journal 83

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

Oracle General Ledger Journal Approval 85

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

Ledger Setup Enable Journal Approval 87

Journal Source level 88

Employee Hierarchy 89

Profile Options 90

Authorization Limits 91

Enter Journal Exceeding Preparer limits 92

Approver Approves Journal 93

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

Oracle General Ledger Budgets 95

Budgets 96

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

Open Next Budget Year 98

Enter Display Sequence 99

Budget Organization Account Ranges Assignment 100

Budgetary Control Options 101

Enter Account Assignments 102

Enter Budgetary Control Options 103

Enter Budget Journal 104

Create Budget Journal 105

View Results 106

Budget Journal Created 107

Enter Actual Journal against Budgeted Account 108

View Results 109

Changed Amount to INR 45000 110

View Results 111

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

Oracle General Ledger Inquiry 113

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

Account Analysis and Drilldown 115

Drill Down to Account balances Level 116

Drill Down to Journal batches Level 117

Drill Down to Journal Level 118

Average balance Inquiry Screen 119

Budget Inquiry Screen 120

Journal Inquiry Screen 121

Funds Available Inquiry Screen 122

Account Analysis and Drilldown 123

Export Details 124

Create View 125

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

Oracle General Ledger Foreign Currency Transactions 127

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

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

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

Creation & Assignment of Translation Adjustment account 131

Enter Foreign Currency Journal USD Journal Conversion 132

Submitting Translation 133

Check Trial Balance and compare functional and Foreign currency trial 134

Trial balance Output - INR Trial balance Output - USD 135

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

Run Revaluation Program 137

Run Revaluation Program 138

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

Change Currency Rate to 60 instead of 50 140

Resubmit Revaluation Program 141

Revaluation batch created as per Output file 142

Revaluation Journal 143

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

Oracle General Ledger Consolidation 145

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

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

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

COA Mapping 149

Segment Mapping Rules 150

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

Transfer- Data and Data Set 152

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

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

Oracle General Ledger FSG (Financial Statement Generator) 155

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

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

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 1 101.101.101.10010.000.000 250000 2 101.201.101.10010.000.000 200000 3 101.301.101.10010.000.000 150000 4 101.401.101.10010.000.000 100000 5 101.501.101.10010.000.000 50000 6 101.000.101.40010.000.000 750000 158

FSG-Row Set 159

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Column Set 161

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Report 163

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

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

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

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

Content Set 168

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

Output with Content Set to Override Row set Definition. 170

FSG Display Set & Group 171

FSG Report Set 172

FSG-Auto Copy Options in Auto Copy 173

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

Oracle General Ledger FSG & XML Publisher 175

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

Sample PDF Output generated 177

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

Output from Program - Publish FSG Report 179

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

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

Oracle General Ledger Profile Options 182

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

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

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

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