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Page 1 of 234

ORACLE FINANCIALS VOL - II

PRACTICE GUIDE

ORACLE FINANCIALS

J. Sureshraja M.com., MBA., CA (f).,

Page 2 of 234 ORACLE GENERAL LEDGER (11i) Order management

Accounts Receivable

GENERAL LEDGER

Fixed Assets Accounts Payable Inventory Purchase Order OM-AR-GL: Order to Cash Process PO-AP-GL: Procure to Pay Process Order Management, Purchase Order, Inventory = Distribution Modules General Ledger receives information from sub ledgers. (Cash Management-Reconciliation Purpose)

Flex Field: Its a field made up of sub-field or segment.

Type of Flex Field: Key Flex Field Descriptive Flex Field

Key Flex Field: It is an intelligent key code character made up of meaningful segments.(Identify an object)
Module Key Flex Field

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Page 3 of 234
AP AR FA No Key Flex Field Sales Tax Location Flex Field & Territory Flex Field Category Flex Field, Asset Key Flex Field & Location Flex Field Accounting Flex Field

GL

Descriptive Flex Field: To track any additional information this is important for business. For Example:
Order Form: Order No: Part No: Descriptive: XX COM-878-LTN Computer-Monitor-Light Color [ ]

Part No: (Key Flex Field)


Category: Item: Color: COM 878 LTN Computer Monitor Light Colour

Segments In GL,
Date Particulars : :

Values

Descriptive

Calendar(Accounting Calendar) Chart of Accounts(Organization Structure-Capture Info. Of Trans) Currency(Functional Currency &Foreign Currency)

Amount Setups>Financials>Calendar

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Page 4 of 234 Accounting Calendar- Setup+Financials+Calendars: Types: Monthly/Quarterly/Half-Yearly (Fiscal-Financial Year) 13 periods - Tracking Information from last year to current year. Purpose of 13th Month-31.12.11 to 31.12.11/31.03.11 date informations can be transfer to current year. On last date of year 31st march, we cannot pass all the entries and we can pass the entries during next working month. However we can give the effective date is 31st March for the same transaction Currency Setup>Currencies>Define: In Chart of Accounts, we have 4 major components. 1. Segment: Minimum 2 & Maximum 30 Flex Field Qualifiers: Identification tag for segments (5 Flex Field Qualifiers) Company Balancing Segment** Department- Cost Center Account-Natural Account** Inter Company-Inter Company Segments Tracking-Secondary Tracking Segment ** Mandatory

Setup>Financials>key> Segments Setup>Financials>key> Values Setup>Financials>key>Aliases Setup>Financials>key> Rules Value Set: Container for values and the related attributes for each segment of Flex Field List Type: Pop list-0 to 10 List of Values-11 to 200 Long List-200> Security: No Security Hierarchies-Apply to both parent and child Non-hierarchy-Not Apply to child and Apply to parent only ORACLE FINANCIALS

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Page 5 of 234 Value Validation: Independent (Default) Translatable: Restricted Pair & Special: Based on Request (Segment can have maximum size is 25 only & GL is an independent validation type) Dynamic Insert: It allows all new combinations of segment values, which we created. Rollup Groups: Grouping a parent value use for reporting purpose Segment Qualifiers: Identification tag for values

2.Values: Setting values for structure (KR COA- Karthik Chart of Accounts)
Periods Open Closed Permanently Closed Never Opened Future Journal Y X X X Y Posting Y X X X X (Pass Journal Entries & No Posting) (Pass Journal Entries & Posting) (No Journal Entries & Posting)

3.Rules: Cross Validation: Setup+Financials+Flexfield+Key+Rules Avoid illogical combinations. It controls the combination of segment values that you create when you enter the value in flex field window. Security Rule: Setup+Financials+Flexfield+Key+Security+Define Restrict the user to enter data at the responsibilities level.

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Page 6 of 234 Restrict data entry an online enquiry to specific values by using flex field security rule. System hides the values when user tries to enter segment value.

It limits the access of different segment values for different responsibilities. After freezing the segment values (set up), make it compile.(Finished) If we can give security rights to parent, we cannot access child codes. GL 4. Aliases: It makes the functions in shortest way like a single alphabet. It automatic picks up the entire code. Example: R- Rent Default Accounts in Set of Books: Retained Earnings Account Encumbrance Account : Difference between Revenue & Expenses transfer to Retained Earnings (Mandatory) Temporary block of funds Difference will be posted (Dr/Cr) Functional Currency to Foreign Currency (Exchange profit/Loss Transfer to this Account) Income Expenses Rounding the decimal points

: : :

Suspense Account Translatable Adjustment Account Net Income Account Rounding Difference Account

: :

Oracle General Ledger - Its basically used for Adjustments and Apportionment only against payables , receivables and fixed assets. Creation of Category: Setup+ Journal + Categories Category: KR Description: KARTHIK Group of Companies

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Page 7 of 234 Creation of Company: Setup + Financials +Flex Fields+ Key+ Values
Application Title Structure Segment : : : : ORACLE GENERAL LEDGER Accounting Flex Field Operating Accounting Flex Company

New Company: Value: 33 Translated value: 33 Description: KR Group of Companies Child Value: 51 to 52 & changed that parent company in testing database We can move these child values to some other companies. Segment Qualifiers for Created Company: Allow Budgeting Yes & Allow Posting Yes We cannot enter a journal for parent company if child value defined. After creation of category and company, we can create a journal entry. Entering Journal:
Journal: KRJE1 Category: KR Account: 33-000-7110-0000-000 = US$100,000 (Dr.) 33-000-2210-0000-000 = US$100,000 (Cr.) 7110 Advertising 2210 - Accounts

Payable

After entering the datas. Click Check Funds Reserve Funds Status Select for Posting F11 Re-query Paste the journal name and click Control F11 Post it Post it and view journal from Tools- Accounting (T- Accounts)

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Page 8 of 234 Reversal of Journal: Review the Journal and select the month (Current Period/Entered Period) Click Reverse Status: Processing Re query it and paste the journal number Status: Reversed GL Accounting Cycle: Consolidation Balances Review Report Close Period

Open Period Translation Enter/Import Journal

Revaluation

Review Posted Journal

Security Rule: Setup>Financials>Flex Field> key > Security> Define Setup>Financials>Flex Field> key > Security> Assign DEFINE: For defining security rule, we have to enable the security rule in segment. Setup+ Financials+ Flex Fields +Key + Segments F11 Control F11 (Oracle General Ledger Accounting Flex Field) Select Operating Flex Field Click Segments Select Department Open Name: Department Enable: Security Now, we can define the security rules.
Application Title ORACLE GENERAL LEDGER Accounting Flex Field

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Page 9 of 234
Structure Segment Operating Accounting Flex Field Department (For Defining Security Rules, Select Department only)

Assigning security rules to department wise: Name: (We can give name in security rules) Department Security- Department is restricted to 110 through 130 Single Department- Department is restricted to only department 110 Elements: (Department Security)
Include: 000 to ZZZ (IncluKRg all the department s) Exclude: 000 to 109 (In that included, we have excluded 000 to 109 departments) Exclude: 131 to ZZZ (And, exclude 111 to ZZZ. Therefore, we have included 110 to 130 only) Elements: (Single Department) Include: 000 to ZZZ (IncluKRg all the department s) Exclude: 000 to 109 (In that included, we have excluded 000 to 109 departments) Exclude: 111 to ZZZ (And, exclude 111 to ZZZ. Therefore, we have included 110 only)

ASSIGN: Setup> Financial> Flex Fields> key> Security> Assign


Application Title Structure Segment : : : : ORACLE GENERAL LEDGER Accounting Flex Field Operating Accounting Flex Department (Defined Security Rules to be Assigned)

Find F11- Control F11 Select: Title- Accounting Flex Field & Operations Accounting Flex Select: Structure- Operations Accounting Flex Here, applications automatically generated and we have to fix the responsibility and defined name to that responsibility Save it. ORACLE FINANCIALS

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Page 10 of 234 Therefore, the General Ledger Super User (Department) restricted to use the 100 through 130 Therefore, the General Ledger User (Single) restricted to use the 110 only This is the security assigning procedure. Cross Validation: Setup>Financial>Flex field>Key>Segments Just making to avoid illogical combinations as per accounting system. (To avoid illogical combinations) In Segment, Control F11- Application: Oracle General Ledger Flex field title: Accounting Flex Field

Check whether Cross validate Segment check box enable or not Make it Enable. GL Setup+Financial+Flexfield+key+Rules In Structure- F11- Type Op%-Control F11 Captured: GL- Acc FF Operations Accounting Flex- Vision Operations Accounting Flex Field In Cross Validation Rules, define the cross validation rule. (FF Segment- For example 3 entities) Account Company Legal

For each segment, we can assign the cross validation rules. Account: (Create) & Error Segment: Account Error Message: Account balance Sheet (Assets, Liabilities & O/E) must be used with department 000 (Balance Sheet) This is an error message display when we enter illogical combinations as we defined. Elements:
Type Include Exclude Exclude Exclude From 00-000-0000-0000-000 00-00-1000-0000-000 00-001-1700-0000-000 00-601-1000-0000-000 To zz-zzz-zzzz-zzzz-zzz zz-599-1699-zzzz-zzz zz-599-3999-zzzz-zzz zz-zzz-1699-zzzz-zzz

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Page 11 of 234
Exclude 00-601-1700-0000-000 zz-zzz-3999-zzzz-zzz

Company-Department-Account-Sub Account-Product Here, first we have included everything (zzz), and then we have excluded certain accounts from this department to this department as defined. (Making end user avoid entering unnecessary departments and accounts due typical error and allow him to enter the accounts with some restrictions) Company: (Create) & Error Segment: Account Error Message: Company- Department 730 can only be used with Company 01 This is an error message display when we enter illogical combinations as we defined Elements:
Type Include Exclude From 00-000-0000-0000-000 02-730-0000-0000-000 To zz-zzz-zzzz-zzzz-zzz 02-730-zzzz-zzzz-zzz

Company Department Account Sub Account Product Here, first we have included everything (zzz), and then we have excluded department 730 from Company 01. It means, this 730 department can only be used with company 01. (Making end user should not enter this 730 department in company 02 and allow him to enter 730 departments with company 01 only) Legal: (Create) & Error Segment: Account Error Message: Legal: You cannot select Revenue accounts (4000-4999) with this department. This is an error message display when we enter illogical combinations as we defined Elements:
Type Include Exclude From 00-000-0000-0000-000 02-730-4000-0000-000 To zz-zzz-zzzz-zzzz-zzz 02-730-4999-zzzz-zzz

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Page 12 of 234 Company Department Account Sub Account Product Here, first we have included everything (zzz), and then we have excluded department 730 should not have Revenue accounts (4000-4999).It means; we cannot select Revenue accounts while selecting department 730. (Making end user should not use the Revenue accounts while for the department 730) Aliases: Setup>Financial>Flex field>Key>Aliases

In Structure-F11-Type Op%-Control F11 Captured: GL- Acc FF- Operations Accounting Flex Vision Operations Accounting Flex Field Enable the Short Hand Check box and size of alias size. In Aliases Descriptions,
Alias Secretarial Template 01-740-7615-0000-000 Description Secretarial Services

When we enter a journal, in account line we can select () Accounting Aliases.In that, we should type secretarial. It automatically selects secretarial services and entire template. Foreign Currency Journal: Setup>Currencies>Rate>Types Define your Conversion Rate Type- EUR Rate (For selecting purpose) Setup>Currencies>Rate>Daily Define your conversions accorKRg to USD to EUR USD to EUR: 0.8 (When we enter 0.8, it automatically generate 1.25 (USD/EUR-1/0.08) EUR=1.25 USD Now, USD=1 (Functional) Therefore, EUR=1/0.8 = 1.25 USD (Here 1 is USD & 1*0.08 = 1.25 USD) Enter a Journal (Functional Currency- USD) Journal KRJE08 Currency USD ORACLE FINANCIALS

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Page 13 of 234

Account 01-740-7615-00-0 01-110-9999-0000-000

Dr. 10000

Cr.

10000

When we enter journal in functional currency US$, 10000 is debited. When we change the currency USD o EUR, the USD 10000*1.25 =USD 12500 will be debited from our account. (1.25 is defined for EUR) Suspense Account: Setup>Financials>Books>Define F11 Set of Books - Vision Operations% It selects vision operations (USA)-Operations Accounting Flex In Journal, check whether suspense account check box is enabled or not- Make it enable 01-0002990-0000-000 (2990= Suspense Account) For our information 01-000-7826-0000-000 (782=Rounding) Now, we can enter journal with short balances Dr-15000 Cr-10000 When it makes post, it automatically makes suspense account of Rs.5000/- for balance of that transaction) Debit Memo: Purchase materials-100,000/Entry: (Journal) Purchase Amount Dr.100, 000 To Supplier Account Cr.100, 000 After this transaction, we found that Rs.10, 000/- is reject material. ORACLE FINANCIALS

J. Sureshraja M.com., MBA., CA (f).,

Page 14 of 234 Therefore, we should issue Debit Memo for Rs.10, 000/Now, Payment entry: Supplier Account Dr-100, 000 To Cash Account Cr - 90, 000 To Purchase Returns Cr 10, 000 Tax Journal: For learning purpose, we are using Vision Operations Set of Books In real time implementation, Set of books set by system administrator Setup>Financials>Books>Define In GL Set of Books-F11-Vision Operations%-Control F11-Vision Operations (USA) Journaling, check whether Journal Entry Tax is enabled or not Make it enable Setup>Tax>Tax Options In Account level, enter the particular account of tax required and enables Amount includes tax In Tax Options: In Set of Books Level: Tax Code: As Required Enable Amount includes Tax In Account Level:
Enter Enter Enter : : : Tax Account (1340-Prepaid Expenses) Tax Type (Input-If Payable Tax/Output-If Receivable Tax) Tax Code (As Required)

Enable amount includes Tax. Save it. Then, Input tax Codes

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Page 15 of 234
Define Enter Rate GL Account VAT Type : : : : : Tax Code Tax Type 8% (Define as required) Define the 33-000-1340-0000-000 As Required

Save it. Create a new journal for tax calculation. Journal: KRTAXJE Category: KR Tax: Required /Not Required In Line,
33-000-1340-0000-000 33-000-2210-0000-000 Rs.50000 (Dr.) Rs.50000 (Cr)

Check Funds-Reserve Funds-Tax Journal It automatically calculates tax as defined. Statistical Journal: (For Formula Based Recurring Journal) Statistical account starts with 9 For Number of share folder and Number of employees For Example, Expense-Rent Amount- Rs.100, 000/This rent amount should allocate to various department of particular company. Therefore, we have to define statistical journal along with the ratios for distributing this rent amount to such departments. The rent paid before allocation in payables itself. However, we can distribute the paid rent to various departments as defined in statistical journal. In Journal, create a new journal (Currency STAT) ORACLE FINANCIALS

J. Sureshraja M.com., MBA., CA (f).,

Page 16 of 234 In Line,


33-110-9210-0000-000 33-120-9210-0000-000 33-130-9210-0000-000 No Offset Entry Rs.10000 Rs.20000 Rs.30000

Check-Funds-Reserve Funds-Post it. Therefore, we have defined statistical journal is 1:2:3 General statistical formula: A*B/C A- Expensed Amount B- One Line Ratio C- Summation of Ratio Thats all Based on statistical journal, we are going to define Recurring Journal Recurring Journal: Types of Recurring Journal:
Types Standard Skeleton Formula Dollar Amount Applicable No Formula Only Issue bonus Account Applicable Applicable

Standard: Set fixed account combinations and amounts Skeleton: These journals have varying amounts in each accounting period. We can define a journal entry without amounts and enter appropriate amounts in each accounting period.

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Page 17 of 234 Formula: A formula entry is a recurring entry that uses formula instead of amounts. Dollar: To track out monetary balances Steps for creating Recurring Journal: Create recurring journal definition Generate Recurring Journals Review Entries Post

1. Standard: (Set fixed account combinations and amounts) Journal>Define>Recurring Batch: KR Rent Batch (Create) Journal: Rent Recurring Journal (Create) Category: KR (Attach) Currency: USD In Lines,
10 20 30 Credit Entry: 33-110-7420-0000-000 33-120-7420-0000-000 33-130-7420-0000-000 33-000-2210-0000-000 Rs.30000/- (Step-Enter-Rs.30000-Save it) Rs.30000/- (Step-Enter-Rs.30000-Save it) Rs.30000/- (Step-Enter-Rs.30000-Save it) Rs.0.00/-

Rent- 7420

Save it Generate and attach your period- Submit-View-Find &request Status-Completed Go to Journal Source: Recurring (Attach) Category: KR (Attach) Find Recurring Journal summary will be displayed. ORACLE FINANCIALS

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Page 18 of 234 Created KR Rent Batch automatically generated Recurring Journal based on inputs given in Journal>Define>Recurring Review the recurring journal and post it. Therefore, the paid amounts (7420-Rent) distributed to 3 departments from the offset entry (Line 9999-000 Department amount distributed to 110,120,130) This is standard recurring journal. 2. Skeleton: These journals have varying amounts in each accounting period. Therefore, we can define a journal entry without amounts and enter appropriate amounts in each accounting period. Journal>Define>Recurring Batch: KR SKELETON RENT (Create) Journal: Skeleton Recurring Journal (Create) Category: KR (Attach) Currency: USD In Lines,
10 20 30 33-110-7420-0000-000 33-120-7420-0000-000 33-130-7420-0000-000 No Amount (Save it) No Amount (Save it) No Amount (Save it)

Rent-7420

Credit Entry: 40

33-000-2210-0000-000

No Amount (Save it)

Generate and attach your period-Submit-View-Find Request-Status-Completed Go to JournalSource: Recurring (Attach) Category: KR (Attach) Find- Recurring Journal summary will be displayed. ORACLE FINANCIALS

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Page 19 of 234 Created KR Rent Batch automatically generated Recurring Journal based on inputs given in Journal>Define Recurring Review the recurring skeleton journal and Enter the amounts when and where required Post it. (If period is opened as defined in GL, it can be posted) Else, Query the batch and review the same Change period (Open Period) Ok-Save it- Post the Journal-Re query it- Status posted Therefore, as per our requirement, we have entered the paid rent amount in various departments in recurring journal window. It will be distributed at the time of posted This is Skeleton Recurring Journal. 3. Formula: A formula entry is a recurring entry that uses formula instead of amounts. In this Formula Recurring Journal, we must use the Created Statistical Journal Journal>Define>Recurring Batch: KR FORMULA RENT (Create) Journal: Skeleton recurring Journal (Create) Category: KR (Attach) Currency: USD In Lines,
10 33-110-7420-0000-000 (STAT)

Rent-7420

Step 1-Enter-No Amount- 33-110-9210-0000-000-YTD-STAT (Currency) Step 220 X -20 (Amount for Multiplication with Statistical) (STAT)

33-120-7420-0000-000

Step 1-Enter-No Amount- 33-120-9210-0000-000-YTD-STAT (Currency) Step 2Credit Entry: 9999 +-50000 (Amount for Addition with Statistical) No Amount (Save it)

33-000-2210-0000-000

Save it Generate and attach your period Submit View Find Request Status- Completed ORACLE FINANCIALS

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Page 20 of 234

Go to journalSource: Recurring (Attach) Category: KR (Attach) Find Recurring Formula Journal summary will be displayed. Created KR Rent Batch automatically generated Formula Recurring Journal formulated based on inputs given in statistical journal Journal Output is
33-110-7420-0000-000 33-120-7420-0000-000 33-00-2210-00-0 200,000 (Formula 20x Rs.10000 Statistical) 70000 (Formula 50000+ Rs.20000 Statistical) 270000 (Offset entry created)

Post it. (If period is opened as defined in GL, it can be posted) Else, Query the batch and review the same Change period (Open period) Ok- Save it- Post the Journal- Re query it- Status posted Therefore, as per our requirement, the formula recurring journal posted based on statistical journal. This is Formula Recurring Journal.

4. Dollar: To track our monetary balances. Steps for Dollar Recurring Journal
1. First Pass a journal for Rent Account 2. Inquiry/Account-Check the entry 3. Define Dollar Recurring Journal-Define the dollar recurring lines with formula 4. Generate dollar journal-Source &Find-Review the passed Journal

Pass the regular journal entry (KR DOLLAR JE) for Commission payable or rent distribution. Then, Journal>Define>Recurring Batch: KR DOLLAR RECURRING (Create) ORACLE FINANCIALS

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Page 21 of 234 Journal: Dollar Recurring Journal (Create) Category: KR (Attach) Currency: USD
10 33-110-7420-0000-000 Step 1- Enter No Amount 33-110-74200000-000 Step 1X - 0.11 (Rate for Multiplication) (Rent) Actual PTD-USD

Rent-7420

For creating offset entry, 9999 33-000-2210-0000-000 Thats all and Save it

If we dont want offset entry, just Save it Generate and attach your period-Submit-View-Find Request-Status-Completed Go to JournalSource: Recurring (Attach) Category: KR (Attach) Find- In Summary KR DOLLAR JE will be displayed. Created KR Dollar Journal generate the dollar journal- Track monetary balances (We cannot pass journal entry for parent company. Because, child values only created as department) Mass Allocation: (Allocate particular expenses to various department) A single journal entry formula that allocates revenues and expenses across a group of cost centers, departments, divisions and so on. [A*B/C] A-Cost Pool Account B-Ratios (1:2:3-Statistical 9210) C-Summation of Ratios (1+2+3=6)
Steps:

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Page 22 of 234
1. Create Mass Allocation Definition o o o Enter batch Information Create Mass Allocation Formula Enter Mass Allocation Formula

2. Generate Journals 3. Review Journals 4. Post the Journals Before that, Create a Statistical Journal(Currency-STAT) In Line, 33-110-9210-0000-000 33-120-9210-0000-000 33-130-9210-0000-000 No Offset Entry Rs.10000 Rs.20000 Rs.30000

Check Funds-Reserve Funds-Post It. Therefore, we have defined statistical journal is 1:2:3 1. Pass expense journal (Advertisement Account-7110)
33-000-7110-0000-000 (Dr) 33-000-2210-0000-000 (Cr) Rs.90000 Rs.90000

These expenses accounted in 000 No department (Parent) Department) in extend, allocate to sub-divisions 2. Mass Allocation Journal>Define >Allocation Name: KR MASS ALLOCATION (Create) Balance Type: Actual Status: Not Validated (Automatic) ORACLE FINANCIALS

and will allocate to 100 (Resources

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Page 23 of 234 Click- Formulas & Define Formulas [C- Constant L- Looping S-Summation] Full Balance It can select any currency and allocate Single Entered Currency Particular Functional Currency/Required Currency (Enable &USD) Full Cost Pool Allocation Enable: Decimals also will be taken care -Not Enable: Decimals will be rounded off and take rounded amount. A: Cost Pool-Created Expense Journal- Allocating to 100 (Resources Department)- Constant
33-000-7110-0000-000 CCCC -C USD-PTD-Current Period

B:Ratio-Created Statistical Journal- Department Looping to Stat ratios (100)- Looping


33-100-9210-0000-000 CLCC -C STAT-YTD-Current Period

C: Summation- Summing Statistical Journal to 100 (Resources Department)- Summation


33-100-9210-0000-000 CSCC -C STAT-YTD-Current Period

T: Target- Looping Expense Journal From 100 (Resources Department)- Looping 33-100-7110-0000-000 CLCC -C USD-PTD-Current Period

O: Offset- Knock off Created Expense Journal Dr Cr from 100 Expense Journal - Constant
33-100-7110-0000-000 CCCC -C USD-PTD-Current Period (As like Cost Pooling Account Line)

(Be sure to also follow the account segment cross validation rules. Because, the mass allocation validation program does not check across validation Rule. If cross validation rules are not matched with mass allocation, it creates invalid journals) Click Validate- Validate the entered Formula - Requery F11-Control F11-Status-Validated Generate it-Attach Period-Submit-View Request-Status-Completed ORACLE FINANCIALS

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Page 24 of 234 Go to Journal: Source- Mass Allocation Category- KR Find- The defined formula allocating the cost pooling expenses to statistical department values as formulated This is the mass allocation procedure. Inter Company: In set of book, check whether Balance Inter Company Journals check box enable or not (Enable) Setup>Accounts>Intercompany In this there are 2 options 1. Clearing Company Usage

Always use Clearing company

Many to Many Intercompany Transactions only

Always use Clearing Company- While transferring any asset between inter-companies, the asset payment will be routed some other particular company (Payment company will be varied) Many to Many Inter Company- While transferring any asset between inter-companies, the asset payment will be routed from the same intercompany (Payment Company will be anyone intercompany) 2. Default Options (Action: If no clearing company specified)

Error Out

Use Default Clearing Company Balancing Account

Use Default

Use Default Clearing Company- If it is enable, we have to define default payment clearing company for all the intercompany transactions. Use Default Balancing Account If it is enable, it will use default balancing account and it will not consider Always use clearing company & use default clearing company.

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Page 25 of 234 Many to Many Inter Company Transactions only allowed using default-balancing account Prerequisites:
1. Define your set of books. 2. Enable Balance Interfund Journal in the Set of Books window. 3. Define your journal entry sources. 4. Define your journal entry categories. 5. (Optional) Define your interfund segment

Source: Manual (Attach as required) Category: KR (Attach) Clearing: Many to Many Default: Error Out

(1st we should define Many to Many and error out)


Company 01 02 03 KR All Other Due from Account 01-000-1811-0000-000 02-000-1812-0000-000 03-000-1813-0000-000 33-000-1814-0000-000 33-000-1815-0000-000 Due to Account 01-000-2371-0000-000 (For Transfer) 02-000-2372-0000-000 (For Transfer) 03-000-2373-0000-000 (For Transfer) 01-000-2374-0000-000 (Payment Route) 33-000-2375-0000-000 (All other companies routed their payment through this company)

(2nd After defining accounts, now you can choose always use-clearing company-KR) (Therefore,KR is routed company for all Intercompany transactions) If we define Always Use Clearing Company, the clearing company will be defined in that check box and all the intercompany transactions payment will be routed through clearing company only. Now, we can create a journal for intercompany transactions. Journal: KR ICJE01 Category: Inter Company Transfer Source: Inter Company
02-000-1560-0000-000 Rs.10000/- (Receiver of Asset)

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Page 26 of 234
01-000-1560-0000-000 Rs.10000/- (Supplier of Asset)

Check Funds-Reserve Funds-Post Requery it-It will automatically generate journal and make payment through KR It will generate journal as follows.
Account 3. 2. 4. 1. Payable Receivable Receivable Payable KR-000-2371 KR-000-1812 01-000-1814 02-000-2374 10000 10000 10000 Dr. Cr. 10000

Now,02 got an asset and 01 payable to KR and KR Receive the funds from 02 and pay to 01 This is the process when we are defining inter company transactions. If the asset transfer is balance,it will be accepted. If we change these options,it depends on company divisions and selects only one. If the Error and Many to Many transactions is enable,the error message will be displayed while passing the entry. This is what inter-company procedure and transactions.

