Oracle E-Business Suite - Release 12

Oracle General Ledger

Technology Course Material
April-2009

15 April 2009 1
Contents

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

15 April 2009 2
Oracle General Ledger – Introduction

15 April 2009 3
Overview

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

15 April 2009 4
Oracle General ledger & Other Modules

Oracle Order Oracle

management Receivables Oracle
Fixed Assets

Accounting Information Flows into General Ledger

from all sub-ledger Modules
Oracle
General Ledger
Oracle Inventory
From Journal Entries Lines in General Ledger
one can drill down to transactions level of Sub-ledgers

Oracle
Cash
Management
Oracle
Purchasing Oracle Payables

***Above List of modules integrating to GL is demonstrative and not exhaustive list.

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Oracle General ledger Overview

Open
Ledger
Period Enter /
Import/
Generate
Journals
Review/
Post/Report

Revalue/
Translate/
Consolidate
Account
Inquiry/
Oracle General Ledger FSG/
Setups : Standard Report
-Accounting Manager Setup
-Legal Entity
-COA
- Ledger
-Ledger Sets
Close
-Data Access Sets
Accounting
GL Period

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Oracle General Ledger – Accounting Manager Setup

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Accounting Setups

Accounting Setup Manager Screen is used to create Ledger and complete

Ledger related setups . It also allows creation of Legal Entity and Operating
Units.

Ledger is replacement of prior versions Set of Book. Additional component

in Ledger is Accounting Convention

9 One needs to activate currencies and create Chart of Account first before going to this
screen.
9You can also create Legal entity & operating unit from Accounting Setup manager and also
assign your ledger to Legal entity.
9You can also associate a secondary ledger to your primary ledger .
9You can also link Reporting currencies to your primary ledger which will replace your earlier
version of MRC- Multiple Reporting Currencies.

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Setup- Financials- Accounting Manager

Use this Tab to

create legal entity

Use this window to

search existing
Ledgers or create a
new Ledger

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

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

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

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

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Specify Ledger Components

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Add Reporting Currencies

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Save Accounting Setup

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Complete Ledger – Basic Accounting Setup

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Review Ledger Setup and complete remaining setup

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

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Specify Retained Earnings account

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Complete remaining Options

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Complete Advanced Options

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Assign Balancing segment value to Ledger

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Currency Translation Options

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Complete Ledger Setup

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General Ledger Accounting Setup Program is auto
submitted on completion

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Review the General Ledger Accounting Setup
Program

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Review the Ledger Definition

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Create Legal Entity

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Ledgers Created

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Associate Legal Entity to Ledger

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Create Operating Unit and Assign it to Legal Entity

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Run Replicate Seed Data Program from System
Administrator Responsibility

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Create General Ledger Responsibility

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Setting up Profile Option: GL Ledger Name

Profile Option: GL Data Access Set

Automatically set

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

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

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First Period Opened

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

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Setup Profile Option:GL: Data Access Set

Result – Journal Entry Screen you can select any of the

Ledger assigned to Data access set

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Ledger Sets

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Concurrent Request fired for compilation on saving
Ledger Set definition

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Practice Exercise

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

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Oracle General Ledger – Key Setups

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Segment values

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Cross Validation Rules

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Security Rules

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GL Accounts Combinations

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Shorthand Alias

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Rollup Groups

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Summary Accounts

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Sequences

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Setup – Journal - Sources

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Journal Categories

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Auto Post

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Auto Reverse

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Setup- Currencies

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Setup- Tax Options

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Journal Approval Limits

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Setup-Others-Schedules & Maintenance

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Practice Exercise

1. Review the Setup forms covered in this Key set up session.

2. Create Values in all your Value sets.
3. Create Your own Journal Category, Journal Source.
4. Create Security Rules .
5. Create Cross Validation Rules

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Oracle General Ledger – Journal Entry

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Journal Entry- Batches

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Journals- Manual Journal Entry

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Posting Journal

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Reversing Journals
1.Press Reverse Button on the Posted Journal
which needs to be reversed

2. Choose Period in which reversal

should have accounting impact

3. Concurrent Program for

Reversal will be submitted

4. Reversed Journal Created

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Tax Journals
1. Enable Journal Entry tax at
Ledger Lever in Accounting Setup

2. Complete Tax Regime, Tax Code & Tax Rate

Set up in E-Business Tax Responsibility

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Set up Tax Options
in General Ledger

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Tax Journal Created

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Auto Copy Batch

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Journal Wizard

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GL: Default Desktop Viewer Profile Option for Excel
Versions

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Notification for Prior Period Journal Entry

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Journals – Mass Allocation

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Recurring Journals

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Multiple Recurring Journals Created

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Generate Journal – Reversal, Allocation, Recurring
& Carryforward

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Schedule Allocation & Recurring Journal

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Auto Allocation – Workbench/View Status

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Journal Import
You can import Journals for multiple ledgers

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Encumbrance Journal

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Practice Exercise

1. Create Simple Functional Journal.

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

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Oracle General Ledger – Journal Approval

15 April 2009 85
Journal Approval

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

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Ledger Setup – Enable Journal Approval

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Journal Source level

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Employee Hierarchy

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Profile Options

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Authorization Limits

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Enter Journal Exceeding Preparer limits

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Approver Approves Journal

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

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Oracle General Ledger – Budgets

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Budgets

15 April 2009 96
Define Budget

Open: The budget is available for update and budget entry.

