Reconciling Payables

Posted: May 12, 2020 in Account Payables

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Add the current period’s posted invoices (total invoice amount from the Posted Invoice Register) and subtract the current period’s

posted payments (total cash plus discounts taken from the Posted Payments Register) from the prior period’s Accounts Payable

Trial Balance. This amount should equal the balance for the current period’s Accounts Payable Trial Balance.

For example, you are closing your accounting period for April and you have just posted your final invoice and payment batches

to your general ledger system. To reconcile your accounts payable activity for April 2020, make the following calculation:

Accounts Payable Trial Balance (As of Date : 31-MAR-2020)             +

Payables Posted Invoice Register (Period From and To : APR-20)      –

Payables Posted Payment Register (Period From and To : APR-20)

= Accounts Payable Trial Balance (As of Date 30-APR-2020)

GL Consolidation
Posted: May 22, 2020 in General Ledger

Consolidation provides a feature to combine the financial results of multiple companies, even if their sets of books use different

currencies, accounting calendars, and charts of accounts.

Steps with Test case

So we are consolidating the Journals from CAD and INR ledgers to USD Legder.

1. Navigate to General Ledger Responsibility (Country Specific) -> Currency -> Translation and submit translation for both

ledgers journals, CAD and INR Journals to USD.

2. Navigate to General Ledger Responsibility (Country Specific) -> Setup -> Accounts -> Chart of Accounts Mapping and create

COA mappings for CAD to USD and INR to USD

Balancing Segments for CAD ->05

Balancing Segmens for INR   -> 01, 02

Balancing Segmets for USD   -> 03, 04

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Company segment alone we want to replace the balancing segment of CAD (05) with one of the balancing segment of USD (03).

That is the reason we have used assign Single value action for Company. Rest all segments we are copying from source code

combination.
Company segment alone we want to replace the balancing segment of INR (01 and 02) with one of the balancing segment of

USD (03). That is the reason we have used Roll Up Rules action for Company. It will replace 01 or 02 with o3 balancing segment

value. Rest all segments we are copying from source code combination.

3.  Navigate to General Ledger Responsibility (Country Specific) -> Consolidation -> Define -> Consolidation and create

Consolidation mappings for CAD to USD and INR to USD

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4. Navigate to General Ledger Responsibility (Country Specific) -> Consolidation -> Define -> Consolidation Set
5. Navigate to General Ledger Responsibility (Country Specific) -> Consolidation -> Transfer -> Data Set
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6. Navigate to General Ledger Responsibility -> Journals and search

You can see the consolidated Journals
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Tables
 GL_CONSOLIDATION

 GL_CONSOLIDATION_ACCOUNTS

 GL_CONSOLIDATION_SETS

 GL_CONS_SET_ASSIGNMENTS

 GL_CONS_BATCHES

 GL_CONSOLIDATION_HISTORY

Mass Allocation
Posted: May 22, 2020 in General Ledger

Mass-Allocation in General Ledger can be used to allocate amounts across a group of Cost center, Departments, Divisions and

Ledgers using a Formula.

For example, using mass allocation rent expenses can be allocated to different departments on the basis of the area occupied by

the department.

Mass allocation uses a formula and account segment types for allocating the balances.

Mass allocation formula can also use parent values where in balances can be allocated to the all the child values based on the

percentage specified for each of them.

Formula

A* B/C

Where:

——–

A = Cost Pool

B = Usage Factor

C = Total Usage

Mass-Allocation formula has three segment types: Looping, Summing and Constant.
 Looping (L):  Looping should be assigned to a parent segment value to include each child value assigned to the parent

value in the formula.

 Summing(S): Summing should also be assigned to a parent segment value only to sum the account balances of all the

child segment values assigned to a parent.

 Constant(C): Constant type is assigned to a child segment value to use the detail account balances associated with the

child value.

Test Case

1. Navigate to General Ledger Responsibility -> Journals -> Enter, Create and Post the Journal

2. Navigate to General Ledger Responsibility -> Journals -> Enter, Create STAT Journal and Post it.

Statistical journals are created to record non financial information. Statistical journals will be entered with STAT currency and

these statistical journal entries need not be balanced.