BUDGET: Budget is estimated account balances for a specified range of periods then compare estimated amounts with actual balances to determine variances. Budget consists of periods, accounts and amounts In oracle general ledger, create a budget by designating amounts to be a combination of accounted period. (If expensed amount is less than the budget Favor)

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Page 27 of 234 (If expensed amount is more than the budget Adverse) Budget Accounting Cycle: Define budgets and organizations Enter budget amounts Review and correct budgets Freeze budgets Report on budgets

Types of Budget: 1. Non-Funding Budget 2. Funding Budget Request Budgetary Control (We can enable this budget define itself and we should not enable this in set of books) Open- Can make corrections (After create a budget, its in current status, Then freeze it) Frozen- Cannot make corrections 1. Non-Funding Budget- Just plan the budget and does not meet the expenses and spend money (Long term oriented) 2. Planning the budget and match with actual expenses. (Immediate purpose)

1.Non-Funding Budget: 1.Define the Budget: Budget>Define>Budget Name: KR BUDGET NF Status: Open (Should not enable the Require Budget Journals) Budget Periods: Jan-00 Click Open Next Year View-Request Find-Status: Completed to Mar-00

2.Budget Organization: Budget>Define>Organization ORACLE FINANCIALS

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Page 28 of 234 Name: KR BUDGET ORGAN NF Display: 2-1-3-4-5 We can set passwords securities Click Ranges Line 1 Low 33-110-7110-0000000 Advertising High 33-130-7110-0000000 Advertising Type Entered Currency USD

After making ranges, dont save it and then, Click Range Assignments: (Just assign only one department) Account: 33-110-7110-0000-000 (Low Account only defined here)

After making range assignments, save it Concurrent request process Status Completed 3. Budget Amounts: Budget>Enter>Amounts Budget Organ: KR BUDGET ORGAN NF (Attach) Budget: KR BUDGET NF (Attach) Accounts Periods: Jan-00 Mar-00

Worksheet Mode-For more accounts Single row mode- For only one account In Worksheet mode- Account 33-110-7110-0000-000 It will automatically generate defined budget periods without amounts. Click-Budget Rules
1. Divide Evenly-The defined amount will be diviKRg evenly for defining periods 2. Repeat per period- It will repeat the same amount for particular defined period

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Page 29 of 234
3. 4/4/5 Totally 52 weeks in a year; 4=1st Month=4 weeks 4=2nd Month=4 weeks 5=3rd Month=5 weeks Total=13 weeks x 4 Quarters =52 Weeks Select Divide Evenly Amount 90000 Apply & Ok The defined amount will be divided evenly. Click-Budget Posting-View-Request-Find-Status-Completed

Check funds available or not with the help of Inquiry>Funds (Checking funds for one period and one account) Attach your budget-KR BUDGET NF Account- Enter defined account 33-110-7110-0000-000 It will display Rs.30000 as budgeted for one particular month (Jan 2000 only) Check balances and variances with the help of Inquiry >Account: (Checking funds for all periods and for many account) (We can post lot of journals at one period time) Attach period (Jan 00 to Mar 00) Select Budget & Attach your budget (KR BUDGET NF) and Enter budget account 33-110-7110-0000-000 It will display show balances, show journal details and show variances for Jan 00 to Mar 00. 2. Funding Budget: 1. Define the Budget: Budget>Define>Budget Name: KR BUDGET FUND Status: Open (Require Budget Journals Enable) ORACLE FINANCIALS

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Page 30 of 234 Funding budget requires Funds Check Level. (Requires Control) Control None/Advisory/Absolute Budget Periods: Jan-00 Click Open Next Year View-Request Find-Status: Completed 2. Budget Organization: Budget>Define>Organization Name: KR BUDGET ORGAN FUND Display: 3-2-1-4-5 We can set password securities Click Ranges Line Low 1 33-110-7120-0000000 Public Relation High 33-130-7120-0000000 Public Relation Type Entered Currency USD to Mar-00

After making ranges, dont save it and then, Click Range Assignments: (Just assign only one department) Account: 33-120-7110-0000-000 (Low Account only defined here) After making range assignments, save it Concurrent request process-Status Completed 3. Budget Amounts: (In Journals) Budget>Enter >Journals Budget Organ: KR BUDGET ORGAN FUND (Attach) Budget: KR BUDGET FUND (Attach) Accounts Period: Jan 00 ORACLE FINANCIALS Mar 00

J. Sureshraja M.com., MBA., CA (f).,

Page 31 of 234 Worksheet Mode For more accounts Single row mode- For only one account In Worksheet mode - Account-Click (Control F11) 7120-120-33-0000-000 It will automatically generate defined budget periods without amounts. Click Budget Rules Select Divide Evenly Amount 90000 Apply & Ok The defined amount will be divided evenly. Click Create Journals Journal batch: KR BUDGET FUND JOURNAL BATCH (Create) Category: KR (Attach) Click Run Journal Import Concurrent Request Generated Click Done. View Find Status Completed View Output Copy the Created Batch Go to Journal Journal>Post In Find Journal batches paste the copied batch with % Find Post Journals Summary will be displayed Enable all the budget periods and Post it. Concurrent request generated Go to Journal Journal>Enter Select your Funding budget batch and find Status Posted This is the process of Funding and non Funding budgets. *** In Budget Funds Check Level Funding budget requires Funds Check Level. (Requires Control) Control None/Advisory/Absolute None We have seen the above process. ORACLE FINANCIALS

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Page 32 of 234 Advisory Budget is created and reserve funds for Rs.90000/- for meet an expense. If Budgetary Control Group is Advisory, we can meet that expense with advisory message if the actual amount exceeds. Absolute Budget is created and reserve funds for Rs.90000/- for meet an expense. If Budgetary Control Group is Absolute, we can meet that expense with Absolute message if the actual amount should be exact budgeted. Period type: Entered: For Funding and Non Funding budgets Calculated: For Mass Budget and Formula Budget Boundary: If boundary is period type, we can use that fund for that period only (PTD) If boundary is quarter type, we can use fund from period to quarter level (QTD) If boundary is YTD type, we can use fund from period to year level (YTD), etc.
Quarter to Date Year to Date Project to Date

Period to Date PTD Ok (If Bound is period) QTD Ok (If Bound is Qtr) YTD Ok (If Bound is YTD) PJTD Ok (If Bound is PJTD) Ok (If Bound is Qtr) Ok (If Bound is YTD) Ok (If Bound is PJTD) Ok (If Bound is YTD) Ok (If Bound is PJTD) Ok (If Bound is PJTD) No No No No No No

Budgetary Control Group (Funding budget requires Funds Check Level Requires Control Budget>Define>Controls Find Standard ORACLE FINANCIALS

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Page 33 of 234 Category Other (Select) Funds Check Level None/Advisory/Absolute Control None/Advisory/Absolute Advisory Budget is created and reserve funds for Rs.90000/- for meet an expense. If Budgetary Control Group is Advisory, we can meet that expense with advisory message if the actual amount exceeds. (In Journal, we can enter a journal for excess amount with an advisory message) Absolute Budget is created and reserve funds for Rs.90000/- for meet an expense. If Budgetary Control Group is Absolute, we can meet that expense budgeted amount only. We cannot make payment for excess amount than budgeted amount. Budgeted control room form allows you to define rules controlling how strongly a budget controls spenKRg. For each combination of journal source and category, you can define whether expenditure beyond a budget or accepted without command accepted with an advisory or rejected. When you submit funds check or find reservation request, GL searches for the budgetary control rule and match the source and category of your journal entry. If no matches from, GL substitutes your source and category. Advisory/Absolute: (For Funding Budget Only) If we want to make Advisory / Absolute funds check level, we have to follow the following steps. 1. 2. 3. 4. Create a new budgetary control group (KR Budgetary Control Group) Change the funds check level to Advisory/Absolute Create new Funding budget organization for advisory/absolute function Create Ranges and Enter the amount in Budget>Journals, budget rules and regular process up to posting. 5. After posting the budgeted journal (Advisory/Absolute), we can enter actual journal entry. In addition, budgetary control groups having following items. 1. Tolerance - % & Amount 2. Override Amount 1A.Tolerance %: When we are defining budgetary control group as Advisory/Absolute, the tolerance % helps to add % amount with budgeted amount

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Page 34 of 234 (Budget Rs.16000+Tolerance 10% on Budget Rs.1600=Rs.17600/- will be allowed maximum for making an expense journal to compare with budgeted. 1B.Tolerance Amount: When we are defining budgetary control group as Advisory/Absolute, the tolerance amount helps to add the tolerance amount with budgeted amount (Budget Rs.16000+Tolerance Amount Rs.2000=Rs.18000/- will be allowed maximum for making an expense journal to compare with budgeted. If we defined both % and amount, it will consider whichever is less. % = Rs.1600 Amount = Rs.2000 In this situation, tolerance will consider Rs.1600/- only (Minimum) and it will be added with budgeted amount (Advisory/Absolute) for meet the expense.

2. Override amount: The defined budget amount is Rs.90000/- (Absolute) If we define a override amount is Rs.105000/- the expense journal will allow to meet Rs.105000/- as maximum budgeted. Encumbrance: Temporary blocking of funds against budget. Encumbrance is a charge or lien to block the budget amount. (Reserving Funds for making some particular or budgeted expenses) In payable, there is an Encumbrance which is use to follow in our enterprises. In Encumbrance, Commitment Purchase Request only Obligations Purchase Request is converted in to Purchase Order Journals>Encumbrance The budgeted amount for particular account= Rs.100000/The encumbrance journal for the same account = Rs.20000/- (Reserved/Temporary Blocked) Therefore, Balance = Rs.80000/- only can spend for that account expense. ORACLE FINANCIALS

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Page 35 of 234 If we want to perform encumbrance, we need to follow the following steps 1. Create a Funding budget for Rs.60000/- (Creation of Budget Definition, Budget Organization, Budgetary Controls, Journals and up to posted Rs.60000/3M = 20000 PM) 2. Then, create encumbrance journal (Journals>Encumbrance) for Rs.8000/- Post it 3. In Inquiry Funds Budget Rs.20000; Encumbrance; Rs.8000; Actual Rs.9000; Ava:3K a. Therefore, the Rs.8000 is temporary blocked out of Rs.20000 for that particular account and actual spent Rs.9000 only. The Remaining funds available = Rs.3000/Budget Transfer: Account to Account Fixed Amount or Percentage GL automatically runs journal import and An un-posted journal is created

Budget>Enter>Transfer Budget: KR BUDGET FUND (Funding Budget) Select Batch Name: KR BUDGET FUND TRANSFER BATCH (Funding Budget Transfer) Create
From Budget Organization KR BUD ORGAN FUND Account 33-110-7210-0000000 Budget Organization KR BUD ORGAN NF To Account 33-110-7110-0000000

Click: Transfer amounts Select Period: Jan 00/Feb 00 /Mar 00 Define: % or Amount for Transfer from particular account to transfer account (Rs.2000/-) After defining period and amount, click transfer by period range Old & New balances will be displayed. To see the transfer impact: Inquiry Funds Select Account: KR FUNDING BUDGET 33-110-7210-0000-000 Budget Rs.18000/- only (Because, Rs.2000 transferred to 7110 account)

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Page 36 of 234 Budget Rs.18000; Encumbrance; Rs.8000; Actual Rs.9000; Funds Available: Rs.1000/- Only This is the result after budget transfer. Formula Based Budget: (For Non Funding Budget Only) In Budget Organization, F11 KR% - Control F11 Select: KR BUDGET ORGAN NF (Non Fund) Go to Ranges Add New Line and define High and Low Accounts with Type: Calculated In continuation, click ranges and define the account and type Calculated Save it Concurrent Request View Request Find Status: Completed Now, we have created an account for formula based non Funding budget (Calculated) Then, Budget>Define>Formula Batch: KR NF Formula Batch (Create) Journal: 8115Journal (Create) Category: KR (Attach)
Currency: USD In Lines, 10 33-110-8115-0000-000

In Formula, 1 2 Enter X Rs.0 Rs.10 (For X) 33-110-9350-0000-000 Actual YTD STAT

Save it Click Calculate ORACLE FINANCIALS

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Page 37 of 234 Attach Period Submit Request Status: Completed Result: Rs.10000 (Statistical) x10 = Budget Amount Rs.100, 000/- (Formula based Non- fund budget) Then check the non- Funding budget with formula based calculation Result, +Inquiry+Account = Select periods & Budget Type and Account Result Rs.100, 000/- (Budget) Thats all. Revaluation: Translation foreign currency balances to local currencies Daily Rate Period end rate One time rate

Difference between foreign and local currency = Unrealized gain or loss Setup>Currencies>Rates>Daily Daily Rate: For daily currency rate purpose
From USD To EUR Date Type 01APR-04 KR EUR USD to EUR 0.5 EUR to USD 2.0

0.5 USD = 1 Euro (1 Euro/0.5 USD = 2 Euro) Therefore, 1 USD = 2 Euro Setup>Currencies>Rates>Period Period Rate: For year-end or month end average closing purpose
From USD To EUR Type Actual Period APR-04 Average 1 End 0.8 Revaluation 1.25

First Enter the Period and then enter the convertible currency type EUR Average/End/= 1/0.8= 1.25 Revaluation Rate 0.8 Euro = 1 USD ORACLE FINANCIALS

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Page 38 of 234 Therefore, 1 Euro = 1.25 USD. Thats all Now we can enter currency conversion journal. Go to Journal>Enter
Journal: KR REVAL 01 Period: Mar 04 Category: KR Entered Line 1. Account 33-000-1560-0000000 33-000-2210-0000000 Dr. (EUR) 100, 000 Cr. (EUR) 0 Converted Dr. (USD) 125, 000 Cr. (USD) Currency: EUR (Change the Currency from USD to EUR)

2.

100, 000

125,000

We have changed the functional currency USD to EUR in journal. Therefore, when we are entering 100, 000 EUR, it will automatically converted as USD [Euro 100, 000 @ 1.25 USD = USD 125,000] This is what conversion entry from functional currency to another currency. Actually, we have entered Euro 100, 000 and it will debit USD 125000 from our account. Now, we can do revaluation. Go to Currency>Revaluation Revaluation: KR Revaluation (Create) Auto Post Revaluation: (If it enables, the revaluation entry will be posted automatically after perform the function. Currency Options: All Currencies: We can use revaluation for multiple currencies Single Currency: Euro

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Page 39 of 234 Rate Options: Period Rates: Enable it Gain/Loss Accounts: 000-7846-0000-000 (Gain) 000-7848-0000-000 (Loss) Revaluation Changes: Low 33-00-1560-00-0 High 33-000-1560-0000-000

Click Revaluation It will generate and run the revaluation program. Name: Program Revalue Balances (Automatic Generated) Parameters Period Apr-04 Submit Concurrent Request View Status Completed Go to Journal>Enter Source: Revaluation Period: Apr-04 Find Journal Summary - Review your Currency Conversion Entered Journal Post it and Entry is, Dr. Result: 33-000-1560-0000-000 33-000-7848-0000-000 1.25 USD 1 Euro 1 USD - ? 0.8 USD 125000 To be Paid EUR 100000*0.5 = USD 200, 000 (1 EUR/0.5 Period End = 2 USD) USD 200, 000 Actual Paid Cr. 75, 000 (USD) Loss

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Page 40 of 234 Difference = USD 75000 (Exchange Fluctuation) Thats All. Revaluation For Example, UAE 0.5 USD 2

Therefore, 1 USD = 2 UAE ? = 1 UAE

0.5 USD * 100, 000 UAE = 50000 USD to be Received 0.25 USD * 100, 000 UAE = 25000 USD Received Revaluation Value Therefore, 50000 25000 = 25000 USD (Exchange Fluctuation Loss) Translation: Translation of functional (local) currency to any foreign currency. However, In translation, we should not change local currency to foreign currency in journal entry Functional Currency USD 1 Foreign Currency EUR 0.25

Therefore, 1/0.25 = 4 (1 EUR = 4 USD) Currency>Translation

Value KR

Translation EUR

Period Apr-04

Click Translation Required ID will be generated Check Converted Balances: Inquiry>Account ORACLE FINANCIALS

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Page 41 of 234 Enter your periods and your target currency and select Translated Type your account and show converted balances Entered 100, 000 USD * 0.25 EUR = USD 25000 Actual Paid Finally in translation, we have entered USD 100000 and USD 25000 only accounted in our book based on translation Cumulative Translation: (Like Debtors and Creditors Reinstatement at end of year) Reports>Request>Standard Name: Trail Balance Detail Company: 33 Currency: USD Period: Apr-04 Type: PTD Submit Request The difference of translations transfer to cumulative translation account The difference between month and year rates transfer to cumulative translation adjustment And it is purely based on year-end and period end rates. Consolidation: If Enterprise dealing Single Currency (Single Set of Books) Consolidation will be easy If Enterprise dealing Multiple Currency (Multiple Set of Books) Consolidation is bit complicated Accounting Rules Segment Rules This is applicable

Now, Pass journal entry in both parent and subsidiary company In parent: (Vision Operations) Journal KR MASSCONSOLIDATION 1EO1 33-000-7695-0000-000 33-000-2210-0000-000 20000 20000

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Page 42 of 234 Check funds Post it (Mar 04) Switch to Vision Services (Subsidiary) Check whether your 33 company in services or create Journal KR MASSCON JE SUBSIDIARY
01-110-7675-0000-000 01-120-7675-0000-000 01-130-7675-0000-000 01-000-2210-0000-000 10000 12000 13000 36000 -

Save it

In subsidiary, Consolidation>Define>Map Mapping: KR Mass Con Mapping Rule Subsidiary: Vision Services Parent: Vision Operations Currency: USD Enable Audit Mode Usage Standard Aug For Banking Method: Transactions (Same Currency) Balances (Difference Value) Click Segment rules:
Company Department Copy Value From Use Rollup Rules Parent 000 Detail Ranges Subsidiary 110 to 110 Services Company Services Department

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Page 43 of 234
Account Sub Account Product Save it Period Mar 2006 Mar 2006 Copy Value from Assign Single Value Copy value from Services Account 0000 Services Product

Click Transfer Submit

Conversion Mapping Rules We can define in anywhere either subsidiary or parent company Go to parent (Vision Operations) In Journal: Source Consolidation Apr 2006 In this, we can get subsidiary journal entry as un posted. You just review and post it. Then, Subsidiary journal entry posted in parent company. This is what consolidation process Thats all

GL Reports: Trial Balance/Ledger Report/Variance Report/Etc. To view the reports Reports>Request>Standard Attach your Request Submit and View Financial Statement Generator (FSG) Preparing statement for ledger accounts with balances only for MIS Row Set (Mandatory) format of content in Rows in FS Column Set (Mandatory) format of content in columns in FSG report Column Builder (Mandatory) Row Order Content Set Display Set

Types of Report: ORACLE FINANCIALS

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Page 44 of 234 Comparison Report Variance Report

1. Define a Row Set: Reports>Define>Row Set Name: KR Reports Click Define Rows
Line 10 Line 20 Line 30 Line item: Expense for 110 Line item: Expense for 120 Line item: Expense for 130

Accounting Assignments:
Line 10 Line 20 Line 30 Line 40 33-110-7695-0000-000 (Save) 33-120-7695-0000-000 (Save) 33-130-7695-0000-000 (Save) Expenses Total

Click Calculation Formula: Line 1 Enter + Low 10 High 30 (Line Total)

2. Define a Column Set: Reports>Define>Column Set Name: KR Reports Click Define Column Position: 51 Sequence: 10 ORACLE FINANCIALS Amount Type: PTO Actual Currency: USD

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Page 45 of 234 Offset: -1 (-1 = March; 0=Current Month; 1=Next Month) Display Zone: Enable Position: 76 Sequence: 20 Offset: 0 Save it. 110 100 120 200 130 300 ------500 -------Click: Build Column Set Adjustment: Ok Save it 3. Reports>Define>Report KR Financial Report Attach your Rows and Column Run report New run window opened KR Financial Report Submit View Request Completed Output Report will be generated For Variance Report, Pass an expense journal entry for budgeted amount. Then only, variance report will be generated ORACLE FINANCIALS (100 is 20% of 500 Percent of Column) Amount Type: PTO Actual Currency: USD

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Page 46 of 234 Go to: Row Set & Column Set Amount Type: ITO Variance (Transferred value =1 ) Make it Process View Output Variance report also include in that report. Inter Company Transaction: Inter-Company transaction held in difference set of books Subsidiaries Transactions type Clearing Account

1. Setup>Inter-company>Subsidiaries Subsidiary: Vision Services (Create/Your Inter-company) Inter-Company Book: Attach Inter-Company Book Currency: USD Company: 01 (Another Company) Attach as required 2. Transaction Type: Create KR Transaction Type 3. Clearing Accounts: Clearing Accounts (1810) After Setup Now, Transactions>Enter (In Find Transaction Click View) This is for parent company
Attach: Receiver (Services) In Line: Account CT-000-1810-0000-000 Inter-Company Clearing Report: Account CT-000-1810-0000-000 Amount (Dr.) 100000 Amount (Cr.) 100000 & Sender (Operations) & Period & Transaction Type

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Page 47 of 234
(Receivable)

Approve: Number will be created Submit: Completed Switch Responsibility to Vision Services: Same process as like parent company M1-000-2371-0000-000 (Payable) Approve: Number will be created Submit: Completed View Request Single Request Completed View Request Single Request Name: Program Intercompany Transaction/Transfer Parameter: Attach Submit View from Transaction + Enter Number will be generated Attach the generated number Yes (Transferred)

ORACLE FIXED ASSETS FIXED ASSETS: It ensures a particular company property and equipments are accurate and for calculating depreciations as per companies act and income tax acts. Setups in Setup Setup>Asset system>Fiscal years 1. Create Fiscal year KR ACCOUNTING YEAR 2005 APR 05 TO MAR 06

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Page 48 of 234 2. Create Calendar year KR MONTHLY (Fiscal/Calendar/None) APR-05 = 01-APR-05 TO 30-APR-05 Up to 01-MAR-06 TO 31-MAR-06 3. Setup>Asset system>Prorate Conventions KR CURMON (Current Month Convention (Define)) Period: 01-APR-05 TO 30- APR-05 Prorate Date: 01-APR-05 (Prorate0: Purchased on 01.12.11 Calculate depreciation from December and not from beginning of the year.) If we define Prorate for 15 Days Purchased 20.12.11 Calculate depreciation for 15 days 4. Book Controls: KR CORP BOOK Under Corp Book Calendar: GL Set of Books Vision Operation
Depreciation/Fiscal/Prorate Automatic generation by definition of KR Current Period We defined from Apr- 06.However, it takes May-05 Natural Accounts: Company 27 Vision Consulting Limited Department 730 Finance Account 9999 Not Applicable Sub-Account 0000 No Sub Account Product 000 No Product

Journal Categories: Journal Resource Assets Others General; Fill all the fields; Addition, Adjustment After Book Controls, we have to create Asset Categories in Flex Fields of General Ledger (GL) Operations Switch to GL Responsibility GL Vision Operations KEY FLEX FIELD

CATEGORY FLEX FIELD ORACLE FINANCIALS

LOCATION FLEX FIELD

ASSET KEY FLEX FIELD

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Page 49 of 234

Setup>Financials>Flex Fields>Key>Values 1. Find Key flex field segment: Category


Application Oracle Assets Title Category Flex field Structure Vision Category Flex field Segment Major Category Find (Create Major Category Items in Segment Values)

In Find Segment Values window opened for (Major/Minor) Creation of Fixed Assets
1. KR Land &BuilKRg 2. KR Plant & Machinery 3. KR Vehicles 4. KR Office Equipment 5. KR Expensed Asset 6. KR Intangible Asset

Click Find (i.e. torch button, it change to MINOR category) Now, we can create minor items under major items If Independent Value is Major Category, dependent value is minor category Under KR Land & BuilKRg Block1 KR LAND Block2 KR BUILKRG Under KR Plant & Machinery Plant1 KR Plant Plant2 KR Machinery Under KR Vehicles Ford KR Cars Lancer KR Bike

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Page 50 of 234 KR Office Equipment KR Computer KR Xerox

KR EXP ASSET KR Tools KR Mobiles

KR Intangible Assets KR Goodwill KR Patent

2. Find Key flex field segment Location: Application oracle Assets Title Location Flex field (BuilKRg/City/State/Country) Structure Vision Flex field Location Flex field Segment BuilKRg/City/State/Country Under BuilKRg [Add New] Area 1 Area 2 Under City [New] Chennai Bangalore

Under State [New] TamilNadu Karnataka Under Country [New] India 3. Find key flex field segment: - Asset Key ORACLE FINANCIALS

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Page 51 of 234 Application oracle Assets Title Asset key flex field Structure Asset Key Flex field Segment Asset Key (Some construction, electrical and mechanical related assets) Under Asset Key Factory Office In General Ledger Aliases For creation of Aliases, we have to create all the short names in General Ledger itself belong to particular company After creation of key flex fields in order o fixed assets, switch over to Oracle Assets for giving linking categories to books Setup>Asset System>Asset Categories (Linking Minor Assets to Major Assets with Dep Method) Asset Categories [F11] KR LAND & BUILKRG BLOCK 1 Category type Non Lease
Ownership Owned GL Accounts: Book KR CORP BOOK Asset Cost 27-000-1620-0000-000 Asset Clearing 27-000-1570-0000-000 Dep.Expense Segment 7320 Accumulated Depreciation 27-000-1620-0000-000 Bonus Expenses 7320 Bonus Reserve 27-000-1620-0000-000 Revaluation Reserve 27-000-1670-0000-000 Revaluation Amortization 27-000-1680-0000-000 CIP Cost 27-000-1580-0000-000

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Page 52 of 234
CIP Clearing 27-000-1590-0000-000 (Company Department Account Sub Account Product) (Benchmark Engineering Dept Office Equipments Air Conditioning/N.A- Samsung) Under Asset Categories Default Rules Method Straight Line Life Years 10 (Compulsory) Months 0 (Automatic Generated) Salvage Value 10% Following Assets items linked to Asset Categories KR Land & BuilKRg Block 2 KR Plant & Machinery Machine 1 KR Plant & Machinery Machine 2 KR Vehicles Ford KR Vehicles Benz KR Vehicles Lancer

