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11i General Ledger

Management Fundamentals
Student Guide

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Edition 1.0
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Author
Aamir
Technical Contributors and Reviewers
Reviewer 1, Reviewer 2, Reviewer 3
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Oracle Tutor

Table of Contents
Oracle General Ledger Process......................................................................................................................1-1
Overview of the Oracle General Ledger Process ...........................................................................................1-3
Objectives ......................................................................................................................................................1-4
Oracle General Ledger Overview...................................................................................................................1-5
General Ledger Overview ..............................................................................................................................1-6
Functions and Features .................................................................................................................................1-7
General Ledger Accounting Cycle..................................................................................................................1-8
Implementation Considerations for Oracle Financials ....................................................................................1-9
The Best Project Team for the Job.................................................................................................................1-10
Critical Implementation Issues .......................................................................................................................1-11
Sharing a Set of Books across Oracle Applications .......................................................................................1-12
Interface InformationAccounting Entries .....................................................................................................1-13
Integrating with Subledgers............................................................................................................................1-15
Importing to General Ledger from Non-Oracle Applications...........................................................................1-16
Elements Required for a Set of Books ...........................................................................................................1-17
Multiple Companies within a Single Set of Books ..........................................................................................1-18
Multiple Companies Using Multiple Sets of Books .........................................................................................1-19
Journal Processing.........................................................................................................................................1-20
Foreign Currency Concepts ...........................................................................................................................1-21
Multiple Currency Accounting ........................................................................................................................1-22
Consolidating Multiple Companies within a Single Set of Books....................................................................1-23
Consolidating Multiple Companies with Multiple Sets of Books .....................................................................1-24
Budgeting .......................................................................................................................................................1-25
Reporting and Analysis ..................................................................................................................................1-26
Standard Reports and Listings .......................................................................................................................1-28
Financial Statement Generator Reports (FSG) ..............................................................................................1-29
Oracle Financial Analyzer ..............................................................................................................................1-30
Applications Desktop Integrator .....................................................................................................................1-31
Global Accounting Engine..............................................................................................................................1-33
Accounting Methods.......................................................................................................................................1-34
Accounting Differences ..................................................................................................................................1-35
Global Accounting Engine Features...............................................................................................................1-36
Summary........................................................................................................................................................1-38
Set of Books .....................................................................................................................................................2-1
Set of Books...................................................................................................................................................2-3
Objectives ......................................................................................................................................................2-4
Elements Required for a Set of Books ...........................................................................................................2-6
Steps for Creating a Set of Books ..................................................................................................................2-7
Multiple Books for Multiple Companies ..........................................................................................................2-9
Chart of Accounts Structure ...........................................................................................................................2-10
Accounting Calendar......................................................................................................................................2-11
Unlimited Currencies......................................................................................................................................2-12
Sharing a Set of Books Across Oracle Applications.......................................................................................2-13
Chart of Accounts...........................................................................................................................................2-14
Building the Chart of Accounts Structure .......................................................................................................2-15
Identifying Business Requirements ................................................................................................................2-16
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Identifying Segment Requirements ................................................................................................................2-17


Analyzing Reporting Requirements................................................................................................................2-19
Creating a Worldwide Chart of Accounts .......................................................................................................2-20
Worldwide Chart of Accounts Example ..........................................................................................................2-21
Creating Vertical Structures ...........................................................................................................................2-22
Validation and Value Sets ..............................................................................................................................2-23
Using Independent and Dependent Segments ..............................................................................................2-24
Designing Size and Numbering Systems .......................................................................................................2-26
Creating Accounting Flexfields.......................................................................................................................2-28
Defining Value Sets........................................................................................................................................2-29
Practice - Define a Value Set .....................................................................................................................2-31
Solution - Define a Value Set .....................................................................................................................2-32
Defining the Accounting Flexfield Structure ...................................................................................................2-34
Practice - Define Key Flexfield Segments ..................................................................................................2-37
Solution - Define Key Flexfield Segments ..................................................................................................2-39
Defining Segment Values...............................................................................................................................2-43
Populating Segment Value Attributes.............................................................................................................2-44
Segment Qualifiers.........................................................................................................................................2-45
Defining Hierarchies.......................................................................................................................................2-47
Working with Ranges .....................................................................................................................................2-49
Account Hierarchies .......................................................................................................................................2-50
Practice - Create Segment Values .............................................................................................................2-51
Solution - Create Segment Values .............................................................................................................2-54
Account Hierarchy Manager...........................................................................................................................2-60
Account Hierarchy ManagerSecurity ..........................................................................................................2-61
Defining an Accounting Calendar...................................................................................................................2-63
Defining Period Types....................................................................................................................................2-65
Defining Your First Accounting Period ...........................................................................................................2-66
Accounting Period Statuses ...........................................................................................................................2-67
Calendar Auditing...........................................................................................................................................2-69
Practice - Define an Accounting Calendar..................................................................................................2-70
Solution - Define an Accounting Calendar..................................................................................................2-71
Enabling Currencies.......................................................................................................................................2-73
Creating a Set of Books .................................................................................................................................2-74
How to Create a Set of Books ........................................................................................................................2-76
Set of Books Options .....................................................................................................................................2-77
Practice - Define a Set of Books ................................................................................................................2-79
Solution - Define a Set of Books ................................................................................................................2-80
Linking a Set of Books to a Responsibility .....................................................................................................2-82
Practice - Create Responsibility .................................................................................................................2-83
Solution: Create Responsibility ..................................................................................................................2-85
Enabling Account Combinations ....................................................................................................................2-88
Guided Demonstration - Create Account Combinations.............................................................................2-89
Segment Value Inheritance ............................................................................................................................2-90
Troubleshooting Segment Value Inheritance .................................................................................................2-92
Defining Flexfield Security Rules....................................................................................................................2-94
Practice - Define Flexfield Security Rules ..................................................................................................2-96
Solution - Define Flexfield Security Rules ..................................................................................................2-97
Using Dynamic Insertion ................................................................................................................................2-99
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Defining Cross-Validation Rules.....................................................................................................................2-100


Guided Demonstration - Define Cross-Validation Rules ............................................................................2-102
Practice - Define Cross-Validation Rules ...................................................................................................2-103
Solution - Define Cross-Validation Rules ...................................................................................................2-104
Defining Shorthand Aliases ............................................................................................................................2-106
Practice - Create Aliases............................................................................................................................2-108
Solution - Create Aliases............................................................................................................................2-109
Overview of Account Hierarchy Editor............................................................................................................2-111
Integrating with Oracle General Ledger .........................................................................................................2-112
Using the Account Hierarchy Editor ...............................................................................................................2-113
Using the Account Hierarchy Toolbar.............................................................................................................2-115
Account Hierarchy Editor Segment Symbols .................................................................................................2-117
Parent Levels in an Account Hierarchy ..........................................................................................................2-119
Creating New Child Values ............................................................................................................................2-120
Multiple Hierarchy Diagrams ..........................................................................................................................2-121
Guided Demonstration - Define a New Parent Segment ............................................................................2-122
Guided Demonstration - Define a New Child Segment ..............................................................................2-123
Saving and Refreshing Hierarchies................................................................................................................2-124
Guided Demonstration - Account Hierarchy Manager................................................................................2-125
Practice - Account Hierarchy Editor ...........................................................................................................2-126
Solution Account Hierarchy Editor...........................................................................................................2-128
Summary........................................................................................................................................................2-135
Basic Journal Entries ......................................................................................................................................3-1
Basic Journal Entries .....................................................................................................................................3-3
Objectives ......................................................................................................................................................3-4
Journal Entries and the Accounting Cycle......................................................................................................3-7
Integrating Journal Entries in Oracle eBusiness.............................................................................................3-8
Performing Journal Entry Functions ...............................................................................................................3-9
Journal Entry Types .......................................................................................................................................3-10
Journal Creation Methods ..............................................................................................................................3-11
Journal Components ......................................................................................................................................3-13
Grouping Journals into Batches .....................................................................................................................3-15
Manual Journal Entries ..................................................................................................................................3-17
Performing Additional Journal Actions ...........................................................................................................3-19
Practice - Journal Entry ..............................................................................................................................3-20
Solution - Journal Entry ..............................................................................................................................3-22
Posting Journals.............................................................................................................................................3-25
Practice - Post Journals (Required) ...........................................................................................................3-27
Posting to a Prior Period ................................................................................................................................3-28
Overview of AutoPost.....................................................................................................................................3-29
Defining AutoPost Criteria Sets......................................................................................................................3-30
Running AutoPost ..........................................................................................................................................3-32
Guided Demonstration - Post Using AutoPost ...........................................................................................3-33
Performing Online Inquiries for Accounts and Journal Entries .......................................................................3-34
Performing Account Inquiry ............................................................................................................................3-35
Reviewing Balances with Account Inquiry......................................................................................................3-37
Reviewing Variances Between Account Balance Types ................................................................................3-38
Drilling Down to Subledger Details.................................................................................................................3-39
T Accounts and Drilldown ..............................................................................................................................3-41
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Display Options Available While Viewing .......................................................................................................3-43


T Accounts .....................................................................................................................................................3-44
Activity Summary ...........................................................................................................................................3-46
Practice - Perform Account Inquiry.............................................................................................................3-47
Solution - Perform Account Inquiry.............................................................................................................3-48
Practice - View Accounting Information Using T-Accounts and Activity Summary .....................................3-50
Solution: View Accounting Information Using T-Accounts and Activity Summary ......................................3-51
Practice - Use Drilldown .............................................................................................................................3-54
Solution - Use Drilldown .............................................................................................................................3-55
Reversing Journal Entries ..............................................................................................................................3-58
Creating Reversing Journals ..........................................................................................................................3-59
Practice - Reverse Journal Entries.............................................................................................................3-60
Solution: Post Journal Entries ....................................................................................................................3-61
Reversing Journals Automatically ..................................................................................................................3-65
Journal Reversal Prerequisites ......................................................................................................................3-66
Journal Reversal Criteria................................................................................................................................3-67
Guided Demonstration - Define Reversal Criteria ......................................................................................3-69
Practice - Define Reversal Criteria .............................................................................................................3-71
Solution - Define Reversal Criteria .............................................................................................................3-72
Overview ........................................................................................................................................................3-75
ADI Elements .................................................................................................................................................3-76
Getting Started ...............................................................................................................................................3-78
ADI Toolbar ....................................................................................................................................................3-79
Signing On to ADI ..........................................................................................................................................3-81
Selecting an Applications Database...............................................................................................................3-82
Selecting a Responsibility ..............................................................................................................................3-83
Validation and Segment Security ...................................................................................................................3-84
Toolbar Options..............................................................................................................................................3-85
General Options .............................................................................................................................................3-87
Ledger Options...............................................................................................................................................3-93
Language Options..........................................................................................................................................3-101
Choosing Values from Lists ...........................................................................................................................3-102
Practice - ADI Customization and Settings.................................................................................................3-104
Solution - ADI Customization and Settings.................................................................................................3-106
Overview of Using ADI to Create Journal Entries...........................................................................................3-113
Integrating with Oracle General Ledger .........................................................................................................3-115
Getting Started with ADI Journal Wizard........................................................................................................3-116
Creating Journal Worksheets .........................................................................................................................3-117
Customizing Journal Worksheets...................................................................................................................3-119
Entering Data .................................................................................................................................................3-122
Uploading Journal Entries ..............................................................................................................................3-124
Practice - ADI Journal Entries ....................................................................................................................3-127
Solution - ADI Journal Entries ....................................................................................................................3-130
ADI Diagnostic Wizard ...................................................................................................................................3-139
ADI Performance Test Scenarios...................................................................................................................3-140
Excel Versions Supported..............................................................................................................................3-141
Profile Options................................................................................................................................................3-142
Other Uses of Journal Wizard in ADI .............................................................................................................3-145
Setting Up the ADI Journal Features..............................................................................................................3-146
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Setting Journal Profile Options for ADI...........................................................................................................3-147


Overview of Importing Journal Entries ...........................................................................................................3-149
Importing Descriptive Flexfields .....................................................................................................................3-151
Importing Journals..........................................................................................................................................3-152
Multi-Table Journal Import .............................................................................................................................3-154
Journal Import Group By Effective Dates Description ....................................................................................3-156
Journal Import Group By Effective Dates Benefits .........................................................................................3-157
How to Set Up Journal Import Group By Effective Dates ...............................................................................3-158
Using Journal Import Group By Effective Dates .............................................................................................3-159
Importing Journal References ........................................................................................................................3-160
Reviewing Journal Import Data ......................................................................................................................3-162
Journal Import Verification Process................................................................................................................3-163
Using Journal Entry Sources and Categories ................................................................................................3-165
Defining Suspense Accounts .........................................................................................................................3-167
Setting Up Statistical Entries ..........................................................................................................................3-169
Practice - Define Suspense and Statistical Accounts.................................................................................3-170
Solution - Define Suspense and Statistical Accounts.................................................................................3-171
Running Journal Entry Reports ......................................................................................................................3-172
Setting Profile Options ...................................................................................................................................3-174
Summary........................................................................................................................................................3-175
Summary Accounts .........................................................................................................................................4-1
Summary Accounts ........................................................................................................................................4-3
Objectives ......................................................................................................................................................4-4
Overview ........................................................................................................................................................4-5
Defining Summary Accounts ..........................................................................................................................4-7
Summary Account Examples .........................................................................................................................4-8
Detail Versus Summary Accounts..................................................................................................................4-10
Summary Accounts Versus Parent Values ....................................................................................................4-11
Parent Values and Rollup Groups..................................................................................................................4-12
Rollup Groups ................................................................................................................................................4-13
Summary Account Templates ........................................................................................................................4-14
Template Values ............................................................................................................................................4-15
Defining Summary Accounts ..........................................................................................................................4-16
Summary Account Creation Example ............................................................................................................4-17
Practice - Define Summary Account ..........................................................................................................4-18
Solution Define Summary Account..........................................................................................................4-20
Maintain Summary Accounts Overview..........................................................................................................4-23
Maintaining Summary Templates...................................................................................................................4-24
Guided Demonstration - Maintain Summary Templates Program ..............................................................4-26
Setting Budgetary Control ..............................................................................................................................4-27
Incremental Add/Delete Summary Templates Program .................................................................................4-30
Planning Summary Accounts .........................................................................................................................4-32
Determine Summary Account Needs .............................................................................................................4-33
Plan Summary Account Structure ..................................................................................................................4-35
Plan Values and Groups ................................................................................................................................4-41
Plan Summary Account Templates ................................................................................................................4-43
Summary........................................................................................................................................................4-44
Advanced Journal Entries...............................................................................................................................5-1
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Advanced Journal Entries ..............................................................................................................................5-3


Objectives ......................................................................................................................................................5-4
About Recurring Journals...............................................................................................................................5-5
Recurring Journal Types ................................................................................................................................5-6
Creating Recurring Journals ..........................................................................................................................5-7
Recurring Journal Entry Lines ........................................................................................................................5-8
Automatic Offset Example..............................................................................................................................5-9
Formula Recurring Journals ...........................................................................................................................5-10
Generating Recurring Journals ......................................................................................................................5-11
Guided Demonstration - Creating Recurring Journals................................................................................5-12
Practice - Creating Recurring Journals ......................................................................................................5-14
Solution - Creating Recurring Journals ......................................................................................................5-16
MassAllocations Overview .............................................................................................................................5-23
MassAllocations versus Recurring Journals...................................................................................................5-24
Steps to Create MassAllocation Journals.......................................................................................................5-25
Defining MassAllocation Journals ..................................................................................................................5-26
Defining MassAllocation Formulas .................................................................................................................5-28
Account Segment Types ................................................................................................................................5-30
Target and Offset Accounts ...........................................................................................................................5-31
MassAllocation Journal Example ...................................................................................................................5-32
MassAllocation Journals Example..................................................................................................................5-33
Rent Expense Example..................................................................................................................................5-34
Validating MassAllocation Journals................................................................................................................5-35
Generating Mass Allocation Journals.............................................................................................................5-36
Practice - Creating Mass Allocation Journals .............................................................................................5-37
Solution - Creating Mass Allocation Journals .............................................................................................5-39
AutoAllocations Overview ..............................................................................................................................5-43
AutoAllocation Workbench .............................................................................................................................5-44
Business Benefits of AutoAllocation Workbench............................................................................................5-45
AutoAllocation Workbench .............................................................................................................................5-46
AutoAllocation Set Types ...............................................................................................................................5-47
Step-Down AutoAllocations............................................................................................................................5-48
Parallel AutoAllocations .................................................................................................................................5-49
Additional Workbench Functionality ...............................................................................................................5-50
AutoAllocation Sets and Oracle Workflow......................................................................................................5-51
AutoAllocations and Oracle Workflow ............................................................................................................5-52
AutoAllocations Constraints ...........................................................................................................................5-53
Submitting AutoAllocation Set Requests........................................................................................................5-54
Reviewing the Status of AutoAllocations........................................................................................................5-55
Implementation Considerations for AutoAllocation Workbench......................................................................5-56
Practice - Creating a Step-down Allocation Set..........................................................................................5-57
Solution - Creating a Step-down Allocation Set..........................................................................................5-58
AutoScheduling Overview ..............................................................................................................................5-61
AutoScheduling Process ................................................................................................................................5-62
Financial Schedules .......................................................................................................................................5-63
Scheduling Journals.......................................................................................................................................5-65
Scheduling a Request Using a Financial Schedule........................................................................................5-66
Periodic Submissions.....................................................................................................................................5-67
Incremental Submissions ...............................................................................................................................5-68
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Implementation Considerations for Journal Entry Automations......................................................................5-69


Practice - Creating a Financial Schedule ...................................................................................................5-70
Solution - Creating a Financial Schedule ...................................................................................................5-71
GL Journal Approval Process Overview.........................................................................................................5-73
Journal Approval Features .............................................................................................................................5-74
Journal Approval Process ..............................................................................................................................5-75
Approval Methods ..........................................................................................................................................5-80
Journal Approval Prerequisites ......................................................................................................................5-81
Setting Up Journal Approval ..........................................................................................................................5-82
Summary........................................................................................................................................................5-84
Intercompany....................................................................................................................................................6-1
Intercompany .................................................................................................................................................6-3
Objectives ......................................................................................................................................................6-4
Balancing Intercompany Transactions for Multiple Companies within a Single Set of Books ........................6-5
Intercompany Balancing Options within a Single Set of Books ......................................................................6-6
Intercompany Segment ..................................................................................................................................6-8
Intercompany Entries .....................................................................................................................................6-9
Standard Intercompany Balancing .................................................................................................................6-10
Enhanced Intercompany Balancing................................................................................................................6-11
Intercompany Segment Balancing .................................................................................................................6-12
Clearing Companies.......................................................................................................................................6-13
Clearing Companies Using Enhanced Intercompany Accounting ..................................................................6-14
Using Intercompany Segments in the Clearing Model ...................................................................................6-16
Using Intercompany Segments in the Clearing Model (continued).................................................................6-17
Setup Steps for Intercompany........................................................................................................................6-20
Guided Demonstration - Set Up Intercompany Balancing ..........................................................................6-22
Practice - Intercompany Balancing Setup ..................................................................................................6-25
Solution - Intercompany Balancing Setup ..................................................................................................6-26
Summary........................................................................................................................................................6-27
Global Intercompany System..........................................................................................................................7-1
Global Intercompany System .........................................................................................................................7-3
Objectives ......................................................................................................................................................7-4
Global Intercompany System (GIS) Overview................................................................................................7-5
GIS Structure .................................................................................................................................................7-6
GIS Notifications ............................................................................................................................................7-7
Setting Up Global Intercompany System .......................................................................................................7-9
Setting Up GIS Subsidiaries...........................................................................................................................7-10
Subsidiary Privileges......................................................................................................................................7-12
Subsidiary Transfer Options...........................................................................................................................7-13
Defining Intercompany Transaction Types .....................................................................................................7-15
Specifying Intercompany Clearing Accounts ..................................................................................................7-17
GIS AutoAccounting.......................................................................................................................................7-18
Defining GIS AutoAccounting Rules...............................................................................................................7-19
Sender Clearing Rules ...................................................................................................................................7-21
Detailed Sender Clearing Rules .....................................................................................................................7-23
Receiver Distribution Rules ............................................................................................................................7-24
Detailed Receiver Distribution Account Rules ................................................................................................7-26
Receiver Clearing Rules ................................................................................................................................7-28
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Detailed Receiver Clearing Account Rules ....................................................................................................7-30


Performing GIS Transactions .........................................................................................................................7-31
Entering Intercompany Transactions..............................................................................................................7-32
Entering Manual Transactions (Sender).........................................................................................................7-33
Run Intercompany Transfer Program.............................................................................................................7-35
Intercompany Transactions Detail Report ......................................................................................................7-36
Summary........................................................................................................................................................7-37
Financial Budgeting.........................................................................................................................................8-1
Financial Budgeting........................................................................................................................................8-3
Objectives ......................................................................................................................................................8-4
What Is a Budget?..........................................................................................................................................8-6
What Is an Oracle Budget? ............................................................................................................................8-7
Available Budget Methods .............................................................................................................................8-8
Anatomy of a BudgetOverview ...................................................................................................................8-9
Budget Accounting Cycle ...............................................................................................................................8-10
Creating a Budget ..........................................................................................................................................8-12
Budget Definition Steps..................................................................................................................................8-13
Budget Hierarchies.........................................................................................................................................8-14
Define a Budget .............................................................................................................................................8-15
Open Budget Year .........................................................................................................................................8-16
Master-Detail Budgets....................................................................................................................................8-17
Budgets Using FSG Reports ..........................................................................................................................8-18
Multiple Versions of a Budget.........................................................................................................................8-19
Practice - Define a Budget .........................................................................................................................8-20
Solution - Define a Budget .........................................................................................................................8-21
Practice - Define a Master/Detail Budget ...................................................................................................8-22
Solution - Define a Master/Detail Budget ...................................................................................................8-23
Define Budget Organizations .........................................................................................................................8-24
Features of Budget Organizations..................................................................................................................8-25
Budget Organization Window.........................................................................................................................8-26
AutoCopy Budget Organizations ....................................................................................................................8-27
Assign Account Ranges .................................................................................................................................8-28
Add/Change Account Ranges ........................................................................................................................8-29
Remove Account Ranges ..............................................................................................................................8-30
Delete a Budget Organization ........................................................................................................................8-31
Practice - Define a Budget Organization ....................................................................................................8-32
Solution - Define a Budget Organization ....................................................................................................8-34
Budget Entry Methods....................................................................................................................................8-38
Journals Created?..........................................................................................................................................8-40
Budget Entry Modes.......................................................................................................................................8-41
Entering Budget Amounts ..............................................................................................................................8-42
Budget Rules..................................................................................................................................................8-43
Budget Rules and Your Calendar...................................................................................................................8-44
Budget Journals Process ...............................................................................................................................8-45
Entering Budget Journals ...............................................................................................................................8-46
Budget Journal Features................................................................................................................................8-47
Calculating and Translating Budget Amounts ................................................................................................8-48
Budget Translation Overview .........................................................................................................................8-49
Practice - Enter Budget Amounts ...............................................................................................................8-50
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Solution Enter Budget Amounts ..............................................................................................................8-51


Practice - Enter a Budget Journal ..............................................................................................................8-55
Solution Enter a Budget Journal..............................................................................................................8-56
Transfer Budget Overview .............................................................................................................................8-59
Transfer Budget Process ...............................................................................................................................8-60
Transfer Budget Amounts Example ...............................................................................................................8-61
Transfer Budget Percentage Example ...........................................................................................................8-62
Transfer with Budgetary Control.....................................................................................................................8-63
Practice - Transfer Budget Amounts ..........................................................................................................8-65
Solution Transfer Budget Amounts .........................................................................................................8-66
Finalize Budgets.............................................................................................................................................8-70
Correcting Budgets ........................................................................................................................................8-71
Budget Journal Entries?.................................................................................................................................8-72
No Budget Journal Entries? ...........................................................................................................................8-73
Freeze Budgets..............................................................................................................................................8-74
Practice - Freeze a Budget.........................................................................................................................8-75
Solution Freeze a Budget........................................................................................................................8-76
Budget Inquiry Overview ................................................................................................................................8-78
Performing Account Inquiry ............................................................................................................................8-79
Reviewing Variances Between Account Balance Types ................................................................................8-80
Budget Inquiry Window ..................................................................................................................................8-81
Drilldown This Budget ....................................................................................................................................8-82
Query Detail Budgets and Violations Only .....................................................................................................8-83
Practice - Inquiry on Budget Accounts .......................................................................................................8-84
Solution Inquiry on Budget Accounts ......................................................................................................8-85
Practice - Perform Master Budget Inquiry ..................................................................................................8-90
Solution Perform Master Budget Inquiry..................................................................................................8-91
Two WizardsOverview................................................................................................................................8-93
Budget Wizard: Overview...............................................................................................................................8-94
Budget Wizard Key Benefits ..........................................................................................................................8-95
Tools to Update Budget Balances..................................................................................................................8-96
Entering Data .................................................................................................................................................8-97
Audit Trail Implications ...................................................................................................................................8-99
Creating Graphs.............................................................................................................................................8-100
Practice - Enter Budget Amounts with ADI.................................................................................................8-101
Solution Enter Budget Amounts with ADI ................................................................................................8-102
Budget Reporting Methods ............................................................................................................................8-109
Three Major Budget Reports ..........................................................................................................................8-110
Other Standard Reports .................................................................................................................................8-111
Financial Statement Generator ......................................................................................................................8-113
Application Desktop Integrator .......................................................................................................................8-114
Practice - Review a Budget Report ............................................................................................................8-115
Solution Review a Budget Report ...........................................................................................................8-116
Planning Your Budget Requirements .............................................................................................................8-118
Centralized or Distributed...............................................................................................................................8-119
Forecasting and What-if Scenarios ................................................................................................................8-120
Budget Entry Methods?..................................................................................................................................8-121
Budget Compatibility Across Sets of Books ..................................................................................................8-122
Oracle Financial Analyzer ..............................................................................................................................8-123
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Budgeting Tips and Techniques.....................................................................................................................8-124


Summary........................................................................................................................................................8-125
Multi-Currency..................................................................................................................................................9-1
Multi-Currency................................................................................................................................................9-3
Objectives ......................................................................................................................................................9-4
Overview of Multi-Currency ............................................................................................................................9-5
Foreign Currency Concepts ...........................................................................................................................9-6
Integrating with Subledgers............................................................................................................................9-7
Multiple Currency Accounting ........................................................................................................................9-8
Multiple Reporting Currencies Accounting .....................................................................................................9-9
Overview ........................................................................................................................................................9-10
Defining Currencies........................................................................................................................................9-11
The Euro in 2002 and Beyond .......................................................................................................................9-13
Conversion Overview .....................................................................................................................................9-14
Conversion Example ......................................................................................................................................9-15
Defining Conversion Rate Types....................................................................................................................9-16
Entering Daily Rates ......................................................................................................................................9-18
Practice - Define Currencies ......................................................................................................................9-19
Solution - Define Currencies ......................................................................................................................9-21
Practice - Foreign Currency Journal Batch.................................................................................................9-24
Solution Foreign Currency Journal Batch................................................................................................9-25
Revaluation Overview ....................................................................................................................................9-28
Revaluation Process ......................................................................................................................................9-29
Running Revaluation......................................................................................................................................9-30
Revaluation Example .....................................................................................................................................9-32
MRC Revaluation Against Primary Currency Description ..............................................................................9-33
MRC Revaluation Against Primary Currency Benefits ...................................................................................9-34
How to Set Up MRC Revaluation Against Primary Currency .........................................................................9-35
Using MRC Revaluation Against Primary Currency .......................................................................................9-36
MRC Revaluation Against Primary Currency Other Features ........................................................................9-37
Currency Rates Manager Description ............................................................................................................9-38
Currency Rates Manager Benefits .................................................................................................................9-40
Using Cross Rate Rules.................................................................................................................................9-41
Period Rates ..................................................................................................................................................9-42
Practice - Enter Period Rates.....................................................................................................................9-43
Solution - Enter Period Rates.....................................................................................................................9-44
Translation Overview .....................................................................................................................................9-45
Translation .....................................................................................................................................................9-47
Balances and Rates Used for Translation......................................................................................................9-48
Cumulative Translation Adjustment Account..................................................................................................9-49
Historical Rates ..............................................................................................................................................9-50
Translation with Historical Rates and Amounts ..............................................................................................9-51
Translating Owners' Equity Accounts.............................................................................................................9-53
Secondary Tracking Segment Description .....................................................................................................9-55
Secondary Tracking Segment Description (continued) ..................................................................................9-56
Secondary Tracking Segment Benefits ..........................................................................................................9-57
How to Set Up Secondary Tracking Segment ................................................................................................9-58
Using Secondary Tracking Segment..............................................................................................................9-60
Secondary Tracking Segment Closing and Translation Example..................................................................9-61
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Secondary Tracking Segment Revaluation Example ....................................................................................9-62


Automatically Assigned Rate Types...............................................................................................................9-63
Practice - Enter Historical Rates ................................................................................................................9-65
Solution - Enter Historical PRates ..............................................................................................................9-66
Foreign Currency Listings ..............................................................................................................................9-67
Foreign Currency Reports ..............................................................................................................................9-68
Multi-Currency Profile Options .......................................................................................................................9-70
Summary........................................................................................................................................................9-72
Consolidations .................................................................................................................................................10-1
Consolidations................................................................................................................................................10-3
Objectives ......................................................................................................................................................10-4
Overview of Consolidations............................................................................................................................10-5
Consolidation Tools........................................................................................................................................10-6
Consolidating Multiple Companies Sharing a Single Set of Books.................................................................10-7
Consolidating Multiple Companies with Multiple Sets of Books .....................................................................10-8
Global Consolidation System (GCS) Features and Benefits ..........................................................................10-9
Consolidating Data in Multiple Instances .......................................................................................................10-11
Interface Data Transformer (IDT) Description ................................................................................................10-13
Interface Data Transformer (IDT) Benefits .....................................................................................................10-14
Interface Data Transformer (IDT) Rule Set Description ................................................................................10-15
Interface Data Transformer String Function Example ...............................................................................10-16
Interface Data Transformer PL/SQL Function Example ................................................................................10-17
Interface Data Transformer Lookup Table Example......................................................................................10-18
Interface Data Transformer Steps ..................................................................................................................10-19
Other Uses for Global Consolidation System .................................................................................................10-20
Consolidation Workbench ..............................................................................................................................10-22
Using the State Controller ..............................................................................................................................10-25
State Controller Button Colors........................................................................................................................10-27
Guided Demonstration - Access Consolidations Workbench .....................................................................10-28
Defining a Consolidation Mapping..................................................................................................................10-29
Mapping Rules ...............................................................................................................................................10-31
Using Account Mapping Rules .......................................................................................................................10-32
Using Segment Mapping Rules......................................................................................................................10-33
Using Segment Rollup Rules .........................................................................................................................10-34
Defining a Consolidation Mapping Set ...........................................................................................................10-36
Consolidation Hierarchy Viewer .....................................................................................................................10-37
Guided Demonstration - Define Mapping Rules .........................................................................................10-39
Guided Demonstration - Create a Mapping Set .........................................................................................10-41
Preparing Subsidiary Data .............................................................................................................................10-42
Revaluation Process ......................................................................................................................................10-44
Translation .....................................................................................................................................................10-46
Transferring Subsidiary Data to Parent Set of Books.....................................................................................10-48
Guided Demonstration - Translate for Consolidations................................................................................10-50
Practice - Define a Consolidation Mapping ................................................................................................10-51
Solution - Define a Consolidation Mapping ................................................................................................10-52
Consolidation Tracking and Reversals...........................................................................................................10-55
Posting Consolidation Journal Entries............................................................................................................10-56
Guided Demonstration - Transfer a Consolidation Set...............................................................................10-57
Guided Demonstration - Post Consolidation Journals................................................................................10-58
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Practice - Post Consolidation Journal Entries ............................................................................................10-59


Solution - Post Consolidation Journal Entries ............................................................................................10-60
Global Consolidation System Cross Instance Data Transfer .........................................................................10-62
Cross Instance Data Transfer Security ..........................................................................................................10-64
Global Consolidation System Parallel Consolidation......................................................................................10-65
Creating Eliminating Entries ...........................................................................................................................10-66
Formula-Based Eliminations ..........................................................................................................................10-68
Automatic Intercompany Eliminations Program..............................................................................................10-69
Defining an Elimination Set ............................................................................................................................10-70
Source and Target Account Example.............................................................................................................10-72
Balancing Options for Eliminations.................................................................................................................10-73
Allow Out of Balance Journal .........................................................................................................................10-75
Balance with Net Difference ...........................................................................................................................10-76
Guided Demonstration - Define Elimination Set .........................................................................................10-77
Guided Demonstration - Generate Elimination Entries...............................................................................10-79
Practice - Create Elimination Sets..............................................................................................................10-80
Solution - Create Elimination Sets..............................................................................................................10-81
Practice - Generate Eliminations................................................................................................................10-84
Solution - Generate Eliminations................................................................................................................10-85
Consolidated Balances Inquiry.......................................................................................................................10-86
Performing Consolidated Balances Inquiry ...................................................................................................10-87
Running Consolidation Reports......................................................................................................................10-88
Creating Custom Consolidation Reports ........................................................................................................10-90
Guided Demonstration - Run Consolidation Reports .................................................................................10-91
Practice - Consolidation Report Using Consolidation Workbench..............................................................10-92
Solution - Consolidation Report Using Consolidation Workbench..............................................................10-93
Summary........................................................................................................................................................10-96
Period Close .....................................................................................................................................................11-1
Period Close ..................................................................................................................................................11-3
Objectives ......................................................................................................................................................11-4
The Accounting Cycle ....................................................................................................................................11-5
Period Close Checklist ...................................................................................................................................11-6
Overview of Importing Journal Entries ...........................................................................................................11-7
Journal Import Verification Process................................................................................................................11-9
Posting Journals.............................................................................................................................................11-11
Reconciling Subledger Data...........................................................................................................................11-13
Close the Subledgers.....................................................................................................................................11-14
P2P Close Processes ....................................................................................................................................11-16
Overview of the P2P Period Close .................................................................................................................11-18
Reconcile AP to GL........................................................................................................................................11-19
Reports ..........................................................................................................................................................11-20
Reports (Cont.)...............................................................................................................................................11-22
O2C Period Close Process ............................................................................................................................11-25
Overview of O2C Period Close Process ........................................................................................................11-26
Transferring Inventory and Receivables.........................................................................................................11-27
O2C Standard Reports...................................................................................................................................11-29
Reconciling Receivables Transactions, Receipts, and Customer Balances...................................................11-30
Mapping Receivables Transactions to General Ledger Categories ...............................................................11-32
GL Reconciliation Report for Cash Management ...........................................................................................11-33
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Project Close Cycle........................................................................................................................................11-34


Overview of Project Closing Cycles ...............................................................................................................11-35
Closing a PA Period .......................................................................................................................................11-38
Period-Closing Exception Reports .................................................................................................................11-39
Period Rates ..................................................................................................................................................11-40
Running Revaluation......................................................................................................................................11-41
Revaluation Example .....................................................................................................................................11-42
Accounting Calendar......................................................................................................................................11-43
Balance Sheet Close......................................................................................................................................11-44
Income Statement Close................................................................................................................................11-46
Historical Rates ..............................................................................................................................................11-48
Translation Overview .....................................................................................................................................11-49
Overview of Consolidations............................................................................................................................11-50
Global Consolidation System (GCS) Features and Benefits ..........................................................................11-52
Consolidating Sets of Books ..........................................................................................................................11-53
Reporting Options ..........................................................................................................................................11-54
Performing Account Inquiry ............................................................................................................................11-55
Helpful Closing Reports .................................................................................................................................11-56
Summary........................................................................................................................................................11-58
Financial Reporting..........................................................................................................................................12-1
Financial Reporting ........................................................................................................................................12-3
Objectives ......................................................................................................................................................12-4
Reporting Options ..........................................................................................................................................12-6
Online Inquiry .................................................................................................................................................12-7
When to Use Online Inquiry ...........................................................................................................................12-9
Standard Reports and Listings .......................................................................................................................12-10
When to Use Standard Reports .....................................................................................................................12-12
Financial Statement Generator Features .......................................................................................................12-13
FSG Hierarchical Security ..............................................................................................................................12-15
Defining Row Sets..........................................................................................................................................12-16
Define Column Sets .......................................................................................................................................12-17
When to Use FSG Reports ............................................................................................................................12-18
Applications Desktop Integrator Elements .....................................................................................................12-19
Applications Desktop Integrator Report Wizard.............................................................................................12-20
When to Use ADI Report Options ..................................................................................................................12-21
Oracle Financial Analyzer ..............................................................................................................................12-22
When to Use OFA ..........................................................................................................................................12-23
E-Business Intelligence..................................................................................................................................12-24
When to Use E-Business Intelligence ............................................................................................................12-26
Oracle Discoverer ..........................................................................................................................................12-27
When to Use Oracle Discoverer.....................................................................................................................12-28
RXi Reports Administration Tool Key Features ..............................................................................................12-29
When to Use RXi............................................................................................................................................12-30
Preparing Your FSG Report ...........................................................................................................................12-31
Building Basic Reports ...................................................................................................................................12-32
Financial Statement Generator ......................................................................................................................12-33
Steps for FSG Financial Reports....................................................................................................................12-35
Defining Row Sets..........................................................................................................................................12-36
Assigning Accounts........................................................................................................................................12-38
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Defining Calculations in Row Sets .................................................................................................................12-40


Reviewing Your Row Set Definitions..............................................................................................................12-41
Defining Ad Hoc Reports................................................................................................................................12-42
Practice - Define a Row Set (Required) .....................................................................................................12-43
Defining Column Sets ....................................................................................................................................12-45
Applying Column Set Relative Headings........................................................................................................12-47
Standard Column Sets ...................................................................................................................................12-49
Reviewing Your Column Set Definitions.........................................................................................................12-50
Practice - Define a Column Set (Required) ................................................................................................12-51
Row Set and Column Overrides.....................................................................................................................12-53
Defining and Requesting Financial Reports ...................................................................................................12-55
Handling Rounding Problems ........................................................................................................................12-56
Specifying Control Values ..............................................................................................................................12-57
Practice - Simple Overhead Report............................................................................................................12-59
Defining Content Sets ....................................................................................................................................12-60
Selecting Display Options ..............................................................................................................................12-61
Reviewing Your Content Set Definitions ........................................................................................................12-63
Practice- Create a Content Set ..................................................................................................................12-64
Defining Row Orders......................................................................................................................................12-65
Ranking Methods ...........................................................................................................................................12-66
Order by RankingDisplay Description.........................................................................................................12-67
Order by DescriptionDisplay Description ....................................................................................................12-68
Order by ValueDisplay Value......................................................................................................................12-69
Order by ValueDisplay Description.............................................................................................................12-70
Reviewing Your Row Order Detail Listing Report...........................................................................................12-71
Practice - Create a Financial Report ..........................................................................................................12-72
Copying Reports and Components ................................................................................................................12-73
Practice - Copy Report Objects..................................................................................................................12-74
Solution - Copy Report Objects..................................................................................................................12-75
FSG Report Prerequisites ..............................................................................................................................12-76
Enabling FSG Security...................................................................................................................................12-77
eXtensible Business Reporting Language (XBRL) Description ......................................................................12-78
XBRL Financial Reporting Benefits ................................................................................................................12-79
How to Set Up XBRL Financial Reporting......................................................................................................12-80
Run FSG Reports from Standard Request Submission .................................................................................12-82
Downloading Financial Reports......................................................................................................................12-83
Running Financial Report Sets.......................................................................................................................12-84
FSG Tips and Techniques .............................................................................................................................12-85
Setting FSG Options for General Ledger .......................................................................................................12-87
RXi Reports Administration Tool ....................................................................................................................12-89
Working with the Attribute Set Window ..........................................................................................................12-91
Modifying Attribute Sets .................................................................................................................................12-92
Guided Demonstration - Define Columns and Attribute Sets .....................................................................12-94
Defining Summary Details..............................................................................................................................12-100
Managing Access to RXi Reports and Attribute Sets .....................................................................................12-101
Generating RXi Reports .................................................................................................................................12-102
Generating RXi Report Output .......................................................................................................................12-104
Purging RXi Report Data................................................................................................................................12-105
Implementation Considerations for RXi..........................................................................................................12-106
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RXi Reports for 11i Oracle General Ledger ...................................................................................................12-107


Report Wizard Overview ................................................................................................................................12-108
Defining Report Features ...............................................................................................................................12-109
Creating a Report...........................................................................................................................................12-110
Report Wizard Toolbar ...................................................................................................................................12-111
Practice - ADI Reports ...............................................................................................................................12-113
Solution ADI Reports...............................................................................................................................12-115
Practice - ADI Trend Report .......................................................................................................................12-117
Solution ADI Trend Report ......................................................................................................................12-118
Updating Report Objects................................................................................................................................12-121
Practice - ADI Create Content Sets............................................................................................................12-122
Solution - ADI Create Content Sets............................................................................................................12-123
Setting Up Report Wizard ..............................................................................................................................12-125
Request Center Overview ..............................................................................................................................12-126
Request Center Icons and Tabs.....................................................................................................................12-127
Request Center Tabs .....................................................................................................................................12-130
Selecting a Report Type.................................................................................................................................12-131
Practice - ADI Publish a Report to a Spreadsheet .....................................................................................12-132
Solution ADI Publish a Report to a Spreadsheet.....................................................................................12-133
Selecting Publishing Options .........................................................................................................................12-136
Additional Publishing Options.........................................................................................................................12-138
Submission and Publishing Options...............................................................................................................12-139
Publishing a Financial Report ........................................................................................................................12-140
Overview of Web Publishing ..........................................................................................................................12-141
Publishing a Financial Report to the Web ......................................................................................................12-142
Practice - ADI Publish a Report to the Web ...............................................................................................12-143
Solution ADI Publish a Report to the Web..................................................................................................12-144
Formatting Reports ........................................................................................................................................12-146
Using Cell Level Formatting ...........................................................................................................................12-147
Viewing Report Output and Logs ...................................................................................................................12-149
Setting Request Center Options.....................................................................................................................12-150
Overview of Analysis Wizard..........................................................................................................................12-152
Analysis Wizard Features ..............................................................................................................................12-153
How to Start Analysis Wizard .........................................................................................................................12-154
Analysis Wizard Toolbar ................................................................................................................................12-155
Analysis Wizard Drilldown Flows....................................................................................................................12-156
Using Dimensions and Display Options .........................................................................................................12-157
Guided Demonstration - Drill Down and Move Dimensions........................................................................12-158
Viewing Your Exported Data ..........................................................................................................................12-159
Setting Up Analysis Wizard ............................................................................................................................12-160
Summary........................................................................................................................................................12-162

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Preface
Profile
Before You Begin This Course

Thorough knowledge of <insert information specific to this course>

Working experience with <insert information specific to this course>


Prerequisites

<insert prerequisites from the course description, including any suggested preparation
courses>

<if there are no prerequisites, insert the following sentence:> There are no
prerequisites for this course.
How This Course Is Organized
This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations
and written practice sessions reinforce the concepts and skills introduced.

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Related Publications
Oracle Publications
Title

Additional Publications

System release bulletins

Installation and users guides

Read-me files

International Oracle Users Group (IOUG) articles

Oracle Magazine

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Part Number

Typographic Conventions
Typographic Conventions in Text
Convention
Bold italic
Caps and
lowercase

Courier new,
case sensitive
(default is
lowercase)

Initial cap

Element
Glossary term (if
there is a glossary)
Buttons,
check boxes,
triggers,
windows
Code output,
directory names,
filenames,
passwords,
pathnames,
URLs,
user input,
usernames

Arrow
Brackets
Commas

Graphics labels
(unless the term is a
proper noun)
Emphasized words
and phrases,
titles of books and
courses,
variables
Interface elements
with long names
that have only
initial caps;
lesson and chapter
titles in crossreferences
SQL column
names, commands,
functions, schemas,
table names
Menu paths
Key names
Key sequences

Plus signs

Key combinations

Italic

Quotation
marks

Uppercase

Example
The algorithm inserts the new key.
Click the Executable button.
Select the Cant Delete Card check box.
Assign a When-Validate-Item trigger to the ORD block.
Open the Master Schedule window.
Code output: debug.set (I, 300);
Directory: bin (DOS), $FMHOME (UNIX)
Filename: Locate the init.ora file.
Password: User tiger as your password.
Pathname: Open c:\my_docs\projects
URL: Go to http://www.oracle.com
User input: Enter 300
Username: Log on as scott
Customer address (but Oracle Payables)

Do not save changes to the database.


For further information, see Oracle7 Server SQL Language
Reference Manual.
Enter user_id@us.oracle.com, where user_id is the
name of the user.
Select Include a reusable module component and click Finish.
This subject is covered in Unit II, Lesson 3, Working with
Objects.

Use the SELECT command to view information stored in the


LAST_NAME
column of the EMP table.
Select File > Save.
Press [Enter].
Press and release keys one at a time:
[Alternate], [F], [D]
Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

Typographic Conventions in Code


Convention

Element

Example
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Caps and
lowercase
Lowercase

Oracle Forms
triggers
Column names,
table names

When-Validate-Item

Passwords

DROP USER scott


IDENTIFIED BY tiger;
OG_ACTIVATE_LAYER
(OG_GET_LAYER (prod_pie_layer))

SELECT last_name
FROM s_emp;

PL/SQL objects

Lowercase
italic
Uppercase

CREATE ROLE role

Syntax variables

SQL commands and SELECT userid


FROM emp;
functions

Typographic Conventions in Oracle Application Navigation Paths


This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:
1.

(N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.

2.

(M) From the menu, select Query then Find.

3.

(B) Click the Approve button.

Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab

Typographical Conventions in Oracle Application Help System Paths


This course uses a navigation path convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example
(Help) General Ledger > Journals > Enter Journals
represents the following sequence of actions:
1.

In the navigation frame of the help system window, expand the General Ledger entry.

2.

Under the General Ledger entry, expand Journals.


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3.

Under Journals, select Enter Journals.

4.

Review the Enter Journals topic that appears in the document frame of the help system
window.

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xxii

Oracle General Ledger


Process
Chapter 1

Copyright Oracle, 2009. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 1

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Oracle General Ledger Process


Chapter 1 - Page 2

Overview of the Oracle General Ledger Process

Copyright Oracle, 2009. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 3

Objectives

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Oracle General Ledger Process


Chapter 1 - Page 4

Oracle General Ledger Overview

Oracle General Ledger Overview


The Oracle General Ledger is the central repository of accounting information. The main
purpose of a general ledger system is to record financial activity of a company and to produce
financial and management reports to help people inside and outside the organization make
decisions.

Copyright Oracle, 2009. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 5

General Ledger Overview

General Ledger Overview


Oracle General Ledger is a comprehensive financial management solution that enables you to:
Record and Review Accounting Information
Import data from subsidiary ledgers, or enter journals to record actual or budget
transactions directly into Oracle General Ledger.
Enter encumbrance journals to track encumbrances through the purchase process and to
control spending against budgeted amounts.
Review account balances online or through reports.
Manipulate Accounting Information
Correct actual, budget, and encumbrance information.
Revalue and translate balances denominated in foreign currencies.
Consolidate balances from multiple sets of books.
Analyze Accounting Information
Integrate Oracle General Ledger with Oracle Financial Analyzer, Oracle Discoverer, or
Applications Desktop Integrator to simplify the budgeting and forecasting process.
Quickly prepare what if analyses and pro forma reports.
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Oracle General Ledger Process


Chapter 1 - Page 6

Functions and Features

Functions and Features


Information Access
Access information stored in the General Ledger through online inquiries or reporting
and analysis tools. Oracle General Ledger is the repository of your organization's
financial information.
Financial Controls
Use security features to control access to specific areas and functions of General Ledger.
Data Collection
Collect data from Oracle subledgers and non-Oracle feeder systems.
Financial Reporting and Analysis
Select from a variety of Standard Reports and Listings.
Use the Financial Statement Generator to build customized reports with reusable report
objects.
Use Applications Desktop Integrator Report and Analysis Wizards to build reports and
drilldown on balances within a spreadsheet environment.

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Oracle General Ledger Process


Chapter 1 - Page 7

General Ledger Accounting Cycle

General Ledger Accounting Cycle


1. Open period
2. Create/reverse journal entries
3. Post
4. Review
5. Revalue
6. Translate
7. Consolidate
8. Review/correct balances
9. Run accounting reports
10. Close accounting period

Copyright Oracle, 2009. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 8

Implementation Considerations for Oracle Financials

Implementation Considerations for Oracle Financials


Oracle Applications without customization:
Simplifies future upgrades
Saves time and money on upgrades
Simplifies patching
Reduces integration problems
Standardizes training
Oracle Applications with customizations and Legacy systems:
Increased costs of upgrades
Increased decisions in determining which systems to keep
Increased number of interfaces needed
Increased data management issues:
- What information is stored in GL or the Legacy system
- What data to migrate
- How to migrate data

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Oracle General Ledger Process


Chapter 1 - Page 9

The Best Project Team for the Job

The Best Team for the Job


To ensure success, the best client resources need to be assigned to the project team on a fulltime basis. The project team should include primary finance users as well as individuals
empowered to make decisions. With knowledgeable and empowered people, you achieve the
best implementation design in the shortest amount of time.
Appropriate training sessions should be scheduled early in the process to educate the project
team on important implementation considerations and familiarize them with basic navigation
and setup features.
End users should also be assigned to the project team and share in the responsibility for the
success of the new system. End users can then return to their departments as Super Users to
assist with training and help ease the transition to the new system.

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Oracle General Ledger Process


Chapter 1 - Page 10

Critical Implementation Issues

Critical Implementation Issues


Shared information
Oracle Applications share information to avoid redundancy, minimize setup time, and
keep systems synchronized.
Identify the key entities shared by Oracle Applications.
Define setup parameters required by multiple applications.
Information Flows
Record transactions once and pass them to the next business process.
Use Oracle Applications open interfaces to import transactions.
Open interfaces
Transfer data within Oracle Applications.
Import transactions from other applications into Oracle Applications.
Non-Oracle Systems
Obtain input from all business areas and applications that are affected by the
implementation.
Customize user input to include additional information using descriptive flexfields.
Copyright Oracle, 2009. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 11

Sharing a Set of Books across Oracle Applications

Sharing a Set of Books Across Oracle Applications


Oracle subledgers share the following from Oracle General Ledger:
Chart of accounts, value sets, segment values, security rules, and cross-validation rules
used to record the accounting for transactions.
Enabled currencies, conversion rate types, and daily rates used to convert foreign
currency transactions.
Calendar, periods and period types used as the basis for the subledger accounting periods.
Journal entry sources and categories used to record information about the origination and
purpose of transactions

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Oracle General Ledger Process


Chapter 1 - Page 12

Interface InformationAccounting Entries

Interface InformationAccounting Entries


Purchasing:
Accrual of receipts not invoiced, purchase orders, final close, cancellations Inventory:
Cycle count and physical inventory adjustments, receiving transactions, delivery
transactions, intercompany transfers, sales order issues, internal requisitions,
subinventory transfers, Cost of Goods Sold (COGS).
Work In Process:
Material issues or backflush to WIP, completions, returns, resource and overhead
transactions, cost update.
Oracle Financial Analyzer:
An automated way to load budgets, data from General Ledger.
Payroll:
Salary, deductions and taxes.
Projects:
Cost distribution of labor and non-labor, revenue.

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Oracle General Ledger Process


Chapter 1 - Page 13

Payables:
Invoices, payments, realized gain and loss, invoice price variance.
Assets:
Capital and construction in process asset additions, cost adjustments, transfers,
retirements, depreciation, reclassifications
Receivables:
Invoices, payments, adjustments, debit memos, credit memos, cash, chargebacks, realized
gain and loss

Copyright Oracle, 2009. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 14

Integrating with Subledgers

Integrating with Subledgers


Integration with Oracle Subledgers
Transferring information from Oracle subledgers is a two-step process:
Data is pushed into the GL_INTERFACE table from the subledger using a transfer
program.
Then Journal Import pulls the information from the interface table to create valid,
postable journal entries in General Ledger.
When you initiate the transfer program from Oracle subledgers, such as Oracle Payables or
Oracle Receivables, you can choose to also submit the Journal Import process. If you do not
choose to run Journal Import from the subledger, you must run Journal Import separately in
General Ledger, using the Import Journals window, in order to create postable journal entries.
Note: Oracle Assets transfers journal information directly to General Ledger to create unposted
journal entries in the batches, headers, and lines tables. You do not run Journal Import to
transfer asset information to General Ledger.

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Oracle General Ledger Process


Chapter 1 - Page 15

Importing to General Ledger from Non-Oracle Applications

Importing to General Ledger from Non-Oracle Applications


Journal Import
Use Journal Import to automatically import budget, actual, and encumbrance data from
your non-Oracle applications. You can create SQL Loader script to load the data into the
interface.
You can also check funds and reserve them for your imported transactions.
Applications Desktop Integrator (ADI)
You can enter data in a spreadsheet and upload to General Ledger:
- Prepare and analyze budgets.
- Prepare functional and foreign journal entries.

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Oracle General Ledger Process


Chapter 1 - Page 16

Elements Required for a Set of Books

Elements Required for a Set of Books


A set of books determines the functional currency, account structure, and accounting
calendar for each company or group of companies.
Each set of books has a number of options that indicate the accounting practices you want
to follow for that set of books.
Chart of Accounts
Define a chart of accounts structure based on your business, reporting, and statutory
requirements.
You can choose the number of account segments as well as the length, name, and order of
each segment.
Accounting Calendar
The accounting calendar defines an accounting year and the periods it contains.
You can define multiple calendars and assign a different calendar to each set of books.
Currency
You can select the functional currency for your set of books as well as other currencies
that you use to transact business.

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Oracle General Ledger Process


Chapter 1 - Page 17

Multiple Companies within a Single Set of Books

Multiple Companies Within a Single Set of Books


You can set up multiple companies that share the same functional currency, chart of accounts,
and calendar, in a single set of books.
When setting up the account structure for your set of books, use the segment representing your
companies as the balancing segment. This ensures that each company is always in balance,
which lets you easily maintain and report on multiple companies as stand-alone entities. Each
company can contain any number of divisions, departments, and cost centers that can be
subdivided into as many levels as needed.

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Oracle General Ledger Process


Chapter 1 - Page 18

Multiple Companies Using Multiple Sets of Books

Multiple Companies Using Multiple Sets of Books


You need multiple sets of books if one of the following is true:
You have companies that require different account structures to record information about
transactions and balances. For example, one company may require a 6-segment account,
while another needs only a 2-segment account structure.
You have companies that use different accounting calendars. For example, although
companies may share fiscal year calendars, you may want a weekly calendar for one
company and a monthly calendar for another.
You have companies that require different functional currencies. Consider business
activities and reporting requirements of each company. If you must present financial
statements in another country and currency, consider the accounting principles to which
you must adhere. Based on such considerations, choose the appropriate functional
currency for each set of books.
You use multiple Oracle Applications instances for your companies.

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Oracle General Ledger Process


Chapter 1 - Page 19

Journal Processing

Journal Processing
Within Oracle General Ledger, you can work with the following types of journal entries:
Manual Journal Entries
The basic journal entry type is used for most accounting transactions. Examples include
adjustments and reclassifications.
Reversing Journal Entries
Reversing journal entries are created by reversing an existing journal entry. You can
reverse any journal entry and post it to the current or any future open accounting period.
Recurring Journal Entries
Recurring journal entries are defined once, then are repeated for each subsequent
accounting period you generate. You can use recurring journal entries to define automatic
consolidating and eliminating entries. Examples include intercompany debt, bad debt
expense, and periodic accruals.
Mass Allocations
Mass Allocations are journal entries that utilize a single journal entry formula to allocate
balances across a group of cost centers, departments, divisions or other segments.
Examples include rent expense allocated by headcount or administrative costs allocated
by machine labor hours.
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Oracle General Ledger Process


Chapter 1 - Page 20

Foreign Currency Concepts

Foreign Currency Concepts


Conversion
Conversion refers to foreign currency transactions that are immediately converted at the
time of entry to the functional currency of the set of books in which the transaction takes
place.
Revaluation
Revaluation adjusts liability or asset accounts that may be materially understated or
overstated at the end of a period due to a fluctuation in the exchange rate between the
time the transaction was entered and the end of the period.
Translation
Translation refers to the act of restating an entire set of books or balances for a company
from the functional currency to a foreign currency.

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Oracle General Ledger Process


Chapter 1 - Page 21

Multiple Currency Accounting

Multiple Currency Accounting


Multiple Sets of Books
A set of books consists of the following elements: an accounting calendar, an account
structure, and currency. If one of these elements is different, you must create a separate
set of books.
Multiple Reporting Set of Books
Multiple Reporting Currencies (MRC) is beneficial for companies who must regularly
and routinely report its transactions and financial results in multiple currencies. With
MRC, you create a primary set of books then associate several reporting sets of books
with different currencies to that primary set of books. Daily transactions are entered in
the primary set of books. Then they are posted and transferred to the reporting sets of
books where the foreign currency transactions are converted to the reporting set of books
functional currency. If your companies do not need to routinely report transactions in
multiple currencies, you should maintain and process transactions independently in
separate sets of books.
Note: To use MRC, the primary and reporting sets of books must all share the same calendar
and chart of accounts structures.

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Oracle General Ledger Process


Chapter 1 - Page 22

Consolidating Multiple Companies within a Single Set of Books

Consolidating Multiple Companies within a Single Set of Books


Financial Statement Generator (FSG) can be used to consolidate companies in the following
scenarios:
Your companies share the same set of books. You simply need to enter the elimination
journal entries to eliminate any intercompany transactions, then run FSG reports in which
each company has its own column.
Your companies use different sets of books on the same database instance and share the
same chart of accounts and accounting calendar, but have different currencies. Because
FSG reports can be defined across sets of books, you can still use Financial Statement
Generator reports to create consolidated statements.
You can segregate eliminating entries by creating an elimination company.

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Oracle General Ledger Process


Chapter 1 - Page 23

Consolidating Multiple Companies with Multiple Sets of Books

Consolidating Multiple Companies with Multiple Sets of Books


The Global Consolidation System (GCS) is a complete solution for the multi-step
consolidation process. You can use GCS to consolidate multiple companies whose account
information is maintained in multiple sets of books.
The Global Consolidation System includes:
Sophisticated consolidation mapping rules
Multilevel drilldown capabilities to subsidiary balances
Powerful reporting capabilities
Graphical display of multilevel consolidation structures
Note: If you have average balance processing enabled and want to consolidate average
balances, you must use the Global Consolidation System.

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Oracle General Ledger Process


Chapter 1 - Page 24

Budgeting

Budgeting
Budgeting in Oracle General Ledger (GL)
Create an unlimited number of budgets or forecasts.
Control user access to budgets.
Create budget organizations to mirror the various levels of your company's organization
and to control user access to the budget information.
Create master-detail budgets.
Budgeting with Applications Desktop Integrator (ADI)
Enter budget amounts in the familiarity of a spreadsheet, then upload your budget data to
General Ledger.
Downloads both budget or actual amounts and use to calculating new budget amounts,
then be upload the new budget amounts into Oracle General Ledger.
Note: You can also use Oracle Financial Analyzer to update budget balances in General
Ledger. For more information, refer to the Oracle Financial Analyzer User Guide.

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Oracle General Ledger Process


Chapter 1 - Page 25

Reporting and Analysis

Reporting and Analysis


Online Account and Transaction Analysis:
Drilldown to account balances and journal entries to their source. For example, you can
drill down from a Payables journal entry to the original transaction in Oracle Payables.
Standard Reports and Listings:
Oracle General Ledger provides over 70 different standard reports and listings to help
you view financial and non-financial information.
Financial Statement Generator reports:
The Financial Statement Generator (FSG) is a powerful tool that allows you to create
custom financial statements without programming.
Applications Desktop Integrator Report Wizard:
With Report Wizard, you can define reports graphically in Excel, then upload the report
definitions to General Ledger as Financial Statement Generator (FSG) report objects.
You can also download existing FSG reports, modify them in Report Wizard, then save
the modified definition to General Ledger.

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Oracle General Ledger Process


Chapter 1 - Page 26

Applications Desktop Integrator Analysis Wizard:


The Analysis Wizard combines multidimensional analysis with report drilldown, within
Excel. You can select amounts from spreadsheet-based FSG reports and drill into the
underlying financial information within Oracle Applications.
Oracle Financial Analyzer:
Use Oracle Financial Analyzer, Oracle's On Line Analytical Processing (OLAP)
application, to perform in depth analysis, modeling, budgeting, reporting, and forecasting
functions using General Ledger data without additional data entry.

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Oracle General Ledger Process


Chapter 1 - Page 27

Standard Reports and Listings

Standard Reports and Listings


Oracle General Ledger provides several types of reports and listings to meet your business
needs. All of the information in these reports and listings is also available online.
You can obtain account analysis information, budget information, chart of accounts listing, and
many other types of data without customization.
Oracle General Ledger standard reports provide the following functionality:
Request reports online. Your report is generated and printed in the background while you
continue to work.
Group and submit reports into report sets to save time.
Schedule reports to run at regularly scheduled intervals.

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Oracle General Ledger Process


Chapter 1 - Page 28

Financial Statement Generator Reports (FSG)

Financial Statement Generator Reports (FSG)


You can define custom financial reports, such as income statements and balance sheets, online
with complete control over the rows, columns, and content of your report. You can control
account assignments, headings, descriptions, format, and calculations in addition to the actual
content. The reusable report components make building reports quick and easy. You can copy
a report component from one report, make minor edits, then apply the report component to a
new report without having to create a new report from scratch.

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Oracle General Ledger Process


Chapter 1 - Page 29

Oracle Financial Analyzer

Oracle Financial Analyzer


Oracle Financial Analyzer enables you to:
Analyze financial data collected by Oracle General Ledger.
Eliminate double maintenance. Data entered in General Ledger can be automatically
transferred for analysis in Oracle Financial Analyzer.
Selectively map General Ledger segments to Financial Analyzer dimensions.
Easily identify, analyze, model, budget, forecast, and report on information stored in
General Ledger.

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Oracle General Ledger Process


Chapter 1 - Page 30

Applications Desktop Integrator

Applications Desktop Integrator


Applications Desktop Integrator (ADI) interface allows users to create journal entries, perform
budget enter, and report creation, submission, publishing, and analysis within the familiarity of
an Excel spreadsheet environment.
Journal Wizard
Provides a spreadsheet-based journal entry worksheet to enter journal entries using full
Excel functionality and Oracle validation.
Budget Wizard
Creates a spreadsheet-based worksheet based on the budget and budget organization enter
in Oracle General Ledger to simplify budget data entry and modeling.
Report Wizard
Provides a spreadsheet-based interface to General Ledger's financial reporting engine, the
Financial Statement Generator (FSG).
Request Center
Submits and monitors your concurrent requests, automatically notifying you when your
financial reports, journal uploads, or budget uploads finish processing.
Analysis Wizard
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Oracle General Ledger Process


Chapter 1 - Page 31

Combines multidimensional analysis with report drill-down completely within Microsoft


Excel.
Account Hierarchy Editor
Presents the Oracle General Ledger parent/child account hierarchies in a graphical
format.
Provides a friendly interface to create new or modify of existing hierarchies and save
them back to Oracle General Ledger.

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Oracle General Ledger Process


Chapter 1 - Page 32

Global Accounting Engine

Global Accounting Engine


The Global Accounting Engine provides an accounting system for Oracle subledger
applications that satisfies legal and fiscal requirements in some countries.
The Global Accounting Engine replaces the Transfer to General Ledger program that is used in
subledger applications to transfer one subledger to one set of books. The Transfer to General
Ledger program transfers invoice and payment accounting information, for example, from the
subledger to Oracle General Ledger, where journal entries are accounted and stored.
With the Global Accounting Engine, journal entries are created and stored as well as accounted
for in the AX subledger before the journal entries are transferred to Oracle General Ledger.
Account balances are calculated for each control account by accounting period and third party
in the AX subledgers, which provides you with more flexibility to meet your accounting
requirements.

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Oracle General Ledger Process


Chapter 1 - Page 33

Accounting Methods

Accounting Methods
Many countries do not create accounting entries according to the Generally Accepted
Accounting Principles (GAAP) used in the United States.
For example, each European country had its own fiscally and legally binding accounting rules.
These accounting methods differ so significantly that similar business processes result in
different year-end results and required different reporting.

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Oracle General Ledger Process


Chapter 1 - Page 34

Accounting Differences

Accounting Differences
Because each country's legislation requires companies to create different accounting entries
and reports, a company with subsidiaries in five different countries can receive five different
year-end statements for identical business transactions. Country legislation differs in the way
that accounting entries are recorded for situations such as: Goodwill, research and
development, inventory valuation, leasing, deferred tax income, finance charges on inventory
or purchase, pension funds, and unrealized gains or loss on currency revaluating.
The Global Accounting Engine features address these differences for some European counties.

Copyright Oracle, 2009. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 35

Global Accounting Engine Features

Global Accounting Engine


Complying with Regulations of Certain European Countries
Some accounting entries are legal in one country but not in another. The Global
Accounting Engine lets you choose the right accounting practices for certain European
countries.
Defining Accounting Rules per Set of Books
Each set of books has its own accounting rules. The Global accounting engine generates
different accounting entries from the same business transaction into different sets of
books with different accounting rules.
Complying with Legal and Fiscal Audit Trail Requirements
The Global Accounting Engine creates entries in different sets of books so an entity can
report the same transaction in compliance with different legal and fiscal audit trail
requirements.

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Oracle General Ledger Process


Chapter 1 - Page 36

Reconciling your Subledger Accounting System with the Oracle General Ledger.
The Global Accounting Engine provides additional reports such as daily journal reports.
Reports are used when a company needs to match the amounts in the subledger such as
Payables or Receivables, with General Ledger.
Creating Journal Entries and Detailed Balances for Control Accounts
Control accounts are General Ledger accounts that you can access only from subledger
applications such as Payables and Receivables. The balances are calculated for each
account with the control account status and third party period and identification. A third
party can be a supplier in Payables or a customer in Receivables. The Global Accounting
Engine uses these structures to provide legal balance reports that are the same across all
applications.
Securing Subledger Accounting Entries
You can either secure accounts individually or secure the procedure to create accounting
entries. To secure subledger accounting entries, use control accounts to define accounts.
A control account is only accessible from the subledgers. Securing your entries ensures a
valid audit trail is on paper. The secured posting makes sure that you are only given
access to a range of steps involved in the posting cycle.
Using Online Drilldown to the Original Documents in the Subledgers and Country-Specific
Reporting.
You can use the Global Accounting Engine to drill down to the original transactions in
your subledgers as well as print reports corresponding to country-specific accounting
practices.