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3. Navigate to General Ledger Responsibility -> Journals -> Define -> Allocation
Click on formulas and enter the Formula details
Lines Account Type Ledger Currency Currency Type Entered Curr

A Vision Operations-01-210-0015-0000-000 C.C.C.C.C.C USD  Total

B Vision Operations-01-100-0015-0000-000 C.C.L.C.C.C USD  Statistical STAT

C Vision Operations-01-100-0015-0000-000 C.C.S.C.C.C USD  Statistical STAT

T Vision Operations-01-100-0015-0000-000 C.C.L.C.C.C

O Vision Operations-01-210-1110-0000-000 C.C.C.C.C.C

So what we are doing is we are allocating 1000 amount to amount 3 departments based on the % defined in STAT Journal which

is 50 (for Department -109), 30 (for Department -110) and 20(for Department -115).

All these departments are added to Parent Department 100 and that is used in formula.
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So the Logic is ->

1000(Segment Type is Constant, its amount from Journal) *

50 or 30 or 20 (Segment Type is Looping which will pick one after other from STAT journal) /

100 (50+30+20 , this case segment type is Summing)

Click on “Validate All” button and it Submits “Validate MassAllocations” program.

Click on “Validate All” button and it submits “Run MassAllocations” program.
Enter the details and Submit.
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Get the Journal name from program Output

4. Navigate to General Ledger Responsibility -> Journals -> Enter, search the above Journal name
 4th line is the Offset account we had added to formula.

Tables

 GL_ALLOC_BATCHES

 GL_ALLOC_FORMULAS

 GL_ALLOC_FORMULA_LINES

 GL_ALLOC_HISTORY

 GL_AUTO_ALLOC_BATCHES

Journal Translation
Posted: May 20, 2020 in General Ledger

Translation is the process of calculating the equivalent of the account balances from your functional currency to another currency.

You can translate your actual and budget account balances from your functional currency to another currency.

This process translates balances only, it does not translate individual transactions.
 Rates  and Rule Used for Translation
ACCOUNT TYPE RATE TYPE RULE

Assets & Liabilities Period End Year-to-Date

Revenues & Expenses Period Average Period-to-Date

Owner’s Equity Historical Rate or Amount Period-to-Date

Translation Rules Translated Period Amount

Period-to-Date (PTD) Rule Period Average Rate X PTD Ledger Currency Balance

Year-to-Date (YTD) Rule Period-End Rate X YTD Ledger Currency Balance -Beginning Translated Balance

Profile Options

 GL: Owner’s Equity Translation Rule -> PTD / YTD

 GL Translation: Revenue/Expense Translation Rule -> PTD / YTD

Setup with Examples

1. Profile setups:

 “GL: Owner’s Equity Translation Rule” Profile is set to “PTD”

 “GL Translation: Revenue/Expense Translation Rule” is not Set.

2. Navigate to General Ledger Responsibility -> Setup -> Financials -> Accounting Setup Manager -> Accounting Setups, search

the Ledger and click on Update Accounting Options.

First click update against Primary ledger and then in Ledger Options , you can see the Currency Translation Options:

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Then click update against Reporting Currency and click on update against the your transactional  currency. Then you can see the

reporting currency Translation options:

Note

The Rate Types defined for the ‘Reporting Currency’ are what are used in the Translation.

If there is no Reporting Currency defined, and you are running Translation for the first time for a currency, the rate types (Period

End Rate Type and Period Average Rate Type) defined for the primary ledger will be used in the Translation.
The daily rate of the assigned type that is defined for the last day of the period is used as the translation rate. If the rate for the

last day of the period does not exist, translation searches back within the period until a rate is found. If no rate exists for the

period, translation ends in an error.

3. Navigate to General Ledger Responsibility -> Setup -> Currencies -> Rates -> Daily, ensure the conversion rates are set for

both period-average rate and period-end rate type.

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4. Navigate to General Ledger Responsibility -> Currency -> Translation

Once you click Translate button, it submits “Translation” program.

TRANSLATED_FLAG of GL_BALANCES will be updated to ‘Y’.

Reports

Submit “Trial Balance – Translation” report to review your account balances and period activity after running translation.

Purging

Navigate to General Ledger Responsibility -> Setup -> System -> Purge, to purge the translated Balances (if required)
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Tables

 GL_TRANSLATION_TRACKING

Relevant columns – bal_seg_value, ledger_id, target_currency, earliest_ever_period_name, earliest_never_period_name,

actual_flag

 GL_TRANSLATION_STATUSES

Relevant columns – bal_seg_value, ledger_id, target_currency, actual_flag, status

STATUS possible values :

‘C’ – the translated balances are current;

‘U’ – the translated balances are not current

Journal Revaluation
Posted: May 19, 2020 in General Ledger

Revaluation reflects the change in conversion rates between the date of the transaction and the current market rate of each

currency.