Setup>Asset System>Location (Linking Major Assets to Location) Locations [Country State City BuilKRg] This location talk is applicable for all assets

Depreciation Methods: Setup>Depreciation>Methods (Defining Depreciation for Assets)


1. 2. 3. 4. 5. Flat Rate Method On NBV/On Cost Calculated Method On Cost Only Not in NBV (Straight Line Method Only) Table Based Method On NBV/On Cost Production Method On NBV/On Cost Formula Based Method On NBV/On Cost

1. Flat Rate Method:

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Page 53 of 234 Method KR Flat Method Method Type Flat Calculation Basis Cost Dep: Use Recoverable Cost Depreciation in Retired Right Exclude Salvage Value As Required Straight Line Method Blank (Not Required) Life Years Blank (Not Required) Rates: Basic 10% Adjusting 10% (If any machine works above assigned hours, the excess hrs is adjusted) Adjusted 11% 2.Calculated Rate Method: Method KR CALC MET Method Type Calculated Calculation Basis Cost Depreciation in Retired Right Exclude Salvage Value Blank (Not Required) Straight Line Method Right Life years 10 (As Required) 3. Table Based Method: Method KR Table bas Method Type Table Calculation Basis Cost Depreciation in Retired Right Exclude Salvage Value Blank (Not Required) Straight Line Method As Required ORACLE FINANCIALS Rates: Not Applicable

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Page 54 of 234 Life years 3 Prorate Periods per Year 12 Rates:


YEAR 1 2 3 PERIOD 1(M) 1(M) 1(M) ANNUAL RATE 0.3 0.2 0.5

Year: If we defined Life year 3 means, the depreciation year will be 4 years. (1st year is auto generated. Because, If we purchased any asset May 2005 means, depreciation will be calculated for 05-06, 06-07, 07-08 and these years closed on April 2008 only. Therefore May 2005, May 2006, May 2007, April 2008 = 4 years will be generated for 3 years life) Period: Period defined as monthly. It takes 3 years for 12 months (1st year 1st month, 2nd year 1st month, 3rd year 1st month, 4th year 1st month) For 1st Month, we should change the depreciation rate (0.1 or 0.4 or 0.3 or 0.2) Its purely based on company policy for every month depreciation on table based depreciation Annual Rate: The annual rate should be equal to 1 (0.1+0.4+0.3+0.2 = 1)

4. Production Based Method: Method KR PROD MET Method Type Production Calculation Basis Cost Depreciation in Retired Right Exclude Salvage Value Blank (Not Required)

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Page 55 of 234 Straight Line Method Blank (Not Required) Life years Blank (Not Required) Prorate Periods per Year Blank (Not Required) 5. Formula Based Method Method KR FORMULA Method Type FORMULA Calculation Basis Cost Depreciation in Retired Right Exclude Salvage Value As Required Straight Line Method Automatic generated Life Years As Required 12 Prorate Periods per Year 0 Define Formula: DECODE (SIGN (<REMAINING LIFE 1>, 13), 1, 0.2, 0, 0.6,-1, 0.8) Its purely IF condition statement. It calculates depreciation based on remaining life years positive, negative or equal. In this Test Formula, there are 3 operations such as,
1. Variables = Life/production capacity/remaining life1/&2/salvage value/short year. We can define the formulas for calculating depreciation based on the requirement of company 2. Functions = Decode, Greatest. Least, Power, Round, Sign, Sort We can give the conditions with the help of above functions for defining the formulas. 3. Formulas = Defined formula added in that column

Quick codes: setup>asset system>quick codes AdKRg Companies After Setting up of Depreciation Methods, we can add companies and assets in accounting flex fields Switch over to Oracle GL Operations for adKRg companies &assets Setup>Financials>Flex fields>Key>Values ORACLE FINANCIALS

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Page 56 of 234 In this criteria, we can add Company/Account/Department/Sub-Account/Product 1. Find Key Flexi field segment:- For AdKRg the segment we can follow the steps Application General Ledger Title Accounting Flex Field (For creating of account items) Structure Operations Accounting Flex field Segment Company/Account/Department/Sub-Account/Product Already we have created, Major Categories of Assets, Minor Categories of Assets, Calendar Years, Fiscal Years Prorate Conventions Asset Keys Locations & Everything Linked to Book Controls However, we can add certain assets under the minor categories as per Company Requirement. DISTRIBUTION SET For Addition of Assets, We can switch over to Oracle Assets Operations Assets>Asset Workbench In Assets, we are having New & Quick Additions. (Other options are based on requirement) New: a) Asset details: We can fill up the asset details (TN05 D1000 Benz Car 2 Units) and link the categories as instructed. b) Source Lines: Supplier Invoice Number, Name, PO Number (Continue & Then) c) Books: For this new benz car, we can add the Corp Book and enter the cost of assets (Continue) However, YTD Depreciation = Previous Year Manual Depreciation Values ORACLE FINANCIALS

J. Sureshraja M.com., MBA., CA (f).,

Page 57 of 234 Salvage Value = Scrap Value (Original Cost Scrap value = Recoverable Cost) d) Assignments: No. Of Units under 2 Units, User Name, Expenses Account, Location (Linkings) With the help of above options, we have created new Benz Car 2 Units with all requirements. Quick Additions: ExcluKRg detailed requirements We can fill up the new asset details in quick additions (TN05 D2000 Ford Car 1 Units) and link the categories as instructed. Result: Transaction Saved & Reference Numbers are 4481 & 4482 Add additions for all Assets For Assigning Depreciation: After Creation of Various Assets Minimize all the existing windows and go to Setup>Asset system>Asset Categories In this you can define/ already defined depreciation methods for assets as per company requirement. (We can change salvage value % manually) Then, Assets>Asset Workbench Now, we can attach the book and enter the values of assets and select depreciation. It permits to view financial information and other information of particular assets For Calculating Depreciation: Depreciation>Run Depreciation Book: KR CORP Book Period: Monthly Closing Period Close Period: Enable (Once the program closes the period, we cannot reopen the same period) Now we can go to Asset workbench and view the financial information of all the assets incluKRg calculated depreciation values based on the allocated depreciation methods (We cannot perform a Reserve Adjustment on fully retired assets) Switch responsibility to Payables Mass Addition: Enter an invoice in AP

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Page 58 of 234 In Detail, 1. Enter an invoice in AP Switch over to AP and create an invoice. Invoices>Entry>Invoice (AP) Enter an Invoice as Instructed and go to distribution column in order to cost of the asset and other freight expenses. (50000+5000=55000 Net value of Asset); Track the freight with asset by (View Show Field Track Asset) asset 1570 & Freight 7220 Actions: Approval: Force Approval (Enable) &Create Accounting (Enable) Status: Validated after the approval process 2. Submit a program payable transfer to GL: Run: Other>Request>Run Single Request Name: Payables transfers to GL Attach the book and Make the parameter dates for submit the program Go to view and request Refresh It Status Completed Copy the Batch Name from output 3. In GL, Query the batch and post it (Posting Optional) (GL) Journals>Enter Paste the copied batch and find it. Status: UnPosted in GL Click the Post Button and then it will be posted in GL Status: Posted in GL 4. In AP, Initiate a program Mass Addition Create (AP) Other>Requests>Run Submit a program payables transfer to GL In GL, query the batch and post it. (Posting Optional) In AP, Initiate a program Mass Addition Create In FA, Prepare Mass Addition Run In FA run the Post Mass Addition

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Page 59 of 234 Single Request Mass Additions Create Report Parameter KR CORP Book Submit and view Request and Find the status: Completed & Normal 5. In FA, Prepare Mass Addition Run (FA) Mass Additions>Prepare Mass Additions Attach your Book KR CORP Book Find the Mass Additions Summary For: Split/Add to Asset/Merge In that, we should open and view the status On Hold Then, we can manually change it as Post 6. In FA, Post Mass Addition Run (FA) In Mass Additions Column Attach the Parameter (Attach the KR CORP Book) Submit and View Request It has been Posted Now, we can go to Asset Work Bench and can view attached assets are posted. (The same steps of 5 & 6 will be followed for Split/Add to Asset/Merge) Creation of CIP Assets: Switch over to GL Setup>Financials>Flex Field>Key>Values 1. Find key flex field segment: - Category (Create a Major)
Application Oracle Assets Title Category Flex field Structure Vision Category Flex field Segment Major Category Find: New KR CIP Assets 2. Find Key Flexi Field segment: - Category (Create a Minor Category) Application Oracle Assets

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Page 60 of 234
Title Category Flex field Structure Vision Category Flex field Segment Major Category Independent Value: KR CIP Assets (Created Major Category) Under the Major Category, we can create a new minor category New KR CIP Project 1 The new CIP Assets are created in Oracle Database and should give link to Asset Categories Switch over to Assets, V.O (USA) Setup>Asset System>Asset Categories Asset Categories KR CIP ASSETS Category Type Non Lease Ownership Owned GL Accounts: Book KR CORP BOOK Asset Cost 27-110-7410-0000-000 Asset Clearing 27-110-1510-0000-000 Depreciation Expense Segment 7320 Bonus Reserve 27-000-7410-0000-000 Revaluation Reserve 27-000-7410-0000-000 Revaluation Amortization 27-000-7410-0000-000 CIP Cost 27-000-1580-0000-000 CIP Clearing 27-000-1590-0000-000

The Created categories are linked to asset categories. Now, we can add the CIP assets in Asset Workbench. For view the created CIP assets in Asset Workbench, attach book and Find Financial Enquiry = 0 Then go to Source Lines and enter the values = Rs.20000 ORACLE FINANCIALS

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Page 61 of 234 Now, Financial enquiry = Rs.20000 Then in Books, attach book and press Tab. If we dont want depreciation for CIP Assets, disable the depreciation box. Capitalize the CIP Assets Assets>Capitalize>CIP Asset Attach Book and Find Enable the particular asset as Capitalize and save it Now, the CIP asset converted as Capitalized. We can reverse that particular asset with the help of reversal of capitalize asset. LEASE: Financial Lease Depreciation applicable Operational Lease No Depreciation

Conditions: Transfer of ownership at the end of lease terms Bargain purchase option Purchase Price (Fair Market Value) Economic Life (Lease Period => 75 % of Economic Life) o (If its > than 75 % of Asset Life, it can be capitalized else it will be treated operating asset) Net Present Value (NPV) of Lease Rentals => 90 % of Fair Market Value

The above conditions should satisfy in leasing functions. Steps in Leasing Function: (Oracle) Creating Lease Categories Entering Lease Details Entering Lease Payment Details AdKRg on Assets

1. For Creating Lease Assets (Switch to GL) Setup>Financials>Flex Field>Key>Values 1. Find Key flex field segment: - Category (Create a Major) Application Oracle Assets Title Category Flex field

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Page 62 of 234 Find: New KR LEASE Assets 2. Find Key Flexi Field segment: - Category (Create a Minor Category) Application Oracle Assets Title Category Flex field Structure Vision Category Flex field Segment Major Category Independent Value: KR LEASE Assets (Created Major Category) Under the Major Category, we can create a new minor category New KR LEASE A1 The new Lease assets are created in Oracle Database and should give link to Asset Categories Switch over to Assets, V.O (USA) Structure Vision Category Flex field Segment Major Category

Setup>Asset System>Asset Categories


Asset Categories KR LEASE Category Type Lease Ownership Lease GL Accounts: Book KR CORP BOOK Asset Cost 01-730-7320-0000-000 Asset Clearing 01-730-9950-0000-000 Dep.Expense Segment 7320 Accumulated Depreciation - 01-730-7320-0000-000 Bonus Expenses - 7320 Bonus Reserve 01-730-7320-0000-000 Revaluation Reserve 01-730-7410-0000-000 Revaluation Amortization 01-730-7420-0000-000 CIP Cost 01-730-7440-0000-000 CIP Clearing 01-730-9950-0000-000

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Page 63 of 234 Now we had given link Lease Accountings (GL) to Asset Categories and setting default depreciations. 2. Entering Lease Details: (FA) Setup>Asset system>Leases>Lease Details Lease Number: KR Lease 2 Others Optional Payment Schedule To be defined Lease Type: Operating (Automatic) Payment Schedule: Payment Schedule KR Lease 2 (Any Name) Lease Date 01-May-2005 Interest Rate: 5 % CompounKRg Frequency Monthly/Quarterly/Semi-Annually/Annually Present Value System will calculate based on Lease Payments For Example, we have leased one asset and ready to pay Rs.5000/- P.M. for the period of 10 Months. Now, we have to define the above items in lease payment schedule Start Date Lease Amount per Month No. of Installments Lease Payment Period End Date
01-May-2005 5000 10 Annually 01-Aug-07

CompounKRg Frequency Monthly It means, the payment date automatically shows when that data arrive Its applicable for all quarterly, semi annually, annually Payment Types Annuity Payment Annual Payment Balloon payment Fluctuated on Monthly Basis Bargain Based on Communication Others ORACLE FINANCIALS

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Page 64 of 234 Based on the inputs, it calculates the lease payments along with interest paid for that asset and it shows the net present value. (Rs.5000/- for 10 months = Rs.50000/- means, then net present value is automatically generated Rs.47,311.72 with the help of interest rate. Capitalization/Operating Lease Term 10 Asset Life 12 Therefore, if resulted the lease payments schedules based on our inputs and It will be capitalized otherwise, the test result will be operating. Else, based on market evaluation we found that asset value is Rs.52000/Calculated (NPV) = Rs.47, 311.72(For 10 Installments of Rs.5000/-) Result to Capitalization If enter Rs.52000/- in Fair Value, the Cost to Capitalize is Rs.47, 311.72 (NPV is less than Fair) If enter Rs.45000/- in Fair Value, the Cost of Capitalize is Rs.45, 000.00 (Fair value is less than NPV) If the fair market value exceeds present value, the lease term should be 75 % greater Else, the present value should be 90 % of fair market value. AdKRg Lease Assets: Lease Assets can be added through detailed addition only whereas not from quick addition. Assets>Asset Workbench (FA) In this asset workbench, we can add the lease assets with new option only. Give the new assets name and assign categories (Lease Categories Attachment) and attach the lease number, which you have entered in lease details and lease payment schedule. It helps to capitalize the lease asset (Already used as lease asset and our management would like capitalize such asset due to less fair market value) and assign all the sources with respective account book and concerned location and attach your Corporate Book. The above categories and books are related to CORPORATE BOOK only. Now, we study about BUDGET BOOK BUDGET BOOK The budget book will be used only for internal MIS purpose. ORACLE FINANCIALS

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Page 65 of 234 There are certain steps to create and function the budget book. They are,
1. Create a budget book Associate to corporate book 2. Enter the budget amount 3. Create Budget assets 4. Projecting depreciation

1. Create a budget book Book Controls KR BUDGET BOOK Associate to KR Corp Book Calendar: GL Set of Books Vision Operation Depreciation/Fiscal/Prorate Automatic generation by definition of KR Current Period We defined from Apr -05. However, it takes May 05 Natural Accounts: As defined in KR CORP Book 2. Enter the budget amount Budget>Enter (FA) Attach Budget Book KR BUDGET BOOK Attach the category KR PLANT & MACHI MACHINE 1 Mention the expense account 10-110-7320-0000-000 Then define the budget amount for that particular asset for all the fiscal year periods. (1000-1500-2000-25006500) Save it and Upload the created budget. Budget>Upload (FA) Attach book and enable delete existing budget book Then, run the assigned budget book for the particular asset. After uploaKRg Capital Budget, we need to do the following process to get budget Depreciation: 1. Run depreciation for regular asset depreciation for that current month Corp Book>Depreciation>Run (FA) To run the budget depreciation, we should run the actual asset depreciation first. ORACLE FINANCIALS

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Page 66 of 234 2. Run depreciation for Budget Book for that current month Budget Book>Other>Requests>Run (FA) Single Request Budget to Actual Report and Parameter: Budget Book & Corporate Period Submit View Request and View Output. Now, we can get budget depreciation as required. Depreciation Projection:
1. Run the actual depreciation for the assets Depreciation>Run Depreciation (FA) 2. For depreciation projection Depreciation>Projections (FA) Projection Calendar KR Asset Cal No. of Periods 5 [If KR Asset Calendar is 12 months that is annually, the number of period is next 5 annual years. Its like annually/quarterly/monthly 3. Starting Period As Required 4. Books Attach your book Maximum 4 books and all of the books must use same account structure 5. The report can generate depreciation Projections based on Cost Center & Asset Center

What If Analysis: We can analyze the particular asset based on the following options in order to take management decision. We are regularly using the one method with rates for that asset. However this what if analysis helps to take some management decisions Different Depreciation methods Different Rates of depreciation Different conventions & requirement

Rollback Depreciation: It helps to roll back the calculated depreciation, if the end user forgot to insert any assets of adjustments. The following process and limitation involves in this roll back depreciation. 1. We will run the depreciation for current month period with closure of current period 2. It calculates depreciation and assigned to all the assets 3. With the help of interface in GL, it passes the journal entries in GL from FA and it passes journal entry implications reduce the asset value based on depreciation values. This is normal process. However, the end user can make any mistakes or forget to make any adjustments. Hence, the end user should follow the following steps to run the depreciation. 1. We will run the depreciation for current month period but should not close current period ORACLE FINANCIALS

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Page 67 of 234 2. It calculates depreciation and assigned to all the assets 3. With the help of interface in GL, it passes the journal entries in GL from FA and it passes journal entry implications reduce the asset value based on depreciation values. In this situation, end user found that he forgot to add some assets or wants to make adjustments. He would like to rollback the calculated depreciation. Since the current period is not closed (Period is opened) when he ran depreciation, he can rollback the calculated depreciations. Roll back will be possible when the period is opened only. (Period should not close at the time of running the depreciation) Now the end user operates the Rollback Depreciation Depreciation>Rollback Depreciation with Corporate Book and Current Month Period (Status: Open). Submit & View Request & View Output. It revert all the calculated depreciations for all the assets. Meanwhile, the end user should pass the reversal entry in GL. But with the help of interface only, it should pass the reversal entry in GL. (In practical, this option is not possible). Therefore, end user goes to GL and passes the reversal entry. Then again end user can make adjustments and run the depreciation. This is what the process and limitation of Rollback depreciations. Warranties: It helps to fix the warranty details for particular asset. Setup>Asset system>Warranties (FA) Assign Asset Warranty Number Define the warranty period starting and end date Define the value of asset and required details

Finally, it assigns the warranty details for the required asset Maintenance: It helps to assign and manage the maintenance cost of particular asset. Assets>Maintenance>View Details (FA) Click F11 ORACLE FINANCIALS

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Page 68 of 234 Paste the maintenance Asset Number Click Control F11 The assigned schedule event will calculate the maintenance services cost and details for that particular asset for given period. TAX BOOK: [To track different depreciation rates or methods as per company law and rules of country] Principles of Tax Book: 1. No Direct Additions of Assets 2. Assets are added by running - Initial Mass Copy - Periodic Mass Copy Initial Mass Copy: (For Transfer of asset information to Tax Book) It will run at one time The first year/previous year depreciation should be calculated. It means the end of fiscal year should be closed. Then only initial mass copy can be run. Initial mass copy will run at once in life of company In case the end user forgot to add one asset in last fiscal year, he cannot take the purchase date of that asset. Instead of that, he can take placed in service date only.

Periodic Mass Copy: It will run as and when required

In Tax Book function of FA, Process: Assets-> Corporate Book -> Tax Book Setup>Asset system>Book Controls (FA) Create: KR TAX BOOK (Class: Tax) Associated Corp Book: KR Corp Book ORACLE FINANCIALS The asset information only will be copy from corporate book and calculate depreciation based on defined tax rates and rules. While copying the assets from corporate book to tax book, the calculated depreciation of corporate book will not copied to tax book. Tax Book can be a multiple book. But, corporate book will be only one.

J. Sureshraja M.com., MBA., CA (f).,

Page 69 of 234 Allow GL Posting: Disable (To avoid duplicate depreciation entries in corporate book entries) Assign the Calendar, Accounting Rules, Natural Accounts & Journal Categories Tax Rules: Allow Reserve Adjustments Accumulated depreciation can be overwritten Allow Cost Ceiling For calculating tax depreciation, we can fix ceilings (If Ceiling Rs.1 lakh. The tax depreciation will calculate for that Rs.1 Lakh only whereas the asset value is of Rs.5 Lakh) Allow Expense Ceilings Fix the ceilings for calculating tax depreciation for expensed assets 2. Link Tax Book to Required Asset Categories Category: As Required Book: KR Tax Book & Define the account functions and set the default depreciation rules. Now, we have created Tax Book and given link to particular asset categories. We can process the function of Initial mass Copy & Periodic mass Copy Tax>Initial Mass Copy (FA) Name: Initial Mass Copy Parameters: Attach KR Tax Book Submit View Request Status: Completed Then, the corporate book assets all are copied in tax book We can view the assets +Asset Workbench: Find and select your assets. It shows the assets namely, Corporate Book Asset Value & Tax Book Asset Value Tax>Periodic Mass Copy (FA) Name: Periodic Mass Copy Parameters: Attach KR Tax Book Corporate Period: Define Submit View Request Status: Completed & View Report Then, the corporate book assets all are copied in tax book based on period wise (Current year assets will be copied) We can view the assets +Asset Workbench: Find and select your assets. ORACLE FINANCIALS

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Page 70 of 234 It shows the assets namely Corporate Book Asset Value & Tax Book Asset value Addition by Source Report: Other>Request >Run (FA) Name: Addition by Source Report Parameter: Attach book and periods Submit View Request Status: Completed & View Report Ceilings: Setup>Depreciation>Ceilings (FA) Create a new ceiling name and assign the periods (Start & End) with ceiling amounts It helps to calculate tax depreciation based on the ceilings Mass Transactions: 1. Mass Transfer Individual Transfer: Select an asset in workbench and go to Assignment. Enter -1 in existing Unit Change Column and Enter 1 in next row for the same asset with another account and some other locations. Make it done and view the same asset once again. It has been transferred from one account to another account. Mass Transfer: Mass Transactions>Transfer (FA) Entire assets can be transferred from one place to another place/ from one location to another location. Enter all the required items and make it preview It will generate Mass Transaction Number Reopen the mass transfer window Click F11 Paste the performed Mass Transaction Number Click Ctrl F11 Run it View Request Find Submit Status: Completed 2. Reclassification>Mass Transaction>Reclassification (FA) Reclassify an asset from one category to another category ORACLE FINANCIALS

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Page 71 of 234 Reclassify an asset from one category to another category Book: Attach your corporate book Details: Assign all the details of particular asset, which we could like to change from existing category to another category. (Fully Reserved Assets = Full value of an asset incluKRg accumulated depreciation) New Category: Assign the new category as would like to reclassify another category asset
-

Descriptive Flex Field: The descriptive FF of an asset also will apply to another category
while reclassification Inherit Depreciation Rules of New Category: Takeover of new category depreciation rules. Otherwise, after reclassification, those assets will take over the old category depreciation rules. Amortize Adjustments While inherit depreciation rules of new category, the amortize adjustment also should be enable. Else, the adjustments will be expensed.

Enter all the required items and make it preview It will generate Mass Transaction Number Reopen the mass transfer window Click F11 Paste the performed Mass Transaction Number Click Ctrl F11 Run it View Request Find Submit Status: Completed The performed reclassification function give results like, the reclassified asset changed from old category to new category.

3. Mass Changes>Mass Transactions>Changes (FA) Changing Depreciation and Convention methods for particular asset. Book: Attach your corporate Book Details: Assign asset details Numbers, Placed in services & Category Enter all the required items and make it preview It will generate Mass Transaction Number Reopen the mass transfer window Click F11 Paste the performed Mass Transaction Number Click Ctrl F11 Run it View Request Find Submit Status: Completed The performed changes function give results like, the changed asset has new depreciation methods and conventions. ORACLE FINANCIALS

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Page 72 of 234 4. Revaluations>Mass Transactions>Revaluations (FA) Revaluation of an individual or group of assets (Revalue of existing value of asset) Revalue Fully Reserved Assets Revaluation of depreciated assets incl. Accumulated dep. Life Extension Ceiling Fix ceiling for life extension asset Book: Attach your corporate book Details: Assign asset category details Rate: Inflation/ Deflation Rates as decided upon the existing value of said asset (%) Make it preview It will generate Mass Transaction Number Reopen the mass transfer window Click F11 Paste the performed Mass Transaction Number Click Ctrl F11 Run it View Request Find Submit Status: Completed The performed changes function give results like, the revalued asset having new values as revaluated. 5. Retirement>Mass Transactions>Retirements>Create and Reinstate (FA) Making retirement of particular asset (Making the value of asset is 00 or expensed) Book: Attach your corporate book Retirement Type: Destroy/Scrap/Theft/Sale/Retirement/Causality Proceeds of Sale: If we would like to sale, the sale amount should be entered Cost of Removal: If we would like to sale without some additional parts, we should remove that value of additional parts. Then define, Account, location and category of particular asset Click Create and it will generate Mass Transaction Number. Paste the performed mass transaction number, Click F11 Then, Click Retire View Request Find Submit Status: Completed We can view the transaction history +Inquiry + Transaction History

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Page 73 of 234 Attach Book and find the retired asset. It will give transaction history of retired asset. To view Journal Voucher of any transaction, Tools View Accounting Insurance: Assets>Insurance>Insurance Policy Details (FA) Find Asset in our corporate book and type policy number and Insurance company details It contains the base value of asset. Maintenance Calculation Method (Value as new/ Market value/ Manual value) Lines Insurance Category (Having various insurance options taken for an asset. Various classes against selected Insurance category Insurance Index: Setup>Asset system>Price Index (FA) Attach Index after created. Give a new name Index (General/Full Cost/Market value) Value % - 100 % for particular period to period, 101 % for particular period Enter current value of asset and save it Assets>Insurance>Insurance Calculation Routine (FA) Parameters: Attach book and asset. Submit and View Request Status Completed This is for assigning insurance details for particular asset at any time. Journal Categories: Standard Attach Book & Submit Request after run the functions. Deferred As Decided Rollback Rollback the journal entries which is posted in GL Use: Inquiry Transaction History Attach Book and Asset number Find Tools View Accounting Accounting Methods ORACLE FINANCIALS

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Page 74 of 234 Cash you account only for payments and do not record liability information for invoices. The payment accounting entries typically debit your expense or asset Account. Prorate convention lab: Setup>Asset system> Prorate convention KR KR PPC prior period convention Fiscal year To date 31-JAN-05 Prorate date 01-DEC-04

From date 01-JAN-05

Click and continue down.