Copyright Oracle, 2009. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 37

Summary

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Oracle General Ledger Process


Chapter 1 - Page 38

Set of Books
Chapter 2

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Set of Books
Chapter 2 - Page 1

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Set of Books
Chapter 2 - Page 2

Set of Books

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Set of Books
Chapter 2 - Page 3

Objectives

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Set of Books
Chapter 2 - Page 4

Objectives

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Set of Books
Chapter 2 - Page 5

Elements Required for a Set of Books

Elements Required for a Set of Books


Chart of Accounts
Your chart of accounts is the account structure you define to fit the specific needs of your
organization.
You can choose the number of account segments as well as the length, name, and order of
each segment.
Accounting Calendar
An accounting calendar defines an accounting year and the periods it contains.
You can define multiple calendars and assign a different calendar to each set of books.
Currencies
You select the functional currency for your set of books as well as other currencies that
you use to transact business and report in.
General Ledger converts monetary amounts entered in a foreign currency to functional
currency equivalents using supplied rates.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 6

Steps for Creating a Set of Books

Steps for Creating a Set of Books


You must create a set of books for each entity that has a unique combination of currency,
calendar, and chart of accounts. The steps are:
Evaluate your organizational structure and your business needs to plan your chart of
accounts.
Define your chart of accounts, including your account combinations.
Define your accounting period types and accounting calendar.
Optionally define a transaction calendar and valid business days for that calendar if you
plan to use average balance processing.
Define the functional currency for your set of books, or enable one of the predefined
International Standards Organization (ISO) currencies. You should also define or enable
any additional currencies you plan to use.
Define a set of books and assign a calendar, functional currency, and account structure. If
you need to report on account balances in multiple currencies, define additional sets of
books for your reporting currencies. If you plan to use average balance processing, you
must specifically enable average balance processing, assign a transaction calendar, and
define a Net Income account.
Assign your set of books to a responsibility in System Administration.
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Set of Books
Chapter 2 - Page 7

Define reporting responsibilities and assign each reporting set of books to a separate
responsibility in System Administration.
Define conversion rate types and enter daily rates, period rates, and period-average rates
to enter transactions in multiple currencies.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 8

Multiple Books for Multiple Companies

Multiple Books for Multiple Companies


Sharing a Set of Books
Multiple companies can share the same set of books when they have the same functional
currency, chart of accounts, and calendar.
When setting up the account structure for your set of books, use the segment representing
your companies as the balancing segment. This ensures that each company is always in
balance, making it easy for you to maintain and report on multiple companies as standalone entities, even when you maintain their accounting records in the same set of books.
Each company can contain any number of divisions or departments, which can be
subdivided into as many levels as needed.
Using Multiple Sets of Books
Each corporation can contain multiple sets of books.
Each set of books can contain multiple companies or other divisions such as department,
cost center, or territory.
Each corporation can maintain a primary set of books and up to eight reporting sets of
books to address dual/multi currency reporting requirements. For more information, refer
to the Oracle General Ledger User Guide or the 11i General Ledger Financial
Management Advanced Topic Multiple Reporting Currencies.
Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 9

Chart of Accounts Structure

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Set of Books
Chapter 2 - Page 10

Accounting Calendar

Accounting Calendar
Oracle General Ledger allows you to define multiple calendars and assign a different calendar
to each set of books. For example, you can use a monthly calendar for one set of books, and a
weekly calendar for another.

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Set of Books
Chapter 2 - Page 11

Unlimited Currencies

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Set of Books
Chapter 2 - Page 12

Sharing a Set of Books Across Oracle Applications

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 13

Chart of Accounts

Chart of Accounts
In Oracle General Ledger, you build a chart of accounts using Accounting Flexfields.
Flexible:
You can design a flexible account structure that meets your reporting needs and
anticipates the way you run your organization in the future.
Multiple Rollups:
You can summarize accounting information from multiple perspectives by creating rollup
groups.
Ranges:
With a well-planned account structure, you can use ranges to group accounts in reports,
specify security and cross-validation rules, define summary accounts and reporting
hierarchies.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 14

Building the Chart of Accounts Structure

Building the Chart of Accounts Structure


The decisions you make when designing your chart of accounts are very important.
Making changes in the future to the structure of your chart of accounts is difficult and not
recommended.
Plan carefully to create an account structure that meets the current needs of your
organization and anticipate future requirements.
Tailor your account structure for your industry and reporting requirements.
Choose the number of segments, as well as the length, name, and order of each segment.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 15

Identifying Business Requirements

Identifying Business Requirements


If all the detail for an item is contained in one application or a group of tightly integrated
applications, retain the detail in the application itself. Do not add extra segments to the
Accounting Flexfield structure for detail that is tracked in your subledgers. For example, if you
are using Oracle Projects, do not include a project segment in your Accounting Flexfield.
Conversely, if you capture details in multiple applications that all pass data to Oracle General
Ledger, consider including other elements, such as product, in the Accounting Flexfield.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 16

Identifying Segment Requirements

Identifying Segment Requirements


Keep each business dimension in a separate segment to avoid complicating your processing
and reporting.
Combining location and department into one segment may lead to difficulties when retrieving
data for the same department number across locations and restricting certain departments to
specific accounts.
Avoid having more than one meaning for each segment. Having more than one meaning can
make it difficult to default the segment, to isolate different data for reporting, and to logically
assign codes or numbers to segment values. For example, using one generic segment for
subaccount, project, and product elements make it impossible to analyze product sales by
individual project.
Consider creating extra segments to handle any future reporting requirements that may occur.
Consider data entry efficiency when ordering your segments.
Place segments with defaults at the beginning of your Accounting Flexfield, at the end, or both.
When the Accounting Flexfield window opens, the cursor is placed on the first blank, nondefaulted segment. Once users enter all the values for the blank segments, they can press the
Enter key to save their work.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 17

Use alpha characters only in parent account segments. Users can easily enter numerical child
value characters using the ten-key pad when they do not have to shift hand position for alpha
characters.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 18

Analyzing Reporting Requirements

Analyzing Reporting Requirements


Review reports currently produced outside of Oracle General Ledger either in stand-alone
systems or in spreadsheets. Determine if adding segments to your Accounting Flexfield, or
structuring your segment values in a certain way using parent/child hierarchies, allows you to
generate those reports directly from Oracle General Ledger.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 19

Creating a Worldwide Chart of Accounts

Creating a Worldwide Chart of Accounts


It is important to design a chart of accounts structure that can report effectively to meet
corporate business needs and comply with country specific regulations. How you accomplish
this depends on your organizations needs.
There are two possible approaches:
- Assign Account Ranges
- Allow Reporting Units to Define Segments.
Assign Account Ranges
For example, your department segment represents true cost centers, such as factories.
You assign a different range of accounts to each cost center to maintain detail
information by cost center.
- Factory 1: Assigned accounts 200 to 299
- Factory 2: Assigned accounts 300 to 399
- Factory 3: Assigned accounts 400 to 499

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Set of Books
Chapter 2 - Page 20

Worldwide Chart of Accounts Example

Worldwide Chart of Accounts Example


Allow Reporting Units to Define Segments
Establish general criteria for segments, but allow each reporting unit to define an
additional segment and values within its own set of books. For example, each factory
creates its own segment and values in the account structure but does not report detail
balance information for this segment to the parent company. The detail information
disappears upon consolidation.
- Factory 1:
Designates accounts 100 to 999 to represent distribution
channels in the subaccount segment.

Factory 2:
Designates accounts 100 to 999 to represent products in the
product segment.

Note: This method requires different sets of books for each unique Chart of Accounts.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 21

Creating Vertical Structures

Creating Vertical Structures


Consider summarizing your data according to your management structure.
Create a separate segment for the lowest level in the Accounting Flexfield.
Strive to use parent rollups within a single segment for reporting, rather than creating
additional segments in the Accounting Flexfield.
For example, a child value of Company reports to Western Region which reports to European
Division. Only Company is a posting level account in the Accounting Flexfield. Set up
Western Region as parent of Company and Western Division as parent of European Region.
If your company reorganizes frequently, use parent/child relationships for maximum
flexibility.
A child value can be in multiple parents. It is better to create new parent structures than to
modify existing structures because changes can effect historical reporting. For example, if the
Western Region contained five companies, reported year end results, and then had two more
companies moved into its child range, then historical reports run after the two additional
companies were added would show different results.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 22

Validation and Value Sets

Validation and Value Sets


Use independent validation when the meaning of a value does not depend on the value of
another segment.
Use dependent validation when the meaning of a value depends on the value of another
(independent) segment. The independent segment value determines the acceptable dependent
segment values.
Use table validation when the valid values already exist in a database table.
Points to Consider
If you are validating your value set against a non-Oracle database table, have your
System Administrator register the table with Oracle Application Object Library.
The validation type of an existing value set cannot be changed.
It is strongly recommended that you use independent validation type with Accounting
Key Flexfield segments. Parent values cannot be defined for dependent segments. The
dependent validation type limits ability to use parent values with MassAllocations,
MassBudgeting, and Financial Statement Generator (FSG).

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 23

Using Independent and Dependent Segments

Using Independent and Dependent Segments


Independent Segments
For Accounting Key Flexfields, use independent segments. Do not use the Dependent
validation type. It complicates parent/child hierarchies and limits the ability to use parent
values with reporting and mass allocation journal entries.
Dependent Segments
Dependent segments separate items that are closely related into individually identifiable
segments.
Account/subaccount is the most common use for independent/dependent segments
(account is the major classification and subaccount provides more detail within the
account).
With dependent segments, you must set up each combination of independent/dependent
values.
You do not need to set up cross-validation rules for independent/ dependent combinations
since you set up each combination individually. Sometimes setting up dependent
segments is preferable to maintaining extensive validation rules for combinations of two
segments which have many values with no ranges or logic for the valid combinations.

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Set of Books
Chapter 2 - Page 24

Dependent segments limit the values that appear on lists to the dependent values of the
independent segment chosen.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 25

Designing Size and Numbering Systems

Designing Size and Numbering Systems


Numeric and Alphanumeric Values
Numerics are preferable from a data entry perspective because users can use the ten key
pad. Sort order is clearer and ranges are easy to use.
Alphanumerics may have some logic and meaning to users. If you do use alphanumeric
codes, set up the codes in all uppercase to enable consistency and ease of sorting and
querying.
With an alphanumeric coding system, you can have alpha characters for parent values
and numeric codes for child values; this allows for visually distinguishing levels of your
hierarchy.
Regardless of whether you use numbers or alphanumeric characters, you must use the
char (character) format type.
Segment Sizes
To make data entry simpler, do not design the segments longer than needed. However,
consider your organization's growth requirements. If your organization currently has 30
departments, but plans to acquire more companies and expand its operations globally, a
two character segment size will only accommodate up to 99 different department values.
A three character segment size can accommodate up 999 different department values.
Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 26

If you limit segment descriptions to a maximum of 30 characters, your flexfield pop-up


window does not include a horizontal scroll bar.
Coding Schemes
Consider revising your existing coding schemas. Retaining the old logic of historic
numbering systems often places unnecessary constraints on the Oracle General Ledger
and may create ongoing processing, reporting, and maintenance problems.
As Oracle General Ledger often uses ranges, make certain that these ranges are broad
enough to create new values in logical sequences.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 27

Creating Accounting Flexfields

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 28

Defining Value Sets

Defining Value Sets


(N) Setup > Financials > Flexfields > Validation > Sets
What is a Value Set?
A value set defines the boundaries for the attributes that you assign to a key or descriptive
flexfield segment. Value sets control what types of values can be used as Accounting
Flexfield segment values. Value sets determine the attributes of your segments such as
length, zero-fill, right-justify, alphanumerics, and value security. Value sets also control
how validation is performed. For example, with independent validation, a list of values
must be created and used.
Assigning Value Sets to Segments
Assign one value set to each Accounting Flexfield segment.
Share the same value sets across multiple sets of books to facilitate consolidation.
You can use the same value set more than once within the same Accounting Flexfield
structure, as noted in the diagram above, where the same values set is used for the
Balancing and Intercompany segments.

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How to Define Value Sets


1. Open the Value Sets window.
2. Enter the following:
- Value Set Name
- Description
- List Type
- Security Type
- Format Type
- Maximum Size
- Validation Type
3. Save your work.
Note: Changing the attributes of a value set affects all of the Accounting Flexfield segments
using that value set.

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Practice - Define a Value Set


Tasks
In this practice you will learn how to define a value set.

Business Situation
Define three Value Sets using the information in the following table.
Value Set Name

XX_COMPANY

XX_COST CENTER

XX_ACCOUNT

Description

Company for Team XX

Cost Center for Team


XX

Account for Team XX

List Type

List of Values

List of Values

List of Values

Security Type

Hierarchical

Hierarchical

Hierarchical

Format

Char

Char

Char

Maximum Size

Uppercase Only

Yes

Yes

Yes

Validation Type

Independent

Independent

Independent

Assumptions

Use Vision database

Login information provided by your instructor

Replace XX with the number provided by your instructor


Use General Ledger, Vision Operations (USA) responsibility

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Chapter 2 - Page 31

Solution - Define a Value Set


Task
In this practice you will learn how to define a value set.
Solution
1. Open the Value Sets window.
(N) Setup > Financials > Flexfields > Validation > Sets
2. In the Value Set Name field, enter XX_COMPANY. For example, if the number assigned by
your instructor were 01, the value set name would be 01_COMPANY.
3. In the Description field, enter Company for Team XX.
4. In the List Type field, select List of Values.
5. Select Hierarchical Security.
6. Select Char for the Format Type.
7. Select the Uppercase Only check box.
8. Enter 2 in the Maximum Size field.
9. Select the Independent Validation Type.

10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Use the down arrow key to enter values for the Cost Center and Account Segments.
In the Value Set Name field, enter XX_COST_CENTER.
Enter Cost Center for Team XX as the description.
Select List of Values.
Select Security Type: Hierarchical Security.
Select Char for the Format Type.
Enter 3 in the Maximum Size field and select Uppercase Only.
Select the Uppercase Only check box.
Select the Independent Validation Type.
Save your work.
Use the down arrow key to enter values for the Account Segment.
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21.
22.
23.
24.
25.
26.
27.
28.

In the Value Set Name field, enter XX_ACCOUNT.


In the Description field, enter Account for Team XX.
Select Security Type: Hierarchical Security.
Select Char for the Format Type.
Enter 4 in the Maximum Size field.
Select Uppercase Only.
Select the Independent Validation Type.
Save your work.

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Chapter 2 - Page 33

Defining the Accounting Flexfield Structure

Defining the Accounting Flexfield Structure


How to Define Flexfield Structure
(N) Setup > Financials > Flexfields > Key > Segments
1. Open the Key Flexfield Segments window
2. Run a query to find:
- ApplicationOracle General Ledger
- Flexfield TitleAccounting Flexfield
3. Place your in the Title field on any line and select (I) New
4. Enter the following information:
- Code
- Title will automatically populate
- Description
- View Name
5. Save your work
6. (B) Segments
7. In the Segments Summary window, define the individual segments and the order in
which they appear
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8. Place your cursor on line one


9. (B) Open
10. In the Validation Region of the Segments window, place checks in the Required and
Security Enabled checkboxes
11. In the Sizes Region, enter sizes for Display, Description, and Concatenated Description
fields
12. Save your work
13. (B) Flexfield Qualifiers
14. Select Enabled
Each set of books can have its own Accounting Flexfield structure. Select the appropriate
symbol in the Segment Separator field.
Choose whether to enable dynamic insertion to allow new account combinations to be
entered. If dynamic insertion is not allowed, account combinations must be defined using
the GL Accounts window.
Choose to allow cross-validation rules to control the creation of account combinations.
You can also select to enable the flexfield structure and compile changes made to an
Accounting Flexfield.
Enter a name, description, column and segment number for each segment. Segment
numbers must be sequential for the accounting key flexfield, beginning with 1 (such as 1,
2, 3, ).
To prevent changes to the Accounting Flexfield structure definition, select the Freeze
Flexfield Definition check box.
Setting Validation Information for Segments
Assign a value set to each segment.
Always enable the flexfield security check box for each segment.
Enter a default value from the list of values, or enter another value.
Select the Required check box and the Displayed check box.
Selecting Different Sizes for the Segment Display
Choose the number of characters to be displayed for the flexfield segment value and its
description in the Display Size and Description Size fields.
In the Concatenated Description Size field, choose the number of characters to be
displayed for each segment value description that makes up the account combination.
Assigning Flexfield Qualifiers
In the Flexfield Qualifiers window, assign qualifiers to individual accounting key
flexfield segments:
- Natural Account: Each Accounting Flexfield structure must contain only one
natural account segment. When setting up the values, you will indicate the type of
account as Asset, Liability, Owner's Equity, Revenue, or Expense.
- Balancing Account: Each structure must contain only one balancing segment.
Oracle General Ledger ensures that all journals balance for each balancing segment.
- Cost Center: This segment is required for Oracle Assets. The cost center segment is
used in many Oracle Assets reports and by Oracle Workflow to generate account
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numbers. In addition, Oracle Projects and Oracle Purchasing also utilize the cost
center segment.
Intercompany: General Ledger automatically uses the intercompany segment in the
account code combination to track intercompany transactions within a single set of
books. This segment has the same value set and the same values as the balancing
segment.

Copyright Oracle, 2009. All rights reserved.

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Chapter 2 - Page 36

Practice - Define Key Flexfield Segments


Tasks
In this practice you will learn how to:

Define key flexfield segments

Freeze the flexfield definition

Business Situation
1.

Define Key Flexfield Segments.


In the Application field, query Oracle General Ledger and the Flexfield Title. Accounting
Flexfield and enter the following information:

Code

XX_ACCOUNTING_FLEXFIELD

Title

XX Accounting Flexfield

Description

XX Chart of Accounts

View Name

GL_AFF_XX_VIEW

Freeze Flexfield Definition

No

Enabled

Yes

Segment Separator

Period (.)

Cross-Validate Segments

Yes

Freeze Rollup Groups

No

Allow Dynamic Inserts

Yes

2.

Order each segment as follows:

Number

Name

Window

Column (List)

ValueSet (List)

Company

Company

SEGMENT1

XX_COMPANY

Cost Center

Cost Center

SEGMENT2

XX_COST CENTER

Account

Account

SEGMENT3

XX_ACCOUNT

Intercompany

Interco

SEGMENT4

XX_COMPANY

3.

Add the following additional information for each segment. To add the Flexfield Qualifiers,
save the segment and then select the Flexfield Qualifiers button.
Company

Cost Center

Account

Intercompany

Default Type

Constant

Default Value

00

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Required

Yes

Yes

Yes

Yes

Security Enabled

Yes

Yes

Yes

Yes

List of Values Prompt

CO

CC

ACCT

IC

Concatenated Description
Size

12

15

25

15

Flexfield Qualifier

Balancing

Cost Center

Natural Account

Intercompany

4.

Freeze and compile your Flexfield Definition.

Assumptions

Use Vision database

Login information provided by your instructor

Replace XX with the number provided by your instructor


Use General Ledger, Vision Operations (USA) responsibility

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Chapter 2 - Page 38

Solution - Define Key Flexfield Segments


Task

Define key flexfield segments

Freeze the flexfield definition

Solution
1. Open the Key Flexfield Segments window.
(N) Setup > Financials > Flexfields > Key > Segments
2. Use the Find Icon to select the Application called Oracle General Ledger and the Title,
Accounting Flexfield.
3. Position your cursor in the Title field and select the green + icon to insert a new record.

4.

Enter the following information:

Code

XX_ACCOUNTING_FLEXFIELD

Description

XX Chart of Accounts

View Name

GL_AFF_XX_VIEW

Freeze Flexfield Definition

No

Enabled

Yes

Segment Separator

Period (.)

Cross-Validate Segments

Yes

Freeze Rollup Groups

No

Allow Dynamic Inserts

Yes

5.

(B) Segments
Order the segments as follows:
Note: When you get an error message stating Your List of Values prompt is longer than
your segment size Select the OK button.
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Number

Name

Window Prompt

Column (List)

ValueSet (List)

Company

CO

SEGMENT1

XX_COMPANY

Cost Center

CC

SEGMENT2

XX_COST CENTER

Account

ACCT

SEGMENT3

XX_ACCOUNT

Intercompany

IC

SEGMENT4

XX_COMPANY

6.

(B) Open
Add the following additional information for each segment.
Compan
y

Cost Center

Account

Intercompan
y

Default Type (LOV)

Constant

Default Value

00

Required

Yes

Yes

Yes

Yes

Security Enabled

Yes

Yes

Yes

Yes

Concatenated Description
Size

12

15

25

15

List of Values Prompt

CO

CC

ACCT

IC

7.

To add the Flexfield Qualifiers, save the segment and then select the Flexfield Qualifiers
button to check the Enabled box on the corresponding qualifier.

Flexfield Qualifier

Compan
y

Cost Center

Balancing

Cost Center

Account
Natural Account

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Chapter 2 - Page 40

Intercompan
y
Intercompany

8.
9.

Close the Segments and Segment Summary windows.


Freeze the Flexfield Definition by selecting the Freeze Flexfield Definition checkbox on the
Key Flexfields Segments window and select OK to the warning message.
10. Select Compile and select the OK button to the warning messages. Select the Ok button on
all three messages.
Note: If you do not get three messages, inform your instructor.

Copyright Oracle, 2009. All rights reserved.

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Copyright Oracle, 2009. All rights reserved.

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Chapter 2 - Page 42

Defining Segment Values

Defining Segment Values


Use the Segment Values window to enter values for each segment you create. These are the
values that you use when building your account code combinations.
(N) Setup > Financials > Flexfields > Key > Values
Note: Create the segments and account structure before performing this step.

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Chapter 2 - Page 43

Populating Segment Value Attributes

Populating Segment Value Attributes


As you enter values for a value set in the Segment Values window, you also set the attributes
for those values.
If the value set has the type Translatable Independent or Translatable Dependent, the
Translated Value field is enabled and users can select the Translation icon to update the
translated value in all installed languages.
Select Parent to specify a parent value (an account segment value that references a number of
other segment values called child values). When entering parent values, optionally enter a
rollup group name and/or level.
Enable or disable values by selecting the enabled check box or by using the Date From and To
fields.

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Segment Qualifiers

Segment Qualifiers
When you define a segment value, you must also assign qualifiers for that value to
determine the account type, whether budgeting is allowed, whether posting is allowed,
and other information specific to that segment value. You must enter segment qualifier
information whenever you define segment values for any value set used to create an
Accounting Flexfield combination. Segment qualifiers vary by segment.
You can define the following segment qualifiers:
Allow Budgeting:
Enter Yes to perform detailed budgeting for accounts with this segment value. If set to
No, you cannot assign accounts with this segment value to budget organizations and you
cannot define budget formulas for those accounts. If you are defining a parent segment
value, you must enter No.
Allow Posting:
If set to No, you cannot use accounts with this segment value to enter journals If you are
defining a parent segment value, you must enter No because you cannot not post to parent
accounts.

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Account Type:
Defines the account type for the natural account segment value. You can enter only valid
account types. Enter the type of proprietary account (Asset, Liability, Owners' Equity,
Revenue, or Expense) or enter the type of budget account (Budgetary Dr or Budgetary
Cr). For statistical accounts, enter either Asset, Liability, or Owners' Equity. If you
choose an account type of Revenue or Expense for a statistical account segment value,
your statistical balance zeros-out at the end of the fiscal year. The default for this field is
Expense.
To change the Account Type for a value that has not been used, unfreeze all Accounting
Flexfield structures that reference the natural account segment. Changing the account type only
affects new accounts created after this change is made. Note: Please consult Oracle Support
before making a change to a value that has been used or has a balance to prevent problems.
Control Account:
Set to calculate account balances for third parties per period in subledger applications
such as Payables or Receivables.
Reconciliation Flag:
Used for localization and globalization requirements, set this flag to enable designated
accounts to be identified as reconciled when their balance is zero.
Note: When you define a value as a Parent, you can not budget or post to this value even if you
select the Budget Entry Allowed and Posting Allowed check boxes.

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Chapter 2 - Page 46

Defining Hierarchies

Defining Hierarchies
Child Segment Values
Post journals and enter budgets directly to child segment values. Assign ranges of
children to "parents".
Parent Segment Values
Use parents to sum the balances of associated child accounts. Any segment that has
children beneath it - even if that segment has its own parent above it - is considered a
parent by Oracle General Ledger. You cannot post journals or enter budgets directly for
parent segment values. Assign ranges of child values to parent values to create
summations for running reports, MassAllocations, or MassBudgeting.
You can create parent segment values for independent segments, but there are limitations
when used with dependent segments. The Dependent validation type limits using parent
values with MassAllocations, MassBudgeting, and Financial Statement Generator (FSG).
The only parent value available for dependent segments is an all inclusive parent that
includes all the values of the value set.

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Technical Note:
Summary accounts may use the segment value 'T' in one or more of the segments,
therefore, define the segment value "T" for every Accounting Flexfield segment if you
are planning to create summary accounts. The value 'T' is also a parent value even though
its children are not specifically assigned. Note: Char must be used as the format type for
all segments of the accounting key flexfields because of the value "T".

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Chapter 2 - Page 48

Working with Ranges

Working with Ranges


Enter the ranges of child values for each parent.
Specify a range type of Child or Parent.
When using the Child type, any child values that fall within the specified range are
considered children of the parent value.
When using the Parent type, any parent values that fall within the specified range are
considered children of the parent value.
Moving Ranges
Move a range of child values from one parent to another parent value.
If the child moved is also a parent, its children are moved automatically.
Viewing Hierarchies
View the hierarchy structure to which the selected value belongs.

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Chapter 2 - Page 49

Account Hierarchies

Account Hierarchies
Use various flexible parent/child account hierarchies to view your business according to
product lines, geographical regions, organizational lines, or any other combination of
factors you deem important.
Create your hierarchy with as many vertical and horizontal levels as you need to
effectively analyze your business or business segment. It is better to create new parent
structures than to modify existing structures because changes can effect historical
reporting.
Note: Oracle General Ledger treats all segment values that have the Parent check box selected
as parents even if they don't have children assigned and does not allow direct posting or
budgeting to these values.

Copyright Oracle, 2009. All rights reserved.

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Chapter 2 - Page 50

Practice - Create Segment Values


Tasks
In this practice you will learn how to:

Create Segment Values

Define parent-child hierarchies

Business Situation
Create Segment Values
1. Open the Segment Values window and query the Key Flexfield values based on the
following information.
Field Name

Information

Application

Oracle General Ledger

Title

Accounting Flexfield

Structure

XX_ACCOUNTING_FLEXFIELD

2.

Enter the following information for the Company Segment. Be sure to tab through
completely.
Value

Description

Enabled

Allow Budgeting/Posting

00

Corporate

Yes

Yes, Yes

01

US Ops

Yes

Yes, Yes

02

CAD Ops

Yes

Yes, Yes

3.

Enter the following values for the Cost Center segment.


Value

Description

Enabled

Allow Budgeting/Posting

000

Unspecified

Yes

Yes, Yes

110

Admin

Yes

Yes, Yes

210

Sales

Yes

Yes, Yes

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4.

Enter the following values for the Account segment.


Value

Description

Parent

Budget/Post

Account Type

1000

Cash

Yes, Yes

Asset

1200

Accounts Receivable

Yes, Yes

Asset

2000

Accounts Payable

Yes, Yes

Liability

3310

Retained Earnings

Yes, Yes

Ownership/Stock

3510

Translation Adjustment

Yes, Yes

Ownership/Stock

PREV

Parent Revenue

No, No

Revenue

4010

Sales Revenue

Yes, Yes

Revenue

4020

Training Revenue

Yes, Yes

Revenue

PEXP

Parent Expense

No, No

Expense

5010

Sales Expense

Yes, Yes

Expense

5020

Training Expense

Yes, Yes

Expense

9920

Default Suspense

Yes, Yes

Expense

9930

Default Intercompany

Yes, Yes

Expense

9940

Override Suspense

Yes, Yes

Expense

9950

Override Intercompany Debit

Yes, Yes

Expense

9960

Override Intercompany Credit

Yes, Yes

Expense

Yes

Yes

Note: Accept the defaults of No in the Control Account and Reconciliation Flag unless
otherwise instructed by your instructor.

Reconciliation Flag: GL Entry Reconciliation is a set of windows and reports that let
you selectively cross-reference transactions in General Ledger.

Control Accounts: This type of account is used in subledgers such as Payables or


Receivables. Control accounts are used to maintain special balances for third parties
per period.

5.

The Fourth segment uses the same value set and values as the Company segment so
no values need to be entered.
Define Parent Child Hierarchies
Parent
Value

Account
Low

Account
High

Child Values Only or Parent Values Only

PREV

4001

4999

Child Values Only

PEXP

5001

5999

Child Values Only

Note: Selecting Child Values Only will ignore all parent values in the range. Selecting
Parent Values Only will ignore all unassigned child values in the range that are not
assigned to a parent value.

Assumptions

Use Vision database

Login information provided by your instructor


Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 52

Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

Copyright Oracle, 2009. All rights reserved.

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Chapter 2 - Page 53

Solution - Create Segment Values


Task

Create Segment Values


Define parent-child hierarchies

Solution
1. Open the Segment Values window.
(N) Setup > Financials > Flexfields > Key > Values
2. Select Key Flexfield in the Find Values By region.
3. Select the following information from the list of values and select the Find button.
Application

Oracle General Ledger

Title

Accounting Flexfield

Structure

XX_ACCOUNTING_FLEXFIELD

4.
5.

In the Segment Values window, Title and Structure will default in.
Verify in the Independent Segment field, that the Company segment appears. If not, use the
up and down arrows to move between the segments until you locate the Company
segment.
In the Values, Effective tab, enter following information for the Company segment. Ensure
you tab through all fields.
Save your work.

6.
7.

Value

Description

Enabled

Qualifiers:
Allow Budgeting/Posting

00

Corporate

Yes

Yes, Yes

01

US Ops

Yes

Yes, Yes

02

CAD Ops

Yes

Yes, Yes

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Chapter 2 - Page 54

8. Place your cursor in the Independent Segment field and down arrow to Cost Center.
9. Enter the following information for the Cost Center segment.
10. Save your work.
Value
000

Description
Unspecified

Enabled
Yes

Qualifiers:
Allow Budgeting/Posting
Yes, Yes

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Chapter 2 - Page 55

110

Admin

Yes

Yes, Yes

210

Sales

Yes

Yes, Yes

310

Facilities

Yes

Yes, Yes

410

Engineering

Yes

Yes, Yes

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Chapter 2 - Page 56

11. Place your cursor in the Independent Segment field and arrow down to Account.
12. Enter the following values for the Account segment.
13. Save your work.
Value

Description

Parent

Budget/Post

Account Type

1000

Cash

Yes, Yes

Asset

1200

Accounts Receivable

Yes, Yes

Asset

2000

Accounts Payable

Yes, Yes

Liability

3310

Retained Earnings

Yes, Yes

Ownership/Stock

3510

Translation Adjustment

Yes, Yes

Ownership/Stock

PREV

Parent Revenue

No, No

Revenue

4010

Sales Revenue

Yes, Yes

Revenue

4020

Training Revenue

Yes, Yes

Revenue

PEXP

Parent Expense

No, No

Expense

5010

Sales Expense

Yes, Yes

Expense

5020

Training Expense

Yes, Yes

Expense

PSPE

Parent Special Expense

No, No

Expense

6010

GL Training Travel

Yes, Yes

Expense

6020

GL Training Supplies

Yes, Yes

Expense

9920

Default Suspense

Yes, Yes

Expense

9930

Default Intercompany

Yes, Yes

Expense

9940

Override Suspense

Yes, Yes

Expense

9950

Override Intercompany Debit

Yes, Yes

Expense

9960

Override Intercompany Credit

Yes, Yes

Expense

Yes

Yes

Yes

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14. To define Parent Child Hierarchies, in the Segment Values window, place your cursor in the
Value field PREV.
15. Select (B) Define Child Ranges
16. Enter the following information.
17. Save your work and review the messages that are displayed.
Parent Value

From Account Low

To Account
High

Child Values Only


or Parent Values Only

PREV

4001

4999

Child Values Only

PEXP

5001

5999

Child Values Only

PSPE

6001

6999

Child Values Only

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Chapter 2 - Page 58

Note: Accept the defaults of No in the Control Account and Reconciliation Flag unless
otherwise instructed by your instructor.

Reconciliation Flag: GL Entry Reconciliation is a set of windows and reports that let
you selectively cross-reference transactions in General Ledger.

Control Accounts: This type of account is used in subledgers such as Payables or


Receivables. Control accounts are used to maintain special balances for third parties
per period.

The Fourth segment uses the same value set and values as the Company segment so
no values need to be entered.

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Chapter 2 - Page 59

Account Hierarchy Manager

Planning Hierarchies
Plan your hierarchies carefully. When you create and save Parent and Child segment values,
they become permanent. You cannot change or delete Parent or Child segment values using the
Account Hierarchy Manager or Oracle General Ledger. You can only disable them. Disabled
segment values are displayed in the Account Hierarchy Manager as greyed out.
If you are creating large hierarchies, creating numerous parents and children, or managing the
attributes of many parents and children, you can use a spreadsheet template as a planning aid.
Model your spreadsheet template after the grid format in the Attributes window. Enter the
appropriate data in the cells. You can use your template to guide you when making changes in
the Account Hierarchy Manager. You can copy and paste entries from your template into the
Attributes window, one field at a time for the Value, Description, From, and To fields. The
date format you enter in your template must follow the MMDDYYYY format.

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Chapter 2 - Page 60

Account Hierarchy ManagerSecurity

Account Hierarchy ManagerSecurity


(N) Setup > Accounts > Manager
The Account Hierarchy Manager has security rules that work together. You can control read
only or read/write access and control access to hierarchies, segment values, and charts of
accounts.
Read Only, Read/Write Security
- Read Only Disables you from modifying or saving hierarchies or segment values
and parameters. You can only query, view hierarchy, view details, and export to a
tab delimited files. Read Only is displayed in the title bar of the Account Hierarchy
Manager.
- Read/Write Security Gives you read/write access to all segment values in the
Chart of Accounts. Segment Value Security may limit the segment values you can
access.
Segment Value SecurityAn Oracle Applications feature that lets you exclude a
segment value or ranges of segment values for a specific user responsibility. Segment
Value Security is extended to the Account Hierarchy Manager.

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Chart of Accounts SecurityYou have access to those charts of accounts associated with
your user responsibility. If you need access to charts of accounts not available to you, see
your system administrator.

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Defining an Accounting Calendar

Defining an Accounting Calendar


Account Calendar Considerations
Define at least one year at a time. By setting up your periods in advance, you can reduce
the amount of period maintenance at the start of each accounting period.
Foreign currency translations cannot be performed in the initial period opened for your
set of books.
Choose the earliest period carefully. After you open the first accounting period, prior
periods cannot be opened.
Set up the number of periods you want to budget for, up to a maximum of 60 periods.
When the next accounting period is opened, Oracle General Ledger rolls account
balances forward to that period.
How to Define an Accounting Calendar
(N) Setup > Financials > Calendar > Accounting
Open the Accounting Calendar window
Enter the following information:
- Calendar: Accounting Demo
- Description: Standard Calendar
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Enter the following information to add the periods that make up the calendar year:
Prefix
Type Year Quarter
Num From
To
Name
Jan
Month 2003
1
1
01-JAN-2003 31-JAN-2003 Jan-03
Feb
Month 2003
1
2
01-FEB-2003 28-FEB-2003 Feb-03
Notice the Adjustment box to designate an adjusting period.
Save your work
Close the Accounting Calendar window. A decision window appears whenever you close
the Accounting Calendar window after creating or editing a calendar. Select the Current
button to validate the calendar you just created.
(B) OK
Find your request in the Requests window and select the View Output button to find out
if there were any errors in the calendar you just created
The Calendar Validation Report identifies if there are missing periods for this calendar

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 64

Defining Period Types

Defining Period Types


Oracle General Ledger uses the year type to determine the year to assign to a period name in
the accounting period system. When defining new period types:
Choose Calendar to use the year in which an accounting period begins for the period
name.
Choose Fiscal to use the year in which your fiscal year ends for the period name.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 65

Defining Your First Accounting Period

Defining Your First Accounting Period


When you define a new set of books, choose carefully the first accounting period you want to
open. Once you open your first accounting period, Oracle General Ledger does not allow you
to open prior accounting periods.
Choosing whether to include an adjusting period or not in your calendar is a very important
decision. You can have an unlimited number of adjusting periods. Typically, the last day of the
fiscal year is used as an adjusting period to perform adjusting and closing journal entries. Once
you begin using your accounting calendar, you cannot change its structure to remove or add an
adjusting period.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 66

Accounting Period Statuses

Accounting Period Statuses


Never Opened:
You cannot enter or post journals.
Future Enterable:
You can enter journals, but you cannot post. The number of future enterable periods is a
fixed number defined in the Set of Books window. You can change the number of Future
Enterable periods at any time.
Open:
You can enter and post journals to any open period. An unlimited number of periods can
be open, but doing so may slow the posting process and can confuse users entering
journals.
Closed:
You must reopen Closed periods before you can post journals. You should manually
close periods after finishing your month-end processing.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 67

Permanently Closed:
Permanently Closed periods cannot be reopened. This status is required to archive and
purge data.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 68

Calendar Auditing

Calendar Auditing
Oracle General Ledger can automatically audit your accounting calendars to check for
common setup errors. This feature strengthens controls during implementation and prevents
potential processing problems related to invalid calendar definitions.
When you use the Accounting Calendar window to enter periods, the system only performs
online checking of errors such as the wrong number of days assigned to a period or
nonadjusting periods that have overlapping days.
When you exit the Calendar window, the Calendar Auditing program automatically produces a
report that clearly outlines calendar definition violations such as date omissions, overlapping
nonadjusting periods, and nonsequential periods.
The Calendar Validation report prints the error description, years, periods, or dates that violate
the GL calendar definition when you create a calendar or add accounting periods to your
calendar.
Use the Calendar Validation Report to identify errors in your calendar that may interfere with
the proper operation of Oracle General Ledger.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 69

Practice - Define an Accounting Calendar


Tasks
In this practice you will learn how to define:

New Period Types

Accounting Calendars

Business Situation
1.
2.

Define a new period type called XX_MONTH. Specify 12 periods for this calendar year.
Define an accounting calendar with the following information:

Name

XX_CALENDAR

Description

XX Calendar

3.

Enter the following information for your two-period calendar. Be sure to use the Period Type
you defined in step 1.

Prefix

Type

Year

Qtr

Num

From

To

Name

DEC

XX_MONTH

1999

12

01-DEC-1999

31-DEC-1999

DEC-99

JAN

XX_MONTH

2000

01-JAN-2000

31-JAN-2000

JAN-00

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 70

Solution - Define an Accounting Calendar


Tasks
In this practice you will learn how to define:

New Period Types

Accounting Calendars

Solution
1.
2.
3.
4.
5.
6.
7.

Open the Period Types window.


(N) Setup > Financials > Calendars > Types
Enter XX_MONTH for your Accounting Period Types.
Enter 12 for the number of accounting Periods per Year.
Select calendar as the Year Type from the list of values.
Enter Description of XX_Month.
Save your work.
Close the window.

8. Open the Accounting Calendar window.


(N) Setup > Financials > Calendars> Accounting
9. Define an accounting calendar with the following information:
Name

XX_CALENDAR

Description

XX Calendar

10. Enter the following information for your two-period calendar.


Prefix

Type

Year

Qtr

Num

From

To

Name

DEC

XX_MONTH

1999

12

01-DEC-1999

31-DEC-1999

DEC-99

JAN

XX_MONTH

2000

01-JAN-2000

31-JAN-2000

JAN-00

11. Save your work.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 71

12. Close the window.


13. Select Current in the Decision Box.
14. Navigate to the Request window.
(M) View > Request (B) Find (B) Output
15. Review the report.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 72

Enabling Currencies

Enabling Currencies
(N) Setup > Currencies > Define
1. To Enable or Disable a Currency, open the Currencies window.
2. In the currencies window, query all existing records by using the CTRL + F11 keys.
3. Select any existing currency that has not been enabled. Scroll to the right and select the
Enabled check box to enable the currency.
4. Save your work.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 73

Creating a Set of Books

Creating a Set of Books


Set of Books Considerations
When creating a set of books, consider the following:
- Minimize the number of future enterable periods to prevent users from accidentally
entering journal entries in an incorrect period.
- Ensure that all currencies you use, including the statistical journal (STAT) currency,
are defined and enabled prior to entering transactions in your set of books.
- Define several responsibilities for a set of books to allow for appropriate levels of
forms security.
Considerations for Multiple Companies Sharing Books
The following is a list of things you should consider if you have multiple companies
sharing the same set of books:
- Define the account structure, accounting calendar, functional currency, and set of
books.
- Create the account flexfield structure, define the company segment as the balancing
segment with multiple values.
- Define the set of books, assign the options you want to use for the set of books. For
example, enable intercompany balancing.
Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 74

Set up a separate company segment value for your eliminating entries. You can then
post elimination entries to this elimination company segment without needing to
reverse them later.
Set up a parent company segment value that includes as children, all the company
segment values you want to consolidate. Be sure to include the eliminating entries
company you set up in the previous step. For example, if you want to consolidate
companies 01 through 07 and your eliminating entries are made to company 08,
define a parent company 09 whose children are companies 01 through 08.
Include the parent company in a rollup group and then define summary templates
with this rollup group.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 75

How to Create a Set of Books

How to Create a Set of Books


Responsibility: General Ledger, Vision Operations (USA)
(N) > Setup > Financials > Books > Define
In the Set of Books window, enter the information from the table above:
1. In the Closing tab region, enter 00.000.3310 for Retained Earnings.
2. Select the Journaling tab and review the options available.
3. Select the Average Balances tab and review the options available if you enable this
feature.
4. Select the Budgetary Control tab and review the options available if you are using
budgeting.
5. Select the Multiple Reporting Currencies tab and review the options available.
6. Save your work.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 76

Set of Books Options

Set of Books Options


Allow Suspense Posting: Posts out-of-balance journal entries to a suspense account you
specify. Select the Suspense check box and enter a suspense account. If you do not enable this
feature, you can only post journal entries that balance.
Balance Intercompany Journals:
Allows users to post out-of-balance intercompany journal entries and automatically
balance those journal entries against a specified intercompany account. Select the
Balance Intercompany Journals check box and enter the intercompany account(s) in the
Intercompany Accounts window. If you do not enable this feature, you can only post
intercompany journal entries that balance by balancing segment, (usually the company
segment).
Budgetary Control:
If you are using budgetary control for your set of books, you can set budgetary control
options for an assigned account range. You can only assign budgetary control options to
account ranges with your functional currency and a budget entry type of Entered.
Enable Track Rounding Differences:
Allows you to track rounding differences in currency conversions.
Enable Average Balances:
Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 77

Allows you to use this set of books for average balance processing. For more
information, refer to the Oracle General Ledger User Guide and the 11i General Ledger
Financial Management Advanced Topic Average Balance Processing.
Enable Journal Approval:
Allows you to use the Journal Approval feature in your set of books. When Journal
Approval is enabled and a journal entry's source requires approval, the journal must be
approved by the appropriate level of management before any further action can be taken.
If Journal Approval is not enabled, approval is not required, even if the journal source
requires approval.
Enable Journal Entry Tax:
Allows you to manually enter taxable journal entries in General Ledger. When you
enable this feature for a set of books, the system automatically calculates associated tax
amounts and generates tax journal lines.
Set of Books Accounts:
You must specify a Retained Earnings account when you define a set of books. You can
also set up other special accounts depending on the functionality that you plan to use.
- Retained Earnings Account: General Ledger posts the net balance of all income and
expense accounts from the prior year to this account when you open the first period
of a fiscal year.
- Suspense Account: If you choose to allow posting of out-of-balance journal entries,
General Ledger automatically posts the difference to this account. If you have
multiple companies or balancing entities within a set of books, General Ledger
automatically creates a suspense account for each balancing entity.
- Rounding Differences Account: Specify an account to track rounding differences
that occur during currency conversions. Enable this feature if your foreign currency
transactions include different balancing segments to represent multiple companies.
General Ledger automatically creates a rounding differences account for each
balancing segment.
- Cumulative Translation Adjustment Account: If you translate your functional
currency balances into another currency for reporting, or if you revalue foreign
currency-dominated balances, you must specify a translation adjustment account.
- Reserve for Encumbrance Account: Allows you to post the difference of out-ofbalance encumbrance entries.
- Net Income Account: General Ledger uses this account to capture the net activity of
all revenue and expense accounts when calculating the average balance for retained
earnings.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 78

Practice - Define a Set of Books


Tasks
In this practice you will learn how to define a Set of Books.

Business Situation
1.
2.
3.
4.
5.
6.
7.

Define a standard set of books called XX_US Books with a short name of XX_US.
Use your XX _ACCOUNTING_FLEXFIELD Chart of Accounts and the USD currency as the
functional currency for your set of books.
Select your XX_CALENDAR from the list of values as the monthly calendar for your set of
books.
Allow one future enterable period.
Allow Suspense Posting and Balancing Intercompany Journals.
In the Note box on Defining Intercompany Accounts, click the OK button.
Enter the following accounts:
Account

Account Code Combination

Retained Earnings

01.110.3310.01

Translation Adjustment

01.110.3510.01

Suspense

01.110.9920.01

Note: The default accounts defined here are a mask for the actual accounts, which will
be used. For instance, if an unbalanced journal were posted to balancing segment 02,
suspense account 02.110.9920 would be used, and so on.

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 79

Solution - Define a Set of Books


Task
In this practice you will learn how to define a Set of Books.
Solution
1. Open the Set of Books window.
(N) Setup > Financials> Books > Define
2. In the Name field, enter XX US BOOKS.
3. In the Short Name field enter XX_US.
4. Optionally, enter a description in the Description field.
5. From the list of values, select XX_ACCOUNTING_FLEXFIELD.
6. Select USD as the Functional Currency.
7. In the Name field of the Calendar Region, select XX_CALENDAR from the list of values.
8. Enter 1 in the Future Periods field.
9. Select the Closing Tab.
10. Enter the following:
Account

Account Code Combination

Retained Earnings

01.110.3310.00

Translation Adjustment

01.110.3510.00

11.
12.
13.
14.

Select the Journaling Tab.


Select the Balance Intercompany Journals.
Select Suspense checkbox.
Enter the following Suspense Account Code Combination: 01.110.9920.00.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 80

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 81

Linking a Set of Books to a Responsibility

Linking a Set of Books to a Responsibility


Use Oracle System Administration to link a set of books to a General Ledger responsibility.
When starting an Oracle General Ledger session, select a responsibility in order to enter and
retrieve accounting information for the set of books associated with that responsibility.
Predefined and Customized Responsibilities
Oracle General Ledger predefines several responsibilities that determine users' access to a
specific set of books and allows users to run specific programs or perform specific
functions.
You can define unique responsibilities that include different reports and functions.
You can assign appropriate responsibilities to users according to their job requirements
and your data security demands.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 82

Practice - Create Responsibility


Tasks
In this practice you will learn how to:

Create a new responsibility

Attach the new responsibility to an existing user


Assign a Set of Books to a responsibility

Business Situation
Create Responsibility
1. Use the System Administrator responsibility to create a new responsibility called XX_US_
Controller, which will have access to the Vision Operations Set of Books.
2. Enter the following information for this responsibility:
Field Name

Information to Be Entered

Responsibility

XX_US_CONTROLLER

Application (List)

Oracle General Ledger

Responsibility Key

XX_US_CONTROLLER

Description

US Controller

Available From

Oracle Applications

Data Group
Name (List)

Standard

Application (List)

Oracle General Ledger

Menu

GL_SUPERUSER
Request Group

Name (List)

GL Concurrent Program Group

Application (List)

Oracle General Ledger

Attach Responsibility
3. Use the System Administration responsibility to attach your new XX_US_Controller
responsibility to your user by querying on your user.
Hint: The navigation path under the System Administrator responsibility is:
(N) Security > User > Define
Assign a Set of Books to a Responsibility
4. Assign the Set of Books to a Responsibility.

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor
Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 83

Use and System Administrator responsibility

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 84

Solution: Create Responsibility


Task
Create Responsibility
Use the System Administrator responsibility to create a new responsibility called XX_US_
Controller, which will have access to the Vision Operations Set of Books.
1. Log in as the System Administrator responsibility.
2. Open the Responsibilities window.
(N) Security > Responsibility > Define
3. Enter the following information for this responsibility:
Field Name

Information to Be Entered

Responsibility

XX_US_CONTROLLER

Application (List)

Oracle General Ledger

Responsibility Key

XX_US_CONTROLLER

Description

US Description

Available From

Oracle Applications

Data Group
Name (List)

Standard

Application (List)

Oracle General Ledger

Menu

GL_SUPERUSER
Request Group

Name (List)

GL Concurrent Program Group

Application (List)

Oracle General Ledger

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 85

4.

Save your work.

Define New User (optional) and Attach Responsibility


5. Open the User window from the System Administrator responsibility.
(N) Security > User > Define
6. Query your existing user or enter XX_GL_STUDENT in the User Name field.
7. Optionally, enter a description.
8. Enter temp1 in the Password field twice if entering a new user.
9. In the Responsibility field, select XX_US_CONTROLLER from the list of values.
10. Enter Standard in the Security Group field.
11. Save your work.

Assign a Set of Books to a Responsibility


12. From the System Adminstrator responsibility, open the Find System Profile Values window
(N) Profile > System
13. Enter the following:
Responsibility: XX_US_CONTROLLER
Profile: GL Set of Books Name

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 86

14. Select the Find button.


15. In the System Profile Values window, place your cursor in the Responsibility field. From the
list of values, select the set of books you defined, XX_US_BOOKS

16. Save your work.


17. Open and close the December 1999 period of the calendar.
(N) Setup > Open/Close
18. Select the Open button. Select Yes in the message box.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 87

Enabling Account Combinations

Enabling Account Combinations


The default setting for an account code combination is enabled. Once created, an account code
combination cannot be deleted. To discontinue using an account code combination, simply
deselect the Enabled check box for the account. You can also use the effective date to enable or
disable the combination. For example, if you have a new department as of January 1, 2002, you
can create an account code combination with an effective date of 01-JAN-2002 and the account
combination becomes enabled on that date. This means you have the flexibility to create the
account combinations in advance.
Additionally, you can control the following attributes from the GL Accounts window:
Preserved
Type
Effective Dates
Allow Posting
Allow Budgeting

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 88

Guided Demonstration - Create Account Combinations


Responsibility: Demo Vision Operations, USA
N > Setup > Accounts > Combinations
1. In the GL Accounts window, select the list of values in the Account field.
2. Enter the following values:

3.
4.
5.

Company

00 Corporate

Cost Center

100 Cost Center

Account

1000 Cash

Select the OK button.


Verify that the Enabled check box is selected.
Save your work.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 89

Segment Value Inheritance

Segment Value Inheritance


Overview of Segment Value Inheritance
Oracle General Ledger eases chart of accounts maintenance by automatically replicating
changes to segment value attributes of the account code combinations that contain that
segment value. For example, if you enable a particular cost center segment value that had
been disabled previously, you can run the Segment Value Inheritance program so that all
account code combinations containing that cost center are automatically re-enabled. You
can also prevent selected account code combinations from being affected by segment
value attribute changes by selecting the Preserved check box in the GL Accounts
window.
Using the Segment Value Inheritance Program
To use the Segment Value Inheritance program:
- Enable or disable a segment or change other attributes in the Segment Values
window.
- Run the Segment Value Inheritance program to change the attributes on all account
code combinations that contain the segment.
- Use the Segment Value Inheritance Exception Report to view the account code
combinations that have been changed.
Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 90

Individual segment value attributes override account code combination attributes. To


protect account code combinations from changes when you run the Segment Value
Inheritance program, select the Preserved check box in the GL Accounts window.
An account code combination is composed of several segment values. If these segment
values have conflicting settings with respect to being enabled, posting, budgeting, and
effective dates, the most restrictive of these settings for any of the individual segment
values applies to the account code combination when the program is run. If you disable a
segment value, the code combinations that contain that value will no longer be able to
used, even if the preserved check box is selected.
Note: You can also disable an account code combination in the GL Accounts window.
However, you must select or deselect the Enabled check box for each account combination
individually. This applies to other attributes such as budgeting and posting as well.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 91

Troubleshooting Segment Value Inheritance

Troubleshooting Segment Value Inheritance


Accounting Flexfield Structure:
If you want to update another Accounting Flexfield structure, you must use the
responsibility for that structure. If you have multiple sets of books, you must have at least
one responsibility defined for each set of books. The segment value inheritance program
only updates one set of books, which is the one assigned to the responsibility of the user
launching the program. If multiple sets of books need to be updated, you must launch the
program multiple times, each time from a different responsibility.
Table Validation:
If the Segment Value Inheritance program is run for a chart of accounts that contains a
table validated value set, the columns LAST_UPDATE_DATE and CREATION_DATE
must be in the table used by the table validated value set. If the table does not have these
columns, then the Segment Value Inheritance program cannot determine which segment
values attributes have changed since its last run and assumes that no segment value has
changed in this value set.
The Segment Value Inheritance program prints a warning message in the report.
The program continues the inheritance process for other segments and generates a
warning when the program is completed.
Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 92

Segment Value Inheritance and Flexfield Security


Segment value inheritance and flexfield security are different and unrelated.
You can use flexfield security to enable specific users to use a segment value and block
other users from using the same value.
Segment value inheritance finds code combinations using a segment value and transfers
the segment value attributes to the code combinations.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 93

Defining Flexfield Security Rules

Defining Flexfield Security Rules


To prohibit certain users from accessing specific segment values, you can define flexfield
security rules and assign those rules to the responsibility of the restricted users. For
example, you can create a security rule that grants a user access only to his or her own
department.
Accounting Flexfield segment values must pass every assigned flexfield security rule for
a user's responsibility before the value can be selected by the user.
How to Define Security Rules
(N) Setup > Financials > Flexfields > Validation > Security > Define
1. In the Find Key Flexfield Segment window, enter:
- Title
Accounting Flexfield
- Structure
Demo Accounting Flex
- Segment
Company
2. Select the Find button.
3. Enter the parameters for the security rule.
4. In the Security Rules region:
- Name
Demo FFS
Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 94

5.

6.
7.

8.

- Description
Company Not Valid for Responsibility
- Message
Demo FFS Company not valid for responsibility
In the Security Rules Elements region:
- Include 00 99
- Exclude 00 - 00
Save your work.
Select the Assign button and assign the rule to:
- Application
Oracle General Ledger
- Responsibility Demo Vision Operations, USA
- Name
Demo FFS
Save your work.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 95

Practice - Define Flexfield Security Rules


Tasks
In this practice you will learn how to define a Flexfield Security Rule preventing access to Cost
Center 110 by the XX_US_Controller responsibility.

Business Situation
1.
2.

Define a rule to limit the use of Cost Center Value 110 by the XX_US_Controller
responsibility.
Open the Define Security Rules window using the Find Key Flexfield Segment window.
Query the Key Flexfield values based on the following information.
Field Name

Information

Application

Oracle General Ledger

Title

Accounting Flexfield

Structure

XX_ACCOUNTING_FLEXFIELD

Segment

Cost Center

3.

Enter the following information for Security Rules and Rule Elements.
Security Rules

Name

XX_FFS

Description

Cost Center 110 Not Valid for this Responsibility

Message

XX_FFS: Cost Center 110 Not Valid for this Responsibility

Security Rule Elements


Type: Include

From 000 To ZZZ

Type: Exclude

From 110 To 110

4.
5.
6.
7.

Save your work.


Assign the XX_FFS rule to the Oracle General Ledger application and XX_US_Controller
Responsibility.
Save your work.
Go to the Navigator and Select the Black Hat. Select XX_US_CONTROLLER (this
refreshes the view of the tables to enable the security rule). N: Journals > Enter (B) New
Journal Name Journal XX Test FFS Rule Enter Line Number: 10 Enter Account: 01-1105800-0000-000 and see error message.

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 96

Solution - Define Flexfield Security Rules


Task

Define a rule to limit the use of Cost Center Value 110 by the XX_US Controller responsibility.
Solution
1. Open the Define Security Rules window using the Find Key Flexfield Segment window.
Query the Key Flexfield values based on the following information.
(N) Setup > Financials > Flexfields > Key > Security > Define
Field Name

Information

Application

Oracle General Ledger

Title

Accounting Flexfield

Structure

XX_ACCOUNTING_FLEXFIELD

Segment

Cost Center

2.

Enter the following information for Security Rules and Rule Elements.
Security Rules

Name

XX_FFS

Description

Cost Center 110 Not Valid for this Responsibility

Message

XX_FFS: Cost Center 110 Not Valid for this


Responsibility

Rule Elements
Include

000-ZZZ

Exclude

110-110

3.

Save your work.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 97

4.
5.
6.

Select (B) Assign


Assign this rule to the XX_US Controller responsibility.
Enter or select from the list of values Oracle General Ledger in the Application field of the
Security Rules region.
7. Enter or select from the list of values XX_US Controller in the Responsibility field.
8. Enter XX_FFS in the Name field.
9. The Description and Message will default in.
10. Save your work.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 98

Using Dynamic Insertion

Using Dynamic Insertion


Setting the Allow Dynamic Inserts Option
You have the option of allowing account combinations to be added automatically as you
enter them in transactions, including when you define a set of books. This option is
controlled by the Allow Dynamic Inserts check box located on the Key Flexfield
Segments window. Alternately, you can require all accounts to be define manually in the
Accounts Combinations window.
Frequently, companies enable dynamic insertion while they are entering historical data
from a legacy system. They then disable the feature to ensure tighter control over the
creation of new account combinations.
Note: If you are defining an Accounting Flexfield for Oracle Projects, you must define your
segment with the Allow Dynamic Inserts option set to Yes. For more information, refer to the
Oracle Projects User Guide.

Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 99

Defining Cross-Validation Rules

Defining Cross-Validation Rules


Cross-validation controls the combinations of values you can create when you are setting up
Accounting Flexfield combinations. A cross-validation rule defines whether a value of a
particular segment can be combined with specific values of other segments. Cross-validation is
different from segment validation, which controls the values you can enter for a particular
segment.
You use cross-validation rules to prevent the creation of combinations that should never exist
(combinations with values that should not coexist in the same combination). For example, you
can assign rules to prevent the combination of a product with administrative departments.
Defining and Revising Cross-Validation Rules
Because cross-validation rules validate only new accounts, you should define and enable
them prior to entering accounts.
Revise cross-validation rules at any time, but remember that they only prevent the
creation of new invalid account combinations.
Combinations of Segment Values
New accounts must pass every enabled cross-validation rule to be valid.
Cross-validation rules do not affect existing accounts.
Using Cross-Validation with Dynamic Insertion
Copyright Oracle, 2009. All rights reserved.

Set of Books
Chapter 2 - Page 100

Enable dynamic insertion in the Key Flexfield Segments window to allow users to define
new account combinations of segment values.
If dynamic insertion is not enabled, you can only enter new account combinations of
segment values using the GL Accounts window.
Cross validation rules are important even if dynamic insertion is not enabled to prevent
creating invalid combinations accidentally.
Specifying Cross-Validation Rules
To enter cross validation rules, navigate to the Cross Validation Rules window.
(N) Setup > Financials > Flexfields > Key > Rules
Enter the error message that should be displayed if the rule is violated. Include the name
of the rule in the error message for easy identification.
Enter the name of the segment most likely to cause this cross-validation rule to fail;
Oracle General Ledger moves the cursor to this segment whenever a new account
combination violates this cross-validation rule.
Defining Cross-Validation Rule Elements
Select Include or Exclude and specify a range of accounts for each rule.
Oracle General Ledger excludes all accounts that are not explicitly included.
Exclude rule elements always override Include rule elements. Therefore, create a
universal Include statement that includes all possible accounts. Then specify Exclude
statements.
Note: Defining many rules with few elements is generally much clearer than defining few
rules with many elements. For clarity, always contain one universal Include element and
one or more restricting Exclude elements.
Note: To help you maintain your cross-validation rules, have your system administrator add the
following reports to your General Ledger responsibility:
Cross-Validation Rule Violation Report: This report provides a listing of all the
previously-created flexfield combinations that violate your cross-validation rules. You
can also choose to have the report program actually disable the existing combinations that
violate your new rules.
Cross-Validation Rules Listing Report: This report lists all the cross-validation rules that
exist for a particular flexfield structure. This is the information you define using the
Define Cross-Validation Rules form, presented in a multiple-rule format you can review
and keep for your records for a given flexfield structure.

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Chapter 2 - Page 101

Guided Demonstration - Define Cross-Validation Rules


Responsibility: General Ledger, Vision Operations (USA)
N > Setup > Financials > Flexfields > Key > Rules
1. Define a cross-validation rule that disallows the use of account 6010 with any Cost Center
other than Cost Center 100 in the Vision Demo set of books.
2. In the Cross Validation Rules window, use the Find icon to find the Demo Accounting Flex
chart of accounts:

3.

4.

5.

Application

Oracle General Ledger

Flexfield Title

Accounting Flexfield

Structure

DEMO ACCOUNTING FLEX

In the Cross-Validation Rules region, enter:


Name

Demo CVR

Description

Account 6010 Valid Only with Cost Center 100

Error Message

Demo CVR Account 6010 is valid only with Cost Center


100

Error Segment
Name

Account

From

01-JAN-2003

In the Cross-Validation Rule Elements region, enter the rule parameters:


Include

00.000.0000

ZZ.ZZZ.ZZZZ

Exclude

00.000.6010

ZZ.000.6010

Exclude

00.200.6010

ZZ.ZZZ.ZZZZ

Save your work.

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Practice - Define Cross-Validation Rules


Tasks
In this practice you will learn how to define a cross-validation rule that disallows use of account
6010 with any cost center other than cost center 310.

Business Situation
Define a cross-validation rule that disallows use of account 6010 with any cost center other than
cost center 310.
1. Query on the following information.
Field Name

Information

Application

Oracle General Ledger

Flexfield Title

Accounting Flexfield

Structure

XX_ACCOUNTING_FLEXFIELD

2.

Enter the following information for the Rule and Rule Elements.
Security Rules

Name

XX_CVR

Description

Account 6010 valid only with CC 310

Error Message

XX_CVR: Account 6010 valid only with CC 310

Error Segment Name

Account

From

01-DEC-1999

Rule Elements

Low

High

Include

00.000.0000.00

ZZ.ZZZ.ZZZZ.ZZ

Exclude

00.000.6010.00

ZZ.309.6010.ZZ

Exclude

00.311.6010.00

ZZ.ZZZ.6010.ZZ

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

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Chapter 2 - Page 103

Solution - Define Cross-Validation Rules


Task
In this practice you will learn how to define a cross-validation rule that disallows use of account
6010 with any cost center other than cost center 310.
Solution
1. Open the Cross-Validation Rules window.
(N) Setup > Financials > Flexfields > Key > Rules
2. Query on the following information.
Field Name

Information

Application

Oracle General Ledger

Flexfield Title

Accounting Flexfield

Structure

XX_ACCOUNTING_FLEXFIELD

3.

Enter the following information for the Rule and Rule Elements.
Security Rules

Name

XX_CVR

Description

Account 6010 valid only with CC 310

Error Message

XX_CVR:Account 6010 valid only with CC


310

Error Segment Name

Account

From

01-DEC-1999

Rule Elements

Low

High

Include

00.000.0000.00

ZZ.ZZZ.ZZZZ.ZZ

Exclude

00.000.6010.00

ZZ.309.6010.ZZ

Exclude

00.311.6010.00

ZZ.ZZZ.6010.ZZ

4.

Save your work.

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Chapter 2 - Page 104

Copyright Oracle, 2009. All rights reserved.

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Chapter 2 - Page 105

Defining Shorthand Aliases

Defining Shorthand Aliases


Defining Aliases to Represent Accounts
An alias can represent the value for a single segment, several segments or an entire
account combination.
You can define an unlimited number of aliases to represent complete or partial accounts.
How to Create Aliases
(N) Setup > Financials > Flexfields > Key > Aliases
1. In the Shorthand Aliases window, use the Find icon to find the Demo Accounting Flex
chart of accounts.
- Application
Oracle General Ledger
- Flexfield Title Accounting Flexfield
- Structure
DEMO ACCOUNTING FLEX
2. Select the Enabled checkbox.
3. In the Max Alias Size field, enter 4.
4. In the Prompt field, enter Alias.
5. In the Aliases, Description tabbed region, enter:
- Alias
Cash
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- Template
01.100.1000
- Description
Cash account for Cost Center 100
6. Save your work
7. Open the Key Flexfield Segments window.
(N) > Setup > Financials > Flexfields > Key > Segments
8. Use the Find icon to locate:
- Application
Oracle General Ledger
- Flexfield Title Accounting Flexfield
9. From the Structures list, select Demo Accounting Flex.
10. Clear the Freeze Flexfield Definition check box. Select OK when the message box
appears.
11. Select the Freeze Flexfield Definition check box and select OK when the message box
appears.
12. Save your work.
Important Notes:
You cannot define a shorthand alias using invalid values.
There is no validation process or checking of cross-validation rules when you define
shorthand aliases.
After you define the first shorthand alias, you must unfreeze your flexfield and recompile
it in order to be able to use your newly defined shorthand alias. This step is performed
only once.
The Flexfields: Shorthand Entry Profile Option must be set to Yes before you can use
your shorthand aliases. This profile option can be set by the user or system administrator.
Caution: Do not define shorthand aliases for a small number of accounts. It is inefficient.
Entering Aliases When Entering Accounts
When you invoke the account list of values window, the shorthand window is displayed.
You can enter a partial shorthand alias or skip the shorthand window to open the
Accounting Flexfield window.
After you enter a partial alias, the Accounting Flexfield window displays the segment
values represented by the alias. Change any segment values if desired.
If you entered an alias that represented an entire accounting combination, it fills in the
values and move you to the next field in the window.

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Chapter 2 - Page 107

Practice - Create Aliases


Tasks
In this practice you will learn how to create a Shorthand Alias for the Cash account.

Business Situation
Create an alias for the Cash account.
Use the following information:
Field

Enter

Application

Oracle General Ledger

Flexfield Title

Accounting Flexfield

Structure

XX_ACCOUNTING_FLEXFIELD

Assumptions

Use Vision database


Login information provided by your instructor

Replace XX with the number provided by your instructor

Use your XX_US Controller Responsibility

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Chapter 2 - Page 108

Solution - Create Aliases


Task
In this practice you will learn how to create a Shorthand Alias for the Cash account.

Business Situation
Create an alias for the Cash account.
Use the following information:
Field

Enter

Application

Oracle General Ledger

Flexfield Title

Accounting Flexfield

Structure

XX_ACCOUNTING_FLEXFIELD

Solution
1. Open the Shorthand Aliases window.
(N) Setup > Financials > Flexfields > Key > Aliases
2. Use the Find icon to find your Structure and Chart of Accounts.
3. In the Shorthand region, select the Enabled checkbox.
4. In the Max Alias Size field, enter 4.
5. In the Prompt field, enter Alias.
6. In the Aliases, Description tabbed region, enter:
Alias

Cash

Template

01.110.1000

Description

Cash account for Cost Center 110

7.

Save your work

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8.
9.

Note: The first time you set up an account alias, you must go in and unfreeze, refreeze,
and recompile the accounting key flexfield. This does not have to be done again.
Open the Key Flexfield Segments window.
(N) > Setup > Financials > Flexfields > Key > Segments
Use the Find icon to locate:
Field

Enter

Application

Oracle General Ledger

Flexfield Title

Accounting Flexfield

10. In the Structures region, scroll down and place your cursor on
XX_ACCOUNTING_FLEXFIELD.
11. Unselect the Freeze button. Click the OK button on the message that appears.
12. Select the Freeze button again. Click the OK Button on the message that appears.
13. Select the Compile button. Click the OK button on all the messages that appear.

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Chapter 2 - Page 110

Overview of Account Hierarchy Editor

Overview of Account Hierarchy Editor


You can use Application Desktop Integrator's Account Hierarchy Editor (AHE) to view and
maintain your General Ledger accounts. With drag-and-drop ease, you can create, maintain,
simulate, view, and print actual and hypothetical account hierarchy structures in a variety of
formats.
All changes to the account structure can be made through the Account Hierarchy Editor. After
saving, these changes are automatically reflected in Oracle GL for use in all reports, windows,
and programs.
You can also change reporting structures and hierarchies for comparison purposes by using
AHE in conjunction with Financial Statement Generator (FSG) reports to look at the financial
results for your organization is different ways.
Account Hierarchy Editor Features
View Accounting Flexfield structure hierarchies
Change hierarchies to reflect organizational changes
Create new parent or child segment values
Copy existing hierarchies to create new ones
Change segment value descriptions using the Modify Node Descriptions window
Save changes to the database
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Integrating with Oracle General Ledger

Integrating with Oracle General Ledger


Account Hierarchy Editor (AHE) is fully integrated with Oracle General Ledger. You can
create and manage values and hierarchies for your Accounting Flexfields using the Account
Hierarchy Editor just as you can in General Ledger. All changes made in AHE are reflected in
GL upon saving and your entire chart of accounts is available in AHE. Working with account
structures and hierarchies AHE is easy and intuitive because of the graphical interface. In
addition, performing what-if manipulations for account structures is a simple process using the
Account Hierarchy Editor.
You can use AHE in conjunction with GL. First, set up the basic account framework in
General Ledger by defining value sets, the account structure, segment qualifiers, and the order
of the segments. Then use the Account Hierarchy Editor to add values and relationships. You
will find setting up your chart of accounts to be more efficient this way.