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

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Open Next Budget Year

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Enter Display Sequence

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Budget Organization – Account Ranges Assignment

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Budgetary Control Options

15 April 2009 101

Enter Account Assignments

15 April 2009 102

Enter Budgetary Control Options

15 April 2009 103

Enter Budget Journal

15 April 2009 104

Create Budget Journal

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View Results

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Budget Journal Created

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Enter Actual Journal against Budgeted Account

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View Results

15 April 2009 109

Changed Amount to INR 45000

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View Results

15 April 2009 111

Practice Exercise

1. Create Budget & Budget Organization

2. Simulate Advisory and None Scenario.
3. Simulate QTD,YTD and PJTD scenario.

15 April 2009 112

Oracle General Ledger – Inquiry

15 April 2009 113

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

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Account Analysis and Drilldown

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Drill Down to Account balances Level

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Drill Down to Journal batches Level

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Drill Down to Journal Level

15 April 2009 118

Average balance Inquiry Screen

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Budget Inquiry Screen

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Journal Inquiry Screen

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Funds Available Inquiry Screen

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Account Analysis and Drilldown

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Export Details

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Create View

15 April 2009 125

Practice Exercise

1. Perform Inquiry for your Journals & Accounts.

2. Use Drill down feature to check balances details.
3. Use Account Analysis drill down.
4. Export the details.
5. Modify/Create the View

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Oracle General Ledger – Foreign Currency
Transactions

15 April 2009 127

 Process Involved due to Foreign Currency

In Ledger if Reporting Currencies setup is used then revaluation journal is created automatically.

•Functional Currency is specified at Ledger Level.

•Transactions in Sub-Ledger or Journals in GL may be entered in the Foreign currency due to
the nature of transaction.
•Company may be required to report its balances in currency other than Ledger Functional Currency.
•In Such scenario Conversion , Revaluation and Translations are processes which are involved.

Below are some scenarios where Subsidiary company’s transaction and Functional currency may be
same or different than the Parent company and types of processes which will be involved in such
scenarios.

Remeasurement includes Conversion and Revaluation. Conversion happens at the time of transaction and Revaluation
happens when program –Revaluation is run for a range of accounts and for a period.

15 April 2009 128

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

15 April 2009 129

Ledger Setup – Reporting Currency

Functional Currency

Reporting Currency

Currency translation Options

15 April 2009 130

Creation & Assignment of Translation Adjustment
account

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Enter Foreign Currency Journal
USD Journal

Conversion

15 April 2009 132

Submitting Translation

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Check Trial Balance and compare functional and
Foreign currency trial

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Trial balance Output - INR

Trial balance Output - USD

15 April 2009 135

Currency – Revaluation

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

15 April 2009 136

Run Revaluation Program

15 April 2009 137

Run Revaluation Program

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

15 April 2009 139

Change Currency Rate to 60 instead of 50

15 April 2009 140

Resubmit Revaluation Program

15 April 2009 141

Revaluation batch created as per Output file

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Revaluation Journal

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Practice Exercise

1. Enter Currency Daily Rates.

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

15 April 2009 144

Oracle General Ledger – Consolidation

15 April 2009 145

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

15 April 2009 146

Consolidation Methods

There are two methods you can use to achieve consolidated results with
Oracle Applications:

1. Reporting Consolidations: (Discussed in FSG section in next slides)

Define an FSG report which consolidates data stored in a single ledger
or which sums data across separate ledgers on the same applications
instance.

2. Data Transfer Consolidations:

Serves global enterprises with multiple ledgers or multiple applications

instances. With data transfer consolidations, you move your financial
data from diverse ledgers and data sources into a single consolidation
ledger. You can report on and analyze consolidated financial
information from this consolidated ledger.

15 April 2009 147

Consolidation Steps

Prepare Consolidation Data- Revalue and Translate Subsidiary balances.

Create Consolidation & COA mappings.
Transfer Data.
Eliminate Balances.
Report.

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COA Mapping

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Segment Mapping Rules

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Consolidation Definition

In R12 you can consolidate your Reporting

currency ledger with parent Ledger

15 April 2009 151

Transfer- Data and Data Set

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Elimination – Define & Generate
The Oracle General Ledger Automatic Intercompany Eliminations program eliminates intercompany
balances. Create an elimination set which is a batch of one or more elimination journal entries.

Full Eliminations: Elimination sets can optionally use an elimination company to fully eliminate a group of
intercompany elimination entries for a set of subsidiaries.