ORACLE ACCOUNTS PAYABLE Accounts Payable: Effective Management of Creditors Correct recorKRg for payments Scheduling the invoices for payment

Business Flows: Place a requisition with purchase Requisition for Quotation from the supplier Receive quotations and select the best one Place a purchase order to that supplier Receive the goods along with the Invoice ORACLE FINANCIALS Purchase Order

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Page 75 of 234

Record the Invoice, Validate & Approve Yes Avail Discount Make Payments No Pay with Interest Payables

System Flows: Record the invoice from the supplier (Check Supplier) Process the invoice Accounting the transactions represented in the invoice Schedule the invoices (Due dates/Number of Installments) Make payment to supplier Reconcile with bank Posting (Transfer all invoices and payments to GL) Reports (For management)

Information Flow: Choose SOB Financial Options Payable Options Supplier Supplier site Invoice Work Bench Distribution Line level (Allocate to Cost Center) Financial Options: Setup>options>Financials Future Periods: As per our requirement 12 (Months)/ 4 (Quarters)
Tab1: Accounting: KR 000 2210 0000 000 KR 000 1340 0000 000 (Advance)

Schedule Payment level (Payment terms due date)

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Page 76 of 234
KR 000 2580 0000 000 (PDC Payment) KR 740 7825 0000 000 (Discounts) KR 740 7842 0000 000 (Variance) Gain KR 740 7844 0000 000 (Variance) Loss KR 110 7699 0000 000 (Miscellaneous)

Tab2: Supplier Entry: RFQ Requisition for Quotation Hold Unmatched Invoice If invoice is not match with PO, the invoice will be hold Invoice Match Option: Purchase Order/Receipt Entry: Automatic The sequence number will be automatic Type: Numeric For supplier/Alphabetic For Supplier Tab3: Supplier Payable: Term Immediate/30 Days as per contract Method Cheque: Manual Payment Clearing: Within organization Electronic: Bank to Supplier Wire Tele Transfer Receipt Acceptance Days Grace Days for making payment Always Discount (Pay with discount) Pay Alone (If enable this, that payment will run) Ship to location To Factory (Goods To) Based on Receiver

Tab4: Supplier Purchasing: Request

Bill to Location To Office (Bills To) Invoice Organization Based on Receiver Request Via Agent (Air/Ship) FOB Transfer (Territory) Freight Due/Cash on Delivery/ Etc. Tab5: Encumbrance: Use Requisition Encumbrance Reserve funds at the time of raise request ORACLE FINANCIALS

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Page 77 of 234 USE PO Encumbrance Reserve funds at the time of raise purchase order

Tab6: Tax:

Default Tax Code (Financial Tax Option) Based on Nation

Enable Recoverable Tax Define recovery rate while raising an invoice Sales tax is include When receive payment from client 100 % will be recovered (If its disable, the sales tax will not be recover from client) Up 75.56 = 76 Rounding Rule: Down 75.56 = 75 Nearest 75.56 = 76 Precise: 2 (No. of decimals) Min Account: 0.5 (Rounding Rule)

Tab7: HR: If any of our staff meet any expenses or raise any invoice, company has to Pay/Reimburse. Therefore, we have to define HR Expense Reimbursement Payment to Office/Payment to Home Method As Instructed Payable Options: Setup>Options>Payable Options Primary Account Method: Accrual: Provisional Entry Cash: Direct cash payment to particular account Secondary Account Method: Cash: Cash Account (Payment Invoice) None: Just Accrual only and not for payment Automatic Offset Method: Adjusting expenses to sub departments or distributing to sub departments ORACLE FINANCIALS

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Page 78 of 234 (Making Cr. Entry to 0 and distributing) None Balancing Account

None: No Distribution Balancing: If it enabled, the particular payable amount is distribute department accounts
01-000-2210 =$10000 (Invoice Header) 01-110-7420 =$5000 (Dr.) 01-120-7420 =$5000 (Dr.) 01-110-2210 =$5000 (Cr.) 01-120-2210 =$5000 (Cr.) Account: Just generate distributing entries only 01-110-2210 =$5000 (Cr.) 01-120-2210 =$5000 (Cr.)

(Prevent Pre-payment: Do not want to make advance payment) Transfer to General Ledger: (Interface) Transactions In Detail It will transfer those payable transactions to GL with full details Account Date Transferring data based on accounting date Account Period Transferring data based on accounting period Transfer Report Book All other reports also transfer to GL (Like Currency, etc.) Submits Journal Import Ledger posting in GL Allow override It can allow override permission in GL parameters while GL posting Currency: Multiple Various Currency Exchange Rate Entry It can generate exchange fluctuation entry Calculation user exchange rate If its enabling, we have to define exchange rate type ORACLE FINANCIALS

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Page 79 of 234 Type User/Corporate/Spot/User Define/EMU European Monetary User Our Invoice value: AUD 100000 Received = USD 50000 0.5 USD = 1 AUD Therefore, AUD 100000 x 0.5 = USD 50000 We can change the currency user type as required In GL Account
Realization gain = 01-110-7842 Realization loss = 01-740-7844 Realization Round = 01-740-7820

Tab5: Supplier: Invoice Tolerances: Pay Group Just create a pay group for making payment of more invoices against your particular supplier Invoice currency Term Date Basis Based on Requirement (System Date/Goods Receive Date/Invoice Received Date) Pay Date Due/Discount Tax Report If we want submit report to our government, enable it Tab6: Invoice: User Invoice Approval Workflow That invoice go to particular editor/ Worker for checking purpose and approval purpose. Because, he only completed that work and invoice raised against his work only. Allow Force Approval Need not send invoice to workflow people. (Invoice Raiser or Director can approve the invoice) Require Validation It will check the calculations, tax codes, etc. Then only, it will allow making payment Adjustment to Paid After making payment ORACLE FINANCIALS

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Page 80 of 234 Re-calculation Can recalculate the entire thing Auto Create Freight Define freight account. It will distribute the freight amount to one department (Cost Center) Confirm Date If date is not in invoice, system will take present date as invoice. Allows Online Validation It will validate the invoice online Allow document calculation override That invoice can be override
GL Date Basis For Invoice System Date Good Received Date Invoice Date Payment Advance Payment As required Build pre-pay Account should be defined in financial option

1. Pay Group: Setups>Lookups>Purchasing Type: PA% GR% (Query & F11) pay group Code: KR PAY GROUP (Create) From: 01-APR-2006 (Create) Access Level: User

Access Level: User User can create Extensible User can modify the existing pay group System User cannot modify the existing pay group 2. Vendor Type: (Supplier Type) Setup>Lookups>Purchasing Type: VEN%TY% (Query & Control F11) Code: KR SUPPLIER TYPE (Create) ORACLE FINANCIALS Access Level: User

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Page 81 of 234 3. Distribution Sets: Setup>Invoice>Distribution Sets Full Distribution: On % Basis (We can change this distribution as require) Type: Full

Name: KR FULL DISTRIBUTION Num


1 2

%
40 60

Account
33-110-7450-0000-000 (KR Company Telephone Expenses) for cash division 33-120-7450-0000-000 (KR Company Telephone Expenses) for Accounts division

Skeleton Distribution: Full amount can be distribute for one department/At invoice workbench, we can distribute the amount manually Type: Skeleton

Name: KR SKELETON DISTRIBUTION Num


1 2

%
0 0

Account
33-110-7450-0000-000 (KR Company Telephone Expenses) 33-120-7450-0000-000 (KR Company Telephone Expenses)

3. Payment Terms:
Setup>Invoice>Payment>Terms KR IMMEDIATE PAY: % Due 100 %; Days 0 (Save it) KR CREDIT DAYS PAY: % Due 100 %; Days 30 First Document 5% & 10 days (If we paid within 10 days, 5% is discount) Second Discount 10 % & 20 days (If we paid within 20 days, 10% discount) Save. KR FIXED DATE PAY: %Due 100%, Fixed Date 30 MAY-2006 KR % BASIS PAY: %Due 70%, Days 10 (Release 70% after 10 days) %Due 30 %, Days 20 (Release 30 % after 20 days) KR PROXIMA PAY: % Due 100%; Day of month 25; Months Ahead 0

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Page 82 of 234
(Invoice 10.04.06; If month ahead is 0 -25th April is due date) (Invoice 10.04.06; If month ahead is 1 -25th May is due date) KR AMOUNT BASIS PAY: Amount 5000; Days 0 (Release First 5000 immediate) Amount 10000; Days 5 (Release next 10000 after 5D/5th day) Amount 0; Days 10 (Release Balance after 10 Days 10th Day) (Add): KR Installment see notes.

KR SPECIAL CAL PAY: (Before creating this payment term, define special calendar) Setup>Calendar>Special Calendar Type of Calendar: Payment Terms Name: KR SPECIAL CAL Periods per Year: 4 (4 Quarter in a year)
P1 P2 P3 P4 2006 2006 2006 2006 1 2 3 4 01-APR-06 01-JUL-06 01-Oct-06 01-JAN-07 30-JUN-06 30-SEP-0 31-DEC-06 31-MAR-07 15-JUL-06 15-OCT-06 15-JAN-07 15-APR-07

Now, Name: KR SPECIAL CAL PAY; % Due 100; Calendar: KR SPECIAL CAL Save it 4. Supplier: (Creditors/Vendors) Supplier>Entry Supplier Name: KR Supplier Taxpayer ID & Tax Registration Number: When required Inactive on: Fix the closing period for particular supplier Alternate Name: Applicable only for Japanese Customer

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Page 83 of 234 14tabs: I. General Parent Supplier No: If Applicable (If subsidiary/franchise of any present)

Customer Number: For our tracking purpose -> No. allotted by supplier as his supplier II. Classification Type: KR Supplier (Attach) (created in lookups purchasing)

One Time: For one time purpose SIC: Standard Industry Code III. Accounting: In single account, we can have multiple set-of-books IV. Control: Invoice Amount Limit: If required for particular supplier Invoice Match Option: Purchase order/Receipt HolKRg invoice based on above match: Hold all /Hold unmatched/Hold un-validated invoice Payment Hold Reason: If hold the invoice, holKRg reason should be defined V. Payment: Terms: KR Immediate Pay (Attach as required) Pay Group: KR Pay Group (Attach) Invoice & Payment Currency: USD Payment Priority: 99 (Ninety nine means this supplier is not an urgent to make payment) Term Date Basis: Invoice/Goods Received/Invoice Received/System (As required) Pay Date Basis: Due/Discount (Due in normal) Payment Method: Check/Clearing/Electronic/Wore (As required) Always Take Discount: If it is enabled, all the invoices are eligible for avail discount Exclude Freight from Discount: Availing discount on value of goods only exclude freight

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Page 84 of 234 Allow Interest Invoice: It will calculate interest on % basis of delayed payment/defined Pay Alone: If it is enabled, that invoice can be paid alone and it will not include payment batches VI. Bank Accounts: Supplier bank account and branch details for making electronic payments VII.EDI: Electronic Data Processing Its applicable when we use any particular gateway of payment VIII. Invoice Tax: Entering Supplier invoice standard tax code Automatic Calculation: For particular customer Calculation level: Header/Tax code/Line (Enable Allow calculation override) Rounding Rule: Nearest/Up/Down (Enable Distribution amounts includes tax) IX. WithholKRg Tax: (TDS) If its enabled, the TDS is applicable for all the invoices of particular customer WithholKRg Tax Group: Attach your tax group X. Tax Reporting: For tax reporting purpose

XI. Purchasing: Supplier goods location and billing locations details Purchase order hold and holKRg reason and shipping details XII. Receiving: Goods receiving location, approval and receipt details XIII. Supplier Sites: (Bottom of supplier window) For senKRg PO to one site ORACLE FINANCIALS

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Page 85 of 234 For senKRg Invoices to another site For senKRg payment to another site for one supplier IX. Supplier Site: KR Site I (Create) Primary Pay: Enable (Whenever transact this supplier, this site will be primary and it will automatically select all terms and pay group) After all the above steps, we can enter an invoice. Invoice: Invoices>Entry>Invoices Standard KR Supplier 01-APR-06 (Attach) Here, we can change following items: If we assign defined items in Supplier window, it will display automatically while raising invoice Payment Terms: As required Distribution Sets: Full Distribution /Skeleton Distribution Manually enter the values in Sets After enter the invoice details, the following actions to be taken for booking Actions Validate Approval Create Accounting Invoice Book Entry:
Charge 4000 Charge 6000 Liability (33-110-7450-0000-000) (33-120-7450-0000-000) 10000 (33-000-2210-0000-000)

KR INV01

10,000

If distribution is not allocated, the invoice will be hold For making the new invoice with the existing record: Edit Duplicate Record above In that we can change the data as required Split Schedule in Invoice: Scheduled Payments in Invoice Window: The invoice gross amount can be changed and click split schedule ORACLE FINANCIALS

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Page 86 of 234 The remaining amount goes to next line and we can change the date for the same invoice. Freight Amount: (IncluKRg Invoice) Enter an invoice Rs.10000 Remove: Distribution Set (Compulsory) Folder Show Field: Create Freight Distribution against show field: Freight Amount After entering the invoice data. Click Distribution: Define freight distribution account and click allocate to prorate the freight amount to departments The balance invoice amount can be distributed to departments as required Validate Approve - Create Accounting
Item Freight Item 8000 2000 (33-110-7450-0000-000) (33-110-7220-0000-000) 10000 (33-000-2210-0000-000)

Automatic Create Freight Distribution: In Payable window Invoice Enable (Freight incluKRg invoice (33-110-7220-0000-000) (Now, we can book an invoice in invoice workbench and Folder show field Create and enter the freight amount. It will automatically generate freight distributions to departments)

Debit Memo & Credit Memo: Debit Memo Purchaser/Receiver sent to Seller/Supplier (To Reduce the supplier balance) Credit Memo Seller/Supplier send to Purchaser/Receiver (--------------------------do------------------------) (Return goods, Damage, Excess Goods) 4 Ways to Create: 1. Manually ORACLE FINANCIALS

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Page 87 of 234 2. Distribution Set 3. Matching it with an invoice 4. Matching it to a specific distribution line Invoices>Entry>Invoices The invoice booked for the value of Rs.10000 KR INV11 Now, Return the goods to supplier for the value of Rs.1500 (Purchase Returns) Therefore, raise a debit memo to supplier 1. Manually Remove Distribution Debit Memo KR Supplier 01-APR-06 (Attach) No Distribution Validate Create Accounting Entry: Charge 1500 (33-000-7450-0000-000 Cr.) Liability 1500 (33-000-2210-0000-000 Dr.) KR DM07 (-1500)

2. Distribution Set Debit Memo KR Supplier 01-APR-06 (Attach) KR Full Distribution Validate Create Accounting Entry: Charge 1500 (33-110-7450-0000-000 Cr.) Charge 500 (33-110-7450-0000-000 Cr.) KR DM08 (-1500)

Liability 1500 (33-000-2210-0000-000 Dr.) We can see the balance amount for that particular supplier of entered a debit memo. Here we have not matched with an invoice and just see the supplier balance after debit memo

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Page 88 of 234 3. Matching with an invoice Invoice No: KRINV 12 Amount: Rs.10000 Distribution: KR FULL DISTRIBUTION Validate Debit Memo No: KR DM 08 Amount: (-1500) Distribution: KR FULL DISTRIBUTION Validate After enter the above debit memo, Click Match with Invoice After Invoice: KR INV 12 Match: Enable and enter the amount (-1500) Match it Revalidate Approve Create Accounting Charge 6000 Charge 4000 (33-110-7450-0000-000 Dr.) (33-120-7450-0000-000 Dr.)

Debit Memo 1500 (33-000-7450-0000-000 Cr.) Liability 8500 (33-000-2210-0000-000 Cr.)

Invoice Detail: View Find: Attach KR Supplier & KR INV 12 Click: Calculate Balance Sheet Calculate Invoices Result: Invoice Amount 10000 Debit memo 1500 Un-paid amount 8500 4. Matching it to a Specific Distribution Line After match the debit memo with particular invoice, we can distribute the debit memo amount in that match window itself Click: Distribute (Set the allocations) ORACLE FINANCIALS

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Page 89 of 234 Then Click Match Validate in invoice window Create Accounting Entry:
Charge 6000 Charge 4000 Debit Memo Debit Memo Liability 1500 500 (33-110-7450-0000-000 Dr.) (33-120-7450-0000-000 Dr.) (33-110-7450-0000-000 Cr.) (33-120-7450-0000-000 Cr.) 8500 (33-000-2210-0000-000 Cr.)

This is what debit memo and credit memo functions. If any of this allocation is not correct, that invoice will be hold. Hold and Release: Create Invoice No Holds Validate Yes No Hold

System Hold Manual Hold Validated Rectify Error No Manually Release

Status

Errors Rectified Submit validation Invoice 1 1 Many 1 Many Many Hold Release Invoice Release Reason Invoice quick relax reason Hold quick relax reason

Re for

Create a Hold Reasons: Setup>Invoice>Hold & Release Names ORACLE FINANCIALS

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Page 90 of 234
1. Name: KR Dispute with Supplier Type: Invoice hold reason (If Invoice Hold Reason is required)

Enable Accounting & Manual Release

1A. Name: KR Disputed Resolved Type: Invoice release reason 2. Name: KR Quality to be checked Type: Invoice hold reason (If Invoice Hold Reason is required)

Enable Accounting & Manual Release

2A. Name: KR Quality Checked Type: Invoice quick release reason 3. Name: KR ALL Releases (Dont Enable)

Type: Hold quick release reason

1. One Invoice One Hold: Invoice: KR INV 14 Distribution: KR SKELETON (Manually enter amount in distribution window) Click: Hold & Fix a hold Validate Result: Needs Revalidation Click: Hold & Fix a release Once release the hold, it will validate automatically Create Accounting 2. One Invoice Many Hold: Invoice: KR INV 14 Distribution: KR SKELETON (Manually enter amount in distribution window) Click: Hold & Fix 2 holds Validate Result: Needs Revalidation Click: Hold & If release reason is same, press shift and block 2 holds and fixes a release ORACLE FINANCIALS

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Page 91 of 234 Once release the hold, it will validate automatically Create Accounting 3. Many Invoices Many Hold: Invoice: KR INV 15 & KR INV 16 Distribution: As Required Click: Hold & Fix a multiple holds for both the invoices Validate Result: Needs Revalidation for both the invoices Block both the invoices Click: Action 2 Release: All & KR Release All OK It will release the both the invoices and validated automatically Create Accounting 4. Distribution Variance Hold: Invoice: KR INV 21 Amount: Rs.10000 Distribution: KR Skeleton In Distribution: Distribute the values 8000 to 110 and 1500 to 120 Validate Result: Needs Revalidation (Reason: Distributed amounts are not equal and it is varied) Result in Hold Window: Distribution Variance Hold In Distribution: Make distribute the amount correctly Validate Now, Result in Hold Window: Variance Corrected Create Accounting Mixed Invoice: Invoice Value: Rs.10000 (Actual Goods) Damages: (-3000) Required Additional: +1000 ORACLE FINANCIALS

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Page 92 of 234 Therefore Actual Damage: (-2000) only For our knowledge Create an invoice: KR INV 24 for Rs.10000 (Actual Goods) Validate Create Mixed Invoice: KR MIX 01 for (-3000) Validate Match with Invoice Select that invoice KR INV 22 Enter (-3000) only Again Match with the same invoice KR INV 22 Enter (+1000) only Therefore, Invoice KR INV 24 = 10000-3000+1000=8000 Quick Invoices: When we want to enter large number of transactions and when it does not require extensive validation and defaulting invoice. Quick: Standard Invoice & Credit Memo only can be entered Both the header and line information enter in single window Dates Header information in header window Dates Line information in distribution window Quick Invoice Payables open interface tables AP Invoice Interface AP Invoice Lines Interface Payable open interface import process Invoice>Entry>Quick Invoice
Batch Name: KR BATCH 1 (Create) Type: Standard Number: Q1 Supplier: KR Supplier (Attach) Amount: Rs.8000 Line 1 2 Type Item Freight Amount 6000 2000 Account KR 110 7150 0000 000 KR 110 7220 0000 000

Match it Match it

Main Table AP Invoice ALL AP Invoice Distribution ALL AP Invoice Schedule - ALL

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Page 93 of 234 Click: Save & Next Type: Credit Memo Number: Q2 Supplier: KR Supplier (Attach) Amount: (-2000) Line 1 Type Item Amount -2000 Account KR 110 7420 0000 000

Click: Create Invoices View Request Completed View Report Go to Quick Invoices Find Status: Processed (Invoice process in KR Batch 1) Go to Invoice Workbench F11 KR Sup% Q1% Control F11 Validate Now, the quick invoices View your invoices Create invoices Purge it. (Delete) Foreign Currency Invoice: In Payable Options Currency Enable: Calculate User Exchange Rate & T Exchange Rate Type: User Invoices>Entry>Invoice Invoice: KR INV 23 Currency: AUD Amount: 10000 Rate Type: User (Automatic) Exchange Rate: 0.5 (Enter User defined from daily newspapers) Validate Create Accounting ORACLE FINANCIALS

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Page 94 of 234 Entry: AUD AUD 0 0 10000 USD USD

Charge 10000 Liability Invoice Batches:

5000 0 0 5000

For setup the invoice batches Edit Preferences Profiles Query: Ap% - Control F11 AP: User Invoice Batch Controls Yes (Make it allow) Existing Responsibility: Payable, however, once again clicks switch responsibility to Payable. Now, we can create multiple invoices in one batch Invoice> Entry> Invoices: Name: KR Batch 01 (Create) Control Count: 3 Amount: 50,000 Currency: USD Terms: KR Immediate (Attach) Pay Group: KR Pay Group (Attach) Click Invoices & Enter 3 Invoices, which is equivalent to Rs.50000. Save and close Then Click Validate 1 in Invoice batch window View Request Status Completed (Normal, view Output) Then, click Create Account in same window View Request Status Completed We have created account entries Go to Invoices Approve and validate (Same window) ORACLE FINANCIALS

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Page 95 of 234 (We can enter various invoices in invoice workbench while using invoice batch control) Recurring Invoices: Create a Special Calendar for Recurring Invoice Setup>Calendar>Special Calendar Name: KR SPL RECURRING Periods: 12 Period Name P1 P2 Year 2006 2006 Sequence 1 1 From Date 01-Apr-06 01-May-06 To Date 30-Apr-06 31-May-06 Type of Calendar: Recurring Invoice (Enable)

Save Invoice Entry: Attach: Pre defined items Template Definition: KR REC 01 Amount: 10000 (Automatically generate full year amount) Change: 10% (Increase every month) Special: 4000 (Particular Month only this amount will be an expense) No of Invoice: 12 (Number of recurring invoices to be created) Click: Create Recurring Invoice Go to Invoice workbench Query F11 Paste that Recurring Journal No Control F11 Validate every month as required (Recurring invoices based on period enKRg) Expensed Reports: The format for the purpose of reimbursement to staff In Payable Options Expense Report ORACLE FINANCIALS

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Page 96 of 234 Enable: Apply Advances & automatically create employee as supplier Template: (Create template for reimbursements) Setup>Invoice>Expense Report Templates Template Name: KR EXPENSE REPORT TEMPLATE
Expense Item Food Expense Category Meals Item type Miscellaneous GL Account 33-000-7690-0000000 33-000-7699-0000000 33-000-7670-0000000

Travel

Air Fare

Miscellaneous

Accommodation

Accommodation

Miscellaneous

(Tax & Internet Expenses Enable if required) Click: All Verified View Request Single Request Name: Expense Report Import Parameters: Batch: KR EXP 01 Summarize Report: No Source: Payables Expense Reports GL Date: 01-JAN-2001 Click: OK View Request Status Completed View Output (Copy: KR EXP 01) In Invoice Workbench Query F11 KR EXP 01% - Control F11 Type: Expense Report (Automatically Generated) Validate Approve Create Account TAX:

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Page 97 of 234 Tax is a charge and pay to government TAX Header Level Distribution Level Always May be inclusive or exclusive of tax component

inclusive of Tax

Tax = Income x Rate/ (100+Rate) Tax = Invoice x Rate/100 Types of Tax: 1. 2. 3. 4. 5. Sales Tax Use Tax User defined Tax WithholKRg tax Offset Tax

1. Sales Tax Setup Tax Codes Tax Code: KR Tax Code Tax Type: Sales Rate: 10 From: 01-Apr-06 GL Account: 33-000-7710-0000-000 (Sales) Attach this tax code in supplier Supplier>Entry Query your supplier KR Supplier In Sites Invoice Attach KR Tax Code and Disable Use offset taxes & distribution amount includes tax Save ORACLE FINANCIALS

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Page 98 of 234 Enter an invoice (Manual: In Payable Invoice Tax Disable Amount Tax Cal)

Invoice>Entry>Invoice Invoice: KR INV 25 Amount: 11000 (Based on Tax enter this invoice value) In Tax Code: KR Tax Code & Header (Automatically Generated) Tax: 1000 (Enter Manually) (11000 x 10/110) Validate Create Accounting Entry: Charge 10000 1000 11000 (Automatic: Payable Invoice Tax Enable Automatic Tax & Head)

Non recoverable tax Liability Enter an invoice

Invoice>Entry>Invoice Invoice: KR INV 26 Amount: 11000 In Tax Code: KR Tax Code & Header (Automatically Generated) Tax: 1000 (Enter Manually) (11000 x 10/110) Validate Create Accounting Entry: Charge 10000 1000 11000 (Automatic: Payable Invoice Tax Enable Automatic Tax &Line) (Supplier Sites Invoice tax Level: Line & Enable: Disable

Non recoverable tax Liability Enter an invoice

Invoice>Entry>Invoice Disl) Invoice: KR INV 27 ORACLE FINANCIALS

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Page 99 of 234 Amount: 100000 Click Distribution Attach KR Tax Code and Rate in each line Click Calculate Tax Rs.10000 Tax will be calculated Save it Go to invoice bench Change the value as Rs.110000 Save it Validate Create Accounting Entry: Charge110 Charge120 40000 60000 10000

Non-recoverable tax Liability

110000

(Automatic: Payable Invoice Tax Enable Auto. Tax & Line & Enable Dist Incl. Tax) (Supplier: Sites Invoice Tax Level: Line & Enable; Enable - Dist Incl. Tax) Entry: Charge110 Charge120 40000 60000

Non-recoverable tax110 4000 Non-recoverable tax120 6000 Liability 110000

2. Use Tax: (Use Tax Liability Report) We are purchasing goods from unregistered supplier. So, we should calculate tax for our purpose and remit in to go government. In this tax, system will not calculate tax and we need to run a report. Setup tax codes: SETUP > TAX > CODES Tax code: KR use code Tax type: use Rate: 10 ORACLE FINANCIALS

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Page 100 of 234 From: 01- Apr-06 GL account: 33-000-2520-0000-000 (Use) Attach this tax code in supplier. SUPPLIER > LINE Query your supplier KR Supplier In sites Invoice tax Attach KR Use code and Save. Enter an invoice INVOICE > ENTRY >INVOICE Invoice: KR INV 28 Amount: 8000 In Distribution: Click tax Tax will not be calculated.