It revalues the ledger currency equivalent balances for the accounts and currencies you select, using the appropriate current

market rate for each currency.

 At the end of each accounting period the open transactions balances value is recalculated for each foreign currency using the

current exchange rate. The process generates differences which get recorded under ‘unrealized gains and losses’.

When running Revaluation, a journal entry is created that either increases or decreases the functional currency amount for that

account, based on the fluctuation of the exchange rate. The resulting gain or loss amounts are posted to Gain/Loss or Cumulative

Translation Adjustment account you specify. This process creates a Revaluation batch containing separate journal entries for each

revalued foreign currency.

When running revaluation, the process goes out and picks up the balances that are stored for the foreign currency, where the

translated_flag = “R”, applies the revaluation rate that has been chosen, and calculates a new functional currency amount. It then

calculates what is already existing in the table for the functional currency amount. It compares the two figures: What is wanted

for the new functional currency balance to be vs. what the current functional currency balance is. The difference between these

numbers is then the revaluation adjustment.

Revaluation Formulas

Revaluation will consider either PTD (Period To Date) or YTD (Year To Date) balances formula as per the account type and

profile option setup.

YTD Balances formula is used for the below account types:

 Asset

 Liability

 Ownership’s Equity

 Expense (if profile option “GL: Income Statement Accounts Revaluation Rule” is set to YTD)

 Revenue (if profile option “GL: Income Statement Accounts Revaluation Rule” is set to YTD)

PTD Balances formula is used for the below account types:

 Expense (if profile option “GL: Income Statement Accounts Revaluation Rule” is set to PTD)

 Revenue (if profile option “GL: Income Statement Accounts Revaluation Rule” is set to PTD)
YTD: ACCOUNT AMOUNT =

((begin_balance_dr + period_net_dr – begin_balance_cr – period_net_cr) * revaluation_rate))

LESS

(begin_balance_dr_beq + period_net_dr_beq – begin_balance_cr_beq – period_net_cr_beq)

PTD: ACCOUNT AMOUNT =

((period_net_dr – period_net_cr) * revaluation_rate))

LESS

(period_net_dr_beq – period_net_cr_beq)

Setup with Example

“GL: Income Statement Accounts Revaluation Rule” profile is set as YTD (year-to-date).

1. Navigate to General Ledger Responsibility -> Inquiry -> Account, and enter Accounting Period,Currency and Account

Click on Show Balances

2. Navigate to General Ledger Responsibility -> Currency -> Revaluation and enter the details as below:
Click on Revalue Button.

Enter the period, effective date and Rate and submit “Program – Revalue Balances” program.

Below is the output

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3. Navigate to General Ledger Responsibility -> Journals and search with the Journal batch name got from “Program – Revalue

Balances” output.
 So below is the way value is derived:

9259.20 (Converted YTD from step 1) –

( 5760 (YTD from Step 1) * 1.25 (Rate from above journal))

= 9259.20 – 7200 = 2059.2

Below query can be used to fetch the values:

SELECT code_combination_id,

translated_flag,

currency_code,

period_net_dr,

period_net_cr,

begin_balance_dr,

begin_balance_cr,

period_net_dr_beq,

period_net_cr_beq,

begin_balance_dr_beq,

begin_balance_cr_beq

FROM   gl_balances

WHERE  code_combination_id = &CCID

AND    actual_flag = ‘A’

AND    ledger_id     = &LEDGERID

AND    period_name   = ‘&PERIOD’

Tables

 GL_REVALUATIONS

Relevant columns – revaluation_id, name, automatic_post_flag, from_currency_code, gain_segmentX, loss_segmentX,

revalution_rate
 GL_REVALUATION_ACCOUNT_RANGES

Relevant columns – revaluation_id, segmentX_low, segmentX_high

AutoReverse Journal
Posted: May 19, 2020 in General Ledger

If you routinely generate and post large numbers of journal reversals as part of your

month end closing and opening procedures, you can save time and reduce entry errors

by using Automatic Journal Reversal to automatically generate and post your journal reversals.

You define journal reversal criteria sets for journal categories. Journal reversal criteria

lets you specify the reversal period, date, and method for each journal category. You

assign journal reversal criteria sets to ledgers.

