Objective: This Document is to make the user to understand the flow of accounting in Oracle applications, in Purchasing, Manufacturing, Inventory,

Order Management and Financial Modules Payables, eceivables, !ash management and "eneral ledger and not to cover all scenarios and

#usiness cycles$ I have not covered few other modules like Fi%ed &ssets, Pro'ects, Treasury, Payroll, (ncumbrance etc$, in this Document which also generates accounting entries$ This Does not cover the technical aspects like, Table, columns etc$, for which you have standard diagnostics scripts which can be run and viewed for every activity$

Business Case: Parry !onfectionery )td is Manufacturers of !offee #ite, !aramilk, !oconut
Punch, )acto *ing, Orange !andy variety of !hocolates$ The !hocolates Manufacturing Process is as follows Milk is #oiled to evaporate the +ater content ,-.. Degree centigrade and it is called #oiled Milk Then to the boiled Milk, /ugar and !ocoa are added which has the water content$ This is again boiled to evaporate all the water content to make it as Thick )i0uid Milk called !ondensed Milk !ondensed Milk is allowed to be allowed to pass through a drier which takes all +ater content and make it as dry chocolate$ The dry chocolates are allowed to pass through a cutting machine which cuts the chocolates into different pieces of 1 grams, -. grams, etc Then the pieces of chocolates are passed to a wrapper machine which wraps the chocolate and pass it on to a container Then the wrapped chocolates from the container are sent to a Packing machine which picks up chocolates and makes them as 1.. grams, -*" pack chocolate covers$ Then the chocolates are placed in -. kg, 2. *g carton bo%es and sent to !ustomers

Key Points: I am using 3ision Operations to e%plain the flow of accounting entries Business Group: 3ision !orporation Set of Books: 3ision Operations Operating Unit: 3ision Operations Inventory Organization: 3ision Operations 4Master5 3-, /eattle Manufacturing 4!hild5 MCosting Met o!: /tandard !osting "isc#ai$er: % is "ocu$ent &as create! &it
$y o&n assu$ptions to e'p#ain t e concept of accounting an! t e na$es of t e co$panies use! in t is artic#e are on#y to e'p#ain t e accounting concept &it !ata assu$ptions an! none of t e Co$pany is not responsib#e for t e "ata or t e process infor$ation provi!e! in t is artic#e(

Case Stu!y
Parry !onfectionery )td is Manufacturers of !aramilk, )actoking and !oconut Punch !hocolates$ Their /tatement of &ffairs as on 6-7Oct72..8 is as follows Ba#ance s eet as on )*+Oct+,--. /iabi#ities /hare !apital /ong ter$ /oans 9: Debentures )oan from I!I!I Current /iabi#ities /undry !reditors 0$ount in US" 1.... 1.... 21... 1.... 0ssets 1i'e! 0ssets #uilding Plant and Machinery Investments Current 0ssets Inventory /undry Debtors #ank !ash %ota# 0ssets 0$ount in US" 21... 81... 2.... 21... 2.... 81.. 21.. *.2---

%ota# /iabi#ities

*.2---

During the period .-7;ov72..8 to 6.7;ov72..8 following Transactions took place -5 a5 Purchased Inventory as follows i5 Milk 1.. )trs , -2</D per )tr = >... </D ii5 /ugar 1.. *gs , -.</D per *g = 1... </D iii5 !ocoa 1.. *gs , 21 </D per *g = -21.. </D 25 eturned Materials to /upplier is 1. )trs of Milk 65 Made Payment To /uppliers for Milk and /ugar ?5 During the month 8 kgs of !aramilk, -2 *gs of !offee #ite and > *gs of )ackto *ing !hocolates the Discrete 'ob is created 15 The actual completed output of the Finished "oods Items are 1 *gs of !aramilk, -. *gs of !offeebite and > *gs of )actoking >5 /ales Made during the Month is 1 *gs of caramilk and, -. *gs of !offee #ite and ? *gs of )acto *ing 85 Payment received from !ustomers only for !offeebite 95 Out of the Items sold - kg of !aramilk was spoiled for which the !ustomer has sent back the material @5 One *g of )actoking was spoiled in Transit for which !ustomer need to be issued a !redit note as Material non7returnable -.5 During the month the company paid following e%penses a5 Packing Material =-.. Paid by !ash b5 &dvertisement = 21. Paid by #ank to OrgMarg !ompany --5 !ompany withdrew -... </D for Office use -25 Interest Income received for the month is -.. </D -65 #ank charges for the month is 1 </D -?5 Provision for Ta% to be made 1.. </D -15 (mployees Travel (%penses Provision to be made 6.. </D