Setup TAX Groups: Group Code: KR TAX GROUP (Create) Disable: Self service users Rates: KR Service Tax & KR Tax Rates automatically updated. Save it. In KR Supplier site Invoice Tax Attach KR TAX Group & Disable offset taxes Create an invoice Inv no: KR INV 51 Value: 10000 Tax: KR Tax Group (Automatic) Click Distribution Attach KR TAX GROUP Calculate Tax Tax will be calculated Go to invoice bench Change the invoice value validate create accounting
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Input & enabled Ok

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Page 101 of 234

Charge Sales Tax Service Tax Liability

10000 1000 10 11010

Recoverable Tax: In financial Options Enable recoverable tax Default Rate: 3(Just for default) In Tax code Enter Recovery Rates KR Service Tax 2(Recovery Rates) Save Enter an invoice for 10000 In distribution Attach KR Service Tax Click Distribution Non-Recoverable 999 Recoverable 1 Change the value in invoice bench, which is equivalent to distribution total Validate Create Accounting Entry; Charge 10000 1000 1 11000

Nonrecoverable Recoverable Liability

Recovery Rule: (Instead of Creating Recovery Rates) Tax Recovery rules 1.Supplier classification 2.Account Specific Setup TAX Recovery Rule; Name: KR Tax Recovery rule
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Page 102 of 234

Account: 33-110-7420-0000-000

&

33-130-7420-0000-000

Rate: 3 %( Or we can take default value) Condition: Supplier Classification Value: KR Supplier type Save

Setup Query TAX: Query our Tax KR Service Tax delete old Recovery Rate Attach KR Tax Recovery Rule Save In Supplier site Invoice Tax Attach KR Service Tax which is reflected with Tax recovery Rule Save Now, Enter an invoice for 10000 In Distribution calculate Tax (Tax codes automatically selected) Validate Create Accounting TAX Defaults and Rules: In payable Tax Default Codes Set hierarchy for everything Template 1 PO for matched invoices 2 Invoice Header 3 Supplier site 4 Result: When we enter an invoice, the tax default hierarchy rules will be reflected for calculating tax. WithholKRg Tax: (TDS) 1. Flat Rate (With Hold)

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Page 103 of 234

In Payable options WithholKRg tax Enable: USE WH tax & Disable: Manual withholKRg) Setup Tax Codes: Code: KR WH Flat Type: WithholKRg Tax Account: 33-000-1332-0000-000 (WH) Save In WithholKRg Tax Details: Rate Structure: Flat Tax Authority: KR Tax Authority Type: Standard Rate: 10 Save In KR Supplier Site WithholKRg Tax Enable: WithholKRg Tax WH Tax Group: KR WH Flat

In KR Supplier Site WithholKRg Tax Enable: WithholKRg Tax WH Tax Group: KR WH Flat Save (Remove all tax codes in invoice option of supplier and supplier site) Enter an withholKRg Invoice: KR INV 59 Type: WithholKRg Supplier: KR Supplier Amount: 8000 Distribution: As required
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Page 104 of 234

Folder Show fields With % - Attach: WithholKRg tax group After attached WH tax group from folder our KR WH Flat automatically attached

Validate (Dont calculate tax in distribution Set) After validation. The tax will be automatically calculated Tax: Rs.8/- and displayed in distribution Create Accounting Entry: Charge: 10000 Tax Liability 8 9992

Copy the invoice number In invoice workbench Query In Description - %KR INV 59% - Control F11 Now, the system will show you the WH invoice Because this is automatic withholKRg tax calculation invoice Manual WithholKRg Tax Calculation: In payable option WithholKRg Tax Enable: Manual WH tax calculation & attach KR WH FL Enter an withholKRg invoice Remove: Distribution &Tax codes In Distribution, 1. Enter an invoice KR 60 and allocation one account = 10000 000) 2. WithholKRg tax = (-1000) Save Validate Create Account Entry: Charge: 10000 Tax: 1000 J. Sureshraja M.com., MBA., CA (f)., (33-000-7420-0000-

(33-000-1332-0000-000) Tax code: KR WH FLAT

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Page 105 of 234

Liability

11000

This is what calculating withholKRg tax manually Copy the invoice number In invoice workbench Query In Description - %KR 60% - Control F11 Now, the system will not show the invoice Because this is manual withholKRg tax calculation 2. Period Basis (With Hold) In payable options WithholKRg tax Enable: Use WH tax & Allow manual if required, For this create special calendar Setup Calendar Special: Name: KR WH Calendar Period: 4
Name P1 P2 P3 P4 Year 2006 2006 2006 2006 Sequence 1 2 3 4 From Date 01-APR-06 01-JUL-06 01-OCT-06 01-JAN-07 To Date 30-JUN-06 30-SEP-06 30-DEC-06 31-MAR-07

Type of calendar: WithholKRg Tax

Setup TAX Codes: Code: KR WH Period Type: WithholKRg Tax Account: 33-000-1332-0000-000 (WH) Save In WithholKRg tax details: Rate structure: Period Limit Tax Authority : KR Tax Authority Calendar: KR WH Cal Period Limit: 10000
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Page 106 of 234

Type: Standard Rate: 10 Save In supplier & Supplier Site - Remove old one and attach new KR WH Period. In payable enable automatic WH tax calculation and remove manual one as required. Create WithholKRg Invoice No: KR INV 70 90000 Distribution: As required Folder Show Fields With% -Attach: WithholKRg tax group After attached WH tax group from folder our KR WH Flat automatically attached If WithholKRg tax calculation is automatic, need not calculate tax in distribution set Validate Create Accounting WithholKRg Tax: 9000/-(90000*10%) Then create a new WithholKRg tax invoice no: KR INV 71 80000 Distribution: As required Folder Show Fields With% - Attach: WithholKRg tax group After attached WH tax group from folder our KR WH Flat automatically attached If WithholKRg tax calculation is automatic, need not calculate tax in distribution set Validate Create Accounting WithholKRg Tax: 1000/- only Because Limit 10000 only (9000 already utilized) 3. Amount Range (With Hold) In payable option WithholKRg Tax Enable (Use WH tax & Disable Manual Tax Calculation) Amount Range

Gross Amount (Invoice)

Withheld Amount (Tax)

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Per Invoice

Per period

Per invoice

Per Period

Per Invoice: Each tax slab is applicable one for each invoice. Per Period: Each tax slab is applicable once for each period irrespective of the number of invoices Tax slab: 0 to 1000 1000 to 2000 >2000 1% 1.5% 2%

3A, Gross Amount: (Invoice value) Setup Tax codes: Tax code: KR GAPI (Gross Amount Per Invoice) & Type: WithholKRg Account: 33-000-1332-0000-000 In WithholKRg tax details: Rate Structure: Amount Ranges Tax Authority: KR Tax Authority Amount Basis: Gross Amount Period Basis: Invoice Amount Ranges
Type Std Std Std From 0 1000 2000 To 1000 2000 Rate% 1 1.5 2

KR GAPD (Gross Amount Period)

&

Period

Calender: KR WH CAL

Save. In KR Supplier & sites Attach KR GAPI Save


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Page 108 of 234

Create WithholKRg Invoice No: KR INV 71 50000(GAPI Per Invoice) Distribution: As Required Folder Show Fields With% - Attach: WithholKRg tax group After attached WH tax group from folder our KR GAPI automatically attached If WithholKRg tax calculation is automatic, need not calculate tax in distribution set Validate With held amount: Rs.985 I Distribution Set:
WH Tax 10 (For First 1000 1%) WH Tax 15 (For Next 1000 1.5%) WH Tax 960(Balance 48000 2%)

Total Rs.985 Create Account Note: This is Gross Amount per invoice based. Therefore, if we want to create a new WH GAPI invoice, the same and all tax slabs will be applied. Create WithholKRg Invoice no: KR INV 72 50000 (GAPD Period) Distribution: As required Folder Show Fields With% - Attach: WithholKRg tax group After attached WH tax group from folder Our KR GAPD automatically attached if this selected in supplier window. If WithholKRg tax calculation is automatic, need not calculate tax in distribution set Validate With held amount: Rs.985 In Distribution Set: WH Tax 10 (For First 1000 1%) WH TAX 15 (For Next 1000 1.5%) WH Tax 960(Balance 48000 2%)
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Page 109 of 234

Total Rs.985 Force Approval Create account Note: This is Gross Amount Period Based. Therefore, If we want to create a new WH GAPD invoice, the last slab(Above 2000 2%) will be applied. Because, we have already utilized first two slabs for fist invoice. New Invoice for Rs.60000/However, the WH tax = Rs.1200/-(Directly go to 3rd slab 60000*2%) (3B). With Held Amount: (Tax value) Reverse mode of WithholKRg Gross Amount Setup Tax Codes: Tax Code: KR WHPI (With Held Amount per Invoice) & KR WHPD (With Held Amount Period) Type: WithholKRg Account: 33-000-1332-0000-000 In withholKRg tax details, As like 3A In KR Supplier & supplier Sites Attach KR WHPI/ KR WHPD Here, we know the tax amount; Based on the tax amount we fine invoice value Invoice Value: 300,000(Assume) WHPI Tax
1000 1000 2667 4,667 100,000 66,667 133,333 300,000 (100,000/1) (66,667/1.5) (133,333/2) (1X*100000/100) (1.5*66.667/100) (2*133333/100)

If we want create a new invoice, the same and above tax slabs will be applicable and find out invoice value
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Page 110 of 234

WHPD For First Invoice 4667 300,000

For Second Invoice 6000 300,000

Here all the tax slabs will not be applied, because, this is period base withholKRg tax and final slab only will be applied. WithholKRg Tax Certificates: If we have tax exemption certificate from our local tax authorities, the next tax rate can be used Here, we already define WithholKRg flat rate = 10% Now, we have withholKRg tax certificate Setup tax WithholKRg Certificates: Supplier: KR Supplier (Attach) Tax code: KR WH Flat Number: 12345 (Just for reference) Priority: 1 Rate: 4(Old rate: 10 & New: This 4) In Supplier and Supplier sites Attach this KR WH Flat Create WithholKRg Invoice No: KR INV 75 50000 Distribution: As Required Folder Show Fields With% - Attach: WithholKRg tax group After attached WH tax group from folder our KR WH Flat automatically attached if this selected in supplier window If WithholKRg tax calculation is automatic, need not calculate tax in distribution set Validate With held amount: Rs.2000 (50000*4%) If we have certificates If we dont have tax certificates group, Tax = 5000/- (50000 *10%)
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In this Situation, for particular invoice, we need to calculate 2% with held tax In WithholKRg certificates Click exceptions Tax code: KR WH Flat Invoice No: KR INV 76 Rate: 2 Save Create an invoice: KR INV 76 = Rs.10000/Attach with held tax column and validate Tax: Rs. 200/WithholKRg Tax Group: (Assigning Bank) For multiple tax code like India (Tax 5% Surcharge 10%; cess 2%) Invoice value = Rs.300000/Rank 1 2 3 1 1 2 1 2 2 Tax code KR WH Flat 10% KR WH Flat 9% KR WH Flat 8%

If 1 2 3 is Then

10%on Rs.300000 = 30000(300000*10%) 9% on Rs.270000 = 24300 (300000-30000 = 270000 * 9%)

Then 8% on Rs.245700 = 19656 (300000-30000-24300 = 245700*8%) If 1 1 2 is 10% on Rs.300000 = 30000 (300000*10%)

Then 9% on Rs.300000 = 27000 (300000*9%) Then 8% on Rs.270000 = 21600 (300000-30000) =270000*8%) Create Tax codes: Setup Tax codes: KR WH FL7 KR WH FL8 KR WH FL9
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Now, attach these WithholKRg flat rates in WithholKRg tax groups Setup Tax WithholKRg Groups: Name: KR WH Tax Group (Create) Rank 1 2 3 Tax code KR WH Flat 10 KR WH Flat 9 KR WH Flat 8

Create an invoice for Rs.100000/Show field Folder WithholKRg tax group (Attach: KR WH Tax Group) Distribution: KR Full Distribution as required Validate It will calculate tax Rs.22140/- and in distribution window (IF RANK = 1-2-3)
FL7 FL8 FL9 Total 7000 (100000*7%) 7440 (100000-7000=93000*8%) 7700(100000 7000 = 85560*9%) 22140

It will calculate tax Rs.22650/- and in distribution window (IF RANK = 1-1-3)
FL7 FL8 FL9 Total 7000 (100000*7%) 8000 (100000*8%) 7650(100000 7000 - 8000 = 85000*9%) 22650

Payments: Pre-requisites: Programs: Build payment program (Select invoices based on criteria specified) J. Sureshraja M.com., MBA., CA (f)., Bank Payment Format (Linking programs to payment format) Payable Document (Cheque)

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Flow:

External Laser payment program (Printing a cheque Design the layout) Separate Remittance advice program(List of invoices & forms)

Payment FormatPayable Document Bank Type: Manual (Manual cheque) Quick (for one invoice) Batches (Payment batches) Refund (Only for Debit Memo & Credit Memo)

Through: Invoice work bench Entire payment of particular invoice Payment work bench Partial payments (Schedule the payment of particular invoice)

1.Payment format: Setup Payment Format: Name: KR Payment Format (Create) Payment Method: Check Zero amount payments only - Disable (No Payment/Unpaid Invoice) Group by Due Date Disable (For some Groups) Remittance: No. of invoices 3 (Three invoices will be displayed in our remittance advice) Programs: Build Payments Build Payment Program Format Payments External Laser Format Payments Program Separate Remittance Separate remittance Advice 2. Banks: Setup Payment Banks: Name: KR ABN AMRO BANK (Create)
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Click: Bank Accounts KR Current Account 516425 GL Account: Cash 33-000-1250-0000-000 Cash Clearing 33-000-1250-0000-000 Bank Charges 33-000-7870-0000-000 Bank Error 33-000-7871-0000-000 Receipts 33-000-2215-0000-000 FDP 33-000-2580-0000-000 Click Payable Documents Document Name Disbursement Type
KR CHECK1 KR CHECK2 KR CHECK3 Recorded Recorded Recorded

Payment Format Last used


0 100 200 100 200 300

Last Available

KR Payment KR Payment KR Payment

Disbursement Type: Quick Computer Generated/Combined Manual Recorded In KR Supplier and Supplier site Disable WithholKRg tax and WithholKRg tax code Save Create a standard invoice KR INV 91 = Rs.10000/Validate Create Accounting Action Click: Pay in full Type: Quick Bank Account: KR Bank Account (Attach) Document: KR Check 1 (Attach) Save. Action: Format & Create Accounting
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(Status: Negotiable; Means: Not Void)

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Status: Paid Entry: Liability: Cash clearing: 10000 10000

For Partial Payment: Payment Entry payment Click: Enter/Adjust Invoices Validate. View Request Single Request. Name: Use Tax Liability Report. Parameters: Invoice Validated Supplier 01/Apr/06 No Submit View Report Result: Calculated Tax: Rs.800/However, the calculated tax will not be accounted. Tax authority: SUPPLIER > ENTRY Name: KR Tax Authority (Create) In Classification Type: Tax Authority (Attach) In Payment KR Pay Group (Attach) In Sites: KR Tax Author (Create)

Go to Invoice workbench. Supplier: KR Tax Authority (Attach) Enter that calculated tax here. New Invoice /Old Invoice no: Rs.800/In distribution, enter Rs.800/ORACLE FINANCIALS

33-000-7710-0000-000 J. Sureshraja M.com., MBA., CA (f).,

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(S.T) Validate Create Accounting Entry: Charge: 800 Liability: 800

Now, that tax liability is accounted.

3. Offset Tax: This is for reporting purpose. Paid tax for purchased goods from our supplier = 1000 Add some values for purchased goods and sell to some and payable sales tax = 2000(VAT) Therefore, net payable tax for goods = 1000 only.(Payable 2000 Paid 2000= Net Payable 1000) However, we have paid and report to government. Therefore, we have to create one tax type and offset tax type. SETUP > TAX CODES Tax code: KR VAT TAX Tax type: VAT Rate: 10 From: 01-Apr-06 KR OFF TAX OFFSET (-10) 01-Apr-06 33-000-1333-0000-000

GL Account: 33-000-1330-0000-000 (Vat payable)

(Offset Vat)

Copy KR OFF TAX and paste in offset tax code column of KR VAT TAX Save it.
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In KR Supplier Site Invoice Tax Attach KR VAT TAX & Enable use offset taxes (In Payable Option Invoice Tax Enable Automatic Tax Calculation) Create an invoice KR Supplier Inv 33 10000 KR Full Distribution KR Vat Tax Click Distribution Enter KR VAT TAX & 10% Click Tax Tax automatically calculated and generated offset taxes.

Validate Create Accounting Entry: Charge: Liability: Vat payable: Vat liability: Offset Vat: -1000 Offset vat liability: -1000 10000 10000 1000 1000

4. Service tax: (User Define one) In Payable lookups. SETUP > LOOKUP > F11 TA% TY% -Control F11 Code: Create: KR Service Tax Save.

SETUP > TAX > CODE Tax Code: KR Service Tax Type: Sales
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Rate: 0.1 Account: 33-000-7710-0000-000 (Sales Tax) In Supplier Sites Invoice Tax Attach: KR Service Tax & Disable offset taxes. Enter an invoice: Inv. No: KR Inv 44 Tax: KR Service tax (Automatic) In distribution Enter service tax and rates click tax tax will be automatically calculated. (In payables & Financials All the distribution sets should be in our company. Then only, tax entry at header for automatic tax selection in distribution) Go back to invoice bench and change the invoice value, which is equivalent to distribution total. Validate Create Accounting Entry: Charge: 10000 Service tax: Liability: 10 10010

Tax Groups: (For calculating multiple taxes) SETUP > TAX > GROUP Group Code: KR TAX GROUP (Create) Input & Enable Ok Disable: Self service users Rates: KR Service tax & KR tax Rates automatically updated. Save it. In KR Supplier Site Invoice Tax Attach KR TAX GROUP & Disable offset taxes.
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Create an invoice. Inv no. KR INV 51 Value: 10000 Tax: KR Tax Group (Automatic) Click distribution Attach KR TAX GROUP Calculate tax tax will be calculated. Go to invoice bench change the invoice value validate create accounting. Charge: Sales Tax: Service Tax: Liability: Recoverable tax: In financial options Enable recoverable tax Default rate:3 (Just for default) In tax codes Enter recovery rates KR Service tax 2 (Recovery rate) Save. 10000 1000 10 11010

Enter an invoice for 10000 In distribution Attach KR Service Tax Click Distribution Non Recoverable 999 Recoverable 1

Change the value in invoice bench, which is equivalent to distribution total. Validate Create Accounting Entry: Charge: 10000 J. Sureshraja M.com., MBA., CA (f).,

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Non Recoverable: Recoverable: Liability:

1000 1 11000

Recovery rule: (Instead of creating recovery rates) Tax recovery rules 1. Supplier classification 2. Account specific SETUP > Name: KR Tax Recovery Rule Account: 33-110-7420-0000-000 & 33-130-7420-0000-000 Rate: 3% (Or we can take default value) Condition: Supplier Classification Value: KR Supplier Type Save. SETUP > TAX > CODES Query our tax KR service tax Delete old recovery rate Attach KR tax recovery rule. Save. In Supplier Sites Invoice Tax Attach: KR Service Tax which is reflected with tax recovery rule. Save. (If we want this tax recovery rule in distribution set automatically, the defined distribution set are all in our company only) Now, enter an invoice for 10000 In distribution Calculate tax. (Tax codes automatically selected) Validate Create accounting. Tax defaults and rules:
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In payable Tax default codes Set hierarchy for everything Template -1 PO for matched invoices 2 Invoice header 3 Supplier site 4 Result: When we enter an invoice, the tax default hierarchy rules will be reflected for calculating tax. WithholKRg tax (TDS) 1. Flat rate (With hold) In payable options WithholKRg tax Enable: Use WH tax & Disable: Manual withholKRg) SETUP > TAX > CODES Code: KR WH flat Type: WithholKRg tax Account: 33-000-1332-0000-000 (WH) Save. In withholKRg tax details, Rate structure: Flat Tax Authority: KR Tax Authority Type: Standard Rate: 10 Save.
In KR Supplier-withholKRg tax: Enable: withholKRg Tax WH Tax Group: KR WH Flat In KR Supplier Site-withholKRg Tax Enable: withholKRg tax WH tax group: KR WH flat ORACLE FINANCIALS

J. Sureshraja M.com., MBA., CA (f).,

Page 122 of 234 Save (Remove all tax codes in invoice option of supplier and supplier site) Enter an withholKRg invoice: KR INV 59 Type: withholKRg Supplier: KR supplier Amount: 8000 Distribution: As required Folder show fields with%-attach: WithholKRg tax group

After attached WH tax group from folder-our KR WH flat automatically attached Validate (dont calculate tax in distribution set) After validation, the tax will be automatically calculated-Tax: Rs.8/- and displayed in distribution Create accounting Entry: Charge10000 Tax 8 9992

Liability

Copy the invoice number In invoice workbench-Query in description-%KR INV 59%-Control F11 Now, the system will show you the WH invoice because this is automatic WithholKRg tax calculation invoice. Manual withholKRg Tax calculation In payable option withholKRg tax-enable: manual WH tax calculation & attach KR WH FL Enter a WithholKRg invoice Remove: distribution & tax codes In distribution 1. Enter an invoice KR 60 and allocation one account=10000 (33-000-7420-0000-000)

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Page 123 of 234 2. WithholKRg tax=(-1000) (33-000-1332-0000-000)Tax code: KR WH FLAT Save-validate-create account Entry: Charge: 10000 Tax: 1000 Liability 11000 This is what calculating withholKRg tax manually Copy the invoice number In invoice work bench-query in description-%KR60%-control F11 Now ,the system will not show the invoice-because this manual WithholKRg tax calculation AP 2. Period Basis(with hold) In payable option withholKRg tax enable: use WH tax & allow manual if required For this create special calendar SETUP: CALENDAR: SPECIAL Name: KR WH Calendar Period:4 type of calendar: withholKRg tax

name P1 P2 P3 P4

year 2006 2006 2006 2006

sequence 1 2 3 4

from date 01-apr-06 01-jul-06 01-oct-06 01-jan-07

to date 30-jun-06 30-sep-06 30-dec-06 31-mar-07

SETUP-TAX-CODES Code: KR WH Period ORACLE FINANCIALS

J. Sureshraja M.com., MBA., CA (f).,

Page 124 of 234 Type: WithholKRg tax Accounting: 33-000-1332-0000-000(WH) Save In withholKRg tax details Rate structure: Period limit Tax authority: KR Tax authority Calendar: KR WH Cal Period limit: 10000 Type: standard Rate: 10 Save In supplier & supplier site-Remove old one and attach new KR WH period In payable enable automatic WH tax calculation and remove manual one as required Create WithholKRg invoice no: KR INV 70-90000 Distribution: as required Folder-show fields-with%-attach: WithholKRg tax group After attached WH tax group from folder-our KR WH flat automatically attached If withholKRg tax calculation is automatic, need not calculate tax in distribution set Validate-create accounting WithholKRg tax: 9000/-(90000 * 10%) Then create a new WithholKRg tax invoice no: KR INV 71-80000 Distribution: as required Folder-show fields-with%-attach: WithholKRg tax group After attached WH tax group from folder-our KR WH flat automatically attached If WithholKRg tax calculation is automatic, need not calculate tax in distribution set Validate-create accounting ORACLE FINANCIALS

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Payment Amount: Rs.20101.80 Action: Create Accounting and payment format Entry: Liability Interest Cash clearing 101.80 20101.80 20000

Suppliers merge: At the time of Amalgamation of our supplier companies Created some duplicate (or) wrong supplier

Supplier + supplier merge All Merge all transaction and payment sites to new supplier Unpaid Merge all unpaid transaction to new supplier None Merge only sites to new supplier From Supplier and sites Click: Merge View Request Single Request Program: Supplier Merge Program submit To Supplier and sites

Payment Batches: Criteria: Supplier Name Invoice Batch Pay Group


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Pay date Payment priority Status: Selecting selected BuilKRg Built Modifying Modified RebuilKRg Rebuild Formatting Formatted Confirming Confirmed Cancelled (Before confirming)

Payment entry Payment batches Name: KR payment Batch (create) Selecting your supplier name Select your invoice batch Based on format of supplier (3 invoices for one payment document), it will pay the three invoices for one payable document.

We can select invoices and modify the payable amounts in that window Therefore, payment batch will be considered for selected invoice with one payable document. Invoice Aging Report Invoice status Report: Overdue / Payable invoices (Unpaid report) Set up: Calendar + Aging period Name: KR Aging calendar Active: Enable

Column order days from Days To Column HeaKRg First


1 2 -180 0 1 60 Future payment 60 days payment due

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3 4 Save Submit a single request: Invoice Aging Report Parameters: Supplier name & invoice type Include invoice detail : yes Include site detail : Yes Supplier Name : KR Supplier Aging name : KR Aging cal Submit view status completed view report 61 181 180 450 180 days payment due > More than 181 days payment due

Result : It will show unpaid invoices, current payable invoices, after 60 days payable invoices, after 181 days payable invoices.