The reversal method for a journal is defaulted from the method defined for the journal category in the Journal Reversal Criteria

Set that is attached to the corresponding ledger.

Navigate to General Ledger Responsibility -> Setup -> Financials -> Accounting Setup Manager -> Accounting Setups, search

the Ledger and click on Update Accounting Options. In Ledger Options , you can see the default Journal Reversal Criteria Set:
 Prerequisites

General Ledger generates and posts reversals for journals that satisfy the following

conditions:

 The journal balance type is Actual.

 The journal category is enabled to be Autoreversed.

 The journal is posted but not yet reversed.

 The journal reversal period is open or future enterable.

Setups with example

1. Navigate to General Ledger Responsibility -> Setup -> Journal -> AutoReverse, and enter Criteria Set. As you save new

Criteria Set , all categories will be defaulted.

Currently we are using the USA Ledger, default Journal Reversal Criteria Set:

2. Navigate to General Ledger Responsibility -> Journals -> Enter, Create and Post the Journal
3. Once its posted, click the Reverse Batch button
4. Now the Reversed Journal is created

Note

1. You can submit the “Program – Automatic Reversal” program for a ledger if you

have read and write access to some or all of the balancing or management

segment values assigned to the ledger and if the ledger has a Journal Reversal

Criteria Set assigned.

2. If Profile Option “GL: Launch AutoReverse After Open Period” is set to Yes, General Ledger automatically submits the

AutoReverse program when a new period.

AutoPost Journal
Posted: May 18, 2020 in General Ledger

You can automatically post journal batches that meet specific criteria you’ve defined in an AutoPost criteria set. You can define

multiple criteria sets that include a range of journal effective dates and multiple AutoPost priorities. AutoPost priorities include

combinations of journal source, journal category, balance type, and period.

Once you define an AutoPost criteria set, run the AutoPost program to select and post any journal batches that meet the criteria

defined by the criteria set. You can also schedule the AutoPost program to run at specific times and submission intervals. You

can submit the AutoPost program or schedule AutoPost runs directly from the AutoPost Criteria Sets window. Alternatively, you

can use the Submit Request window.

Navigate to General Ledger Responsibility -> Setup -> Journal -> AutoPost
1. Enter a Criteria Set name and Description. Also mark the Enabled box.

2. Choose the Posting Submission Options.

3. Enter the Journal Effective dates.

4. Enter the Priorities for the criteria set.

Priorities must consist of a Priority Number, Journal Source, Journal Category, Balance Type, and Period.

Priority Numbers must be between 1 an 99 with 1 being the most important.

‘ALL’ can be entered in any field except Prior

On clicking Submit button, program is submitted.

“Program – Automatic Posting” can be submitted from Submit request window also
Now lets modify the AutoPost Criteria as below:
Unfortunately no eligible journals for Payables and receivables source

Journal Approval
Posted: May 18, 2020 in General Ledger

There are two available methods for journal approval in GL:

1. Standard GL Journal Approval: The standard journal approval process will use the employee and supervisor hierarchy setup

in Human Resources (HR) along with the authorization limits in GL. Workflow functionality will also be utilized for notification

and response processing.

2. AME GL Journal Approval: The AME journal approval process will use all applicable rules defined within AME (per

attributes, conditions, action types, and approval groups) to provide a final approver’s list. Workflow  also be utilized for

notification and response processing.

Standard GL Journal Approval Setups with example

1. Navigate to System Administrator Responsibility -> Profile -> System and Set below Profiles:

–  Journals: Allow Preparer Approval

–  Journals: Find Approver Method

2. Navigate to General Ledger Responsibility -> Setup -> Financials -> Accounting Setup Manager -> Accounting Setups, search

the Ledger and click on Update Accounting Options

Make sure “Enable Journal Approval” is enabled.

3. Navigate to HR Responsibility -> People -> Enter and Maintain -> New button, then create an employee. Make sure the

employee is assigned to user.

4. Navigate to General Ledger Responsibility -> Setup -> Employee -> Limits
Add above created employee and set the Limit.

5. Navigate to General Ledger Responsibility -> Journals -> Enter and create the Journal

Then click on Approve button.

Since the amount is within the limit, its auto Approved.