3M4 1inis e! Goo!s 3/acto King5 Cara$i#k5 Coffee Bite4

!ondensing Department -. Aours ,2. </D per Ar Packing "epart$ent - Aours , 1. </D per Milk /ugar !ocoa -. )trs , s-. 1 *gs , s-. ? *gs , s21 The /tandard cost of a Material Item is as follows !ow Milk /ugar !ocoa -.. </D B 1. </D B -.. </D 77777777777777 /tandard !ost 21. </D CCCCCCCCC Manufacturing !ost of !hocolate is as follows Purchase /tandard !ost is Operations !ost !ondensing Dept !ost 2.. </D Packing !ost 1. </D Manufacturing Cost 21. </D

21. </D 77777777777777 2-- US" CCCCCCCC

/elling Price !offee #ite !aramilk )acto *ing 8.. </D >1. </D >.. </D

% ings to kno&: I hope all of you might have gone through my previous two accounting Materials and found it useful$ #ut you should understand there are always challenges and advantages of using ( P system to generate the information and accounting transactions$ +e will discuss the details briefly here I$portant Points: -5 In the Manual or )egacy accounting systems, we will not have the concept of Intermediary accounting like &ccruals etc$D This is a system re0uirement for it to perform the matching and meet the /tandard accounting procedures accruals accounts need to be created$ 25 The Intermediary accounts like &ccruals, Inter company Transfer account etc$, must be defined as a #alance sheet account meaning either as an &sset or )iability$ +hyE The reason being if you define it as evenue or (%pense &ccount, then it will have the impact on Profit and )oss at the end of the period which is not correct$ /o keep it in mind whenever you define an Intermediary account it must be a #alance sheet account like &sset or )iability account type$ 65 The ( P system always follows perpetual system of Inventory which means the stock eceipt and Issues are accounted immediately and not using the Periodical Inventory system$ To understand the difference between the two refer to the following < ) a$ httpFGGccba$'su$eduGaccountingGP( P(T<&)P( IODI!H($ATM) b$ httpFGGccba$'su$eduGaccountingGM&I;M(;<-$ATM) ?5 The !onfectionery Industry will fall under Process manufacturing or discrete Manufacturing might be a big debate, but for this e%ercise, I have e%plained only in discrete manufacturing and I have not considered the ;ormal losses etc$, in the Process like +ater evaporation )oss etc$, in this e%ercise

In!e'

1. Creation of Ite$s5 Ite$ Costs an! Bi## of Materia#

,( /oa!ing of Opening Ba#ances

3. %ransactions Creation 4. Materia# 6eturne! to Supp#ier 5. Create Supp#ier Invoice an! Make pay$ent to Supp#ier 6. Create "iscrete 7ob for Coffeebite5 Cara$i#k an! /actoking 7. Create Sa#es Or!er5 Book t e Or!er5 re#ease an! S ip confir$ t e Goo!s 8. Pay$ent receive! fro$ Custo$ers on#y for Coffeebite 9. Out of t e Ite$s so#! * kg of Cara$i#k &as spoi#e! for & ic t e Custo$er as sent
back t e $ateria#