Debit memo: Payment Refund is automatically generated. We have received cheque from customer . Therefore, document is manual Entry is reversed Liability Cash clearing 10000(Dr.) 10000 (Cr)

Payables transfer to GL: Submits a single request: Payables transfer to GL Parameter: set of books and periods & journal import & as required J. Sureshraja M.com., MBA., CA (f).,

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Submit view completed

Close the period: If transferred to GL


Conditions: 1. All invoices and payment should be validated and accounted 2. All future dated payments have the status is negotiable 3. All payment batch status should be confirm

However, we have a option to sweep (Skip) to next month for transfer of all unaccounted transactions to next month. After transferring payable to GL (copy the batch from output) switch over to GL Go to journal = Batch: paste the batch% (or) Source: payable & month (Attach) then, Find: Transfer summary List out all transfer transactions Post it

Set up Invoice Payment terms Credit days 30 without discount

% due 100

Days 30

Select: Our Invoice Adjustments: Discount & As Required (Can attach Payment Terms for discount as defined) (While making partial payment amounts manually, it will not consider discount amount)
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Save and Make payment Action: Format and Create Accounting Status: Paid Pre-Payments: Temporary (Can be applied against invoices) Permanent (Cannot be applied against invoices) Status: Un-validated Unpaid Paid Available Fully Applied

Create standard invoice KR INV 96 for Rs 100000/Validate create Account Charge 100000 Liability 100000 Create a pre-payment invoice PRE 01 for Rs 30000/Prepayment Type: Temporary (Automatic) Validate Create Account Prepayment Expense 30000 Liability 30000

Status: Unpaid Action: Pay in Full: format & Create Accounting Status: Available Action: Apply/Un-apply Match this prepayment with KR INV 96 (find this Invoice) J. Sureshraja M.com., MBA., CA (f).,

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Enable: Apply Prepayment invoice amount automatically displayed Click: Apply Status: Fully Applied Query: KR INV 96 Validate Create Accounting Entry: Charge 100000 Prepayment 30000 Liability 70000 Invoice status: Amount: 100000 Paid: 30000(Partial) Unpaid: 70000 Stopping Payment: Stopping payment reasons may be insufficient of funds, disputes with customer, etc. Payments Entry Payments: Query your payment Action: Initiate Stop (For bulk payment step: Shift & Select Payments) Result: Stop Initiated For Release the payment: Action: Release stop Result: Negotiable (Normal) VoiKRg payment: (Canceling Payment) 1. None (Cancel the payment and not the invoice) 2. Hold (Cancel the payment and invoice his hold) Hold invoice has to release once again 3. Cancel (cancel both invoice and payment) None: Cancel the payment only and not the invoice
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Payments Entry Payments: Query your payment Action: Void (None) Result: Voided (In payment window) &Reversed (Payment reversed in invoice work bench) Hold: Cancel the payment and invoice also hold (Hold Reason Quality Dispute/Etc.) Payments Entry Payments: Query your payment Action: void (Hold) result: Voided(In payment window) &Hold(Invoice hold in invoice workbench) Hold: Cancel the both payment and invoice Payments Entry Payments: Query your payment Action: Void (Cancel) Result: Voided (In payment window) &Reversed (Invoice also reversed in invoice workbench) If we want to release these invoice, Action in invoice workbench-Release holds and pay in full Reissue: If any paid document is damaged, we have to reissue that invoice payment through another payable document (cheque) Payments Entry Payments: Query your payment- Action: Reissue Result: The same paid invoice is repaid with another next available check and that damaged invoice payment will be voided Foreign Currency Payment: User Rates
01-APR-06 = 1 AUD = 0.50 USD 02-APR-06 = 1 AUD = 0.49 USD Create an invoice for AUD 100000 @ 0.5 USD (User Rate)

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Now, Invoice value: AUD 100000 & USD 50000 At the time of payment, 1 AUD = 0.49 USD In payment window, enter 0.49 in user rate column

Action: Create Accounting Entry: (USD) Liability Gain 50000

1000 49000

Cash Clearing

(In KR payment format Enable or Change Multiple Currency for making multiple currency payments) Future Dated Payments: Setup Banks
In Bank Query KR Bank Click: Bank Account Payable Document Document Name: KR Check 4 (Add) Disbursement Type: Computer Generated & 300- 400 Future Dated Payment: Allowed (33-000-2580-0000-000) Create standard invoice RS 5000/Validate Create Accounting Pay in full

In payment: Quick KR Current Account KR Check 4 -301-Issued-Give Mature Date (Computer Generated) View Request Single Request Name: Update Mature Future Payment Status Parameters: Attach KR Supplier and sites and matured payment date
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(Status)

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Submit Status: Completed Go to Payment window and Re-query that payment: Document: KR% Status: Negotiable Therefore, this payment will be made on future maturity date Document No: 301 (control F11)

Book Invoice

Payment

Document

Issued

FDP Run Request

Maturity Date Maturity Issued

Run Request Entry: Liability FDP FDP Cash Clearing 5000 5000 5000 5000

Update Maturity

Negotiable

Interest Invoices: In payable option Interest


Enable: Allow Interest Invoices

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Enable: Prorate Across Overdue Invoices Minimum Interest Amount: Rs.50/- (Interest should be minimum Rs 50/- else Rs 0/-) Accounts: 33-000-7820-0000-000 (Interest Expense) Accounts: 33-000-2530-0000-000 (Interest Payable) In KR Supplier Payment Enable: Allow Interest Invoices

Define Interest Rates: Setup Payment -----: Jan to Dec Jan to Dec 05-05 06-06 = 5% = 10%

Now, Interest rates are allowed for 05-05 period and rates are defined Enter an Invoice No: KR INV 111 = Rs 20000/Validate Create Accounting Pay in full In Payment Payment Date: 31-Aug-06 20000*3%=600*62/365=Rs.101.80 (Interest) (1st July to 31st August 62 Days) 01-Jul-06

ORACLE ACCOUNTS RECEIVABLES ORDER TO CASH FLOW:


1. Order management (Create Order) 2. Scheduling 3. Pick release 4. Ship confirm 5. Auto invoice 6. Invoice in AR 7. Receipt ACCOUNTS RECEIVABLE: Effective management of Debtors

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Correct recorKRg for receipts Scheduling the invoices for receipt

BUSINESS FLOW: Customer places the purchase order (Check Credit limit & then inventory limit).

Sales order Send goods along with invoice Yes No 1. Calls, 2. Dunning letters 3. Legal activities.

Receive cash or cheque Deposit. SYSTEM FLOW:


System options Customer profile class Customer standard level Customer address level Customer business level Transactions (Invoice)

Control values It cannot be altered at lower level Defaulting values It can be altered at lower level. KEY FLEX FIELD IN AR: 1. Sales tax locations based flex field (Mandatory) Based on state wise rates of tax. 2. Territory Flex Field (Optional) Based on area wise and sales man wise information. (Flex field modules Fixed Assets, General Ledger, and Accounts Receivable) No flex field in Account Payable. SALES TAX LOCATION BASED FLEX FIELD: (Mandatory) 1. State country city 2. Country city 3. City
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4. Province city 5. Province 6. No validation country KEY FLEX FIELD SEGMENTS: SETUP > FINANCIALS > FLEXFIELDS > KEY > SEGMENTS
Query : Rec% Sales tax % - control F11

State country city (Flex field for location base sales tax calculations for setting up of our own state city country).

1.TAX LOCATIONS AND RATES: STATE COUNTRY CITY SETUP > TAX > LOCATIONS KR state Rate: 5% From: 01- Jan-01 Save. Select: Country KR Country Rate: 3% From: 01- Jan-01 Save. Select: City KR City Rate: 2% From: 01- Jan-01 Save. 2. TAX AUTHORITY: SETUP > TAX > AUTHORITIES
ORACLE FINANCIALS

33-000-2520-0000-000 (Sales Tax & Use Tax Payable)

Attach: KR State (Created)

Attach: KR Country (Created)

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Attach: KR State KR Country KR City Save + Copy. 3. SALES TAX RATES: SETUP > TAX > SALES > TAX RATES Query: Paste that copied tax Authority Tax rates: 5+ 3+2 (Automatic). SETUP > SYSTEM > SYSTEM OPTIONS ACCOUNTING METHOD:
Accrual Due (Provision i.e. Sales Entry) Cash basis Direct revenue. Operating unit: Vision operations (USA). Set of Books Vision operations (Company Department Account Subaccount Product) Finance charge activity: Finance charges (Revenue from debtor if delayed payment of dues) Realized gains account: 01-740-7830-0000-000 (Exchange Fluctuation Gains) Realized losses account: 01-740-7840-0000-000 (Exchange Fluctuation Gains) Tax account: 01-000-4150-0000-000 (Excess receipt goes to this account) Unallocated revenue: 01-000-4150-0000-000 (Excess receipt goes to this account) Cross currency rate type: User / Corporate / Spot Daily / Notional /RBI rates Cross currency Rounding: 01-740-7826-0000-000 (Cross currency Rounding rule) Header Rounding account: 01-740-7827-0000-000 (Conversion Rounding Rule AR) Days per posting cycle 10/20/30/5 (For transfer of journal to GL)

- Query F11

Transfer first 10 days data as 1st batch Transfer next 10 days data as 2nd batch Transfer next 10 days data as 3rd batch Transfer next 10 days data as 4th batch
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(For reducing and save time to process the request of transfer the journals to General Ledger) Transactions and customer: (Invoice Based) Customer Reciprocal: A can pay for B (or) B can pay for A Allow transactions deletion: Allow deleting after transactions entered. But not after transfer to GL Auto invoice This is for an order management. Customer Numbering. Invoice Net Invoice Value Line: Charges / Services / Materials Freight: Freight And Courier Tax: Taxes Miscellaneous: Split amount: 2500 (Number of invoices for reporting) Discount basis: Invoice On Net invoice value Rs. 100/: Line On charges or services or materials whereas not net invoice value. Item Rs. 50/- (Line) Freight Rs.30/Tax Rs.20 (Taxes) Auto cash rule set: Adjusting receipts against continuity of invoices whereas not particular invoice. Sales credit percent limit: For project accounting / For particular invoices Write off limits per receipt: revenue Print remit to address: Print our address and remittance details
ORACLE FINANCIALS

-500

500 Excess Receipt, transfer to

If receive short, just write off

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Collectors: SETUP > COLLECTIONS > COLLECTORS KR Collector (Create) (Employee / External Sales Person / External Agent) Profile classes: CUSTOMERS > PROFILE CLASSES Name: KR Profile (Create) Collector: KR Collector(Attach) Discount grace days: For giving discount for immediate receipts Receipt grace days: For making charges on invoices due to late receipt. Statement: Weekly statement (Cycle) Dunning: Standard (Warning Send letter with certain words for outstanKRg receivables) Profile class amount: As required. Save Update all profiles Credit Profile: Tolerance 10% (If sales is 10,000/- is 11000/- is credit limit) (For everything, we need to define a rule or letter in back end of apps)

Payment terms: SETUP > TRANSACTIONS > PAYMENT TERMS Name: KR Immediate Discount: Lines only Installment option: Allocate tax and freight Relative 100 Due 0 Days J. Sureshraja M.com., MBA., CA (f).,

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Name: KR 30 Days Discount: Lines only Installment option: Allocate tax and freight Relative 100 Due 30 Days 15Days (Before 15 Days receipt)

Discount: 10% Name: KR Installment Discount: Lines only Print lead: 2

Installment option: Allocate tax and freight Relative 50 50 Due 15 30

Name: KR Proxima Discount: Lines only Cut off: 15

Installment option: Allocate tax and freight Day of Month 20 1 Ahead

(Actual due is 20th January; If Ahead is 1; Therefore due is 20th February. If Ahead is 2, due is 20th March. TRANSACTION TYPES: SETUP > TRANSACTIONS > TRANSACTION TYPES Name: KR Invoice Class: Invoice when new invoice enter)
ORACLE FINANCIALS

Open Receivable= Enable (Customer O/s will increase

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Enable: Print, Open, transfer to GL) Enable: Allow Freight Sign: Positive Period: 01- Jan-2001 Transaction status: Closed = Amount collected Open = Amount is penKRg

Post to GL=Enable (Customer O/s will increase and

PenKRg = Data entry operator status (It is always penKRg for DEO) Void = cancelled Open receivable DEO AR Manager Account Manager Not allowed Allowed Allowed Post to GL Not allowed Not allowed Not allowed

Allow over application: Excess receipt of particular invoice, accounted in the same invoice whereas not go to some other account or invoice. Sources: SETUP > TRANSACTIONS > SOURCES
Name: KR Sources Active: Enable Auto batch no: Enable Manual 01-Jan-04 LN 5000

Auto transaction no: Enable LN 8000

If batch is 5001, Auto invoice number starts from 8001 Item:


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SETUP > TRANSACTIONS > ITEMS > DEFINE ITEMS Select: V1 vision operations Items: 000.00000 (KR Item) Display: All

In Invoicing: Enable invoice item and invoice enabled. Customers: CUSTOMER > STANDARD Name: KR Customer Click: Find New This KR Customer is new one and taken in to account. In Classification: KR Profile (Attach) (It will automatically select all items of KR Profile profile transactions) Go to Address: Click New Address: KR Customer site 1(create) City: KR City State: KR State Country: KR Country Postal code: 00000 (Click LOV)
Usage Bill to Ship to Location 10965 10967 10965 (Enter) Bill to location

Transactions: (Enter an invoice) Transactions / Transactions Source: KR Sources Class: Invoice


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Type: KR Invoice Ship to: KR Customer Click: Line Items


Item KR Item Quantity 100 Rate 100 Amount 10000

Save. Click: Complete (In Transaction window). If you want to make correction, click: Incomplete. Entry: Receivable (Client Account) Revenue (Sales Account) (This is defined as auto accounting). Transaction: (Tax & Freight) Source: KR Source Attach: Class Invoice Type: KR Type Ship to KR Customer Line items: KR Item 100*100=Rs.10000/10000 10000

Tax code: Location (5+2+3=10%) = Rs.1000/Click Freight: = Rs.500/Save + complete. Item: 10000; Tax: 1000; Freight: 500; Total: Rs.11500

Invoice Distribution:

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Dr. Revenue Tax Freight Receivable 10000 1000 500 11500 Cr.

Invoice Accounting Entry:


Dr. Receivable To Revenue To Tax To Freight 11500 10000 1000 500 Cr.

Debit memo: It is used to increase the debit balance of customer. Memo lines: Memo lines are defined to charge the customers other than the inventory items. Actual value = 10000 Invoice Raised = 8000 Difference = 2000 (Debit Memo) For debit memo: SETUP > TRANSACTIONS > TRANSACTION TYPE Name: KR Debit memo (Create) Class: Debit Memo Freight: Enable Sign: Positive (+)
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Open & GL Post: Enable Do not print & Open: Select

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Now, new transaction invoice KR Sources Debit memo KR Debit memo Lines KR Item

Transaction/ Transaction

100*100=10000

In transaction window More information option Cross Reference: 8002 Invoice (Select in list of values LOV) Click: Complete. Transacting & Accounting Non Inventory Items: SETUP > TRANSACTIONS > MEMO LINES (Only Freight / Tax / Consultancy Charges can enter) (If we do not want to inventory items, we can use memo lines) Name: KR Freight (Create) Type: Freight (Select) Date: 01- Jan-01 Save. Name: KR Tax (Create) Type: Tax (Select) Date: 01- Jan-01 Save. Name: KR Consultancy (Create) Type: Charges (Select) Date: 01- Jan-01 Save. 1. Create A Debit Memo: (For Freight Only)
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TRANSACTIONS > TRANSACTION KR Source In lines Description = % - KR Freight Then we cannot enter amount in quantity / price / amount. Click: Freight Enter =500/Complete (Freight only accounted and raised as debit memo)

2. Create A Debit Memo: (For Tax Only) TRANSACTIONS > TRANSACTION KR Source In lines Description = % - KR Tax We can enter amount in that window. Click: Tax code Adhoc / Other = 1000/Complete. 3. Create A Debit Memo: (For Consultancy Only) TRANSACTIONS > TRANSACTION KR Source In lines Description = % - KR Consultancy Now, we can enter amount in quantity=1 (Not more than 1) Price = 1000= Consultancy charges =1000(1*1000) Complete. (If we want to enter more than one in this option, we require technical support). Credit memo: It is used to decrease the customer balances. SETUP > TRANSACTIONS > TRANSACTION TYPE. Name: KR Credit memo. Class : Credit Memo Allow Freight: Enable Sign: Negative (-) Date: 01- Jan -01 Save.
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Do not print & Open: Select Tax calculation: Enable Natural: Enable

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Create a credit memo: (Festival discount on account credit memo & not adjust with any invoice). TRANSACTIONS > TRANSACTION Source: KR Source Type: Credit memo In lines: Description Diwali discount = -20000 Complete. (Negative amount only will be accepted when complete the transaction). Copy to invoices: For example Invoice no: KR INV 1 Creating multiple number of invoices such as KR INV 1 Create an inventory invoice no: 8010 for Rs.2000 make it complete. On top action: Copy to Schedule: No. of times 4 No. of Days 0 It will automatically create 4 invoices such as created invoice no: 8010 for Rs.2000 Inv. No. 8011 Rs. 2000/Inv. No. 8012 Rs. 2000/Inv. No. 8013 Rs. 2000/Inv. No. 8014 Rs. 2000/Credit memo adjusting one invoice: Create an invoice no: 8050 for Rs.10000/Complete. Action: Installments status: Open Now, (Decreasing value)
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Action: Credit Attach: KR Credit Memo Credit memo: %40 memo) 4000/or Click: Credit Balance (100% is credit

(Here, we can enter -4000 also) Click: Refresh (Refreshing the invoice)

Net invoice balance = Rs.6000/- only Action: Installments Rs. 6000/- Status: Open If credit memo is (-10000) Action: Installments Rs.0/Status: Closed.

Conclusion of Debit & Credit Memo: (In Oracle Apps) Debit Memo: We can raise debit memo against one invoice and we cannot view the increased amount in that particular invoice. Credit memo: Here we can raise credit memo against one invoice and can view the balance amount of that particular invoice. (Actual invoice value Credit Memo value = Balance Value). Installment invoice: Create an invoice Payment terms: KR Installment Complete. Payment terms automatically generated: 1st 15 Days = Rs. 5000/Next 30 Days = Rs. 5000/- as defined. Credit memo against the above invoice: FIFO / LIFO / PRORATE
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1st installment = Rs. 5000/2nd installment = Rs. 5000/FIFO: (Rs. 5000/- OR 50%) 1st installment = 0 (CLOSED) 2nd installment = 5000 (OPEN) LIFO: (Rs. 5000/- OR 50%) 1st installment = 5000 (OPEN) 2nd installment = 0 (CLOSED) PRORATE: (Rs. 5000/- OR 50%) 1st installment = 2500 (OPEN) 2nd installment = 2500 (OPEN) Deposits & Guarantee: Deposits and guarantee are commitment transaction In case of deposit, we have received money from customer in advance In case of guarantee, it is an oral commitment only. Deposits Advance receipt Guarantee supply invoice & goods against oral guarantee

Then raise an invoice and Send goods. Deposit: SETUP > TRANSACTION > TRANSACTION TYPE Name: KR Deposit (Create) Class: Deposit (Attach) Allow Freight: Enable Sign: Positive(+)
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Invoice type: KR Invoice Date: 01- Jan -01 Save. Allocations: Line, Tax, Freight (Against Deposit Invoice) Enter a deposit invoice: (Advance receipt invoice = Commitment Invoice) Source: KR Source Class: Deposit Type: KR Deposit (Do not click line). Click: Commitment Rs. 200000/- (Description: Deposit invoice) Save. Invoice no is automatically generated = 8019 (Note down) Now, create an invoice no: 8020 Source: KR Source Class: Invoice Type: KR Invoice Commitment: 8019 Line: KR Item 1000*139- Rs. 130000/Make it complete. Value of this invoice 8020 = Rs. 0/ (Reason: Already received advance and adjusted against this invoice). Detail: Invoice 8020 value Rs.130000 is adjusted against deposit invoice 8019. Now, query your deposit invoice 8019 = Detail: Balance Rs.70000 only. Guarantee: SETUP > TRANSACTION > TRANSACTION TYPE.
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Name: KR Guarantee (create) Class: Guarantee (Attach). Allow Freight: Enable Sign: Positive (+) Invoice type: KR Invoice Date: 01- Jan -01 Save. Enter a guarantee invoice: (Oral commitment only and no advance receipts) Source: KR Source Class: Guarantee Type: KR Guarantee (Do not click line). Click: Commitment Rs. 300000/- (Description: Guarantee invoice) Save. Invoice no. is automatically generated = 8024 (Note down). Now, create an invoice no: 8025 Source: KR Source Class: Invoice Type: KR Invoice Commitment: 8024 Line: KR Item 1000*160- Rs. 160000/Make it complete. Value of this invoice 8025 = Rs. 160000/(Reason of 100% Invoice value reflected: Guarantee invoice is made for oral commitment and this invoice 8025 value Rs.160000 is to be received).
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Select: Do not print Select: Open

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However, this invoice 8025 value Rs.160000 is adjusted against guarantee invoice. Now, query your guarantee invoice 8024 = Detail: Balance Rs.140000 only (300000 160000). Therefore, Invoice against deposit invoice value = Rs.0//Invoice against guarantee invoice value = Rs.160000/Deposit Entry Flow Receivable Dr To Unearned Revenue Receivable Dr To Revenue Guarantee Entry Flow Unbilled Receivable Dr To Unearned Revenue Receivable Dr To Revenue

Unearned Revenue To Receivable

Unearned Revenue Dr To Unbilled Receivable

Invoice with rules: Raising and booking invoices based on project completion wise (Phase wise) (Fixed period wise & Variable period wise) 1. Accounting rule: The period is which the revenue is recognized and what % of revenue is recognized in each period. 2. Invoicing rule: When the bill is going to be raised - In advance - In arrears (After supply of goods). Accounting rule: ORACLE FINANCIALS

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1. Fixed accounting rule: SETUP > TRANSACTIONS > ACCOUNTNG RULES Name: KR Fixed Accounting Rule Type: Accounting Fixed Duration Period: Month (Month Month)
Period 1 2 3 4 % 25 25 25 25

No.of periods: 4

Create an invoice: KR Source Invoice KR Invoice Date: 01- Mar 01

Invoicing rule: In Advance Line: KR Item KR Fixed 100*100 = 10000 Make it complete (Inv. No: 8026 is generated) (Invoice rule) View Single Request Name: Revenue Recognition Parameters: As Required. Submit View Request Completed. Query your Invoice no: 8026 Tools View Accounting: Entry: Advance: (If in advance selected).

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Dr. Receivable Revenue Revenue Revenue Revenue Unearned Revenue Unearned Revenue Unearned Revenue Unearned Revenue Unearned Revenue 10000 2500 (1st May) 2500 (1st June) 2500 (1st July) 2500 (1st August) 2500 (1st May) 2500 (1st June) 2500 (1st July) 2500 (1st August) 10000 Cr.

Invoice raised for Rs.10000/- based on period wise receipt. (Money will come on those periods and that periods will be consider as due dates). Therefore, First Sales Entry will be generated. Receivable Account Dr. To Revenue Account. That sale accounted in Unearned Revenue (Advance Receipt If Advance Option is selected). Arrears: (If in Arrears Selected) If invoice value is Rs.20000/Dr. Receivable Revenue Revenue Revenue Revenue Unbilled Receivable 20000 5000 (1st May) 5000 (1st June) 5000 (1st July) 5000 (1st August) 5000 (1st May) Cr.

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Unbilled Receivable Unbilled Receivable Unbilled Receivable Unbilled Receivable Therefore, 5000 (1st June) 5000 (1st July) 5000 (1st August) 20000

First sales entry will be generated.

Receivable Account Dr. To Revenue Account. Cr. That sale accounted in Unbilled Receivable (If Arrear Option is selected). 1. Variable accounting rule: SETUP > TRANSACTIONS > ACCOUNTNG RULES Name: KR Variable Accounting Rule Type: Accounting Variable Duration Period: Month (Month Month) Period 1 % 25 No. of periods: (Cannot enter)

Create an invoice: KR Source Invoice KR Invoice Date: 01- Mar 01 Invoicing rule: In Arrears (Arrears only Is logical) (Here we dont know the project phase periods. Therefore, invoice can be raised on project completion only. Therefore, invoice will be treated as in arrears only). In variable invoice rule receipt in advance is not logical. Because, we dont know the project periods. (In arrears, the invoice based on project completion only) Line: KR Item KR variable 100*100 = 10000 Duration: 4 (01-03-2001) complete
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(Invoice rule) Invoice no: 8028 (Generated).

Periods

Date.

View Single Request Name: Revenue Recognition Parameters: As Required. Submit View Request Completed. Query your Invoice no: 8028 Tools View Accounting: Entry: Arrear: (Arrear only is logical to select) Dr.
Receivable Revenue Revenue Revenue Revenue Unbilled Receivable Unbilled Receivable Unbilled Receivable Unbilled Receivable Unbilled Receivable 2500 (1st May) 2500 (1st June) 2500 (1st July) 2500 (1st August) 10000 10000 2500 (1st May) 2500 (1st June) 2500 (1st July) 2500 (1st August)

Cr.

Book the invoice based on variable period wise receipt and transfer to un billable sales. (However, money will come later). 3. Variable Deferred (Booking and transfer to Revenue Account as required for future periods). SETUP > TRANSACTIONS > ACCOUNTNG RULES KR Deferred (Create)
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Account Variable (Select) Month (Month Month) Deferred: Enable Period 1 Save. Create an invoice: As usual and select sales person also. Invoice rules: In Advance % 100

Line: Deferred rule 100*100 = 10000 Duration: 1 (01-03-2001) complete (Invoice rule) Invoice no: 8029 (Generated). View Single Request Name: Revenue Recognition Parameters: As Required. Query your Invoice no: 8029 Entry: Receivable 10000 10000 Periods Date.

Unearned Revenue

Go to: CONTROL > ACCOUNTING > REVENUE RECOGNITION: Find Invoice: 8029 Schedule the Revenue based on project completion on period wise (While completing the phases) Click: Action Schedule Revenue Next 70% If Schedule Finish. Rs.7000/- is transfer to Revenue Account Balance Rs.3000/- is unscheduled
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Again schedule this Rs.3000/- to Revenue for making Rs.0/Save. Again action: Transfer to sales person. Save. Query invoice: 8029 Dr.
Receivable Revenue Revenue Revenue Revenue Unearned Revenue Unearned Revenue Unearned Revenue 7000 3000 10000 10000 10000 10000 7000 3000

Cr.

Tax: SETUP > SYSTEM > SYSTEM OPTIONS Sales tax Value added tax. VAT tax Cannot operate sales Tax.