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Using the Account Hierarchy Editor

Using the Account Hierarchy Editor


You must have Applications Desktop Integrator (ADI) installed.
Your responsibility must allow you to save changes made to the account structures. Otherwise
you can only use the Account Hierarchy Editor to view changes.
Setting Up Account Hierarchy Editor
To access Account Hierarchy Editor, you must set the following profile options:
- GLDI: AHE Privileges: When enabled, the user can access the Account Hierarchy
Editor.
- GL AHE: Saving Allowed: This option enables the users to save any changes they
make to the account structure from the Account Hierarchy Editor.
Note: To prevent unauthorized changes to accounts, allow only a limited group of people in
your organization to save changes to the account structure.
Viewing Segment Values and Hierarchies
You start the Account Hierarchy Editor by clicking the View Account Hierarchy icon on
your ADI toolbar or by selecting Ledger from the ADI toolbar, then selecting View
Account Hierarchy from the list of values. The Account Hierarchy Editor window
appears. This window includes two drop-down lists, the Chart of Accounts list and the
Segment list. You must select values for each of these.
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The Chart of Accounts list includes all of the Accounting Flexfields that have been
defined in Oracle GL. The Segment list is made up of the corresponding segments for a
particular Accounting Flexfield.
Note: The Account Hierarchy Editor button does not appear on the ADI toolbar unless your
responsibility allows you to make view or changes to account structures.

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Chapter 2 - Page 114

Using the Account Hierarchy Toolbar

Using the Account Hierarchy Toolbar


The Account Hierarchy Editor toolbar provides the following shortcuts for various menu
commands.
New:
Opens a new Hierarchy Diagram window.
Open:
Opens a new Hierarchy Diagram window if you select a segment value from the Segment
Values window.
Save:
Launches a concurrent process to apply any changes that you have made.
Print:
Prints the contents of the current active window.
Remove:
Removes the selected segment value node from the Account Hierarchy Editor window.

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Vertical:
Changes the orientation of the hierarchy diagram to a tree structure.
Column:
Changes the orientation of the hierarchy diagram to a modified tree structure.
Horizontal:
Changes the orientation of the hierarchy diagram to a horizontal organization chart.
Node Properties:
Change the color and style of the squares used to represent parent and child nodes in a
hierarchy diagram.
Zoom In:
Enlarges the view of the current hierarchy diagram.
Zoom Out:
Reduces the view of the current hierarchy diagram.
Help:
Provides information about the Account Hierarchy Editor.

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Chapter 2 - Page 116

Account Hierarchy Editor Segment Symbols

Account Hierarchy Editor Segment Symbols


Displaying Segment Values and Hierarchies
After you select the chart of accounts and segment, you can view all the values for that
segment in the Segment Values window.
Note: If your Accounting Flexfield is frozen, you receive a warning message indicating
that you cannot change budget or posting flags.
You can view the parent and child relationships, or hierarchies, in the left region of the
window by dragging a value from the right region and dropping it into the left region.
Oracle GL enables you to create as many hierarchies as you want; for example,
grandparent and great-grandparent relationships.
AHE uses the above symbols to represent the hierarchy status of a segment value. You
can change the color and show the descriptions of the symbols by selecting Node
Properties from the Edit menu.
You can change the view of a hierarchy by selecting the horizontal or vertical icons in the
toolbar.

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Displaying Segment Value Attributes


When you select a segment value from either the Segment Values or Hierarchy Diagram
windows, the Account Hierarchy Editor displays a related attributes window, which
shows segment value details, as follows:
- Parent Attributes: Segment value, description, rollup group, effective from and to
dates, account type, and assigned child ranges.
- Child Attributes: Segment value, description, effective from and to dates, account
type, allow budgeting, and allow posting.
Note: If you drag new child values and drop them onto a parent in the Hierarchy Diagram
window, the assigned child ranges in the Parent Attributes window are automatically updated.

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Parent Levels in an Account Hierarchy

Parent Levels in Account Hierarchy


You can create new parent values by entering new segment value information in the Parent
Attributes window. Account Hierarchy Editor validates the value when you close the Parent
Attributes window.
Parent values automatically allow posting and budgeting.
Optionally, assign a range of child values by clicking the New button to open the Range
window and entering a range of child values.
Note: If you create a new parent segment value, you cannot delete it. You can disable the
segment value at any time by clearing the Enabled check box or entering an ending effective
date in the Parent Attributes window.

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Creating New Child Values

Creating New Child Values


Use the Account Hierarchy Editor to define a new segment value by entering attributes for a
new child value. The new value must comply with the defined format of the segment's value
set. The Account Hierarchy Editor validates the value when you close the Child Attributes
window. Remember that you must also save your work to copy the changes to the database.
Notes:
The qualifiers for a value vary by segment
Other possible qualifiers are Reconciliation Flag and Control Account

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Chapter 2 - Page 120

Multiple Hierarchy Diagrams

Multiple Hierarchy Diagrams


You can display multiple hierarchies simultaneously by creating a new Hierarchy Diagram
window for each hierarchy.
From the Segment Values window, select the value to use as the topmost node of the new
hierarchy.
Select open from the File menu.

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Guided Demonstration - Define a New Parent Segment


Responsibility: General Ledger
Launch ADI >Sign On Ledger > View Account Hierarchy
1. Open the Operations Accounting Flex from the Chart of Accounts list and the Department
segment from the Segment list.
2. Select OK to acknowledge the message informing you that the flexfield structure is frozen.
3. Double-click "New parent value" in the Segment window.
4. In the Parent Attributes window, enter:

5.
6.
7.
8.
9.

Segment
value

900

Description

Demo Parent 900

Select the New button to open the Range window.


Enter the range of child values of 100 to 199 in the Range fields.
Select the OK button to close the window. The new hierarchy appears now in the Ranges
region of the Parent Attributes window.
Select OK to close the Parent Attributes window to add the new hierarchy.
Drag parent value 900 into the Hierarchy Diagram window to view the hierarchy.

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Guided Demonstration - Define a New Child Segment


Responsibility: General Ledger
Launch ADI > Sign On >Ledger > View Account Hierarchy
1. Open the Operations Accounting Flex from the Chart of Accounts list and the Department
segment from the Segment list.
2. Select OK to acknowledge the message informing you that the flexfield structure is frozen.
3. Drag segment 900 Demo Parent Value into the Hierarchy window.
4. Drag the New child value from the Segment window onto 900 in the Hierarchy window and
release the mouse.
5. The Child Attributes window opens. Enter the following:

6.

Segment
Value

925

Description

Demo Child Value 925

Select OK to save your work. The new child value appears in the hierarchy.

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Saving and Refreshing Hierarchies

Saving and Refreshing Hierarchies


Saving Hierarchies
When you duplicate or build new hierarchies, you must save your changes to the database
to have them reflected in General Ledger application.
Review your hierarchy and select to accept it. The hierarchy is saved locally.
To make your changes permanent, you must also save your work to the database. Select
File > Save from the menu or select the Save button. A concurrent process is launched to
apply any changes to the database.
Refreshing Hierarchies
Refresh the Account Hierarchy Editor after saving changes to ensure you are working
with current data.
From the Segment poplist, select a different account segment.
Then select the segment you want to work with. Your hierarchy is now refreshed.

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Chapter 2 - Page 124

Guided Demonstration - Account Hierarchy Manager


Responsibility: General Ledger, Vision Operations (USA)
(N) > Setup > Accounts > Manager
1. Open the Account Hierarchy Manager.
2. Select Yes on the Confirm dialog box.
3. In the Chart of AccountsSegments window, select the Chart of Accounts and Segment for
which you want to create a hierarchy.
4. Choose Find in the Query window.
5. From the resulting Value List, select the segment value representing the parent value of
your hierarchy. Optionally, you can create a new parent segment value by selecting New
Parent from the Edit menu.
6. Complete the fields in the Parent Attributes window.
7. Choose the new parent value from the Values List and select Hierarchy from the View
menu.
8. Add values to your hierarchy, as needed, working down from the topmost node.
9. Save your work.

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Chapter 2 - Page 125

Practice - Account Hierarchy Editor


Tasks
In this practice you will learn how to:

View an existing hierarchy

Create new segment values


Duplicate hierarchies

Modify descriptions within a hierarchy

Business Situation
Open the Account Hierarchy Editor
1. Open the Account Hierarchy Editor from the Ledger icon drop down list.
2. Select the Operations Accounting Flex from the Chart of Accounts list and the Department
segment from the Segment list.
View Hierarchies and Segment Attributes
3. View the hierarchy of value 400.
4. View the attributes of value 400.
Update Hierarchies
5. Remove all child values from value 400 except 410, 420, and 430.
6. View the new attributes.
7. View the hierarchy in a vertical format.
8. Change the node properties to show the description of both parents and children. Change
the description length to 15.
9. View your hierarchy with the descriptions.
10. Change the node properties by clearing the Description check box for both parents and
children.

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Find Segment Values


11. Open a new hierarchy window.
12. Find parent value PT in the Segment Values window.
13. Drag and drop PT to the new window and view its attributes.
14. When you are done, close this window and drag value 400 to the Segment Values window.
15. Create New Parent Values
16. Create a new parent value named 9XX, with a description of "1999 New Parent Value,"
where XX is your terminal number.
17. Add the child range 100 to 199 to this parent by clicking the New button in the Parent
Attributes window.
18. Create another new parent value called ZXX, with a description of "1999 Z parent," where
XX is your terminal number.
19. Make ZXX a child of XX.
20. Add values 810, 820, 830 to the ZXX parent by dragging and dropping them.
21. Create another new parent value called YXX with a description of "1999 Y parent," where
XX is your terminal number.
22. Make YXX a child of ZXX.
23. Add child values 840 and 850 to the YXX parent by dragging and dropping them.
24. View the new three level parent hierarchy.

Assumptions

Use Vision database

Login information provided by your instructor

Replace XX with the number provided by your instructor


Use General Ledger, Vision Operations (USA) responsibility

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Chapter 2 - Page 127

Solution Account Hierarchy Editor


Task
In this practice you will learn how to:

View an existing hierarchy

Create new segment values


Duplicate hierarchies

Modify descriptions within a hierarchy

Open the Account Hierarchy Editor


1. Select the View Account Hierarchy icon on the ADI toolbar or from the Ledger icon drop
down list.
2. When the Account Hierarchy Editor window opens, select Operations Accounting Flex from
the Chart of Accounts list and Department from the Segment list.

3.

Click the OK button to acknowledge the message.

View Hierarchies and Segment Attributes


4. Click on value 400 and drag it to the Operations Accounting Flex window.
5. Double-click the value 400 to view the attributes of the value. Notice the child values.

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6.

Click the OK button when you are done.

Update Hierarchies
7. In the Operations Accounting Flex window, place your cursor on the value 402.
8. Click and drag it back to the Segment Values window. This removes the child from the
hierarchy.
9. Remove all values from parent 400 by repeating steps 12 for each value except 410, 420,
and 430.
10. Double-click the value 400 to view the new attributes.
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11. View the hierarchy vertically by clicking the Vertical Format icon on the Account Hierarchy
Editor (AHE) toolbar.
12. Select Edit > Node Properties from the menu.
13. Change the display attributes for both parent and child values by selecting Description.
14. Change the description length to 15 for both parent and child values.

15. Click the OK button.


16. Change the node properties back to their original settings by clearing the Description check
box.

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Find Segment Values


17. Open a new Hierarchy window.
(M) File > New Window
18. Place your cursor on "New child value" in the segment values window.
19. Click your right mouse button and select Find to open the Find Segment window.
20. Specify the following parameters:
Find What

PT

Parent

Yes

Search for
Segment

Value

Direction

Down

21. Select Find Next. PT should now be highlighted.

22. Click Cancel to close the Find Segment window.


23. Drag PT and drop it into the new window. View PT attributes by double clicking on it.

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24. Close the middle window by clicking () in the upper right corner.
25. Click the value 400 in the far left Operations Accounting Flex window. Drag it and drop it
into the far right window.
Create New Parent Values
26. Double-click "New parent value" in the segment window. The Parent Attributes window
opens.
27. Enter 9XX, in the Segment Value field, where XX is your terminal number.
28. Enter 1999 New Parent Value in the Description field.

29. Click the New button. The Range window opens.


30. Enter the range of child values of 100 to 199 in the Range fields.

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31. Click the OK button to close the window. You will see the new hierarchy in the Ranges
region of the window.
32. Click the OK button to close the Parent Attributes window.
33. Drag 9XX and drop it into the Hierarchy Diagram window.

34. Double-click the New Parent Value in the segment window. The Parent Attributes window
opens.
35. Enter ZXX, in the Segment Value field, where XX is your terminal number.
36. Enter 1999 Z Parent in the Description field.
37. Click the OK button.
38. Drag the ZXX value and drop it into XX, to make it a child of the XX value.
39. Drag values 810, 820, and 830 and drop them into ZXX, to make them child values
assigned to ZXX.

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40. Double-click the New Parent Value from the segment window. The Parent Attributes
window opens.
41. Enter YXX in the Segment Value field, replacing XX with your terminal number.
42. Enter 1999 Y parent in the Description field.
43. Click OK.
44. Drag value YXX and drop it into ZXX, to make it a child value assigned to ZXX.
45. Drag child values 840 and 850 into the YXX parent.
46. Your new hierarchy should look like the following:

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Chapter 2 - Page 134

Summary

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Chapter 2 - Page 135

Summary

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Set of Books
Chapter 2 - Page 136

Basic Journal Entries


Chapter 3

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Basic Journal Entries


Chapter 3 - Page 1

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Basic Journal Entries


Chapter 3 - Page 2

Basic Journal Entries

Copyright Oracle, 2009. All rights reserved.

Basic Journal Entries


Chapter 3 - Page 3

Objectives

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Basic Journal Entries


Chapter 3 - Page 4

Objectives

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Basic Journal Entries


Chapter 3 - Page 5

Objectives

Copyright Oracle, 2009. All rights reserved.

Basic Journal Entries


Chapter 3 - Page 6

Journal Entries and the Accounting Cycle

Journal Entries and the Accounting Cycle


Journal entries are an integral part of the accounting cycle:
Open period
Create functional and foreign journal entries.
Reverse journal entries
Post
Review and correct balances
Revalue foreign currency balances
Translate foreign currency balances
Consolidate sets of books
Review and correct balances
Run accounting reports
Close the accounting period

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Basic Journal Entries


Chapter 3 - Page 7

Integrating Journal Entries in Oracle eBusiness

Integrating Journal Entries in Oracle eBusiness


Journal entries transfer accounting transactions to General Ledger for reporting and analysis.
You can integrate the following subledgers with Oracle General Ledger:
Purchasing: Accrual of receipts not invoiced, purchase orders, final close cancellations
Payables: Invoices, payments, realized gain and loss, invoice price variance
Assets: Capital asset additions, cost adjustments, transfers, retirements, depreciation,
reclassifications, also construction in process
Work In Process: Material issues or backflush to WIP, completions, returns, resource and
overhead transactions, cost updates
Inventory: Inventory, cost of goods sold (COGS), cycle count and physical inventory
adjustments, receiving transactions, delivery transactions, intercompany transfers, sales
order issues, internal requisitions, subinventory transfers
Projects: Cost distribution of labor and non-labor, revenue
Receivables: Invoices, payments, adjustments, debit memos, credit memos, cash,
chargebacks, realized gain and loss
Payroll: Salary, deductions and taxes
Cost Management: Cost distributions for inventory and work-in-process transactions.
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Chapter 3 - Page 8

Performing Journal Entry Functions

Performing Journal Entry Functions


Using Oracle General Ledger, Oracle subledgers, and Oracle ADI, you can perform the
following journal entry functions:
Create journal entries in Oracle General Ledger or use ADI to enter journals from a
spreadsheet.
Import journal entries
Post journal entries
Inquire on account information and journal entries
Drill down to subledgers
Run reports
Reverse journal entries

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Chapter 3 - Page 9

Journal Entry Types

Journal Entry Types


Within Oracle General Ledger, you can work with the following types of journal entries:
Manual Journal Entries: The basic journal entry type is used for most accounting
transactions. Examples include adjustments and reclassifications.
Reversing Journal Entries: Reversing journal entries are created by reversing an existing
journal entry. You can reverse any journal entry and post it to the current or any future
open accounting period.
Recurring Journal Entries: Recurring journal entries are defined once, then are repeated
for each subsequent accounting period you generate. You can use recurring journal
entries to define automatic consolidating and eliminating entries. Examples include
intercompany debt, bad debt expense, and periodic accruals.
MassAllocations: MassAllocations are journal entries that utilize a single journal entry
formula to allocate balances across a group of cost centers, departments, divisions or
other segments. Examples include rent expense allocated by headcount or administrative
costs allocated by machine labor hours.

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Chapter 3 - Page 10

Journal Creation Methods

Journal Creation Methods


You can create journal entries using different methods in Oracle General Ledger. Select the
method according to your business objective.
Method
Organization Need
Procedure
Manual Journal
Create adjusting journal.
Enter debits and credits entries
and accruals manually
Reversing Entries Reverse errors and revaluation
Reverse the journal
journals.
encumbrance and accrual
amounts of a preexisting journal
entry
Recurring Entries Create journals using fixed
Create journals using skeleton,
variable amounts and
standard, or formula template
complex formulas. Create
multiple journal entries with the
same or similar information.
MassAllocations
Allocate from one account to
Calculate journals using an
many using a single formula.
allocation formula.

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Chapter 3 - Page 11

Journal Import
Journal Wizard

Integrate Oracle General Ledger


with other applications.
Integrate Oracle General Ledger
with an Excel spreadsheet for
journal creation.

Import journal entry information


from feeder systems.
Upload journal entries from an
an Excel spreadsheet.

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Chapter 3 - Page 12

Journal Components

Journal Components
Every journal entry belongs to a batch. You create a batch of journal entries by entering a
name, control total and description for the batch. This step is optional. If you do not enter batch
information, Oracle General Ledger automatically creates one batch for each journal entry,
defaulting the name and the latest open period.
All journal entries in a batch share the same period.
Entering a batch control total and description are optional.
If you do not enter a batch name, you must recall the journal entry by date.
Batch information is stored in the GL_JE_BATCHES table.
Note: Most companies use standard naming conventions for batches and journals to easily
identify who entered the journal and the purpose of the journal entries. An example would be:
Accrual <Initials of the person who entered the journal> today's date.
Journal Header Information
The header information identifies common details for a single journal entry, such as
name, effective date, source, category, currency, description, and control total.
Group related lines into journal entries.
All lines in a journal entry must share the same currency and category.
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Chapter 3 - Page 13

If no journal entry-level information is entered, Oracle General Ledger assigns a default


name, category, and the functional currency.
Header information is stored in the GL_JE_HEADERS table.
Journal Line Information
Journal lines specify the accounting information for the journal entry.
Total debits must equal total credits for a journal entry for all journal entries except
budget journal entries and statistical journal entries.
Description for each line can be entered optionally.
Information for journal entry lines is stored in the GL_JE_LINES table.

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Chapter 3 - Page 14

Grouping Journals into Batches

Grouping Journals into Batches


The use of journal batches is optional. If desired, you can enter a journal directly without
creating a batch by selecting New Journal in the Find Journals window. A batch name is
created for you using the source combined with a batch ID and system date as in Manual
<BatchID><Date>.
Batches can contain an unlimited number of journal entries.
All journal entries in a batch must share the same accounting period. You can enter
journals only in a current or future enterable accounting period.
Note: If you enter a period prior to the current accounting period and the user profile Journals:
Enable Prior Period Notification is set to Yes, General Ledger displays a message indicating
that you are entering a prior period journal.
If you post one journal entry, the entire batch posts.
When using the reversing functionality, you can choose to reverse all the entries in a
batch or just one journal.
You can post journal entries with unbalanced debits and credits if Suspense posting is
enabled. The difference is posted to the suspense account. If suspense posing is not
enabled, you cannot post an unbalanced journal entry except for statistical or budget
entries which do not have to be balanced to post.
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Chapter 3 - Page 15

How to Create a Journal Batch


1. Open the Find Journals window.
(N) Journals > Enter (B) New Batch
2. Select the New Batch button. The Batch window appears.
3. Enter the following information:
- Batch
Demo Computer Purchases and Sales
- Period
Select the latest open period
- Control Total 220000 (This field is optional)
4. Select the Journals button to enter a journal header and journal lines.
5. Enter the Journal Header information:
- Journal
Demo Computer Purchase
- Category
Addition
- Currency
USD
6. Enter the following journal lines:
Line
Account
Debit
Credit Description
10
01-000-1560-2113-000
85000
Computers and Software
20
01-000-1110-2113-000
5000 Cash
30
01-000-2210-2113-000
80000 Accounts Payable
7. Save. In the Decision window, select Yes to save the journal entry, even though there is a
control total violation.
8. In the Header level, select the New icon to create a second journal entry within this batch.
9. Enter the following header information:
- Name
Demo Computer Sales
- Category
Revenue
- Currency
USD
10. Enter the following information for the second journal entry:
Line
Account
Debit
Credit
Description
10
01-000-1210-2113-000
135000
Accounts Receivable
20
01-420-4110-2113-000
135000
Revenue
11. Save your work.

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Chapter 3 - Page 16

Manual Journal Entries

Manual Journal Entries


Your functional currency appears as the default currency when you open the Enter Journals
window.
Foreign Currency Journal Entries
- To enter a foreign currency journal, specify the currency you want to use and enter
conversion information.
- Conversion type can be Spot, Corporate, User, or other defined type.
- Conversion date must be within the accounting period defined for the journal entry.
- Enter a conversion rate if you enter User as the conversion type.
Statistical Journal Entries
- To enter a statistical journal entry, select STAT as the currency for the journal
entry.
- Statistical journal entries can be "one-sided" entries. The debits do not need to equal
credits for the journals to post.
- Combined Currency and Statistical Amounts
- You can enter a statistical journal entry by itself or combined with currency journal
amounts.
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Chapter 3 - Page 17

Set the Journals: Mix Statistical and Monetary profile option to Yes.
Define a statistical unit of measure for any natural account segment values you want
to combine statistical and monetary journal entries.
- When entering the journal lines, use debit and credit amounts for any monetary
currency. In the Statistical Amounts region, enter the statistical quantity.
Intercompany Journal Entries
- Enter the intercompany transaction. General Ledger automatically creates the
balancing intercompany journal lines based on the accounts you defined in the
Intercompany Accounts window.
How to Create a Manual Journal Entry
1. Open the Batch window.
(N) Journals > Enter (B) New Batch
2. Enter the Batch and Period.
3. (B) Journals
4. Enter data for the following fields:
- Journal
- Period
- Category
- Currency
- Description
5. Enter journal line information.
6. Save your work.
7. Select Yes to close the message box telling you that the debits do not equal the credits.
One-sided journal entries can be posted when the currency is STAT.

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Chapter 3 - Page 18

Performing Additional Journal Actions

Performing Additional Journal Actions


You can use the More Actions window to perform additional journal activities.
Reverse Journal: You can reverse a journal entry or batch. Select a reversal period if prompted.
Select the reversal method: Switch Debit/Credit or Change Sign.
Change Period: Select this button to change the period of any entry.
Post: Select this button to launch the concurrent process to post a manual journal entry and
update account balances. Posting is available in the More Actions window only if the profile
option Journals: Allow Posting During Journal Entry is set to Yes.
Note: You can also post journal entries by navigating to the Post Journals window.
(N) Journals > Post.
Funds Action: If you enable budgetary control for a set of books, you have the following
additional actions available for manual journal entries:
Check funds
Reserve funds
View results

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Chapter 3 - Page 19

Practice - Journal Entry


Tasks
In this practice you will learn how to create Journal Entries.

Business Situation
Create a Journal Batch
A memo from your controller informs you that the Consulting Department (# 420) has purchased
computers in the latest open period. The computers are valued at $85,000, of which the office is
paying $5,000 cash and the remainder will be carried as a liability over the following year. An
additional memo from your controller informs you of $135,000 of one-time sales revenues
earned by selling these computers on credit. Record the journals for these two memos in one
batch using a batch control total.
1. Name your journal batch XX_Computer Purchases and Sales for the latest open period.
Enter $220,000 in the optional Control Total field.
2. Name your first journal entry XX_Computer Purchases, and enter Additions for the journal
entry category. Choose the USD currency and enter the following journal entry:
Account

Description

Debit

Credit

01-000-1560-21XX-000

Computers and Software

01-000-1110-21XX-000

Cash

5,000

01-000-2210-21XX-000

Accounts Payable

80,000

3.

85,000

Name your second journal entry XX_Computer Sales with the category of Revenue. Enter
the following journal entry:
Account

Description

01-000-1210-21XX000

Accounts Receivable

01-420-4110-21XX000

Revenue

Debit

Credit

135,000
135,000

Entering Headcount Information


The controller also wants to keep track of headcount statistics for Departments 410, 420, and
430 starting in the latest open period.
4. Create a new batch. Name the journal batch XX_Employee Statistics for the latest open
period.
5. Name the journal entry XX_Employee Headcount and enter Headcount for the journal
category. Choose the STAT currency.
6. Enter the following journal entry:
Account

Description

Debit

01-410-9110-21XX-000

Dept. 410 Headcount

100

01-420-9110-21XX-000

Dept. 420 Headcount

150

01-430-9110-21XX-000

Dept. 430 Headcount

100

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Chapter 3 - Page 20

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

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Chapter 3 - Page 21

Solution - Journal Entry


Task
In this practice you will learn how to create Journal Entries.
Solution
Create a Journal Batch
1. Open the Find Journals window
(N) Journals > Enter (B) New Batch
2. Name your journal batch XX_Computer Purchases and Sales for the latest open period.
3. Enter 220000 in the optional Control Total field.
4. Select the Journals button to open the Journals window.
5. Name your first journal entry XX_Computer Purchases.
6. Enter Addition for the journal entry category.
7. Optionally, enter a description.
8. Enter the journal entry as shown below:
Line

Account

Debit

Credit

10

01-000-1560-21XX-000

85,000

20

01-000-1110-21XX-000

5,000

30

01-000-2210-21XX-000

80,000

9.

Save your work. Select YES in the Decision Box that appears asking you: "There is a
control total violation."
10. Place your cursor in the Journal field and press the down arrow key to enter the second
journal. Name your second journal entry XX_Computer Sales with the category of Revenue.
Enter the following journal entry:
Line
10

Account

Debit

01-000-1210-21XX-000

135,000

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Chapter 3 - Page 22

Credit

20

01-420-4110-21XX-000

135,000

11. Save your work and close the Journals window.

Entering Headcount Information


12. In the Batch window, arrow down in the Batch name field to start a new batch.
13. Name the new journal batch XX_Employee Statistics for the latest open period.
14. Select the Journals button.
15. Name the journal entry XX_Employee Headcount.
16. Enter Headcount for the journal category.
17. Choose the STAT currency.
18. Enter the journal entry as follows:
Line

Account

Debit (STAT)

10

01-410-9110-21XX-000

100.00

20

01-420-9110-21XX-000

150.00

30

01-430-9110-21XX-000

100.00

Credit (STAT)

19. Save your work. Answer yes in the Decision box to the message: "The debit total does not
equal the credit total."

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Chapter 3 - Page 23

Copyright Oracle, 2009. All rights reserved.

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Chapter 3 - Page 24

Posting Journals

Posting Journals
You have three methods to post journal batches.
Batch Posting: Navigate to the Post Journals window to post a group of journal batches.
(N) Journals > Post
Manual Posting: Select the More Actions button from either the Journals window or the Batch
window to post a journal batch at the time of entry. This option is available only if the profile
option Journals: Allow Posting During Journal Entry has been set to Yes. When you post
journals, Oracle General Ledger posts all journals in a batch. You cannot post individual
journal entries in a batch.
(N) Journals > Enter (B) More Actions
Automatic Posting: Run the AutoPost program to post journal batches automatically based on a
schedule you define.
(N) Setup > Journals > AutoPost
Posting Journal Batches
You can post actual, budget, and encumbrance journal batches.
The Posting Status for the batch must be Postable and the Period Status must be Open for the
following balance types:
Actual: Open period
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Chapter 3 - Page 25

Budget: Periods in an open budget year


Encumbrance: Any period up to the last period in the latest encumbrance year.
If applicable, check the Control Total for the journal entry batch. General Ledger does not post
journal batches if the total entered debits do not match the control total for the batch.
Correcting Batch Posting Errors
Review the batch to identify the posting error. Common explanations for unpostable batches
include:
Control total violations
Posting to unopened periods
Unbalanced journal entries
Correct the specific error and post the batch from the More Actions window.
Posting Status
Unposted
Pending
Processing
Selected for posting
Posted
Error
How to Post Journal Entries
1. Open the Find Journal Batches window.
(N) Journals > Enter
2. (B) More Actions
3. (B) Post
4. Note the concurrent request ID number.
5. Select OK in the Note window.
6. Open the Post Journals window.
(N) Journals > Post
7. In the Find Journal Batches window, find your batch.
8. Select the check box.
9. (B) Post
10. Note the concurrent request ID number.
11. Select OK to close the Note window.

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Chapter 3 - Page 26

Practice - Post Journals (Required)


Overview
There are several methods to Post Journals. You can use the Post button, the Post Journals
window or Autopost. In this practice, you will use the Post button and the Post Journals window
to post journals.

Assumptions

Replace XX with your terminal number or unique number.


You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Post Journals Using the Post Button
1. Responsibility = XXGeneral Ledger Super User, XXBOOK
2. Navigate to the Enter Journals window
(N) Journals > Enter
3.
4.
5.

Find your = XXComputer Purchases and Sales batch


(B) Post
(B) OK
(B) Requery until Batch Status = Posted
Close windows until you are back at the Navigator.

Post Journals using the Post Journals Window


6. Navigate to the Journals Post window
(N) Journals > Post
7. (B) Find
8. Select all of your batches and post them.

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Chapter 3 - Page 27

Posting to a Prior Period

Posting to a Prior Period


You can post journal entries to a prior accounting period, as well as to a prior fiscal year, as
long as the prior period is open. When you post to a prior period, General Ledger automatically
updates the beginning balances of all subsequent periods even if the period is closed. In
addition, if you post a journal entry into a prior year, General Ledger adjusts your retained
earnings balance for the effect on your income and expense accounts.
When you finalize your activity for an accounting period, simply close the period to prevent
the entry or posting of additional journal entries.
Displaying Warning Messages
To ensure that you do not accidentally enter a journal for a prior period, you can require
General Ledger to display a message whenever you try to enter a prior period journal. To use
this feature, have your system administrator set the profile option Journals: Enable Prior Period
Notification to Yes.
Having many accounting periods open affects the time required to run the posting program.
Therefore, keep the number of open accounting periods to a minimum. Also minimizing the
number of open periods prevents errors in posting to an incorrect period.
You should run a Trial Balance Report whenever you post to a previous fiscal year to ensure
that your Retained Earnings account is properly reconciled.
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Chapter 3 - Page 28

Overview of AutoPost

Overview of AutoPost
To facilitate journal batch posting, you can schedule automatic posting based on parameters
you specify. You can define multiple criteria sets that include a range of journal effective dates
and multiple AutoPost priorities.
For example, suppose after running Journal Import, you routinely post journal entries from
Payables to record your payments. To automate posting these batches, you can define a set of
criteria to select all unposted journal entries with a source of Payables, a category of Payments,
and a balance type of Actual for all periods. You can then schedule the AutoPost program to
run at the beginning of each week. Oracle General Ledger automatically selects and posts your
Payables payment batches to update your cash balances.

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Chapter 3 - Page 29

Defining AutoPost Criteria Sets

Defining AutoPost Criteria Sets


You can define multiple AutoPost criteria sets to automatically post journal entries. For each
criteria set, you can choose to select journal batches for posting based on:
Journal source
Journal category
Balance type
Period
Effective date
You can set the priority of the criteria set. The priority number must be a value from 1 to 99,
where 1 is the highest priority and 99 is the lowest. Batches with higher priorities are posted
first. You can use the same priority number more than once. You can also select whether all
priority sets are considered for posting or only sets with a specific priority number:
Submit All Priorities in Order: Submits the batches for all of your AutoPost priorities in
the same AutoPost run based on priority number.
Submit Only Priorities with Batches in Order: Submits batches with a specific priority
number only.
Note: Select this option when you need to balance the load on your concurrent manager. This
may be necessary since a single AutoPost request that contains multiple priorities can result in
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Chapter 3 - Page 30

numerous instances of the Posting program running concurrently. The load on the concurrent
manager is increased further if a large number of journal batches are selected by your AutoPost
priorities.

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Chapter 3 - Page 31

Running AutoPost

Running AutoPost
Once you define an AutoPost criteria set, run the AutoPost program to select and post any
journal batches that meet the specified criteria.
You can run the AutoPost program from:
AutoPost Criteria Sets window: (N) Setup > Journal > AutoPost
Submit Request window: Enter the AutoPost criteria set name in the Parameters window.
Review the AutoPost Execution Report to verify the journal batches selected for posting.

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Chapter 3 - Page 32

Guided Demonstration - Post Using AutoPost


Responsibility: General Ledger, Vision Operations (USA)
(N) Setup > Journal > AutoPost
1. In the Auto Post Criteria Sets window, enter:

2.
3.

4.

Criteria Set

Demo Journals

Enabled

Yes

Description

Post All Demo


Journals

Select Submit Only Priorities with Batches in Order and set the Number of Priorities to 1.
Enter the range of Journal Effective Dates:
From

To

Enter the AutoPost priorities:


Priority

Source

Manual

Category

All

Balance
Type

Actual

Period

All

5.
6.
7.
8.
9.

Save your work.


To run AutoPost, select the Submit AutoPost button.
To schedule AutoPost to run, select the Schedule AutoPost button.
Select Demo Journals in the Parameters window.
Select the Schedule button. Choose to run the job Periodically and enter 1 Day(s) in the
Re-run every field. Select the OK button.
10. Select OK to close the message notifying you that no End Date was entered.
11. (B) Submit

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Chapter 3 - Page 33

Performing Online Inquiries for Accounts and Journal Entries

Performing Online Inquiries for Accounts and Journal Entries


Oracle General Ledger provides three windows to view detail and summary information for
your account balances, journal entries, and subledger accounting transactions:
Account Inquiry
Journal Inquiry
Journal Enter
Whether you start in the Journals window or the Account Inquiry window, you can take
advantage of the graphical view of underlying accounting information for your transactions by
accessing the T Account and Activity Summary windows. You can also drilldown to see the
subledger transactions that created the journal entries.

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Chapter 3 - Page 34

Performing Account Inquiry

Performing Account Inquiry


Use the account inquiry feature to view actual, budget, and encumbrance account balances for
a specific period or periods in either entered or translated currencies.
You can select one of three buttons to access the type of account information you want to view:
Show Balances: Displays PTD and YTD account balances by period for both detail and
summary accounts.
Show Journal Details: Lists all the journal batches and entries that affect the account
balance. From here you can drill down to the full journal entry and subledger transaction.
Show Variance: Displays actual vs. budget or encumbrance amounts and the variance for
PTD, QTD, YTD, and PJTD (project-to-date) time periods.
Note: The Account Inquiry window displays balances from posted journal entries. To get the
most up-to-date account balance information, be sure all journal entries are posted.
How to Perform Account Inquiry
1. Open the Account Inquiry window.
(N) Inquiry > Account
2. Enter the following selection criteria for Accounting Periods:
- From
JUN-03
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Chapter 3 - Page 35

3.
4.

5.
6.
7.

- To
Current period
Accept the defaults for Currency and Primary Balance Type
In the Accounts region, use the Find Accounts window to enter a range of accounts:
- Segment
Low High
- Account
2210 2210
- Sub Account
0000 2113
Select account 01-000-2210-2113-000 and then select the Show Balances button.
In the Detail Balances window, put your cursor on the line for the current period. Select
the Journal Details button to view the journal information for this account.
Select the Show Full Journal button to drill down to the journal entry that created this
information.

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Chapter 3 - Page 36

Reviewing Balances with Account Inquiry

Reviewing Balances with Account Inquiry


When you perform an account inquiry, you can navigate from summary account balances to
detail balances. You have several navigation options to move between summary and detail
information:
From detail account balances, you can drill down to the journal entries that make up the
account balances or drill back up to the summary account balance.
From the journal entry, you can drill further to review the subledger transaction by
selecting the Drilldown button, when available.
If drilling down from a consolidated journal batch, you can drill further to see subsidiary
journal entry details and subledger transactions. The button, Drilldown to (subsidiary set
of books name), appears only if you are reviewing consolidated balances in your parent
set of books.

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Chapter 3 - Page 37

Reviewing Variances Between Account Balance Types

Reviewing Variances Between Account Balance Types


(N) Inquiry > Account > (B) Show Variance
You can compare balances between any primary and secondary account type, such as:
Actual and budget
Budget and budget
Actual and encumbrance
You must specify a primary and secondary balance type and select a budget or encumbrance
type in order to compare balance amounts.

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Chapter 3 - Page 38

Drilling Down to Subledger Details

Drilling Down to Subledger Details


You can drill down from the Account Inquiry, Journal Entry, and Journal Inquiry windows.
From the Account Inquiry window, drill down to the journal entry, then select the
Drilldown button, then the Show Transactions button.
From the Journal Inquiry and Journals windows, review the journal entry and select an
account combination in the journal entry. Select Drilldown from the Tools menu.
You can only drill down to subledgers if the journal entry was generated from one of the
following Oracle subledgers: Payables, Receivables, Inventory, Assets (except depreciation),
Projects, Purchasing, and Work in Process.
For Payables, you can see detailed information about payments and invoices.
For Receivables, you can see detailed information about invoices, receipts, adjustments,
or cash applications.
For Inventory, Assets (except Depreciation), Projects, Purchasing, and Work in Progress
you can see the detailed information about transactions.
Note: In order to drilldown to subledger transactions, you must enable the Import Journal
References option for each journal source in the Journal Sources window.

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Chapter 3 - Page 39

Note: If your implementation uses Multiple Organizations, you see only subledger transactions
that are associated with your current responsibility's organization (MO: Operating Unit profile
option). For more information, refer to the Oracle General Ledger User Guide.

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Chapter 3 - Page 40

T Accounts and Drilldown

T Accounts and Drilldown


You can view journal entries or subledger accounting entries in a graphical format using the T
Account and Activity Summary windows.
You access these windows from:
Enter Journals Window
(N) Journals > Enter (B) Find (M)Tools > T Accounts (B) T Accounts
Journals Window
(N) Journals > Enter (B) Find (B) Review Journal (M) Tools > T Accounts (B) T Accounts
Journal Entry Inquiry Window
(N) Inquiry > Journal >(B) Find (M) Tools > T Accounts
Account Inquiry Window
(N) Inquiry > Account (B) Show Journal Details (M) Tools > T Account or
(N) Inquiry > Account (B) Show Journal Details (B) Drilldown > (B) Show Accounting
Transactions (B) T Accounts
Accounting information is viewable in two different formats that can be customized:

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Chapter 3 - Page 41

T Accounts: Displays journal entries or subledger accounting entries in a graphical T


Account format including account, activity detail, net activity for the entry and account
balance information.
Activity Summary: Displays journal entries and subledger entries in a trial balance format
including account, net activity for the entry, and account balance information.
The Activity Summary and T Accounts windows are for display purpose only. You cannot
update records from these windows.
Drilling Down to Subledgers
Using the Tools menu, you can also drilldown to originating transactions in Oracle subledgers.

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Display Options Available While Viewing

Display Options Available While Viewing


The first time you try to access the T Accounts or subledger accounting windows, the Options
window is displayed. You can then specify which window opens the next time you choose to
view accounting information. You can set the T Accounts, Activity Summary, or Options
window as the default window.
Use the Options window to customize the T Accounts and Activity Summary windows to
display the exact information you want. You can choose to view:
Accounting information by full accounting flexfield or summarized by account segment.
Account description, balances, entered amounts, and activity in the T Accounts window.
Account description, balances, entered amounts in the Activity Summary window.
Debits and credits in separate columns or as a net amount in the Activity Summary
window.
The Options, T Accounts, and Activity Summary windows are all linked. From any of these
windows, you can access the other two windows by clicking the appropriate button.

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T Accounts

T Accounts
Use the T Accounts window to view journal entries in a graphical T Account format. General
Ledger displays information for the journal entry, such as accounts, activity details, net activity
for the entry, and account balances in both entered and functional currency. Customize the
display to meet your inquiry needs.
How to Use T Accounts and Activity Summary
1. Enter Demo% in the Batch Name field and select the Find button to retrieve the Demo
Computer Purchase and Sales journal batch.
(N) Journals > Enter
2. Select the Review Journal button.
3. Select a journal line and navigate to the T Accounts window.
(M) Tools > T Accounts
4. In the Options window, select the Segment radio button in the Organize By region. Select
the Company and Account segments from the List of Values.
5. Select the T Accounts button to view a graphical t-account display of the accounting
information.
6. From the T Accounts window, select the Activity Summary button to view the same
information in a trial balance format.
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7. Select the Options button to return to the Option window.

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Activity Summary

Activity Summary
The Activity Summary window contains a view of the accounting entry, summarized by
account in a trial balance format. This columnar layout groups debit and credit amounts by
account to provide a high-level view of the transaction.
In this window, you can:
Display debits and credits in separate columns with separate columns for entered and
functional currency, or
Display the net amount of debits and credits in one column.

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Practice - Perform Account Inquiry


Tasks
In this practice you will learn how to perform account inquiries.

Business Situation
You want to know the balance of the Computer & Software Account (01-000-1560-21XX-000).

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

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Solution - Perform Account Inquiry


Task
1. Open the Account Inquiry window.
(N) Inquiry > Account
2. Enter 01-000-1560-21XX-000 in the Accounts region for the current open period.

3.

Select the Show Balances button.

4.
5.

Select the Journal Details button.


Close the window.
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Practice - View Accounting Information Using T-Accounts and Activity


Summary
Overview
In this practice, you will learn how to view accounting information using the following Tools
windows:

T-Accounts window

Activity Summary window

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

Tasks
View the accounting information for the XX_Employee Headcount journal entry from the
previous Practice using:
T-Accounts
Activity Summary windows

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Solution: View Accounting Information Using T-Accounts and Activity


Summary
Tasks
View the accounting information for the XX_Employee Headcount journal entry from the
previous Practice using:
T-Accounts
Activity Summary windows
Solution
1. Use the Find Journals window to locate your XX_Employee Headcount journal entry by
entering XX_Emp% in the Journal name field.
(N) Journals > Enter
2. Select the Find button.
3. Place your cursor on the XX_Employee Headcount journal line.
4. From the Menu Bar, select Tools > T Accounts.
5. In the Options window, select the T Accounts button.

6.

View your T Account information for this journal entry.

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7.
8.

Select the Activity Summary button from the T Accounts window.


View the Activity Summary information for this journal entry.

9. To change view, select Options.


10. In the Organize By region, select Account and Sub-Account from the drop down list.
11. Select Activity Summary.

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Practice - Use Drilldown


Tasks
In this practice you will learn how to use Drilldown.

Business Situation
In a memo from your manager, she asked you to check the details of an $80,000 payment your
company made during the period Mar-01, Batch Name 1383 Payables 856365:A 10071. The
account number is 01-000-1110-0000-000. She specifically asked for the following information:

Bank account from which payment was made


Supplier paid

Invoice numbers

Assumptions

Use Vision database

Login information provided by your instructor

Replace XX with the number provided by your instructor


Use General Ledger, Vision Operations (USA) responsibility

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Solution - Use Drilldown


Task
In a memo from your manager, she asked you to check the details of an $80,000 payment your
company made during the period Mar-01, Batch Name 1383 Payables 856365:A 10071. The
account number is 01-000-1110-0000-000. She specifically asked for the following information:

Bank account from which payment was made


Supplier paid

Invoice numbers

Solution
1. Open the Find Journal window.
(N) Inquiry > Journal
2. In the Source field, enter Payables.
3. In the Period field, enter Mar-01.
4. Select the Find button.
5. In the Journal Entry Inquiry window, place your cursor on the appropriate line (Batch Name
1383 Payables, etc.) and select Review Journal.

6.
7.

In the Journals window, place your cursor on journal line 7.


On the Menu Bar, select Tools > Drilldown.

8.

In the Payables Payment Accounting window, select the Show Transaction button.

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9.

In the Payments window, scroll to view the information.

10. Select the View Invoices button.

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Reversing Journal Entries

Reversing Journal Entries


You can create reversing journal entries to reverse accruals, estimates, temporary adjustments
and reclassifications, or correct errors.
You can reverse a journal entry in two ways:
Switch Dr/Cr: Journal entry is reversed by switching the debit and credit amounts.
Change Sign: Journal entry is reversed by changing the original journal amounts from
positive to negative.
A journal entry can be reversed only once. You can reverse a reversing journal entry.
You can reverse a journal entry in any period after the journal entry is posted.
You control which responsibility can reverse journal entries directly from the Enter Journals or
Enter Encumbrance window by excluding the function called Enter Journals: Reverse from the
responsibility's menu.
Reversing Journal Batches
You can reverse a single journal entry or an entire batch of journal entries. When you
reverse a batch, General Ledger creates a reversing batch with a reversing journal entry
for each journal entry in the original batch.
General Ledger uses the reversal method assigned to the journal category in the Journal
Reversal Criteria window.
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Creating Reversing Journals

Creating Reversing Journals


You have two options for manually selecting journal entries for reversal. You can create the
reversal immediately or enter the period and generate the reversal later.
Use the More Actions window to immediately reverse any posted or unposted journal entry or
batch in the current period or future enterable period.
(N) Journals > Enter (B) Review Journal (B) More Actions
(N) Journals > Enter (B) Review Batch (B) More Actions
Use the More Details window to define a reversal period for a journal entry. Then, select the
journal entry at a later time, to be reversed in the Reverse Journals window.
(N) Journals > Enter (B) Review Journal (B) More Details
Use the Reverse Journals window to generate reversal journals with a predefined reversal
period, such as monthly accruals, that need to be reversed at the beginning of the following
period.
(N) Journals > Generate > Reversal
Note: If you select the Reversal button in the More Details Window, the reversing journal will
be created immediately.

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Practice - Reverse Journal Entries


Tasks
In this practice you will learn how to:

Find a journal batch

Reverse an entry
Post a batch

Enter a new journal batch

Business Situation
A memo from the MIS department states "Please correct the charge for computers for the latest
open period. The proper charge is $87,000, not $85,000."
Find a Journal Batch.
1. Query the journal batch XX_Computer Purchases and Sales.
2. Locate the Computer Purchases journal entry.
Reverse an Entry.
3. Reverse the journal entry in the latest open period using the More Actions button of the
Journals window.
Posting the Batch.
4. Post the reversal batch to negate the effect of the original batch. Note that the reversal
batch will be named Reverse "XX_Computer Purchases" <Date> <Time> <Request ID>.
Enter a New Journal Batch.
5. Create a new journal batch in the latest open period, named XX_Corrected Computer
Purchases. Use the Adjustment Category. Enter the following journal entry and post when
finished.
Line

Account

Debit

10

01-000-1560-21XX-000

87,000

20

01-000-1110-21XX-000

30

01-000-2210-21XX-000

Credit

Description
Computer and Software

5,000 Cash
82,000 Accounts Payable

Assumptions

Use Vision database


Login information provided by your instructor

Replace XX with the number provided by your instructor


Use General Ledger, Vision Operations (USA) responsibility

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Solution: Post Journal Entries


Task

Find a journal batch

Reverse an entry
Post a batch

Enter a new journal batch

Solution
Find a Journal Batch
1. Open the Find Journals window.
(N) Journals > Enter
2. Enter XX% in the Batch field of the Find Batch window, and select (B) Find.

3.

Select the XX_Computer Purchases journal entry and select (B) Review Journal.

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Reverse an Entry
4. From the Journals window, select (B) More Actions > (B) Reverse Journal to reverse the
journal entry.

5.

Select the same period the journal was created in to reverse the journal, and select the OK
button to the message that appears.

Posting the Batch


6. Post the reversal batch to negate the effect of the original batch. Note that the reversal
batch will be named Reverse "XX_Computer Purchases" <Date> <Time> <Request ID>.

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7.
8.

Find the reversing journal entry named Reverse "XX_Computer Purchases" <Date>
<Time> <Request ID>.
Select (B) More Actions > (B) Post

Enter a New Journal Batch


9. Open the Enter Journals window.
10. Select the New Batch button.
11. Name your new journal entry XX_Corrected Computer Purchases and use the current open
period.
12. Select the Journals button.
13. Enter the XX_Corrected Computer Purchase as the name of the journal and Adjustment for
the category.
14. Enter the following journal entry:
Line

Account

Debit

10

01-000-1560-21XX-000

87,000

20

01-000-1110-21XX-000

30

01-000-2210-21XX-000

Credit

Description
Computer and Software

5,000 Cash
82,000 Accounts Payable

15. Select (B) More Actions > Post to post your new journal entry.

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Reversing Journals Automatically

Reversing Journals Automatically


If you routinely generate and post large numbers of reversing journal entries as part of your
monthly procedures for closing and opening accounting periods, you can use the Automatic
Journal Reversal feature to save time and automate the process. This feature automatically
reverses your previous month's accrual journal entries and automatically post them, if desired.
Enable AutoReverse, and optionally AutoPost Reversal, options for journal categories.
Enter journals using categories with AutoReverse enabled.
Launch the Automatic Reversal program by:
- Submitting a request from the Submit Request window to run the Automatic
Reversal program for all journals that meet the submission requirements, or
- Setting the profile option, GL: Launch AutoReverse After Open Period, to Yes.
When you open the next period, the AutoReverse program finds all journal entries
that have categories with AutoReverse and, optionally AutoPost, enabled. It creates
reversing journal entries and, optionally, posts them.

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Journal Reversal Prerequisites

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Journal Reversal Criteria

Journal Reversal Criteria


(N) Setup > Journal > AutoReverse
When you define journal categories, you have the option of specifying journal reversal criteria
for controlling when and how your journal entries are reversed. Once criteria are defined and
saved for a category, all journal entries that match the criteria are selected automatically for
reversal by General Ledger. You may change the journal reversal criteria assigned to a
category at any time. The criteria are:
Reversal method: Select Switch Dr/Cr or Change Sign
Reversal period rule: Select a rule to determine which period to create the reversing
journal entry. Choose the reversal date if the set of books is using Average Daily
Balances feature.
- No default: Assigns the period you define when you manually enter your original
journal entry.
- Same Period: Assigns the same period of the original journal entry.
- Next Period: Assigns the period following the period of the original journal entry.
- Next Non-adjusting: Assigns the non-adjusting period following the period of the
original journal entry.

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Next Day: Assigns the day following the day of the original journal entry. This
appears in the list of values only if average balance processing is enabled for the set
of books. For more information, refer to the Oracle General Ledger User Guide or
11i General Ledger Financial Management Advanced Topic Average Balance
Processing.
Select AutoReverse checkbox: To mark all journals using this category to auto reverse.
Select AutoPost Reversal checkbox: Use in conjunction with the AutoReverse checkbox
to post the journal after reversal.
For example, to automatically reverse your previous month's accrual journal entries, assign the
following journal reversal criteria:
Category: Accrual
Method: Switch Dr/Cr
Reversal Period: Next Period
Select the AutoReverse checkbox
Select the AutoPost Reversal checkbox
Submitting Request to Automatically Reverse Journals
Select one of the following options to automatically reverse qualified journal entries:
Run the Open Period program to launch the Automatic Reversal program.
Note: If you do not want reversals to be generated when a period is opened, set the Profile
Option, GL: Launch AutoReverse After Open Period, to No.
Navigate to the Submit Requests window. Run the Automatic Reversal program.
(N) Reports > Request > Standard
All reversal journal entries with AutoReverse and AutoPost enabled are generated and posted
according to the reversal criteria that you define.
The Automatic Reversal program reverses only journal entries with a balance type of Actual.
You cannot use this program to reverse Budget or Encumbrance type journal entries. Budget
and encumbrance journal entries must be manually reversed.

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Guided Demonstration - Define Reversal Criteria


Responsibility: General Ledger, Visions Operations (USA)
(N) Setup > Journal > AutoReverse
1. Select Accrual in the Find Journal Category window and select OK. You will set up set up
automatic journal reversal for this category of journals.
2. In the Journal Reversal Criteria window, set the criteria to enable automatic reversal:

3.

Method

Switch Dr/Cr

Reversal Period

Next Non Adjusting

AutoReverse

Yes

AutoPost
Reversal

Yes

Save your work.

(N) Journals > Enter (B) New Journal


4. Create a journal entry that can be reversed automatically:

5.

Journal

Demo Accrue Airfare


Expense

Period

Current Open Period

Category

Accrual

Currency

USD

Enter journal lines


Line

6.
7.
8.

Account

10

01-420-7640-2113-000

20

01-000-2225-2113-000

Debit

Credit

Description

10000
10000

Save the journal entry.


Select the More Actions button.
Select the Post button. Select OK to close the Note window with the Concurrent Request
ID.

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(N) Setup > Financials > Open/Close


9. Open the next period to activate the automatic journal reversal process. The profile option
GL: Launch AutoReverse After Open Period must be set to Yes for this feature to work.
10. Select the Open Next Period button in the Open and Close Periods window. This initiates
the following:
Open Period Program
ProgramAutomatic Reversal
ProgramPost Journals
11. Open the Find Requests window.
(M) View > Requests
12. Select the Find button.
13. Select the ProgramAutomatic Reversal and select the View Output button to verify that
reversing journals have been created.
14. Select ProgramPost Journals and select the View Output button to verify that reversing
journals have been posted.
Alternately, you can post the reversal journal entry by running ProgramAutomatic
Reversal from the standard Submit Request window.

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Practice - Define Reversal Criteria


Tasks
In this practice you will learn how to define a Reversal Criteria for a Journal Category.

Business Situation
Log in to the General Ledger Vision Operations responsibility and define a journal category with
a name and description called XX_Student, replacing <XX> with your two-digit student number.
1. Create a journal category.
2. Define the reversal criteria for your journal category.
3. Select the Change Sign as the reversal method and Next Period for the reversal period.
4. Enable the AutoReverse and AutoPost Reversal options for your category.
5. Enter and post a journal by using your journal category. Enter this journal in the accounting
period prior to the latest open period. This prior period must have a status of "Open".
6. Launch the Automatic Reversal program.
Note: Only one of the students or the instructor should perform this step.
7. Query and review the Reversed Journal Entry.

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

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Solution - Define Reversal Criteria


Task
In this practice you will learn how to define a Reversal Criteria for a Journal Category.
Solution
Log in to the General Ledger Vision Operations responsibility and define a journal category with
a name and description called XX_Student.
1. Open the Journals Category window.
(N) Setup > Journal > Categories
2. In the Category field, enter XX_Student.
3. In the Description field, enter XX_Student.
4. Save your work.

5.

Open the Journal Reversal Criteria window.


(N) Setup > Journal > AutoReverse
6. Query your Journal Category.
7. In the Method field, select the Change Sign option.
8. In the Reversal Period field, select the Next Period option.
9. Select the AutoReverse check box.
10. Select the AutoPost Reversal check box.
11. Save your work.

12. Open the Journals window.


(N) Journals > Enter (B) New Journal
13. Name your journal entry XX_Journal Category.
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14. Enter this journal in the accounting period prior to the latest open period. This prior period
must have a status of "Open".
15. Enter XX_Student for the journal entry category.
16. Enter the entry as shown in the following table:
Line

Account

Debit

10

01-000-1110-21XX-000

20

01-000-1220-21XX-000

Credit

17,500.00
17,500.00

17. Save and post your journal entry.

18.
19.
20.
21.

Note: Only one of the students or the instructor should perform this step.
Open the Submit Request window.
(N) Reports > Request > Standard Select Single Request (B) Ok
In the Request Name field, select Program - Automatic Reversal. The Parameters window
appears.
In the Period field, enter the accounting period you want.
Click the Submit button to launch the program.

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22. To view your output.


(N) Other > Requests (B) Find (B) View Output

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Overview

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Chapter 3 - Page 75

ADI Elements

ADI Elements
Journal Wizard:
Design and automatically generate spreadsheet based journal entry worksheets. Create
journal entries and access the convenience of a spreadsheet: copying and pasting cells,
dragging and dropping ranges of cells, and using formulas to calculate journal line
amounts. Application Desktop Integrator validates the data you enter against the
accounts, security rules, and reference information defined in General Ledger. Upload
your spreadsheet journal entries to General Ledger and post to update account balances.
Budget Wizard:
Build a budget spreadsheet, based on the budgets and budget organizations defined in
General Ledger. Download existing budget balances from General Ledger or create a
new budget. Enter budget balances manually, use budget rules, or use formulas and
models. Automatically graph your budgets or use a variety of graph styles to compare
budget and actual balances.
Report Wizard:
Using a spreadsheet, access General Ledger's Financial Statement Generator (FSG). Take
advantage of FSG's reusable and interchangeable report objects, server-based processing
for high performance, and report scheduling.
Analysis Wizard:
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Select amounts from a spreadsheet report and drill into the underlying financial
information. The complete range of accounts supporting an account balance are available;
summary balances, detail balances, journal lines, and subledger detail. Use drag and drop
to pivot accounting dimensions and reorganize financial data to analyze "what if" and
"what happened" analysis of both summary and detail financial information.
Account Hierarchy Editor:
Create, maintain, and manipulate General Ledger account structures using an intuitive
drag and drop interface. Create new parent and child values or modify dependencies in an
existing hierarchy, copy your current hierarchy to make changes, or create a new
independent hierarchy to model a pending reorganization. Validation rules ensure correct
relationships are maintained for a consistent chart of accounts.
Request Center:
Submit, monitor, and publish any Standard (Fixed Format), Standard (Variable Format)
or Financial (FSG) report. Publish the output to a spreadsheet, the Web, or directly to the
database, while also applying custom formatting such as colors, fonts, and a corporate
logo. Format reports using themes that can be reused. Monitor any concurrent request
submitted by any Oracle Application against any database.

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Getting Started

Getting Started
When starting the Applications Desktop Integrator (ADI), the ADI Toolbar appears. Before
signing on, you have access to any functionality that does not require connection to a database,
such as a saved budget, journal, or report worksheets. ADI can be launched from a saved
worksheet if the Start ADI when Opening Worksheet is checked in the General Options
Settings tab.

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ADI Toolbar

ADI Toolbar
Signon:
Signon to Applications Desktop Integrator (ADI) with your user name, password, and
responsibility.
General Ledger:
Access General Ledger features and the following ADI Wizards: Budget Wizard, Journal
Wizard, Report Wizard, Analysis Wizard, and Account Hierarchy Editor.
Applications:
Access applications such as Request Center, Oracle Applications, or Excel.
Options:
Access general ADI options or options specific to General Ledger, Request Center, and
Language.
Tip Wizard:
Set Tip Wizard Options, display the Tip Wizard greeting, or disable the Tip Wizard.
Help:
Launch Oracle Applications Help.
Minimize:
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Minimize the ADI toolbar.


Close:
Close Applications Desktop Integrator (ADI).
Access ADI's functions from the toolbar buttons or from the keyboard using keyboard
shortcuts or "hot keys". For a list of hot keys, see the Applications Desktop Integrator User
Guide. Depending on security rules and your responsibility defined by your system
administrator, you may not have access to all the toolbar functionality.

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Signing On to ADI

Signing On to ADI
Applications Desktop Integrator (ADI) uses the same username and password security as the
application you are accessing. ADI validates profile options, set by the System Administrator,
to determine which features of ADI can be accessed and what functions can be performed by a
user.

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Selecting an Applications Database

Selecting an Applications Database


You can add or delete a database, or edit the specification for an existing database. Below are
the details you must complete to add or edit a database:
Name: Name of the database you are connecting to.
Gateway User ID (GWYUID): Oracle User ID for the applications sign-on security form.
The default is applsyspub/pub.
FNDNAM: Name of the main applications schema. The default is apps.
Connect String: The name of the database to connect to as specified in the configuration
of SQL*Net or Net8. To connect to a database via SQL*Net or Net8 the user needs to
define the connection details for the database in the configuration files (tnsnames.ora).
NCA Connection: To launch Oracle (NCA) applications directly from the toolbar.
Server ID: Required only if the database is using Applications Server Security.

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Selecting a Responsibility

Choosing a Responsibility
A responsibility is a level of authority you have been given to access functions and data in
Oracle Applications.
You may have more than one responsibility, each associated with one set of books in Oracle
General Ledger.
Check the Use Last Responsibility check box in the Signon window to use the same
responsibility used during your last Applications Desktop Integrator (ADI) session.
Once you are signed on to ADI, you can change your responsibility from within ADI by
selecting the Responsibility button from the ADI toolbar.

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Validation and Segment Security

Validation and Segment Security


Full support for independent, dependent, and table validated value sets.
Server-side validation if the profile option Flexfields: Validate on Server is set to Yes.
Otherwise, ADI uses its own client-side validation logic.
Enforces cross validation rules when the profile option Flexfields: Validate on Server is set to
Yes. If the profile option is set to No, cross validation is not done in ADI, but is done on
upload to General Ledger.
Enforces segment security rules that have been defined in General Ledger. For budgets, ADI
enforces segment security rules when the profile option GLDI: Enforce Budget Wizard
Segment Security is enabled.

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Toolbar Options

Toolbar Options
Reset Icons:
Reset the Applications Desktop Integrator (ADI) toolbar to the default ADI toolbar icons.
Add Icons Tab:
Define custom toolbar buttons to launch programs and processes external to ADI. For
each custom icon you choose to display on the toolbar, you must specify:
- Description: A name for the button.
- Command Line: The path and name of the program you want to associate with the
toolbar button. This is the program that launches when you choose the button.
- Working Directory: The pathname to the program executable.
Move Icons Tab:
Use this tab to move icons to and from the ADI toolbar. You can group and arrange icons
on the toolbar.
- Available Icons window: Lists the icons you can place on the toolbar. Click on the
+ sign to see the contents of poplists related to icons on the main toolbar.
- Toolbar Icons window: Lists the icons as they appear on the toolbar.

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Use the separator button to create groups of icons on the main toolbar to reflect
your style of working with ADI.
Switch Orientation:
Choose this option to toggle between horizontal and vertical display of the ADI toolbar.

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General Options

General Options
Worksheet Colors Tab: Define default color settings for journal, budget, report, and asset
worksheets. You can set colors for Field Text, Field Background, Context Text, Context
Background, Data Entry Area, and Sheet Background. The sample worksheet displayed to the
left of the Workbook Region options, shows you color choices as you make them.

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General Options

General Options
Theme Defaults Tab:
Set the defaults for new report themes. The report theme defaults are also used when the
theme you specify for publishing a report does not exist or is damaged.
Theme:
From the Region poplist, you can select Report Title, Report Heading, Column Headings,
Line Items, or Amounts. Once selected, the choices you make affect the related region, as
reflected in the sample report output. For each theme option, you can set the Font to use
for displaying text, the font Size, whether text is Bold, and/or Italic, the Text and
Background colors, and whether the report area should be enclosed by a Border.
Logo:
You can specify an image file to be displayed on your report output. Specify the path and
filename for the image, or choose the Find button to browse your directory structure.
Set the following options once you select an image:
Include Border: Surround the image with a narrow border
Include Shadow: Display the image with a drop-down shadow
Align: Align the image to the left or right side of your report output.
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Width:
- Select Title to display the image to the left or right of your report title.
- Select Heading to display the image to the left or right of you report heading.
Banner Use for DB Publishing: Enable the checkbox to include a banner in your reports
published to the database and displayed by Report Manager.
As you make your selections, ADI updates the sample image on the right side of the window.

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General Options

General Options
Settings Tab:
Set miscellaneous ADI parameters:
Start ADI when Opening Workbook:
Enable to automatically launch ADI when you open a budget, journal, or report
worksheet in Excel.
Start Request Center at Signon:
Enable to launch the Request Center automatically when you start ADI.
Show Upload Success Indicator:
Enable if you want ADI to display upload success indicators on your budget, journal, and
asset worksheets.
Zero Pad Account Values:
Enable if you want account segment values to be zero padded. For example, an account
number 50, where the segment is four characters in length, displays as 0050.
Enable Hot Keys:
Enable if you want to use special hot keys that are mapped from the keyboard to ADI's
functions.
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Always on Top:
Enable to force Window to always display the toolbar on top of all other open windows.
Tip Wizard:
Enable if you want to use Microsoft Agent. In the Character File window, enter the path
name for the character you wish to use. Choose the Show Characters button to test
display the Agent.

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General Options

General Options
Installation Tab:
Set installation parameters.
Run Custom Macros:
Enable to run custom macros before and after certain ADI processes.
Perform Self Check at Startup:
Enable if you want ADI to perform a self-check when you start the system.
Play Sounds for Events:
Enable if you want ADI to play sounds for events such as error messages.
Write Statistics File:
Enable if you want ADI to gather statistics when you run performance testing scenarios.
Directory and Files Regions:
The Integrator Directory, User Settings Directory, Integrator Program Filename, and the
Applications Program Filename. Do not modify these items unless to do so by your
System Administrator.

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Ledger Options

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Ledger Options

Ledger Options
Budget Options:
Set defaults for budget formatting and graphing in the Budget tab.
Format Region:
Default options for formatting budget worksheets.
- Decimal Places: The number of decimal places the system displays for all values in
your worksheet.
- Minimum Width of Value Columns: The minimum width for each of your budget
worksheet value columns.
- Update Budget Status: Enable to have ADI automatically update the budget status
information on the Create Budget Worksheet window anytime you make changes to
your budget worksheet parameters.
Graph Region:
Default options for displaying graphs when you chose the Create Graph button from the
ADI toolbar.
- Style: Choose Area, Bar, Column, Line, or Pie.
- 2D or 3D: Display two or three dimensional graphs.
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Generate Axes: Enable to include these values on the axes of your graphs.
Include Budgets and Actuals: Enable to instruct ADI to graph both budget and
actual values for Excel workbooks where you have decided to include both budget
and actual amounts.

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Ledger Options

Ledger Options
Journal Options:
Define general format settings for journal and asset worksheets in the Journal tab.
Format:
Change the appearance of fields and hints in your journal worksheet.
- Apply Format To: Select Fields or Hints then specify Font, Size, Italic, and Bold.
Layout:
Change journal worksheet layout options.
- Default Number of Rows: Select or enter a value from 1 to 65,500 for the number
of journal lines to display in your journal worksheet.
- Minimum Width of Value Columns: Select or enter a value from 1 to 20 for the
minimum width to be used in displaying amount fields.
Header:
Use to set the display of widths for Field Name, Context, and Field Value in a journal
worksheet header. Width is expressed as the number of Excel worksheet columns used to
display the item (1-10).

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Ledger Options

Ledger Options
Report Definition Options:
Choose settings to define new reports, or to copy report objects in the Report Definition
tab. Use the Report Wizard to define report objects which are row sets, column sets,
content sets, and row order.
Defaults:
Specify the following default values:
- Rows: Number of rows to use for new report worksheets.
- Columns: Number of columns to use for new report worksheets.
- Column Width: Width to use for each column definition.
- Line Item Width: Width of the report area where the row labels appear.
- Format: Format mask to use for amounts in the report.
- Factor: The factor (Billions, Millions, Thousands, Units, or Percentiles) to use for
displaying numeric values.
Indicators:
The colors used to display the Account Assignments, Calculations, and Exception report
indicators on your report worksheet. The report indicators are the small symbols that
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appear to the left of your row definitions or above your column definitions. They indicate
the number of account ranges assigned to a row or column, as well as whether there are
calculations defined or column exceptions applied.
Copy Options:
When you use the Report Wizard, the following options determine whether the copy
check boxes are checked or unchecked in the wizard windows:
- Make Copy Default: Select Yes and the copy check boxes are checked whenever
you create new report objects or define a new report as you are guided through the
wizard windows.
Enforcement Level:
Determine ADI prompt messages as you move through the wizard windows.
Prompt:
ADI displays a message asking if you want to make a copy or use the original report or
report object as you are guided through the Report Wizard.
Do Not Prompt:
ADI does not display a message.
Enforce Default:
ADI enforces the setting you select in the Make Copy Default field.
Note: These options are overridden is the ADI security related profile options are defined in
General Ledger.