10. One Kg of /actoking &as spoi#e! in %ransit for & ic Custo$er nee! to be issue! a
Cre!it note as Materia# non+returnab#e **( "uring t e $ont t e co$pany pai! fo##o&ing e'penses i4 Packing Materia# 8*-- Pai! by Cas ii4 0!vertise$ent 8 ,2- Pai! by Bank to Org Marg Co$pany

12. Co$pany &it !re& *--- US" for Office use 13. Interest Inco$e receive! for t e $ont is *-- US" 14. Bank c arges for t e $ont is 2 US" 15. Provision for %a' to be $a!e 2-- US" 16. 9$p#oyees %rave# 9'penses Provision to be $a!e )-- US" 17. Sub /e!ger 9ntries %ransfer to Genera# /e!ger
*:( Posting in Genera# /e!ger *;( 6unning of %ria# Ba#ance5 Profit an! /oss 0ccount an! Ba#ance S eet

Intro!uction: The Opening #alance of &ssets and )iabilities e%cept the eceivables, Payables and Inventory will be loaded through a Hournal in any Implementation$ The Payables balances will be created from &ccounts Payable and eceivables will be created from &ccounts eceivables and Inventory will be created from Inventory module using cycle counting ad'ustment entries$ The 3ision Instance will have certain transactions already created and those transactions will have the period end balances as Opening balance$ Aence for this e%ercise ignore the Period beginning balance and period closing balance and ensure the Period do not contain any transactions$ ;avigation Path Oracle "eneral )edger OthersG e0uests ParameterF #alancing /egmentF !ompany PeriodF ;ov7.8 !urrencyF </D

This clearly shows there are no transactions created for the period ;ov7.8

*( Creation of Ite$5 Ite$ Costs an! Bi## of Materia# 3BOM4 I have e%plained in my Procure to Pay 7 Order to !ash 7 (nd to (nd !ycle Functional Documents in detailed steps on Aow to create an item, Item costs and #ill of Material in detail$ /o please replicate the same steps to get the cost of an Item The !ost of the Item is as follows after we define the Item, Item costs, outings and #ill of Material ;avigation path Manufacturing 3ision Operations !hoose Inventory OrganiIation as M- /eattle Manufacturing #ill of Materials G #ill of Material Juery for Item !aramilk !lick on Tools !lick on oll up costs !hoose !ost type as Pending and un the eport 3iew the concurrent e0uest when it is completed ;ormal esources, Departments,

,( /oa!ing of Opening Ba#ances The Opening #alances will be loaded through Hournal as on 6-7Oct72..8 as per the #alance sheet provided in the case study$ The &sset and )iability balances are entered as it is and only for eceivables and Payables it is entered in /ub ledgers and transferred to ") and cleared the !learing account instead of using evenue and (%penses &ccount ;avigation Path "eneral )edger /uper <ser Hournals G (nter

The &ccounts Payables 4&ccount code 22-.5 and &ccounts eceivables 4&ccount code -2-.5 have not been entered instead the &ccounts Payables clearing &ccount 4&ccount code 222.5 and &ccounts eceivables clearing &ccount 4&ccount code -2?85 to which the balances are created which will be knocked off by the entries created from the /ub )edgers which will reflect the Open Invoices for &ging Purposes$

;avigation Path Payables 3ision operations Invoices G (ntry G Invoices !reate Invoices as per your individual supplier details and choose the ") Date in Distribution )ines as -7;ov72..8 which is the Opening #alances Date and choose the distribution )ine account as &ccounts Payable !learing &ccount$

;ow post the above Transactions to "eneral )edger This will create unposted Hournal (ntry as follows &ccounts Payables clearing &Gc Dr 1.... &ccounts Payables &Gc !r 1....