Sales tax Can operate VAT Tax method: Sales Tax

Location Flex Field Steps: KR State KR City KR Country Address validation: Error:- If address is not correct, the screen will show error messages. No validation:- If we give wrong information, system will not validate.
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Warning:- Warning message will display and can process further Tax vendor view: Oracle Sales Tax Geo Override: If tax vendor view is some other software, we should attach that tax override application. Inclusive Tax Used: If it is enabled, the tax amount will be displayed when we save in line window. Else, the tax will be displayed after complete the invoice. Calculation level: Header Tax will calculate only on Header Line Tax will calculate on each line. Sales tax: SETUP > TAX > CODES
TAX CODE KR Before KR After KR Qty KR Adhoc KR Incl KR Prior TAX TYPE Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax TAXABLE BASIS Before Discount After Discount Quantity Before Discount After Discount Prior 12 10 2 RATE % 10 10 Rs.10/AMOUNT

Effective:- 01- Jan-01 In control: KR Adhoc Enable; KR Incl Enable Tax Account: 01-000-2520-0000-000 Prior tax: Its only against with the help of Group Tax (i.e. Surcharge) Inclusive: Item inclusive of tax. 1. Before: Source: KR Sources Class: Invoice Type: KR Invoice Ship to: KR Customer Click: Line items
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Item KR Item Quantity 100 Rate 100 Amount 10000 Tax KR Before

Save. Click: Save (in Line window) Tax: Rs.1000/- (Before Discount = Rs.10000*10%=Rs.1000) Total value = 11000 Item = 10000 Tax = 1000 2. After: Source: KR Sources Class: Invoice Type: KR Invoice Ship to: KR Customer Payment Term: KR 30 days (For calculating discount) Click: Line items Item Quantity Rate Amount Tax KR Item 100 100 10000 KR After

Save. Click: Save (in Line window) Tax: Rs.900/- (After Discount = Rs.10000-Rs.1000=Rs.9000*10%=Rs.900) Value Discount Tax calculation Tax Total value = 10900 Item = 10000 Tax = 900 Invoice booking Entry: Receivable 10900 Dr. To revenue 10000 Cr. To Tax 900 Cr 3. Quantity : Source: KR Sources Class: Invoice Type: KR Invoice Ship to: KR Customer Payment Term: As Required Click: Line items Item Quantity Rate Amount Tax
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KR Item

100

500

KR Qty

Save. Click: Complete (in Transaction window) Tax: Rs.50/- (Quantity = 5 Quantity*Rs.10/-=Rs.50) Qty no. Amount Tax Total value = 550 Item = 500 Tax = 50 4. Adhoc : (If tax rate is different, we can use this method) In line in tax window we can enter tax rates and amount manually. Source: KR Sources Class: Invoice Type: KR Invoice Ship to: KR Customer Click: Line items Item Quantity Rate Amount Tax KR Item 100 100 10000 KR Adhoc

Save. Click: Tax (in Line window) Defined for Adhoc = 12% Here, we can change the tax rate = 30% (Tax =Rs.3000/-) Tax: Rs.3000/Total value =13000 Item= 10000 Tax = 3000 (Before or after discount is based on company requirement. This is applicable for all quantity, adhoc and prior based tax calculations) 5. Inclusive : (Net invoice value is inclusive of tax) Source: KR Sources Class: Invoice Type: KR Invoice Ship to: KR Customer Click: Line items Item Quantity Rate Amount

Tax

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KR Item

100

100

10000

KR Incl

Total value =10000 10000=110% (10% Tax is inclusive of invoice value) ?=100 Result: Rs.9090.90 (10000/110*100=9090.90) Now, 100%=9090.90 10 %=?( 9090.90*10%=Rs.909.10) Tax=Rs.909.10 6. Prior : (Works with help of Group tax) SETUP > TAX > GROUPS Group code: KR Prior -1 (Create) Output: Select Group name: KR Prior Tax Effective: 01- Jan-01 Effective: Enabled Rates: Tax code Rate 1 1 KR Before KR Prior 10 2

Condition 01- Jan-01 01- Jan-01

Sign Credit credit

(Select) (Automatic) Enter an invoice: Source: KR Sources Class: Invoice Type: KR Invoice Ship to: KR Customer Click: Line items Item Quantity KR Item 100

Rate 100

Amount 10000

Tax KR Prior -1 (Group tax)

Click: Tax (in Line window) KR Before 10%= Rs.1000/KR Prior 2%= Rs.20/- (KR Prior tax calculate on KR before amount Rs.1000*2%=Rs.20/-)
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Tax=Rs.1020/Value added tax: 1. VAT (Without CompounKRg) SETUP > TAX >CODES
Tax code KR VAT 15 KR VAT 10 KR VAT 5 Tax type Value Added Tax Value Added Tax Value Added Tax Taxable basis Before Discount Before Discount Before Discount Rate % 15 10 5

In Effective: 01- Jan-01 Save. SETUP > TAX > GROUPS Group code: KR Without -1 (Create) Group name: KR without compounKRg (Create) Rates: Tax code Rate Condition
1 2 1 KR VAT 15 KR VAT 10 KR VAT 5 15 10 5 01- Jan-01 01- Jan-01 01- Jan-01

Sign
Credit Credit Credit

(Select) (Automatic) Save. In System Options: Invoicing = AR Related Others all = Other modules (PO, Inventory, Asset Management, etc) Enter an invoice: Source: KR Sources Class: Invoice Type: KR Invoice Ship to: KR Customer Click: Line items Item Quantity Rate Amount Tax KR Item 100 100 10000 KR Without 1

Click: Tax (in Line window for view the calculated VAT)
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KR VAT 15 Rs.1500/KR VAT 10 Rs.1000/KR VAT 5 Rs.500/KR Adhoc Rs.1000/(We can add these taxes while calculating VAT without taxes). Total taxes = Rs.4000/Total value = Rs.14000/Line=Rs.10000/Tax=Rs.4000/2. VAT (With CompounKRg) SETUP > TAX > GROUPS Group code: KR With -1 (Create) Group name: KR with compounKRg (Create) Rates: Tax code Rate Condition
1 2 1 KR VAT 15 KR VAT 10 KR VAT 5 15 10 5 01- Jan-01 01- Jan-01 01- Jan-01

Sign
Credit Credit Credit

CompounKRg precedence
1 2 2

(Select) (Automatic) Save. In System Options: Invoicing = AR Related Others all = other modules (PO, Inventory, Asset Management, etc) Enter an invoice: Source: KR Sources Class: Invoice Type: KR Invoice Ship to: KR Customer Click: Line items Item Quantity Rate Amount Tax

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KR Item

100

100

10000

KR With -1

Save. Click: Tax (in Line window for view the calculated VAT) KR VAT 15 Rs.1500/-(1) -10000*15%=Rs.1500/KR VAT 10 Rs.1000/-(2) 10000+1500=Rs.11500*10%=Rs.1150/KR VAT 5 Rs.500/-(2) -10000+1500=11500*5%=Rs.575/-

Total taxes = Rs.3225/3. VAT (With Constraint)-whether to use Tax Group SETUP > TAX > GROUPS Query: KR Without -1 (Control F11) Group Name: KR CompounKRg Click: Group Constraint Name: KR Constraint.

Lines: Display 1 Action: Display 1 2

Clause If

Entity Ship to

Field State

Operator +

Value KR State

Type True False

Code Use this Tax Group Do not use this Tax Group.

Save. (If ship to be KR State tax will be calculated else tax will not be calculated). Enter an invoice: Source: KR Sources Class: Invoice Type: KR Invoice Ship to: KR Customer Click: Line items
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Item KR Item

Quantity 100

Rate 100

Amount 10000

Tax KR Without1

Save. Click: Tax (in Line window for view the calculated VAT) KR VAT 15 Rs.1500/- -10000*15%=Rs.1500/KR VAT 10 Rs.1000/KR VAT 5 Rs.500/Total taxes = Rs.3000/4. VAT (With Condition)-whether to use all Tax code under this Group SETUP > TAX > GROUPS Query: KR Without -1/As Required (Control F11) Group Name: KR CompounKRg/ As Required Keep your cursor on first line of Tax Code Rates (1) /As Required Click: Conditions Name: KR Condition. Lines: Display Clause Entity Field Operator Value 1 Action: Display
1 2

-10000*10%=Rs.1000/-10000*5%=Rs.500/-

If

Transaction Type

KR Invoice

Type
True False

Code
Use this Tax Group Do not use this Tax Group.

Save. (If Transaction type is KR Invoice, tax will be calculated for all VAT Tax codes else tax will not be calculated for rest of tax codes except conditional one). Enter an invoice: Source: KR Sources Class: Invoice Type: KR Invoice
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Ship to: KR Customer Click: Line items


Item KR Item Quantity 100 Rate 100 Amount 10000 Tax KR Without-1

Save. Click: Tax (in Line window for view the calculated VAT)
KR VAT 15 Rs.1500/KR VAT 10 Rs.1000/KR VAT 5 Rs.500/-10000*15%=Rs.1500/-10000*10%=Rs.1000/-10000*5%=Rs.500/-

Total taxes = Rs.3000/If we want to enter an invoice against MMM Invoice Type (Other Type of Invoice), the tax will be calculated as following. Click: Tax (in Line window for view the calculated VAT)
KR VAT 10 Rs.1000/KR VAT 5 Rs.500/-10000*10%=Rs.1000/-10000*5%=Rs.500/-

Total taxes = Rs.1500/Here, tax will not be calculated for first line (VAT 15). Because, the condition has been given such as if invoice type is not KR invoice, the tax should not be calculated for VAT 15. 5. VAT (With Exception)-(Exceptional tax rate fixation against which we already defined) If we already defined the tax rate is 5%, we can change to 20%. SETUP > TAX > GROUPS Query: KR Without -1/As Required (Control F11) Group Name: KR CompounKRg/ As Required Keep your cursor on first line of Tax Code Rates (1) /As Required Click: Exceptions Name: KR Exceptions. Lines:
Display 1 Clause If Entity Transaction Field Type Operator = Value KR Invoice

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(Enable in system options Tax Default) SETUP > TAX > EXCEPTIONS Select Item Item: KR Item (Select) Item Exception Rates: From Location 01-Jan-01

Tax rate

Reason

KR State-KR City- 10+20+30 Special KR Country Predefined = 5+3+2=10% Exception case = 10+20+30=60% (Exception case Defined Here) This is applicable for location tax code only. Because, KR State KR City KRCountry. Enter an invoice: Source: KR Sources Class: Invoice Type: KR Invoice Ship to: KR Customer Click: Line items Item Quantity Rate Amount Tax KR Item 100 100 10000 KR Without1

Save. As like exemption calculation, Tax = Rs.6000/- (10000*60%=Rs.6000/-) System Options: (For Setting Tax Default Codes & Hierarchy) SETUP > SYSTEM > SYSTEM OPTIONS
TAX CODE DEFAULTS Customer site Customer Product HIERARCHY 1 2 3

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Revenue Account System Options 4 5

We can set this hierarchy as required. While entering an invoice, it will tax default tax code as ranking here. If first ranked default tax code is not created, tax default selection move to next rank. Enforce Tax from Revenue Account Tax code default is always revenue tax code, which is created against revenue account. Setting Tax Default For Particular Account: (For Item / Consultant / Service /etc). SETUP > TAX > GL ASSIGNMENTS Account level: Account Description Tax Type Tax Code. 4110-Hardware - Output -KR Adhoc (As Required) (As Required). Consolidated billing: CUSTOMER > PROFILE CLASSES Query: KR Profile Payment term: KR Proxima (Change) Consolidated billing formats: Enable Type: Details Save. Update options Enable: Update all profiles Ok (It will update KR Proxima payment term for all KR Profile class for making consolidated billing) CUSTOMER > STANDARD Name: KR Customer (LOV Select) Find KR Customer address displayed Ok In profile transaction: Payment terms KR Proxima (Select) In profile document printing consolidate billing formats Enable & Type: Detail (It will update KR Customer in order to KR Proxima payment term for consolidated billing) Enter an invoice: Source: KR Sources Class: Invoice
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Date: 15-May-06 Type: KR Invoice Ship to: KR Customer Payment term: KR Proxima (Automatic) Click: Line items Item Quantity Rate KR Item 100 100 (As required).

Amount 10000

Tax -

Save. Make it complete Inv no: 8090 Action: Copy to No. of invoices: 15 Days: 1 15 Invoices will be created like invoice no: 8090 (1+15=16) View Request Single Request. Name: Print New Consolidated Billing Invoices. Parameter: 4896 (KR Customer) KR Site 15-May-06 KR Proxima Summary No Customer Bill to Cut of Date Payment term Type Pre Submit Fine View output. Result: All invoices are billed as consolidated. Transaction batches: Making control to enter invoices by end user with certain control or limit (Count of Invoices & Amount of total invoices). TRANSACTION > BATCHES Source: KR Source (Select) Status: New (This status type we should change manually after performing each steps) (But, in payable this status will be automatically change ). Count Amount 3 40000 (3 Number of Invoices can be enter for total Rs.40000/-) Click: Transaction (For Entering Invoices) First invoices Rs.10000 Second invoices Rs.20000
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(Now, 2 invoices are entered for Rs.30000/-) Now Status: Out of Balance (Manually Change). Third invoices Rs.10000 (Now, 3 invoices are entered for Rs.40000/-) Now Status: Open (Manually Change). Save. Batch Numbering: 5001 (Automatically Generated) This number, we defined in system options. Receipts: (Basic Requirements) Requirements: Bank Account Receipt Class SETUP > RECEIPTS > BANKS
Name: KR Bank Branch: KR Branch Click: Bank Accounts Name: KR Current Account Use: Internal (As Required) Number: 123654 GL Account: Cash Cash clearing Bank charges Bank errors Confirmed receipt Future dated payment Receivable option: Remitted requests Factored receipts 01-000-1245-0000-000 01-000-2110-0000-000 01-000-110-0000-000 01-000-1250-0000-000 01-000-7870-0000-000 01-000-7870-0000-000 01-000-2215-0000-000 01-000-2580-0000-000

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Short term debt In more receivable option: Unapplied receipts Unidentified receipts On account receipts 01-000-1240-0000-000 01-000-2990-0000-000 01-000-2110-0000-000 01-000-2110-0000-000

Receivable activities: Unearned Discounts - Unearned discounts Earned discounts Earned Discounts

SETUP > RECEIPTS > RECEIPT CLASSES. Name: KR Manual Creation method: Manual Remittance method: Standard & Factoring Clearance method: By automatic clearing (We need to run a program).

Payment method: KR Manual Method Effective date: 01- Jan -01 Manual: Enable Debit memos inherit receipt numbers. Click: Bank accounts Attach: As required Claim investigations: Claim investigation.

In formatting programs: Remittance transmission: French bills receivable remittance Remittance print: Print bank remittances program Factoring transmission: French bills receivable remittance

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Factoring print: Print bank remittances program

Steps after collect the cheque: Receipt issued Deposit Cleared. Clearing method: o Directly: Received and credited (FIRC) o By Automatic Clearing: Once cheque is cleared, status: Cleared. o By matching: Cash management. Receipts: RECEIPTS > RECEIPTS Payment method: KR Manual method Receipt no: KR 001 Amount: 10000 Type: Standard Save. Entry: (Receipt Process)
Confirmation Unidentified 10000 Dr. 10000 Cr.

Customer name: KR customer (attach) Click: apply Apply to: select invoice of this receipt (8001=Rs. 10000) Click: save (it will be enabled applied & saved). Entry: (receipt against invoice process)
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Confirmation 10000
Receivables Unapplied Unapplied Unidentified Unidentified 10000 10000 10000 Dr 10000 Cr 10000(new)

Status: confirmed (after created a receipt against an invoice) Therefore, we prepared a receipt against an invoice. Entry process: Confirmation unidentified Unapplied unidentified (reversal) Unapplied (reversal) Receivables (against sales). Remittance: Receipts+ Remittances In bank attach KR bankKR branch 123654 Bank Click: manual create. In that window (maintain Remittance Receipt batch) Viewfind all(it will display all the entered receipts)/ find ( select your receipt). Select :enable Click: approve Batch num 1052 (In Remittance window)control F11 Click: format Viewrequeststatuscompletedview report. (copy ur receipt num:001 in view report) Go to receiptsquery: pasteKR 001%
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KR manual rcpt class

KR manual method

ACCOUNT no

payment method

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Status: remitted. Entry: (receipt cheque deposit process)


Confirmation Confirmation Receivables Remittance Unapplied Unapplied Unidentified Unidentified 10000 10000 10000 10000 10000 10000 (new) 10000 10000

Therefore, v have created 1 receipt & applied against an invoice. then, we select that receipt in remittance window & that receipt cheque deposited in our bank. Then, clear/risk eliminates process. Clear/risk eliminate: Receipts + clear/risk Remittances: Name: automatic clearing for receipts Parameters: yesyesyes25th may 200625th may 2006KR 001 KR customer. SubmitViewrequestfind completed. Receipt: query KR 001 % --> control F11 Entry: (clearing process)
Cash Receivables Remittance Remittance 10000 10000 10000 10000 (new)

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Unapplied Unapplied Confirmation Confirmation 10000 10000 10000 10000

Now, the deposited cheque has been cleared & credited in out ACCOUNT. Factoring: Receipt= 01-may-2006(cheque receipt date from customer). Maturity=21-may-2006(cheque Maturity date) Deposit=15-may-2006(cheque Deposited in our bank). We have received a cheque against our invoice from our customer & deposited the same in future date. For this purpose, we can use factoring. Process: confirmed receipt remitted cheque clearedrisk eliminated. Create a receipt: Receipt date: 01-may-2006 GL date: 01-may-2006 Maturity date: 21-may-2006 Receipt no: KR FACT (for our track) Amts: Rs. 10000/Click: apply Select an invoice8058enablesave. Status: confirmed. Go to remittance: Receipts remittances. Remittance method: factoring. Date: 15-may-2006(deposit date).
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Attach: bank & ACCOUNT no. Click: manual create. View find all. Find: KR FACTenable. Click: approve Batch no: 1833(copy). Query remittance: 1833 (paste) control F11 Click: format Go to receipts: Query: KR FACT control F11. Status: remitted. Go to Clear/risk eliminate: (fix a risk) (Cheque maturity date: 21-may-2006.however, we deposited our cheque in 15-may2006 & bank takes risk & credits the funds in our ACCOUNT on 15-may-2006 itself against post dated receipt cheque). Name: automatic clearing for receipts. Parameters: yesyesno15th may 2006251h may 2006KR FACT KR customer. (Fixed bank risk)(Clear date) SubmitViewrequestfind completed. Receipt: queryKR FACT % control F11. Here, our banker taken a risk & give loan to us based on post dated receipt cheque. Go to clear /risk eliminates: (remove a risk). (Removing the bank risk due to cheque maturity date is arrived). Name: automatic clearing for receipts. Parameters: yesyesyes21th may 2006211h may 2006KR FACT KR customer.
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(Receipt no.)

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(Eliminate bank risk)(Clear date) SubmitViewrequestfind completed. Receipt: queryKR FACT % control F11. Status: risk eliminated. Now, that maturity date is arrived & we removed the banker risk / removed the status of receipt of loan. Invoice Item=Rs.800/Freight=Rs.100/Tax= Rs.100/Setup + system + application + rule set. Name: KR application rule set.
Sequence 1 2 3 rule Over application (automatic-save) item (rule details: lineb4enablesave) charges (rule details: chargesnoneenablesave) freight (rule details: freightnoneenablesave)

Freezeenablesave. Attach this KR application rule set in KR transaction type Setup + transactions + transactions type: Query: PN invoice % control F11. Application rule set: KR application rule set (attach). Create transaction: Transaction transactions. Source: KR Source KR invoice invoice num: 8075
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Line: 100 * 100=Rs.10000/- tax: KR Adhoc


Click: freight Total = Rs.11800 Item = Rs.10000 Freight= Rs.600 Tax = Rs.1200 (10000*12%) Enter receipt: Receipt no: KR 8075 (create for our track) Enter value: Rs.11600/- only Apply

Query your transaction:8075 Details: item-Rs.10000 tax-Rs.1200 Freight= Rs.400 total-Rs.11600/-

Actual transaction value: Rs.11800/Revised & adjust value : Rs.11600/Balance Rs.200/- held in freight account. Adjustments: Invoice= Rs.10000 Receipt= Rs.9500/Due= Rs.500/Management plan to treat this Rs.500/- as bad debits or some other expenses. In oracle applications, write off this payment as adjustment (bad debits). Setup +system + system options: Miscellaneouswrite off limits per receipt =(-500) to 500 Save

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(We can write off the short receipts up to Rs.500/- & write off excess receipt up to Rs.500 In real time, excess receipt will be adjusted later against new invoices) We can see / set the approval limits in Setup + transactions + approval limits. Setupreceiptsreceivable activities. Name: KR Adjustments. Type: Adjustments. Activity GL ACCOUNT: 01-000-5230-0000-000 (std Adjustments.) Create transaction: Source: KR Source KR invoice invoice num: 8076 Line: 100 * 100=Rs.10000/- tax: KR Adhoc (as required). Enter receipt: Receipt no :KR-8076(create For our track) Enter value : Rs.9600/- only Click: Apply and select your invoice no: 8076 Click: Adjustments Attach: KR Adjustments (-400) (Automatic) Go to receipt Query: KR 8076 Details: Original = 10000 receipt = 9600 Adjust =(-400) Therefore, we have adjusted /write off that short receipt of Rs.400/This is for one invoice Adjustments for multiple invoices: (In real time) Create multiple transactions with the help of copy to in transaction window Actions
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Invoice no: 8077 = Rs.10/Complete Action: Copy to (1 Day and 20 invoices) save Result: 20 invoices are created Control > Adjustments > create > Auto adjustments Remaining amount: Rs.0/- to Rs.10/Customer: KR customer Activity: KR Adjustments (Attach) Type: Invoice Adjustments (Attach as required) Reason: Write off (Attach as required) Option: Generate Report only Submit View Request completed view report Report will be generated and we can preview our report Result: Created 20 + 1 invoices have been write off (copy any one invoice no: 8088) Now, create adjustments Adjust Related Invoices : Enable

Control > Adjustments > Create Auto Adjustments Selection and parameters are same as above Option: Create Adjustments Adjust Related invoices : Enable

(In the above result, we have copied one invoice number) In transaction: Query 8088% Result: Details: original Rs.10 /Adjusted Rs.10/Result: Rs.0/-

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Receipt write off: Setup > Receipts > Receivable activities Name: KR Receipt write off Type: Receipt write off Activity GL account: 01-000-1270-0000-000 (Reserve for returns) Save In system options Miscellaneous: Rs.500/- (positive) Excess write off limits Save We can see the given approval limit in Transactions > Approval limit Enter a transaction = 8091 Amount: Rs.10000/Complete Enter a receipt = KR-8091 Amount: Rs.10500/Apply

First line: 8079 = Rs.10000 Select Enter short

Second line: Receipt write off = Rs.500 = KR Receipt write off Select Save In transaction: Query 8079% Balance Activity

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Result: Details: Original Rs.10000/- Write off Rs.500 (Auto generated) Receipts write off: (For multiple Receipts) Create some multiple receipts for Rs.500/Control > write off receipts Unapplied Amount: Rs.500/Customer: KR customer Parameters: KR Receipt write off (attach) Option: Generate Report only Submit View Request completed view report Report will be generated and we can preview our report Result: Excess receipt invoices has been write off against our customer Again, Control > Write off receipts Unapplied Amount: Rs.500/Customer : KR customer Parameters : KR Customer write off (attach) Option : Create write off Submit View Request Completed View Report Report will be generated and we can preview our report Result : Excess Receipt Invoices has been write off and copy one particular receipt (KR 8095) Receipt Query : KR 8095%
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Adjust Related invoices : Enable

Adjust related invoices : Enable

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Details : Original : Rs.10000/- Write off : (-500) (automatic generated) Adjustments : Excess / Shortage Transaction Type Over Application should be enable. Then only, we can adjust / Write off the excess/ short receipt transaction. (Receiving shortage / Excess receipts) Receipts Reversal: If cheque has been bounced, we can reverse the entered receipt. Receipts > Receipts summary Query : KR % Select one receipt open KR 81 Reverse (Reason & Category) Click : Reverse Status : Reversed (or) In abroad, instead of preparing reversal entry they will create a debit memo against reversal receipt. In receipt summary Select one receipt open (KR 82) Select : Category & Reason Enable : Debit memo reversed Type : Debit Memo Reversal Click : Reverse (Account No :1210) In summary window copy that receipt number (KR 82) Transaction + Transaction Query Paste KR 82 % - Control F11 Class : Debit Memo (Automatically Generated)
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Type : Debit Memo Reversed (Automatically Generated)

Now, new debit memo has been created Entry : (As usual sale entry) Receivable 10000 To revenue 10000

Miscellaneous Receipt: If we receive any interest or miscellaneous income, we are in position to enter miscellaneous receipt.( entering a receipt for without customer name) For example : Interest Invoice (Miscellaneous Receipt) = Rs.10000/Distribution set : (If required) Set up > receipts > distribution sets Name : KR Distribution Set % 50 50 Account 01-110-7810-0000-000 01-120-7810-0000-000 Description Interest Income Interest Income SAVE

Receivable Activity: Set up > Receipts > Receivable activities


Name : KR Miscellaneous cash Type : Miscellaneous cash Active : Enable GL Account Source : Distribution Set Tax code source : None Distribution Set : KR Distribution set (Attach)

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SAVE

Receipts + Receipts
Receipt NO : KR Misc.01 (For our track) Amount : Rs.10000/Receipt type : Miscellaneous Payment method : KR Manual (After select receipt type) Activity : KR Miscellaneous Cash (Attach) Distribution set : Interest Income (Automatic) Save

Entry : Confirmation Miscellaneous Cash 110 Miscellaneous Cash 120

DR 10000

CR

5000 5000

(Here customer name is not required and this interest receipt is miscellaneous cash. Then we can go to Remittances Clear / Risk eliminate for credit the payment in our account)

Charge back: 1st May, we have created a transaction with due date of 15th May. Suddenly , customer said the due for that transaction invoice is June 2nd& management also accepted . Therefore, we have to create a new entry as per accepted due date (2nd June ) Now, we can apply charge back function .(Reverse original entry & create a new entry as per new due date) Set up + Transaction + Transaction Type
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Name : KR charge back Class : Charge back Sign: Positive Save Create an original transaction KR 85=Rs.10000/- (Due date 15th May) Create a receipt against this original transaction apply select original transaction Click: Charge back Enable : Open Receivables & post to GL

In receipts: Receipt No : KR charge back 01 Amount: Rs.0/Apply Select invoice KR 85 (Rs.10000/-) Save Click: charge back Type : KR charge back Due date : 15th May (old) change to 2nd June (New) Save Copy charge back no : 100561

Transaction + Transactions Query Paste 100561% - F11 Result: Charge back entry is created for Rs.10000/- with due date of June 2nd (New transaction Entry)
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Entry : As per sales entry

Receipt batches: For transaction source Invoice Numbering & Batch numbering both should be defined

For Receipt source Batch Numbering only required Set up >Receipt > Receipt source Name : KR receipt source Receipt source type :Manual (Enable) Receipt class : KR Manual (Attach) Payment method : KR Manual Method (Attach) Bank : KR current account (Attach) Batch numbering : Automatic Enable Save Receipts > Batches Batch type : Manual Regular Batch source : KR Receipt Source (Attach) Receipt class - payment method Bank Name Account Number : Generated Automatically Control : Count 3 amount 3000 Save (Here , status will be automatically changed based on steps followed out of balance/closed) Click : Receipts (For creating 3 number of receipt for Rs.30000/New Create 1st Receipt : KR Receipt 11=Rs.10000 Apply Save
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Last Number :4000