6. Navigate to HR Responsibility -> People -> Enter and Maintain -> New button and lets create supervisor
Assign this employee as supervisor pf earlier employee
7. Navigate to General Ledger Responsibility -> Setup -> Employee -> Limits, add the new supervisor employee and set the

Limit

8. Navigate to General Ledger Responsibility -> Journals -> Enter and create the Journal

After clicking Approve button, this time it has gone for approval to supervisor because amount is more than limit of preparer.
Below is the notification received by supervisor.
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After supervisor approves the Journal

Journal Import
Posted: May 15, 2020 in General Ledger

Accounting transactions are originated as a result of normal business activities in Financial and Manufacturing modules of Oracle

Applications, as well as in external modules. In order to register those transactions into the General Ledger, Journal Import is

used.

Interface Tables

 GL_INTERFACE

This table is used to import journal entry batches through Journal Import.Couple of mandatory columns are:

–   STATUS (Should be NEW)

 –   LEDGER_ID (From GL_LEDGERS. LEDGER_ID)

–   USER_JE_CATEGORY_NAME (GL_JE_CATEGORIES.USER_JE_CATEGORY_NAME)

–   USER_JE_SOURCE_NAME (From GL_JE_SOURCES.USER_JE_SOURCE_NAME)

–   ACCOUNTING_DATE

–   CURRENCY_CODE (From FND_CURRENCIES.CURRENCY_CODE)

–   ACTUAL_FLAG (A : Actual / E : Encumbrance / B : Budget)

–   ENCUMBRANCE_TYPE_ID (If you entered the value E in the ACTUAL_FLAG column of the GL_INTERFACE table,

you must enter the appropriate encumbrance ID from GL_ENCUMBRANCE_TYPES. ENCUMBRANCE_ TYPE_ID)

–   BUDGET_VERSION_ID (If you entered the value B in the ACTUAL_FLAG column of the GL_INTERFACE table, you

must enter the appropriate budget ID from GL_BUDGET_VERSIONS.BUDGET_VERSION_ ID)

–   PERIOD_NAME (The period name is required when you are importing budget data using Journal Import and it must be

associated with an open budget fiscal year).

–   Account Combination (Either enter value for CODE_COMBINATION_ID / Populate segmemts SEGMENT1,

SEGMENT2,…, SEGMENTn according to the definition of the structure)

–   ENTERED_DR and ENTERED_CR

–   CREATED_BY

–   DATE_CREATED

Note: Enter the amount, conversion type and conversion date in the fields ENTERED_CR or ENTERED_DR,

USER_CURRENCY_CONVERSION_TYPE and CURRENCY_CONVERSION_DATE respectively. If you enter a rate type of

User, then you must also enter a conversion rate in the CURRENCY_CONVERSION_RATE column. For all other conversion

types you must enter a conversion date in the CURRENCY_CONVERSION_DATE column. In this case, the Journal Import

process automatically calculates the amount in the functional currency.

 GL_INTERFACE_CONTROL

This table is used to control Journal Import execution. Whenever you start Journal Import from the Import Journals form, a row

is inserted into this table for each source and group_id that you specified. When Journal Import completes, it deletes these rows

from the table. If you run Journal Import from outside of the Import Journals form, you must insert a row into the

GL_INTERFACE_CONTROL table first.

Mandatory columns are: JE_SOURCE_NAME and STATUS

 GL_INTERFACE_HISTORY

This table stores the rows that are successfully imported from the GL_INTERFACE table through the import process. The
 General Ledger application adds rows to this table every time you successfully run Journal Import, with the Archive Journal

Import Data option enabled. This option is defined on the Concurrent Program Controls form.

Base tables

 GL_JE_BATCHES

 GL_JE_HEADERS

 GL_JE_LINES

Concurrent Programs

 Program – Import Journals

 Program – Delete Journal Import Data

 For corrections, navigate to GL Responsibility -> Journals -> Import -> Correct

GL Basic Concepts
Posted: May 14, 2020 in General Ledger

Ledgers

Ledger determines the currency, chart of accounts, accounting calendar, subledger accounting method.

Each accounting setup requires a primary ledger and optionally one or more secondary ledgers and reporting currencies.

Primary Ledger

The primary ledger acts as the main record-keeping ledger. It is used for the purpose of maintaining transactions for one or more

legal entities.

To determine the number of primary ledgers you’ll need, your enterprise structure analysis must begin with determining

financial, legal, and management reporting requirements. For example, if your company has separate subsidiaries in several

countries worldwide, you’ll want to create multiple primary ledgers that represent each country with the local currency, chart of

accounts, calendar, and accounting method to enable reporting to each country’s legal authorities.