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Ledger Options

Ledger Options
Report Analysis Options: Set options to help you drill down on financial reports in the Report
Analysis tab. If you change these settings, the change only apply to new drill that you initiate.
Drill Options Region: Select from the following:
Display Segment Values: Check the Grouped check box to have your account segments
displayed together as one value. Select the Individually check box to have your account
segments displayed separately.
Minimum Width Amount: Enter the minimum column width used for the amount
columns in your drill windows.
Include Descriptions: Mark the appropriate check box to display account descriptions in
your drill window for your account segments. Including descriptions can adversely affect
the performance of your drilldowns. Include only descriptions for critical account
segments.
Show:
- Account Type: Automatically show the account type when you drill down to detail
accounts.
- Suppress Zero Balances: Choose this option if you do no want zero balance
amounts to be displayed in your drill windows.
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Show Outline Indicators: Choose this option to display expand/collapse indicators


in your drill windows.
- Show Totals: Automatically included totals for the rows and columns in your drill
windows.
Environment Options Region: Choose from the following:
Double Click Drill Enabled: Mark this check box to enable drilldown by choosing an
amount from one of the displayed drill windows.
Hide Windows When Navigating: Mark this check box to close the active drill window
when you drill up to the previous or down to the next drill window.
Maximum Active Drills: Enter a number for the maximum number of drill context
windows you can have active at one time.
Note: Open drill windows consume system resources. If you have too many drill windows
open, you can impair the performance of your system.

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Language Options

Language Options
In the Language region, choose:
Use default: To use United States (U.S.) English
Specific: To specify a different language
In the Font region, choose:
Use default: To use the standard Applications Desktop Integrator (ADI) font.
Specific: To change the font settings to those that support the unique characters required
by the language.
Help Region
Applications Desktop Integrator (ADI) provides online help that you can view using a
default web browser. To use this feature, you must first set the base URL address to the
location where ADI's web-based help files are installed. In the Help Language region,
choose:
- Use default: To have your help files displayed in U.S. English.
- Specific: To select a specific language with which to display your help files.
Your system administrator can provide you with this location.

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Choosing Values from Lists

Choosing Values from Lists


Accessing the List of Values
You can access the List of Values in a variety of ways. Select the data entry field in your
journal, budget, or report worksheet then:
- Choose General Ledger or Assets from the ADI toolbar and select the List of
Values.
- Double-click the left mouse button while the cursor is in the data entry field.
- Some fields, such as account segment values, display a separate window from
which you can make specific choices (see below).
Choosing Account Segment Values
If your cursor is located within one of the account segments, ADI displays the Select
Account Segment Values window. You can choose segment values one of four ways:
- Enter the value directly.
- Choose from lists of values for each segment, one segment at a time.
- Use a secondary List of Values button to select from valid account code
combinations.
- Use a predefined account alias to reduce the selection list.
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Accessing the List of Values


ADI validates the account you select. If dynamic insertion is not enabled in General
Ledger, ADI issues a warning when you select an invalid account (one that has not been
defined as active in General Ledger).

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Practice - ADI Customization and Settings


Tasks
In this practice you will learn how to:

Sign on to Applications Desktop Integrator (ADI)

Customize your toolbar


Change settings for ADI and create a journal worksheet to view the difference in the
settings

Business Situation
Sign on to ADI
1. Launch ADI.
2. Sign on to General Ledger, Vision Operations (USA).
Add a Database
3. Add a database.
Customize Your Toolbar
4. Using the Toolbar Options icon in your toolbar, add the following icons to your toolbar:
Enter Budgets
Enter Journals
Define Report
Analyze Report
View Account Hierarchy
List of Values
Upload to Interface
5. Move these icons to the center of your toolbar and create separators before Enter Budgets
and after Upload to Interface.
6. Remove the Assets icon from your toolbar.
7. When you are finished, Select OK.
Set Worksheet Colors Tab
8. After selecting the General Options from the toolbar, view the settings in the Worksheet
colors tab.
9. Set the following options in the Worksheet Colors tab:
Workbook Region

Color

Field Text

White

Field Background

Purple

Context Text

Black

Context Background

Light Blue

Data Entry Area

White
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Sheet Background

Dark Gray

Change Theme Defaults and Setting Options


10. Set the following options in the Theme Default tab:
Region

Background

Text

Report Title

Black

Red

Report Headings

White

Blue

Column Headings

Black

Blue

Line Items

Red

White

Amounts

Black

White

11. Select the Setting Tab and check the Show Upload Success Indicator.
Identify Settings
12. Identify the feature in the Settings tab that correlates to each of the following options:
The toolbar can always be seen: ___________________________________
Display indicators on your worksheet: _______________________________
Use key equivalents for ADI: _______________________________________
When you open an ADI worksheet, also start ADI: ______________________
An account number of 50 would display as 0050: ________________________
The submitting and publishing feature of ADI would start when ADI was started:
_______________________________________________
Hint: Review the Settings tab in the General Options window.
Create a Journal Worksheet with New Colors
13. Create a journal worksheet to test your new layout colors.

Assumptions:

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

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Solution - ADI Customization and Settings


Task
In this practice you will learn how to change settings for ADI and create a journal worksheet to
view the difference in the settings.
Solution
Sign on to ADI
1. Double-click the ADI icon on your desktop to start ADI or follow your instructors login
directions.
2. Select the Signon icon. The Signon window appears.
3. Enter your Username and Password.
4. Select the database from the drop down list.

5.

Uncheck Use Last Responsibility.

6.
7.

Select General Ledger, Vision Operations (USA).


Select the OK button (green check mark) to sign on.

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Add a Database
8. Select the Define Databases button in the lower left hand corner with three cylinders on it.
The Select Database window appears.

9.

Select the Add Database button in the lower left hand corner with the green plus sign. The
Add Database Details window appears.

10. Complete the following fields in the Add Database Details window:
Name

Enter ClassDB as the database name. It must be at least 6 characters


long

Description

ClassDB

GWYUID

applsyspub/pub

FNDNAM

Apps

Connect String

Connect to the database assigned to you by your instructor

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11. Select the OK button (the green check mark) to confirm your database details.

Customize Your Toolbar


12. Click the Options icon on the ADI toolbar. Select Toolbar > Toolbar Options from the dropdown menu.

13. Select the Move Icons tab in the Toolbar Options window.
14. Place your cursor on the Ledger icon and click the plus sign (+) to see all available icons.
15. Place your cursor on the Enter Budgets icon in the Available Icons region so that it is
highlighted. Select the right arrow in the center part of the window to add the icon to the
Toolbar Icons region.
16. Repeat step 4 for the Enter Journals, Define Report, Analyze Report, View Account
Hierarchy, List of Values, and Upload to Interface icons.
17. Place your cursor on the Assets icon in the Toolbar Icons region. Click the left arrow to
remove it from the Toolbar Icons region.
18. Place your cursor on the Applications icon in the Toolbar Icons region. Select the separator
button () on the right side of the window to create a separator before the Applications
icon.
19. Place your cursor on the Enter Budgets icon. Select the up arrow and move the icon
between the separator that you just created and the Applications icon.
20. Repeat step 8 for the icons you added in step 5.
21. Place your cursor on the Enter Budgets icon in the Toolbar Icons region. Select the
separator button () on the right side of the window to create a separator before this icon.

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22. When you are finished, select the OK button. ADI will build your new toolbar. Verify it
against the one below. If it does not match, open the window again to make any changes.

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Set Worksheet Colors Tab


23. Select the Options icon on your toolbar. Select General Options from the list.
24. View the settings in the Worksheet Colors tab. Set the following options:
Workbook Region

Color

Field Text

White

Field Background

Purple

Context Text

Black

Context Background

Light Blue

Data Entry Area

White

Sheet Background

Dark Gray

Change Theme Defaults and Settings Tab


25. Select the Theme Defaults tab and set the following options:
Region

Background

Text

Report Title

Black

Red

Report Headings

White

Blue

Column Headings

Black

Blue

Line Items

Red

White

Amounts

Black

White

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26. Select the Settings tab and check the Show Upload Success Indicator option.
Identify Settings
27. Identify the feature in the Settings tab that correlates to each of the following options:
1. The toolbar can always be seen:
Always on Top
2. Display indicators on your worksheet:
Show Upload Success Indicator
3. Use key equivalents for ADI:
Enable Hot Keys
4. When you open an ADI worksheet, also start ADI:
Start ADI when Opening Workbook
5. An account number of 50 would display as 0050:
Zero Pad Account Values
6. The submitting and publishing feature of ADI would start when ADI was started:
Start Request Center at Signon
7. Select the OK button (green check mark) to close the General Options window
Create a Journal Worksheet with New Colors
28. Select the Enter Journals icon in your toolbar.
29. The Create Journal Worksheet window appears. Accept all defaults and select the OK
button (green check mark).
30. Your worksheet should look similar to the one below, reflecting the color changes you made
in Step 3 of this Practice:

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Overview of Using ADI to Create Journal Entries

Overview of Using ADI to Create Journals Entries


Create a Custom Worksheet
When creating a spreadsheet, you can include specific fields to meet your individual
needs.
Enter Journal Entries
Enter data using the features of Microsoft Excel. For example, you can use the copy and
paste functions to enter repetitive data or use formulas to calculate journal amounts.
Enter various types of journals such as foreign currency, function currency, budget and
encumbrance journals..
Create journal entries without losing the benefit of full online validation of all entered
data.
Force a journal to balance by accounting date. This is a requirement for companies, such
as financial institutions, that use the Average Daily Balancing (ADB) feature of Oracle
General Ledger. For more information refer to the Oracle General Ledger User Guide or
11i General Ledger Financial Management Advanced Topic Average Daily Balancing.
Save Worksheet as a Template
Save time by saving worksheets to your computer, then reusing them for similar journal
entries.
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Link Journal Worksheets


Link your journal worksheet to another worksheet.
Save a journal worksheet to a file, which may then be edited or used for recurring entries.
Upload Journals to Oracle General Ledger
Upload history or create account combinations.
Automatically upload your journal entry to the interface table and import into Oracle
General Ledger.
Control upload to prohibit unbalanced journal entries from being imported into Oracle
General Ledger even if suspense posting is set to Yes.

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Integrating with Oracle General Ledger

Integrating with Oracle General Ledger


You create your journal entries in a spreadsheet, using all of the Microsoft Excel features that
you are familiar with. When you are ready, upload your journal entries from Applications
Desktop Integrator (ADI) to the GL_INTERFACE table. From the interface table, submit the
Journal Import process to create postable journal entries.
Journal import can be submitted in three ways:
From ADI, at the same time you submit the upload process
From ADI as a separate submission process
From General Ledger using the Import Journals window.
When your journal entries have been validated by Oracle General Ledger, unposted journal
entries are created and can be reviewed in the Enter Journals window in General Ledger.

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Getting Started with ADI Journal Wizard

Getting Started with ADI Journal Wizard


There are three prerequisites before you can use Applications Desktop Integrator to enter
journal entries:
Define a set of books.
Open one or more accounting periods for your set of books.
Assign appropriate privileges to the profile option, GLDI: Journal Wizard Privileges.
You can set privileges as:
- None
- Entry
- Entry and Upload
- Entry, Upload, and Submit.
When you are ready to enter journals, select the Ledger icon on the ADI toolbar and then Enter
Journals from the poplist.

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Creating Journal Worksheets

Creating Journal Worksheets


To build a journal worksheet, select the type of journal entry that you want to enter. There are
four journal types to choose from:
Functional Actuals: Journal entries for the Actual balance type, using the functional
currency for your set of books. For statistical journal entries, select Functional Actuals
and change the currency to Stat.
Foreign Actuals: Actual journal entries using a foreign currency. You must provide either
a user-defined or table-validated conversion rate.
Budgets: Budget journal entries to be posted against a budget. Select a budget
organization from the poplist. Note: If your company requires budget journals
(predominantly used by public sector organizations), you can only update budgets using
ADI's Enter Journal feature. For more information, refer to the Oracle General Ledger
User Guide or 11i General Ledger Financial Management Advanced Topic Budgeting.
Encumbrances: Journal entries to update encumbrance balances.
Specifying the Number of Journals
Single Journal Entry: Select this option if all of your journal lines share common header
information, such as accounting period, category, and currency. A single journal entry
gives you one batch and one journal entry with many lines.
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Multiple Journal Entry: Select this option if you want to create more than one journal
entry or batch at a time. You can enter different header information for each journal entry
line. A multiple journal entry enables you to enter many batches, many journal entries,
and many lines. One disadvantage is that you have to enter the batch name, journal name,
and accounting period on each line.
Viewing Journal Worksheets
ADI builds your worksheet based on your default specifications.
The context region includes the journal type and style, the set of books, and the database.
The header region displays the journal category, source currency, accounting date, and
any other fields that you have chosen.
Either region can be hidden by clicking the appropriate button, View Context or View
Header.

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Customizing Journal Worksheets

Customizing Journal Worksheets


Select the Edit Layout button to open the Define Worksheet Layout window where you can
create or edit a journal worksheet. You can add or remove fields to customize the layout of
your worksheets to suit your needs.
Change the order in which the fields appear in your worksheet by using the directional arrows.
To add fields, select the check box next to any of the optional fields.
At the bottom of the Define Worksheet Layout window, check the Database Column check
box, if you want to display column names from the GL_INTERFACE table instead of field
names. The column names display option is provided for technical users of General Ledger.
Using the Header Tab
You can customize the layout of the header information for single-entry journal worksheets
only. This tab is disabled for multiple-entry journal worksheets.
Required Fields: You can not alter or delete any required fields. You can only change the order
in which they appear.
Functional Actuals and Foreign Actuals: Category, source, currency, accounting date.
Budgets: Category, source, currency, budget name, accounting date.
Encumbrances: Category, source, currency, accounting date, encumbrance type.
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Optional Fields
You can add any of the following fields to the worksheet by selecting the corresponding
checkbox.
- Group ID, batch name, batch description, journal name, journal description, journal
reference, reverse journal, reversal period and clearing company.
- If you do not select the Batch Name or Group ID fields to make your worksheet
unique, it is possible that journal entries from two different users will be grouped
together in the same batch during import. If you do not use either of these optional
fields, you can set the profile option, GLDI: Create Group ID to Yes, which enables
ADI to generate a group ID automatically during upload.
Using the Lines Tab
Required Fields
All journal types display Account, Debit, and Credit fields. Multiple-entry journals also
include journal category, source, currency and accounting date.
- Budgets: Period, budget name.
- Encumbrances: Encumbrance type.
Optional Fields
Description, stat amount, reconciliation, reference, invoice date, tax code, invoice
identifier, invoice amount, VAT context, line descriptive flexfield (DFF) context, line
DDF 1 to 10, captured info context, captured info DDF 1 to 10, line detail report, source
detail report, and additional lines.
- Multiple-entry journals: Group ID, batch name, batch description, journal name,
journal description, journal reference, reverse journal, reversal period, and clearing
company.
- Foreign Actuals: Converted debit and converted credit.
How to Create a Journal Worksheet
1. Open the Journal Worksheet window.
(N) Launch ADI > Sign On > Ledger > Enter Journals
2. Select the following parameters:
- Choose Journal Type Functional Actuals
- Number of Journals
Single
- Create Worksheet in
New Workbook
3. Select the Edit Layout button in the lower right hand corner of the Create Journal
Worksheet window.
4. Modify the worksheet layout. In the Header tab, select Accounting Date and use the
second up arrow button to move the Accounting Date to the top. Select the check boxes
for Batch Name and Journal Name to include them in the worksheet.
5. Select the Lines tab and add the Description field by selecting the check box.
6. Select the Check button to close the Define Worksheet Layout window. Select the Check
button again to close the Create Journal Worksheet window and open the Excel
spreadsheet.

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Note: Prior to running Enter Journals, go to Options > General Options > (T) Settings. Select
Show Upload Success Indicator. This will enable the green happy (successful) and red sad
(unsuccessful) faces that appear on the worksheet when you upload.

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Entering Data

Entering Data
When entering data, you can use the list of values feature to help you select a valid value.
Double-click in any one of the fields that contains the word List, such as Category, or click the
List of Values icon on your toolbar.
Note: Your toolbar must be invoked in order to use the double-clicking feature.
Marking the Upload Column
Use the Upload (UPL) column to mark rows for upload.
When you enter a journal line directly or use the list of values, the column is populated.
If you copy and paste a journal line, ADI does not place a flag character in the upload
column for your new journal line. To mark a column for upload, type any character on
your keyboard in the upload column cell for the journal line.
Note: When you start the upload process, you can choose to upload only flagged rows.
Entering Flexfield Combinations
You can enter flexfield combinations by one of the following methods:
- Typing in directly
- Using the list of values
- Using account aliases
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Cross Validation Rules


When you use the list of values, all segment values and combinations are validated. If
you have the profile option Flexfields: Validate On Server set to Yes, combinations that
were entered directly are cross-validated during upload instead of import. This forces the
user to correct the journal entry before it reaches the interface table.
If you enter a value directly, without using the list of values, the validation takes place
when you import, not when you entered the data.

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Uploading Journal Entries

Uploading Journal Entries


After you create your journal entry in Applications Desktop Integrator (ADI), you can upload it
to the GL_INTERFACE table by selecting the upload icon.
Then run the import process to import the journal entry from the interface table into the
GL_JE_BATCHES, GL_JE_ HEADERS, and GL_JE_LINES tables. This step can be done:
When uploading
As a separate process in ADI by selecting the Submit icon.
From General Ledger's Import Journals window.
As long as the journal entry is valid, Oracle General Ledger populates the three tables to create
a journal entry. The status of the journal entry is always unposted.
Using Journal Upload Options
There are two steps to uploading your entries: Upload and Import. They can be
performed separately, or they can be combined into one step by selecting the Start
Journal Import check box.
You can select whether to upload flagged rows or all rows. For example, you might set
up a template to record injury claims by region each period, with a journal line for each
region. Each period, enter the debit and credit information for applicable regions and
choose only the flagged rows for upload.
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You can select the type of pre-validation. All pre-validation types perform segment
security checking:
- Full: Validates all journal data and performs cross-validation.
- Partial: Validates all journal data except accounts.
- None: Performs segment security checking only.
Using Journal Import Options
If you select import journals as part of the upload process, you can set import options:
- Post Account Errors to Suspense: To post journal entry lines with errors to a
predefined suspense account. Suspense posting must be enabled for this set of
books.
- Create Summary Journals: To summarize all journal entry lines that share the same
account combination.
- Descriptive Flex: To import descriptive flexfields with or without validation. Use
this option when you have defined a descriptive flexfield in the Oracle General
Ledger Enter Journals window.
If you do not select Start Journal Import, you must submit the import process from ADI
as a separate step or run it from General Ledger.
Running Journal Import in ADI
You can continue using Enter Journals while Journal Import is running because the
concurrent process runs in the background.
If the option Show Upload Success Indicator in the General Options window is enabled,
the Messages column of the worksheet displays a green success indicator in each row that
has uploaded. Error messages are displayed even if the option is set to No.
You can use the Request Center window to check the status of your request. You may see
that the request has completed with a status of normal. You should still review the report
to check for import errors.
If you have restricted the ability to delete journal entries in Oracle, the Delete Journal
Import Data is not allowed.
Troubleshooting the Import Process
You must have a valid accounting date before you can upload.
You must have a value in either the debit or credit fields.
You must have a balanced journal entry if you have set the profile option GLDI: Force
Journal to Balance to Yes.
Note: ADI always checks for balanced journal entries. This profile option prohibits unbalanced
journal entries from being imported into Oracle General Ledger even if suspense posting is
enabled.
If you specify a reversal period but leave the Reverse Journal field blank, the journal
upload process fails for that journal. For a multiple journal worksheet, only the specific
journal row fails.
ADI interprets three adjoining blank rows as the end of the journal entry. Any lines that
appear after three blank rows are ignored.
You must rename any user-defined information that includes an apostrophe, such as a
journal source or journal category.
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During upload, Enter Journals validates your accounts and reference fields, such as
source and category. If you receive an error message notifying you of invalid values for
any of these fields, you need to choose a valid value, and then upload again.
Note: An error message is displayed for rows that did not upload successfully. For successful
uploads, a "happy face" is displayed in the message box if you have selected the option Show
Upload Success Indicator in the General Options window.
Viewing Journals in Oracle General Ledger
You can review your journal entries in the Enter Journals window in General Ledger.
When you are satisfied with your journal entries, you must post them to update account
balances.

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Practice - ADI Journal Entries


Tasks
In this practice you will learn how to:

Create a customized journal worksheet in ADI using the Journal Wizard

Enter and upload journal entries using the ADI Journal Wizard

Business Situation
Create a Worksheet
1. Create a single journal worksheet with a type of functional actuals.
Modify the Worksheet Layout
2. Modify the worksheet by moving the Category field to the very bottom of the header.
3. Include batch and journal name as well as line description.
Enter a Journal Entry
4. Enter a journal entry for the latest open period. The category is Reclass.
5. Verify the context information.
6. Name your batch and journal XX_Salary Reclass.
7. Write the batch and journal name here: ________________________________.
8. Enter the following journal entry:
Account

Debit

Credit

01 410 4150 21XX 000

2000

01 420 4150 21XX 000

1000

01 430 4150 21XX 000

1000

01 000 1210 21XX 000

4000

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Upload Your Journal Entry


9. Upload your journal entry. Accept the defaults.
Enter a second journal to record revenue by linking one worksheet to the other. Upload your
journal to the GL_INTERFACE table and then import into Oracle General Ledger (GL) as a
separate step. Post both journal entries.
Create a New Journal
10. Create another functional actual journal entry in the current workbook.
11. Further customize your worksheet by adding Group ID before you create the worksheet.
12. The date is the latest open period and the category is Revenue.
13. In the Group ID field, enter your two-digit student number and todays date (XXMMDDYY);
for example, 03020702 or 11013102.
14. Name your batch and journal XX_Revenue. Make sure that you use the same unique
identifier that you used earlier in this practice. If you do not use the same naming
convention, it will be difficult to find your journal entries in Oracle General Ledger.
15. Write the batch and journal name here: ________________________________.
Insert an Excel Worksheet
16. From the Excel menu bar, select Insert > Worksheet. This worksheet will be called Sheet5
(your worksheet may be numbered differently). Enter the following amounts, starting in the
top left-hand cell A1:
A1
B1
4000

Revenue for Dept. 410

2400

Revenue for Dept. 420

2000

Revenue for Dept. 430

17. Using the list of values, select the following segment value combinations in the new
worksheet called Journal2:
01 410 4150 21XX 000
01 420 4150 21XX 000
01 430 4150 21XX 000
01 000 1210 21XX 000
18. Link the amounts in the Journal2 sheet with the values you entered in Sheet5 for each
departments revenue. Make sure that you link to the credit field and not the debit field. Link
the descriptions on Sheet5 to the line descriptions of the worksheet.
Note: For the Receivables account, use a summing formula to add the other lines.
Upload the Journal Entry
19. Upload the journal but do not select Start Journal Import.
20. Accept all other defaults.
Import the Journal Entry
21. Select Submit Process > Journal Import from the ADI toolbar.
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22. Query the journal imports and find your journal entry using the Group ID number as the
criteria.
23. Accept all other defaults.
Review and Post the Journal Entry in Oracle Applications
24. Open the Oracle Applications. Sign on using the same username and password.
25. Query and post both of your journal entries to update the balances.

Assumptions

Use Vision database


Login information provided by your instructor

Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

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Solution - ADI Journal Entries


Task
In this practice you will learn how to:

Create a customized journal worksheet in ADI using the Journal Wizard

Enter and upload journal entries using the ADI Journal Wizard

Solution
Create a Worksheet
1. Click the Enter Journals icon on the toolbar.
2. Select Functional Actuals and single journal entry for a new workbook.

Modify the Worksheet Layout


3. Click the Edit the Layout button.
4. Highlight Category in the Required Fields area and use the second down arrow button to
move the Category field to the end.
5. Select the Journal Name and Batch Name check boxes.

6.

Select the Lines tab and add the Description optional field.
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7.
8.

Click OK to close the Define Worksheet Layout window.


Click OK again to close the Create Journal Worksheet window and open the Excel
spreadsheet. Your Excel spreadsheet should look like the following example:

Enter a Journal Entry


9. Select the latest open period designated by the instructor as the date. To do this, doubleclick to the right of the List-Date field on the Accounting Date line to open the list of values
from which to make your selection. This date determines the effective date and General
Ledger period for the journal.
10. Select the Reclass category by double-clicking to the right of the List-Text field on the
Category line. You can also click the List of Values icon on the ADI toolbar.
11. Verify the context information (e.g. Template Style, Set of Books). Hide it by clicking the
View Context Button.
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12. Name your batch and journal XX_Salary Reclass. Use your initials or your two-digit student
number as your unique identifier.
13. Write the batch and journal name here: ________________________________.
14. Enter the journal lines information.
15. Your journal entry should look like the following example:

Upload Your Journal Entry


16. Click the Upload to Interface icon on the toolbar.
17. Accept the defaults and click OK. This will validate the journal before it is interfaced. You
should receive a message notifying you that your upload was successful and that journal
import has been initiated. Click OK.

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Note: Keep the existing Excel spreadsheet open.


Create a New Journal
18. Click the Enter Journals icon on the toolbar to enter a new journal.
19. Select Functional Actuals for a single journal in the current workbook.
20. Click the Edit the Layout button.
21. Select the Group ID check box.
22. Click OK to close the Define Worksheet Layout window.
23. Click OK again to close the Create Journal Worksheet window and open the Excel
spreadsheet.

24. Select the latest open period and the Revenue category.
25. In the Group ID field, enter your two-digit student number and todays date (XXMMDDYY);
for example, 03020702 or 11013102.
26. Name your batch and journal XX_Revenue. Make sure you use the same unique identifier
that you used above. If you do not use the same naming convention, it will be difficult to find
your journal entries in Oracle GL.
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27. Write the batch and journal name here: ________________________________.


28. Your spreadsheet should look like the following example:

Insert an Excel Spreadsheet


29. From the Excel menu bar, select Insert > Worksheet. Enter the following amounts, starting
in the top left-hand cell A1:
4000

Revenue for Dept. 410

2400

Revenue for Dept. 420

2000

Revenue for Dept. 430

Note: Do not be alarmed if the number of your new worksheet is different than the one
listed here. Use the number that was generated when you added the worksheet.
30. Click on the Journal 2 tab (worksheet), which is on the bottom of your screen.

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31. Ensure the ADI toolbar is invoked. Double-click the Co column of the accounting flexfield on
the first journal lines row of your spreadsheet. Select the following account segment values
from the list of values:
01 410 4150 21XX 000
01 420 4150 21XX 000
01 430 4150 21XX 000
01 000 1210 21XX 000

32. Place your cursor in the Credit field of the first code combination (Department 410 line).
Type an equal sign (=) and toggle back to the Sheet5 tab on the bottom of your screen
(where you just entered amounts). Place your cursor in the field that contains 4000, which
should be cell A1. Press [Enter].
33. Go to next credit line (Department 420 line) in the Journal2 worksheet. Type an equal sign
(=) and link this to Sheet5 cell A2. Do the same for Department 430. Link the descriptions in
Sheet5 to the line descriptions in the journal worksheet.
Note: Your sheet reference may differ from Sheet5, but the cell should A2.
34. Go to the last journal line (1210-Receivables) in the Journal2 worksheet. Place your cursor
in the Debit field. Enter the following: =SUM(I18:I20).
Note: Make sure that the cell range in the parenthesis is the same as the range of the
first three lines of the Credit column on your spreadsheet.

Upload the Journal Entry


35. Click the Upload to Interface icon on the toolbar.
36. Do not select the Start Journal Import check box.
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37. Click the green check mark (OK button).


ADI loads your journal to the GL_INTERFACE table only.

38. Click OK to acknowledge the Upload Successful message.


Import the Journal Entry
39. Click the Ledger icon on the ADI toolbar. Select Submit Process > Journal Import.

40. The Select Process Type Window appears

41. Click the Query button.


42. Find your journal entry by matching the Group ID that you entered in the Group ID field in
Step 1 above.
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43. Select your journal entry by clicking it once.


44. Click the green check mark (OK button).
45. Acknowledge the message in the Applications Desktop Integrator window by clicking OK.
Review and Post the Journal Entry in Oracle Applications
46. Open the Oracle Applications.
47. Sign in using the same username and password that you used when you signed in to ADI.
48. Select the responsibility General Ledger, Vision Operations (USA).
49. Navigate to the Enter Journals window.
(N) Journals > Enter
50. Query your journal entries. In the Batch field, enter the first few letters of your journal entry
(starts with your unique identifier XX), followed by the % sign. Remember, this field is casesensitive.
51. In the Source field, enter Spreadsheet or use the list of values.

52. Click the Find button.

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53. You should see two unposted journal entries in this window. Click the Review Journal
button to view the journal entries.
54. From either the Enter Journals window or the journal entry, click the More Actions button to
post your journal entry.
Note: Using these forms, you must post the journal batches separately.
55. When your requests have completed, refresh the Enter Journals window by clicking the
Requery button.
56. The Enter Journals window should display the two journal entries. The status of the journals
should be Posted.

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ADI Diagnostic Wizard

ADI Diagnostic Wizard


The Diagnostic Wizard checks among 8 categories for errors. If a problem is identified, the
Diagnostic Wizard either automatically corrects it, or makes suggestions for you to follow.
You can choose the Report button to create a log file of all the problems that were found
during diagnostic testing. This file is called the DIAGWIZ.LOG file and is created in the
Windows TEMP directory.
It is recommended you run the Diagnostic Wizard occasionally, especially after new software
has been installed, to ensure that ADI continues to function properly.
For more information, refer to the Applications Desktop Integrator Installation Guide.

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ADI Performance Test Scenarios

ADI Performance Test Scenarios


The Applications Desktop Integrator User Guide lists performance tests you can run to identify
bottlenecks in your GL Journal Wizard Upload process. These tests must be completed in order
and in a single session to provide a complete and accurate analysis of performance
characteristics for your installation.
For more information, refer to the Applications Desktop Integrator User Guide and
Applications Desktop Integrator Installation Guide.

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Excel Versions Supported

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Profile Options

Profile Options
Applications Desktop Integrator (ADI) profile options are detailed below. In most cases, your
system administrator must set these profile options.
GL AHE:
Saving Allowed: Specify whether account hierarchy changes can be saved from the
Account Hierarchy Editor.
GLDI:
Analysis Wizard Privileges: Specify Analysis Wizard privileges. Settings are Yes or No.
GLDI:
AutoCopy Enforcement Level: Specify the enforcement level for the Report Wizard's
AutoCopy function. Settings are:
- None: Work with copies or originals of existing reports and report objects.
- Enforce Copy: Must create copies to work with rather than use originals that are
stored in the applications database.
- Enforce Original: Must work with originals that are stored in the applications
database.
GLDI:
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Enforce Budget Wizard Segment Security: Specify whether segment value security is
enforced when using the Budget Wizard.
GLDI:
Budget Wizard Privileges: Specify Budget Wizard usage privileges for individual users.
Settings are:
- None: Cannot use Budget Wizard.
- Entry: Can only enter budget data in a budget worksheet.
- Entry, Upload: Can enter budget data and upload that data to the General Ledger
Interface table.
- Entry, Upload, Submit: Can enter budget data, upload that data, and submit the
budget import process.
GLDI:
Journal Wizard Privileges: Specify Journal Wizard usage privileges for individual users.
Settings are:
- None: Cannot use Journal Wizard.
- Entry: Can only enter journals in a journal worksheet.
- Entry, Upload: Can enter journal data and upload that data to the General Ledger
Interface table.
- Entry, Upload, Submit: Can enter journal data, upload that data, and submit journal
import processes.
GLDI:
Report Wizard Privileges: Specify Report Wizard usage privileges for individual users.
Settings are:
- None: Cannot use Report Wizard.
- Define: Can define reports but cannot submit them.
- Submit: Can submit reports but cannot define them.
- Define, Submit: Can define and submit reports.
ADI:
Allow Sysadmin to View All Output: Specify whether the system administrator can view
all output generated by the Request Center. Settings are Yes or No.
ADI:
Use Function Security: Specify whether ADI uses the function security model. Settings
are Yes or No.
GLDI:
AHE Privileges: Specify Account Hierarchy Editor usage privileges for users. Settings
are Yes or No.
GLDI:
Allow Drilldown Across Books: Specify drilldown privileges across sets of books.
Settings are Yes or No.
GLDI:

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Balance by Accounting Date: Specify whether journal amounts for non-average daily
balance set of books must balance by accounting date before upload to General Ledger.
Settings are Yes or No.
GLDI:
Converted Entry Threshold: Specify a numerical threshold amount that converted
currency journals must balance within before upload to General Ledger.
GLDI:
Create Group ID: Specify whether ADI automatically creates a group ID for the journal
during upload to General Ledger. Settings are:
- None: No group ID automatically created.
- User ID: Acquires the ID number of the user uploading journals to the GL Interface
table.
- User ID + Julian Day: Acquires the ID number of the user uploading journals to the
GL Interface table and attaches the appropriate Julian day.
- Control Sequence: Acquires a number from the control sequence table.
GLDI:
Force Full Validation: Specify whether ADI forces full validation during budget and
journal upload to General Ledger. Settings are Yes or No.
GLDI:
Journal Source: Specify the mandatory journal source to be used during journal upload to
General Ledger.
GLDI:
Force Journal to Balance: Specify whether journal amounts must balance before upload
to General Ledger. Settings are Yes or No.
GLDI:
Maximum Effective Ranges for Drilldown: Specify the maximum account ranges that
can be drilled down on with the Analysis Wizard.

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Other Uses of Journal Wizard in ADI

Other Uses of Enter Journals in ADI


Create Templates
You can create journal entry templates by saving the worksheet as a Microsoft Excel file.
You can create a template with account numbers only (similar to a skeleton journal
entry), or with account numbers and amounts (similar to a standard journal entry).
Create GL Code Combinations
Create General Ledger (GL) code combinations by creating a journal entry with all of the
valid account numbers for your chart of accounts. Enter 0 in either the debit or credit
field. Upload and import the journal entry to Oracle General Ledger. Dynamic insertion
must be set to Yes for the chart of accounts structure used by this set of books.
Combinations are created automatically during the import process. Delete the unposted
journal entry in Oracle General Ledger.
Convert Financial History
You can facilitate the conversion process by creating journal entries for each month of
history that you want to upload into Oracle General Ledger. You can upload balances
from prior fiscal years.
Note: Make sure the prior periods are open.

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Setting Up the ADI Journal Features

Setting Up the ADI Journal Features


From the Ledger Options window, you can select the Journal tab to format the appearance of
your journal entry worksheets.
Format: Select Fields or Hints
Fields appear as row and column headings.
Hints appear as detail information.
Layout
Set the default number of rows (from 1 to 10,000) for the number of journal entry lines
displayed in your journal worksheet. Note: To manually add lines or rows to your journal
worksheet, you must unprotect the worksheet using Microsoft Excel's Tools menu. Select
(M) Tools > Protection > Unprotect sheet.
Set the minimum width of columns (from 1 to 20)
Header
Set display widths for the field name, context, and field value in a journal worksheet
header. The range of values is 1 to 10 columns.

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Setting Journal Profile Options for ADI

Setting Journal Profile Options for ADI


GLDI:
Allow Drilldown Across Books Controls drilldown privileges across sets of books.
GLDI:
Create Group ID Applications Desktop Integrator automatically generates a group ID
during journal upload depending on setting:
- None: Does not automatically create a group ID.
- User ID: Acquires the ID number of the user uploading journals to the GL interface
table.
- User ID + Julian Day: Acquires the ID number of the user uploading journals to
General Ledger and attaches the appropriate julian day.
- Control Sequence: Acquires a number from the control sequence table.
GLDI:
Converted Entry Threshold Forces converted currency journals to balance within a set
threshold amount before journal upload.
GLDI:

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Force Full Validation - Forces full validation during budget and journal uploads from
ADI. If validation fails, the upload does not continue.
GLDI:
Journal Source Specifies a single journal source that defaults on all journal worksheets
and used during upload from ADI to General Ledger. You can later query journals in
General Ledger by this source.
GLDI:
Force Journal to Balance Specifies whether journal amounts must balance before
upload to General Ledger from ADI.
GLDI:
Journal Wizard Privileges - You can assign one of four security levels:
- Entry: You can only enter journals in a journal worksheet.
- Entry, Upload: You can enter journals and upload them to the GL_INTERFACE
table.
- Entry, Upload, Submit: You can enter journals, upload them, and submit the journal
import process.
None: You have no access to any Enter Journals features.

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Overview of Importing Journal Entries

Overview of Importing Journal Entries


About Journal Import
Use Journal Import to integrate information from other applications such as payroll,
accounts receivable, accounts payable and fixed assets with your General Ledger
application. For each accounting period, you can import accounting data from these
feeder systems, then review, update and post the journal entries. You can also use Journal
Import to import historical data from your previous accounting system. General Ledger
lets you import data from multiple interface tables. This enables you to customize
interface tables to your specific requirements. Each particular source/group ID
combination will only have data in one interface table at a time. Journal import will
process data from one table at a time.
To import subledger and feeder system data to General Ledger:
- Set up General Ledger to accept Journal Import data by defining your set of books,
currencies, accounts, journal sources, and categories. You should also run the
Optimizer program, and define your concurrent program controls.
- Export data from your feeder system and populate the GL_INTERFACE table.
Note: If you use Multiple Reporting Currencies and Oracle subledger systems, you
must post to General Ledger from each subledger multiple times. Post first using
your primary subledger responsibility, which transfers amounts denominated in
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your functional currency. Post next using each of your subledger reporting
responsibilities, which transfers amounts denominated in your reporting currencies.
Run Journal Import. If your import program converts your journal entries from
other sources into the required data format, and all of the data is valid in your
General Ledger application, then Journal Import should run successfully the first
time. However, if you load data into the GL_INTERFACE table which is not valid
in your General Ledger application, Journal Import informs you of the specific
errors on the Journal Import Execution Report. Note: If you use Multiple Reporting
Currencies and Oracle subledger systems, and have chosen not to run Journal
Import automatically when posting amounts to General Ledger from your
subledgers, you must run Journal Import manually in your primary set of books and
in each of your reporting sets of books.
Use the Journal Import Execution Report to review the status of all import journal
entries. The Journal Import Execution Report prints a line for each journal entry
source from which you are importing journal entries.
If you encounter relatively few Journal Import errors, you can correct the data in the
GL_INTERFACE table.
If you encounter several Journal Import errors, you should delete the Journal Import
data from the GL_INTERFACE table, and correct the information in your feeder
system before rerunning Journal Import.
Review the journal entries created by Journal Import before you post them.
Post your Journal Import journal entries.

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Importing Descriptive Flexfields

Importing Descriptive Flexfields


Importing descriptive flexfields is optional.
You can choose to import descriptive flexfields with or without validation. If importing with
validation, Journal Import creates journal lines only if validation succeeds.
If you want to import descriptive flexfield information from Oracle subledgers, you must run
Journal Import separately in Oracle General Ledger using the Import Journals window. Choose
to import descriptive flexfields with or without validation.
Note: You should always import descriptive flexfield information with validation to avoid
corrupting journal lines.
If you want to create summary journal lines, you cannot import descriptive flexfields.

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Importing Journals

Importing Journals
(N) Journals > Import > Run
To run journal import from General Ledger, navigate to the Import Journals window. Enter the
source. You can choose No Group ID, All Group IDs, or specific Group IDs. You can use the
the list of values for this field to determine if the Group ID exists in the interface table. Then
select the Import button to start the import program.
Note: Oracle subledgers create a report when the transfer is run from the subledger that
displays the Journal Import Group ID. You can view the output in the Request window to
locate the Group ID.
You can run Journal Import in parallel for several sources as long as each request corresponds
to a unique Source/Group ID combination. The maximum number of combinations you can run
at one time is 20.
Oracle General Ledger names the created batch with the following naming convention:
<Optional User-Entered Reference><Source><Request ID><Actual Flag><Group ID>
Suspense Posting
If suspense posting is enabled for your Set of Books, select the Post Errors to Suspense
check box. Journal Import posts entries with invalid account combinations to a
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predefined suspense account or accounts, if you have defined one for each journal source
and category. Typical account errors are:
- Detailed posting not allowed.
- Account disabled for this date.
- Disabled account.
- Account code combination is not valid.
- Account code combination ID does not exist.
If you choose not to post errors to a suspense account, Journal Import rejects any
source/group ID combination with account errors.

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Multi-Table Journal Import

Multi-Table Journal Import


Using MultiTable Journal Import
General Ledger provides you with the Journal Import Package
(GL_JOURNAL_IMPORT_PKG) to create a new interface table and populate the
GL_INTERFACE_CONTROL table. In addition, you can create your own procedures to
populate your interface table with data and to launch Journal Import. This enables you to
automate the entire procedure.
Below are the steps to follow to use MultiTable Journal Import:
- Create a new interface table. New interface tables must have the same columns as
the GL_INTERFACE table but you can add more if your needs require.
- Populate the new interface table with data.
- Populate the GL_INTERFACE_CONTROL table with one record for each
source/group ID combination that was put into the interface table. Specify a table
name that the data is to be retrieved from for each combination. Specify what
should be done with the data once it has been processed.
- Start Journal Import using the Import Journals window. Specify each of the
source/group ID combinations that you want to import. If there are multiple tables,
Journal Import will be launched multiple times. _
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If Journal Import indicates that the data is erroneous, then correct the data using the
Correct Journal Import Data window or delete it using the Delete Journal Import
Data window. If you choose to correct it, then start Journal Import again using the
Import Journals window.

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Journal Import Group By Effective Dates Description

Journal Import Group By Effective Dates Description


Journal Import now provides an option to automatically group journal lines into journal entries
based on effective dates. This functionality was previously only available to customers using
average balance processing.
Through a new profile option called GL Journal Import: Separate Journals by Accounting
Date, you can choose to separate journal lines into separate journals by different accounting
dates, even if using a standard set of books. This includes journals originating from Oracle
subledger applications.

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Journal Import Group By Effective Dates Benefits

Journal Import Group By Effective Dates Benefits


By grouping and monitoring business transactions by date, rather than by accounting period:
You have greater flexibility in how you want to account for your business transactions.
You can account for them by effective date or by accounting period.
You facilitate financial auditing and compliance with the new Sarbanes-Oxley Act.
For DBI customers, you have better information that is updated on a daily basis. This
enables you to make better business decisions and react more quickly to opportunities.

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How to Set Up Journal Import Group By Effective Dates

How to Set Up Journal Import Group By Effective Dates


1. Set the profile option called GL Journal Import: Separate Journals by Accounting Date.
- If set to Yes, journals that pass the GL_INTERFACE table via Journal Import will
be separated into separate journals by accounting date.
- If set to No, journals will be grouped by accounting period.
2. Run the Journal Import process.
Note: If you want journals that originated from Oracle subledgers to be separated by
accounting date, you must set this profile option for each Oracle subledger application.

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Using Journal Import Group By Effective Dates

Using Journal Import Group By Effective Dates


If you have two journal lines in the same accounting period but with different effective dates,
by setting the profile option to Yes, you can create two separate journals; one for each line that
has a different effective date. Both journals will still be grouped in the same journal batch.
By setting the profile option to No, the lines will be grouped by accounting period and placed
in the same journal. This is the current functionality for standard sets of books.

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Importing Journal References

Importing Journal References


You can import subledger transactions into General Ledger in detail. The Journal Import
process creates one journal entry line for every transaction line in the the subledger.
To reduce the size of journal lines and speed the import process, you can choose to summarize
journal entry information when you run Journal Import:
Select Create Summary Journals check box to have Journal Import summarize all
transactions for the same account, period, and currency into one debit and credit line.
When Journal Import creates summary journal lines, all mapping back to the source
information is lost. However, you can preserve transaction detail for summary journal
lines in the GL_IMPORT_REFERENCES table:
- Select the Import Journal References check box in the Journal Sources window for
each journal entry source you wish to preserve. (N) Setup > Journal > Sources.
- Oracle General Ledger populates the GL_IMPORT_REFERENCE table with one
record for every transaction in your feeder system.
You cannot import descriptive flexfields if you create summary journals.
Note: If you want to be able to drill down to subledger transaction lines, such as Payables
invoices, from General Ledger, select the Import Journal References check box for the
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subledger source in the Journal Sources window whether you transfer in summary or detail
from subledgers.

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Reviewing Journal Import Data

Reviewing Journal Import Data


Review the status of accounting data imported into Oracle General Ledger using the Journal
Import Execution Report. Use the Error Key section on the report to identify the types of errors
found.
The journal import program rejects all transactions of a Source and Group ID if any of its
journals have errors.
Use the journal import verification process to identify and correct journal import errors.

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Journal Import Verification Process

Journal Import Verification Process


Validation When Using Open Interfaces
Journal Import validates all of your data before it creates journal entries in General
Ledger. If you allow suspense posting for your set of books, Journal Import assigns lines
with invalid accounts to the suspense account. Journal Import rejects all other invalid
lines, and they remain in the GL_INTERFACE table, where you can correct them online
in the Correct Journal Import Data window or in your feeder systems. Journal Import also
prints your error lines in the Journal Import Execution report.
Journal Level Validation
Journal Import validates the following attributes to ensure that your journals contain the
appropriate accounting data:
- Account combinations
- Unbalanced journal entries
- Periods
- Foreign currency errors
- Budget information
- Encumbrance information
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- Other miscellaneous items


Correcting Journal Import Errors Online
If your Journal Import results in relatively few errors, you can make online corrections to
the data that was rejected, then rerun Journal Import to import the corrected data.
(N) Journals > Import > Correct
The Correct Journals Import window displays each field of the GL_INTERFACE table.
From this window you can query import lines that have a status of Error or Corrected.
Make your corrections.
- If you are correcting Accounts data, you must enter an account segment value or
enter a valid Code Combination ID.
- Segment values override Code Combination IDs, so you must first clear all
displayed segment values before changing the displayed Code Combination ID.
The Status changes to Corrected after you save your changes.
Select the Import Journals button to return to the Import Journals window.
Deleting Journal Import Data to Correct Errors
If you encountered a high number of errors from the Journal Import process, you should
delete all information from the interface table and rerun Journal Import after correcting
the errors.
(N) Journals > Import > Delete
If you delete import data that originated from an Oracle subledger, you must correct the
data in the subledger and reimport it from the original source:
- Delete all the import data for your journal entry source and group ID from the
GL_INTERFACE table.
- Correct the errors in feeder system.
- Repopulate the GL_Interface table.
- Rerun Journal Import.
Caution: Do not delete journal import data from Oracle subledgers such as Oracle Payables or
Oracle Receivables. The Oracle subledgers set flags to indicate the transactions have been sent
to Oracle General Ledger. These flags must be reset before the transactions can be resent.

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Using Journal Entry Sources and Categories

Using Journal Entry Sources and Categories


(N) Setup > Journal > Sources
Journal entry sources indicate where your journal entries originate.
General Ledger supplies a list of predefined journal sources for journal entries that originate in
Oracle subledger applications, such as Assets or Payables.
You can define your own journal sources for non-Oracle feeder systems.
For each journal source, specify whether to import detail reference information for summary
journals imported from your Oracle subledger applications. This is required if you want to be
able to drilldown to the original subledger transaction from balances in General Ledger.
With journal sources, you can:
Define intercompany and suspense accounts for specific sources.
Run the AutoPost program for specific sources.
Import journals by source.
Freeze journals imported from subledgers to prevent users from making changes to any
journals that have been transferred to General Ledger from that source. This ensures that
transactions from your subledger systems reconcile with those posted in General Ledger.

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Report on journals by source using the Foreign Currency Journals or General Journals
reports.
If you have journal approval enabled for your set of books, you can use journal sources to
enforce management approval of journals before they are posted.
If you are using average balance processing, select an effective date for your journal source.
For more information, refer to the Oracle General Ledger User Guide or 11i General Ledger
Financial Management Advanced Topic Average Balance Processing.
Journal Categories
(N) Setup > Journal > Categories
Journal categories help you differentiate journal entries by purpose or type, such as
accrual, payments, or receipts. When you create journal entries, you must choose the
default or specify a category.
Using categories, you can:
- Define intercompany and suspense accounts for specific categories.
- Use document sequences to sequentially number journals by category.
- Define journal categories for accruals and estimates. Use these categories when you
define criteria for AutoReverse and AutoPost.
Journal categories appear in standard reports, such as the General Journals report. You
can run reports by category, by source, or category and source. For example, for month
end close, you might run a report listing all journals that were created for the period with
a category of accruals. This way you can review the accrual entries created before
finalizing your close.
Caution: Oracle General Ledger does not have a standard report showing Journal Import
reference information. You must create a custom report to access this information.

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Defining Suspense Accounts

Defining Suspense Accounts


(N) Setup > Accounts > Suspense
When you define a set of books, you can optionally assign a default suspense account.
When you define a suspense account, the difference of any out of balance journal entries are
posted to this account.
This default account uses a source and category of Other.
Note: Do not assign a suspense account if you want to require balanced journal entries.
Using Additional Suspense Accounts
You can define additional suspense accounts, by source and category, to further segregate
your out of balance postings.
Additional suspense accounts must be associated with a source and category.
Multiple combinations of source and category can be assigned to the same suspense
account.
General Ledger automatically creates a suspense account for each balancing segment
value. Example: If you define a suspense account for company segment 01, General
Ledger automatically creates a suspense account for any other company segment value in
your chart of accounts.
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Note: Any sources or categories that do not have a suspense account defined in the suspense
accounts window use the default suspense account defined in the set of books window.
Examples for Using Suspense Accounts
Use suspense accounts to post disputed transactions. When the dispute is resolved, you
can transfer the balance out of the suspense account.
Note: Using suspense accounts generally increases the time it takes to reconcile transactions.

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Setting Up Statistical Entries

Setting Up Statistical Entries


(N) Setup > Accounts > Units
Set the profile option, Journals: Mix Statistical and Monetary to Yes in order to be able to enter
both monetary and statistical amounts in a single journal entry line.
Identify the account segments you want to associate with a statistical unit, such as:
Payroll account and hours worked
Building maintenance account and square feet.
In the Statistical Units of Measure window, associate units of measure with accounts.
Enter only one unit of measure for each account segment.
You can change this association at any time.
Statistical quantities are not included in running totals or control totals.

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Practice - Define Suspense and Statistical Accounts


Tasks
In this practice you will learn how to define:

Suspense Accounts

Statistical Accounts

Business Situation
When your company created its Set of Books within Oracle General Ledger, it allowed
Suspense Posting to automatically balance out-of-balance journals. You are now going to define
an additional Suspense Account.
1. Use the following to define your Suspense Account:
Source

XX_Purchasing

Category

XX_Adjustment

Account Code
Combination

01-000-1110-21XX-000

Description

Optional

Assumptions

Use Vision database

Login information provided by your instructor

Replace XX with the number provided by your instructor


Use General Ledger, Vision Operations (USA) responsibility

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Solution - Define Suspense and Statistical Accounts


Task
In this practice you will learn how to define:

Suspense Accounts

Statistical Accounts

Solution
1. Define a Suspense Account using the following information.
Source

XX_Purchasing

Category

XX_Adjustment

Account Code Combination

01-000-1110-21XX-000

Account Description

Optional

2.

Open the Suspense Accounts window.


(N) Setup > Accounts > Suspense
3. Enter the Source, Category and Account Code Combination from the table above.
4. Save your work.
5. Define a Statistical Account
Note: Make sure the profile option, Journals: Mix Statistical and Monetary is set to Yes.
6. Open the Statistical Units of Measure
(N) > Setup > Accounts > Units
7. Select the account from the list of values as assigned by instructor.
8. Enter the unit of measure: Copy Usage
9. Enter the description: Copies to date.
10. Save your work.

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Running Journal Entry Reports

Running Journal Entry Reports


General Ledger provides the following standard reports for information about journal entries:
General Journal Report:
Prints journal batches and journal entries by type, currency, period, source, or batch. You
can run this report for posted journals, unposted journals, or error journals and trace the
transaction back to the original source.
Journal Batch Summary Report:
Posted journal batches for a particular balancing segment value, currency and date range.
Shows debit/credit totals by category. Reports actual balances only.
Journal Entry Report:
Journal entries for a period or range of periods.
Journal Line Report:
Journal entries grouped by batch for a particular category, currency and balancing
segment value.
Journals by Document Number Report:
Journal entry information by range of document numbers. Also reports document
numbers with no journal entries.
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Journals General:
Details for each journal entry. Use to check journal entries, entered or imported, prior to
posting.
Journals Day Book:
Posted journal entries and details listed chronologically for a range of dates, journal
source, or journal category.
Journals Vouchers:
Use to print journal vouchers by batch for a specific journal source, category, and
document sequence.
Journal Check Report:
Use to check manual journal entries prior to posting.
Note: Use Journal Reports to review information relevant to your journal entries for all
currencies and posting statuses. The same segment security rules defined to restrict user access
to segment values in your accounting flexfield are extended to these reports.

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Setting Profile Options

Setting Profile Options


Journals: Allow Multiple Exchange Rates - Controls whether to allow multiple conversion
rates within a journal entry.
Journals: Allow Posting During Journal Entry - Controls whether you can post a manual
journal entry from the Enter Journals window.
Journals: Default Category - Specify the default category for manual journal entries.
Journals: Enable Prior Period Notification - Controls whether General Ledger notifies you
when you are entering a journal for a prior period.
Journals: Mix Statistical and Monetary Controls whether you can enter statistical amounts in
the same journal line as monetary amounts.
Journals: Override Reversal Method - Controls whether you can override the specified default
reversal method.

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Summary

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Chapter 3 - Page 175

Summary

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Chapter 3 - Page 176

Summary

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Summary Accounts
Chapter 4

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Chapter 4 - Page 1

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Summary Accounts
Chapter 4 - Page 2

Summary Accounts

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Chapter 4 - Page 3

Objectives

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Chapter 4 - Page 4

Overview

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Summary Accounts
Chapter 4 - Page 5

Overview

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Chapter 4 - Page 6

Defining Summary Accounts

Defining Summary Accounts


The first step in defining your summary accounts is to determine your summary account needs.
Summary accounts provide you with significant benefits when you produce summary reports
and perform allocations.

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Chapter 4 - Page 7

Summary Account Examples

Summary Account Examples


Here are some common dimensions and examples of ways you can summarize information
within each dimension:
Company:
A segment that indicates legal entities. You might summarize companies by major
industry, such as Electronics Companies; by regions within a country, such as Eastern
Companies; or by country group, such as European Companies.
Cost Center:
A segment that indicates functional areas of your business, such as Accounting,
Facilities, Shipping, and so on. You might keep track of functional areas at a detailed
level, but produce summary reports that group cost centers such as Accounting, Planning
& Analysis and Facilities, into one division called Administration.
Account:
A segment that indicates your "natural" account, such as Cash, Accounts Payable, or
Salary Expense. You will likely summarize your accounts by account type, namely your
Assets, Liabilities, Equity, Revenues and Expenses. You might also summarize at a more
detailed level, with summary accounts like Current Assets or LongTerm Liabilities.
Product:
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Chapter 4 - Page 8

A segment that indicates products. You might want to summarize products into product
groups such as personal computer components, storage devices, and so on.
District:
A segment that indicates geographical locations, such as Northern California, Central
Florida or Western New York. If you define segments that record data within smaller
geographical areas, such as districts, you can easily summarize districts into states, or
even into groups of states you can call regions.

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Chapter 4 - Page 9

Detail Versus Summary Accounts

Detail Versus Summary Accounts


Summary Accounts:
Updated when journals are posted to a corresponding detail account
Enable online summary inquiries
Speed concurrent processing
Detail Accounts:
Allow direct posting of business transactions and journals

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Chapter 4 - Page 10

Summary Accounts Versus Parent Values

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Chapter 4 - Page 11

Parent Values and Rollup Groups

Parent Values and Rollup Groups


After determining your needs and organizing your summary account structure, define your
parent values and your rollup groups.
Note: You can use the Account Hierarchy Manager or the Account Hierarchy Editor, if
Applications Desktop Integrator is installed, to create and edit your account hierarchies
graphically. You can use the Account Hierarchy Manager or the Account Hierarchy Editor to
define parent and child segment values, as well as rollup groups.

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Chapter 4 - Page 12

Rollup Groups

Rollup Groups
About Rollup Groups:
A rollup group is a collection of parent segment values for a given segment
A value cannot belong to a rollup group unless it is a parent value that has child values
Parent values and child values belong to the same value set, which is attached to a key
flexfield segment

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Chapter 4 - Page 13

Summary Account Templates

Summary Account Templates


Oracle General Ledger uses summary templates to create summary accounts.
Oracle General Ledger uses the templates in combination with parent segment value
definitions to create summary accounts.
You specify when you want Oracle General Ledger to begin maintaining your summary
account balances.
When you delete a summary template, Oracle General Ledger deletes all summary
accounts created from that template and their associated balances.

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Chapter 4 - Page 14

Template Values

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Chapter 4 - Page 15

Defining Summary Accounts

Defining Summary Accounts


Plan Your Summary Account Templates
Set up templates to define and maintain summary accounts. You can enhance the speed
of your summarizations by controlling the number of summary accounts created by your
template. The number of summary accounts your template creates depends on the
template segment values.
- Use the formula above to determine the number of summary accounts any given
template will create.

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Chapter 4 - Page 16

Summary Account Creation Example

Summary Account Creation Example


How to Define a New Summary Account Template
1. Open the Summary Accounts window.
2. Enter a Name for the summary account template.
3. Enter the Template.
4. Enter the Earliest Period for which you want General Ledger to maintain your actual,
encumbrance and budget summary account balances. General Ledger maintains summary
account balances for this accounting period and for subsequent periods.
5. If you are using budgetary control for your set of books, set the budgetary control options
for the summary template.
6. Save your work. General Ledger submits a concurrent request to add the summary
accounts, and displays the Status of your summary template.
- Current: The summary accounts are active.
- Adding: The concurrent request to create summary accounts is pending or running.
- Deleting: The concurrent request to delete summary accounts is pending or running.

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Chapter 4 - Page 17

Practice - Define Summary Account


Overview
In this practice you will define a Summary Account to view total expenses by company.

Assumptions

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Use the General Ledger, Vision Operations (USA) responsibility.


Replace XX in the Practice with a unique identifier such as your initials or a number.
This is necessary in order to create unique records within the database while
performing the Practice. You will need to make sure the segment value you will use is
set up for the Value Set for that segment (e.g. if you will use value 2166 in place of
21XX, this value must be set up for that segment in your chart of accounts.

Tasks
1.

Define Rollup Groups (placeholder for parent account used in template definition).

Find Values By

Value Set

Name

XX_Account

Code/Name

TOTXEP

Description

Total Expense

2.

Define Parent Accounts (tell the summary accounts what ranges of child values to sum).

Find Values By

Value Set

Name

XX_Account

Value

7000

Description

Total Expense

Parent

Checked

Group

TOTEXP

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Chapter 4 - Page 18

3.

Define Summary Account template (what level of detail to breakoutlike total expenses by
company, total expenses by company and department and how far back to maintain
summary balances).

Name

Tot Exp by Comp

Company

Cost Center

Account

TOTEXP

Reserved

Earliest Period

Dec-00

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Chapter 4 - Page 19

Solution Define Summary Account


Define a Rollup Group
1. Open the Rollup Group definition window.
2. (N) Setup > Financials > Flexfields > Key > Groups
3. Find Values By = Value Set
4. Name = XX_Account
5. (B) Find

6.
7.
8.

Code/Name = TOTEXP
Description = Total Expense
Save your work.

9. Close windows until you are back at the Navigator.


Define a Parent Account that includes all expenses.
10. Open the Values window.
11. (N) Setup > Financials > Flexfields > Key > Values
12. Find Values By = Value Set
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Chapter 4 - Page 20

13.
14.
15.
16.
17.
18.

Name = XXAccount
(B) Find
Place cursor in the Value field.
(M) File > New
Value = 7000
Description = Total Expense

19.
20.
21.
22.
23.

(T) Values, Hierarchy, Qualifiers


Parent = Checked
Group = TOTEXP
Tab through the Segment Qualifiers field
Save your work.

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Chapter 4 - Page 21

24. Close forms until you are back at the Navigator.


Create a Summary Account template
25. Open the Summary Account definition window.
26. (N) Setup > Accounts > Summary
27. Name = Tot Exp by Comp
28. Tab into Template field
29. Company = D
30. Cost Center = T
31. Account = TOTEXP
32. Reserved = T
33. Earliest Period = Dec-00
34. Save your work.

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Chapter 4 - Page 22

Maintain Summary Accounts Overview

Maintain Summary Accounts Overview


Maintenance on Summary Accounts is required when performing the following changes to
your parent values:
Addition of child ranges assigned to a parent value
Removal of child ranges assigned to a parent value
Assigning a new parent segment value to a rollup group
Removing a rollup group assignment from a parent segment value
Changing rollup group assignment for a parent segment value

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Chapter 4 - Page 23

Maintaining Summary Templates

Maintaining Summary Templates


If you make changes to your flexfield hierarchies that affect summary accounts, run the
Incremental Add/Delete Summary Templates program to update your summary account
balances. This program lets you make changes to account hierarchies without having to
drop and recreate the summary template.
Changes to the account hierarchies and rollup group assignments are ignored until the
Incremental Add/Delete Summary Templates Program is run.
Choose the Incremental Add/Delete Summary Templates from the Submit Request
window.
Note: You also need to run the program, Maintain Summary Templates to update summary
accounts for nonflexfield hierarchy related changes.
Incremental Add/Delete Summary Template Program Performance
The amount of time it takes the Incremental Add/Delete Summary Template Program to
complete depends on several factors, such as:
- Degree of complexity of the summary account template.
- Number of parents assigned to each affected rollup group.
- Number of detail child values that are assigned to the affected parent values.
- Number of periods for which summary account balances have to be maintained.
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Chapter 4 - Page 24

- Maintenance of average daily balances for summary accounts.


- Extent of changes made to the account hierarchies.
Maintain Summary Templates Program
Use this program to ensure that summary account balances reflect new detail accounts
that may have been added to that summary account. The posting process automatically
maintains summary accounts but running this program is beneficial if many new detail
account combinations have been created since the last posting. Run this program when
you make changes to detail accounts to improve the performance of the posting program.

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Chapter 4 - Page 25

Guided Demonstration - Maintain Summary Templates Program


Responsibility: General Ledger, Vision Operations (USA)
(N) Other > Requests > (B) Submit a New Request
1. Open the Submit Request window.
2. Select Single Request.
3. (B) OK
4. In the Name field, enter or select the Program - Maintain Summary Templates program.
5. In the Run the Job field, select As Soon as Possible.
6. Place a check mark next to Save all Output files.
7. (B) Submit
8. Note your Request ID in the Decision window that appears.
9. Select No.
Note: This program has no user parameters.

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Chapter 4 - Page 26

Setting Budgetary Control

Setting Budgetary Control


Setting the Summary Account Budgetary Control Options
If budgetary control is enabled for your set of books, enter budgetary control options for
your summary account template.
Choose the Incremental Add/Delete Summary Templates from the Submit Request
window.
Note: You also need to run the program, Maintain Summary Templates to update summary
accounts for nonflexfield hierarchy related changes.
To set the budgetary control options for a summary account template:
1. Open the Summary Accounts window.
2. Enter the summary account template Name.
3. Enter the summary account Template.
4. Enter the Earliest Period for which you want General Ledger to maintain your actual,
encumbrance and budget summary account balances. General Ledger maintains summary
account balances for this accounting period and for subsequent periods.
5. Enter the Funds Check Level. If you choose the Advisory or Absolute funds check level,
you must enter values in the remaining budgetary control fields. You cannot enter values
in these fields if you choose the None funds check level.
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6. Assign a Debit or Credit balance type to your summary template. General Ledger uses
the balance type to determine if funds are available, based on the funds available
equation:
Funds Available = Budget Actual Encumbrance

For summary accounts with a Debit balance, General Ledger considers funds
available to be sufficient if the funds available equation yields a positive result.
- For summary accounts with a Credit balance, General Ledger considers funds
available to be sufficient if the funds available equation yields a negative result.
Note: Assigning a balance type of debit or credit to a summary account does not restrict the
balance type of the detail accounts that roll up into a summary account.
7. Enter the Amount Type, or cumulative balance used in the funds checking interval.
8. Enter the Boundary, or the endpoint of the funds checking interval. Combined with the
amount type you specify, boundary determines the time interval over which to perform
summary level budgetary control.
9. Enter the Funding Budget against which you want General Ledger to check or reserve
funds. You can only choose a funding budget that requires journal entries. General
Ledger requires you to create budget journal entries for your funding budget to enforce
budgetary control.
Note: If you want to change the funds check level from None to Advisory or Absolute, you
must delete the summary template and then recreate it with the appropriate funds check level.
General Ledger does not perform summary level budgetary control retroactively for the
summary accounts it creates.
To set the budgetary control options for a summary account template:
1. Open the Summary Accounts window.
2. Enter the summary account template Name.
3. Enter the summary account Template.
4. Enter the Earliest Period for which you want General Ledger to maintain your actual,
encumbrance and budget summary account balances. General Ledger maintains summary
account balances for this accounting period and for subsequent periods.
5. Enter the Funds Check Level. If you choose the Advisory or Absolute funds check level,
you must enter values in the remaining budgetary control fields. You cannot enter values
in these fields if you choose the None funds check level.
6. Assign a Debit or Credit balance type to your summary template. General Ledger uses
the balance type to determine if funds are available, based on the funds available
equation:
Funds Available = Budget Actual Encumbrance

For summary accounts with a Debit balance, General Ledger considers funds
available to be sufficient if the funds available equation yields a positive result.
- For summary accounts with a Credit balance, General Ledger considers funds
available to be sufficient if the funds available equation yields a negative result.
Note: Assigning a balance type of debit or credit to a summary account does not restrict the
balance type of the detail accounts that roll up into a summary account.
7. Enter the Amount Type, or cumulative balance used in the funds checking interval.
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Summary Accounts
Chapter 4 - Page 28

8. Enter the Boundary, or the endpoint of the funds checking interval. Combined with the
amount type you specify, boundary determines the time interval over which to perform
summary level budgetary control.
9. Enter the Funding Budget against which you want General Ledger to check or reserve
funds. You can only choose a funding budget that requires journal entries. General
Ledger requires you to create budget journal entries for your funding budget to enforce
budgetary control.
Note: If you want to change the funds check level from None to Advisory or Absolute, you
must delete the summary template and then recreate it with the appropriate funds check level.
General Ledger does not perform summary level budgetary control retroactively for the
summary accounts it creates.

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Summary Accounts
Chapter 4 - Page 29

Incremental Add/Delete Summary Templates Program

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Summary Accounts
Chapter 4 - Page 30

Incremental Add/Delete Summary Templates Program

Incremental Add/Delete Summary Templates Program


Factors that affect performance of Incremental Summarization:
Degree of complexity of the summary account template
Number of parents assigned to each affected rollup group
Number of detail child values that are assigned to the affected parent values
Number of periods for which summary account balances have to be maintained
Maintenance of average daily balances for summary accounts
Extent of changes made to the account hierarchies

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Summary Accounts
Chapter 4 - Page 31

Planning Summary Accounts

Planning Summary Accounts


How to Plan Your Summary Accounts
1. Determine your summary account needs.
2. Plan the summary account structure to meet your needs.
3. Plan the parent segment values and rollup groups you need for your summary accounts.
4. Plan your summary account templates to generate multiple summary accounts.