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Create 2nd Receipt : KR Receipt 12=Rs.10000 Apply save Status : out of balance Create 3rd Receipt : KR Receipt 13=Rs.10000 Apply save Status : Closed If, Batch type: Manual Quick Auto cash rule set (requirement)
1. Apply to the oldest source first Apply receipt against invoices on first cum first serve 2. Clear the Account Apply receipt against group of invoices which is stanKRg as overdue 3. Clear post due invoices Apply receipt against an old invoice and balance as overdue 4. Clear post due invoices grouped by payment term Apply receipts against invoices grouped by payment term 5. Match payment with invoice Apply receipt against actual invoice & result is Rs.0/-

Setup > Receipts > Auto cash rule set Name : KR Auto Cash Rule (create) Discounts : None No Discounts ; Earned only Discount only on earned invoice receipt Earned & unearned only Discount on earned & unearned adjusted due invoices. Automatic Matching Rule : Unapplied (status of balance amount)

Apply partial receipts : Enable Auto cash Rule: (As required)


1 2 3 4 Apply to the oldest invoice first Clear past due invoices Clear past due invoices grouped by payment term Clear the account

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5 Match payment with invoice

Customer + Profile class Query : KR% - control F11 KR profile class Auto cash Rule set: KR Auto cash rule set (Attach) Save- Update all profiles

Check whether all the profiles are updated or not in our KR customer: Customer + Standard Select: LOV KR Customer Find ok Profile transaction: KR Auto cash rule set (should be attached automatically) Address Open (site) Profile: KR Auto cash rule set (should be attached automatically) Save Receipts + Batches Batch Type: Manual Quick Batch source: KR Receipt source (Attach) Receipt class Payment Method Bank Name Account Number: Generated Automatically Control : Count: - 5Amount 50000 Save Here also, status will be automatically changed based on steps out of balance/closed) Click : Receipts (For creating 3 number of receipts for Rs.30000/-)
KR Quick 1 KR Quick 2 10000 10000 Single Multiple KR Customer KR Customer Apply to Click: Multiple & Apply

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KR Quick 3 KR Quick 4 KR Quick 5 10000 10000 10000 Auto cash KR Customer -

On Account KR Customer Unapplied KR Customer

Click : Post Quick Cash View Request Find Status Completed View output Copy : Receipt Batch No: 1015601 In that Receipt Batches window Query Batch Number : Paste 1015601 Click : Receipts Select Auto Cash rule set receipt This receipt automatically adjusted as defined in auto cash rule set

Automatic Receipts: (Direct Wire transfer from customer) Requirements: 1. Customer Bank 2. Receipt classes Bank details for automatic receipts from customer 3. Define GL sequence 4. Customer standard Attach: Customer Bank Payment Method 5. Create Transaction (Invoice) 6. Automatic Batch

Receipts 1. Customer Bank Setup + Receipts + Banks

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Bank Name : KR Customer Bank (Client Bank) Create Branch Name : KR Customer Branch (Client Bank Branch) Create Click : Bank Accounts Name : KR Customer EEFC Account Create Account use: Customer Account No: 2558123456 Save

2. Receipt Class Setup + Receipts + Receipts classes Name: KR Automatic (create) Select : Automatic No Remittance Directly Payment method: KR Automatic (Create) Automatic : Disable: Receipt Inherit Transaction Numbers Number of receipts Rule: One per invoice (select as required) Receipt Maturity Date Rule: Earliest (select as required) Automatic print program : Prince Receipts Program (select as required) Lead Days : 50 (For generating automatic receipt based on due dates Fix high value only)

Click : Bank Accounts Attach : KR Customer Bank KR Customer Branch KR Current Account 0(Minimum Receipt) GL ACCOUNT: Automatic generated & Claim investigation in last
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Formatting Program: French Bills Receivable Remittance & Print Bank Remittances program Save

3. Define GL Sequence Switch over to GL vision operations Setup > Financials > Sequence > Define Name : KR Rule (Create) Application : Receivables (Attach) From : 01-Jan-01 Type : Automatic (select) Initial value : 500 Save Setup > Financials > Sequence > Assign Document Application : Receivables (Attach) Category : KR Automatic (Attach) Set of books : Vision operations USA (attach) Method : Automatic (Attach) Assignment Start date : 01-Jan-01 Sequence : KR Rule (Attach) Save

4. Customer standard Switch over to receivables vision operations


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Customer + Standard Select : LOV KR customer Find Ok Payment Method : KR Automatic (Attach) Bank Accounts : KR Customer EEFC Account & 2558123456 In Address Go to site open Payment Method : KR Automatic (Attach) Bank Accounts : KR Customer EEFC Account & 2558123456 Save Enable : Primary Enable : Primary Enable : Primary Enable : Primary

5. Create Transactions: Source : KR Source Invoice : KR invoice Payment Method : KR Immediate Line : 100*100=10000 Complete Action : Copy to -1 & 30 = 30 invoices has been created 6. Batches: Receipts + Batches Batch Type : Automatic Receipt class : KR Automatic (Attach) Payment Method : KR Automatic (Attach) Click : Create Customer Name : KR customer Enable : Approve

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Ok

View Request Find Status Completed Back to Receipt Batch window Copy Batch No:1053 Query this window Select Automatic & paste 1053% - Control F11 Click : Format View Request Find Status Completed Back to Receipt Batch window Click : Main Select one receipt number : KR receipt 82

In Receipts + Receipts Query Paste ON Receipt 82% Status : Cleared This is what automatic receipt batches created based on customer direct wire transfer remittance.

Bills Receivable: Bills receivable is a negotiable instrument between two parties Drawer Drawee Supplier Drawer Raises the bill Customer Drawee Accepts the bill Supplier Send Goods & BR Acceptance letter to customer collect BR Acceptance letter from customer Submit- to our bank for collection of the bills receivable on maturity date against invoice of acceptance letter (Maturity date i.e. due date) Customer wire money to our bank based on due date Our banker receive the payment from our customer and close our BR correspondence. 1. Transaction type BR
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2. Transaction source 3. Assign Drawee - Customer 4. Receipt class

1. Transaction Type: Setup + Transaction +Transaction Type Name : KR BR Class : Bills receivable Sign : Positive Date : 01-Jan-05 Enable : Open Receivables & Post to GL Print and open

Format program Name : French Bills Receivable Enable : Signed Save

2. Transaction Source: Setup + Transaction + Source Name : KR BR Source Type : Manual Description : KR BR Source Enable : Active & Automatic Transaction Numbering Last Number : 2000(As required) Reference Field Default value : Interface_header_attribute 1 Save 3. Assign Drawee in Customer Customer + Standard Select : LOV KR Customer Find Ok Address (site) open
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Business purpose: Drawee Add) Enable : Primary Save

4. Receipt Class: Setup + Receipt + Receipt Classes Name: KR BR Receipt class Creation Method: Bills receivable remittance (As required) Remittance Method: Standard and Factoring (As required) Clearance Method: By automatic clearing

Payment method: KR Manual Effective Dates: 01-Jan-01 Enable: Receipt Inherit transaction numbers

Click: Bank Accounts Bank Name: KR Bank (our Bank) Account Name: KR current Account GL Short Term Debt: Short Term Debt Factoring Claim investigation: Claim investigation Formatting Program: French bills Receivables Remittance & Print Bank Remittances program Save Bills Receivable + Transaction 1-Jun-06 Invoice
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Branch Name: KR Branch

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10-Jun-06 Bills Receivable Transaction 20-Jun-06 Acceptance 28-Jun-06 Maturity

Source: KR BR Source Type: KR BR Issue: 01-Jun-06

Maturity: 28-jun-06

Main Drawee = KR customer (Invoice Raiser)

Click: Assignment Select Transaction Invoice Click: Complete Accept Save Copy the generated bills receivable number: 2001 In portfolio management: Status PenKRg Bills Receivables + Remittances Remittance Method: Standard (Select) Receipt Class: KR BR Receipt Class (Automatic) Payment Method: KR BR Automatic (Automatic) Remittance: KR Bank (Invoice Raiser Bank)

Click: Manual Create Maintain Remittance Batch Window

Select Enable
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BR NO 2001

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(Automatic)

(Select)

(Automatic)

Action: Enable Approve and format View Request Find Status Competed In portfolio management: Status Standard Remitted

BR > Maturity & Risk Programs Single Request Name: Bills Receivable Maturity and Risk Program Parameter: Maturity Date from & To : 28-May-06 Transaction Type KR BR Submit View Request Find Status Competed View Report Copy the Receipt No : 2001 In portfolio management: Status Closed

Receipt + Receipt Query Payment Method: KR% Receipt No: 2001% Control F11 Status: Remitted

If Remittance Method : Factoring Supplier Send Goods & BR Acceptance Letter to Customer Collect BR Acceptance Letter from customer

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Submit to our Bank to borrow money against the bills receivable before maturity date (Before Maturity date i.e. before due date) Customer wire money to our bank based on due date Our banker receives the payment from our customer and closes our BR correspondence For this factoring remittance method banker will charge interest. BR > Transaction
1-Jun-06-Invoice 10-Jun-06-Bills Receivable Transaction 20-Jun-06-Acceptance 28-Jun-06-Maturity 25-Jun-06-Remit

Source: KR BR Source Type: KR BR Issue: 01-Jun-06

Maturity: 28-Jun-06

Main: Drawee = KR Customer (Invoice raiser) Click: Assignment Select Transaction Invoice Click: Complete Accept Save Copy the generated bills receivable number: 2002 In portfolio management: Status penKRg

BR > Remittances

Remittance Date : 25-Jun-06

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Remittance Method: Factoring (select) Receipt Class: KR BR Receipt Class (Automatic) Payment method: KR BR Automatic (Automatic) Remittance: KR Bank (Invoice Raiser Bank) Click: Manual create Maintain Remittance Batch window

Select Enable (Automatic)

BR NO 2001 (Select)

Type KR BR (Automatic)

Amount 10000 (Automatic)

Action: Enable Approve and format View Request Find Status Completed In portfolio management: Status Factored

BR > Maturity & Risk Programs Single Request Name: Bills Receivable Maturity and Risk program Parameter: Maturity Date From & To : 28-May-06 Transaction Type KR BR Submit View Request Find Status Competed View Report Copy the Receipt No: 2001 In Portfolio management: Status - Closed After this function, one receipt will be generated automatically with status of Risk. Then, we need to run a program and eliminate the Risk. Cross currency Transaction:
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Invoice : AUD 10000 1 USD = 2 AUD Therefore, Functional currency value = USD 5000 Enter a transaction = AUD Line : 100*100=AUD 10000 Invoice no:8132 Complete User rate: 2

Details: AUD 10000 Entry: Receivable 5000 Revenue 5000

USD 5000

Receipt in INR Payment Method: KR Manual Amount: INR 230,000 (USD 5000*Rs.46/-) Apply: 8132 Functional currency) 1 USD = 2 AUD (10000 AUD) 1 USD = Rs.46/- (5000 USD) USD 5000 * Rs.43/- = Rs.230, 000/- Therefore 1AUD = Rs.23/Cross currency rate: 23 (Calculate manually based on

Entry : Confirmation 5000 Receivable


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230000 5000 10000(AUD) J. Sureshraja M.com., MBA., CA (f).,

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Unapplied Unapplied

5000 5000

230000 230000

Reciprocal Relationship: A customer B customer

A customer can pay for B & B customer can pay for A = as we define) A is parent, A can pay for B and B cannot be pay for A) Customer + Standard Name: KR New customer (Newly create) Address: Open Attach KR city KR state KR country Classification: Attach KR profile & KR payment method Enter a transaction: Either for old or new customer (if reciprocal) Here, we can enter KR invoice KR customer (Bill to) KR new customer (ship to) (If parent and child)

Later on we feel that new customer is wrong So to account merge Do that Reciprocal /Parent (As required) And delete that new customer Then, we cannot create invoice for new customer

Collection Activities: Setup > Collections > Aging Buckets Name: KR Aging Bucket (create) Type: 4 Bucket Aging (As required)

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4 Bucket Report for 4 periods; 7 bucket Report for 4 periods; Credit snapshot Particular customer balance report; Statement Aging Report for 5 periods
1 2 3 4 Future Paste Due Paste Due Paste Due -180 1 31 61 0 30 60 999 Future due Past Due Past Due Past Due

Save

Collections + Aging Attach your aging bucket & customer It will show debtor aging reports as we defined for KR customer Customer Calls: Collections > Customer calls Attach : KR customer & KR collector Response : Attach as required (will call back/ dispute amount) Outcome : Attach as required (unable to contact / meeting scheduled)

For customer call if particular invoice Click: Topics and perform When follow up complete collection + schedule Enable : Follow up complete

Print documents: Print documents > Statements Option : Print statement / Reprint statements (As required)
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Bucket : Statement Customer Name : KR customer Cycle : Weekly / Monthly / Quarterly (as required) Submit If we want to send statement to customer periodically Setup + Print + Statement Cycles Name : KR periodic statement Interval : Weekly/Monthly/Quarterly Unit : Vision Operations 1 Date : Print statement period Save Dunning letters: Set up + Print + Dunning letters Name: KR dunning letter Review Date: As scheduled Message: As required for request to release the payment Save Print Document + Dunning letters Single Request Name: Dunning letter Generate Parameters: As required Submit View Request Find Status Completed View the Dunning Letter

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AR Reconciliation: Before Transfer of AR Transaction to General Ledger (GL), we can reconcile the AR transactions Control + Request + Run Single Request Name : AR Reconciliation Report Parameters : Set of books Currency & GL date Submit View Request Find Status Completed View the Dunning Letter (Its not a Report)

Transfer to GL: Interface + General Ledger Single Request Name: General Ledger Transfer program Parameters: Start Date To date (Post through Date) Post in summary: If required Yes (Else No) Run Journal Import : If required Yes : Everything transfers and posted in GL No: In GL Import from AR and post the same Submit View Request Find Status Completed View Report Copy: Posting control ID Number (No: 60532) Switch over to GL Responsibility

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Journals + Enter Batch: %60532% Click: Find In journal summary window Source: AR Transaction reflected in the status of unposted Review journal Check Funds Reserve Funds Post Re query: Status - Posted

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MULTI-ORG
Profile (Types) Options

1. GL Ledger Name (Site level: Unisys France S.A.S., Resp level: Unisys Sudamericana S.R.L.) 2. MO: Operating Unit ( Responsibility level : OU_ARG_Argentina) 3. MO: Security profile 4. HR: Security Profile (site level : Setup Business Group )

5. HR:Business Group (site level : Setup Business Group ) 6. HR:User Type (Site level - HR User) 7. GL: Data Access Set (Site level: Unisys France S.A.S., Resp level: Unisys Sudamericana S.R.L.)

Create New Responsibility Responsibility = System Administrator 1. Navigate to (N) Security > Responsibility > Define. 2. Enter the Responsibility Name: KR Assistant System Administrator 3. Select the Application: Application Object Library 4. Enter the Responsibility Key: KR_ASST_SYSADMIN 5. Enter the Description: Assistant System Administrator 6. Check Available From: Oracle Applications 7. Select the Data Group: Your Initials Data Group 8. Select the Data Group Application: Your Initials Custom Application 9. Select the Menu: Navigator Menu System Administration GUI 10. Save your work.

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Menus & Functions Application Users

E.g.) GL Super user JNLS Setups Submenus

Financial options Payables Options Functions

Mandatory fields required for Responsibilities: 1. Menu 2. Data Group 3. Request group (optional)

Profile options for proviKRg security: 1. 2. 3. 4. 5. Site level Application level User level Sever level Org level

Key ff

If not reqd take tick mark

Validation Types

1. None No security 2. Independent Only choose from List of values 3. Dependent Only dependent depend on other segments.

] - White Mean it has something

] Grey Nothing, can be added.

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Page 210 of 234 I. Menu Creation

Application > Menu

Menu

: Suresh

User Menu Name : Suresh Raja

Menu Type Des

Seq

Prompt

10 20 30

SR - GL SR - AP

GL - Super User AP - Navigate - GUI12

UK - SHRMS Navigator

II.

Create Responsibilities

Security > Responsibility > Define

: ABCD : Payable : ABCD

Data Group STD Payable Payable reports only

Menu Suresh Raja ORACLE FINANCIALS

Payables

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Exclude Menus:

III. Suresh

Create User:

Assign Suresh Raja

Steps:

1. Create Responsibilities AP, GL, AR, FA, HR, and CM. 2. Create an Application user and attach responsibilities. General Ledger GL Super user Accounts Payable AP Navigator GUI12 Accounts Receivable AR Navigator GUI12 HR UK SHRMS Navigator- System Administrator.

3. Create a Business Group. - Login to HR Responsibility. - Create Business Group.

Navigation: Work Structure > Location Address Style US/UK

: SR LOC

New Business Group:

Work structure > Organization > Description > New (A)

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Page 212 of 234 Name: SR org (BG) Location: SR location (We Created)

Org classification: Business Group (T) Others Business Group & Tab

Short name

SR BG

Employee number generation :

Automatic

Application Number generation :

Automatic

Automatic

o o

Grade ff

People gr.ff

Job ff

Cost allocation ff

Position ff

Competence ff

o o o

United kingdom GBP 1.1.12

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Page 213 of 234 Define Ledger (SOB)

Create Ledger , GL resp

Switch Resp

Go to HR resp

WS > Org > Despriciption

Create Legal Entities:

SR legal entity Class: GRE/ Legal Entity.

Others Legal entity accounting

Tab

Attach SOB SR SOB.(in 11i)

Create Operating Unit

Classify

Operating Unit : Operating Unit ORACLE FINANCIALS

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Others operating unit information

Tab Legal entity SR LE Attach.

System Administrator

Next step: Assign Responsibility to legal entity

SR. Responsibility

System Administrator > Profile > system.

Tick Responsibility

: SR GL

Profile

: GL/Set of Books name

Press F1:

Profile: MO% operating Unit Attach SROU Press F11:

HR: Security profile: SR BG

Press F11: ORACLE FINANCIALS

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HR user type: HR with payroll user

View > Request with Report: Replicate seed data : SR Operating unit

SUBMIT

Multiorg set up validation report

Menu

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Logout and login as KR user

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Payables

1a

Create Responsibility:

Payables Inquiry

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1

Data group name

Standard

Data group 2 Application


3 4 5 6

Payables AP_NAVIGATE_INQUIRY_GUI12 PAYABLES_INQUIRY Payables Reports only Payables

Menu Responsibility Key Request groups Application

Create Menu

Seq 1 2 3 4 5 6

Prompt Invoices Payments Accounting Suppliers Other

Submenu AP_INVOICES_INQUIRY_GUI12 AP_PAYMENTS_INQUIRY_GUI12 AP_ACCOUNTING_INQUIRY_GUI12 AP_APXVDMVD_MENU FND_OTHER 4.0 View Supplier Information

Function

Description View Invoices View Payments View Accounting

View Suppliers

Suppliers Inquiry Other

Create Function

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2a

Create Responsibility:

Payables Manager

Data group name Data group Application Menu Responsibility Key Request groups Application

Standard

Payables AP_NAVIGATE_GUI12 PAYABLES_MANAGER All Reports Payables

Create Menu

Seq 5 10 15 20 25 30 35 40 45 50 55

Prompt

Submenu AP_INVOICE_GATEWAY_GUI12

Function

Description

Maintain Quick Inv Maintain Invoices

Invoices Payments Accounting Suppliers Employees Credit Cards Setup Workflow Other

AP_INVOICES_GUI12 AP_PAYMENTS_GUI12 AP_ACCOUNTING_GUI12 AP_SUPPLIERS_GUI12 AP_EMPLOYEES_GUI12 AP_MAINTAIN_CREDIT_CARDS_GUI12 AP_SETUP_GUI12 AP_WORKFLOW_GUI12 FND_OTHER 4.0 AZN_PR_PAYABLES

Maintain Payments

Maintain Accountin

Maintain Suppliers

Maintain Employee

Maintain Credit Ca Setup Workflow Other

Accounts Payable P

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Graphical Process N 60 AP_PO_VIEW_PURCHASE_ORDERS_GUI Bank Account Access: Supplier Assignments AP_POS_INV Supplier Information Management (Buyer View) View Supplier Information CE Bank Home Page Menu CE Bank Search Home Page Menu PO Order Tab CE Bank Account View - View Only View Payment Page

65 70 75 80 85 90 95

100 105

Create Function

3a

Create Responsibility:

Payables Requests

1 Data group name Data group 2 Application 3 Menu 4 Responsibility Key 5 Request groups 6 Application

Standard

Payables Payables Requests(AP_PAYABLES_REQUESTS) AP_PAYABLES_REQUESTS_RESP All Reports Payables

Seq

Prompt

Submenu

Function Invoice Actions/Review

Description

1 Invoices

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Page 226 of 234 Page

1a

Create Responsibility:

Receivables Inquiry

1 2 3 4 5 6

Responsibility Key Data group name Data group Application Menu Request groups Application

RECEIVABLES INQUIRY Standard Receivables AR_NAVIGATE_INQUIRY_GUI Receivables Reports Only Receivables

1b

Create Menu Menu AR_NAVIGATE_INQUIRY_GUI

Seq

Prompt 1 Transactions 2 Receipts 3 Collections 4 Customers 5 Control 6 Accounting 7

Submenu AR_TRANSACTIONS_VIEW AR_RECEIPTS_VIEW AR_COLLECTIONS_VIEW AR_CUSTOMERS_VIEW AR_CONTROL_GUI Subledger Accounting Functions

Function

Activities

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Page 227 of 234 17 Control 24 Accounting 40 AR_CONTROL_INQUIRY_ONLY SLA: User Main Menu XLA_SL_DRILLDOWN

2a

Create Responsibility:

Receivables Manager

1 2 3 4 5 6

Responsibility Key Data group name Data group Application Menu Request groups Application

RECEIVABLES_MANAGER Standard Receivables AR_NAVIGATE_GUI Receivables All Receivables

2b

Menu Exclusions

Type Menu

Name AZN_PR_RECEIVABLES

Description
Process Navigator Menu for Accounts Receivable Processes

2c

Menu

AR_NAVIGATE_GUI

Seq

Prompt 1 Transactions 2 Receipts 3 Bills Receivable 4 Collections 5 Customers

Submenu AR_TRANSACTIONS_GUI AR_RECEIPTS_GUI AR_BILLS_RECEIVABLE_GUI AR_COLLECTIONS_GUI AR_CUSTOMERS_GUI

Function

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Page 228 of 234 6 Setup 7 Reports 8 Print Documents 9 Interfaces 10 Control 11 12 13 Notifications 14 Credit Management 15 Inquiry 16 iReceivables 17 Account Details Collections: Subfunctions AR_INQUIRY_GUI iReceivables Internal Page Account Details Render Credit Card Error Handling Buttons Activities Payer Payment Details Region AR_LATE_CHARGES_GUI AZN_PR_RECEIVABLES WorkFlow Notifications Credit Management Programs AR_SETUP_GUI AR_REPORTS_GUI AR_PRINT_GUI AR_INTERFACE_GUI AR_CONTROL_GUI XLA: View Accounting Lines

18 22 23 24 Late Charges 90 Unisys Invoice Consolidation 116 Setup Merge Dictionary 125 132 149 152 Customers 167 AR_CUSTOMERS_VIEW XLA_SL_DRILLDOWN Customer SubMenu

Unisys AR Invoice Consolidation For Setup Merge Dictionary

Bill Management: Real Preview

Receivables

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3a

Create Responsibility: Application


1 2 3 4 5 6

Receivables Operations Analysis Financial Intelligence FII_OBIEE_AR_RESP Standard Applications BIS Receivables Operations Analysis Catalog DBI Requests and Reports Applications BIS

Responsibility Key Data group name Data group Application Menu Request groups Application

3b

Menu

Receivables Operations Analysis Catalog

Seq

Prompt Receivables Operations 5 Analysis Catalog

Submenu

Function

Receivables Operations Analysis Cat

10

Receivables Operations Analysis Sub Area

4a

Create Responsibility:

Receivables Archive and Purge

1 2 3 4 5

Responsibility Key Data group name Data group Application Menu Request groups

RECEIVABLES_ARCHIVE_AND_PURGE Standard Receivables AR_ARCHIVE_PURGE Archive and Purge

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6

Application

Receivables

4b

Menu

AR_ARCHIVE_PURGE

Seq

Prompt 1 Archive and Purge

Submenu

Function AR Archive and Purge

2 Requests

Concurrent Requests: View All (User Mode)

Functions

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Page 231 of 234

1a

Create Responsibility:

General Ledger Super User

1 2 3

Responsibility Key Data group name Data group Application Menu Request groups Application

GENERAL_LEDGER_SUPER_USER Standard

General Ledger GL_SUPERUSER GL Concurrent Program Group General Ledger

4 5 6

1b

Create Menu Menu GL_SUPERUSER

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Seq 1 2 3 4 5 Consolidation 6 7 8 9 10 11 12 Reports Setup Other GL_SU_CONSOLIDATION GL_SU_REPORT GL_SU_SETUP GL_SU_MANAGER AZN_PR_GL GL_DAS_HOME_PAGE GL_CRM_HOME_PAGE_MENU Workflow Guest Self-Service Monitor Application Definition Access Sets Query Valid Values UGL_MGR_SETUP Unisys GL transaction db form Prompt Journals Budgets Inquiry Currency Submenu GL_SU_JOURNAL GL_SU_BUDGET GL_SU_INQUIRY GL_SU_CURRENCY Function Description

Enter, generate, and post actual and encumbrance Define, enter, and generate budgets Inquire on balances and journals Revalue and translate balances

Define mappings and eliminations, transfer data, e process flows Define and request reports Set up system

View concurrent requests, notifications, and set pr GL Process Navigator

13

100 105

Unisys TRC Form

Unisys TRC Form

2a

Create Responsibility:

General Ledger User

1 2 3

Responsibility Key Data group name Data group

GENERAL_LEDGER_USER Standard General Ledger

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Application 4 5 6 Menu Request groups Application GL_USER

1b

Create Menu Menu GL_USER

Seq 1 2 3 4

Prompt Journals Reports Encumbrance Other

Submenu GL_U_JOURNAL GL_U_REPORT GL_U_ENCUMBRANCE GL_SU_MANAGER

Function

Description Enter actual journals

Request reports and inquire on balances and jou Enter and inquire on encumbrance journals View concurrent requests, notifications, and set

Responsibility latest.xlsx

Function

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ORACLE FINANCIALS

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