;avigation Path eceivables, 3ision Operations Transactions !reate Invoices e0uivalent to your open balances with various dates and create a Transaction type of open #alances and attach in the revenue account &ccounts eceivables !learing &ccount 4&ccount code -2?85 and create an Invoice and save the Transaction and post the transactions to "eneral )edger

This will create following accounting entry &ccounts eceivables 4-2-.5 &Gc &ccounts eceivables clearing 4-2?85 &Gc The ob'ective of doing this is to create &ging Dr 2.... !r 2.... eports in eceivables and Payables Module$

un the !oncurrent Program in ;avigation Path eceivables, 3ision Operations Interfaces G "eneral )edger

eceivables

3iew the accounting (ntries in "eneral )edger ;avigation Path "eneral )edger, 3ision Operations HournalsG (nter G Hournals

eview the Hournals ;avigation Path "eneral )edger, 3ision Operations HournalsG (nter G Hournals Juery for /tatus <nposted and period ;ov7.8

Post these Hournals which completes the Opening #alances are ready <ote: This way we can load the opening #alances of eceivables and Payables$ I have not covered )oading the opening #alances of Inventory which can be done using Miscellaneous Transactions or using !ycle counting ad'ustments$

)et us review the Trial #alance to view the opening balances of the Transactions created

)et us 3iew the &ging eports in Payables and eceivables ;avigation Path Payables, 3ision Operations OthersG e0uests G un /ingle e0uest !hoose Invoice &ging eport

&ging

eport in eceivables

;avigation Path eceivables, 3ision Operations eports G collections &ging eport ? #ucket

)et us run the #alance sheet and ensure that the Opening #alances are correct <ote: &s I mentioned before, please consider only the Period #alances for this case study and ignore the KTD balance which are 3ision Operations (ntry #alances ;avigation Path "eneral ledger, 3ision Operations eports G Financial !ompany #alance sheet

)( %ransactions Creation )et us e%ecute the Transactions one by one as mentioned in the case study and view their &ccounting Impact -5 a5 Purchased Inventory as follows i5 Milk 1.. )trs , -2</D per )tr = >... </D ii5 /ugar 1.. *gs , -.</D per *g = 1... </D iii5 !ocoa 1.. *gs , 21 </D per *g = -21.. </D +e will create a PO for the above through supplier ;estle )td$ I$portant <ote: There is ;o actual accounting (ntry "enerated, when you create a Purchase e0uisition 4P 5 or Purchase Order 4PO5$ If you have enabled budgetary control in ") /et of books and (ncumbrance &ccounting in Financial Options, then (ncumbrance entries are created in Purchasing Module$ (ncumbrance is not covered in this (%ercise$ ;avigation Path Purchasing, 3ision Operations Purchase orders G Purchase orders

The PO ??2. is created with /tatus incomplete and we need to get this approved by clicking &pprove #utton

<ote: The /tandard cost of Milk is -. </D per )tr and I have created PO with the rate of </D -2 to get the Purchase price variance account getting created$ +e will check when we receive the Inventory &ccount at the time of inventory receipt$

!reate eceipts for the Inventory Items ;avigation Path Purchasing 3ision Operations eceiving G eceipts !hoose Inventory Org M(nter Purchase Order field ??2. !lick on Find #utton

/elect the check bo% for the inventory eceived and enter the /ub inventory as /tores and /ave the ecord$ eceipt @>-. is created$

To view the &ccounting Distribution )ines created go to ;avigation Path Purchasing 3ision Operations eceiving G eceiving Transactions /ummary (nter eceipt ;umber as @>-. and click on Find #utton

!lick on Transactions #utton

eceipt Transactions /ummary form Opens$ !lick on Tools G 3iew &ccounting to view the &ccounting (ntries created I$portant <ote: The Destination Type is showing as receiving for the first line eceive transaction type and /econd )ine Destination Type is showing as Inventory for deliver transaction type$ The Functionality of this is as follows$ The First line is created when you receive inventory in main Inventory OrganiIation and when you do enter eceiving TransactionsD it will change it from Main Inventory OrganiIation to /ub Inventory$ It depends on the eceipt outing what you enter in PO eceiving control form$ +hen Kou set it as Direct delivery both lines will get created simultaneously and when you set it as /tandard eceipt, then the first line will get created when you enter eceipt and second line will get created when you do eceiving transaction and choose the /ub inventory$ The /ignificance of this from &ccounting Perspective is the destination type of receiving 4i$e$5 First line only you can view the accounting in Purchasing Module$ The /econd line where the Destination type is Inventory, you can view only in Inventory Module$ If you *eep the !ursor in second line and click on Tools, the 3iew &ccounting is disabled$