Alternately, if your company only has sales in different countries, and all results are managed by the corporate headquarters, you

may only need to create a single primary ledger with multiple balancing segment values to represent each legal entity.
 Other considerations that affect the number of primary ledgers required are:

 Corporate fiscal year end

 Ownership percentages

 Local government regulations and taxation

 Secondary ledgers

Secondary ledgers

The secondary ledger is an optional, additional ledger that is associated with the primary ledger for an accounting setup.

Secondary ledgers can be used to represent your primary ledger’s accounting data in another accounting representation that

differs in one or more of the following from the primary ledger:

Chart of accounts OR Accounting calendar/period type combination OR Currency OR Subledger accounting method OR Ledger

processing options

Secondary ledgers can be used in many ways. For example, if a legal entity must perform corporate and statutory reporting, you

can use the primary ledger to satisfy corporate reporting requirements and then use a secondary ledger to satisfy statutory

reporting requirements.

Reporting Currencies

If you want to maintain your ledger transactions in multiple currencies, you can use reporting currencies. Reporting currencies

are additional currency representations of primary or secondary ledgers. Unlike secondary ledgers, reporting currencies can only

differ by currency from their source ledger and must share the same chart of accounts, accounting calendar/period type

combination, subledger accounting method.

Journal Sources

Journal sources identify the origin of your journal entries. General Ledger supplies a number of predefined journal sources. In

addition, you should define at least one journal source for each of your own, non-Oracle feeder systems to help you track

imported journal entries.

 Couple of predefined journal source are – Manual, Purchasing, Payables, Receivables, Inventory, Intercompany, Revenue,

Recurring, Revaluation, Conversion, Consolidation, Other Etc.

Navigation : General Ledger Responsibility -> Setup -> Journal -> Sources

Journal Categories

Journal categories help you differentiate journal entries by purpose or type, such as accrual, payments or receipts.

Couple of predefined journal categories are – Credit Memos, Debit Memos, Inventory, Misc Transaction, Receipts, Purchase

Invoices, Payments, Cancellation, Accrual, Adjustment, Allocation, Consolidation, Revaluation Etc.

Navigation : General Ledger Responsibility -> Setup -> Journal -> Categories

Account Types

 Expense : Costs incurred by a company to generate revenue. Examples of expenses are: cost of sales, salary expense,

travel expense.

 Revenue : Income received as a result of the sale of goods or services. Examples of revenue include Trade Sales,

Income from Sales of Fixed Assets.

 Asset : A resource that has economic value and from which the company expects to generate income over time.

Examples of assets are inventory, fixed assets, accounts receivable and pre-paid insurance.

 Liability : Legal debts and obligations that companies owe to third parties as a result of business operations. Examples

of liabilities include accounts payable, accrued payroll, and notes payable.

 Equity : The value of ownership in a company and equal to the amount of assets remaining after all debts are satisfied.

Examples of equity accounts include common stock, preferred stock, and retained earnings.

 Saved Assumption : Non-financial items used by a company for statistical analysis and reporting purposes. Examples

are square footage and headcount, units sold, miles traveled, and patients admitted.
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General Ledger Setup Steps

Posted: May 14, 2020 in General Ledger

1. Define Your Chart of Accounts

2. Define Your Cross-Validation Rules (optional) : Define cross–validation rules to control the account combinations that can

be created during setup and data entry. If you skip this step, no security will be provided to prevent invalid combinations from

being created during setup and data entry.

3. Define Your Chart of Accounts Mapping (optional) : Define a chart of accounts mapping to provide instructions for

mapping accounts or entire account segments from a one chart of accounts to another for consolidation purposes and secondary

ledgers.

4. Define Your Descriptive Flexfields (optional) : Use descriptive flexfields to collect additional information.

5. Define Your Accounting Period Types : You can define your own period types to use in addition to the General Ledger

standard period types Month, Quarter and Year.

6. Define Your Accounting Calendar : Create a calendar to define an accounting year and the periods it contains.

7. Define Your Transaction Calendar (conditionally required) : When you define the transaction calendar, you choose which

days of the week will be business days. You can also specify other non-business days, such as holidays, by maintaining the

transaction calendar.

8. Define the Currency for Your Ledger : Define the currency for your ledger, or enable one of the predefined ISO

(International Standards Organization) currencies.