If your elimination journals are out of balance, you can specify balancing options to either allow out of
balance journals to be created or to post the net difference to an alternative account. In addition, threshold
rules can be applied to prevent the creation of the balancing lines if the net difference exceeds a specific
amount, a percentage of a particular account, or a percentage of the total journal.

You generate the elimination set every period to automatically create the elimination journal entries. You
have the option of automatically posting the journal now or you can wait till you review it to post.

You can also use the Consolidation Workbench to track the elimination status of your elimination sets and
post any generated elimination sets.

15 April 2009 153

Practice Exercise

Run revaluation and translation for your Subsidiary book.

Create Consolidation mappings.
Run consolidation.
Transfer Data.
Eliminate entries.
Review Consolidated batch.
Post Consolidated batch in parent book.

15 April 2009 154

Oracle General Ledger – FSG (Financial Statement
Generator)

15 April 2009 155

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

15 April 2009 156

Required Component

Row Set
Column Set
Report

Optional Component
Content Set
Row Order
Display Set/Group
Report Set

15 April 2009 157

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

Line Account Entered: Debit Entered: Credit

1 101.101.101.10010.000.000 250000

2 101.201.101.10010.000.000 200000

3 101.301.101.10010.000.000 150000

4 101.401.101.10010.000.000 100000

5 101.501.101.10010.000.000 50000

6 101.000.101.40010.000.000 750000

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FSG-Row Set

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15 April 2009 160
Column Set

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15 April 2009 162
Report

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

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What if – Use T-T-T-T-T-T in the row set assignment

What if – Use T-T-E-T-T-T in the row set assignment ( Expand

in Cost Centre segment and Total in all others)

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

15 April 2009 166

Row Order – Ranking by Column and Display 3
columns

Row Order – Change Display of 3 columns and

change of Sequence.

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Content Set

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

Content Set Options

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Output with Content Set to Override Row set
Definition.

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FSG –Display Set & Group

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FSG – Report Set

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FSG-Auto Copy

Options in Auto Copy

15 April 2009 173

Practice Exercise

1. Create a Row Set

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

15 April 2009 174

Oracle General Ledger – FSG & XML Publisher

15 April 2009 175

 FSG & XML Publisher
Run FSG From Financial Reports window with Output option
as XML
Step 1 – Go to Reports- Run-Financials and select FSG report which is required in
XML format

Step2 – After Concurrent Program is complete. From SRS window Select XML
Report Publisher and in parameter select your Request which completed In Step1.
Select Right values in Output format chose either Excel/HTML/PDF or RTF

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Sample PDF Output generated

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

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Output from Program - Publish FSG Report

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FSG & XML Publisher

Republish the FSG report against a different report template

15 April 2009 180

Practice Exercise

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

15 April 2009 181

Oracle General Ledger – Profile Options

15 April 2009 182

 Oracle General Ledger – Profile Options

GL : Default Desktop Viewer GL: Data Access Set

GL Account Analysis Report: Enable Segment Value Security on GL: Income Statement Accounts
Beginning/Ending Balances Revaluation Rule

GL AutoAllocation: Continue to Next Step if No Journal Created GL: Journal Review Required
GL: Launch AutoReverse After Open
GL Consolidation: Cross Instance Workflow Notification Contact Period

GL Consolidation: Exclude Journal Category During Transfer GL: Owner's Equity Translation Rule

GL: Reverse Transaction Codes on

GL Consolidation: Preserve Journal Batching Un-natural Balances

GL:Create Encumbrance Entries for

GL Consolidation: Preserve Journal Effective Date Budgetary Accounts

GL Consolidation: Separate rows for debit and credit account balances in

consolidation journal GL:Create Interfund Entries

15 April 2009 183

Oracle General Ledger – Profile Options

GL Daily Rates: Cross Rates Override GL:Enforce Account Category Balancing

GL Journal Import: Separate Journals by Accounting Date Journals: Allow Multiple Exchange Rates
Journals: Allow Non-Business Day
GL Ledger ID Transactions
Journals: Allow Posting During Journal
GL Ledger Name Entry

GL Revaluation: Days to Roll Forward Daily Rates Journals: Allow Preparer Approval

GL Revaluation: Tracking by Cost Center Journals: Default Category

GL Revaluation: Validate Gain/Loss Accounts Journals: Display Inverse Rate

GL Summarization: Accounts Processed at a Time Per Delete
Worker Journals: Enable Prior Period Notification

GL Summarization: Maintenance Index Selection Factor Journals: Find Approver Method

GL Summarization: Number of Delete Workers Journals: Mix Statistical and Monetary

GL Summarization: Rows Deleted Per Commit Journals: Override Reversal Method

GL Translation: Revenue/Expense Translation Rule GL: Auto Allocation Rollback Allowed

GL: Archive Journal Import Data

15 April 2009 184

Practice Exercise

1. Review Relevant Profile Options by logging as System Administrator

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15 April 2009 186