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Summary Accounts
Chapter 4 - Page 32

Determine Summary Account Needs

Determine Your Summary Account Needs


Consider the summary information you need for reports. Although you can easily define
financial statements that sum a number of accounts together for a given row, you can use
summary accounts for faster access to summarized balances.
For example, many of the reports for upper management in your company may include
summary level amounts. You may have summary income or revenue statements and
balance sheets, a summary overhead expense analysis and many other summary level
reports in your management reporting package.
Identify the summary balances you need for online inquiries.
For example, you may need "flash" inquiries on the total of all cash balances for your
domestic organizations to make daily decisions about investments or foreign currency
hedging. You may also want to review the amount of working capital (current assets less
current liabilities) for each division or department on a weekly basis.
Consider how you want to use summary accounts in formulas and allocations. You can use
summary accounts as factors when defining journal formulas and allocations.
Use summary accounts to reference summary balances in a recurring journal formula. For
example, to estimate a sales commission accrual based on the total of all product sales for
each division, you can use a summary account that totals all product sales in each
division.
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Chapter 4 - Page 33

Use summary accounts to reference summary budget balances in a budget formula. For
example, to base the budget for employee benefits in each company on the total of all
budgeted employee salaries, use summary accounts that total all employee salaries in
each company.
Use summary accounts when entering budgets with budget rules. For example, you can
base your budget for the current year's Salary account on a percentage of the prior year's
total Overhead expense, a summary account.
Use summary accounts to indicate the total amount you want to allocate when defining
your allocation formulas. Also, use summary accounts to help you calculate the allocation
ratios to use in your allocation formulas.

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Summary Accounts
Chapter 4 - Page 34

Plan Summary Account Structure

Plan Summary Account Structure


After determining your summary account needs, plan your summary account structure
according to how you want to summarize your accounting information.
To determine your summary account structure you will need to choose ways to summarize
your accounting information depending on the structure of your account and your
informational needs. Generally, organizations structure their accounts such that each segment
represents a particular dimension, or a way of looking at their organization.
Common dimensions and examples of ways you can summarize information within each
dimension:
- Company
- Cost Center
- Account
- Product
- District

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Summary Accounts
Chapter 4 - Page 35

Plan Summary Account Structure

Plan Summary Account Structure


For any organizational dimension you want to summarize, determine how many summarization
levels you want within that dimension.
For example, you can summarize your natural accounts into Assets and Liabilities, or you
can summarize at a more detailed level, such as Current Assets, NonCurrent Assets, and
so on. You can also summarize products into product groups and into larger groups called
product categories. Likewise, you can summarize districts into states and then into
regions.
You can also summarize at different levels within an organizational dimension. For
example, you may decide to group your East Coast offices together, your West Coast
offices into another group, and your Midwest offices into a third group. Each of these
summary groups can then be included in separate rollup groups namely Eastern States,
Western States and Midwestern States. Then, you may decide to combine these three
groups into a higher level group, United States offices, and define a rollup group named
Total Country Offices. If you have a single Canadian Office, you may decide to designate
it as a group in itself and assign it to the rollup group Total Country Offices as well. In
this example, your United States offices group is at the same summary level as your
Canadian office group, but you have one summary level below the United States level,
while you have no summary levels below your Canadian office.
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Chapter 4 - Page 36

To clarify your plans, sketch your summarization levels on paper.


The illustration above represents the summarization of districts into states and regions:
- Indicate the segment value and description of each of the parents in your sketch.
Also write the rollup group name or number and a description of the summary level
next to each of your summarization levels. You do not need to include every parent
value in a rollup group. You may define some parent values for
- reporting or formula definition purposes only.
- For example, you may decide to group all of your cost centers under the parent
value "All Cost Centers." However, if you do not plan to report on your cost centers
at a summary level, there is no need to assign these parent values to a rollup group.
- You can define multiple summary levels by assigning children that are parents
themselves (grand-parenting). For example, you can assign cost centers or
departments 110, 120 and 130 as the children for cost center or department 100
Western Region. General Ledger automatically maintains rollup relationships from
the summary level to the lowest detail level so that when you transfer a child value
from one parent to another, all the values assigned to the child are transferred as
well. However, you can only drill down balances from the summary level to the
lowest detail level, not to intermediate levels.

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Summary Accounts
Chapter 4 - Page 37

Plan Summary Account Structure

Plan the Summary Account Structure


After considering how you want to summarize within each of your organizational
dimensions, think about how you want to combine your summary views across different
organizational dimensions. For example, if you summarize departments into divisions
and districts into regions, you may wish to reference and report on divisions by region.
You can also combine a particular summary level for one organizational dimension with
a different summary level for another organizational dimension. For example, you may
wish to reference and report on departments by region. To decide upon the combinations
of summary views across your organizational dimensions, you can lay your
summarization level sketches side by side so that you can consider your summarization
levels conceptually. The chart above shows how you might roll up your account segments
into several levels.
Consider whether you want to create these summary relationships with summary accounts, or
with reporting hierarchies. You can achieve the benefits of summary reporting with reporting
hierarchies instead of summary accounts. A significant benefit of using reporting hierarchies
instead of summary accounts is easier reorganizations.

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Chapter 4 - Page 38

Use reporting hierarchies instead of summary accounts when:


You want to easily reorganize your summary views in the future.
Your primary use for summarization is reporting. You cannot reference reporting
hierarchies in formulas, allocations or online.
Use summary accounts instead of reporting hierarchies when:
Your summary relationships are more permanent.
You want to use summary accounts in formulas and allocations, as well as reporting.
You want online inquiry of these summary amounts.
You want faster financial reporting of these summary amounts.
To define parents for each of your account segments, organize your account structure so you
can use ranges to easily define the children for your parent values.
For example, if you know that all of your administration cost centers are between 100 and 199,
you can define the Administration parent as the range of cost center values between 100 and
199.

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Summary Accounts
Chapter 4 - Page 39

Plan Summary Account Structure

Plan Summary Account Structure


Consider whether you want to create summary relationships with summary accounts or
reporting hierarchies.

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Chapter 4 - Page 40

Plan Values and Groups

Plan Values and Groups


Plan your parent segment values. When determining the values of parents for each account
segment, consider the structure of values within that segment. If your segment values are
logically organized and the child values for your parent are all in a contiguous range, a logical
value for the parent is the first or last value in the range. For example, if all of your Assets are
between 1000 and 1999, an appropriate value for your Total Assets parent is 1999. If you want
to use parent values like this, reserve the first or last value in your ranges for a summary value.
If your segment values do not follow a particular structure, and your segment allows alphabetic
characters, you can use alphabetic characters for parent values. The alphabetic characters not
only distinguish your parent values from your detail values, but they can also provide some
description for the parent value. For example, you could group your United States companies,
companies 07, 12 and 18 into a parent with a value of "US."
Define the parent segment values, and enter meaningful segment value descriptions. For
example, for rollup groups that summarize districts into states and regions you might use
descriptions for your parent values such as "Washington State," and "Western Region."
Choose a naming or numbering method for rollup groups that is similar for all segments to
establish a more memorable and logical rollup group structure. This consistent rollup group
structure helps you know the approximate level of detail the parents in rollup groups provide.
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Summary Accounts
Chapter 4 - Page 41

For example, where districts are your detail segment, states would be rollup group name States,
regions would be rollup group name Regions, and so on.

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Chapter 4 - Page 42

Plan Summary Account Templates

Plan Your Summary Account Templates


Set up templates to define and maintain summary accounts. You can enhance the speed of your
summarizations by controlling the number of summary accounts created by your template. The
number of summary accounts your template creates depends on the template segment values.
Use the formula above to determine the number of summary accounts any given template
will create.

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Chapter 4 - Page 43

Summary

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Summary Accounts
Chapter 4 - Page 44

Advanced Journal Entries


Chapter 5

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Advanced Journal Entries


Chapter 5 - Page 1

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Advanced Journal Entries


Chapter 5 - Page 2

Advanced Journal Entries

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Advanced Journal Entries


Chapter 5 - Page 3

Objectives

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Chapter 5 - Page 4

About Recurring Journals

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Advanced Journal Entries


Chapter 5 - Page 5

Recurring Journal Types

Recurring Journal Types


Skeleton Journals
Skeleton journals have varying amounts in each accounting period. You define a
recurring journal entry without amounts, then enter the appropriate amounts each
accounting period.
There are no formulas to enter, only account combinations. For example, you can record
temporary labor expense in the same account combination every month with varying
amounts due to fluctuations in hours.
Standard Journals
Standard journals use fixed account combinations and amounts each accounting period.
You enter a journal using constants. For example, record monthly auto lease expenses
with constant amounts charged to the same account.
Formula Journals
A formula entry is a recurring entry that uses formulas instead of amounts to calculate
amounts.
For example, calculate rent expense based on end-of-month headcounts.

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Advanced Journal Entries


Chapter 5 - Page 6

Creating Recurring Journals

Creating Recurring Journals


(N) Journals>Define>Recurring
There is a basic four-step process to create recurring journals.
1. Create recurring journal definition.
- Define reusable skeleton templates, standard templates, and formulas.
2. Generate journals.
- Use skeleton templates, standard templates, and formulas to create unposted journal
entries.
- Reuse the templates to generate journal entries in multiple accounting periods.
3. Review the journal for accuracy.
4. Post the journal entry.
Note: You can copy entries from an existing recurring journal batch by selecting AutoCopy
Batch.
Consider grouping your recurring entries into one batch (by frequency of generation) to
speed processing.
Journal Entry Region. Optionally, you can enter a range of Active Dates to limit the use
of the recurring entry to a specific time interval.
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Chapter 5 - Page 7

Recurring Journal Entry Lines

Journal Entry Line


(N) Journals>Define>Recurring (B) Lines
How to Enter a Recurring Journal Line
1. Enter a Line number in the Line field.
2. Enter the Account you want Oracle General Ledger to update when you generate and post
your recurring journals.
3. Enter an optional Line Description for the recurring entry line.
4. Enter a Formula for the line if this is a formula recurring entry. Otherwise, enter a
standard amount for standard entries.
Note: Formulas are not entered for skeleton journal entries.
5. If you are not entering a formula, enter all remaining lines for your recurring journal
entry.
6. Save your work.

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Advanced Journal Entries


Chapter 5 - Page 8

Automatic Offset Example

Automatic Offset Example


How to Enter an Automatic Offsetting Line
1. After you enter one or more lines for the recurring journal entry, enter 9999 as the line
number for the automatic offsetting line.
2. Enter an account combination for the line, but do not enter a formula. Oracle General
Ledger will automatically calculate the amount for this journal entry line when you
generate your recurring journal. The difference between the total debits and total credits
for the recurring journal entry will be calculated for you.
3. Save your work.

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Advanced Journal Entries


Chapter 5 - Page 9

Formula Recurring Journals

Formula Recurring Journals


When creating Formula Recurring Journals, create a formula for each journal line. Each
formula can contain an unlimited number of steps. The steps can use any combination of
amounts, account balances, and/or operators. The operators that can be used are:
Enter: To enter the amount or balance from the account listed in the appropriate account.
Add: To add the amount or account balance in the previous line to this line.
Subtract: To subtract the amount or account balance in the previous line from this line.
Multiply: To multiply the last amount or account balance by the number entered on this
line.
Divide: To divide the last amount or account balance by the number entered on this line.
Note: If the formula yields a positive amount, your account will be debited. If your formula
yields a negative amount, your account will be credited.

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Advanced Journal Entries


Chapter 5 - Page 10

Generating Recurring Journals

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Chapter 5 - Page 11

Guided Demonstration - Creating Recurring Journals


Responsibility = General Ledger, Vision Operations (USA)
1. Open the Journals window.
(N) Journals > Enter (B) New Journal
2. In the Journal Name field, enter XX_Demo.
Use the current open period that defaults into the GL Period field. Accept the defaults for
all the remaining journal header fields.
3. In the journal lines window, enter the following:
Account

Debit

01-000-1210-2103000

Credit

10,000

01-000-2210-2103000

10,000

4.
5.
6.

Select the More Actions button and then OK to save your journal entry.
Select on the Post button.
Open the Define Recurring Journal Formula window.
(N) Journals > Define > Recurring
7. In the Batch field of the Recurring Batch region, enter XX_Demo Journals.
8. In the Journal field of the Journal Entry region, enter Salary Expense.
9. Select Payroll in the Category field and USD in the Currency field.
10. Select Lines to open the Journal Entry Line window.
11. Enter lines 10 through 40 as shown:
Line

Account

Line Description

10

01-120-5800-2103-000

Salary Expense

20

01-130-5800-2103-000

Salary Expense

30

01-140-5800-2103-000

Salary Expense

40

01-000-2410-2103-000

Accrued Payroll

12. Save your work and close the Journal Entry Line window.
13. Open the Find Journals window.
(N) Journals > Enter
14. Query on your journal batch Name = XX_Demo Journals <Date> <Time> (Tip: use the
wildcard, %XX_Stand%), and select Find.
15. Select the Salary Expense Journal and select Review Journal.
16. Enter the amounts for salary expense as follows:
Journal 1: Salary Expense

Debit

Salary Expense (120) 01-120-5800-21XX-000

23,000.00

Salary Expense (130) 01-130-5800-21XX-000

15,500.00

Salary Expense (140) 01-140-5800-21XX-000

4,700.00

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Chapter 5 - Page 12

Credit

Accrued Payroll 01-000-2410-21XX-000

43,200.00

17. Save your work.


18. Open the Generate Recurring Journals window.
(N) Journals > Generate > Recurring
19. Select your batch and enter the latest open period in the Period field.
20. Select Generate and note your concurrent request ID. Wait for your request to finish.
21. Open the Find Journals window.
(N) Journals > Enter
22. Query on your journal batch Name = XX_Demo Journals <Date> <Time> (Tip: use the
wildcard, %XX_Demo%), and select Find.
23. Select your batch.
24. (B) More Actions
25. (B) Post

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Chapter 5 - Page 13

Practice - Creating Recurring Journals


Overview
In this practice you will do the following:

Define a recurring journal batch

Enter three types of recurring journals:


Skeleton
Standard

Formula
Generate your recurring journal

Adjust and Post the recurring journal batch

Assumptions

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Use the General Ledger, Vision Operations (USA) responsibility.


Replace XX in the Practice with a unique identifier such as your initials or a number.
This is necessary in order to create unique records within the database while
performing the Practice. You will need to make sure the segment value you will use is
set up for the Value Set for that segment (e.g. if you will use value 2166 in place of
21XX, this value must be setup for that segment in your chart of accounts.

Tasks
1.

Enter and Post a Journal Entry


Enter and post the following journal entry to provide a balance in the account you will
use in a later Task to define a formula recurring journal.
Name your journal entry XX_AR and enter it in the latest open GL Period.
Account

Debit

01-000-1210-21XX-000

100,000

01-000-2210-21XX-000
2.

3.

Credit

100,000

Create a Recurring Journal Batch


Create a recurring journal batch called XX_Standing Journals. Enter the following three
types of journals for this batch.
Enter a Skeleton Journal
Name your first skeleton journal entry Salary Expense. The Category is Payroll and the
Currency is USD. Enter the following journal lines:
Line

Account

Description

10

01-120-5800-21XX-000

Salaries Expense

20

01-130-5800-21XX-000

Salaries Expense

30

01-140-5800-21XX-000

Salaries Expense

40

01-000-2410-21XX-000

Accrued Payroll

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Chapter 5 - Page 14

4.

Note: Depending on your database, your segment separator may be a dash "-", a
period ".", or other character.
Enter a Standard Journal
Name your second journal Depreciation Adjustments. The category is Depreciation
Adjustment and the Currency is USD. Enter the following journal lines:
Line

5.

Account

7.

01-120-7320-21XX-000

Building

2,000

20

01-120-7330-21XX-000

Machinery

3,000

30

01-120-7350-21XX-000

Vehicles

4,000

40

01-120-7360-21XX-000

Computers

5,000

50

01-000-1690-21XX-000

Depreciation Reserve
Adjustment

-14,000

Enter a Formula Journal


Name your last journal entry Bad Debt Expense. Select the Adjustment category and
USD as the currency.
The Allowance for Bad Debt account (01-000-1260-21XX-000) will be calculated based
on 5% of the balance in the Accounts Receivable account (01-000-1210-21XX-000).
Use the AutoOffset feature to post the difference to the Bad Debt Expense account (01120-7730-21XX-000).
Hint: For line 10, use the PTD amount type, Monetary currency, and Current Period.
Account

Comments for the Student

10

01-000-1260-21XX-000

Enter a formula to achieve the result noted above.

01-120-7730-21XX-000

How do you achieve the AutoOffset mentioned


above

Generate
Generate the recurring journal batch for the latest open period.
Adjust Journals
Open the Enter Journal window and adjust the first journal as follows:
Journal 1: Salary Expense

Debit

Salary Expense (120) 01-120-5800-21XX-000

230,000.00

Salary Expense (130) 01-130-5800-21XX-000

155,000.00

Salary Expense (140) 01-140-5800-21XX-000

47,000.00

Accrued Payroll 01-000-2410-21XX-000


8.

Amount

10

Line

6.

Description

Credit

432,000.00

Post Your Journal Batch


Query the journal batch and review it online (Oracle General Ledger names the created
batch <Recurring Batch Name>: <Date> <Time>.)
Post your journal batch.

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Advanced Journal Entries


Chapter 5 - Page 15

Solution - Creating Recurring Journals


1.

Navigate to the Enter Journals window.


(N) Journals > Enter
In the Journal Name field, enter XX_AR.
Use the current open period that defaults into the GL Period field. Accept the defaults for
all the remaining journal header fields.
In the journal lines window, enter the following:
Account
01-000-1210-21XX000
01-000-2210-21XX000

2.

Debit

Credit

100,000
100,000

Click on the More Actions button and then click OK to save your journal entry.
Click on the Post button.
Open the Define Recurring Journal Formula window.
(N) Journals>Define>Recurring
In the Batch field of the Recurring Batch region, enter XX_Standing Journals.

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Advanced Journal Entries


Chapter 5 - Page 16

3.

In the Journal field of the Journal Entry region, enter Salary Expense.
Select Payroll in the Category field and USD in the Currency field.

Select Lines to open the Journal Entry Line window.


Enter lines 10 through 40 as shown:
Line

Account

Line Description

10

01-120-5800-21XX-000

Salaries Expense

20

01-130-5800-21XX-000

Salaries Expense

30

01-140-5800-21XX-000

Salaries Expense

40

01-000-2410-21XX-000

Accrued Payroll

Note: after completing Line 10, place your cursor in the Line number field and use the
down arrow on the keyboard to enter the next line.

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Chapter 5 - Page 17

4.

Save your work and close the Journal Entry Line window.
Place your cursor in the Journal field of the Journal Entry region and press the down
arrow to add the next Journal in Task 4.
Name your second journal entry Depreciation Adjustments. Select the Depreciation
Adjustment category and USD as the currency.
Select the Lines button.
Enter the journal lines as follows:
Line

Account

Line Description

Amount

10

01-120-7320-21XX-000

Building

2,000

20

01-120-7330-21XX-000

Machinery

3,000

30

01-120-7350-21XX-000

Vehicles

4,000

40

01-120-7360-21XX-000

Computers

5,000

50

01-000-1690-21XX-000

Depreciation Reserve
Adjustment

-14,000

Note: Positive amounts will be debits and negative amounts will be credits

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Chapter 5 - Page 18

5.

Save your work and close the Journal Entry Line window and go back to the Define
Recurring Journal Formula window.
Place your cursor in the Journal field of the Journal Entry region , and press the down
arrow to add the next Journal in Task 5.
Name your last journal entry Bad Debt Expense. Select the Adjustment category and USD
as the currency.
Select Lines and enter 10 in the line field and 01-000-1260-21XX-000 in the Account
field.
In the formula region, enter 1 in the Step field, select Enter in the Operator field, and
enter 01-000-1210-21XX-000 in the Account field.
For the next formula step, enter 2 in the Step field, select times (X) in the Operator field,
and enter -.05 in the Amount field.

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Chapter 5 - Page 19

Place your cursor in the Line field, and use the down arrow key to enter the offsetting
line 9999 and account 01-120-7730-21XX-000.

6.

7.

Save your work.


Open the Generate Recurring Journals window.
(N) Journals>Generate>Recurring
Select your batch and enter the latest open period in the Period field.

Select Generate and note your concurrent request ID. Wait for your request to finish.
Open the Find Journals window.
(N) Journals>Enter
Query on your journal batch Name = XX_Standing Journals <Date> <Time> (Tip: use
the wildcard, %XX_Stand%), and select Find.

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Chapter 5 - Page 20

Select the Salary Expense Journal and select Review Journal.


Enter the amounts for salary expense as follows:
Journal 1: Salary Expense

Debit

Salary Expense (120) 01-120-5800-21XX-000

230,000.00

Salary Expense (130) 01-130-5800-21XX-000

155,000.00

Salary Expense (140) 01-140-5800-21XX-000

47,000.00

Accrued Payroll 01-000-2410-21XX-000

Credit

432,000.00

Save your work and close the Journals window to go back to the Enter Journals window.
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Chapter 5 - Page 21

8.

Open the Post Journals form


(N) Journals > Post
When the Find Journal Batches window opens, query your batch. (Tip: use the wildcard,
%XX_Stand%)
Select your batch and select Post.

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Chapter 5 - Page 22

MassAllocations Overview

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Chapter 5 - Page 23

MassAllocations versus Recurring Journals

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Chapter 5 - Page 24

Steps to Create MassAllocation Journals

Steps to Create MassAllocation Journals


Five-Step Process
1. Create MassAllocation Definition
- Enter batch information
- Create MassAllocation formulas
- Enter MassAllocation formulas
2. Validate Definition
3. Generate MassAllocation Journals
- Choose which batch to generate
4. Review Entries
- Review the journal for accuracy
5. Post the Journal Entry

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Chapter 5 - Page 25

Defining MassAllocation Journals

Defining MassAllocation Journals


(N) Journals > Define > Allocation
To create MassAllocation Journal, use the following basic steps:
1. Open the Define MassAllocations window.
2. Enter a Name and Description (optional) for the MassAllocation batch.
3. Choose Actual or Encumbrance from the Balance Type poplist.
4. Select Formulas to enter MassAllocation formulas, then save your work.
5. Select Validate All to validate this batch and other unvalidated batches.
Note: Formulas cannot be generated until they have been validated successfully. Oracle
General Ledger verifies that allocation formulas conform to MassAllocation definition rules. If
Oracle General Ledger finds an invalid allocation, it marks the entire batch with an error status.
Validation does not guarantee that an journal entry will be created from the journal definition.
There must be balances in the accounts used in the MassAllocation journal.
6. Check the MassAllocation batch validation status:
- Validated: The definition is valid and follows the definition rules.
- Not Validated: The definition had not bee validated yet. Select the Validate ALL
button.
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Advanced Journal Entries


Chapter 5 - Page 26

- In Process: Oracle General Ledger is still validating the formula.


- Error: The formula is not correct. Make corrections and select for validation again.
7. Generate unposted journal batches from your MassAllocation formulas.
Note: You can identify errors using the MassAllocations/MassBudgeting Validation Report.

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Chapter 5 - Page 27

Defining MassAllocation Formulas

Defining MassAllocation Formulas


(N) Journals > Define > Allocation (B) Formulas
How to Enter a MassAllocation Formula
1. Open the Define MassAllocations window and enter or query the name of the
MassAllocation batch to which you want to add the formula.
2. Select Formulas.
3. Enter the Name, Category, and Description (optional) of the MassAllocation formula.
Categories help you group journal entries in a convenient manner for reporting and
analysis.
4. Select whether to Allocate Balances from the full balance or from a single entered
currency. If you are allocating encumbrance balances, you must allocate the full balance.
You cannot allocate foreign currency encumbrances.
5. Select Full Cost Pool Allocation to have rounding differences added to the cost pool with
the largest relative balance. If you do not choose this option, any rounding differences
will remain in the original account.
6. Enter the formula lines using the formula A*B/C.
- A is the Cost Pool that will be allocated. The can be amount or an account balance.
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B is the numerator of the factor (a number or statistical account) that multiples the
cost pool for the allocation.
- C is the denominator of the factor (a number or statistical account) that multiples
the cost pool for the allocation.
Note: Parent values can be used in one or more segments. To improve performance keep the
number of parents to a minimum.

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Chapter 5 - Page 29

Account Segment Types

Account Segment Types


Looping (L)
Assign this type to a parent segment value to include each child value assigned to the
parent value in the formula.
The allocation program runs the formula once for each corresponding child segment
value.
You can loop only on parent values.
Summing (S)
Assign this type to a parent segment value to sum the account balances of all the child
segment values assigned to a parent.
You can sum only on parent values.
Constant (C)
Assign this type to a child segment value to use the detail account balance associated
with the child value.

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Chapter 5 - Page 30

Target and Offset Accounts

Target and Offset Accounts


These are the lines that are the actual journal entry.
Target (T)
Enter an account in the Target line to specify the destination for your allocations.
The parent value used in the target must be the same parent value used in the B and C
lines of the formula.
Offset (O)
Enter an account in the Offset line to specify the account to use for the offsetting debit or
credit from your allocation.
The Offset account is usually the same account as formula line A to reduce the cost pool
by the allocated amount.

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Chapter 5 - Page 31

MassAllocation Journal Example

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MassAllocation Journals Example

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Rent Expense Example

Rent Expense Example


You can automatically allocate rent expense.
Row
Co
Dept N. Acct
A
01
000
5740
Allocate cost pool to all departments
C
C
C
B
01
999
SQFT
Loop through square footage of each department
C
L
C
C
01
999 SQFT
Total the square footage
C
S
C
T
01
999
5740
Assign each department the result of A*B/C
C
L
C
O
01
000
5740
Use cost pool as offset account.
C
C
C
Note: In the last example, O must be different from A to add incremental allocations.

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Chapter 5 - Page 34

Validating MassAllocation Journals

Validating MassAllocation Journals


There are four validation statuses:
Validated: The definition is valid and follows the definition rules.
Not Validated: The definition had not bee validated yet. Select the Validate ALL button.
In Process: Oracle General Ledger is still validating the formula.
Error: The formula is not correct. Make corrections and select for validation again.

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Generating Mass Allocation Journals

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Chapter 5 - Page 36

Practice - Creating Mass Allocation Journals


Overview
In this practice, you will use MassAllocations to allocate health and welfare benefits based on
the headcount for departments 410, 420, and 430 for the latest open period.

Assumptions
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Use the General Ledger, Vision Operations (USA)
Replace XX in the Practice with a unique identifier such as your initials or a number. This
is necessary in order to create unique records within the database while performing the
Practice. You will need to make sure the segment value you will use is set up for the
Value Set for that segment (e.g. if you will use value 2166 in place of 21XX, this value
must be setup for that segment in your chart of accounts.
There is a Parent Value 400 for the department segment setup that includes
Departments 410, 420 and 430 as child values.

Tasks
1.

Enter Headcount Information Using a Statistical Journal Entry.


Enter and post the following journal entry to provide a balance in the Headcount account
for Departments 410, 420 and 430 that you will use later. Name your journal entry
XX_Employee Headcount and enter it in the latest open GL Period. Replace the value
XX with your unique letters or numbers as directed in the Practice Assumptions. Use the
Journal Category of Headcount.
Note: Remember to use the currency STAT for your journal entry.
Line

2.

3.

Account

Debit

10

01-410-9110-21XX-000

100

20

01-420-9110-21XX-000

150

30

01-430-9110-21XX-000

100

Note: Depending on your database, your segment separator may be a dash "-", a period
".", or other character.
Enter a New Journal Entry to Record the Cost Pool
Enter a new journal entry XX_Benefits. Debit the Health and Welfare account 01-4046140-21XX-000 for $250,000 and credit account 01-000-2410-21XX-000 for the same
amount. Post this journal batch and wait for the posting process to complete.
Define a MassAllocation Batch
Define a MassAllocation batch called XX_Insurance Benefits using the Actual Balance
type. Enter a journal called XX_Insurance Formula and choose Allocation for the
category and Allocate Balances from Full Balance.
In Row A (A = the amounts to be distributed), enter the Health and Welfare account (01404-6140-21XX-000). Enter Constant for the segment type for all segments. Select USD
for the currency, PTD for the amount type, and Current Period for the relative period.
For Row B (B = individual amounts), use your headcount statistics as the allocation
base. Specify account 01-400-9110-21XX-000. For the department segment only,
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4.

5.
6.

specify Looping. Keep all other segments Constant. Select STAT currency, YTD amount
type, and the Current Period.
For Row C (C = the total of the individual amounts), use the same headcount statistics
account (01-400-9110-21XX-000) and specify Summing to sum the individual
Department segments from Row B. Keep all other segments Constant. Choose the
Current Period, STAT currency, and YTD amount type.
For Row T (T = the Target account), specify 01-400-6140-21XX-000. Enter Looping for
the Department segment and Constant for the other segments. Choose USD currency
and the PTD amount type.
Specify the Health and Welfare account (the cost pool) from row A as the Offset. Enter
Constant for all segments. Choose USD currency.
Save your changes, and close the window.
Validate Your MassAllocation Batch
Validate the MassAllocation definition. When your validation request finishes, requery
your MassAllocation (you may need to leave the form) to see if the status changed to
"Validated."
Generate Your MassAllocation Formula
Generate your allocation formula for the latest open period.
Review and Post Your MassAllocation Batch
Review your allocation journal batch in the Enter Journals form and post the resulting
allocation journal batch, named MA: <Request ID> <Batch Name> <Period>.

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Solution - Creating Mass Allocation Journals


1.

Navigate to the Enter Journals window


(N) Journals > Enter > (B) New Journal
Enter the Journal Name of XX_Employee Headcount.
Accept the default of the latest current open GL period.
Enter Headcount in the Category field
Change the default currency to STAT.
Enter the following journal lines:
Line

2.

Account

Debit

10

01-410-9110-21XX-000

100

20

01-420-9110-21XX-000

150

30

01-430-9110-21XX-000

100

Click on the More Actions button and then the Post button.
Click Yes when asked to save your work before continuing.
Note the posting concurrent request ID. Ensure the Posting process completes normally
by going to View > Request from the menu bar and review the concurrent request status.
Go back to or open the Enter Journals window.
(N) Journals>Enter
Select the New Journal button and enter XX_Benefits in the Journal name field. Accept
the default latest open GL period.
Enter Allocation in the Category field. Skip the Description field and accept the default
USD in the Currency field.
Enter the following journal lines:
Line
10

Account
01-404-6140-21XX-000

Debit
250,000

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Chapter 5 - Page 39

Credit

20

3.

01-000-2410-21XX-000

250,000

Click on the More Actions button and then the Post button.
Click Yes when asked to save your work before continuing.
Note the posting concurrent request ID. Ensure the Posting process completes normally
by going to View > Request from the menu bar and review the concurrent request status.
Open the Define MassAllocations window.
(N) Journals>Define>Allocation
Enter XX_Insurance Benefits in the Name field. Select Actual in the Balance Type field,
then skip the remainder of the fields in this window.

Select Formulas to open the Formula window.


Enter XX_Insurance Formula in the Name field. Select Allocation in the Category field
and Full Balance in the Allocate Balances From region.
Enter the lines of the MassAllocation formula as instructed in Task 3. Your screen should
look similar to the following:

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4.

5.

Save your changes, and close the window to return to the Define MassAllocation
window.
Select Validate All from the Define MassAllocation window to launch a concurrent request.
Note the concurrent request ID. Ensure the Validating process completes normally by
going to View > Request from the menu bar and review the concurrent request status.
When your request completes, requery your MassAllocation by using the Find icon on
the Toolbar and selecting your MassAllocation batch name. Check to make sure the
status is Validated.

Open the Generate MassAllocation Journals window.


(N) Journals>Generate>Allocation
Locate your batch using the list of values.
Select your batch and enter the latest open period in the Period field.

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6.

Choose Generate and note your concurrent request ID.


Ensure the Generate process completes normally by going to View > Request from the
menu bar and review the concurrent request status.
When your process completes successfully, open the Enter Journals window.
(N) Journals>Enter
In the Find Batches window, enter MA:%XX_INS% in the batch field name and click the
Find button.
Click in the Review Journal button to review the lines of the generated journal entry.

Click on the More Actions button and then the Post button.
Note the posting concurrent request ID. Ensure the Posting process completes normally
by going to View > Request from the menu bar and review the concurrent request status
Note: If you did not achieve the desired results, check the following:
There are balances entered for the Headcount account 9110 for the STAT currency.
You posted the entries in Tasks 1 & 2 to record the headcount and cost pool
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Chapter 5 - Page 42

AutoAllocations Overview

AutoAllocations Overview
AutoAllocations is a powerful feature to automate journal batch validation and generation
for:
- MassAllocations
- Recurring Journals
- MassBudgets
- MassEncumbrances
Use AutoAllocations to process journal batches you generate regularly, such as month
end closing.

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Chapter 5 - Page 43

AutoAllocation Workbench

AutoAllocation Workbench
You can use the AutoAllocation Workbench to automatically allocate any financial amount
throughout your organization.
You can create allocation sets with the AutoAllocation Workbench by grouping allocation
journals in an intuitive form. AutoAllocation supports any combination of MassAllocations,
MassBudgets, Recurring Journals, MassEncumbrances, and Oracle Projects allocation rules.
The AutoAllocation Workbench also supports both Step-Down and Parallel allocation sets.
Oracle General Ledger also provides the AutoAllocation Workbench to Oracle Projects users.
Project accountants can access the AutoAllocation Workbench directly from Oracle Projects to
create Step-down and Parallel allocation sets. You can even combine allocations in Oracle
Projects with Oracle General Ledger allocations. This tight integration allows for more
effective financial management, because you can leverage the most current financial data from
both applications as the basis for your allocations.
Oracle Workflow controls the approval and rollback processes.

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Chapter 5 - Page 44

Business Benefits of AutoAllocation Workbench

Business Benefits of AutoAllocation Workbench


Automates step-down and parallel allocations
Monitors allocation processes online
Optional automated rollback eases error recovery and control
Oracle Workflow notifies users of step-down allocation process results
You can use Oracle Workflow to incorporate approvals into the step-down process

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Chapter 5 - Page 45

AutoAllocation Workbench

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AutoAllocation Set Types

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Step-Down AutoAllocations

Step-Down AutoAllocations
You must create journal batches in a specific sequence when using Step-down
AutoAllocation.
Order your journal batches so that the process results of one step are used in the next step
of the AutoAllocation set.
Step-down AutoAllocation sets automatically validate, generate, and post all journals
created by the process.
Note: You can navigate to all the required forms to define MassAllocation and Recurring
Journal formulas from the AutoAllocation workbench window.

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Parallel AutoAllocations

Parallel AutoAllocations
Validates and generates all the journal batches in the AutoAllocation set simultaneously.
You can then post the generated journals to update your balances.

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Additional Workbench Functionality

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AutoAllocation Sets and Oracle Workflow

AutoAllocation Sets and Oracle Workflow


The Step-down AutoAllocation process invokes subprocesses to generate and validate
AutoAllocation set batches incorporating approvals and notifications at various points in
the process.
If the generation batch requires approvals, Workflow launches the batch approval
process.
If the Step-down AutoAllocation process fails, Workflow gives the contact individual or
responsibility the option to rollback the process. Rollback cancels any generated journal
batches and reverses any posted journal batches.
To use the rollback option, you must set the GL: AutoAllocation Rollback Allowed
profile option.

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AutoAllocations and Oracle Workflow

AutoAllocations and Workflow


The Step-down AutoAllocation process invokes subprocesses to generate and validate
AutoAllocation set batches incorporating approvals and notifications at various points in
the process. If the generation of a batch requires approvals, Workflow launches the batch
approval process.
If the Step-down AutoAllocation process fails, Oracle Workflow gives the contact
individual or responsibility the option to roll back the process. Rollback cancels any
generated journal batches and reverses any posted journal batches.
Note: You must select the GL: AutoAllocation Rollback Allowed profile option for rollback to
be an option if the AutoAllocation process fails.
The Workflow process is delivered with four customizable functions that allow
customers to have more control in the validation and generation of journals resulting
from Step-down allocations.

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AutoAllocations Constraints

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Submitting AutoAllocation Set Requests

Submitting AutoAllocation Set Requests


Before you submit your AutoAllocation set, complete the Parameters window, which must be
accessed from the AutoAllocation Workbench window.
Submit Parallel and StepDown AutoAllocation sets:
Immediately
Scheduled Later
At Specified Intervals

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Reviewing the Status of AutoAllocations

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Implementation Considerations for AutoAllocation Workbench

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Chapter 5 - Page 56

Practice - Creating a Step-down Allocation Set


Overview
In this practice, you will create a Step-down Allocation Set.

Assumptions

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Use the General Ledger, Vision Operations (USA)


Replace XX in the Practice with a unique identifier such as your initials or a number.
This is necessary in order to create unique records within the database while
performing the Practice.

Tasks
1.

Define a Step-Down Allocation Set in the AutoAllocation Workbench


Define a Step-Down Allocation set with a name and description called XX_Student,
replacing <XX> with your unique identifier.
The default contact name for your allocation set is General Ledger Vision Operations.
Enter the following information in the Workbench:
Step

2.

Type

Batch

Allocation Method

10

Mass Allocations

Fixed Allocation Example

Full

20

Recurring Journals

Recurring Expense Journal

N/A

Navigate to the Define Recurring Journal Formula window to review detail for the journal
entry line. Save your allocation set.
Submit your Step-Down Allocation
Submit the Step-Down Allocation that you defined in Step 1 for the latest open GL
period. Review the status of your AutoAllocation set.

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Solution - Creating a Step-down Allocation Set


1. Navigate to the AutoAllocation Workbench window:
(N) Journals>AutoAllocation>Workbench
In the Allocation Set field, enter XX_Student.
In the Description field, enter XX_Student.
Select Step-Down as the Allocation Set Type.
Note: Once you save your AutoAllocation set, you cannot change the Allocation Set
Type.
Enter the information as follows:
Step

Type

Batch

Allocation Method

10

Mass Allocations

Fixed Allocation Example

Full

20

Recurring Journals

Recurring Expense Journal

N/A

Click the Recurring Journals button (the Definition Drilldown button) to query the
recurring journal.
Note: The Definition Drilldown button (lower left) is a dynamic button. The label
changes with your choice of Type. Use this button to query and edit existing or new
Mass Allocations, Mass Budgets, Recurring Journals, or MassEncumbrances. You
can drill down to the Batch Definition window to view the details of your batch.

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2.

Close the Recurring Journals window.


Save your work.
Select the Submit button. The Parameters window appears.
In the Period field, enter the latest open GL period.

Click the Submit button. Note your concurrent request ID number that appears.
Click the OK button to close the Note window.
Navigate to the View AutoAllocation Statuses window:
(N) Journals>AutoAllocation>View Status
Open the Find Allocation Sets window:
(M) View>Find
Select your concurrent request ID number. Your allocation set appears.

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For each record, click the Step Detail button to open the Allocation Step Details window.

Note: In order for the second step of the Allocation Set to process, Oracle Workflow
must be running in the background. You can run the Workflow Background Process
program for GL Processes from the Systems Administrator responsibility.

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Chapter 5 - Page 60

AutoScheduling Overview

AutoScheduling Overview
Automatic Journal Scheduling enables you to generate Recurring Journals, AutoAllocation
sets, Mass-Allocations, MassBudgets and Budget Formulas according to a schedule you define.
For example, you can schedule the same journal and allocation sets to be generated every
month as part of your monthend closing procedures.

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AutoScheduling Process

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Financial Schedules

Financial Schedules
(N) Setup > Other > Schedule
You can create General Ledger financial schedules based on different calendars and period
types. You can then schedule AutoAllocation sets, Recurring Journals, MassAllocations,
Budget Formulas, and MassBudgets to run according to the General Ledger schedules that you
have defined. Your journals (as well as any other process that can be submitted by SRS) are
automatically generated based on the schedule you assigned. All schedules are shared across
sets of books. You can define multiple schedules for each calendar and period type in Oracle
General Ledger.
How to Define a Financial Schedule
1. Open the Concurrent Request Schedules window.
2. In the Schedule field, enter your schedule name.
3. In the Calendar field, from the list of values select a calendar defined in Oracle General
Ledger.
4. In the Period Type field, choose a period type.
5. In the Run Day field, enter a number from 1 to 366, or enter last day to choose the last
day of each period. For example, selecting 5 for run day sets your request to run on the
fifth day of the period.
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6. In the Run Time field, enter the time in 24-hour format. This is the time you want your
program to run on the day specified in the Run Day field.
7. Select the Enable check box to make your schedule available for selection from the
Standard Report Submission window.
8. Save your work.

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Scheduling Journals

Scheduling Journals
Create or define Recurring journals, MassAllocations, Budget formulas, MassBudgets, and
AutoAllocation sets. Enter submission parameters, and select a schedule to automate the
generation of your journals. You can then review and post the generated journals.
Note: You can also choose any defined schedule in the Application Object Library (AOL).
AOL schedules are based on a standard monthly calendar. You can define a new AOL
schedule or use one of your existing schedules. You can define your AOL schedule to run a
request as soon as possible, at a specific time, or repeatedly at specific intervals, on a specific
day and time of the week or month.

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Scheduling a Request Using a Financial Schedule

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Periodic Submissions

Periodic Submissions
Additional Information on Incremental Submission
General Ledger calculates the journal period for subsequent scheduled submission based on the
initial period offset for Non-ADB sets of books. General Ledger assigns the date closest to the
start date as the journal effective date.
The initial period offset is the number of non-adjusting periods between the journal period and
the initial run period.
For example, if you want to establish a monthly schedule to book month end rent allocation
entries for calendar year 1999, schedule General Ledger to run a rent allocation set on the 1st
of every month from January to December 1999. Submit your rent allocation set on the start
date of February 1, 1999 and enter January 1999 as the Journal Period. The period offset is
calculated to be -1.
When the rent allocation set is automatically resubmitted on March 1, 1999, General Ledger
sets the Journal Period to February 1999. Each subsequent submission has a journal date of the
prior month.
Note: The AOL saved schedules do not save the increment parameter. It requires you to check
it every time.

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Incremental Submissions

Incremental Submissions
You can choose to increment your scheduled submissions.
Prerequisites for incremental submissions:
Your set of books calendar must include all the schedule start dates for the schedule you
are using.
You must enter a nonadjusting period when you first submit your scheduled request.
You must enter a business day for both journal and calculation effective dates when you
submit a request in an Average Daily Balance, NonConsolidation set of books.

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Implementation Considerations for Journal Entry Automations

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Chapter 5 - Page 69

Practice - Creating a Financial Schedule


Overview
In this practice, you will create a Financial Schedule and then Submit a program using the
schedule.

Assumptions
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Use the General Ledger, Vision Operations (USA) responsibility


Replace XX in the Practice with a unique identifier such as your initials or a number. This
is necessary in order to create unique records within the database while performing the
Practice.

Tasks
1.

2.

Create a financial schedule


Open the Define Financial Schedule window
Define and enable a financial schedule with a name called XX_Student, replacing <XX>
with your unique identifier. The schedule should run on the second day of every
accounting month at 8 a.m.
Submit the Chart of Accounts - Segment Values Listing Report using the financial schedule
you just created.

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Solution - Creating a Financial Schedule


1.
2.
3.
4.
5.
6.
7.

Open the Concurrent Request Schedules window:


(N) Setup>Other>Schedules
In the Schedule field, enter XX_Student.
In the Calendar field, enter Accounting.
In the Period Type field, enter Month.
In the Run Day field, enter 2.
In the Run Time field, enter 8.
Select the Enabled check box.

8.
9.

Save your work.


Open the Submit Requests window:
(N) Reports>Request >Standard
10. In the Name field, use the List of Values to select the Chart of Accounts - Segment Values
Listing Report
11. In the Parameters window, choose any one of the segments listed.

12. (B) Schedule


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13. (B) Apply a Saved Schedule


14. Select the XX_Student schedule that you defined.

15. (B) OK
16. Submit your request. The schedule will run on the second day of the month at 8 a.m.

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Chapter 5 - Page 72

GL Journal Approval Process Overview

GL Journal Approval Process


The GL Journal Approval Process obtains the necessary management approvals for manual
journal batches. The process validates the journal batch, determines if approval is required,
submits the batch to approvers (if required), then notifies appropriate individuals of the
approval results.
The process gives one of four results:
Approval Not RequiredThe journal batch does not need approval.
ApprovedThe journal batch was approved by all necessary approvers.
RejectedThe journal batch was rejected by an approver.
Validation FailedThe journal batch failed the validation process and was never
submitted to the approver.
Note: If the profile option "Journals: Allow Preparer Approval" has been set to Yes and the
preparer has the appropriate authority, then the journal can be autoapproved.

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Journal Approval Features

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Journal Approval Process

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Journal Approval Process

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Journal Approval Process

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Journal Approval Process

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Journal Approval Process

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Approval Methods

Approval Methods
1. Go up the Management ChainRequires approval of everyone within the management
chain, up to and including the person with appropriate authorization limit.
2. Go Direct to Person with Sufficient Authorization LimitRequires only the approval of
the person with sufficient authorization limit. Bypasses any manager who does not have
sufficient authorization to approve the journal.
3. One Stop Go DirectRequires approval of preparers direct manager and, if necessary,
the next person with sufficient approval authority.

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Chapter 5 - Page 80

Journal Approval Prerequisites

Journal Approval Prerequisites


1. Set up Workflow.
2. Set General Ledger Profile Options:
- JournalsAllow Preparer Approval
- JournalsFind Approver Method
3. Configure GL Journal Approval Process in Oracle Workflow Builder.
4. Set three WorkFlow activity settings (Optional):
- Request Approval From Approver Timeout
- Reached Manager Notification Resend Limit
- Default Error Notification

Copyright Oracle, 2009. All rights reserved.

Advanced Journal Entries


Chapter 5 - Page 81

Setting Up Journal Approval

Setting up Journal Approval


1. Enable Journal Approval for your set of books.
- Journal Approval is enabled in the set of books window
- When you enable journal approval for a set of books, you will be asked if you want
to automatically enable journal approval for manual journal entries
2. Specify journal sources that require Journal Approval.
- You can enable journal approval for specific journal sources in the Journal Sources
window
- For example, you might require journal approval for manual journal entries and a
user might require any MassAllocation journal batch to be approved before it is
posted
3. Create an approval hierarchy for employees and supervisors and define authorization
limits.
- Enter employees in Oracle Human Resources (if installed) or Oracle General
Ledger
- Define authorization limits for employees in the Journal Authorization Limits
window
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Advanced Journal Entries


Chapter 5 - Page 82

Oracle Workflow automatically routes journals to the appropriate user based on the
approval hierarchy you define

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Advanced Journal Entries


Chapter 5 - Page 83

Summary

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Advanced Journal Entries


Chapter 5 - Page 84

Intercompany
Chapter 6

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Intercompany
Chapter 6 - Page 1

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Intercompany
Chapter 6 - Page 2

Intercompany

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Intercompany
Chapter 6 - Page 3

Objectives

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Intercompany
Chapter 6 - Page 4

Balancing Intercompany Transactions for Multiple Companies within


a Single Set of Books

Balancing Intercompany Transactions for Multiple Companies within a Single Set


of Books
You can use the Intercompany Accounts window to define templates that govern how
intercompany balancing lines are created by General Ledger. When an intercompany
transaction is posted, General Ledger automatically creates account code combinations for
intercompany balancing lines based on combinations of source, category, and balancing
segment defined in the template.
You can also create an intercompany segment in your chart of accounts structure that shares
the same value set as the balancing segment. The intercompany segment is used in the account
code combination to create balanced intercompany journals. Intercompany transactions using
the intercompany segment provide more detail for reporting and reconciliation.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 5

Intercompany Balancing Options within a Single Set of Books

Intercompany Balancing Options within a Single Set of Books


When you select the Balance Intercompany Journals check box on the Set of Books window,
Oracle General Ledger offers a number of solutions to automatically account for intercompany
transactions in a single set of books.
Standard Intercompany Balancing:
You can create generic balancing lines against the intercompany accounts that you have
defined for specific sources and categories. This method does not track payable and
receivable balances for trading subsidiaries.
Enhanced Intercompany Balancing:
You can define separate intercompany accounts to record more detail for your
intercompany journals and track intercompany balances.
Clearing Companies:
You can designate one company to act as the trading partner for all subsidiary companies
in the organization for certain types of intercompany transactions.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 6

Intercompany Segment Balances:


Instead of using different natural accounts to track intercompany balances, you can use an
intercompany segment in your chart of account to record the same detail as enhanced
intercompany balancing.

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Intercompany
Chapter 6 - Page 7

Intercompany Segment

Intercompany Segment
Shares the same value set and values as the balancing segment and is used in the account
combination that Oracle General Ledger creates to balance intercompany journals.
Facilitates tracking the trading companies involved in an intercompany transaction.
Automatically populates the intercompany segment with the balancing segment of the trading
partner.
Creates balancing journal lines, during the posting process, that use the appropriate
intercompany accounts for the source, category, balancing segment, and type, with
consideration for the intercompany segment and clearing company, if applicable.
Makes creation and reconciliation of intercompany transactions more effective.
Provides more detailed reporting by trading partner.
Enables minimal definition of intercompany accounts since GL automatically create these
account for you. In the Intercompany Accounts window define Other for the Source and the
Category, and All Other for the Balancing Segment.

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Intercompany
Chapter 6 - Page 8

Intercompany Entries

Intercompany Entries
Standard Intercompany Balancing
General Ledger can create generic balancing lines against the intercompany accounts that
you have defined for specific sources and categories. This method does not track payable
and receivable balances for specific trading subsidiaries.

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Intercompany
Chapter 6 - Page 9

Standard Intercompany Balancing

Standard Intercompany Balancing


Assume you define the intercompany accounts shown in the table 1 above for a specific
source and category.
You post the transaction, shown in the table 2, using the same source and category, to
transfer an asset from company 1 to companies 2 and 3.
General Ledger creates the journal lines shown in the table 3, to record intercompany
receivables for company 01 and intercompany payables for companies 02 and 03.

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Intercompany
Chapter 6 - Page 10

Enhanced Intercompany Balancing

Enhanced Intercompany Balancing


You can define separate intercompany account templates to record more detail for your
intercompany journals and track intercompany balances by trading subsidiary.
In the detail region, you define the accounts shown in the table 1.
Note: The balancing segment value you define in the template behaves dynamically in the
resulting balancing lines. It will change based on the balancing segment value of the trading
partner. The other segments in the template remain unchanged in the resulting balancing lines.
These account templates are used when a transaction is balancing against a specific
company. For example, if a transaction is balancing against company 01, then the
accounts defined for Company 01 in the Due From and Due To Account fields are used.
Post the transaction as shown in table 2.
General Ledger creates the journal lines shown in table 3. These are based on the
intercompany template you defined.
This method illustrates that company 01 has intercompany receivables of 700: 300 from
company 02 and 400 from company 03. It also indicates that company 02 has an
intercompany payable to company 01 of 300 and company 03 has an intercompany
payable to company 01 of 400.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 11

Intercompany Segment Balancing

Intercompany Segment Balancing


Instead of using different natural accounts to track intercompany balances, you can use an
intercompany segment in your chart of accounts to record the same detail as the enhanced
intercompany balancing described previously.
Assume your chart of accounts has the following structure:
- CO CC ACCT IC, where
CO
CC
ACCT
IC

is the balancing segment


is the cost center segment
is the natural account segment
is the intercompany segment

Also assume you define the accounts shown in the table 1.


You post the transaction, shown in the next table 2.
Then General Ledger creates the journal lines, shown in the table 3.
Note: General Ledger automatically populates the intercompany segment in the balancing line
account code combination.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 12

Clearing Companies

Clearing Companies
Your organization can designate one company to act as an operational unit for all
subsidiary companies in the organization for certain kinds of transactions. Intercompany
Balancing in General Ledger supports this kind of operational decision.
For example, company 01 among your subsidiary companies may provide the accounts
payable function for your entire organization. All accounts payable transactions clear
through company 01. When you create a clearing company like this, you can:
- Consolidate the accounts payable activities for the entire company
- Automatically balance multi company intercompany transactions
- Track the amounts each individual subsidiary owes to each other subsidiary
You can use enhanced intercompany accounting or the intercompany segment to
implement the clearing company model.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 13

Clearing Companies Using Enhanced Intercompany Accounting

Clearing Companies Using Enhanced Intercompany Accounting


Table 1 above details how transactions are created using the clearing company model.
Assume you define the accounts, listed in the table 1, in the detail region of the
Intercompany Accounts window.
- You designate company 04 as the clearing company.
- You post the transaction in table 2.
- General Ledger creates the journal lines shown in the table 3.
The result tells us that company 04 has intercompany receivables of 700: 300 from
company 02 and 400 from company 03. It also tells us that company 02 has an
intercompany payable to company 04 of 300 and company 03 has an intercompany
payable to company 04 of 400. Company 01 has intercompany receivables of 700 from
company 04. Company 04 has an intercompany payable to company 01 of 700.
Companies 01 through 03 balance against the clearing company, 04.
If you create an intercompany journal and you do not specify the clearing company in the
Enter Journals window, the transaction posts against the default balancing segment value
you specify in the default clearing company field.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 14

How to Set Up a Clearing Company Using Enhanced Intercompany Accounting


1. Open the Intercompany Accounts window.
2. Specify the Source and Category for the intercompany accounts you are defining.
3. Select Summary or Detail Balancing
4. In the Clearing Company Usage tab, select Always Use Clearing Company.
5. In the Default Options tab, select Use Default Clearing Company. Enter the balancing
segment value for the default clearing company.
6. In the Intercompany Detail region, complete the Company, Due From and Due To
columns for the intercompany accounts you want to define.
7. Save your work.

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Intercompany
Chapter 6 - Page 15

Using Intercompany Segments in the Clearing Model

Using Intercompany Segments in the Clearing Model


Assume you define the accounts, listed in table 1, in the detail region of the Intercompany
Accounts window. You choose company 06 as the clearing company.
You create multiple debit entries for multiple companies and multiple credit entries for
multiple companies as listed in the following table 2.
When you post the transaction, General Ledger automatically creates the additional
balancing entries, shown in the table 3, with the following account code combinations:

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 16

Using Intercompany Segments in the Clearing Model (continued)

Using Intercompany Segments in the Clearing Model (continued)


When you post the transaction, General Ledger automatically creates the additional
balancing entries, with the following account code combinations shown in the table 3.
If you create an intercompany journal involving many companies and you do not specify
the clearing company in the Enter Journals > More Criteria window, the transaction posts
against the default company you specified in the Default Clearing Company field.
General Ledger automatically uses the intercompany segment in the account code
combination to track balances by trading subsidiary.
You can override the default clearing company in the intercompany account definition by
specifying a clearing company in the Enter Journals window.
How to set up Clearing Company using the Intercompany Segment
Note: The intercompany balancing segment must be enabled in your chart of accounts.
1. Open the Intercompany Accounts window.
2. Specify a Source and Category for the intercompany accounts you are defining.
3. Select Summary or Detail balancing.
4. In the Clearing Company Usage tab, select Many to Many Intercompany Transactions
Only.
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Intercompany
Chapter 6 - Page 17

5. In the Default Options tab, select Use Default Clearing Company. Enter the balancing
segment value for the default clearing company.
6. In the detail region below, tab through the Company column. All Other appears. Enter
Due From and Due to accounts.
- All Other includes all balancing segments not defined in the Company column. You
do not need to enter any other values in the Company column since they are
represented in the intercompany segment.
7. Save your work.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 18

Using Intercompany Segments in the Clearing Model (continued)

Using Intercompany Segments in the Clearing Model (continued)


How to set up Clearing Company using the Intercompany Segment (continued)
Note: Assume you follow the previous procedures, except, in step 5, choose the Default
Balancing Account. Also assume you define the All Other Accounts in the detail region as
shown in table 4.
You process the transactions detailed in the table 5.
In this many to many transaction, no clearing company usage is specified. It is not
possible to track a specific trading partner. The clearing lines will not indicate the correct
trading partner for the Due To and Due From accounts. The intercompany segment will
remain the same as that defined in the template, as shown in table 6.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 19

Setup Steps for Intercompany

Setup Steps for Intercompany


Set of Books Form: You must enable the Balance Intercompany Journals checkbox in the Set
of Books window before you can use intercompany balancing.
Intercompany Segment Qualifier (Optional): When setting up your segments for your chart of
accounts, you can use an intercompany segment that has the intercompany segment qualifier
attached to it. The only difference between a chart of account without an intercompany
segment and one with an intercompany segment is that the Posting program automatically
populates the intercompany segment, when appropriate, with the corresponding balancing
segment.
Intercompany Accounts Form:
Completing this form is required if you enable intercompany balancing regardless of the
method you choose to use. You can balance intercompany journals based on multiple
parameters:
- Journal Source
- Journal Category
- Balancing Segment Value
For each combination of these three parameters you can specify a unique intercompany
account or template for Oracle General Ledger to use to balance intercompany journal
Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 20

entries automatically. Based on the rule the you define, Oracle General Ledger inserts
additional journal lines to offset journal lines that cross balancing segments. Your
intercompany account rules may also include different accounts based on whether the
balancing amount should be posted to a credit account (due to) or a debit account (due
from). At the journal source and category level you can also specify whether
intercompany journal balancing is perform at a summarized level for each trading partner
or a the journal level.
For clearing companies you have the choice of Always Use Clearing Company versus
Many to Many Intercompany Transactions Only. The difference is that with Always Use
Clearing Company, the clearing company logic applies to all transactions (single to
single, multiple to multiple, and multiple to single). For Many to Many Intercompany
Transactions Only, the clearing company logic only applies to multiple to multiple
transactions.
The minimal level of set up required in the Intercompany Accounts form is to use a
source and category of Other. Then for the balancing segment, use the default of All
Other and enter the same account number in both the due from account and the due to
account.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 21

Guided Demonstration - Set Up Intercompany Balancing


Responsibility: General Ledger, Vision Operations (USA)
N > Setup > Financials > Books > Define
1. In the Set of Books window, run a query for Vision Demo Corporation, Inc. Set of Books.
2. Open the Journaling tab and verify that the Balance Intercompany Journals check box is
selected. A message box reminds you to define intercompany accounts.
3. Save your work and navigate to the Intercompany Accounts window.
N > Setup > Accounts > Intercompany
There are several ways to set up intercompany balancing.
Standard Intercompany Balancing
This method uses one account for balancing intercompany payables and receivables.
4. Run a query to select the following:

5.
6.
7.

Source

Other

Category

Other

Balance
by

Summary

In the Clearing Company Usage tabbed region, verify that Many to Many Intercompany
Transactions Only is selected.
In the Default Options tabbed region, verify that Use Default Balancing Account is selected.
Enter account information:
Company

All Other

Use the Tab key to enter this default.

Due From
Account

01-000-2980-0000000

Due To Account

01-000-2980-0000000

This is the minimum information required to set up intercompany balancing.


Enhanced Intercompany Balancing
This method uses different accounts for balancing transactions between different legal entities.
8. In the Intercompany Accounts window, enter the following:
Source

Purchasing

Category

Accrual

Balance
by

Summary

9.

In the Clearing Company Usage tabbed region, select Many to Many Intercompany
Transactions Only.
10. In the Default Options tabbed region, select Use Default Balancing Account.
11. Enter account information:
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Intercompany
Chapter 6 - Page 22

Company

01

Due From
Account

01-000-2371-2113-000

Due To Account

01-000-1811-2113-000

Company

02

Due From
Account

02-000-2372-2113-000

Due To Account

02-000-1812-2113-000

Company

All Other

Due From
Account

01-000-2980-0000-000

Due To Account

01-000-2980-0000-000

Use the Tab key to enter this


default

12. Save your work.


Clearing Company
This method designates one company to act as the trading partner for all other companies.
13. In the Intercompany Accounts window, enter the following:
Source

Assets

Category

Addition

Balance by

Summary

14. In the Clearing Company Usage tabbed region, select Always Use Clearing Company.
15. In the Default Options tabbed region, select Use Default Clearing Company and enter 05
for the company.
16. Enter account information:
Company

05

Due From Account

05-000-2372-2113-000

Due To Account

05-000-1812-2113-000

17. Save your work.


Create an Intercompany Segment (Optional)
With this method, you add an extra segment to your chart of accounts called Intercompany. The
intercompany segment shares the same value set with the balancing segment. Then designate
the accounts that the intercompany segment will use to balance intercompany transactions.
18. Navigate to the Segments Summary window to view the Intercompany Segment flexfield
qualifier.
N > Setup > Financials > Flexfields > Key > Segments
19. Select the Find icon and select Oracle General Ledger.
20. In the Structure region, select Corporate Accounting Flex and then select the Segments
button.
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Intercompany
Chapter 6 - Page 23

21. Select the Intercompany segment and then select the Flexfield Qualifiers button. The
Intercompany Segment flexfield qualifier is enabled for the Intercompany segment.
22. Return to the Intercompany Accounts window.
N > Setup > Accounts > Intercompany
23. Enter the following:
Source

Other

Category

Other

Balance by

Summary

24. In the Clearing Company Usage tabbed region, select Many to Many Intercompany
Transactions Only.
25. In the Default Options tabbed region, select Use Default Balancing Account.
26. Enter account information:
Company

01

Due From Account

01-000-2980-02

Due To Account

01-000-2980-02

Company

All Others

Due From Account

01-000-2980-00

Due To Account

01-000-2980-00

The first and last segments act as masks and will be populated with the proper values.
27. Save your work.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 24

Practice - Intercompany Balancing Setup


Tasks
In this practice you will learn how to set up Intercompany Balancing.

Business Situation
1.

Go to the Intercompany Accounts window and set up the following for intercompany
balancing.
Source

Other

Category

Other

Balancing

Summary

Default Option
Tab

Select: Use default Balancing Account

Company Line 1

01

01.110.9930.02

01.110.9930.02

Company Line 2

02

02.110.9930.01

02.110.9930.01

Company Line 3

All Others (Tab through and it defaults


in)

00.000.9930.00

00.000.9930.00

Assumptions

Use Vision database


Login information provided by your instructor

Replace XX with the number provided by your instructor

Logon as XX_GL_STUDENT and select the XX_US Controller Responsibility.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 25

Solution - Intercompany Balancing Setup


Task
In this practice you will learn how to set up Intercompany Balancing.
Solution
1. Open the Intercompany Accounts window and set up the following for intercompany
balancing.
(N) Setup > Accounts > Intercompany
2. Select the Default Options tab to enter Company Line information.

3.

Source

Other

Category

Other

Balancing

Summary

Default Option
Tab

Select: Use default Balancing Account

Company Line 1

01

01.110.9930.02

01.110.9930.02

Company Line 2

02

02.110.9930.01

02.110.9930.01

Company Line 3

All Others (Tab through and it defaults


in)

00.000.9930.00

00.000.9930.00

Save your work.

Copyright Oracle, 2009. All rights reserved.

Intercompany
Chapter 6 - Page 26

Summary

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Intercompany
Chapter 6 - Page 27

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Intercompany
Chapter 6 - Page 28

Global Intercompany System


Chapter 7

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Global Intercompany System


Chapter 7 - Page 1

Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 2

Global Intercompany System

Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 3

Objectives

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Global Intercompany System


Chapter 7 - Page 4

Global Intercompany System (GIS) Overview

Global Intercompany System Overview


Global Intercompany System (GIS) provides a controlled, central location for subsidiaries to
conduct intercompany transactions throughout a global organization. GIS manages
intercompany transactions that occur between sets of books.
A sender subsidiary logs in to GIS to enter and submit an intercompany transaction to a
receiver subsidiary for review. Once the receiver reviews and approves the transaction, both
subsidiaries post the intercompany transaction as a journal entry to their operating sets of
books. You can also allow certain subsidiaries to automatically approve selected intercompany
transactions for the receiver, reducing cycle time.
GIS streamlines the intercompany transaction and reconciliation process by preventing out of
balance intercompany transactions from occurring. For example, if two subsidiaries record the
exchange of services as different amounts, on different dates, or use different exchange rates or
currencies, the result is an out of balance intercompany transaction.
GIS requires both sender and receiver subsidiaries to approve the amount, transaction date, and
currency of an intercompany transaction. When the transaction is approved, each subsidiary
posts the balanced transaction to its operating set of books.

Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 5

GIS Structure

Global Intercompany System Overview


GIS accommodates diverse enterprise structures. Any subset of an organization can be defined
as a GIS subsidiary. In the example above, a foreign company subsidiary, a cost center within a
subsidiary, or a region of multiple subsidiaries can all be set up as GIS subsidiaries as long as
they are associated with a balancing segment value.
Each subsidiary has a unique name and is associated with a detail balancing segment value.
GIS subsidiaries with different charts of accounts, calendars, currencies, and applications
instances can exchange transactions with one another through GIS.

Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 6

GIS Notifications

GIS Notifications
GIS also incorporates Oracle Workflow to send notifications to a defined user or responsibility
when a intercompany transaction is initiated. For example, when a sender submits a
transaction, the receiver is notified by Workflow to review and approve the transaction.
When the receiver approves or rejects the transaction, the sender receives a Workflow
notification.
You can control the volume of notifications by defining a threshold amount that a transaction
must meet before a notification is sent. You can set a large threshold amount so Workflow
notifies the appropriate individual or responsibility when large transactions occur.
Notifications can be sent via email, the web, or Oracle Applications.
Workflow notifications are sent to the defined user or responsibility when the threshold amount
is met and any of the following scenarios occur:
A transaction is submitted
A transaction is approved
A transaction is rejected
A transaction is recalled
A transaction is reversed
Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 7

An exchange rate is not available for a transaction

Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 8

Setting Up Global Intercompany System

Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 9

Setting Up GIS Subsidiaries

Setting Up GIS Subsidiaries


How to Define a GIS Subsidiary
1. Log on to your GIS system using the GIS administrator responsibility.
2. Open the Subsidiaries window.
3. Enter a name for your GIS subsidiary.
4. Check the Enabled check box to activate your GIS subsidiary.
5. Optionally, enter a description.
6. Enter or select your GIS subsidiary's set of books. The chart of accounts is displayed in
the Chart of Accounts field. The set of books functional currency is displayed in the
Transaction Currency field.
7. Optionally, you can change the transaction currency in the Transaction Currency field.
The currency you enter in this field is the default currency for any intercompany
transactions you initiate.
8. Enter the balancing segment value you want to associate with your GIS subsidiary in the
Company field.
9. Check the appropriate check boxes for GIS subsidiary privileges.
10. Complete the fields in the Subsidiary Notifications Options regions.
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Global Intercompany System


Chapter 7 - Page 10

11. Enter the GIS subsidiary's Transfer Options by completing the fields in this region.
12. Save your work.

Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 11

Subsidiary Privileges

Subsidiary Privileges
When you create a GIS subsidiary, you must define the subsidiary's privileges. Privileges
determine which actions a GIS subsidiary can take when entering GIS intercompany
transactions. There are three types of privileges:
Parent Privileges: A GIS subsidiary with parent privileges can automatically approve any
intercompany transaction, regardless of whether the transaction type allows auto
approval. Also, the subsidiary can review all GIS transactions, instead of being limited to
only those transactions for which the subsidiary is the sender or receiver.
Allow AutoApproval: A GIS subsidiary with autoapproval privileges can automatically
approve intercompany transactions if the transaction type allows autoapproval.
- Additional Information: Any subsidiary with Parent Privileges automatically has
autoapproval privileges.
Access Partner Lines: Check this check box to control a subsidiary's access to the Sender
or Receiver region in the Enter Intercompany Transactions window.
- Enabled: A GIS subsidiary can view sender and receiver transaction lines.
- Disabled (default): A GIS subsidiary can only view its own transaction lines.
Note: Any GIS subsidiary with Parent Privileges automatically has Access Partner Line
privileges.
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Global Intercompany System


Chapter 7 - Page 12

Subsidiary Transfer Options

Subsidiary Transfer Options


When you define a GIS subsidiary, you must define whether the transfer set of books, the set of
books GIS transactions are transferred to, is local or remote to the GIS installation. You also
specify your local set of books name or remote set of books ID, the currency, and the
conversion rate type.
Select a Local or Remote Instance:
- Local Instance: Select if your subsidiary is transferring transactions to a set of
books on the same server as your GIS application. Complete the Local Book Name
field.
- Remote Instance: Select if your GIS subsidiary is transferring transactions to a set
of books on a different server from the GIS application. Complete the Remote Book
ID field.
Complete the following:
- Local Book Name: Enter or choose the name of the set of books to which GIS
transactions will be transferred. The set of books is located on the GIS applications
instance.
- Remote Book ID: Enter the ID of the set of books to which GIS transactions will be
transferred. The set of books is remote from the GIS applications instance.
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Global Intercompany System


Chapter 7 - Page 13

Transfer Currency: Enter the currency of the set of books to which GIS transactions
will be transferred.
Note: If the Local Instance is selected, the currency of the set of books indicated in the Local
Set of Books field is selected automatically and cannot be changed.
- Conversion Rate Type: Enter or choose the conversion rate type to be used during
currency conversion. This should be the conversion rate type associated with the
GIS applications instance.

Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 14

Defining Intercompany Transaction Types

Defining Intercompany Transaction Types


Before you can enter intercompany transactions in the GIS system, you must define your
intercompany transaction types. You can use transaction types for queries and to group similar
intercompany transactions for review and reporting. You can also use transaction types to
control which types of transactions are autoapproved.
To disable a transaction type, you can clear the Enable check box.
To define a transaction type:
1. Open the Intercompany Transaction Types window.
2. Enter the Transaction Type name and an optional Description.
3. Optionally, check the Allow AutoApprove check box if you want to allow GIS
subsidiaries that have the privileges to automatically approve intercompany transactions
that use this transaction type.
4. Make sure the Enabled check box is checked.
5. Save your work.
To disable a transaction type:
1. Navigate to the Intercompany Transaction Types window.
2. Query the transaction type that you want to disable.
Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 15

3. Clear the Enabled check box.


4. Save your work.

Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 16

Specifying Intercompany Clearing Accounts

Specifying Intercompany Clearing Accounts


You can define multiple clearing accounts for each of your GIS subsidiaries to balance your
GIS transactions. The clearing line in a GIS transaction for a subsidiary must contain one of the
accounts defined in this window for that subsidiary.
To define an intercompany clearing account:
1. Choose the responsibility for the GIS subsidiary for which you want to define
intercompany clearing accounts.
2. Open the Intercompany Clearing Accounts window.
3. Enter the natural account segment value for the clearing account.
4. Save your work.

Copyright Oracle, 2009. All rights reserved.

Global Intercompany System


Chapter 7 - Page 17

GIS AutoAccounting

GIS AutoAccounting
After a sender enters an intercompany transaction into GIS, the application can generate the
clearing line and the receiver's side of the transaction. GIS uses account generation rules
defined by the company to determine which accounts the receiver wants to use for the
transaction. After account generation finishes, GIS sends the transaction to the receiver for
review and approval.
In addition to the many time saving benefits already provided by GIS, this feature further
reduces intercompany transaction cycle time, because it eliminates repetitive and error-prone
manual data entry. This functionality helps you to enforce company policies regarding
intercompany transactions and ensures that similar transactions are recorded consistently.

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Chapter 7 - Page 18

Defining GIS AutoAccounting Rules

Defining GIS AutoAccounting Rules


Each set of AutoAccounting rules you create is defined for a specific sender's and
receiver's chart of accounts. Since many GIS subsidiaries can share the same chart of
accounts, you can still define specific relationships between specific GIS subsidiaries
within a set of AutoAccounting rules.
In each set of AutoAccounting rules, you can define rules to automatically generate any
or all of the following:
- Sender clearing transaction line
- Receiver distribution transaction lines
- Receiver clearing transaction line
You can use only one set of AutoAccounting rules per pair of sender/receiver chart of
accounts.
For example, a set of rules you define for chart of accounts A to chart of accounts B is
distinct from a set of rules you define for chart of accounts B to chart of accounts A.
How to Define AutoAccounting Rules
1. Navigate to the GIS AutoAccounting Rules window.
2. Specify the Sender and Receiver charts of accounts or choose from the list of values.
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Chapter 7 - Page 19

3. Check the rule check box you want to use:


- Sender Clearing Rules
- Receiver Distribution Rules
- Receiver Clearing Rules
4. Choose the activated rule button. You can define autoaccounting rules in the window that
appears.
- Sender Clearing Rules: Rules for automatically generating the sender clearing
transaction line for an intercompany transaction.
- Receiver Distribution Rules: Rules for automatically generating the receiver
distribution transaction line(s) for an intercompany transaction.
- Receiver Clearing Rules: Rules for automatically generating the receiver clearing
transaction line for an intercompany transaction.
5. Save your work.

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Chapter 7 - Page 20

Sender Clearing Rules

Sender Clearing Rules


How to Define Sender Clearing Rules
1. Open the Sender Clearing Rules window.
2. Select a segment in the Sender Chart of Accounts column.
3. Select one of the following from the Action poplist:
- Not Assigned: Select if you want the user to manually enter a segment value when
the transaction line is generated.
- Inherit From Sender Company: The balancing segment is assigned the Inherit From
Sender Company action and cannot be changed. No other segment can use this
action.
- Inherit From Receiver Company: The intercompany segment, if any, is assigned the
Inherit From Receiver Company action, but can be changed. No other segment can
use this action.
Note: This action must be defined only for an intercompany segment when either of the
following is true:
The sender and receiver share the same chart of accounts, or
The sender's balancing segment values are identical to the receiver's intercompany
segment values.
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Chapter 7 - Page 21

If neither of the above is true, select Not Assigned, Assign Single Value, or Use Rules.
Assign Single Value: Use this action to assign a specific segment value to the sender's
account code combination for that segment. You cannot select this action for the natural
account segment.
Use Rules: This action lets you define specific rules for a segment value based on the
transaction type in the Rules region below.
Note: If you select the Use Rules action and do not enter rules in the Rules region below, you
must manually enter a segment value in the Enter Intercompany Transaction window when the
transaction line is generated.
4. Save your work.

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Global Intercompany System


Chapter 7 - Page 22

Detailed Sender Clearing Rules

Detailed Sender Clearing Rules


When you choose the Use Rules action from the Action poplist, you can define the sender
clearing account for a specific transaction type.
Transaction Type: Enter or choose a transaction type from the list of values.
Sender: Enter or choose a sender from the list of values.
Sender Segment Value: Enter a value or choose from the list of values.
- The description is displayed in the Sender Segment Value Description field.
Note: You can leave the sender segment value field blank. You must manually enter the
segment value when the sender clearing line is generated in the Enter Intercompany
Transaction window.

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Chapter 7 - Page 23

Receiver Distribution Rules

Receiver Distribution Rules


How to Define Receiver Distribution Rules
1. Open the Receiver Distribution Rules window.
2. Select a receiver segment in the Receiver Chart of Accounts column.
3. Select one of the following actions from the Action poplist:
- Not Assigned: This is the default action assigned to most segments before rules are
defined. Select this action if you want the user to manually enter a segment value
when the transaction line is generated.
- Inherit From Receiver Company: The balancing segment is assigned the Inherit
From Receiver Company action and cannot be changed. No other segment can use
this action.
- Inherit From Sender Company: The intercompany segment is, if any, assigned the
Inherit From Sender action, but can be changed. No other segment can use this
action.
- Copy Value: You can use this action if the receiver's segment values are identical to
the sender's for a given segment. This action copies the sender's segment value to
the receiver's account code combination for that segment. Enter the sender's
corresponding segment in the Sender column or choose from the list of values.
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Chapter 7 - Page 24

Assign Single Value: Use this action to assign a specific segment value to the
receiver's account code combination for that segment. Enter the segment value in
the Sender column.
- Use Rules: This action lets you define specific rules for a receiver segment value
based on transaction type, sender, receiver, and sender segment value in the Rules
region below
4. Save your work.

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Global Intercompany System


Chapter 7 - Page 25

Detailed Receiver Distribution Account Rules

Detailed Receiver Distribution Account Rules


When you select Use Rules from the Action poplist, you can associate a receiver segment
value with a transaction type, a sender, a receiver, and a sender segment value.
Transaction Type: Enter or choose from the list of values.
Sender: Enter or choose from the list of values.
Receiver: Enter or choose from the list of values.
Sender Segment Value: Enter a value, choose from the list of values, or tab to choose
Other.
Receiver Segment Value: Enter a value or choose from the list of values. The segment
values available depend on the segment for which the rules are being defined.
When GIS uses these rules to generate a receiver segment value, the program attempts to
match the fields in the Detailed Rules region in the following order:
Transaction Type
Sender
Receiver
Sender Segment Value

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Chapter 7 - Page 26

For example, if two rules are defined as shown in the table above, GIS generates a receiver
segment value of 200 for a transaction with the transaction type Revenue Transfer, sender
Japan, receiver France, and a sender segment value 123.

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Chapter 7 - Page 27

Receiver Clearing Rules

Receiver Clearing Rules


How to Define Receiver Clearing Rules
1. Open the Receiver Clearing Rules window.
2. Select a receiver segment in the Receiver Chart of Accounts column.
3. Choose one of the following actions from the Action poplist:
- Not Assigned: This is the action assigned to most segments before rules are defined.
Select this action if you want to manually enter a segment value when the
transaction line is generated.
- Inherit From Receiver Company: The balancing segment is assigned the Inherit
From Receiver Company action and cannot be changed. No other segment can use
this action. Enter the sender's balancing segment in the Sender column or choose
from the list of values.
- Inherit From Sender Company: The intercompany segment is, if any, assigned the
Inherit From Sender Company action, but can be changed. No other segment can
use this action. Enter the sender's intercompany segment in the Sender column or
choose from the list of values.
Note: This action should only be defined for an intercompany segment when one of the
following is true:
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Chapter 7 - Page 28

The sender and receiver share the same chart of accounts, or


The sender's balancing segment values are identical to the receiver's intercompany
segment values.
- Copy Value: You can use this action if the receiver's segment values are identical to
the sender's for a given segment. This action copies the sender's segment value to
the receiver's account code combination for that segment. Select the sender's
corresponding segment in the Sender column or choose from the list of values.
- Assign Single Value: Use this action to assign a specific segment value to the
receiver's account code combination for that segment. You cannot select this action
for the natural account segment. Enter the segment value in the Sender column.
- Use Rules: Select this action to access the rules region below. You can associate a
receiver segment with transaction type, a sender and a sender segment value. See:
Detailed Receiver Clearing Account Rules.
4. Save your work.

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Global Intercompany System


Chapter 7 - Page 29

Detailed Receiver Clearing Account Rules

Detailed Receiver Clearing Account Rules


When you select Use Rules from the Action poplist, you can associate a receiver segment
value with a transaction type, a sender, a receiver, and a sender segment value.
Transaction Type: Enter or choose from the list of values.
Sender: Enter or choose from the list of values.
Receiver: Enter or choose from the list of values.
Sender Segment Value: Enter a value, choose from the list of values, or tab to choose
Other. The description is displayed in the Sender Segment Value Description field.
Receiver Segment Value: Enter a value or choose from the list of values. The segment
values available depends on the segment for which the rules are defined. The description
is displayed in the Receiver Segment Value Description field.
When GIS uses these rules to generate a receiver segment value, the program attempts to
match the fields in the Detailed Rules region in the following order: Transaction Type, Sender,
Receiver, Sender Segment Value.
For example, if two rules are defined as shown in the table above, GIS generates a receiver
segment value of 200 for a transaction with the transaction type Revenue Transfer, sender
Japan, receiver France, and a sender segment value 123.
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Chapter 7 - Page 30

Performing GIS Transactions

Performing GIS Transaction


Enter, update, approve or reject intercompany transactions from the same window. You can
also mark transactions to be deleted. After the transaction has been submitted the Status will
show review. The Transaction can be recalled and changed until it is approved. Once the
transaction has been reviewed, the status will reflect the subsidiaries choice of Approved or
Rejected. An approved transaction can only be reversed and a new transaction entered if
changes are needed.
Note: When creating an automatically approved transaction, you must enter the receiver's
intercompany transaction lines. The receiving subsidiary can not reject the transaction.
You can only delete a transaction with a status of New or Rejected. Recall a transaction with
the status of Review to change the status to New. The transaction will be deleted the next time
you run the Intercompany Transfer Program.

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Global Intercompany System


Chapter 7 - Page 31

Entering Intercompany Transactions

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Chapter 7 - Page 32

Entering Manual Transactions (Sender)

Entering Manual Transactions (Sender)


How to Enter an Intercompany Transaction
1. Select the General Ledger responsibility of the GIS subsidiary for which you want to
enter intercompany transactions.
Note: You can enter intercompany transactions for a subsidiary only if your system
administrator has set up access to the subsidiary for your responsibility.
You can submit transactions only for the subsidiary that is associated with your responsibility.
2. Open the Find Transactions window and select New. The Enter Intercompany
Transaction window appears and GIS automatically sets the status to New.
3. Optionally, enter a transaction number if you have not enabled automatic transaction
numbering. Each transaction number must be unique to the GIS system in which you are
entering the transaction.
4. Enter or select the receiver. This is the name of the GIS subsidiary that is the other party
to your intercompany transaction.
Note: GIS automatically enters your subsidiary name in the Sender field.
5. Enter the GL transaction date. The system automatically enters the appropriate period for
the sender and receiver.
6. Enter a transaction type or select one from the list of values.
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Chapter 7 - Page 33

7. Select Submit to send the intercompany transaction to the GIS system for approval. If
you are entering an automatically approved transaction, choose the Approve button.

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Chapter 7 - Page 34

Run Intercompany Transfer Program

Run Intercompany Transfer Program


Run the Intercompany Transfer program regularly to create journal entries out of the approved
transactions. This process should also be included in the period end accounting processes. Both
subsidiaries are required to run the Intercompany Transfer program to create journal entries in
their set of books.
Periodically, run the Delete Intercompany transaction program to remove any old approved
intercompany transactions that have already been downloaded to your set of books. The Delete
program had only one parameter: Cutoff Days. In the Cutoff Days field of the parameters
window, enter the number of days proceeding the current date for which transactions will be
retained. General Ledger deletes all approved intercompany transaction whose GL date is
earlier than the declared date minus the Cutoff Days. For example, if the current date is August
31 and you enter 62 in the Cutoff Days field, the system will delete all approved intercompany
transactions whose GL date is earlier than July 1.
If the intercompany transaction is in a currency different from the functional currency of your
General Ledger set of books, the transfer program automatically converts the transaction
amount to the functional currency. This is similar to a foreign currency journal entry. The
intercompany transaction is denominated in the originating foreign currency, but GIS creates
the converted equivalent to the functional currency of that subsidiary.
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Chapter 7 - Page 35

Intercompany Transactions Detail Report

Intercompany Transactions Detail Report


Parameters
When you request this report, General Ledger prompts you to enter the following:
- Subsidiary: Name of the subsidiary whose transactions you want to review. If you
have parent privileges, you can select ALL.
- Period Name: The period for which you want to review transactions.
- Status: The transaction status. You can enter New, Review, Approved, or Rejected.
- Account Low/High: The range of offset accounts whose transactions you want to
include in your report.

Copyright Oracle, 2009. All rights reserved.

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Chapter 7 - Page 36

Summary

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Chapter 7 - Page 37

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Chapter 7 - Page 38

Financial Budgeting
Chapter 8

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Financial Budgeting
Chapter 8 - Page 1

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Financial Budgeting
Chapter 8 - Page 2

Financial Budgeting

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Financial Budgeting
Chapter 8 - Page 3

Objectives

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Financial Budgeting
Chapter 8 - Page 4

Objectives

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Financial Budgeting
Chapter 8 - Page 5

What Is a Budget?

What Is a Budget?
Budgets help you manage your business by projecting revenues and expenses:
Estimate account balances for a specified range of periods
Compare estimated amounts with actual balances and determine variances

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Financial Budgeting
Chapter 8 - Page 6

What Is an Oracle Budget?

What Is an Oracle Budget?


For example, if you allocate total benefit costs to cost centers based on headcount, you can
budget headcount and total benefit costs, and let Oracle General Ledger created detailed cost
center budgets for you.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 7

Available Budget Methods

Available Budget Methods


Oracle General Ledger provides a variety of tools to create, maintain, and track your budgets:
Upload budget amounts from an Excel spreadsheet.
Create an unlimited number of budgets or forecasts.
Control user access to budgets.
Create budget organizations to mirror the levels of your company's organization and to
control user access to budget information.
Structure your budget into an unlimited number of levels.
Create master-detail budgets.
The following applications can be used:
- Manual budgets created in the Oracle General Ledger Application
- Uploaded budgets created in the Application Desktop Integrator's Budget Wizard
- Uploaded budgets created in Oracle Financial Analyzer
- Uploaded budgets from non Oracle systems or applications

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 8

Anatomy of a BudgetOverview

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Financial Budgeting
Chapter 8 - Page 9

Budget Accounting Cycle

Budget Accounting Cycle


Defining Budgets and Budget Organizations
Define budget periods, up to a maximum of sixty.
Define budget organizations at any level: cost center, division, sector, and so on. Control
access to budget data by assigning passwords to those organizations. Create subsequent
budget organizations quickly by copying existing budget organizations.
Entering Budgets
Enter budget data using standard entry, formula-based entry, and automatic allocations.
Enter budget amounts using annual spread, fixed amounts, and calculated methods.
Enter budget amounts using either an individual account or a worksheet-type screen
layout.
Transfer budget amounts from one account to another. You can transfer a fixed amount
or a percentage; you can transfer multiple periods at one time.
Reviewing and Correcting Budgets
Review budget amounts by period and account combination. Check for budget variances
and violations.
Perform online review of master/detail budgets. Compare summary balances between
master/detail budgets.
Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 10

Freezing Budgets
Freeze budgets to prevent further update to completed budgets.
Reporting on Budgets
Run standard or customized budget reports.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 11

Creating a Budget

Creating a Budget
1. In Oracle General Ledger, you create a budget by designating Amounts to a combination
of an Account and a Period.
2. Use the Define Budget window to specify the accounting periods that you want to include
in your budget.
3. Use the Define Budget Organization window to specify accounts by defining a budget
organization, then assigning appropriate accounts to that organization.

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Financial Budgeting
Chapter 8 - Page 12

Budget Definition Steps

Budget Definition Steps


1. Plan how to set up the budgets, e.g. top-down, bottom-up, middle-out.
2. Other decisions include whether or not you need Budgetary control and encumbrances,
multiple versions of a budget, multiple currency budgeting.
3. Next, create budgets. Define master and detail budgets.
4. Create budget organizations that contain unique ranges of accounts for each unit that
requires a budget.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 13

Budget Hierarchies

Budget Hierarchies
You can use the following methods to structure budgets:
Top-down budgeting: Enter budget amounts at the top level, then distribute to lower
levels.
Bottom-up budgeting: Enter budget amounts at lowest level, then inquire and report on
upper levels.
Middle-out budgeting: Enter budget amounts at lowest level, then inquire and report on
upper levels.

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Financial Budgeting
Chapter 8 - Page 14

Define a Budget

Define a Budget
Enter the budget Name and Description.
Enter the status of your budget.
- Open: The budget is available for update and budget entry.
- Current: The budget is open, and is the default budget for most budgeting and
inquiry forms.
- Frozen: The budget is unavailable for update or budget entry.
(Optional) Choose to create journals to maintain an audit trail.
Enter the First and Last periods of your budget. You can enter a range of up to 60
periods.

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Financial Budgeting
Chapter 8 - Page 15

Open Budget Year

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Financial Budgeting
Chapter 8 - Page 16

Master-Detail Budgets

Master-Detail Budgets
Budgeting hierarchies enable you to control budgeting authority, and easily identify budgets
that exceed control limits. They also allow you to perform top down budgeting and identify
where the discrepancies are.
Define master budgets using the Define Budget window
Enter a name and period range, then open the budget year.
Master budget organizations:
- The master budget organization should include only the accounts that represent
higher-level budgeting.
- If you have master budgets at different hierarchy levels, define a separate
organization for each level of master budgets.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 17

Budgets Using FSG Reports

Budgets Using FSG Reports


Note: You cannot reference reporting hierarchies in formulas, allocations, or online inquiries.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 18

Multiple Versions of a Budget

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 19

Practice - Define a Budget


Overview
In this practice you will define a budget for your Consulting group for the periods January
through December for the latest open year.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.

Replace XX with your initials.


Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

This practice is the foundation for subsequent practices in this eclass.

Task
Define a Budget
Define a budget for your Consulting group called XXCONSULTING for the periods January
through December for the latest open year.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 20

Solution - Define a Budget


Define a Budget
Responsibility = General Ledger, Vision Operations
1. Navigate to the Define Budgets form:
(N) Budgets > Define > Budget
2. Enter the following:

3.
4.
5.

Name

XXCONSULTING

Status

Open

First

Jan-YY (Use current year)

Last

Dec-YY (Use current year)

(B) Open Next Year.


(B) Yes in the Decision window.
(B) OK in the Note window.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 21

Practice - Define a Master/Detail Budget


Overview
In this practice you will define a Detail budget and linked it to the Master XXCONSULTING
budget created in the previous practice for the periods January through December for the latest
open year.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.


Replace XX with your initials.

Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Task
Define a Master/Detail Budget
Define a Detail budget called XXADMIN and link it to the Master XXCONSULTING budget
created in the previous practice for the periods January through December for the latest open
year.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 22

Solution - Define a Master/Detail Budget


Define a Master/Detail Budget
Responsibility = General Ledger, Vision Operations
1. Navigate the Define Budgets form:
(N) Budgets > Define > Budget
2. Enter the following:

3.
4.
5.

Name

XXADMIN

Status

Open

First

Jan-YY (Use current year)

Last

Dec-YY (Use current year)

Master Budger

XXCONSULTING (From the List of Values)

(B) Open Next Year.


(B) Yes in the Decision window.
(B) OK in the Note window.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 23

Define Budget Organizations

Define Budget Organizations


Budgeting hierarchies enable you to control budgeting authority, and easily identify
budgets that exceed control limits. They also allow you to perform top down budgeting
and identify where the discrepancies are.
Contain ranges of accounts that make up the budget.
Represent departments, cost centers, divisions, or other groups for which you enter and
maintain budget data.
Options:
- ALL budget organization
- Password to restrict access

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 24

Features of Budget Organizations

Features of Budget Organization


Inquire and report on data for a budget organization.
Freeze the budget for a budget organization, while still working on the data for other
budget organizations.
Set up security for a budget organization to restrict access.
Set up an ALL budget organization to include all account ranges.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 25

Budget Organization Window

Budget Organization Window


You can use the Define Budget Organization window to perform the AutoCopy, Ranges, and
Assignments actions as well as the following functions:
Delete: Choose Delete to launch the delete budget organization program for the current
organization. Note that you do not have to delete all account assignments from a budget
organization before deleting that budget organization.
Maintain: Choose Maintain to launch a concurrent process that adds newly created
account combinations or deletes recently disabled account combinations for a budget
organization.
Oracle General Ledger only assigns account combinations that fall within the account
ranges associated with a budget organization.
You can run this program periodically to remove disabled accounts or add new account
combinations.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 26

AutoCopy Budget Organizations

AutoCopy Budget Organizations


Open the Define Budget Organization window, and select the budget organization you
want to copy from.
Enter Segment Overrides to select the account segment values you want to change for the
new budget organization.
- You must designate at least one segment override because you cannot assign
identical accounts to multiple budget organizations.
Enter the Override Segment Value next to the segment(s) you wish to override.
- For example, if you want to copy the accounts in CC #100 (the source budget
organization) to CC #300, enter the value 300 as the CC segment override. Oracle
General Ledger will then copy all of the account ranges for cost center #100, but
will change all CC values to 300.
- If you specify a segment override for a dependent segment, you must enter an
override segment for the segments on which it depends.
When you save your work, a concurrent process is automatically submitted.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 27

Assign Account Ranges

Assign Account Ranges


Enter the Account Ranges: The ranges cannot overlap other account ranges with the same
currency for any budget organization in that set of books.
Select the budget entry type for each range.
- Use "Entered" to enter budget amounts and journals, upload budgets, or transfer
budget amounts.
- Use "Calculated" to enter budget formulas or use MassBudget journals to enter
budget amounts.
Enter the Currency for each account range.
- If you selected the "Entered" budget entry type, you can enter any enabled currency.
- If you selected the "Calculated" budget entry type, you must enter the functional
currency for your set of books or STAT.
Save your work. A concurrent process is automatically submitted to search the GL
combinations table for existing code combinations within the range specified. Wait for
the process to finish before entering specific accounts.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 28

Add/Change Account Ranges

Changing Account Ranges


Navigate to the Range Assignments window.
Change the account ranges.
- Specific accounts must be within the designated account range.
- Existing combinations within the range will be automatically added to an
organization.
- New combinations must be added in the Range Assignments window.
When you save your work, the Maintain Budget Organization program is run.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 29

Remove Account Ranges

Removing Account Ranges


Navigate to the Range Assignments window.
- To remove an account temporarily, delete its row. The range will still exist for
temporarily deleted accounts. It will be recreated when the Maintain Budget
Organization program is run.
- To delete accounts permanently, open the Account Ranges window and delete the
range that includes the accounts you want to delete.
When you save your work, the Maintain Budget Organization program is run.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 30

Delete a Budget Organization

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 31

Practice - Define a Budget Organization


Overview
In this practice you will create a budget organization to associate with the XXCONSULTING
budget.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.

Replace XX with your initials or unique two digit numbers.


Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

This practice is the foundation for subsequent practices in this class.

If using the Oracle Application Vision database, it is necessary to delete the ALL and
Operations organizations before completing this practice.

Tasks
Define a Budget Organization
1. Define a budget organization called XXUSSALES.
2. Define the following account ranges:
Line

Low

High

Type

Currency

10

01-420-7120-21XX-000

01-420-7740-21XX000

Entered

USD

20

01-410-9110-21XX-000

01-430-9110-21XX000

Entered

STAT

30

01-000-5800-21XX-000

01-420-5800-21XX000

Calculate
d

USD

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Financial Budgeting
Chapter 8 - Page 32

3.

Assign the following new accounts:


Account Number
01-420-7120-21XX-000
01-420-7640-21XX-000
01-420-7650-21XX-000
01-420-7740-21XX-000
01-410-5800-21XX-000
01-420-5800-21XX-000
01-000-5800-21XX-000

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 33

Solution - Define a Budget Organization


Define a Budget Organization
Responsibility = General Ledger, Vision Operations
1. Navigate the Define Budget Organizations form:
(N) Budgets > Define > Organization
2. Enter the following:
Name = XXUSSALES
Description = US Sales
Display Sequence:
Segment

Seq

Company

Department

Account

Sub-Account

Product

Define Account Ranges


3. (B) Ranges.
4. Enter the following information:
Line

Low

High
Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 34

Type

Currency

10

01-420-7120-21XX-000

01-420-7740-21XX-000

Entered

USD

20

01-410-9110-21XX-000

01-430-9110-21XX-000

Entered

STAT

30

01-000-5800-21XX-000

01-420-5800-21XX-000

Calculated

USD

5.

Save.

6.
7.

(B) OK in the Note window.


Verify that the process has completed:
(M) View > Requests
(B) Find

Assign New Accounts


8. Navigate back to the Define Budget Organizations form"
(N) Budgets > Define > Organization
9. Query your budget organization:
(I) Flashlight
11. (B) Ranges.
12. Place your cursor in the Line 10 field.
13. (B) Range Assignments.
14. Enter the following accounts:
Account Number
01-420-7120-21XX-000
01-420-7640-21XX-000
01-420-7650-21XX-000
01-420-7740-21XX-000
15. Save.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 35

16.
17.
18.
19.

Close the Account Assignments window.


Place cursor in Line 20 field.
(B) Range Assignments.
Enter the following accounts:
Account Number
01-410-9110-21XX-000
01-420-9110-21XX-000
01-430-9110-21XX-000

20. Save.

21.
22.
23.
24.

Close the Account Assignments window.


Place cursor in Line 30 field.
(B) Range Assignments.
Enter the following accounts:
Account Number
01-410-5800-21XX-000
01-420-5800-21XX-000
Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 36

01-000-5800-21XX-000
25. Save.

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Financial Budgeting
Chapter 8 - Page 37

Budget Entry Methods

Budget Entry Methods


Enter Budget Amounts
Use a quick, manual approach for adjustments; use budget rules to base amounts on prior
actuals or budgets.
Enter Budget Journals
Create an audit trail of amounts entered.
Use the Desktop Integrator Budget Wizard
Create a new budget in an Excel spreadsheet or download an existing budget to an Excel
spreadsheet for modification, then upload the revised budget to Oracle General Ledger.
Upload Budgets
Upload budget data from an external source.
Create Budget Formulas
Create standard or formula recurring entries.
Use for complex allocations.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 38

Create MassBudget Journals


Quickly create budget allocation entries from a single formula to match your actual
allocations.
Transfer Budget Amounts
Transfer fixed amounts or a portion of a budget balance from one account to another.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 39

Journals Created?

Journals Created?
When you define a budget, you choose whether to require budget journals for your budget. If
you enabled the Require Budget Journals flag for your set of books, this option will already be
selected and cannot be changed.
When you require budget journals, you can only use budget entry methods that create journals,
namely budget journals, MassBudgets, budget transfers, consolidation of budget balances, and
the Applications Desktop Integrator's Journal Wizard.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 40

Budget Entry Modes

Budget Entry Mode


Enter budget amounts to replace any existing budget balances.
You can:
Use Single Row Mode to enter budget amounts for each account in the budget
organization one-by-one.
Use Worksheet Mode to enter budgets for several accounts at once.
Use budget rules to distribute budget amounts for all periods.
Enter statistical budget amounts.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 41

Entering Budget Amounts

Entering Budget Amounts


You can apply budget rules for up to 13 periods at a time; if your calendar contains more than
13 periods, each year is automatically divided into several period ranges.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 42

Budget Rules

Budget Rules
Divide Evenly: Evenly distribute the amount you enter across all accounting periods. You
can set rounding options to handle any undistributed amount resulting from rounding
calculations.
Repeat Per period: Repeat the amount you enter in each accounting period.
Prior Year Budget Monetary* and Prior Year Budget Statistical*: Multiply the amount
you enter by the prior year budget balance.
Current Year Budget Monetary* and Current Year Budget Statistical*: Multiply the
amount you enter by the current year budget balance.
Prior Year Actual Monetary* and Current Year Budget Statistical*: Multiply the amount
you enter by the prior year actual balance.
Current Year Actual Monetary* and Current Year Actual Statistical*: Multiply the
amount you enter by the current year actual balance.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 43

Budget Rules and Your Calendar

Budget Rules and Your Calendar


If your calendar uses 12 or 13 periods per year, you can set rounding options to handle any
undistributed amount resulting from rounding calculations. Use a 4/5/5, a 4/5/4, or a 5/4/4
configuration for spreading amounts throughout each quarter.
Set rounding options to handle differences resulting from amounts that cannot be divided
evenly.
You can specify these rounding options:
Ignore rounding errors
Post the rounding differences to a specific budget period

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 44

Budget Journals Process

Budget Journals Process


Enter accounts and amounts in budget journals.
Run Journal Import to create unposted journals based on the accounts and amounts you
entered.
Post the journals created to update budget balances.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 45

Entering Budget Journals

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 46

Budget Journal Features

Entering Budget Journals


Use budget rules to calculate budget journal amounts.
Enter statistical budget journals for accounts that are assigned a currency of STAT.
Review and change your budget journals before posting them.
Post the journal amounts to update existing budget balances

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 47

Calculating and Translating Budget Amounts

Calculating and Translating Budget Amounts


Oracle budgets can be set up to calculate the same way actuals are calculated.
For example, if you allocate total benefit costs to cost centers based on headcount, you can
budget headcount and total benefit costs, and let Oracle General Ledger created detailed cost
center budgets for you.
Oracle budget balances can be translated to create budget versus actual reports in reporting
currencies.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 48

Budget Translation Overview

Budget Translation Overview


(N) Currency > Translation
Use the Translate Balances window to translate your budget account balances from your
functional currency to another currency.
Enter the Source budget whose account balances you want to translate
Ensure that the budget year containing the period you are translating is open in your
source budget
Enter the Target budget that you want to calculate translated account balances for (you
can translate one source into one or more target budgets)
You should not translate more than one source budget into the same target budget for the
same period and currency, because each source budget translation overrides the balances
in the target budget.
If you use MRC, budget amounts and budget journals are not converted to the reporting
currencies.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 49

Practice - Enter Budget Amounts


Overview
In this practice you will use budget rules to enter amounts for your budget.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.

Replace XX with your initials or unique two digit numbers.


Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Task
Enter Budget Amounts
Responsibility = General Ledger, Vision Operations
Enter budget amounts for your XXCONSULTING Budget and XXUSSALES Budget
Organization for the current year using the following information:
Description

Account

Budget Amount

Headcount

01-420-9110-21XX-000

40 persons per month

Misc. Expense

01-420-7740-21XX-000

$100 per person per month (budgeted


headcount)

Airfare Expense

01-420-7640-21XX-000

$96000 per year divided evenly over each


period.

Car Rental Expense

01-420-7650-21XX-000

6% of budgeted airfare.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 50

Solution Enter Budget Amounts


Rule: Repeat Per Period
1. Navigate to the Enter Budget Amounts form:
(N) Budgets > Enter > Amounts
2. Use the data in the following table for the top part of the form:
Budget Organization

XXUSSALES

Budget

XXCONSULTING

Currency

STAT

Period From

Jan of the current


year

Period To

Dec of the current


year

3.

In the Account field of the Worksheet Mode tab, select Account 01-420-9110-21XX-000 in
the Find Account Window.

4.
5.
6.
7.

(B) Budget Rules


Select Rule Repeat per Period.
Enter the amount of 40.
(B) OK

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Financial Budgeting
Chapter 8 - Page 51

8. (B) Post.
9. (B) Yes in the Decision window.
10. (B) OK in the Note window.
Posting takes a few minutes.
11. Verify that the process has completed:
(M) View > Requests (B) Find
Rule: Current Year Budget Stat*
12. Open the Enter Budget Amounts form:
(N) Budgets > Enter > Amounts
13. Enter the following data:
Budget Organization XXUSSALES
Budget

XXCONSULTING

Period From

Jan of the current year

Period To

Dec of the current year

Currency

USD

14.
15.
16.
17.
18.

Select Account 01-420-7740-21XX-000 in the Find Accounts window.


(B) Budget Rules.
Select Rule Current Year Budget Stat*.
Enter the amount of 100.
Enter the account of 01-420-9110-21XX-000.
You are using the budget balance in the STAT account. That balance should be 40.
Current Year Budget Stat*100 = 4000.
19. (B) OK

20. (B) Post


21. (B) Yes in the Decision window.
22. (B) OK in the Note window.
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Financial Budgeting
Chapter 8 - Page 52

Posting takes a few minutes.


23. Verify that the process has completed:
(M) View > Requests (B) Find
Rule: Divide Evenly
24. Navigate to the Enter Budget Amounts form:
(N) Budgets > Enter > Amounts
25. Enter Budget Organization = XXUSSALES And Budget = XXCONSULTING.
26. Enter Currency of USD.
27. Enter Accounting Periods From Jan to Dec of the Current Year.
28. Select Account 01-420-7640-21XX-000 in Find Accounts window.
29. (B) Budget Rules
30. Select Rule Divide Evenly.
31. Enter the amount of 96000.
32. (B) OK

33. (B) Post


34. (B) Yes in the Decision window.
35. (B) OK in the Note window.
Posting takes a few minutes. Check the Requests window to monitor the status of the
process.
Rule: Current Year Budget Monetary*
36. Navigate to the Enter Budget Amounts form:
(N) Budgets > Enter > Amounts
37. Enter Budget Organization = XXUSSALES And Budget = XXCONSULTING.
38. Eater Currency of USD.
39. Enter Accounting Periods From Jan to Dec of the Current Year.
40. Select Account 01-420-7650-21XX-000.
41. (B) Budget Rules.
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Financial Budgeting
Chapter 8 - Page 53

42.
43.
44.
45.

Select Rule Current Year Budget Monetary*.


Select the amount of .06.
Enter account of 01-420-7640-21XX-000.
(B) OK

46. (B) Post


47. (B) Yes in the Decision window.
48. (B) OK in the Note window.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 54

Practice - Enter a Budget Journal


Overview
In this practice you will enter a budget journal to adjust the Airfare Expense amount you entered
in the prior practice.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.

Replace XX with your initials or unique two digit numbers.


Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

This practice is the foundation for subsequent practices in this eclass.

Task
Enter Budget Journals
Enter budget journals:
The amounts for January and March need to be adjusted for the Airfare Expense
account (01-420-7640-21XX-000).
January should be $4000 and March should be $12000.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 55

Solution Enter a Budget Journal


Enter Budget Journals
Responsibility = General Ledger, Vision Operations
1. Navigate to the Enter Journals window:
(N) Budgets > Enter > Journals
2. Enter your Budget Organization, XXUSSALES.
3. Enter your Budget, XXCONSULTING.
4. Enter Accounting Periods from Jan to Dec of the Current Year.
5. Enter Account 01-420-7640-21XX-000.
6. (T) Journal Mode
7. Enter Jan-Current Year Debit amount of 4000.
8. Enter Mar-Current Year Debit amount of 12000.

9. (B) Create Journals.


10. Enter Journal Batch name of XX AIRFARE BUDGET.
11. Enter Journal Category of Adjustment.

12. (B) Run Journal Import.


13. (B) Yes.
14. (B) OK.
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Financial Budgeting
Chapter 8 - Page 56

15. (B) Done.


16. Navigate to the Enter Journals window:
Journals > Enter
17. Enter XX%.
18. (B) Find.

Note: There are two journals created, one for the period of Jan and one for March.
19. (B) Review Journal.

The journal is one sided. Oracle will post this journal without the debits and credits being
equal because the Balance Type is B for Budget.
20. (B) More Actions.
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Financial Budgeting
Chapter 8 - Page 57

21. (B) Post.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 58

Transfer Budget Overview

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 59

Transfer Budget Process

Transfer Budget Amounts


You can transfer budget amounts from one account to another within any budget
The accounts may belong to the same or different budget organizations
You can transfer fixed amounts or a percentage of an account's balance
When you leave the Budget Transfer window, Oracle General Ledger automatically runs
Journal Import to create an unposted budget journal batch
To update your budget balances, post the budget journal batch

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 60

Transfer Budget Amounts Example

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 61

Transfer Budget Percentage Example

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 62

Transfer with Budgetary Control

Transfer with Budgetary Control


Budgetary control refers to the process of recording budget data and tracking
encumbrance and actual data against a budget. You can track budget or encumbrance data
using one of two methods: encumbrance accounting or budgetary accounts.
Funds checking is the feature of budgetary control that helps prevent overspending
budgets by verifying available funds online before processing a transaction. With funds
checking, you can verify transactions online against available budget, immediately update
funds available for approved transactions, and control expenditures at the detail or
summary level.
If you use funds checking, you must use either encumbrance accounting or the budgetary
accounts method of tracking budget data.
Additional Steps with Budgetary Control
- Choose the Check Funds button to verify available funds for your budget journal
batch.
- Choose the Reserve Funds button to reserve funds for your budget journal batch.
- Review the Funds Status for your batch:
- Choose View Results to review the budgetary control transactions resulting from
your funds action request.
Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 63

Leave the window. General Ledger automatically runs the Create Journals program
to create an approved budget journal after a successful funds reservation.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 64

Practice - Transfer Budget Amounts


Overview
In this practice you will enter transfer various expense between accounts within your budget.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.

Replace XX with your initials or unique two digit numbers.


Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

This practice is the foundation for subsequent practices in this eclass.

Tasks
Transfer Budget Amounts
In this practice you will enter transfer various expense between accounts within your
XXUSSALES Budget Organization and XXCONSULTING Budget for Dec of the current year.
1. Transfer $3000 from the Car Rental expense account, 01-420-7650-21XX-000, to the
Miscellaneous expense account, 01-420-7740-21XX-000 for Dec of the current year.
2. Transfer 25% from the Airfare expense account, 01-420-7640-21XX-000, to the
Miscellaneous expense account, 01-420-7740-21XX-000 for Dec of the current year.
3. Review and post the journal entries that were created.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 65

Solution Transfer Budget Amounts


Transfer by Fixed Amount
Responsibility = General Ledger, Vision Operations
1. Navigate to the Transfer Amounts form:
(N) Budgets > Enter > Transfer
2. Enter the following:

3.
4.
5.
6.

Budget

XXCONSULTING

Batch Name

XXTRANSFER

From Budget Organization

XXUSSALES

From Account

01-420-7650-21XX-000

To Budget Organization

XXUSSALES

To Account

01-420-7740-21XX-000

(B) Transfer Amounts.


Enter Period of Dec-Current Year.
Enter Amount of 3000.
(B) Save.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 66

7.
8.

Close the Transfer Amounts window.


(B) OK.

Transfer a Percentage
9. (M) File > New
10. Enter the following:
From Budget Organization

XXUSSALES

From Account

01-420-7640-21XX-000

To Budget Organization

XXUSSALES

To Account

01-420-7740-21XX-000

11. (B) Transfer Amounts.


12. Enter Period of Dec-Current Year.
13. Enter a % of 25.
You do not need to enter the decimal point.
14. (I) Save.
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Financial Budgeting
Chapter 8 - Page 67

15. Close the Transfer Amounts and Budget Transfer windows.


16. (B) OK.
17. Verify that the process has completed:
(M) View > Requests (B) Find
Review and Post the Journal Entries
18. Navigate to the Enter Journals window:
(N) Journals > Enter
19. Enter Batch Name = XX%.
20. (B) Find.

21. (B) Review Journal.


Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 68

22. (B) More Actions.


23. (B) Post.
24. (B) OK.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 69

Finalize Budgets

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 70

Correcting Budgets

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 71

Budget Journal Entries?

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 72

No Budget Journal Entries?

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 73

Freeze Budgets

Freeze Budgets
Use the Freeze Budget window to freeze a budget, budget organization, budget formula batch,
or range of budget account combinations to prevent accidental or unauthorized changes
You can also freeze or unfreeze an entire budget by changing the budget status in the
Define Budget window
You can unfreeze any budget or budget element that is currently frozen
When you freeze budget organizations, you cannot budget to the account combinations
belonging to that budget organization for the budget specified.
When you freeze formulas or ranges of account combinations, you cannot use those
formulas or budget to those account combinations for the budget specified.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 74

Practice - Freeze a Budget


Overview
In this practice you will freeze your XXCONSULTING budget and XXUSSALES Organization to
prevent further changes.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.

Replace XX with your initials.


Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Task
Freeze a Budget
In this practice you will freeze your XXCONSULTING budget and XXUSSALES Organization to
prevent further changes.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 75

Solution Freeze a Budget


Freeze a Budget
Responsibility = General Ledger, Vision Operations
1. Navigate the Freeze Budget form:
(N) Budgets > Freeze
2. Enter the Name XXCONSULTING.
3. Select the Status of Frozen from the List of Values.

4.
5.
6.
7.

(B) OK
(T) Organization
Check the Frozen box for your XXUSSALES organization.
(I) Save.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 76

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 77

Budget Inquiry Overview

Budget Inquiry Overview


You can review your budget data online with these two methods:
Account Inquiry
Use this method when you want to view specific account balances
Budget Inquiry
Use this method when you want to review master and detail budgets

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 78

Performing Account Inquiry

Performing Account Inquiry


(N) Inquiry > Account
Use the account inquiry feature to view actual, budget, and encumbrance account balances for
a specific period or periods in either entered or translated currencies.
You can select one of three buttons to access the type of account information you want to view:
Show Balances: Displays PTD and YTD account balances by period for both detail and
summary accounts.
Show Journal Details: Lists all the journal batches and entries that affect the account
balance. From here you can drill down to the full journal entry and subledger transaction.
Show Variance: Displays actual vs. budget or encumbrance amounts and the variance for
PTD, QTD, YTD, and PJTD (project-to-date) time periods. Variance goes from
Summary to Detail to Journal Details.
Note: The Account Inquiry window displays balances from posted budget journal entries and
entered budget amounts. To get the most up-to-date account balance information, be sure all
budget journal entries are posted. Drill down from an account inquiry to review your budget
journal detail (only if budget amount was entered using a budget journal).

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 79

Reviewing Variances Between Account Balance Types

Reviewing Variances Between Account Balance Types


(N) Inquiry > Account > (B) Show Variance
You can compare balances between any primary and secondary account type, such as:
- Actual and budget
- Budget and budget
- Actual and encumbrance
You must specify a primary and secondary balance type and select a budget or
encumbrance type in order to compare balance amounts.
Note: You cannot include variances in your Account Inquiry if you choose to inquire on all
currencies.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 80

Budget Inquiry Window

Budget Inquiry Window


When you perform an inquiry on a master budget, you can choose any of these Inquiry Types:
Drilldown this Budget
- View master budgets, then drill down to the detail accounts
Query Detail Budgets
- View master and detail budgets together, then drill down to the detail accounts
Query Budget Violations Only
- View only those periods for which the sum of the detail budget balances exceeds
the master budget balance
When you perform an inquiry on a detail budget, you can choose only the Drilldown this
Budget Inquiry Type, and then drill down to the detail accounts.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 81

Drilldown This Budget

Drilldown This Budget


Must enter Summary Accounts or use Summary account templates to start finding
balances.
Can be done on all budgets.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 82

Query Detail Budgets and Violations Only

Query Detail Budgets and Violations Only


Query Detail Budgets only works on Master budgets
Query Budget Violations Only
- Only works on Master budgets
- Review only those periods for which the sum of the detail budget balances exceeds
the master budget balance.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 83

Practice - Inquiry on Budget Accounts


Overview
In this practice you will inquiry on amounts you entered into your XXCONSULTING Budget
Budget for the periods of Jan to Dec of the current year.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.

Replace XX with your initials or unique two digit numbers.


Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Inquiry on Budget Accounts
1. Perform an inquiry on budget amounts in account number 01-420-7740-21XX-000.
2. Drilldown into your transfer budget journal.
3. View the transfer budget journal in T-Account and Activity Summary format.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 84

Solution Inquiry on Budget Accounts


Inquiry on Budget Amounts
Responsibility = General Ledger, Vision Operations
1. Open the Account Inquiry window:
(N) Inquiry > Account
2. Enter Jan to Dec of the current year.
3. In the Primary Balance Type, select Budget
4. Enter your XX Consulting Budget in the Budget field.
5. Enter 01-420-7740-21XX-000 in the Accounts region.

6.

(B) Show Balances

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 85

Drilldown to Journals
7. Place your cursor on Dec-Current Year.
8. (B)Journal Details

9.

(B) Show Full Journal

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 86

View Journal in T-Account and Activity Summary Format


10. Place your cursor on journal line 1.
(M) Tools > T Accounts

The Options window opens.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 87

11. View your T Account information for this journal entry.


(B) T Accounts

12. View the Activity Summary information for this journal entry.
(B) Activity Summary

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 88

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 89

Practice - Perform Master Budget Inquiry


Overview
In this practice you will inquiry on your Master Budget XXCONSULTING.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.

Replace XX with your initials or unique two digit numbers.


Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Task
Inquiry on Budget Accounts
Perform an inquiry on the salary account in your Master Budget XXCONSULTING.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 90

Solution Perform Master Budget Inquiry


Perform Master Budget Inquiry
Responsibility = General Ledger, Vision Operations
1. Open the Budget Inquiry window:
(N) Inquiry > Budget
2. Enter Budget XXCONSULTING.
3. Select Inquiry Type Drilldown this Budget.
4. Select the Total Expense, Detail Activity and Fund Summary account.
5. Select the first account 01-T-5000-T-000.

6.

Select (B) Show Balances button.

7.

Select (B) Detail Accounts button.


Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 91

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 92

Two WizardsOverview

Two WizardsOverview
ADI includes the Budget Wizard and Journal Wizard to simplify your budgeting work with
Oracle General Ledger.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 93

Budget Wizard: Overview

Budget Wizard: Overview


Use the Budget Wizard within Oracle General Ledger's Desktop Integrator to automatically
build a budget spreadsheet based on the budgets and budget organizations you set up within
Oracle General Ledger.
The Budget Wizard provides an Excel spreadsheet-based budget entry screen which facilitates
simple data entry and modeling in a disconnected environment.
With the Budget Wizard, you can
Download existing budget balances from Oracle General Ledger or create a new budget.
Enter your new budget balances manually, use budget rules, or use formulas and models.
Automatically graph your budgets and compare budget and actual balances using a
variety of graph styles.
Save a budget spreadsheet on your PC and work on it at any time, including using it for
future years.
When you are satisfied with your budget, you can automatically upload your new budget
balances into Oracle General Ledger.

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Financial Budgeting
Chapter 8 - Page 94

Budget Wizard Key Benefits

Budget Wizard Key Benefits


Eliminates double maintenance by combining a spreadsheet with the budget elements that
you define in Oracle General Ledger.
Automatically calculates your budget amounts using any type of formula.
Provides a clear picture of how your budget and actual amounts compare for a wide range
of accounts.
Allows you to justify or explain your budget using budget notes; no external
documentation or paperwork is required.

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Financial Budgeting
Chapter 8 - Page 95

Tools to Update Budget Balances

Tools to Update Budget Balances


You can update budget balances in the budget worksheet by using Excel's functionality or
Oracle General Ledger's sophisticated budgeting tools.
Type over existing amounts.
Copy and paste values and calculations.
Use budget rules, formulas, and models.
Updating Budget Balances Using Oracle General Ledger's Budget Rules
Select a range of cells in the worksheet to apply the budget rules.
Choose Apply Budget Rule from the GLDI toolbar.
Select a budget rule, then enter an amount.
- Divide Evenly by Row: Divides the amount across each selected row.
- Divide Evenly by Cell: Divides the amount into all of the selected cells.
- Repeat per Cell: Repeats the amount in each cell selected.
- Multiply Each Cell by a Factor: Multiplies the value in each cell by the entered
amount.
Choose OK to apply the budget rule.
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Financial Budgeting
Chapter 8 - Page 96

Entering Data

Entering Data
When entering data, you can use the list of values feature to help you select a valid value.
Double-click in any one of the fields that contains the word List, such as Category, or click the
List of Values icon on your toolbar.
Note: Your toolbar must be invoked in order to use the double-clicking feature.
Marking the Upload Column
Use the Upload (UPL) column to mark rows for upload.
When you enter a journal or budget line directly or use the list of values, the column is
populated.
If you copy and paste a journal line, ADI does not place a flag character in the upload
column for your new journal line. To mark a column for upload, type any character on
your keyboard in the upload column cell for the journal line.
Note: When you start the upload process, you can choose to upload only flagged rows.
Entering Flexfield Combinations
You can enter flexfield combinations by one of the following methods:
- Type in directly
- Using the list of values
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Financial Budgeting
Chapter 8 - Page 97

- Using account aliases


Cross Validation Rules
When you use the list of values, all segment values and combinations are validated. If
you have the profile option Flexfields: Validate On Server set to Yes, any combinations
that were entered directly are cross-validated during upload instead of import. This forces
the user to correct the journal entry before it reaches the interface table.
If you enter a value directly, without using the list of values, the validation takes place
when you import, not when you enter data.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 98

Audit Trail Implications

Audit Trail Implications


When you use the Budget Wizard, Oracle General Ledger does not create an audit trail.
When you use the Journal Wizard, Oracle General Ledger does create an audit trail.
Instead of this Oracle General Ledger Window:
Use ADI
Budget Wizard
Journal Wizard

In GL
= Enter Budget Amounts window
= Enter Budget Journals window

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Financial Budgeting
Chapter 8 - Page 99

Creating Graphs

Creating Graphs
Note: Since you can transfer both actual and budget values from Oracle General Ledger to
Excel, you can also plot both values on your graph.
View balances as area charts, bar graphs, column graphs, line graphs, or pie charts.
Budget Wizard uses the column headings and row labels from your budget worksheet as
labels in your graph.
The appearance of the graph depends on your budget worksheet parameters as well as the
default settings that you defined for graphs.
There is a limit of 26 graphs for any one budget worksheet.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 100

Practice - Enter Budget Amounts with ADI


Overview
In this practice you will enter amounts in the HR & Administration budget organization for the
Corporate 2001 Budget for the periods January through December 2001.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.

Replace XX with your initials.


Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Enter Budget Amounts with ADI
1. Sign on to ADI.
2. Create a Budget Worksheet.
3. Apply Budget Rules.
4. Load the Budget.
5. Run the Trial Balance - Budget report.

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Financial Budgeting
Chapter 8 - Page 101

Solution Enter Budget Amounts with ADI


Enter Budget Amounts with ADI
Responsibility = General Ledger, Vision Operations
Sign on to ADI
1. Start ADI using the following navigation path:
(B) Start > Programs > Oracle ADI > Applications Desktop Integrator
2. To log in select the Sign On icon (the Hand).

3.

Enter the following:


Userid = XXUSER

4.

Password = XXUSER
Responsibility = General Ledger, Vision Operations
Select the OK (Green Checkmark).

Create a Budget Worksheet


5. Choose the Ledger Icon from the toolbar.
6. Select the Enter Budgets option.

7.
8.
9.

Select the Organization HR & Administration.


Select (B) Limit Accounts button.
Enter Department 830.
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Financial Budgeting
Chapter 8 - Page 102

10. Select OK.


11. Select (B) Set Characteristics button.
12. Select the Show Description check box for Account and Department.

13. Select OK.


14. In the Budget field, select the Corporate 2001 budget.
The Currency and Period Range will default.
15. Select New for the Workbook.
16. Select Budgets Only.

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Financial Budgeting
Chapter 8 - Page 103

17. Select OK.


ADI builds your budget worksheet.
Apply Budget Rules
18. Highlight the cells from January through December that correspond to Department 830 and
account 7650.
19. Select the Ledger icon
20. Choose the Apply Budget Rule.

.
21. Select the rule Repeat per Cell.
22. Enter the amount 4200.
23. Click OK.

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Financial Budgeting
Chapter 8 - Page 104

24. Highlight the cells from January through December that correspond to Department 830 and
account 7450.
25. Select the Ledger icon.
26. Choose Apply Budget Rule.
27. Select the Rule Divide Evenly by Row.
28. Enter the amount 25800.
29. Click OK.

30. Highlight the cells January through June that correspond to Department 830 and account
7120.
31. Select the Ledger icon.
32. Choose Apply Budget Rule.
33. Select the rule Repeat per Cell.
34. Enter the amount 1800.
35. Highlight the cells July through December.
36. Select the rule Repeat per Cell.
37. Enter the amount 1900.
38. Click OK.

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Financial Budgeting
Chapter 8 - Page 105

Load the Budget


39. Select the Ledger icon.
40. Choose the Upload to Interface.

41. Accept all defaults and select OK.

42. Acknowledge the Budget Upload message by clicking (B) OK button.

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Financial Budgeting
Chapter 8 - Page 106

Run the Trial Balance - Budget Report


43. Select the Request Center on the Start bar.
44. Select the first icon, the (B) Green button.

45. Enter the following:


Report Trial Balance - Budget
From Period Jan-01
To Period Dec-01.
Currency Type Entered.
Currency = USD

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Financial Budgeting
Chapter 8 - Page 107

46. Answer YES in the Decision box.

The report appears.

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Financial Budgeting
Chapter 8 - Page 108

Budget Reporting Methods

Budget Reporting Methods


Standard Reports
Application Desktop Integrator
Financial Statement Generator Reports

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Financial Budgeting
Chapter 8 - Page 109

Three Major Budget Reports

Three Major Budget Reports


Review your budgets by using these standard reports and listings:
Budget Organization Listing
- Reviews the details of a specific budget organization
Budget Organization Range Listing
- Reviews the details of the account ranges assigned to a specific budget organization
Budget Trial Balance
- Reviews your general ledger budget account balances and activity for a specific
currency

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Financial Budgeting
Chapter 8 - Page 110

Other Standard Reports

Other Standard Reports


Oracle General Ledger also provides other reports that you can use to review your budget data:
Frozen Budget Accounts Listing
Unbudgeted Master/Detail Accounts
Budget Journals by Flexfield
Budgetary Control Transactions
Funds Available Analysis
Budget Hierarchy Listing
- Lists master/detail budget relationships.
Master/Detail Budget Report
- Compares budgeted amounts between master and detail budgets.
- Highlights exceptions when detail budgets exceed their master budgets.
Summary/Detail Budget Report
- Lists the transactions in the detail budget for which there are no corresponding
budgeted amounts in the master budget.
Budget Organization Range Listing
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Financial Budgeting
Chapter 8 - Page 111

Lists details including budgetary control options of budget organizations by account


range.

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Financial Budgeting
Chapter 8 - Page 112

Financial Statement Generator

Financial Statement Generator


You can also use the Financial Statement Generator to run customized and ad hoc reports to
review your budget data.
You can:
Include budgets, encumbrance types, and currencies in a report
Compare budget balances against actual balances
For more information on this topic see 11i General Ledger Management Fundamentals
Financial Reporting.

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Financial Budgeting
Chapter 8 - Page 113

Application Desktop Integrator

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Financial Budgeting
Chapter 8 - Page 114

Practice - Review a Budget Report


Overview
In this practice you will run and review a Standard Budget Report.

Assumptions

Use General Ledger Application, Version 11.5.6 or above.

Replace XX with your initials.


Use General Ledger, Vision Operations (USA) or comparable Super User General
Ledger responsibility.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Define a Budget
1. Run the Budget Master Detail Budget Standard report for your Master Budget
XXCONSULTING for December of the current year.
2. Review the results of the report.

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Financial Budgeting
Chapter 8 - Page 115

Solution Review a Budget Report


Run a Standard Budget Report
Responsibility = General Ledger, Vision Operations
1. Navigate the Submit Requests form:
(N) Other > Reports > Run (B) Single Request (B) OK
2. Select Budget Master/Detail in the Name.
3. Enter the following parameters:
Master Budget = KWCONSULTING
Amount Type = PTD
Currency = USD
Period = Dec-03

4.
5.
6.

(B) OK.
(B) Submit.
(B) No.

Review the Report


7. Navigate the Requests form:
(M) View > Requests
(B) Find

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Financial Budgeting
Chapter 8 - Page 116

8.

(B) View Output.

If any amounts had been budgeted to our Detail Budget XXADMIN they would show on
this report.

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Financial Budgeting
Chapter 8 - Page 117

Planning Your Budget Requirements

Planning Your Budget Requirements


To successfully implement Oracle Budgeting, you should analyze how your organization will
define and use budgets, budget organizations, and budgeting methods. Required decisions
include:
Whether or not you need the audit trail that budget journals provide
Whether you require a balance sheet budget
Whether you will budget in a centralized or a distributed mode (next slide)
Whether you will need additional budgets for re-forecasting or "what-if" scenarios
Whether you will budget using Budget Wizard, other spreadsheets, or budget directly into
Oracle General Ledger

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Financial Budgeting
Chapter 8 - Page 118

Centralized or Distributed

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Financial Budgeting
Chapter 8 - Page 119

Forecasting and What-if Scenarios

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Financial Budgeting
Chapter 8 - Page 120

Budget Entry Methods?

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Financial Budgeting
Chapter 8 - Page 121

Budget Compatibility Across Sets of Books

Budget Compatibility Across Sets of Books


General Ledger has been enhanced to allow different sets of books to process Budget Uploads,
budget formulas and budget posting at the same time. It is no longer necessary to wait for the
processes to complete in one set of books before beginning the processes in the next set of
books.

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Financial Budgeting
Chapter 8 - Page 122

Oracle Financial Analyzer

Oracle Financial Analyzer


Oracle Financial Analyzer (OFA) is Oracle's On-Line Analytical Processing (OLAP)
application which enables you to easily identify, analyze, model, budget, forecast, and
report on information stored in the ledger without additional data entry or account
maintenance.
Oracle General Ledger uses a relational data model (ideal for transaction processing and
pre-defined reports), while Oracle Financial Analyzer uses a multi-dimensional data
model (ideal for on-line analysis). The automated flow of information between the two
enables users to take advantage of the best of both worlds: use Oracle General Ledger to
maintain and report on account balances and Oracle Financial Analyzer to analyze
financial data. This integration also allows users to write the budgets developed in OFA
back to Oracle General Ledger.
Financial Analyzer Key Characteristics
- Works on Oracle Express Server
- Export GL financial data to Oracle Express Server
- For financial data analysis
- Oracle General Ledger security rules do not apply
- Multi-dimensional
Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 123

Budgeting Tips and Techniques

Budgeting Tips and Techniques


When planning your budgeting process, consider the following:
To allow more flexibility when defining budgets, do not select Require Budget Journals
in the Define Budget window. This will allow you to make that decision on a case-bycase basis.
You may assign passwords to each budget organization in order to control the entering of
data.
You can automatically run the Maintain Budget Organization program so that disabled
code combinations are deleted and new code combinations are added periodically.

Copyright Oracle, 2009. All rights reserved.

Financial Budgeting
Chapter 8 - Page 124

Summary

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Financial Budgeting
Chapter 8 - Page 125

Summary

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Financial Budgeting
Chapter 8 - Page 126

Multi-Currency
Chapter 9

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 1

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 2

Multi-Currency

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 3

Objectives

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 4

Overview of Multi-Currency

Overview of Multi-Currency
Oracle General Ledger has full multi-currency functionality to meet the needs of global
companies in a global economy. In line with ISO Standard #4217, Oracle General Ledger
comes with all ISO currencies predefined. Simply enable the currencies you need to begin
using the Mutli-Currency Accounting features.
Using Multi-Currency Accounting
Enter transactions and report in any currency.
Enter exchange rates online or automatically.
Perform currency conversion online and in real time.
Perform remeasurement and revaluation.
Calculate realized and unrealized gains and losses.
Translate actual and budget balances.
Use daily, period end, average, and historical rates.
Comply with Generally Accepted Accounting Principles.
Review entered, converted, and translated balances.
Produce foreign currency financial statements and reports.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 5

Foreign Currency Concepts

Foreign Currency Concepts


Conversion
Conversion refers to foreign currency transactions that are immediately converted at the time
of entry to the functional currency of the set of books in which the transaction takes place.
Revaluation
Revaluation adjusts asset or liability accounts that may be materially understated or overstated
at the end of a period due to a significant fluctuation in the exchange rate between the time the
transaction was entered and the end of the period.
Translation
Translation restates an entire set of books or balances for a company from the functional
currency to a foreign currency.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 6

Integrating with Subledgers

Integrating with Subledgers


Many foreign-denominated transactions are originally entered and then settled in feeder
systems such as Oracle Payables and Oracle Receivables.
Oracle subledgers share the same General Ledger rate table.
Different conversion rate types provide each subledger the opportunity to convert transactions
at different rates daily.
It is important to implement procedures for entering and maintaining exchange rates to avoid
inconsistencies.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 7

Multiple Currency Accounting

Multiple Currency Accounting


Multiple Sets of Books
A set of books consists of the following elements: an accounting calendar, an account
structure, and currency. If one of these elements is different, you must create a separate set of
books.
Multiple Reporting Set of Books
Multiple Reporting Currencies (MRC) is beneficial for companies who must regularly and
routinely report their transactions and financial results in multiple currencies. With MRC, you
create a primary set of books then associate several reporting sets of books with different
currencies to that primary set of books. Daily transactions are entered in the primary set of
books. Then they are posted and transferred to the reporting sets of books where the foreign
currency transactions are converted to the reporting set of books functional currency. If your
companies do not need to routinely report transactions in multiple currencies, you should
maintain and process transactions independently in separate sets of books.
Note: To use MRC, the primary and reporting sets of books must all share the same calendar
and chart of accounts structures.
For more information, refer to Multiple Reporting Currencies in the Oracle General Ledger
User Guide or the 11i General Ledger Financial Management Advanced Topic Multiple
Reporting Currencies.
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Multi-Currency
Chapter 9 - Page 8

Multiple Reporting Currencies Accounting

Multiple Reporting Currencies Accounting


This diagram describes how transactions are processed using Multiple Reporting Currencies
(MRC). Transactions are entered in the Primary Set of Books in functional or any foreign
currency. Foreign currency journals are immediately converted to the functional currency.
When the journals are posted in the Primary Set of Books, unposted journals are created in
each associated Reporting Set of Books. These journals show the originally entered currency
and conversion to the Reporting Set of Books functional currency. After the journals in the
Reporting Set of books are posted, reporting and account inquiry can be done in both the
Primary and Reporting Sets of Books functional currency as well as the entered currency.
For more information, refer to Multiple Reporting Currencies in the Oracle General Ledger
User Guide or the 11i General Ledger Financial Management Advanced Topic Multiple
Reporting Currencies.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 9

Overview

Overview
The only currency that is initially enabled is the U.S. dollar (USD). To use a currency other
than the U.S. dollar, you must define (if not already defined) and enable the currency in Oracle
General Ledger.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 10

Defining Currencies

Defining Currencies
Fields in the Currencies Window
Code, Name, and Description:
Enter your own unique identifiers.
Issuing Territory:
(Optional) Select among predefined country names (per ISO Standard #3166).
Symbol:
(Optional) Enter the symbol for the currency.
Precision:
Designate the number of digits to the right of the decimal point used in regular currency
transactions.
Extended Precision:
Designate the number of digits to the right of the decimal point used in calculations. You
must specify a number greater than or equal to the Precision.

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Multi-Currency
Chapter 9 - Page 11

Minimum Accountable Unit:


(Optional) Enter the smallest denomination used.
Currency Derivation Fields:
(Optional) This field is used for defining the national currency and Euro relationship and
is only applicable for new EU member states during their transition period.
Effective Dates:
(Optional) Specify a date range for your currency. You can only enter transactions
denominated in this currency for dates that fall within the range.
Enable:
Select the Enable check box to use the currency.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 12

The Euro in 2002 and Beyond

The Euro in 2002 and Beyond


In February 1992 members of the European Union (EU) signed the Maastricht treaty and
agreed to form the European Economic and Monetary Union (EMU). The schedule for
introduction of the EMU as published by the European Commission is as follows:
Spring 1998: Decision on EMU conversion rates set.
January 1, 1999: Euro exists, conversion rates locked, bank transactions and settlements
in Euro.
January 1, 2002: Coins and notes issued.
July 1, 2002: National currencies are withdrawn.
Note: As of January 1, 2002, most countries require financial reporting and paper transaction to
be done in the Euro currency. Some countries (Italy is one) did not require this until February
28, 2002.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 13

Conversion Overview

Conversion Overview
You can enter foreign currency journal entries directly in the Enter Journals window or you can
enter foreign currency journals in a Microsoft Excel worksheet created in the Journal Wizard
and take advantage of the spreadsheet's functionality.
If you specify a foreign currency, conversion date, and conversion rate type when entering
journals, General Ledger automatically displays the daily rate. Daily rates are defined to
convert the entered foreign currency to your functional currency for the specified date and rate
type. General Ledger calculates functional debit and credit equivalents by multiplying the
debits and credits entered in a foreign currency by the retrieved daily rate.

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Multi-Currency
Chapter 9 - Page 14

Conversion Example

Conversion Example
Conversion uses a daily rate that you enter at the time of journal entry or that is derived from
the rates that have been entered in the Daily Rates table in Oracle General Ledger.
When you post foreign currency transactions, Oracle General Ledger maintains a separate
balance for accounts entered in a foreign currency and their equivalent balances in the
functional currency.
The conversion functionality allows you to:
Segregate portions of an account balance by the different currencies used in each
transaction.
Specifically identify the source currencies of transactions, a key component of
performing proper revaluation of the balance.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 15

Defining Conversion Rate Types

Defining Conversion Rate Types


Use conversion rate types to assign a rate when you convert foreign currency journal amounts
to functional currency equivalents. When you enter a foreign currency journal, General Ledger
displays the predefined exchange rate based on the currency, rate type (unless you are using the
User rate type where you must enter the rate), and conversion date you enter.
General Ledger Predefined Rate Types
Spot:
- An exchange rate based on the rate for a specific date. It applies to the immediate
delivery of a currency.
Corporate:
- An exchange rate that standardize rates for your company. This rate is generally a
standard market rate determined by senior financial management for use throughout
the organization.
User:
- An exchange rate that you enter during foreign currency journal entry.