This has created following &ccounting (ntry in Purchasing Module Material Inspection &ccount Dr Inventory &P &ccruals &ccount !r

To view the Inventory Module &ccounting (ntries ;avigation Path Inventory 3ision Operations Transactions G Material Transactions "ive Date ange to find Transactions and choose the Milk distribution )ine It has created following accounting entries Inventory &Gc Purchase Price variance &Gc Material Inspection &Gc Dr 1... Dr -... !r >...

Kou !an 3iew the &ccounting (ntries for /ugar and !ocoa also for which ;o Purchase Price 3ariance created because there is no difference between /tandard !ost and the PO price

=( Materia# 6eturne! to Supp#ier eturned Materials to /upplier is 1. )trs of Milk ;avigation Path Purchasing, 3ision Operations eceiving G eturns (nter 1. )trs against the eceipt ;umber and /ave the Transactions

To view the &ccounting Distribution )ines in Purchasing created go to ;avigation Path Purchasing 3ision Operations eceiving G eceiving Transactions /ummary (nter eceipt ;umber as @>-. and click on Find #utton

To view the Inventory Module &ccounting (ntries ;avigation Path Inventory 3ision Operations Transactions G Material Transactions "ive Date ange to find Transactions and choose the Milk distribution )ine

2( Create Supp#ier Invoice an! Make pay$ent to Supp#ier Made Payment to /uppliers for Milk and /ugar ;avigation Path Payables, 3ision Operations Invoices G (nter G Invoices &n Invoice eceived from !adbury for -.@.. </D$ !reate an Invoice for -.@.. </D and match to PO ??2.

!lick on Match #utton and !hoose the PO and enter the Juantities as per the Invoice

!lick on Match #utton ;ow

Kou will get the following lines in the distribution )ines of invoice

!lick on &ctions #utton and 3alidate and then run the !reate &ccounting #utton$

Kou can see that system has created an Invoice Price 3ariance for </D 1..

;ow we need to make payment for the Invoice ;avigation Path Payables, 3ision Operations Invoices G (nter G Invoices Juery the Invoice ;umber -1>!lick on &ctions #utton and check the pay in Full check #o%

!lick on O* button

The Payment Form opens and chooses the document number, it reserves the Document and click on &ctions #utton and enable the check bo%, Format, Print and !reate &ccounting$ Kou will get the following screen

!lick on Tools G 3iew &ccounting /creen to view the &ccounting (ntries generated

)og on to !ash management Module and !reate a #ank /tatement for this amount and !lear the Transaction ;avigation Path !ash Management, 3ision Operations #ank statements G Manual !learing G !lear transactions !hoose the Transaction and click on clear transactions button$ Kou will find the transaction is vanished which means it is cleared$

;avigation Path Payables, 3ision Operations Payments G (ntry G Payments Juery for the payment ;umber 2?86 Kou will find &ccounted /tatus changed to partial

!lick on &ctions #utton and (nable create &ccounting check bo% and click on O* button

!lick on Tools G 3iew &ccounting to view the &ccounting (ntries !reated

This !ompletes the Procure to Pay cycle &ccounting Transactions$ +e will proceed for Manufacturing Transactions$

>( Create "iscrete 7ob for Coffeebite5 Cara$i#k an! /actoking During the month 8 kgs of !aramilk, -2 *gs of !offee #ite and > *gs of )ackto *ing !hocolates the Discrete 'ob is created ;avigation Path Manufacturing, 3ision Operations +IP G Discrete G Discrete Hobs !reate a ;ew Discrete Hob for each of the Product as mentioned above and change the status from <nreleased to eleased For detailed steps of creating Discrete Hob Manufacturing !ycleM efer my Previous Document LProcure to pay and