EMU Fixed:
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Multi-Currency
Chapter 9 - Page 16

An exchange rate that is used by countries joining the EU during the transition
period to the Euro currency. For more information, refer to Euro Currency in the
Oracle General Ledger User Guide.
User Defined:
- A rate type defined by the your company to meet special needs.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 17

Entering Daily Rates

Entering Daily Rates


After you define your conversion rate types, you can enter daily rates. You can maintain daily
conversion rates between any two currencies that you have enabled in your applications
instance, regardless of your functional currency. These rates are also available when entering
cross-currency transactions in Payables and Receivables. In addition, you can enter inverse
rates independently rather than have General Ledger calculate them from the entered rate.
Rates Shared Across Sets of Books
Daily conversion rates are now shared across all sets of books within an Applications instance.
You no longer need to maintain the same rates in multiple sets of books.
Loading Daily Rates Automatically
General Ledger provides the GL_DAILY_RATES_INTERFACE table to use to automatically
insert, update, or delete daily rates in the GL_DAILY_RATES table. General Ledger validates
the rows in the interface table before making changes in the GL_DAILY_RATES table.
Warning: Always use the interface table to load your daily rates into General Ledger. Do not
load rates directly into the GL_DAILY_RATES table. This can corrupt your daily rates data.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 18

Practice - Define Currencies


Tasks
In this practice you will learn how to:

Define currencies

Define conversion rate types


Define Daily rates

Business Situation
Your organization is about to start doing business with the country of Oraclia. The VP of
Finance wants you to define Oraclias currency, the Oraclian dollar, and a new conversion rate
type called PRIVATE. He also asks you to use the PRIVATE conversion rate type to enter a
Daily rate for converting Oraclian dollars to U.S. dollars in the latest open period. The Daily rate
of 1.0671 U.S. dollars is equivalent to one Oraclian dollar.
Task
1. Open the Currencies window and enter XX_OCL as the currency code and XX Oraclian
dollars as the currency name.
Leave the Issuing Territory field blank.
Use a precision of 2.
Do not enter a minimum accountable unit.
2. Open the Conversion Rate Types window. Enter the name XX_PRIVATE and a description of
the PRIVATE conversion rate type.
3. Open the Daily Rates window. Enter the Oraclian currency code, XX_OCL in the From
Currency field.
Enter any date in the latest open period.
Choose the XX_PRIVATE conversion rate type.
Enter a rate of 1.0671 USD to XX_OCL.

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Multi-Currency
Chapter 9 - Page 19

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 20

Solution - Define Currencies


Solution
Define Currency
1. Open the currencies window.
(N) Setup > Currencies > Define
2. Enter XX_OCL in the Code field.
3. Enter XX Oraclian Dollars in the Name field.
4. Optionally enter a Description.
5. Leave Issuing Territory and Symbol blank.
6. Enter 2 for Precision and 5 for Extended Precision.
7. Leave the Minimum Accountable Unit field blank.
8. In the Effective Date From field, enter todays date. Leave the To field blank.
9. Select the Enabled check box.
10. Save your work.

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Multi-Currency
Chapter 9 - Page 21

Define Conversion Rate Types


11. Open the Conversion Rate Types window.
(N) Setup > Currencies > Rates > Types
12. Enter XX_PRIVATE.
13. Optionally enter a description.
14. Save your work and close this window.

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Multi-Currency
Chapter 9 - Page 22

Define Daily Rates


15. Open the Daily Rates window.
(N) Setup > Currencies > Rates > Daily
16. In the Currency From field, select the currency you defined.
17. Tab to the Type field, and select your Conversion rate type.
18. Tab to the USD to XX_OCL field and enter 1.0671. Press the tab key again to populate the
XX_OCL to USD field. This field should populate with the value .9371192953.
19. Save your work.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 23

Practice - Foreign Currency Journal Batch


Tasks
In this practice you will learn how to create a journal batch using a foreign currency.

Business Situation
Create a Journal Batch Using a Foreign Currency
1. Create a journal batch named XX_Consulting Revenues for the latest open period
2. Name the journal entry XX_Consulting Revenues and enter Accrual for the Journal
Category. Choose the XX_OCL currency defined in a previous practice.
3. Enter todays date as the Conversion Date and the Conversion Rate type XX_Private.
4. Enter the following journal lines:
Line

Account Number

10

01-000-1210-21XX-000

20

01-430-4130-21XX-000

Debit

Credit

360,000

Description
Accounts Receivable

360,000 Consulting Revenue

Note: Replace 21XX with your unique subaccount segment.


5. View the conversion results in the scrolling region.
Note: Oracle General Ledger displays your journal amounts entered in Oraclian dollars and
converted to U.S. dollars using the rate you defined.
Post and Review Your Batch
6. Post your journal batch and review the posted account balances online.
Run a Journals-Foreign Currency Report
7. Run a Journals-Foreign Currency Report for currency code XX_OCL and the latest open
accounting period. Choose the Line Item type and the Posted Journals status.

Assumptions

Formatted: Bullets and Numbering

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 24

Solution Foreign Currency Journal Batch


Task
In this practice you will learn how to create a journal batch using a foreign currency.
Solution
Creating a Journal Batch Using a Foreign Currency
1. Open the Enter Journals window.
(N) Journals > Enter
2. Select the New Batch button and enter XX_Consulting Revenues in the Batch Name field.
Enter the period you defined the daily rate for.
3. Select the Journals button to open the Journals window.
4. Enter XX_Consulting Revenues in the Journal Name field.
5. Use the list of values to select Accrual in the Category field.
6. Use the list of values to select XX_OCL in the Currency field.
7. Use the date entered when setting up daily rates.
8. Use the list of values to enter your conversion rate type (XX_Private) in the Type field.
9. Enter the following journal lines.
Line

Account Number

10

01-000-1210-21XX000

20

01-430-4130-21XX000

Debit

Credit

360,000

Description
Accounts
Receivable

360,000 Consulting Revenue

Post and Review Your Batch


10. Select (B) More Actions > Post to post your batch. Monitor your Posting concurrent request
to ensure it completes successfully.
11. Navigate to the Account Inquiry window.
(N) Inquiry > Account
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Chapter 9 - Page 25

12.
13.
14.
15.

Enter the journal period.


Use the list of values to enter XX_OCL in the Currency field.
Click in the first row in the Accounts region to open the Find Accounts window.
Complete the Sub-Account fields only by entering your unique Sub-Account value (21XX) in
both the Low and High columns.
16. Click the OK button to execute the Find.
17. Select the Show Balances button to view account balances for accounts 01-000-121021XX-000 and 01-430-4130-21XX-000.

Run a Foreign Currency Journals Report


18. Open the Submit Request window.
(N) Reports > Request > Standard
19. Accept the default choice to submit a Single Request by clicking on the OK button.
20. Use the list of values to select JournalsForeign Currency (132 Char) in the Name field.
21. In the Parameters window, from the list of values, select Line Item in the Type field.
22. From the list of values, select Posted Journals in the Posting Status field.
23. From the list of values, select XX_OCL in the Currency field.
24. From the list of values, select the latest open period in the Period field. Skip the remaining
fields.
25. Click the OK button and submit your request. Note your concurrent request ID number.
26. To view your request, open the Find Request window.
(N) Other > Requests (B) Find.
27. Select the View Output button to view your report online. Note: This report is a sample
output. Your numbers may differ depending on the period selected and the data available.

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Chapter 9 - Page 26

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Chapter 9 - Page 27

Revaluation Overview

Revaluation Overview
Revalue balance sheet account balances denominated in a foreign currency to reflect the
change in the foreign currency rate from the date a transaction is entered and the reporting date
in compliance with SFAS 52 (U.S.).
Revaluation Example
In this example, the value of the receivable in Euro never changed. The original
receivable transaction was entered in Euro and converted to 550 U.S. Dollars.
Upon revaluation, the exchange rate changed. The original receivable still stands at 1000
Euro. The converted amount changes to 600 U.S. Dollars. The difference, 50 U.S. Dollars
is posted to the Unrealized Gain/Loss Account.
At the beginning of the following period, the revaluation journal is reversed.

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Chapter 9 - Page 28

Revaluation Process

Revaluation Process
Finds defined accounts in which all or a portion of the balance is derived from foreign currency
transactions.
Revalues the foreign currency portion of the account balance using the Revaluation Rate from
the Period Rates table. The Revaluation Rate is the inverse of the Period End Rate (expressed
as 1/Period End Rate).
Calculates the difference between the current cumulative functional balance of these foreign
transactions and the revalued functional currency balance calculated using the Revaluation
Rate.
Creates an unposted journal batch to adjust the account balance to the new revalued balance.
The offset account is the Unrealized Gain/Loss account specified when you run the revaluation
process.
Note: After the revaluation process is completed, post the journal entry and then, at the
beginning of the next period, reverse the journal.

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Chapter 9 - Page 29

Running Revaluation

Running Revaluation
Prerequisites
Before you run revaluation, you should do the following:
Define an unrealized gain/loss account.
Define a revaluation rate for each currency by period.
Running Revaluation
Revaluation is run at the end of each accounting period as part of the close process to
revalue balance sheet accounts that are denominated in a foreign currency in accordance
with SFAS 52 (US). The journal is then reversed at the beginning of the next period. The
process is repeated until the transactions are settled. The Realized Gain/Loss is recorded
in the appropriate subledger (Payables or Receivables) and transferred to the General
Ledger at the time the obligation is settled.
Currencies
Revaluation can be run for a single foreign currency, the Euro and EMU currencies
(during the transition period), or for All currencies. When you run revaluation, General
Ledger creates a revaluation batch containing a separate journal entry for each revalued
foreign currency. Note that General Ledger creates the revaluation adjustments in your
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Chapter 9 - Page 30

functional currency. General Ledger automatically defines the reversal period as the next
accounting period.
Average Balance Sets of Books
When you revalue balances in an average balance set of books, General Ledger only
revalues standard balances. When you post the revaluation journal entries to update your
standard balances, the system recalculates your average balances automatically. For more
information, refer to Average Balance Processing in the Oracle General Ledger User
Guide or the 11i General Ledger Financial Management Advanced Topic Average
Balance Processing.
Multiple Reporting Currencies
Under the SFAS 52 remeasurement (the temporal method translation), it is necessary to
remeasure foreign currency gains or losses recorded in your primary set of books
currency and recorded them in the reporting set of books currency. For more information,
refer to Multiple Reporting Currencies in the Oracle General Ledger User Guide or the
11i General Ledger Financial Management Advanced Topic Multiple Reporting
Currencies.

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Chapter 9 - Page 31

Revaluation Example

Revaluation Example
At the end of the accounting period, the revaluation process creates an unposted journal to
record the change in the converted balances to the Unrealized Gain/Loss Account. The journal
is posted, and then reversed at the beginning of the next reporting period.
In this example:
The original journal amount entered in Euro remains the same.
At period end, the exchange rate has changed to .81 US Dollars.
The receivable is still 10,000 Euro, but is now $8,100 US Dollars.
The offset of $100 US Dollars is recorded in the Unrealized Gain account.

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Chapter 9 - Page 32

MRC Revaluation Against Primary Currency Description

MRC Revaluation Against Primary Currency Description


For those of you using Multiple Reporting Currencies (MRC), you now have more flexibility
when revaluing balances for MRC reporting sets of books.
Instead of using the primary book's entered currency balances, you can choose to use the
primary book's functional currency balances to create revaluation entries in the reporting set of
books.
There is a new profile option called GL/MRC Revaluation: Use Primary Currency instead of
Entered Currency that you assign to the reporting set of books to control how you want to
create its revaluation entries.

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Chapter 9 - Page 33

MRC Revaluation Against Primary Currency Benefits

MRC Revaluation Against Primary Currency Benefits


This feature enables global companies to adhere to different countries' accounting standards.
For most users, the Oracle General Ledger Translation feature is sufficient to meet SFAS 52
guidelines at the balances level. For other users, who may want to address SFAS 52
requirements at the transaction level, they can use MRC and Revaluation to address SFAS 52
requirements at this level by revaluing both monetary and non-monetary balances using the
functional currency balances of the primary set of books to create revaluation entries for the
reporting set of books.
If you don't require this level of detail, you still have the flexibility of using the primary books
entered currency balances for creating the reporting books revaluation entries.

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Chapter 9 - Page 34

How to Set Up MRC Revaluation Against Primary Currency

How to Set Up MRC Revaluation Against Primary Currency


1. Set the GL/MRC Revaluation: Use Primary Currency instead of Entered Currency
profile option for the Reporting Book.
- Yes: Revaluation uses the functional currency balances of the primary book
- No: Revaluation program uses the entered currency balances in the primary book
2. Run the Revaluation Program for the Reporting Sets of Books.

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Chapter 9 - Page 35

Using MRC Revaluation Against Primary Currency

Using MRC Revaluation Against Primary Currency


In the example above, the Primary Book has a USD functional currency and the Reporting
Book has Euro for its functional currency.
Foreign entered journals as well as functional entered journals have been entered in the
Primary Book. Remember, whenever you enter a foreign currency journal it is also accounted
for in the functional currency to obtain the functional currency equivalents.
When you set the profile option to Yes, you are telling Revaluation to use the primary book's
functional currency amounts, not the foreign entered amounts when it creates the Reporting set
of book's Revaluation entries.
When you set the profile option to No, then Revaluation uses the entered amounts in the
functional currency or foreign currency to create the revaluation entries in the Reporting Book.
Note: The USD balances are revalued even though they are not foreign currency balances in
the primary set of books because they are foreign currency balances in the reporting set of
books.

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Chapter 9 - Page 36

MRC Revaluation Against Primary Currency Other Features

MRC Revaluation Against Primary Currency Other Features


Other features include being able to revise previously revalued balances using the Revaluation
program.
Consequently, if you previously revalued amounts using the primary book's entered currency
amounts, you can re-run revaluation to use the primary book's functional currency amounts.
This will revalue balances from their primary set of books currency equivalent to the
transaction denomination currency, or entered currency.

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Chapter 9 - Page 37

Currency Rates Manager Description

Currency Rates Manager Description


The Currency Rates Manager is a new tool that allows you to easily manage your daily and
historical rates inside a new interface.
The Currency Rates Manager benefits global companies that maintain multiple currencies and
conversion rates by:
Helping to maintain consistency among different currency conversion rates.
Minimizing intercompany imbalances that could occur during intercompany eliminations
of foreign currency transactions due to exchange rate differences.
Easing the maintenance of daily rates and historical rates by providing a spreadsheet
interface.

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Chapter 9 - Page 38

Currency Rates Manager Description

Currency Rates Manager Description


When maintaining Daily Rates, you can automatically upload daily rates from a spreadsheet or
manage daily rates within the web-based interface. This allows you to quickly upload multiple
rates at once.
You can even use Cross Rate Rules to automatically calculate the cross rates between 2 or
more currencies. Cross Rate Rules use pivot currencies and contra currencies. A pivot currency
is the central currency used in a cross rate rule definition. Contra currencies are additional
currencies that have a rate relationship with the pivot currency.
For example, if you assign a pivot currency of USD with contra currencies of EUR and Yen,
when you define rates for any two currencies, such as USD to Euros and USD to Yen, the
Cross Rate Rules will automatically calculate the rate between Euros and Yen and the inverse,
Yen to Euros. This helps maintain consistency between different currency combinations and
reduces having to create every currency combination manually.
For Historical Rates, you can upload and download both historical rates via a spreadsheet
interface.
Added security is provided to ensure that historical rates are only uploaded to open periods.

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Chapter 9 - Page 39

Currency Rates Manager Benefits

Currency Rates Manager Benefits


One of the benefits of using Currency Rates Manager is its new easy-to-use interface. The
web-based interface is written using OA Framework, the same tool used for Oracle SelfService Applications to provide a browser look-and-feel. The spreadsheet interface enables you
to manipulate conversion rates within a familiar desktop environment.
The spreadsheet interface enables you to quickly upload a large volume of daily and historical
rates more efficiently. The ability to download historical rates to a spreadsheet allows you to
modify the rates, if necessary, and copy them from one set of books to another for ease of
maintenance.
Cross Rate Rules enforce consistency across currency rates. Because Cross Rate Rules
automatically calculate the cross rates between two or more currencies, it reduces the
likelihood of currency rate discrepancies. This ensures that intercompany transactions across
multiple currencies are accounted for with consistent rates, minimizing the effect of exchange
rate differences.

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Chapter 9 - Page 40

Using Cross Rate Rules

Using Cross Rate Rules


In the example above, assume the following currency rates have been defined from USD to
euros and USD to Japanese Yen.
Instead of having to manually define the rate between euro and Yen, the Currency Rates
Manager will automatically perform the calculation for you between euro and Yen based on
your Cross Rate Rule.
It will also calculate the inverse, from Yen to euros.
This is particularly beneficial for intercompany transactions across multiple currencies because
it ensures consistency among rates, thereby minimizing the effect of exchange rate difference
during the intercompany elimination process.

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Chapter 9 - Page 41

Period Rates

Period Rates
You must define and enable your currencies before you can enter period rates.
General Ledger uses the following rates to perform foreign currency translation in accordance
with SFAS #52 (U.S.).
Period-Average Rate Used to translate income statement accounts.
Period-End Rate Used to translate balance sheet accounts.
Revaluation Rate:
General Ledger enters the inverse of the period-end rate as the revaluation rate.
Revaluations are performed on accounts that have foreign currency balances at the end of
the period to properly state the balances to the current converted functional currency
amount.
Note: Countries joining the European Union, please refer to Revaluation during Transition to
the Euro in the Oracle General Ledger User Guide.

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Chapter 9 - Page 42

Practice - Enter Period Rates


Tasks
In this practice you will learn how to enter Period Rates.

Business Situation
1.
2.
3.
4.
5.

Enter rates for actual balances for the latest open period.
Enter XX_OCL as the To Currency.
Note: If you have not previously defined and enabled the Oraclian dollar, you must do so
prior to completing this practice.
Enter 0.85 as the Period-Average.
Skip the Period-End Rate and enter a Revaluation Rate of 1.1494. Oracle General Ledger
calculates the period-end rate as the reciprocal of the revaluation rate, or 0.87.

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

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Chapter 9 - Page 43

Solution - Enter Period Rates


Task
In this practice you will learn how to enter Period Rates.
Solution
1. Open the Period Rates window.
(N) Setup > Currencies > Rates > Period
2. Accept the default USD in the From Currency field. Enter XX_OCL in the To Currency field.
3. Select Actual in the Balance type field, and the latest open period in the Period field.
4. Enter 0.85 in the Average field.
5. Skip the End field and enter 1.1494 in the Revaluation field.
6. Save your work.

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Chapter 9 - Page 44

Translation Overview

Translation Overview
Translate actual and budget balances from functional currency to foreign currencies for online
inquiries, reports, and consolidations.
If you have average balance processing enabled, you can translate average balances as well as
standard balances.
Run translation after you have completed all journal activity for an accounting period. If you
post additional journal entries or change your translation rates after running translation for a
period, you must retranslate.
Note: Additionally, if you change the account type for an account segment value and want to
retranslate your actual account balances, you must reenter or change the period end and period
average exchange rates for the periods that you want to retranslate.
Foreign Currency Translation Versus Multiple Reporting Currencies (MRC)
MRC is specifically intended for use by organizations that must regularly and routinely
report their financial results in multiple currencies. MRC is not intended as a replacement
for General Ledger's translation feature. For example, an organization with a once-a-year
need to translate their financial statements to their parent company's currency for
consolidation purposes, but no other foreign currency reporting needs, should use
General Ledger's standard translation feature instead of MRC. For more information,
refer to Multiple Reporting Currencies in the Oracle General Ledger User Guide or the
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Chapter 9 - Page 45

11i General Ledger Financial Management Advanced Topic Multiple Reporting


Currencies.

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Chapter 9 - Page 46

Translation

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Chapter 9 - Page 47

Balances and Rates Used for Translation

Balances and Rates Used for Translation


According to accounting standards (FASB 8 and FASB 52 in the United States), Oracle
General Ledger translates your balances from one currency to another, using the conventions
shown in the figure above.
Period End Rates:
The daily rate on the last day of your accounting period.
Period Average Rates:
The average of your daily rates throughout your accounting period.
Historical Rates:
The weighted average rate for transactions that occur at different points in time.
Note: Because you translate your Balance Sheet and Income Statement accounts at different
rate types, you need to specify a Cumulative Translation Adjustment (CTA) account in the Set
of Books window to ensure that your books remain in balance. Oracle General Ledger
automatically posts the translation adjustment to this account.

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Chapter 9 - Page 48

Cumulative Translation Adjustment Account

Cumulative Translation Adjustment Account


When you translate your actual balances into another currency, General Ledger automatically
adjusts the balance of the Cumulative Translation Adjustment account to the net difference
needed to balance your translated chart of accounts. If you have multiple companies or
balancing entities within a set of books, General Ledger automatically adjusts the balance of
the translation adjustment accounts of each company or balancing entity. General Ledger does
not make balancing adjustments to this account when you translate budget balances.

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Chapter 9 - Page 49

Historical Rates

Historical Rates
More precise than period end rates with respect to equity accounts.
Defined before running translation to avoid having to retranslate your balances.
Stabilize the translated balances for long-term accounts.
Used with highly inflationary currencies to remeasure specific historical account balances
in accordance with U.S. FASB 8.

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Chapter 9 - Page 50

Translation with Historical Rates and Amounts

Translation with Historical Rates and Amounts


Account Balance:
You can assign historical rates or amounts to accounts, either individually or by range.
The resulting amount is a Year to Date translated account balance. Generally, you enter
historical rates only for specific balance sheet accounts. For example, you can use
historical rates to translate non-monetary and selected equity account balances.
Net Activity:
General Ledger uses the historical amount or rate to translate the net period activity for
the account. The amount is added to the previous period's translated balance to arrive at
the current period's translated balance.
Revenue/Expense:
The amount is treated as translated net activity for the period.
Asset/Liability:
The amount becomes the Year to Date translated balance for the account.

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Chapter 9 - Page 51

Owner's Equity:
If the profile option GL: Owners Equity Translation Rule is set to PTD (Period to Date),
the amount is treated as translated net activity for the period. If the profile option is set to
YTD (Year to Date), the amount becomes the Year to Date translated balance.

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Chapter 9 - Page 52

Translating Owners' Equity Accounts

Translating Owners' Equity Accounts


Historical rates are more precise than period-end rates for owners' equity accounts. If you
translate your owners' equity account without defining a historical rate, General Ledger warns
you that it used a calculated or period-end rate to perform translation. If you receive such a
warning, we suggest that you define a historical rate and retranslate your balances using the
newly entered rate.
The Owners' Equity Translation rule is enabled by the profile option GL: Owners Equity
Translation Rule. The default value is PTD (Period to Date).
Owners' Equity Translation Rules
Period-to-Date Rule (PTD) for Revenue and Expense accounts
- PTD (xlt) = Rate X PTD (func)
Year-to-Date Rule (YTD) for Asset and Liability accounts
- YTD (xlt) = Rate X YTD (func)
- Where (xlt) = translated currency
- (func) = functional currency
- Example: Translating Owner's Equity Rules from Euro functional currency to USD.
- PTD balance for Revenue or Expense in USD = Historic Rate X PTD Euro Balance
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Chapter 9 - Page 53

YTD balance for Assets or Liabilities in USD = Historic Rate X YTD Euro
Balance
Restating Balances Previously Translated with the Year-to-Date Rule
Older versions of General Ledger always translated owners' equity accounts using the
Year-to-Date rule.
If you subsequently switch to the Period-to-Date rule, your owners' equity accounts are
translated using this rule for new translations only.
Previously translated owners' equity balances do not change.
If you wish, you can restate your previously translated owners' equity balances.

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Chapter 9 - Page 54

Secondary Tracking Segment Description

Secondary Tracking Segment Description


A new flexfield qualifier has been added to enable you to nominate a segment in your chart of
accounts to act as your secondary tracking segment.
This segment will be paired with the balancing segment when generating account balances for
the Retained Earnings account, Unrealized Gains or Losses accounts, and the Cumulative
Translation Adjustment account.
Any segment, except the balancing segment or natural account segment, can be specified as the
secondary tracking segment.

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Chapter 9 - Page 55

Secondary Tracking Segment Description (continued)

Secondary Tracking Segment Description


If you specified to use a Secondary Tracking Segment for Revaluation, the Unrealized
Gains/Losses account will be tracked by the balancing segment and secondary tracking
segment.
If you specified to use a Secondary Tracking Segment for Closing and Translation, the
Retained Earnings account and the Cumulative Translation Adjustment (CTA) accounts
will be tracked by both the balancing segment and secondary tracking segment.
This allows you to maintain accounting data at a finer level of detail for these accounts.
Note: Year-End Close refers to the standard process of closing out the year-to-date balances for
your revenue and expense accounts to retained earnings when you open the first period of a
new year. This does not apply to the Year-End Closing Journals feature. However, you can
achieve the same result using Income Statement Closing Journals by specifying different
retained earnings accounts for a range of revenue and expense accounts.

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Chapter 9 - Page 56

Secondary Tracking Segment Benefits

Secondary Tracking Segment Benefits


Secondary tracking segments provide better audit and analysis capabilities. You now have
more visibility into the detailed components of Retained Earnings, Cumulative Translation
Adjustment, and Unrealized Gains and Losses. Instead of tracking these accounts by a
balancing segment alone, you can track them by the balancing segment and another segment of
your choice, such as Department, Line of Business, or Cost Center.
A secondary tracking segment also provides better control and consistency of similar
transactions because this option is set at the Set of Books level instead of through a profile
option.
By being able to nominate any segment other than your primary balancing segment or natural
account segment to act as your secondary tracking segment, you have greater flexibility in
tracking accounts by pairs of segments.

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Chapter 9 - Page 57

How to Set Up Secondary Tracking Segment

How to Set Up Secondary Tracking Segment


(N) Setup > Financials > Flexfields > Key > Segments (B) Segments
Choose any segment, other than your balancing segment or natural account segment, to be your
secondary tracking segment. You can set the Secondary Tracking Segment flexfield qualifier
for new or existing charts of accounts at any time.
If you are currently using the Revaluation by Cost Center feature and wish to retain it, you do
not have to do anything. However, you are encouraged to migrate to the new Secondary
Tracking Segment feature for Revaluation by doing the following:
Clear all values for the GL Revaluation: Tracking by Cost Center profile option at the
site, application and responsibility levels.
Update your chart of accounts definition so that your Cost Center Segment is also
qualified as your Secondary Tracking Segment in the Flexfield Qualifiers window. This
will ensure future revaluations remain consistent with your current method.
Check the Revaluation checkbox in the Secondary Segment Tracking region of the Set of
Books form on the next slide.
(N) Setup > Financials > Flexfields > Books > Define
There is a new Secondary Segment Tracking region in the Set of Books form. Enable the
Closing and Translation option to maintain account balances generated from the Closing
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Chapter 9 - Page 58

and Translation process. Enable the Revaluation option to track account balances
generated from the Revaluation process at a finer level of detail.
Both of these options are optional and can be turned on together or separately.
It is recommended that the Closing/Translation option be enabled when the set of books
is first defined. This option cannot be disabled in the future.
The Revaluation option can be turned on and off at any time, but for consistency in
processing, the setting should remain consistent throughout the life of your set of books.

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Chapter 9 - Page 59

Using Secondary Tracking Segment

Using Secondary Tracking Segment


Here is an example of how the Secondary Tracking Segment works.
In this chart of accounts, the Department segment acts as both the Cost Center Segment
and Secondary Tracking Segment.
We will assume the Secondary Tracking Segment option was enabled for both the
Translation/Closing and Revaluation options.

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Chapter 9 - Page 60

Secondary Tracking Segment Closing and Translation Example

Secondary Tracking Segment Closing and Translation Example


Here is an example of how the Secondary Tracking Segment works for Closing and
Translation.
When you close the fiscal year or run translation, Oracle General Ledger will group the
pair of balancing segment and secondary tracking segment values to generate the retained
earnings account for you.
Thus, the pair of values for the company and department segments, such as "01.100" and
"01.200", are maintained when making the entries to Retained Earnings.
If you did NOT enable this option for this set of books, then you would only have one
retained earnings account created for balancing segment 01. The value used for the
department segment would have been the one specified for the Retained Earnings
Account in the Set of Books form. By specifying a secondary tracking segment, the
retained earnings account will always be tracked by the combination of two segments.

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Chapter 9 - Page 61

Secondary Tracking Segment Revaluation Example

Secondary Tracking Segment Revaluation Example


Revaluation using a Secondary tracking Segment works similarly.
When you run revaluation, Oracle General Ledger will group the pair of values for the
balancing segment and secondary tracking segment to generate the Unrealized Gain or
Loss accounts for you.
This allows you to report on Unrealized Gains and Losses by company, by department, or
by a combination of company and department.

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Chapter 9 - Page 62

Automatically Assigned Rate Types

Automatically Assigned Rate Types


If no historical rate was assigned to an owner's equity account or to an account which had an
entered historical rate, General Ledger automatically creates a historical rate and assigns one of
the rate types listed below.
Prior
General Ledger uses the most recently entered historical rate or amount for your balance
sheet accounts, and assigns it the rate type Prior. If you have average balance processing
enabled, General Ledger rolls this historical rate or amount forward using the rate type
Prior.
Period
If you have never defined a historical rate or amount for an owner's equity account,
General Ledger creates historical rates using:
- The period-average rate if the profile option GL: Owners Equity Translation Rule is
set to PTD (Period to Date).
- The period-end rate if the profile option GL: Owners Equity Translation Rule is set
to YTD (Year to Date).
In both cases, General Ledger assigns the rate type Period.
Calculated
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Chapter 9 - Page 63

This rate type is only used when the profile option GL: Owners Equity Translation Rule
is set to YTD (Year to Date). It is only applicable to the first period of your fiscal year. If
you have never defined a historical rate or amount for your retained earnings account,
General Ledger calculates a rate and assigns it the rate type Calculated.

Copyright Oracle, 2009. All rights reserved.

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Chapter 9 - Page 64

Practice - Enter Historical Rates


Tasks
In this practice you will learn how to enter a historical rate of exchange.

Business Situation
Enter a historical rate of 0.92 for account 01-000-3310-21XX-000.

Assumptions

Formatted: Bullets and Numbering

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 65

Solution - Enter Historical Rates


Task
In this practice you will learn how to enter a historical rate of exchange.
Solution
1. Open the Historical Rates window.
(N) Setup > Currencies > Rates > Historical
2. Enter XX_OCL in the Target Currency field.
3. Enter the latest open period in the Period field, the account 01-000-3310-21XX-000 in the
Account field, and 0.92 in the Rate field. Leave the Amount field blank.
4. Accept the default Historical in the Rate Type field.
5. Save your work.

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Multi-Currency
Chapter 9 - Page 66

Deleted: P

Foreign Currency Listings

Foreign Currency Listings


Daily Conversion Rates Listing:
Lists the daily conversion rates defined for a specific foreign currency and accounting
period.
Historical Rates Listing:
Lists defined historical translation rates and amounts.
Period Rates Listing:
Lists defined exchange rates for any accounting period, including the period-average and
period-end translation rates and revaluation rates.

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Multi-Currency
Chapter 9 - Page 67

Foreign Currency Reports

Foreign Currency Reports


Foreign Currency General Ledger Report:
For each journal line entered in a foreign currency, the report prints the account affected,
the description of the account segment value, the journal line amount in both your
functional and foreign currency, and the beginning and ending account balances in both
your functional and foreign currency.
Foreign Currency Journals Report:
Review journal batches and associated journals for your posted, unposted or error
journals entered in a foreign currency. You can run this report with line or source item
reference information to help identify the origin of journals created by Journal Import.
Foreign Currency Detail Trial Balance Report:
Review actual General Ledger account balances and activity entered in a foreign
currency.
Foreign Currency Summary 1 Trial Balance:
Review summarized General Ledger balances and activity entered in a foreign currency.
The report summarizes balances and activity by account segment value.
Translation Trial Balance:
Review your account balances and period activity after running translation.
Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 68

Foreign Account Analysis Report:


Review source, category and reference information to trace your foreign currency
transactions back to their original source. You can run this report with entry, line or
source item reference information to help identify the origin of journals created by
Journal Import.
Foreign Account Analysis Report with Payables Detail:
Review foreign currency balances and transactions for any account(s). You can use this
report to reconcile asset additions imported into General Ledger from Oracle Payables.
To run this report, you must have Oracle Payables installed on your system and you must
allow detail posting of invoices from Oracle Payables to General Ledger.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 69

Multi-Currency Profile Options

Multi-Currency Profile Options


GL: Income Statement Revaluation Rule:
Use this profile option to select either period-to-date (PTD) or year-to-date (YTD)
income statement balances for revaluation. The default value is YTD.
GL: Revaluation: Autoquery Last Run Ranges:
This profile option allows the Revalue Balances window to retain the GL account number
ranges last entered, re-populating the window account number ranges each time it is
opened. The default value is No.
GL: Owners Equity Translation Rule:
Specify the rule General Ledger follows to translate owners' equity account when you
have not entered historical rates or amounts. You can choose period-to-date (PTD) or
year-to-date (YTD). The default value is PTD.
Journals: Allow Multiple Exchange Rates:
Specify whether you want to allow multiple conversion rates within a journal entry. The
default value is No.

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Multi-Currency
Chapter 9 - Page 70

Journals: Display Inverse Rate:


Specify Yes to enter and display conversion rates in the functional-to-foreign format, that
is, the rate by which you multiply a functional amount to determine a foreign amounts.
Specify No to enter and display conversion rates in the foreign-to-functional format, that
is, the rate by which you multiply a foreign amount to determine a functional amount.
The default value is No.

Copyright Oracle, 2009. All rights reserved.

Multi-Currency
Chapter 9 - Page 71

Summary

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Multi-Currency
Chapter 9 - Page 72

Consolidations
Chapter 10

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 1

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 2

Consolidations

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Consolidations
Chapter 10 - Page 3

Objectives

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Consolidations
Chapter 10 - Page 4

Overview of Consolidations

Overview of Consolidations
The consolidation process combines the financial results of different companies, typically
combining subsidiary accounting information into a parent company for reporting purposes.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 5

Consolidation Tools

Consolidation Tools
Financial Statement Generator (FSG)
Use Financial Statement Generator (FSG) to consolidate financial information for
businesses using a single set of books or businesses using different sets of books that
share the same calendar and chart of accounts.
Use recurring journals, mass allocation journals, and standard journals to create
intercompany elimination journal entries for multiple companies sharing the same set of
books.
Global Consolidation System (GCS)
Use Global Consolidation System (GCS) to consolidate financial information for multiple
sets of books, diverse financial systems, and geographic locations, including both Oracle
and non-Oracle applications.
Use the Consolidation Workbench in GCS to:
- Access windows used to perform each consolidation activity.
- Monitor the status of your consolidation.
- View history of past consolidations.

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Consolidations
Chapter 10 - Page 6

Consolidating Multiple Companies Sharing a Single Set of Books

Consolidating Multiple Companies Sharing a Single Set of Books


Use the Financial Statement Generator (FSG) to create consolidated financial statements at the
parent level if:
Your companies share the same set of books. Because all of your companies' information
is already contained in the same set of books, you do not need to create mapping rules or
transfer data. You simply need to enter the elimination journal entries to eliminate any
intercompany transactions, then run FSG reports.
Your companies use different sets of books on the same database instance, that share the
same chart of accounts and accounting calendar, but have different currencies. Because
FSG reports can be defined across sets of books, you can still use FSGs to create
consolidated statements. Simply run translation in the subsidiaries' set of books, then
define FSGs across sets of books using the "Translated" currency type.
You can segregate eliminating entries by creating an elimination company and using
parent/child hierarchies to address FSG consolidations.
For more information, refer to the Oracle General Ledger User Guide or 11i General Ledger
Financial Management Fundamental Financial Reporting.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 7

Consolidating Multiple Companies with Multiple Sets of Books

Consolidating Multiple Companies with Multiple Sets of Books


Companies do not share the same currency, calendar, or chart of accounts reside in separate
sets of books, and, possibly, separate instances, or non-Oracle applications. With the Global
Consolidation System, you can:
Consolidate the results of multiple organizations, with different sets of books that use
different currencies, calendars, and charts of accounts.
Initiate consolidations from your parent set of books or subsidiary set of books.
Consolidate actual amounts as well as budget amounts.
Consolidate account balances or transactions.
Create automatic intercompany eliminations.
Note: You may use the Global Intercompany System (GIS) to enter intercompany transactions.
Then, you use GCS to create your eliminating entries.
Consolidate the results of multiple organizations on multiple database instances.
Note: If you want to consolidate budgets, your parent and subsidiary sets of books must share
the same calendar and functional currency.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 8

Global Consolidation System (GCS) Features and Benefits

GCS Features and Benefits


Consolidation Workbench:
View the status of your consolidation and monitor subsidiary account balances for any
changes that occur after the subsidiary data has been transferred.
Mapping Rules:
Determine how your subsidiary account balances roll up into the parent.
State Controller:
Access to every form you need for consolidations and guides you through the
consolidation process.
Consolidation Hierarchy Viewer:
View the multilevel structure of your consolidation mapping in a graphical format to see
relationships and analyze set of books information.
Interface Data Transformer:
The Interface Data Transformer (IDT) is a user-friendly tool that makes importing of data
from external feeder systems into Oracle General Ledger or Oracle Global Consolidation
System much easier and less time-consuming.

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Consolidations
Chapter 10 - Page 9

Global Consolidation System (GCS) Features and Benefits

Global Consolidation System (GCS) Features and Benefits


Automatic Elimination Entries:
Automatically generate journal entries to eliminate intercompany balances based on rules
you define.
Multilevel Drilldown:
Drill down to access account balances, journal entries, and subledger transactions.
Reporting:
Generate standard or custom reports that can be published to a text file, spreadsheet, or
web site for review and analysis.
Integrated Analysis:
Perform multidimensional analysis of consolidated financial data using Oracle Financial
Analyzer.
- Oracle Financial Analyzer is tightly integrated with Oracle General Ledger.
- After consolidating your companies' information, you can analyze the data using
multiple scenarios.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 10

Consolidating Data in Multiple Instances

Consolidating Data in Multiple Instances


If you have companies that do not share the same instance, you can do the following:
Revalue and translate subsidiary amounts if you want to normalize the currency to the
parent's functional currency.
Run a trial balance in the subsidiary set of books and use the trial balance to create
journal entries in a spreadsheet.
Use the ADI Journal Wizard to upload the journal entry created in the spreadsheet data to
a dummy set of books defined in the parent company's instance.
Note: The dummy set of books is defined like any other set of books. The structure should
match that of the original set of books in the other instance.
As an alternative to the ADI extract, you can also use SQL*Plus and load the contents of the
flat file into the GL_INTERFACE table. You can then upload the data into the GCS instance
using journal import. This method requires support from your MIS department.
After you have all the data in a single instance, you can:
Use GCS to map accounts from your dummy set of books to your parent set of books.
Transfer data.
Create eliminating entries.
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Consolidations
Chapter 10 - Page 11

Consolidate results.
Note: The same concepts apply for non-Oracle Instances. If you have subsidiary data using
non-Oracle systems, you can map and load the data through ADI or SQL*Plus into the GL
Interface table.

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Consolidations
Chapter 10 - Page 12

Interface Data Transformer (IDT) Description

Interface Data Transformer (IDT) Description


The Interface Data Transformer (IDT) is a user-friendly tool that makes importing of data from
external feeder systems into Oracle General Ledger or Oracle Global Consolidation System
much easier and less time-consuming.
IDT takes data from external feeder systems that have been loaded into the GL_INTERFACE
table and transforms it into the proper format for import into Oracle General Ledger based on
rules you define. Instead of having to manually map the values from the external system into a
format acceptable by the target system, you can create Transformation Rules and apply them to
the external data to have them automatically mapped for you. Each time you import data, you
can simply reapply the same rules.

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Consolidations
Chapter 10 - Page 13

Interface Data Transformer (IDT) Benefits

Interface Data Transformer (IDT) Benefits


The following benefits can be achieved by using the Interface Data Transformer:
Interface Data Transformer makes importing data from Non-Oracle Systems much easier
because it reduces the manual effort required to convert disparate data formats into a
format Oracle recognizes and accepts.
By defining reusable rules, you can reapply the same rules each time you transfer data
from external systems into Oracle General Ledger or Global Consolidation System.
You can feel safe that the data is valid and will not corrupt your existing data because
IDT validates the imported data for you every time.
IDT is very flexible. By applying conditions, you can address those special circumstances
and control when the Transformation Rules should be applied.

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Consolidations
Chapter 10 - Page 14

Interface Data Transformer (IDT) Rule Set Description

Interface Data Transformer (IDT) Rule Set Description


Rule Sets control how your data in the GL_INTERFACE table is transformed.
A rule set is composed of a stage, which is a grouping of rules.
The output of a stage in a rule set is used as an input in the subsequent stage.
Rules are composed of conditions, derivations, and a validation.
Conditions determine when a derivation should be applied.
A derivation can be performed either through string manipulation, a PL/SQL function, or
through a Lookup Table.
Validation can be performed to check the results of a rule. You can use a value set or a
lookup table to validate the results of a rule.
Users must first define a Set of Books in Oracle GL to act as the target for mapping. The new
Transformation Rule Set feature will allow users to transform data from a source to a target,
regardless of the table structure of the source or target table.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 15

Interface Data Transformer String

Function Example

Interface Data transformer String Function Example


String functions enable you to parse and concatenate substrings. For example, you can take
values from multiple columns in the external system and combine them into a concatenated
value in the target system.

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Consolidations
Chapter 10 - Page 16

Interface Data Transformer PL/SQL Function Example

Interface Data Transformer PL/SQL Function Example


PL/SQL Functions perform more sophisticated transformations, such as calculations. You can
calculate amounts stored in separate columns in the external system and store the result in the
target system.

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Consolidations
Chapter 10 - Page 17

Interface Data Transformer Lookup Table Example

Interface Data Transformer Lookup Table Example


Lookup Tables convert one value into another. Thus if value "B" is specified in the external
system, you can convert that value to "Budget" in the target system.

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Consolidations
Chapter 10 - Page 18

Interface Data Transformer Steps

Interface Data Transformer Steps


(N) Interface Data Transformer > Define
The first step is to define a Transformation Rule Set. Here, you specify how you want to
transform the data using Lookup Tables, PL/SQL Functions, or String Functions.
Then you need to load your raw external data into the GL_INTERFACE table using SQL
Loader or some other loader program.
Be sure to specify a Source and Group ID in your flat file. This information will be referenced
when you apply the Transformation Rule Set to this data.
The last step is to run the program called GL Interface Data Transformer.
(N) Interface Data Transformer > Run
The GL Interface Data Transformer program takes the data in the GL_INTERFACE table and
transforms it into the correct format based on your Transformation Rule Set.
Here, you can also choose to submit the Journal Import program. You can also run Journal
Import separately after the transformation has occurred.
If there are any errors, you can correct them in the Correct Journal Import form and rerun
Journal Import.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 19

Other Uses for Global Consolidation System

Other Uses for Global Consolidation System


You can use the Global Consolidation System for other activities besides consolidation.
Changing Charts of Accounts
If you decide to change your chart of accounts after it has been implemented, you can use GCS
to map account values from the old chart of accounts to the new chart of accounts.
To do this, you must:
Create a new set of books with the desired chart of accounts structure.
Use GCS to map account values from the old set of books' chart of accounts to the new
set of books.
Transfer historical balances or transactions from the old set of books into the new set of
books.
Changing the Accounting Calendar
If you change your accounting calendar after it has been implemented, you can use GCS to
map account balances from the periods in the old set of books into the new periods in the new
set of books. This is similar to the previous process used when changing your chart of
accounts.:
Create a new set of books with the desired accounting calendar.
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Consolidations
Chapter 10 - Page 20

Use GCS to copy account values from the old set of books' chart of accounts to the new
set of books.
Transfer historical balances or transactions from the period in the old set of books to the
period in the new set of books.
Considerations for Using GCS When Making Changes
GCS is particularly useful during implementations after you have uploaded historical balances
into Oracle General Ledger. If the accounting calendar or chart of accounts changes, you can
use GCS to perform account mapping and then transfer balances period by period into a new
set of books.
Caution: If you decide to change your set of books after you have turned on Multi-Org for your
subledgers and entered transactions using your subledgers, you should take additional
precautions. Switching your set of books under these conditions may have serious
ramifications to your data integrity because all historical subledger transactions point to the old
set of books and all new subledger transactions point to a new set of books.
Using GCS with the Global Accounting Engine
Companies using the Global Accounting Engine Dual Posting solution can use Global
Consolidation System (GCS) to transfer subledger transactions, other than Payables and
Receivables transactions, to another set of books to create alternative accounting
representations of their accounting data.
The Global Accounting Engine Dual Posting solution enables you to transfer a single Payables
or Receivables transaction to two sets of books that use different accounting rules. Global
Accounting Engine Dual Posting only addresses transactions from Payables and Receivables.
Other transactions that require a second accounting representation can be transferred to the
second set of books using GCS. Global Consolidation System (GCS) allows you to
synchronize transactions between the source and target sets of books by allowing you to retain
journal batch names and descriptions and allowing you to exclude the transfer of journals by
journal category.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 21

Consolidation Workbench

Consolidation Workbench
The Consolidation Workbench provides a central point of control for consolidating an
unlimited number of subsidiaries to your parent. This window provides feedback on the state of
the consolidation process, keeping you informed about each subsidiary's consolidation status.
The workbench also monitors subsidiary account balances for any changes that occur after the
subsidiary data has been transferred to your parent set of books.
Consolidation Sets
You can even create consolidation sets which launch multiple consolidations in a single step
for overall streamlining of the consolidation process.
Consolidation Hierarchies
Finally, you can create consolidation hierarchies, or multilevel hierarchies, and view your
consolidation hierarchies using a graphical Consolidation Hierarchy Viewer.
State Controller
From the Consolidation Workbench you can access the State Controller, which is a colorcoded navigation tool to guide you through the consolidation process.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 22

Consolidation Workbench

Consolidation Workbench
(N) Consolidation > Workbench
When you navigate to the Consolidation Workbench, the Find Consolidation Processes
window opens. This window works with the Consolidation Workbench to help you find
consolidation and elimination processes. Enter a query in the Find Consolidation Processes
window. The results are displayed in the Consolidation Workbench.
Using the Find Consolidation Processes Window
To narrow the search for a consolidation process, enter search criteria in as many of the
following fields as you like:
Parent: Parent set of books.
Parent Period: Consolidation period.
Balance Type: Actual, Balance, or Any.
Mapping Set: Group of mappings.
Mapping: Single mapping.
Subsidiary: Subsidiary set of books.
Status: Consolidation status.
Elimination Set: Fully reciprocal elimination entries.
Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 23

Elimination Status: List of eleven different status of eliminations.


Note: Using the Find Consolidation Processes window refreshes data displayed in the
Consolidation Workbench. When you generate, post, or reverse consolidation journals,
navigate to the Find Consolidation Processes window and select the Find button to refresh the
data displayed. Alternatively, you can choose View > Find All from the menu bar.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 24

Using the State Controller

Using the State Controller


Use the State Controller as a short cut to navigate directly to consolidation mapping and
elimination definition windows.
The State Controller buttons correspond to one of the functional steps of a consolidation so you
can quickly access the consolidation step you want to perform.
When you select a subsidiary from the Consolidation Workbench, the State Controller buttons
change color based on which steps you have performed or need to perform for the subsidiary.
Each button on the State Controller opens the related General Ledger window.
(N) Consolidation > Define > Mapping
There are navigation paths corresponding to the buttons that open General Ledger forms and
windows:
ButtonMapping
General Ledger WindowConsolidation Mappings
Navigation(N) Consolidation > Define > Mapping

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Consolidations
Chapter 10 - Page 25

ButtonMapping Sets
General Ledger WindowConsolidation Mapping Sets
Navigation(N) Consolidation > Define > Mapping Sets

ButtonTranslation Status
General Ledger WindowTranslation Statuses
NavigationThis is available only with the State Controller

ButtonTransfer
General Ledger WindowTransfer Consolidation Data
Navigation(N) Consolidation > Transfer > Data

ButtonTransfer Set
General Ledger WindowTransfer Consolidation Data Set
Navigation(N) Consolidation > Transfer > Data Set

ButtonReview Journal
General Ledger WindowEnter Journals
Navigation(N) Journals > Enter

ButtonPost
General Ledger WindowPost Journals
Navigation(N) Journals > Post

ButtonElimination Set
General Ledger WindowElimination Set
Navigation(N) Consolidation > Elimination > Define

ButtonEliminate
General Ledger WindowGenerate Eliminations
Navigation(N) Consolidation > Elimination > Generate

ButtonReport (Standard)
General Ledger WindowSubmit Request
NavigationReports > Request > Standard

ButtonReport (Financial)
General Ledger WindowRun Financial Report
NavigationReports > Request > Financial
Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 26

State Controller Button Colors

State Controller Button Colors


Selecting a State Controller button accesses the General Ledger window to complete that step.
To help guide you in completing your consolidation steps, the State Controller buttons are
displayed in one of three colors:
Blue Recommended
Gray Not recommended
Red Warning
When you select a subsidiary from the Consolidation Workbench, the State Controller's
buttons change color based on which steps you have performed or need to perform for that
subsidiary. After you successfully complete a consolidation step, the State Controller buttons
may change color to reflect the current status.
For example, the Review Journal button is light gray until data has been transferred. After the
consolidation journal entry is generated, it appears in blue, to indicate that reviewing the
consolidation journal is now a recommended step. If previously translated data has changed
since the transfer, or the translation rate has changed, the translation status button turns red to
warn you that you need to re-run translation.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 27

Guided Demonstration - Access Consolidations Workbench


Responsibility: General Ledger, Vision Operations (USA)
(N) Consolidation > Workbench
1. Select or enter Vision Operations% in the Find Consolidation Processes window.
2. Select the Find button.
The Consolidation Workbench opens with the parent set of books, Vision Operations,
and its subsidiaries, Vision Project Mfg (MRC). Vision Mfg (MRC) is listed twice so that
both the functional currency and statistical transactions can be consolidated.
3. If the State Controller is not visible, select the State Controller button.
The State Controller buttons correspond to the functional steps of the consolidation
process.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 28

Defining a Consolidation Mapping

Defining a Consolidation Mapping


(N) Consolidation > Define > Mapping
You must define or modify a consolidation mapping for each subsidiary set of books you
want to consolidate. The mapping identifies the parent and subsidiary sets of books. The
mapping rules control the consolidation of data into the parent set of books.
Consolidation mappings include identifying the parent and subsidiary, the method,
currency, effective dates, consolidation run options, segment mapping rules, account
mapping rules and usage type.
Selecting a Consolidation Method
When the consolidation is run, consolidation journal entries are created in the parent set
of books.
Balances:
Select Balances to consolidate actual, average, translated, budget, or statistical balances.
This method does not include journal entry detail. If you choose the Balances method, the
resulting consolidation journal entries includes the account balances for all the
subsidiaries that were run. For example, if a subsidiary had five transactions that made up
the balance of the sales account, the consolidation journal entry includes the balance of
the sales account, not the individual transactions.
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Consolidations
Chapter 10 - Page 29

Note: You must use this method if you want to consolidate balances from your subsidiaries'
summary accounts.
Transactions:
Select Transactions to consolidate actual journal entry detail from a subsidiary set of
books. This method allows you to selectively consolidate individual journal entries. This
method is particularly useful if you want to make incremental updates if new journals are
entered after you run consolidation. Instead of reversing the original consolidation batch,
which is the case for the Balances consolidation method, you can transfer the additional
journal entry and post it to update the consolidated balances. If you choose the
Transactions method, the resulting consolidation journal entries include the transactions
for all the subsidiaries that are run. For example, if a subsidiary has five transactions
booked to the sales account, the consolidation journal entry includes the summation of all
five transactions. If you want each transaction to be listed in the parent set of books as
five separate transactions, you need to run the transfer five separate times.
Note: You can only use this method if both sets of books have the same functional currency.
If you have average balance processing enabled, your parent should be defined as a nonconsolidation set of books with average balances enabled.
Entering a Currency
Enter the currency to use for the consolidation. This is the same as the functional
currency for the parent. You can also select STAT.
Consolidating Books with Average Balance Processing Enabled
For average balance processing, optionally select a default Usage type such as standard,
average, or both to transfer standard, average, or both balances to the parent set of books.
Hint: You can create separate consolidation mappings for standard and average balances.
This is helpful if you want to use different mapping rules to get different levels of detail.
For example, you might map standard balances to view consolidated totals for each cost
center or average balances to view consolidated totals for each company.
Note: Standard defaults if you choose Transactions as the consolidation method. For more
information, refer to the Oracle General Ledger User Guide or the 11i General Ledger
Financial Management Advanced Topic Average Balance Processing.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 30

Mapping Rules

Mapping Rules
Selecting a Mapping Rule
Select a Mapping Rule to specify how to consolidate balances or transactions from your
subsidiary to your parent. Your choices include segment rules, account rules, or a combination
of both.
Segment rules are preferable to account rules because:
Defining consolidation mapping is quicker and easier. For example, if your parent
account has only three segments, you can map an entire subsidiary's chart of accounts
with just three segment rules.
Running consolidations based on segment rules is faster than those based on account
rules.
Changing Mapping Rules
Save your work after you have set up your consolidation mapping. Once saved, you cannot
modify your rollup rules, except to change the parent and subsidiary segment detail values. To
change a rollup rule, delete it and create a new one.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 31

Using Account Mapping Rules

Using Account Mapping Rules


Account Rules: Enter the Subsidiary Accounts and the Parent Account to which you want to
map each subsidiary account range.
Example 1: Map subsidiary account 02.300.5410.100 to account 01.5000.100 in your
parent set of books.
Example 2: Map the entire range of subsidiary accounts 02.400.5400.100 through
02.400.6999.100 to account 01.5200.100 in your parent set of books.
Note: Run new consolidations in audit mode to ensure that your account mappings are correct.
The audit mode allows you to run several audit reports to help you verify that your mappings
are set up correctly.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 32

Using Segment Mapping Rules

Using Segment Mapping Rules


Segment Rules
Enter the parent segment name to which each subsidiary is mapped, an Action, and the
Subsidiary segment name. For example, you can map your subsidiary's Department segment to
your parent's Cost Center segment. You can use only one action for each parent segment.
Mapping Rule Actions
Rule Description
Copy Value From
Copies all values in your subsidiary segment to the same values
in your parent segment. The segments do not have to use
the same value set, but must use the same segment values.
Assign Single Value
Assigns one specific value that is used for the parent
segment. You must enter the value that the parent chart of
accounts use. Use this rule when your parent account has more
segments than your subsidiary account.
Use Rollup Rules From
Maps values from your subsidiary segments to your parent
segments using the rules specified in the Rollup Rules region.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 33

Using Segment Rollup Rules

Using Segment Rollup Rules


You must define a rollup rule for any segment value mapping rules that are assigned the action
Use Rollup Rules From.
A rollup rule tells General Ledger what detail level of information to transfer and how to roll
that information up into the parent.
There are four rollup rules possible:
Transfer LevelDetail
UsingDetail Ranges
ResultsMaps a range of detail values from subsidiary set of books into one detail value
in parent set of books.

Transfer LevelDetail
UsingParent
ResultsMaps a parent value from subsidiary set of books into a detail value in parent
set of books.

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Consolidations
Chapter 10 - Page 34

Transfer LevelSummary
UsingParent
ResultsMaps a subsidiary segment parent value into a segment value in parent set of
books to consolidate balances from the summary account associated with the subsidiary
segment parent value. This rollup rule can only be used with the Balances consolidation
method.

Transfer LevelSummary
UsingParent Ranges
ResultsMaps one or more ranges of subsidiary segment parent values into a segment
value in parent set of books. This consolidates balances from the summary accounts
associated with the subsidiary segment parent values. This rollup rule can only be used
with the balances consolidation method.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 35

Defining a Consolidation Mapping Set

Defining a Consolidation Mapping Set


(N) Consolidation > Define > Mapping Set
Mapping Sets are create to transfer data for multiple subsidiaries simultaneously. After the
Mapping Set is created the results can be viewed in the Consolidation Hierarchy Viewer.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 36

Consolidation Hierarchy Viewer

Consolidation Hierarchy Viewer


(N) Consolidation > Workbench (B) State Controller (B) Mapping Set
(B) View Consolidation Hierarchy
The Consolidation Hierarchy Viewer displays your consolidation structure in a graphical
format. You can easily access your consolidation structure, mapping, parent/subsidiary
relationship, and set of books information, even for complex, multilevel consolidations that
include intermediary parents.
You launch the Consolidation Hierarchy Viewer from the Consolidation Mapping Set window
to display your multilevel consolidation structure in a graphical format. You can expand or
collapse the hierarchy
There are three ways you can review consolidation hierarchies:
Set of Books Only: Displays your hierarchy using only the company's set of books name
plus the three components that make up that set of books: the currency, calendar, and
chart of accounts structure.
Sets and Mappings Only: Displays your hierarchy using only the consolidation mapping
rules name that comprises the mapping set.
Both: Displays your hierarchy using both the company's set of books name and
components and the mapping rules name.
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Chapter 10 - Page 37

Note: You can only view consolidation hierarchies for consolidations in a mapping set.

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Chapter 10 - Page 38

Guided Demonstration - Define Mapping Rules


Responsibility: General Ledger, Vision Operations (USA)
(N) Consolidation > Workbench
1. Select or enter Vision Operations% in the Find Consolidation Processes window. Select the
Find button.
2. If the State Controller is not visible, select the State Controller button.
3. Select the Mapping button.
4. Select the New icon to open a new record.
5. Enter the following:

6.
7.

8.
9.
10.
11.

Mapping

Demo Proj Mfg to Operations (USD)

Method

Balances

Description

This consolidates Project Mfg (MRC) to Vision Operations


(USA)

Subsidiary

Vision Project Mfg (MRC)

Parent

Vision Operations (USA)

Currency

USD

Select the Account Rules button.


Map a range of accounts by entering:
Segment

Low

High

Company

101

101

Location

0000

1040

Department

000

850

Account

111000

111000

Sub Account

0000

9000

Product

000

430

Enter Parent Account: 01-000-1110-0000-000


Save your work. Close the Account Rules window.
Select the Segment Rules button.
Define segment rules by entering:
Parent Segment

Action

Subsidiary Segment

Company

Assign Single Value

03

Department

Copy Value From

Department

Account

Use Rollup Rules From

Account

Sub Account

Assign Single Value

0000

Product

Assign Single Value

000

12. Select the Account row in Parent column.


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Chapter 10 - Page 39

13. In the Rollup Rules region, enter:


Parent Segment
Detail Value
3310

Transfer Level

Detail

Using

Detail Ranges

14. Enter Subsidiary Segment Ranges:


Low

310000

High

350000

15. Save your work and close the Segment Rules window.

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Chapter 10 - Page 40

Subsidiary
Segment Parent
Value

Guided Demonstration - Create a Mapping Set


Responsibility: General Ledger, Vision Operations (USA)
(N) Consolidation > Workbench
1. Select or enter Vision Operations% in the Find Consolidation Processes window. Select the
Find button.
2. If the State Controller is not visible, select the State Controller button.
3. Select the Mapping Set button.
4. Enter the following:

5.

Mapping Set

Demo Mapping Set

Parent

Vision Operations (USA)

Description

Maps subsidiary balances in currencies USD and


STAT

Method

Balances

To add mappings to the mapping set, select the following mappings from the list of values:
Demo Proj Mfg to Operations (USD)

6.
7.
8.

9.

Project Mfg to Operations (STAT)


Save your work.
Select the View Consolidation Hierarchy button.
Select Both.
The Consolidation Hierarchy Viewer shows the consolidation structure entered in the
mapping set just created.
Close the View Consolidation Hierarchy window. Close the Mapping Sets window.

Copyright Oracle, 2009. All rights reserved.

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Chapter 10 - Page 41

Preparing Subsidiary Data

Preparing Subsidiary Data


Prepare your subsidiary data by revaluing and translating balances before you transfer the
balances to your parent.
Revalue Balances:
If any of your sets of books have balance sheet accounts that have foreign currency
balances, revalue the balances to reflect the impact of any changes in exchange rates. Post
the resulting revaluation journal.
Translate Balances:
Select the State Controller's Translation Status button to check the current status of your
subsidiary translations. If any of your subsidiary sets of books uses a functional currency
different from your parent, you should translate the account balances before you transfer
the subsidiary data to your parent set of books.
Note: Translation must be run in the subsidiary set of books the first time. Subsequent runs can
be done from the Translation Status window.
Run Reports:
Run a trial balance report for each subsidiary set of books, using the parent set of books'
functional currency.

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Chapter 10 - Page 42

Run after revaluation and translation have been processed in the consolidation
currency.
Review the trial balance to ensure the data is accurate.
Use these reports to reconcile subsidiaries to the parent.
If subsidiary data has been translated, review the trial balance to ensure the data is
accurate.

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Chapter 10 - Page 43

Revaluation Process

Revaluation Process
Revaluation should be completed before translation so the values are correct before they are
translated. The revaluation process performs the following:
Locates all accounts (within a range of specified accounts) in which all or a portion of the
balance is derived from foreign currency transactions.
Revalues the foreign currency portion of the account balance using the revaluation rate
defined in the Period Rates table. The Revaluation Rate is the inverse of the Period End
Rate (expressed as 1/Period End Rate).
Calculates the difference between the current cumulative functional currency balance of
these foreign transactions and the revalued functional currency balance calculated using
the Revaluation Rate.
Creates an unposted journal batch to adjust the account balance to the new revalued
balance. The offset account is the Unrealized Gain/Loss account specified when you run
the revaluation process.
You must post the revaluation journal entries. Optionally, at the beginning of the next period,
you can reverse the journal entries and revalue the balances again at the end of the next period.
Notes: Some companies do not reverse the revaluation journal and choose to only revalue the
activity for the period. Also, revaluation is run each period until the obligation is settled. The
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Consolidations
Chapter 10 - Page 44

Realized Gain/Loss is recorded by the appropriate subledger (Accounts Payable or Accounts


Receivable) at the time the obligation is settled.

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Chapter 10 - Page 45

Translation

Translation
If any subsidiary's set of books uses a functional currency different from the currency of the
parent set of books, translate the account balances to the parent's functional currency before
transferring them to the parent set of books.
The first time translation is run for a period, it should be initiated from the subsidiary.
However, subsequent translations, if they are needed, can be initiated from the parent, using
the State Controller Translate button.
Notes:
When running consolidation for the first time, it is best to consolidate Year-to-Date
(YTD) amounts for balance sheet accounts to capture the subsidiary book's beginning
balances. Period-to-Date (PTD) consolidation lacks the historical information needed to
distinguish the translated beginning balances from the translation adjustment for the new
rate.
For income statement account balances, run period-to-date (PTD) consolidation.
If the period rate changes, or additional data is posted to a subsidiary after translation has been
run, the translation becomes obsolete. This is indicated by the red color of the Translation
button. You need to retranslate the data, delete the previous transfer, then run the transfer
again.
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Chapter 10 - Page 46

Because all balances are restated to a single currency, you can also use this process to enable
reconciliation of your foreign subsidiary intercompany accounts.

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Chapter 10 - Page 47

Transferring Subsidiary Data to Parent Set of Books

Transferring Subsidiary Data to Parent Set of Books


(N) Consolidation > Workbench
To transfer consolidation data to your parent set of books, use the Transfer button on the State
Controller to launch a concurrent process.
You can optionally select the following Run Options:
Run Journal Import: Automatically creates journal entries in your parent set of books.
Create Summary Journals: Summarizes all journals lines for the same account into a
single debit line and credit line.
Audit Mode: Creates an audit trail of transferred data that can be reviewed in
Consolidation Audit Report, Unmapped Subsidiary Account Report, and the Disabled
Parent Accounts Report.
Consolidating Balances
The mapping selected for consolidation must use the balances consolidation method in
order to transfer balance data. When you submit the transfer process with the Run Journal
Import option enabled, General Ledger creates an unposted consolidation journal batch in
your parent set of books that includes all the valid accounts with the range selected for
the transfer. If your consolidation range excludes some accounts from your subsidiary set
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Chapter 10 - Page 48

of books, and consolidation is run in audit mode, you can review any excluded accounts
in the Unmapped Subsidiary Accounts Report.
If you do not select the Run Journal Import option for your transfer, you must manually
import the journal using the Import Journals window from your parent set of books.
Note: When running consolidation for the first time, you need to run a year-to-date
(YTD) consolidation for balance sheet accounts. This allows you to consolidate the
subsidiary's beginning balances. For each subsequent consolidation, run consolidation
using PTD balances to get the net change for the period.
Consolidating Transactions
You can consolidate transactions only if the mapping you want to transfer uses the
transactions consolidation method. In addition, you must use the Balance Type of Actual.
For average balance processing books, you should consolidate into a non-consolidations
set of books with average balances enabled.
In the Consolidation Workbench, select the consolidation mapping you want to run.
General Ledger automatically enters Actual for the Balance Type, Standard for the Usage
type, and PTD for the Amount Type. Then select the journal batches you want to
consolidate. You can search subsidiary sets of books for all unconsolidated journal
batches, previously consolidated batches or both.
Transferring Consolidation Set Data
If you have numerous subsidiaries, you can group them into a consolidation mapping set
and then transfer the set to the parent set of books. You can use the Query Mappings
button to review the mappings contained in a specific mapping set, the subsidiary period
and date. Select the mappings you want to transfer by selecting the check box to the left
of each mapping name. Then select the Transfer button to launch the transfer program.

Copyright Oracle, 2009. All rights reserved.

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Chapter 10 - Page 49

Guided Demonstration - Translate for Consolidations


Responsibility: General Ledger, Vision Project Mfg (MRC)
(N) Currency > Translation
1.
Open the Translate Balances window
2.
Complete the following:

3.

Balance Type

Actual

All

Yes

Target Currency

DEO

Period

Enter an open period

Budget Fields

Leave Blank

Select the Translate button.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 50

Practice - Define a Consolidation Mapping


Tasks
In this practice you will learn how to define a consolidation mapping by using the Consolidation
Workbench.

Business Situation
1.
2.

Consolidate the results of your subsidiary, Vision Project Mfg. (MRC) to Vision Operations.
Use the following data for your consolidation.
Field Name

Data

Mapping

XX_Project Mfg to Operations USD

Method

Balances

Subsidiary

Vision Project Mfg (MRC)

Parent

Vision Operations (USA)

Currency

USD

Usage

Standard

Parent

Vision Operations (USA)

3.

Use the following for your segment rules.


Vision Operations (USA)

Action

Vision Project Mfg. (MRC)

Company

Assign Single Value

03

Department

Copy Value From

000

Account

Use Rollup Rules From

Account

Sub-Account

Assign Single Value

0000

Product

Assign Single Value

000

4.

For the Account Segment use the following Rollup Rules:

Transfer Level

Detail

Using

Detail Ranges

Parent Segment/Detail Value

Low

High

1110

100000

299000

3310

300000

350000

4110

400000

999900

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility


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Chapter 10 - Page 51

Solution - Define a Consolidation Mapping


Task
In this practice you will learn how to define a consolidation mapping by using the Consolidation
Workbench.
Solution
1. Open the Consolidation Mappings window.
(N) Consolidation > Workbench > (B) Find (B) Mapping
2. Enter XX_Project Mfg to Operations USD in the Mapping Field.
3. Select Balances as the consolidation Method.
4. Optionally, enter a Description for the mapping.
5. In the Subsidiary field, select Vision Project Mfg. (MRC) from the list of values.
6. In the Parent field, select Vision Operations (USA) from the list of values.
7. Enter USD in the Currency field.
8. Place checks next to Run Journal Import, Create Summary Journals, and Audit Mode.