;avigation Path Manufacturing, 3ision Operations +IP G Move Transactions G Move Transactions (nter the Hob order @...6 and in Juantity column enter the !ompleted Juantity as -. and save the transaction$

&gain enter the same Hob Order @...6 and move the #alance Two *gs as e'ected item to view the accounting Impact on e'ected Transactions

"o back to Following ;avigation Path and /earch for Hob order @...6 ;avigation Path Manufacturing, 3ision Operations +IP G Discrete G Discrete Hobs Kou will find the Hob status as !omplete and !ompleted Juantities as -.$ The remaining balance 2 *gs e'ect is eworkable and the Hob is still in released status and the 'ob is not yet closed$

"o back to Following ;avigation Path and /earch for Hob order @...6 ;avigation Path Manufacturing, 3ision Operations +IP G Discrete G +IP 3alue /ummary

First we will complete the other two Orders also and /et one of the Hob order to /crap and /ee how the /crap &ccounting Takes places ;avigation Path Manufacturing, 3ision Operations +IP G Move Transactions G Move Transactions For Hob Order @...2 we make 1kgs as completed and #alance 2 kgs, we will make it as /crap and view the accounting Impact

#alance Two *gs of !aramilk moved to scrap as follows

Hob ;umber @...? for )actoking ;avigation Path Manufacturing, 3ision Operations +IP G Move Transactions G Move Transactions

;e%t we need to close the Hob Orders for the 3ariances to get relieved

;avigation Path Manufacturing, 3ision Operations Discrete G !lose Discrete 'obsG Discrete Hobs Forms (nter Hob order ranges @...2 and @...?

/tatus changed to closed

)et us view the +IP 3aluation /ummary for the /crap and e'ection &ccounting variances ;avigation Path Manufacturing, 3ision Operations +IP G Discrete G +IP 3alue /ummary

Hob Order @...2 +here as /crap &ccount accounting Distributions

Hob Order ;umber @...6 +IP 3alue /ummary showing cost of -... </D for the e'ected goods not yet reprocessed

Hob Order @...? for the )actoking which is completed in full

.( Create Sa#es Or!er5 Book t e Or!er5 re#ease an! S ip confir$ t e Goo!s /ales Made during the Month is 1 *gs of caramilk and, -. *gs of !offee #ite and ? *gs of )acto *ing I$portant <ote: Order management does not generate any accounting entries and when we do ship confirm "oods Inventory Module "enerates the &ccounting entries ;avigation Path Order management /uper user, 3ision Operations Orders, eturns G /ales Orders

;avigation Path Order management /uper user, 3ision Operations Orders, eturns G /ales Orders #ook the /ales Order number 56700

;e%t step is to

elease the sales Order 1>8..

;avigation Path Order management /uper user, 3ision Operations /hipping G elease /ales Orders G elease /ales Orders

;avigation Path Order management /uper user, 3ision Operations /hipping G Transactions Juery sales Order 1>8.. /hip confirm the "oods

Order )ine status changed to /hipped

)et us check the !ost of "oods /old (ntries created for this Transaction$ 3iew the Juantity details in Inventory Module under Material Transactions Form ;avigation Path Inventory, 3ision Operations !hoose Inventory Org MMaterial distributions (nter /ource Type as sales Order and Order ;umber as 1>8..

un the +F #ackground Process to generate Invoice in eceivables ;avigation Path Order Management /uper <ser 43ision Operations5 3iew G e0uestsG /ingle e0uest +F #ackground Process

)og on to eceivables and run the &uto invoice Process to generate Invoice for the same eceivables, 3ision Operations Transactions G Transactions Juery in eference column with /O number 1>8..