9.

Select the Segment Rules button.

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Chapter 10 - Page 52

10. Enter the following in the Parent and Subsidiary regions of the Segment Rules window.
Vision Operations (USA)

Action

Vision Project Mfg. (MRC)

Company

Assign Single Value

03

Department

Assign Single Value

000

Account

Use Rollup Rules From

Account

Sub-Account

Assign Single Value

0000

Product

Assign Single Value

000

11. For the Account Segment use the following Rollup Rules:
Transfer Level

Detail

Using

Detail Ranges

Parent Segment/Detail Value

Low

High

1110

100000

299000

3310

300000

350000

4110

400000

999900

12. Save your work.

13. Close the Segment Rules window.


14. Select the Transfer button from the State Controller.
15. In the Transfer Consolidation Data window, enter Dec-99 for both periods. Select the
Transfer button again and note your concurrent request ID.

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Chapter 10 - Page 53

16. View your concurrent process.


(N) Other > Requests > (B) Find

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Chapter 10 - Page 54

Consolidation Tracking and Reversals

Consolidation Tracking and Reversals


(N) Consolidation > Workbench (B) Find
Consolidation Tracking: The Transferred Balances column on the Consolidation Workbench
indicates whether the balances for a mapping are current or obsolete. The workbench monitors
subsidiary account balances for any changes that occur after the subsidiary data has been
transferred to the parent set of books.
Consolidation Reversals: If you reverse a subsidiary consolidation process, the Status column
displays Reversed for that process if all the following conditions have been met:
The original consolidation journal is posted.
A reversal of the original consolidation journal is generated and posted.
The order of the operations is not important. A reversal can be performed before posting
the original consolidation journal, but all three operations must all be complete for a
status display of Reversed.
Note: If you need to rerun consolidation or re-transfer data from your subsidiaries, be sure to
reverse the original consolidation journal entries to avoid double-counting balances.

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Chapter 10 - Page 55

Posting Consolidation Journal Entries

Posting Consolidation Journal Entries


After you have transferred subsidiary data to the parent set of books:
Run Journal Import, if not chosen as a consolidation run option.
Review the unposted consolidation.
Post the consolidation journal entries in the parent set of books. This launches a
concurrent process.
Request standard or FSG reports to review the consolidated results.

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Chapter 10 - Page 56

Guided Demonstration - Transfer a Consolidation Set


Responsibility: General Ledger, Vision Operations (USA)
(N) Consolidation > Workbench (B) Find (B) State Controller (B) Transfer Set
1. Select or enter Vision Operations% in the Find Consolidation Processes window. Select the
Find button.
2. If the State Controller is not visible, select the State Controller button.
3. Select the Transfer Set button.
4. In the Transfer Consolidation Set Data window, enter:

5.

6.
7.
8.
9.

Mapping Set

Demo Mapping Set

Usage

Standard

Balance Type

Actual

Currency

USD

Method

Balances

Subsidiary Amount
Type

YTD

Period

Enter an open period

Parent Set of Books

Vision Operations
(USD)

Period Standard

Enter an open period

Select the Options button to choose the run options for the consolidation:
Run Journal Import

Yes

Create Summary
Journals

Yes

Audit Mode

Yes

Select OK to close the window.


Select the Query Mappings button to add the mappings from the mapping set.
Enter an open period as the subsidiary period for each mapping.
Select the Transfer button to run the consolidation.

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Chapter 10 - Page 57

Guided Demonstration - Post Consolidation Journals


Responsibility: General Ledger, Vision Operations (USA)
N > Consolidation > Workbench
1. Select or enter Vision Operations% in the Find Consolidation Processes window. Select the
Find button.
2. If the State Controller is not visible, select the State Controller button.
3. Select the Review Journal button.
4. In the Find Journals window, enter:

5.
6.
7.
8.

Source

Consolidations

Period

Select an open
period

Select the Find button.


Select the journal for the period and accounts defined in the mapping.
Select the Review Journals button to review the journals before posting.
Select the More Actions button and then the Post button to post the consolidation journals.

Copyright Oracle, 2009. All rights reserved.

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Chapter 10 - Page 58

Practice - Post Consolidation Journal Entries


Tasks
In this practice you will learn how to post a consolidation journal entry.

Business Situation
Post your Consolidation journal entry created in a previous practice.

Assumptions

Use Vision database

Login information provided by your instructor


Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

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Consolidations
Chapter 10 - Page 59

Solution - Post Consolidation Journal Entries


Task
In this practice you will learn how to post a consolidation journal entry.
Solution
1. Open the Consolidation Workbench.
(N) > Consolidation > Workbench (B) Find (B) State Controller (B) Review Journal
2. In the Parent Period field of the Find Consolidations window, enter Dec-99.
3. Select the Find button.
4. In the Consolidation Workbench window, highlight your mapping.
5. Select Review Journal on the State Controller. The Batch window appears.

6.

Select the Journals button.

7.

Select the More Actions button and then the Post button to post the consolidation journals.

Copyright Oracle, 2009. All rights reserved.

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Chapter 10 - Page 60

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 61

Global Consolidation System Cross Instance Data Transfer

Global Consolidation System Cross Instance Data Transfer


Enterprises that manage their business operations in multiple database instances need an
automated way to transfer data from remote subsidiary database instances to a central
consolidation database instance.
The Global Consolidation System Cross Instance Data Transfer features the following:
Automatic transfer of consolidation data from one instance to another using database
links
Import and post consolidation journals in one step
Notify users of the transfer status using Workflow Notifications
The Global Consolidation System facilitates the consolidation of data from remote subsidiary
ledger database instances to a central consolidation database instance. Using database links,
Global Consolidation System allows you to automatically transfer consolidation data from one
instance to another, as well as optionally import and post the data automatically in the
consolidation database instance. You no longer have to manually transfer consolidation data
files from the remote subsidiary instances to the consolidation database instance and manually
import and post the data into the parent set of books.
This feature automates the entire process and also includes workflow notifications providing
notification of the cross instance consolidation status. Global companies with operations on
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Chapter 10 - Page 62

multiple database instances can use this feature to consolidate their subsidiaries in a more
efficient and automated manner.

Copyright Oracle, 2009. All rights reserved.

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Chapter 10 - Page 63

Cross Instance Data Transfer Security

Cross Instance Data Transfer Security


Global companies with operations on multiple database instances require security of database
objects from unauthorized users to do the following:
Prevent users from modifying tables and other objects in the parent consolidation
instance
Limit users to only transferring, importing, and posting consolidation data
Using this security, there is no need to re-enter your username and password every time you
transfer consolidation data, saving time and redundancy. And, the username/password is now
validated at the time you sign on to Oracle Applications.

Copyright Oracle, 2009. All rights reserved.

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Chapter 10 - Page 64

Global Consolidation System Parallel Consolidation

Global Consolidation System Parallel Consolidation


Global companies who transfer data for a large number of subsidiaries want to:
Improve the performance of consolidation transfers from different subsidiaries
Speed the close process by running consolidation transfers in parallel
Global Consolidation System Parallel Consolidation allows users to run multiple concurrent
consolidation transfer processes in parallel for different subsidiaries and to consolidate a high
volume of detail. The Global Consolidation System Parallel Consolidation feature takes
advantage of using separate GL_INTERFACE tables to speed up the transfer and import of
consolidation data into the target sets of books using multiple parallel processes. This allows
global companies, who often need to transfer data for a large number of subsidiaries, to
increase processing efficiency and save time during the critical close process.
To use Global Consolidation System Parallel Consolidation, you must select the Run Journal
Import option in the Transfer Consolidation Data or Transfer Consolidation Data Set forms.

Copyright Oracle, 2009. All rights reserved.

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Chapter 10 - Page 65

Creating Eliminating Entries

Creating Eliminating Entries


There are several methods you can use to create eliminating entries in your consolidated parent
or elimination set of books.
Use the Automatic Intercompany Eliminations to create elimination sets. Elimination sets are
used for fully reciprocating eliminations. For example, use elimination sets to fully offset each
subsidiary's Intercompany Payables and Intercompany Receivables accounts.
Other options for eliminating entries are to use Oracle General Ledger's journaling features to
do the following:
Create recurring journal entries for eliminations that are not fully reciprocated. Recurring
journals allow you to create formula-based eliminations that only partially offset
intercompany transactions, such as minority interest eliminations.
Create standard journal entries to eliminate intercompany balances.
Create elimination journal entries in Application Desktop Integrator (ADI). Use the
power of Excel to enter elimination entries, link worksheets and create complex
calculations. You can upload them from ADI, then post them in Oracle General Ledger.
Note: If you want to segregate elimination entries from operational accounting entries, you
should create a single elimination company. For example, if you have Company 01, 02, and 03,
create a fourth elimination company, such as Company 99. Enter all eliminating entries using
Copyright Oracle, 2009. All rights reserved.

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Chapter 10 - Page 66

the elimination company. Then you can report consolidated results before and after
eliminations.

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Chapter 10 - Page 67

Formula-Based Eliminations

Formula-Based Eliminations
Recurring journals must be used to eliminate average daily balances. For more information,
refer to the Oracle General Ledger User Guide or the 11i General Ledger Financial
Management Advanced Topic Average Balance Processing.

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Chapter 10 - Page 68

Automatic Intercompany Eliminations Program

Automatic Intercompany Eliminations Program


The Automatic Intercompany Eliminations program eliminates intercompany balances. It is
used only for fully reciprocating eliminations that repeat every accounting period.
To use this program create an elimination set. An elimination set is a batch of one or more
related elimination entries. If an elimination company is used as the target company when
booking elimination entries, you must specify the balancing segment value for the elimination
company.
The Automatic Intercompany Eliminations program automatically generates eliminating
entries per the rules specified in the Define Elimination Accounts window.
An elimination set is defined with a source account to eliminate, and a target account to
eliminate it into.
When the elimination is run, journal entries are created for all values in the source
account to zero them out and post them to the target account.
You can use the Consolidation Workbench and State Controller to track the elimination
status of elimination sets and post any generated elimination sets.

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Chapter 10 - Page 69

Defining an Elimination Set

Defining an Elimination Set


Elimination sets can contain a single eliminating journal entry, or a group of related
elimination entries.
Elimination entries are comprised of individual lines mapped to fully eliminate balances from
source accounts to target accounts.
Note: You cannot use the Automatic Intercompany Eliminations program to eliminate average
balances.
Elimination Set Components
Elimination Company:
- Choose a balancing segment value to represent the elimination company. This
company is used as the target company when booking elimination entries and the
value cannot be overridden. You can leave this field blank if you do not wish to use
an elimination company. If you leave this field blank, the balancing segment value
of the target account is used.

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Chapter 10 - Page 70

Track Elimination Sets:


- If you want the elimination set to be part of the checklist for determining which
eliminations are completed for the period, select the Track Elimination Status check
box.
Period Last Run:
- General Ledger populates this field to indicate the period in which you last executed
an elimination set.
Effective From and To dates:
- Enter a range of effective dates that includes only those periods for which you want
the eliminating entry to be used. Oracle General Ledger generates eliminating
journal entries only when you choose a date that falls within the Effective Dates
range.
Currency:
- Select the functional currency of the parent set of books or STAT. The currency you
specify is for both source and target accounts.
Amount Type:
- Enter period-to-date, (PTD), quarter-to-date (QTD), year-to-date (YTD), or projectto-date (PJTD). Average Balances cannot be used.
Source Account:
- The Source Account balance is fully eliminated into the target account. The
elimination program takes the negative balance of the source account and places the
balance in the target account. For each account segment, choose a detail account
value, a parent value, or leave the segment blank. Note: Use parent values to reduce
account maintenance because the elimination set automatically accommodates
changes in the child values associated with a particular parent value. Parent values
save you time in defining elimination sets because you can specify one elimination
line which includes the parent value, instead of multiple lines for each child value.
If you use parent values, the elimination functionality automatically loops through
each of the child values for those segments and creates its detailed or summarized
offset in your elimination journal.
Target Account:
- Specify a target account for your elimination entry. For each account segment,
choose a detail account value or leave the segment blank. Note: If you specify an
elimination company in the Elimination Sets window, the balancing segment value
for the target account is set for you. You cannot override this default. If you do not
specify an elimination company in the Elimination Sets window, the source account
balancing segment value defaults as the target balancing segment value and you can
override this value.
Specifying an Elimination Company
If you specify an elimination company in the Elimination Sets window, the balancing
segment value for the target account is set for you. You cannot override this default.
If you do not specify an elimination company in the Elimination Sets window, the source
account balancing segment value defaults as the target balancing segment value and you
can override this value.
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Chapter 10 - Page 71

Source and Target Account Example

Source and Target Account Examples


The examples above illustrate how various mapping rules work based on the account structure
shown above for a single account segment, in this case, the cost center segment. The same
concepts apply to all segments in your chart of accounts.
The parent cost center 999 has three child accounts, 100, 200, and 300. Cost center 400 does
not have a parent.

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Chapter 10 - Page 72

Balancing Options for Eliminations

Balancing Options for Eliminations


If elimination journals are out of balance, you can specify balancing options to either allow out
of balance journals to be created or to post the net difference to an alternative account.
Balancing options apply to all journals created for the elimination set.
Allow Out of Balance Journal: Allows the creation of an unbalanced journal entry to be
reviewed and corrected before posting.
Balance with Net Difference Account: Specifies an account template to use if the difference is
a net debit or credit.
In addition, threshold rules can be applied to prevent the automatic balancing of elimination
journals if the net difference exceeds a specific amount, a percentage of a particular account, or
a percentage of the journal.
Enter one of the following parameters to specify the threshold amount:
Constant amount: Specify a fixed amount
Percentage of account: Enter a number and an account. The number represents a
percentage of the period-to-date (PTD) balance of the selected account. This account
must be a detail account.
Percentage of journal: Enter a number that represents the percentage of the lesser total
debit or total credit of the unbalanced journal.
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Chapter 10 - Page 73

If multiple balancing segments are involved, General Ledger creates specific balancing
accounts by balancing segment value.

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Chapter 10 - Page 74

Allow Out of Balance Journal

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Chapter 10 - Page 75

Balance with Net Difference

Balance with Net Difference


If you use the Balance with Net Difference option, you can select different net difference
accounts for debit differences and credit differences.
You can also enter threshold rules with the Balance with Net Difference option:
If the difference does not exceed the amount specified in the threshold rule, the
elimination journal is automatically balanced.
If the difference exceeds the amount specified in the threshold rule, you can examine the
difference in the out of balance journal entry and decide what needs to be done.

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Chapter 10 - Page 76

Guided Demonstration - Define Elimination Set


Responsibility: General Ledger, Vision Operations (USA)
(N) Consolidation > Workbench (B) Find (B) State Controller (B) Elimination Set
1. In the Elimination Sets window, enter the following:

2.
3.
4.

5.

Elimination Set

Demo Subsidiaries in Operations

Description

Standard EliminationOne
Journal

Elimination
Company

95 Operations Eliminations

Select the Track Elimination Status check box. The status of the elimination for this period
will show on Consolidation Workbench screen.
Select the Accounts button.
In the Elimination Accounts window, enter the following:
Elimination Entry

Demo Elimination Entry

Currency

USD

Category

Elimination

Account Type

YTD

Enter the account information for the source account or ranges of accounts to be eliminated
and the target accounts where the combined balance will be recorded.
Line

6.
7.

Source Account

Target
Account

10

T-T-1819-0000000

95 ----

20

T-T-2379-0000000

95 ----

30

T-T-4169-0000000

95 ----

40

T-T-7759-0000000

95 ----

The value T represents all values of a segment. By entering only Company 95 in the
target account field, the company segment will be overwritten with 95 but the remaining
segments will be copied from the source account values. For example, a source account
of T-T-1819-0000-000 will be copied to a target account of 95-(total for all departments)(each child account under 1819)-0000-000.
Save your work and close the window.
Select the Balancing Options button.

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Consolidations
Chapter 10 - Page 77

8.

9.

In the Balancing Options window, select the Balance with Net Difference Account radio
button and enter an account template to use if there is a net difference during elimination.
Enter the following:
Debit Account

95-000-2980-0000-000

Credit Account

95-000-2990-0000-000

Save your work and close the window.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 78

Guided Demonstration - Generate Elimination Entries


Responsibility: General Ledger, Vision Operations (USA)
(N) Consolidation > Workbench (B) Find (B) State Controller (B) Eliminate
1. Enter the current open period for the elimination.
2. Select the check box for Demo Subsidiaries in Operations.
3. Select the Generate button to run the elimination process. This creates unposted journal
entries for you to review and post.

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Consolidations
Chapter 10 - Page 79

Practice - Create Elimination Sets


Tasks
In this practice you will learn how to define an Elimination Set.

Business Situation
1.
2.
3.
4.
5.

Use XX_Elimination Set for your Batch Name.


Use XX_Elimination Journal for the Elimination Entry field.
Currency is USD.
Amount Type is PTD.
Leave the Source and Target fields blank.

Assumptions

Use Vision database

Login information provided by your instructor

Replace XX with the number provided by your instructor


Use General Ledger, Vision Operations (USA) responsibility

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Consolidations
Chapter 10 - Page 80

Solution - Create Elimination Sets


Task
In this practice you will learn how to define an Elimination Set.
Solution
1. Open the Elimination Sets window.
(N) Consolidation > Elimination > Define
2. Enter XX_Elimination Set for your Batch Name.
3. Optionally, enter a Description for your elimination set.

4.
5.

6.
7.
8.
9.

Click the Accounts button to open the Elimination Accounts window.


In the Elimination Entry field, enter XX_Elimination Journal to uniquely identify an
elimination journal within the elimination batch. The Category is automatically defined as
Eliminations.
In the Currency field, select USD.
In the Amount Type field, enter PTD.
Enter the following accounts in the Source field: 01-000-1810-0000-000 and Target field:
95-000-1810-0000-000.
Save your work.

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Chapter 10 - Page 81

10.
11.
12.
13.

Close the Elimination Accounts window.


Select the Balancing Options button from the Define Elimination Set window.
Select Balance with Net Difference Accounts.
Enter 01-000-7740-0000-000 as the Debit and Credit Account.

14. Save your work. Select the Generate button and view your journal.

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Chapter 10 - Page 82

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Chapter 10 - Page 83

Practice - Generate Eliminations


Tasks
In this practice you will learn how to generate eliminations.

Business Situation
Create a consolidation Elimination using the Elimination Set you created in a previous Practice.
Use Vision Operations (USA) as your Parent.

Assumptions

Use Vision database


Login information provided by your instructor

Replace XX with the number provided by your instructor

Use General Ledger, Vision Operations (USA) responsibility

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Chapter 10 - Page 84

Solution - Generate Eliminations


Task
In this practice you will learn how to generate eliminations.
Solution
1. Open the Consolidation Workbench
(N) > Consolidation > Workbench (B) Find (B) State Controller (B) Eliminate
2. Enter the date Dec-99 in the Period field.

3.
4.
5.

Select the check box for XX_Elimination Set.


Select the Generate button to run the elimination process. This creates unposted journal
entries for you to review and post
View your output.
(N) Other > Requests

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Chapter 10 - Page 85

Consolidated Balances Inquiry

Consolidated Balances Inquiry


With General Ledger's drill down functionality, you can view any subsidiary, account, journal,
or subledger transaction. From your parent set of books, you can drill between:
Consolidated and subsidiary entities
Detail accounts and journal entries
Summary and detail account balances
Journals and subledger transactions
Note: To be able to use drill down, select the Import Journal References check box in the
Journal Sources window, in the parent set of books, for the consolidation journal source. To
drilldown to subledger transactions, you must also select the Import Journal References check
box for each subledger source.
Drilldown Example
Suppose while analyzing total consolidated sales in your parent set of books, you want to
determine how much each subsidiary contributed to the total amount. You drill down from the
consolidated sales balance to any subsidiary sales account balance. From there, you can view
account details and journal entries. If you need further information, drill down further to the
Accounts Receivable subledger transactions that contributed to your total consolidated sales
balance.
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Consolidations
Chapter 10 - Page 86

Performing Consolidated Balances Inquiry

Performing Consolidated Balances Inquiry


(N) Inquiry > Account
Perform an account inquiry in your consolidated parent set of books.
Select the Show Journal Details button to drill down to the Journals window.
Search for journal batches with a journal source of Consolidation to locate your consolidation
journal entries.
Select the Drilldown button to open the Consolidation Drilldown window.
Select Detail Translated Balances button to view the translated balance amounts.
To view amounts in original currency entered, select the Entered Balances button.
To change the amount type to Year-to-Date (YTD), Period-to-Date (PTD), Quarter-toDate (QTD), or Project-to-Date (PJTD), select the Switch Amount Type button.

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Chapter 10 - Page 87

Running Consolidation Reports

Running Consolidation Reports


Select the Report button on the State Controller to submit standard consolidation reports.
Consolidation Audit Report:
Use this report to review the mapping of account balances from your subsidiary set of
books into accounts in your parent set of books for a specific consolidation mapping. It
reports the total of all subsidiary account balances that were consolidated into each
account in your parent set of books.
Consolidation Exception Reports
Unmapped Subsidiary ReportUse this report to determine if your consolidation is complete
prior to posting. It reports any subsidiary accounts, included in the account range you specified
for your consolidation transfer, with non-zero balances that were not consolidated into your
parent set of books because the accounts were not mapped.
Disabled Parent Account ReportUse this report to review all disabled accounts in your
parent set of books for which you tried to consolidate balances or transactions.
Consolidation Rules ReportThis report prints the segment and account rules defined for a
specific consolidation mapping.
Consolidation Journals ReportThis report lists subsidiary journal lines and the parent
accounts used for your consolidation. Use this report to review journal batches consolidated
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Consolidations
Chapter 10 - Page 88

across multiple sets of books. You must run this report from your parent set of books. You can
only run this report if your consolidation uses the Transactions method and you do not select
the Create Summary Journals option.
Notes:
The Consolidation Audit Report, Unmapped Subsidiary Report, and Disabled Parent
Account Report are available only if you select the audit mode run option when
transferring your subsidiary data

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Consolidations
Chapter 10 - Page 89

Creating Custom Consolidation Reports

Creating Custom Consolidation Reports


You can use Financial Statement Generator (FSG) or Applications Desktop Integrator (ADI) to
define custom consolidation reports for your parent set of books. You can report on multiple
sets of books in the same report as long as each set of books shares the same account structure
and calendar.

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Consolidations
Chapter 10 - Page 90

Guided Demonstration - Run Consolidation Reports


Responsibility: General Ledger, Vision Operations (USA)
(N) Consolidation > Workbench (B) Find (B) State Controller
1. Select the Report button.
2. Select Standard in the Report window. Select Single Request. Select the OK button.
3. Select Consolidation Audit from the list of values.
4. Enter the parameters for the report:
Consolidation Project Mfg to Vision Operations
(USD)

5.
6.
7.

Period

Feb-98

Usage

Standard

Select the OK button.


Select the Submit button and close the Note window with the Concurrent Request number.
Select the No button in the message window asking if you want to submit another request.

(M) View (M) Requests (B) Find


8. Select your concurrent request and then choose the View Output to see your report online.

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 91

Practice - Consolidation Report Using Consolidation Workbench


Tasks
In this practice you will learn how to run a Consolidation Report using the Consolidation
Workbench.

Business Situation
In an earlier practice you consolidated the results of Vision Project Mfg to Vision Operations
(USA). You now want to view an audit report of that consolidation.

Assumptions

Use Vision database


Login information provided by your instructor

Replace XX with the number provided by your instructor


Use General Ledger, Vision Operations (USA) responsibility

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 92

Solution - Consolidation Report Using Consolidation Workbench


Task
In this practice you will learn how to run a Consolidation Report using the Consolidation
Workbench.
Solution
1. Open the Consolidation Workbench window.
(N) Consolidation > Workbench
2. In the Find Consolidations Processes window, query Vision Operations (USA) and select
the Find button.

3.
4.

In the Consolidation Workbench window, place your cursor on your consolidation, identified
by XX_Project Mfg to Operations USD in the Mapping column.
Select the Report button on the State Controller window.

5.

Select Standard Report and Single Request. The Submit Request window appears.
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Chapter 10 - Page 93

6.
7.
8.
9.
10.
11.

In the Name field, select Consolidation Audit from the list of values.
Use XX_Project Mfg to Vision Operations (USD) for your parameter.
Select Dec-99 from the List of Values in the Period field.
Select Standard usage.
Select the Submit button.
To view your request, open the Find Request window.
(N) Other > Requests > (B) Find
12. Select View Output to view your report online.
Note: A partial screen shot of the output appears on the next page. This report is a
sample output. Your numbers may differ depending on the period selected and the data
available.

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Chapter 10 - Page 94

Copyright Oracle, 2009. All rights reserved.

Consolidations
Chapter 10 - Page 95

Summary

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Consolidations
Chapter 10 - Page 96

Period Close
Chapter 11

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Chapter 11 - Page 1

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Chapter 11 - Page 2

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Chapter 11 - Page 3

Objectives

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Chapter 11 - Page 4

The Accounting Cycle

The Accounting Cycle


The following are steps in the General Ledger Accounting Cycle:
Open period
Create functional and foreign journal entries.
Reverse journal entries
Convert journal amounts
Post and review balances
Revalue and translate foreign currency balances
Consolidate sets of books
Review and correct balances
Run accounting reports
Close the accounting period

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Chapter 11 - Page 5

Period Close Checklist

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Chapter 11 - Page 6

Overview of Importing Journal Entries

Overview of Importing Journal Entries


Importing information from Oracle subledgers is a two-step process:
Data is pushed into the GL_INTERFACE table from the subledger using a transfer
program.
Journal Import pulls the information from the Interface table to create valid, postable
journal entries in General Ledger.
When you initiate the transfer program from Oracle subledgers, such as Oracle Payables or
Oracle Receivables, you can choose to also submit the Journal Import process. If you do not
choose to run Journal Import from the subledger, you must run Journal Import separately in
General Ledger, using the Import Journals window, in order to create postable journal entries.
The Journal Import process creates journal entries based on accounting information from either
Oracle subledger applications or non-Oracle feeder systems. It loads this data from the
GL_INTERFACE table into the GL_JE_BATCHES, GL_JE_HEADERS, and GL_JE_LINES
tables of General Ledger. It can transfer journal information in detail or summary.
Note: Journal Entries can be transferred anytime during the period. Before closing each
subledger, a final transfer should be performed. Oracle Assets transfers journal information
directly to General Ledger to create unposted journal entries in the GL_JE_BATCHES,
GL_JE_HEADERS, and GL_JE_LINES tables. You do not run Journal Import to transfer asset
information to General Ledger.
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Chapter 11 - Page 7

Integration with Non-Oracle Systems: If you maintain your subledger information in an


external, non-Oracle application, you must write a script to convert data into a format readable
by SQL*Loader, to load that information into the GL_INTERFACE table.

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Chapter 11 - Page 8

Journal Import Verification Process

Journal Import Verification Process


(N) > Journals > Import > Run
Journal Import validates all of your data before it creates journal entries in General Ledger. If
you allow suspense posting for your set of books, Journal Import assigns lines with invalid
accounts to the suspense account. Journal Import rejects all other invalid lines, and they remain
in the GL_INTERFACE table. Journal Import also prints your error lines in the Journal Import
Execution report.
Journal Import validates the following attributes to ensure that your journals contain the
appropriate accounting data:
Account combinations
Unbalanced journal entries
Periods
Foreign currency errors
Budget information
Encumbrance information
Other miscellaneous items

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Chapter 11 - Page 9

Before closing the General Ledger, verify that all journal entries have been imported from the
GL_Interface table. If not, trouble shoot the remaining entries.
Caution: Do not correct or delete journal import data from Oracle subledgers such as Oracle
Payables or Oracle Receivables. Corrections do not update the Oracle subledger data causing a
permanent out of balance between the General Ledger and the subledger. The Oracle
subledgers set flags to indicate the transactions have been sent to Oracle General Ledger. If the
import is deleted, these flags must be reset before the transactions can be resent.
For more information on Journal Import, see the previous chapter on Journal Entries.

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Chapter 11 - Page 10

Posting Journals

Posting Journals
You have three methods to post journal import batches.
Batch Posting: Navigate to the Post Journals window to post a group of journal batches.
- (N) Journals > Post
Manual Posting: Select the More Actions button from either the Journals window or the
Batch window to post a journal batch at the time of entry. This option is available only if
the profile option Journals: Allow Posting During Journal Entry has been set to Yes.
When you post a journal, Oracle General Ledger posts all the journals in a batch.
(N) Journals > Enter (B) More Actions
Automatic Posting: Run the AutoPost program to post journal batches automatically
based on a schedule you define.
- (N) Setup > Journals > AutoPost
Correcting Batch Posting Errors: Review the batch to identify the posting error. Common
explanations for unpostable batches include:
Control total violations
Posting to unopened periods
Unbalanced journal entries
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Chapter 11 - Page 11

Posting Statuses are:


Unposted
Pending
Processing
Selected for posting
Posted
Error
For more information on Posting Journals, see the previous chapter on Journal Entries.

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Chapter 11 - Page 12

Reconciling Subledger Data

Reconciling Subledger Data


Before closing the General Ledger, reconcile the subledger data to the General Ledger to be
sure that all transactions have been transferred and accounted for correctly in the General
Ledger. This can be done using reports and on line account analysis.

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Chapter 11 - Page 13

Close the Subledgers

Close the Subledgers


Once the data is reconciled, close the subledgers. A suggested order for closing the subledgers
is as follows:
Projects: Receives and sends information on expenses from and to Payables. Also
receives outstanding purchase orders from Purchasing. Sends Asset lines to Assets. Sends
information to General Ledger.
Payables: Transfers information to Assets, Projects, and General Ledger.
Purchasing: Calculates period end accruals for expense items received but not yet
invoiced. If Purchasing closes before Payables, more invoices could be entered causing
an out of balance situation.
Assets: Receives asset invoice lines from Payables after they have been transferred to the
General Ledger.
Receivables: Can be closed at anytime in the process. It is not depended on the other
modules.
Inventory: Transfers inventory cost information. Close after Purchasing and Receivables
to ensure that all receiving and shipping transactions have been processed.

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Chapter 11 - Page 14

Note: Order Management updates Inventory during Ship Confirm which precedes the
AutoInvoice Process. Therefore, verify that all orders have been processed in Order
Management before closing Inventory.

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Chapter 11 - Page 15

P2P Close Processes

P2P Close Processes


Submit the Payables Transfer to General Ledger process to transfer accounting information to
the GL Interface. After the Payables Transfer to General Ledger process completes, run the
Journal Import process to create unposted journals in General Ledger. Note: The Payable
Transfer can now be run as part of a set of programs called the Payables Accounting Process
that creates the payables accounting entries, transfers the data into the GL Interface table, and
runs Journal import.
Purchasing Receipt Accruals - Period End: Use the Receipt Accruals - Period-End
process to create period-end accruals for your uninvoiced receipts. This process only
generates receipt accruals for items you purchase and receive that are set to accrue at
period end. Receipt accruals for items set to accrue on receipt are automatically sent to
the GL Interface. In either case, use the Journal Import program with a source of
Purchasing to transfer receipt accruals from the GL Interface to the General Ledger
Journal tables.
Inventory Transfer Transactions to GL: Use the Transfer Transactions to GL process to
transfer summary or detail accounting activity for any open inventory period into the
General Ledger Interface, including both inventory and work in process entries. When
more than one period is open, the transfer selects transactions from the first open period
up to the entered transfer date, and passes the correct accounting date and financial
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Chapter 11 - Page 16

information into the General Ledger Interface. Use the Journal Import program with a
source of Inventory to transfer accounting information from the GL Interface to the
General Ledger. Run this process for each inventory organization.
For Assets, run the following processes:
- Mass Additions Create: Run the Mass Additions Create program to transfer capital
invoice line distributions from Payables to Assets. This process creates no
accounting entries. After the program completes, invoice distributions may be
processed.
- Post Mass Additions: Once your mass additions are processed, use the Post Mass
Additions program to place the assets in service.
- Run Depreciation: This process calculates depreciation, gain/losses on retirements,
and (optionally) closes the period.
- Create Journal Entries: Use the Create Journal Entries process to create accounting
and transfer it directly to the General Ledger. The accounting clears the asset
clearing account and charges the asset cost account. Assets does not use the GL
Interface.

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Chapter 11 - Page 17

Overview of the P2P Period Close

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Chapter 11 - Page 18

Reconcile AP to GL

Reconcile AP to GL
Use the following Payables reports to reconcile your transferred invoices and payments to your
Accounts Payable Trial Balance to ensure that your Trial Balance accurately reflects the
Accounts Payable Liability:
Accounts Payable Trial Balance (for last day of prior period)
Posted Invoice Register - Invoice journals must be posted in General Ledger to appear on
this report.
Posted Payment Register - Payment journals must be posted in General Ledger to appear
on this report.
Accounts Payables Trial Balance (for last day of current period)
This balancing process will help you ensure that all liabilities recorded in Payables are
reflected in the General Ledger AP Liability accounts. If the balance reported by the Accounts
Payables Trial Balance does not equal the balance in the AP Liability account, you can use the
Account Analysis report and the General Ledger reports to determine what journals are being
posted to that account. Before running your reports, run the Payables Accounting Process with
the Transfer to General Ledger Program and Journal Import for all transactions in the period
that you are reconciling. Also, be sure to post the transactions in the General Ledger.

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Chapter 11 - Page 19

Reports

Reports
Accounts Payable Trial Balance: Verify that total Accounts Payable liabilities in Payables
equal those in the General Ledger. To reconcile these balances you can compare the
cumulative total liability provided by this report with the total liability provided by your
General Ledger.
Accrual Rebuild Reconciliation Report: Analyze the balance of the Accounts Payable (A/P)
accrual accounts. You can accrue both expense and inventory purchases as you receive them.
When this happens, you temporarily record an Accounts Payable Liability to your Expense or
Inventory A/P Accrual accounts. When Payables creates the accounting for the matched and
validated invoice, Payables clears the A/P accrual accounts and records the liability from the
supplier site. Run this report at period end.
Accrual Reconciliation Report: The same report as the Accrual Rebuild Reconciliation Report
with one key difference. The Accrual Rebuild Reconciliation Report creates records in a
temporary table which are used as the basis for the report. The Accrual Reconciliation Report
simply uses the records created by the Accrual Rebuild Reconciliation Report as a basis for the
report. Run this report during the accounting period.
Accrual Write-Off Report: Provide supporting detail for your write-off journal entries. The
process is as follows:
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Chapter 11 - Page 20

Analyze the Accrual Reconciliation Report for transactions that you should expense out
of the accrual accounts.
Researched the reported accrual balances.
Use the Accrual Write-Off window to indicate which entries you wish to remove and
write off from this report.
Use the Accrual Write-Off Report as supporting detail for your manual journal entry.
Matched and Modified Receipts Report: After you automatically create invoice distributions by
matching an invoice for goods to a receipt, that receipt can be modified in Purchasing. For
example, you might need to adjust a receipt because the quantity received was incorrectly
recorded, or the product was defective and returned to the supplier. Use this report to identify
receipts that have been changed after invoice matching, and for which no users have seen
modifications.
Payables Account Analysis Report: Review and analyze accounting entries in Payables. You
can use the report parameters to limit the report to just the accounting information you want to
review. The Payables Account Analysis report is helpful when you reconcile your accounts
with your General Ledger. For example, you can reconcile the prepaid expense account
between Payables and your General Ledger. You can submit this report in detail and compare
it to an account analysis report in your General Ledger.

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Chapter 11 - Page 21

Reports (Cont.)

Reports (Cont.)
Payables Accounting Entries Report: Use this report to review and analyze accounting entries
in the Payables subledger. You can request the report for a specific run of the Payables
Accounting Process or the Payables Transfer to General Ledger program. Using the report
parameters, you can produce a detailed or summary listing of the accounting information you
want to review. The report also lists in detail any transactions that have been accounted with
error and all entries that could not be transferred to the General Ledger Interface. When a
transaction is accounted with errors, use the Update Accounting Entries window to update any
invalid accounts.
Posted Invoice Register: Use the Posted Invoice Register to review accounting lines,
summarized by invoice, that have been transferred to the General Ledger. Because it presents
amounts that have been charged to liability accounts, this report is valid only for an accrual set
of books. The Posted Invoice Register is primarily a reconciliation tool. Use this report along
with the Posted Payment Register and the Accounts Payables Trial Balance Report to reconcile
balances between Payables and your General Ledger.
Posted Payment Register: Use the Posted Payment Register to review accounting lines,
summarized by payments that have been transferred to the General Ledger. Because it presents
amounts that have been charged to liability accounts, this report is valid only for an accrual set
of books. You can submit the Posted Payment Register for one payment journal entry batch or
Copyright Oracle, 2009. All rights reserved.

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Chapter 11 - Page 22

all payment journal entry batches. The Posted Payment Register is primarily a reconciliation
tool. Use this report along with the Posted Invoice Register and the Accounts Payables Trial
Balance Report to reconcile balances between Payables and your General Ledger.
Receipt Accruals - Period End: Use the Receipt Accruals - Period-End process to create
period-end accruals for your uninvoiced receipts for expense distributions. Purchasing creates
an accrual journal entry in the General Ledger for each uninvoiced receipt you choose using
this window.
Receiving Account Distribution Report: The Receiving Account Distribution Report lists the
accounting distributions for your receiving transactions. This report supports the distributions
created for the following transactions:
Purchase Order Receipts
Purchase Order Receipt Adjustments
Purchase Order Returns to Supplier
Deliver to Expense Destinations
Return to Receiving from Expense Destinations
Match Unordered Receipts
This report helps you reconcile your receiving accounting to the General Ledger.

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Chapter 11 - Page 23

Reports (Cont.)

Reports (Cont.)
Unaccounted Transactions Report: Identify and review all unaccounted invoice and payment
transactions and see the reason that Payables cannot account for a transaction. Run this report
after you have run the Payables Accounting Process. The report will then show only
transactions that had problems that prevented accounting. You can then correct the problems
and resubmit the accounting process. Note that this report does not include invoices that have
no distributions.
Uninvoiced Receipts Report: Run before the Receipt Accrual - Period-End process. With this
report, you can review all or specific uninvoiced receipts for both period end and online
accruals. Uninvoiced receipts are goods and services you have received that your supplier did
not invoice yet. This report indicates exactly what you have to accrue and for what amount,
and helps you analyze your receipt accrual entries. The accrual amount is the difference
between the quantity received and the quantity billed multiplied by the unit price of the item.

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Chapter 11 - Page 24

O2C Period Close Process

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Chapter 11 - Page 25

Overview of O2C Period Close Process

Overview of O2C Period Closing Process


As part of the Order to Cash (O2C) process, accounting information is transferred from
Inventory and Receivables to the General Ledger. The Order Management and Cash
Management applications send transactions to Receivables and Inventory rather than directly to
the General Ledger.

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Chapter 11 - Page 26

Transferring Inventory and Receivables

Transferring Inventory and Receivables


Inventory Transfer
Manufacturing and Distributions Manager, Vision Operations (USA)
(N) Accounting Close Cycle > General Ledger Transfers
The General Ledger Interface program populates the GL_Interface tables with Oracle
Inventory transaction data. The data is transferred in detail to the Interface table and then
pulled into General Ledger in detail or summary. The GL dates are used to specify the
data to be transferred. The General Ledger Interface automatically runs when the period
is closed.
The transactions may not balance if:
- Transfers from Order Management to Receivables and Inventory are not completed
before closing or fail when imported.
- The General Ledger account is changed to an invalid number before transfer.
- Manual General Ledger Journal Entries are entered that affect the Inventory
accounts.
- Reports are run prior to all activity being transferred and posted.
Receivables Transfer
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Chapter 11 - Page 27

Receivables, Vision Operations (USA)


(N) > Interfaces > General Ledger
The General Ledger Interface program populates the GL_Interface tables with Oracle
Receivables transaction data. The data can be transferred in detail or summary format.
The GL start and end dates are used to specify the range of data to be transferred.
The General Ledger Interface produces an execution report that shows the total debits
and credits transferred from Receivables into the GL Interface table. Compare this report
to the Sales Journal and Receipts Journal totals to verify that they match.
The transactions may not balance if:
- Reports are run with different date ranges
- The General Ledger account is changed to be invalid before the transfer
- Other General Ledger Journal Entries affect the Receivable accounts

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Chapter 11 - Page 28

O2C Standard Reports

Standard Reports
Manufacturing and Distributions Manager, Vision Operations (USA)
(N) Reports
Use the Material Account Distribution Detail or Summary Report to:
View the accounts charged for inventory transactions
Reconcile to the inventory accounting transferred to the General Ledger
Receivables, Vision Operations (USA)
(N) Reports
Reports can be run as a concurrent process from the Submit Requests window.
Use these reports when needed to review activity at any time during the month.

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Chapter 11 - Page 29

Reconciling Receivables Transactions, Receipts, and Customer


Balances

Reconciling Receivables Transactions, Receipts, and Customer Balances


Receivables, Vision Operations (USA)
(N) > Reports > Accounting
Use the AR Reconciliation Report to start the reconciliation process. It will provide a summary
of your customer, transaction, receipt, and account balances for the period that you specify. It
can give you a starting point to identify areas that need research. Use these reports to get the
detailed information:
Sales Journal By Customer Review all transactions.
Transaction Register: Check that all items that can be posted are reflected on the Sales
Journal. The Sales Journal balance should match the total of the transactions here after
adding the credit memo total twice (because it is a negative on the Transaction Register
and a positive on the Sales Journal).
Receipts Register: Review a list of receipts.
Sales Journal By GL Account: Ensure that the Transaction Register matches the Sales
Journal.
Journal Entries Report: Review the details that make up the General Ledger journal
entries.
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Chapter 11 - Page 30

Receipts Journal Report: Review details of receipts that appear in the Journal Entries
report.
Aging Report: Use the last day of the prior month to get the outstanding opening balance.
Transaction Detail Report: Identify transactions that increase the outstanding opening
balance.
Adjustments Register: Identify any adjustments that affect the transactions for the month.
Unapplied Receipts Register: Determine customer balance after taking into account all
on-account and unapplied amounts
Applied Receipts Register: Identify receipts that reduce the outstanding opening balance.
Invoice Exceptions Report: Identify transactions that reduce the outstanding opening
balance. This report shows all transactions where the Open Receivables flag is set to No.
Therefore, the transactions do not display on the aging but do show in the Transaction
Register. This can occur when an item can be ordered in Order Management but not
invoiced, such as an internal ordered item.

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Chapter 11 - Page 31

Mapping Receivables Transactions to General Ledger Categories

Mapping Receivables Transactions to General Ledger Categories


If you experience reconciliation issues between transactions and categories use this map to
check your setup information.

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Chapter 11 - Page 32

GL Reconciliation Report for Cash Management

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Chapter 11 - Page 33

Project Close Cycle

Project Close Cycle


Interface costs to General Ledger: PA periods cannot be closed until all labor and usage
costs are successfully interfaced to Oracle General Ledger or Oracle Payables.
Interface CIP Assets to Oracle Assets: Asset lines can be interfaced to Oracle Assets only
after the underlying expenditure items have been interfaced to General Ledger.
Interface to Oracle Payables: Ensure that Oracle Payables has not closed its month until
all Oracle Projects expenditures have been interfaced, including:
- Supplier invoice adjustments
- Expense reports
- Intercompany and inter-project transactions

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Chapter 11 - Page 34

Overview of Project Closing Cycles

Overview of Project Closing Cycles


Project Periodic cycles group and summarize accounting transactions for reporting and
reconciliation. Most Oracle financial subledgers use the General Ledger (GL) fiscal cycles.
Use PA period end dates to determine which GL period to assign to the transactions.
PA periods in Oracle Projects do not have to match the General Ledger calendar period.
- PA periods typically are defined in terms of a week.
- PA periods may cross over multiple GL periods.
To record all accounting transactions for a given period of time in Oracle Projects to
facilitate summarizing time-defined costs for review and analysis using the online and
reporting functions in Oracle Projects.
To complete interfacing all accounting transactions for the period to the other integrated
financial systems, such as General Ledger and Accounts Payable.
To close the current reporting period and advance to the new period for cost tracking.
Closing Cycle Preparation Tasks are:
Verify that all preapproved batches are released or approved for the current reporting PA
period.

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Chapter 11 - Page 35

For preapproved batches, do a wildcard search from the Preapproved Expenditure Entry
window on the status field or expenditure date as appropriate.
If Oracle Projects is the direct data source for payroll or for reconciling labor costs to
payroll, verify that all time cards are entered or accounted for.
Run the AUD: Missing Timecards report.
Import all transaction import batches and try to resolve any rejected expenditures from
the transaction import file.
Run the PRC: Transaction Import process and review exception section.
One rejected expenditure item causes an entire expenditure to be rejected.Many costbased tasks can affect the revenue production processes if you do them during the closing
cycle.
Most revenue accrual relies on cost distribution being completed before generating
project revenue. Before accrual can occur, you must:
- Interface supplier invoices from Oracle Payables.
- Distribute labor, usages, and expense reports.
Closing Cycle Tasks
Once you have verified that all transactions have been accounted for during the closing
cycle preparation activities, you should place limits on general transaction processing by
users.
Creating new or adjusting existing expenditures during the final cost distribution
processes may cause reconciliation problems if not controlled (particularly in a
geographically dispersed user community).
The closing process includes the following tasks, listed in chronological order:
- Run final cost distribution processes. Optionally, run the PRC: Update Project
Summary Amounts process.
- Generate project allocations.
- Run final management reports.
- Interface cost transactions with General Ledger or Accounts Payable.
- Generate draft revenue for all projects.
- Distribute Borrowed and Lent Amounts. Can be run earlier if transfer price is not
dependent on revenue.
- Generate draft intercompany invoices and (optionally) provider cost reclassification
entries.
- Interface cross charge distributions to General Ledger.
- Run final management reports for revenue.
- Run processing for inter-project billing.
- Change current PA period status to Pending Close.
- Open new PA period. Allow new expenditure entry. Adjust expenditures and
perform cost distribution processes as necessary.
Post Closing Tasks: Post-closing tasks include the following items in chronological order:
Update project summary amount.
Open access to user maintenance tasks.
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Chapter 11 - Page 36

Interface revenue with General Ledger (for Oracle Project Billing only).
Set a new current reporting PA period.
Permanently close the old PA period.
Note: You can not close the PA period until all transactions have been transferred to the
General Ledger.

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Chapter 11 - Page 37

Closing a PA Period

Closing a PA Period
PA periods involve six statuses. The statuses are listed in order of life cycle:
Never Opened: No processing
Future: Allows new transactions to be entered but not processed
Open: Allows all entry and processing activity
Pending Close: Same as open but does not allow any new cost distribution lines to be
created
Closed: Stops all processing (A PA period can be closed only when all cost distribution
lines have been interfaced with General or Accounts Payable.)
Permanently Closed: Period cannot be reopened

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Chapter 11 - Page 38

Period-Closing Exception Reports

Period-Closing Exception Reports


(N) Others > Requests > Run (B) Submit Requests
From the Submit Requests window, you can select and submit each of the exception reports.
The report is sorted by:
PA period
Exception category
Exception reason
If you leave the exception category and exception reason blank, the report lists the total amount
and the total number of items.

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Chapter 11 - Page 39

Period Rates

Entering Period Rates


You must define and enable your currencies before you can enter period rates.
General Ledger uses the following rates to perform foreign currency translation in accordance
with SFAS #52 (U.S.).
Period-Average Rate Used to translate income statement accounts.
Period-End Rate Used to translate balance sheet accounts.
Revaluation Rate: General Ledger enters the inverse of the period-end rate as the revaluation
rate. Revaluations are performed on accounts that have foreign currency balances at the end of
the period to properly state the balances to the current converted functional currency amount.

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Chapter 11 - Page 40

Running Revaluation

Prerequisites
Before you run revaluation, you should do the following:
Define an unrealized gain/loss account.
Define a revaluation rate for each currency by period.
Revaluation is run at the end of each accounting period as part of the close process to revalue
balance sheet accounts that are denominated in a foreign currency in accordance with SFAS 52
(US). The journal is then reversed at the beginning of the next period. The process is repeated
until the transactions are settled. The Realized Gain/Loss will be recorded by the appropriate
subledger (Accounts Payable or Accounts Receivable) and transferred to the General Ledger at
the time the obligation is settled.
Revaluation can be run for a single foreign currency, the Euro and EMU currencies (during the
transition period), or for All currencies. When you run revaluation, General Ledger creates a
revaluation batch containing a separate journal entry for each revalued foreign currency. Note
that General Ledger creates the revaluation adjustments in your functional currency. General
Ledger automatically defines the reversal period as the next accounting period.

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Chapter 11 - Page 41

Revaluation Example

Revaluation Example
At the end of the accounting period, the revaluation process creates an unposted journal to
record the change in the converted balances to the Unrealized Gain/Loss Account. The jouranl
is posed, and then reversed at the beginning of the next reporting period.
In this example:
The original journal entry in Euro remains the same.
At period end, the exchange rate has changed to .81.
The receivable is still 10,000 Euro, but is now $8,100 US Dollars.
The offset of $100 is recorded in the Unrealized Gain account.
For more information on Revaluation, see the previous chapter on Multi Currency.

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Chapter 11 - Page 42

Accounting Calendar

Accounting Period Status


Each accounting period has one of the following five statuses:
Never Opened: You cannot enter or post journals.
Future Enterable: You can enter journals, but you cannot post. The number of future
enterable periods is a fixed number defined in the Set of Books window. You can change
the number of Future Enterable periods at any time.
Open: You can enter and post journals to any open period. An unlimited number of
periods can be open, but doing so may slow the posting process.
Closed: You must reopen Closed periods before you can post journals. You should
manually close periods after finishing your month-end processing.
Permanently Closed: Permanently Closed periods cannot be reopened. This status is
required to archive and purge data.

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Chapter 11 - Page 43

Balance Sheet Close

Balance Sheet Close


When you run Create Balance Sheet Closing Journals, journal entries are created to reverse
debits and credits of ending year-to-date actual balances for the period you want to close. The
balance, which is the net of the reversed asset and liability accounts, is transferred to the
closing account you specify. Before running this program, review the following activities:
Create an accounting calendar that includes two adjusting periods: one for the last day of
the fiscal year you are closing, and one for the first day of the new fiscal year. This does
not affect account balances in periods used for reporting.
Post any adjustment entries to the appropriate periods.
Print General Ledger accounting and analysis reports.
Ensure the period you are closing is an Open period.
Run the close process, Create Balance Sheet Closing Journals in the last adjusting period
of the fiscal year you want to close.
Post the balance sheet closing journals to zero-out balance sheet account balances.
Note: Should you need to make adjustments after the balance sheet closing journals are
posted, reverse and post the original closing entries, make your adjustments, then rerun
the closing process to capture the new adjustments.
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Chapter 11 - Page 44

In the first adjusting period of the new fiscal year, reverse the balance sheet closing
journals to repopulate the balance sheet accounts.
Post the generated reversing journals.
Balance Sheet Closing Journal Attributes: The journal entry that closes the balance sheet has
the following attributes:
Only actual balance types are closed out. Budget or encumbrance balances are ignored.
The effective date of your closing entries is the last day of the period you select in the
Parameters window, typically an adjusting period representing the last day of the fiscal
year.
General Ledger automatically creates a separate closing account for each balancing
segment if you specify an account range that includes multiple balancing segments.
Closing journals are marked for reversal in the period following the period the closing
journals were generated. To change the reversal method default, see Changing The
Default Reversal Method, below.
General Ledger closes functional currency balances only. Foreign currency balances are
ignored.

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Chapter 11 - Page 45

Income Statement Close

Income Statement Close


The Income Statement Closing Journals program generates journals to close out the year-todate (YTD) actual balances of a range of revenue and expense accounts. This program can be
submitted for any open period.
The Income Statement Closing Journals program can accept two account templates as
parameters for the closing journal.
The Retained Earnings account template
The Income Statement Offset account template
The Retained Earnings account template is a required parameter. The Income Offset account
template is an optional parameter.
Option 1: Income Statement Close: When you run the process, Create Income Statement
Closing Journals, and you enter an account for the field, Closing Account in the
Parameters window, entries are posted against each revenue and expense account in the
account range processed. It is the reciprocal of the account's YTD balance and zeroes out
each account. The amount posted to the retained earnings account is effectively the net
sum of the revenue and expense accounts' YTD balances. If there are income statement
balances in both functional and foreign currencies, the closing process produces a journal
batch that contains separate journals for each currency processed. For the functional
currency, the journal will only have entered amounts as converted amounts do not apply.
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Chapter 11 - Page 46

For foreign currencies, the journal will have both entered and converted amounts. Stat
account balances are not processed by the program.
Option 2: Income Statement Offset: When you run the process, Create Income Statement
Closing Journals, and you enter an account for the fields, Closing Account and Income
Offset Account in the Parameters window, the journal generated will be similar to that
described above except for the following:
The revenue and expense accounts included in the specified account range will not be
zeroed out. Instead, the program will take the net sum of the revenue and expense
accounts. This sum includes the balance in the income statement offset account. It will
then post the reciprocal of the net sum to the income offset account, in the appropriate
debit (DR) or credit (CR) column. The amount posted to the retained earnings account
will be the reciprocal of the amount posted to the income offset account. This retained
earnings amount will then also be equal to the net sum of the revenue and expense
accounts processed.

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Chapter 11 - Page 47

Historical Rates

Historical Rates
Historical rates are:
More precise than pre-owned rates with respect to equity accounts.
Defined before running translation to avoid having to retranslate your balances.
Can stabilize the translate balances by defining fixed historical rates for long-term
accounts.
Used with highly inflationary currencies to remeasure specific historical account
balances in accordance with U.S. FASB 8.

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Chapter 11 - Page 48

Translation Overview

Foreign Currency Translation


Foreign currency translation lets you restate your functional currency account balances into a
reporting currency.
Translate actual and budget balances from functional currency to foreign currencies for
online inquiries, reports, and consolidations.
If you have average balance processing enabled, you can translate average balances as
well as standard balances.
If you want to report financial results in Euro, you can use General Ledger's translation
feature to translate your account balances from your functional currency to Euro.
Run translation after you have completed all journal activity for an accounting period. If
you post additional journal entries or change your translation rates after running
translation for a period, you must retranslate.
Note: Additionally, if you change the account type for an account segment value and want to
retranslate your actual account balances, you must reenter or change the period-end and
average exchange rates for the periods that you want to retranslate.

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Chapter 11 - Page 49

Overview of Consolidations

Overview of Consolidations
The consolidation process combines the financial results of different companies, typically
combining subsidiary accounting information into a parent company for reporting purposes.
You can use the method that best suits your needs to consolidate financial information.
Financial Statement Generator (FSG):
- Use to consolidate financial information for businesses using a single set of books
or businesses using different sets of books that share the same calendar and chart of
accounts.
- Use recurring journals, mass allocation journals, and standard journals to create
intercompany elimination journal entries for multiple companies sharing the same
set of books.
Global Consolidation System (GCS):
- Use to consolidate financial information for multiple sets of books, diverse financial
systems, and geographic locations, including both Oracle and non-Oracle
applications.
-

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Chapter 11 - Page 50

Use the Consolidation Workbench in GCS to:


Access windows used to perform each consolidation activity
Monitor the status of your consolidation.
View history of past consolidations

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Chapter 11 - Page 51

Global Consolidation System (GCS) Features and Benefits

GCS Features and Benefits


Consolidation Workbench: View the status of your consolidation and monitor subsidiary
account balances for any changes that occur after the subsidiary data has been transferred.
Mapping Rules: Determine how your subsidiary account balances roll up into the parent.
State Controller: Access to every form you need for consolidations and guides you through the
consolidation process.
Consolidation Hierarchy Viewer: View the multilevel structure of your consolidation mapping
in a graphical format to see relationships and analyze set of books information.
Automatic Elimination Entries: Automatically generate journal entries to eliminate
intercompany balances based on rules you define.
Multilevel Drilldown: Drill down to access account balances, journal entries, and subledger
transactions.
Reporting: Generate standard or custom reports that can be published to a text file, spreadsheet,
or web site for review and analysis.
Integrated Analysis: Perform multidimensional analysis of consolidated financial data using
Oracle Financial Analyzer. Oracle Financial Analyzer is tightly integrated with Oracle General
Ledger. After consolidating your companies' information, you can analyze the data using
multiple scenarios.
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Chapter 11 - Page 52

Consolidating Sets of Books

Consolidating Sets of Books


After defining a consolidation to map accounting information from a subsidiary set of books
into a parent set of books, you must run the consolidation to generate the consolidated
information.
When a consolidation is run, Oracle General Ledger submits a concurrent process that
populates the GL_INTERFACE table with consolidation data.
You must run Journal Import to create an unposted consolidation journal batch in your parent
set of books, either at the time you run consolidation or later using the Import Journals
window.
For more information on Consolidation, see the previous chapter on Consolidations.

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Chapter 11 - Page 53

Reporting Options

Reporting Options
Reporting Function Legend
OI Online Inquiry
Std Standard Reporting
FSG Financial Statement Generator
ADI Applications Desktop Integrator
OFA Oracle Financial Analyzer
BIS Business Intelligence System
Disc Discoverer
RXi RXi Report Administration Tool

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Chapter 11 - Page 54

Performing Account Inquiry

Performing Account Inquiry


(N) Inquiry > Account
Use the account inquiry feature to view actual, budget, and encumbrance account balances for
a specific period or periods in either entered or translated currencies.
You can select one of three buttons to access the type of account information you want to view:
Show Balances: Displays PTD and YTD account balances by period for both detail and
summary accounts.
Show Journal Details: Lists all the journal batches and entries that affect the account
balance. From here you can drill down to the full journal entry and subledger transaction.
Show Variance: Displays actual vs. budget or encumbrance amounts and the variance for
PTD, QTD, YTD, and PJTD (project-to-date) time periods.
Note: The Account Inquiry window displays balances from posted journal entries. To get the
most up-to-date account balance information, be sure all journal entries are posted.

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Chapter 11 - Page 55

Helpful Closing Reports

Creating Standard Reports


Select the Report button on the State Controller to submit standard consolidation reports or (N)
Others > Reports > Run (B) Submit Requests
Consolidation Audit Report: Use this report to review the mapping of account balances
from your subsidiary set of books into accounts in your parent set of books for a specific
consolidation mapping. It reports the total of all subsidiary account balances that were
consolidated into each account in your parent set of books.
Consolidation Exception Reports:
- Unmapped Subsidiary Report: Use this report to determine if your consolidation is
complete prior to posting. It reports any subsidiary accounts, included in the
account range you specified for your consolidation transfer, with non-zero balances
that were not consolidated into your parent set of books because the accounts were
not mapped.
- Disabled Parent Account Report: Use this report to review all disabled accounts in
your parent set of books for which you tried to consolidate balances or transactions.
Consolidation Rules Report: This report prints the segment and account rules
defined for a specific consolidation mapping.

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Chapter 11 - Page 56

Consolidation Journals Report: This report lists subsidiary journal lines and the parent
accounts used for your consolidation. Use this report to review journal batches
consolidated across multiple sets of books.
Note: The Consolidation Audit Report, Unmapped Subsidiary Report, and Disabled Parent
Account Report are available only if you select the audit mode run option when transferring
your subsidiary data.
Select (N) Others > Reports > Run (B) Submit Requests to run standard trial balance reports:
Detail Trial Balance Report: Review your general ledger actual account balances and
activity in detail. You can run this report for balances and activity entered in your
functional currency or STAT, or translated to a foreign currency. The report prints a line
for each of your accounts and lists them in ascending order by account segment value.
For each account, the report prints the account segment value, account segment value
description, beginning balance, period activity, and ending balance for the period you
specify. General Ledger reports debits as positive amounts and credits as negative
amounts.
Summary Trial Balance Report: Review general ledger actual account balances and
activity summarized by account segment value. You can run this report for balances and
activity entered in your functional currency or STAT, or translated to a foreign currency.
The report prints a line for each account segment value and lists them in ascending order.
For each account segment value, the report prints the value, description, beginning
balance, net of all debit or credit transactions, and ending balance for the period you
request.
Translation Trial Balance Report: Review your account balances and period activity after
running translation. General Ledger prints a separate page, including totals, for each
balancing segment value, listing accounts in ascending order by account segment value.
For each translated account, the report prints the description of the account segment
value, account type, beginning balance, debits and credits, rate adjustment, and ending
balance.

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Chapter 11 - Page 57

Summary

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Chapter 11 - Page 58

Financial Reporting
Chapter 12

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Financial Reporting
Chapter 12 - Page 1

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Financial Reporting
Chapter 12 - Page 2

Financial Reporting

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Financial Reporting
Chapter 12 - Page 3

Objectives

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Financial Reporting
Chapter 12 - Page 4

Objectives

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Financial Reporting
Chapter 12 - Page 5

Reporting Options

Reporting Options
Reporting Function Legend
OI Online Inquiry
Std Standard Reporting
FSG Financial Statement Generator
ADI Applications Desktop Integrator
OFA Oracle Financial Analyzer
BIS - Business Intelligence System
Disc Discoverer
RXi - RXi Report Administration Tool
Additional details about each of the reporting options are available in the following pages.

Copyright Oracle, 2009. All rights reserved.

Financial Reporting
Chapter 12 - Page 6

Online Inquiry

Online Inquiry
Oracle Applications provide broad online inquiry and analysis capabilities. With Oracle
General Ledger, you can use Oracle's inquiry functionality to drill from summary account
balances to detail balances, and to complete journal entries. You can drill to complete views of
any underlying Oracle subledger transactions for further accounting entry analysis, including
transactions from Receivables, Payables, Projects, Assets (except depreciation), Purchasing,
Inventory, and Work in Process.
Drilling Down to Detail Balances
You can drill down to detail account balances, review journal entries, then drill down
further to your subsidiary sets of books, review subsidiary account balances, then drill
down even further to subsidiary journal entries and even to your subsidiaries' subledger
details.
For example, while analyzing total consolidated sales, you may want to determine how
much each subsidiary contributed to the total amount. Simply drill down from the
consolidated sales balance to any subsidiary sales account balance. From there, you can
view account details and journals. If you still require more information, drill down further
to the subledger transactions that contributed to your total consolidated sales balance.
During the drill down process, you can view your accounting entries in a T-Account
format or a Summary Activity format. The T-Account format eases accounting analysis
Copyright Oracle, 2009. All rights reserved.

Financial Reporting
Chapter 12 - Page 7

by graphically displaying your accounting entry in T-Accounts for both summary and
detail financial information. The Summary Activity format displays your accounting
entries in a trial balance layout.
For more information, refer to Oracle General Ledger User Guide or 11i General Ledger
Financial Management Fundamental Topic Journal Entries on Performing Account
Inquiry and Drill Down to Oracle Subledgers.

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Financial Reporting
Chapter 12 - Page 8

When to Use Online Inquiry

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Financial Reporting
Chapter 12 - Page 9

Standard Reports and Listings

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Financial Reporting
Chapter 12 - Page 10

Standard Reports and Listings

Standard Reports and Listings


Oracle General Ledger provides several types of reports and listings to meet your business
needs. All of the information in these reports and listings is also available online.
You can obtain account analysis information, budget information, chart of accounts listing, and
many other types of data without customization.

Copyright Oracle, 2009. All rights reserved.

Financial Reporting
Chapter 12 - Page 11

When to Use Standard Reports

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Financial Reporting
Chapter 12 - Page 12

Financial Statement Generator Features

Financial Statement Generator Features


Oracle General Ledger's Financial Statement Generator empowers you to do the following:
Generate financial reports, such as income statements and balance sheets, based upon
data in your general ledger.
Apply security rules to control what financial information can be printed by specific users
and responsibilities in any reports they run using FSG.
Define your reports with reusable report objects, making it easy to create new reports
from the components of reports you've already defined.
Design custom financial reports to meet specific business needs.
Print as many reports as you need, simultaneously.
Print the same report for multiple companies, cost centers, departments, or any other
segment of your account structure, in the same report request.
Schedule reports to run automatically.
Produce ad hoc reports whenever you need them.
Print reports to tabdelimited files for easy import into clientbased spreadsheet
programs.

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Financial Reporting
Chapter 12 - Page 13

Financial Statement Generator Features

Financial Statement Generator Features


You can define custom financial reports, such as income statements and balance sheets, online
with complete control over the rows, columns, and content of your report. You can control
headings, descriptions, format, and calculations in addition to the actual content. The reusable
report components make building reports quick and easy. You can copy a report component,
make minor edits, then apply the report component to a new report without having to create a
new report from scratch.

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Financial Reporting
Chapter 12 - Page 14

FSG Hierarchical Security

FSG Hierarchical Security


Uses the same segment value security rules based on parent hierarchies as those defined
for online inquiries and most major general ledger standard reports.
- This allows you to protect sensitive financial information from being viewed in
FSG reports by any responsibility that has security rules assigned.
Significantly simplifies the definition and maintenance of complex security rules.
- When you add new segment values, you do not have to update the security rules if
that value is assigned to a parent value with security rules already defined.
- If you define a security rule to include or exclude a parent segment value, any FSG
report that you run from the responsibility to which you assigned this rule will
include or exclude data for the parent segment value and its child values
accordingly.
- Any additions or changes to your organization rollup structures will be reflected in
both your reporting and security hierarchies simultaneously.

Copyright Oracle, 2009. All rights reserved.

Financial Reporting
Chapter 12 - Page 15

Defining Row Sets

Defining Row Sets


A single row set can be used for many different reports. For example, Row Set A above is used
for an Income Statement with current information for Company 1. It can also be used to
produce an Income Statement by Division, such as in the second example above, or for any
other entity (company, group, or cost center), or for the same entity with a yearly comparison
column.

Copyright Oracle, 2009. All rights reserved.

Financial Reporting
Chapter 12 - Page 16

Define Column Sets

Define Column Sets


Column sets define the format and content of columns in your financial reports. Column
sets include headings and subheadings, currency assignments, amount types, exception
conditions, and calculation columns for totals.
You can define columns one by one as you do for row sets, or you can build a column set
graphically.
When you define a column set, you indicate which Oracle General Ledger balance type
you want to include in the column.
Although you normally assign accounts to your rows, you can also assign an individual
account combination or range of account combinations to each column.
You can define calculations to perform a variety of complex computations in your report
The calculations can reference other columns in the report.
You can define a new column set, copy information from an existing column set, or use
one of the standard column sets provided by Oracle General Ledger.

Copyright Oracle, 2009. All rights reserved.

Financial Reporting
Chapter 12 - Page 17

When to Use FSG Reports

Copyright Oracle, 2009. All rights reserved.

Financial Reporting
Chapter 12 - Page 18

Applications Desktop Integrator Elements

Applications Desktop Integrator Elements


Report Wizard
Provides a spreadsheet-based interface to General Ledger's financial reporting engine, the
Financial Statement Generator (FSG).
reQuest Center
Submits and monitors your concurrent requests, automatically notifying you when your
financial reports, journal uploads, or budget uploads finish processing.
Analysis Wizard
Combines multidimensional analysis with report drill-down completely within Microsoft
Excel.

Copyright Oracle, 2009. All rights reserved.

Financial Reporting
Chapter 12 - Page 19

Applications Desktop Integrator Report Wizard

Applications Desktop Integrator Report Wizard


Applications Desktop Integrator (ADI) spreadsheet interface allows users to manage the
reporting process within the comfort and familiarity of a spreadsheet, while still taking
advantage of FSG's reusable and interchangeable report objects, server-based processing for
high performance, and report scheduling for efficient use of system resources.

Copyright Oracle, 2009. All rights reserved.

Financial Reporting
Chapter 12 - Page 20

When to Use ADI Report Options

Copyright Oracle, 2009. All rights reserved.

Financial Reporting
Chapter 12 - Page 21

Oracle Financial Analyzer

Oracle Financial Analyzer


Oracle Financial Analyzer is Oracle's On-Line Analytical Processing (OLAP) application
which ena