)et us view the Distribution (ntries

:( Pay$ent receive! fro$ Custo$ers on#y for Coffeebite )og on to eceivables 3ision Operations eceipts G eceipts

!lick on &pply button and choose Invoice ;umber -..2.>89 and apply to line number 6

"o #ack to Aeader to view the &ccounting (ntries

;( Out of t e Ite$s so#! * kg of Cara$i#k &as spoi#e! for & ic t e Custo$er as sent back t e $ateria# )og on to Order Management /uper user, 3ision Operations Orders G eturns /ales orders !reate a /ales Order with ;egative Juantity of - for Item caramilk

#ook the Order

;ow we need to eceive Inventory as it is an M& 4 eturn Material &uthoriIation order5

)og on to Purchasing, 3ision Operations eceivingG eceipts !hoose Inventory Org M- /eattle Manufacturing "o to !ustomer Tab and (nter M& number 1>8.-

!lick on Find #utton

eceipt @>-- created$

)og on to Inventory Module to 3iew the &ccounting (ntry

;avigation Path Inventory, 3ision Operations Transactions G eceiving G Material Transactions Juery for Item !aramilk in /ub inventory F" /tores !lick on Distributions

*-( One Kg of /actoking &as spoi#e! in %ransit for & ic Custo$er nee! to be issue! a Cre!it note as Materia# non+returnab#e )og on to eceivables 3ision Operations Transactions G Transactions

!omplete the Transaction

**( "uring t e $ont t e co$pany pai! fo##o&ing e'penses 3*4 Packing Materia# 8*-- Pai! by Cas 3,4 0!vertise$ent 8 ,2- Pai! by Bank to Org Marg Co$pany For Transaction 4i5 !reate a /upplier with the ;ame Petty cash and !reate a #ank &ccount also with the ;ame petty cash and in cash &ccount attach the Petty !ash &ccount ;avigation PathF Payables, 3ision Operations Invoices G (ntry G Invoices

!lick on &ction and !heck the check bo% Pay in Full

+e need to create a #ank /tatement and !lear this Payment against /tatement to !lear the Transaction ;avigation PathF !ash Management, 3ision Operations #ank /tatements G Manual clearing G !lear transactions

On the basis of same steps as above, we need to do the second step of making Payment to Org Marg !ompany$ The Difference between the two is to show Aow a Petty !ash Payment can be handled in &ccounts Payables$ The cash eceipt of Petty cash can be seen in ;e%t step ;avigation PathF Payables, 3ision Operations Invoices G (ntry G Invoices

*,( Co$pany &it !re& *--- US" for Office use This is a Petty !ash withdrawal which can be handled through Prepayment Invoice ;avigation PathF Payables, 3ision Operations Invoices G (ntry G Invoices !reate a Prepayment Invoice for -... </D for Petty cash /upplier and make Payment$

*)( Interest Inco$e receive! for t e $ont is *-- US" ;avigation PathF 3ision Operations, eceivables eceipts G eceipts !reate a Miscellaneous eceipt for -.. </D for Interest Income$

*=( Bank c arges for t e $ont is 2 US" ;avigation PathF eceivables, 3ision operations eceipts G eceipts !reate a Miscellaneous eceipt with the ;egative amount of 1 </D$ Then system treats the Transaction as payment to #ank$ Only for the Type of Miscellaneous eceipt system will allow you to create ;egative (ntry$ This is another way you can use Petty cash functionality using Miscellaneous eceipts$

*2( Provision for %a' to be $a!e 2-- US" ;avigation PathF "eneral )edger, 3ision Operations Hournals G (nter

*>( 9$p#oyees %rave# 9'penses Provision to be $a!e )-- US" ;avigation PathF Payables, 3ision Operations Invoices G (ntry G (%pense eports (nter (mployee (%pense for 6.. </D

Import the (%pense eport as an Invoice through !oncurrent Program

3iew the !oncurrent e0uest output

!heck the Invoice, 3alidate and &ccount for the /ame

*.( Sub /e!ger 9ntries %ransfer to Genera# /e!ger +e have e%ecuted all the Transactions$ ;ow we have to transfer all the /ub ledger Module entries to "eneral )edger Modules to be transferred a$ Purc asing = It is transferred through a Profile set up called !3F Processing ModeF If it is set to Online, it is pushed immediately to ") Interface and we 'ust need to import from ") Interface to ") Hournals

Import the Transactions to ") ;avigation PathF "eneral )edger, 3ision Operations Hournals G Import G un !hoose the /ource as Purchasing

3iew the !oncurrent re0uest Output

3iew the Hournals in "eneral )edger Module in <nposted /tatus

b$ Inventory: Transfer from Inventory Module un the !oncurrent Process Transfer Transaction to ")

Import the Hournals ;avigation PathF "eneral )edger, 3ision Operations Hournals G Import G un !hoose the /ource as Inventory

3iew the Hournals created in unposted status

c$

Manufacturing: = ;o &ccounting (ntries are generated in this case from Manufacturing Module in this case

d$ Or!er Manage$ent: = ;o &ccounting entries are generated from Order management at any point of time$ The cost of "ood /old account is debited and Finished "oods (ntry is credited in Inventory Module when we do the /hip confirm of "oods in Order management$ The (ntries are created in Inventory Module and not in Order management Module$ e( 0ccounts Payab#es: ;avigation PathF Payables, 3ision Operations 3iew G e0uests G /imple e0uest !hoose Payables to "eneral )edger !oncurrent program

un the e0uest it will create unposted Hournal (ntries in ") as we have set the parameter /ubmit Hournal Import to Kes

3iew the concurrent

e0uest output

3iew the <nposted Hournals in ") for Purchase Invoices

3iew the Hournals created for Payments

3iew the Hournals created for econciliation (ntries

f(

0ccounts 6eceivab#es:

;avigation PathF eceivables, 3ision Operations Interfaces G "eneral )edger un "eneral )edger Transfer Program with the Parameters

This will create <nposted Hournals in ") as we set the Hournal Import to Kes

3iew the Hournals created in "eneral )edger for sales Invoices

3iew the Hournals created for eceipts

3iew the Hournals created for !redit Memos

3iew the Hournals created for Miscellaneous eceipts

g$ Cas Manage$ent: = ;o &ccounting entries are created in !ash Management$ The econciliation Payment and eceipt entries are created in Payables and eceivables Module +e have to Post these Hournals now to update the "eneral )edger balances )et us have a complete view of all unposted Hournals

*:( Posting in Genera# /e!ger +e need to post these Hournals to update ") #alances ;avigation PathF "eneral )edger, 3ision Operations 3iew e0uests G /ingle e0uest un the concurrent Program = &utomatic Posting and choose the Parameter Post all Hournals$

3iew the Posted Hournals ;avigation PathF "eneral )edger Hournals G (nter G Hournals Juery for Period ;ov7.8 and status as Posted

*;( 6unning of %ria# Ba#ance5 Profit an! /oss 0ccount an! Ba#ance S eet unning the Trial #alance ;avigation PathF "eneral )edger, 3ision Operations

un the Income and (%penditure &ccount and #alance /heet from F/" ;avigation PathF "eneral )edger, 3ision Operations eports G Financial

3iew the Output of the Income and (%penditure &ccount or Profit and )oss &ccount

3iew the output of the #alance /heet

Please review the attached eport Documents which clearly depicts the accounting transactions are created and their Impact in ") with the closing Trial #alance$ Conc#usion: The above Document will help you to clearly understand the importance of &ccounting and how it is being handled in Oracle &pplications$ I trust this will help the novice user to e%pert to understand the concept of &ccounting pretty well including Oracle Technical !onsultants NThere is a difference between an ob'ective and actions$ <nless you understand your ob'ective, you will be wasting your time in actions$ *now your ob'ective first N 7 /wami 3ivekananda Thank Kou