9. Define Conversion Rate Types and Conversion Rates to Support Multiple Currencies (optional) :

– Conversion Rate Types : Define the conversion rate types you want to use to maintain daily exchange rates and to enter foreign

currency journals.
– Daily Rates : Enter the daily rates you will need. Typically, you will enter rates to convert foreign currency journal entries into

your ledger currency and reporting currencies.

– Historical Rates : General Ledger also uses historical rates and amounts to remeasure selected account balances.

10. Define Additional Journal Entry Sources (optional) : Define your own journal entry sources in addition to the ones

installed with General Ledger to differentiate journal entries and enhance your audit trail.

11. Define Additional Journal Entry Categories (optional) : Define your own journal entry categories in addition to the ones

installed with General Ledger to differentiate journal entries and enhance your audit trail.

12. Define Journal Reversal Criteria (optional) : Define journal reversal criteria for journal categories if you want specific

journal categories to be reversed using specific rules. Journal reversal criteria lets you specify the default reversal period, date,

method, and automatic generation and posting of reversal journals.

13. Define Accounting Setups : Define an accounting setup using Accounting Setup Manager to link legal entities to ledgers and

other setup components, such as reporting currencies, subledger accounting options, intercompany accounts, intracompany

balancing rules, and sequencing options.

14. Define Ledger Sets (optional) : Define Ledger Sets to take advantage of processing efficiencies for General Ledger

processes, such as opening and closing General Ledger periods across multiple ledgers in a ledger set, generating

MassAllocations across ledgers, or reporting across ledgers.

15. Define Data Access Sets (optional) : Define data access sets to secure read and write access to ledgers, balancing segment

values, and management segment values assigned to a ledger. Only one data access set can be assigned to a responsibility.

16. Assign a Ledger to the GL Ledger Name Profile Option : This profile option controls the ledger that each subledger will

use for transaction processing.

17. Set Your GL: Data Access Set Profile Option : This profile option controls which General Ledger responsibilities can

access ledgers contained in a data access set.

18. Define Definition Access Sets (optional) : Define definition access sets and assign them to responsibilities if you want to

secure use, view, and modify access to certain General Ledger definitions, such as MassAllocations and FSG Reports.

19. Define Account Combinations (conditionally required) : Define account combinations manually in the GL Accounts

window if you disabled Dynamic Insertion for your chart of accounts.

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20. Define and Assign Document Sequences : Create a document sequence to uniquely number each document generated by an

Oracle application. In General Ledger you can use document sequences to number journal entries upon saving a journal, enabling

you to account for every journal entry.

21. Define Your Employees and Authorization Limits (optional) : Use the Enter Person window in Oracle General Ledger to

define employees. You must enter an employee and specify their journal authorization limits in the Journal Authorization Limits

window before you can use Journal Approval.

22. Set Up Journal Approval (optional) : Set Up Journal Approval for your ledger.

23. Define Additional Accounts (optional) :

– Suspense Accounts : Create suspense accounts to automatically balance journal entries from particular journal sources and

categories.

24. Define Transaction Codes (Public Sector Installations Only) : If you are a government customer, you can use transaction

codes to assign additional debit and credit pairs to a single transaction and have General Ledger create the additional entries

automatically.

25. Create Summary Accounts (optional) : A summary account is an account whose balance is the sum of balances from

multiple detail accounts for a ledger.

26. Set Up Automatic Tax Calculation if You Do Not Have Oracle Receivables and Oracle Payables Installed (optional) 
27. Define Your Automatic Posting Criteria (optional) : You can automatically post journal batches that meet specific criteria

that you have defined in an AutoPost criteria set. AutoPost priorities can be defined for combinations of journal source, journal

category, balance type, and period.

28. Define Encumbrance Types (optional) : Define custom encumbrance types in addition to the encumbrance types installed

with General Ledger to classify and track your expenditures according to your purchasing approval process.

29. Set Up Budgets (optional) : Use budgets to enter estimated account balances for a specified range of periods. You can use

these estimated amounts to compare actual balances with projected results, or to control actual and anticipated expenditures.

30. If You Enabled Budgetary Control, Define One or More Budgetary Control Groups (optional) 

31. Define Security Rules (optional) : Define segment value security rules to restrict user access to certain segment values when

entering journals, performing online inquiries, and running FSG and some standard reports.

32. Set Your General Ledger Profile Options (optional)

33. Open Accounting Period : Open and close accounting periods to control journal entry and journal posting, as well as to

compute the beginning period balances when opening the first period of a new year.

34. Set Up the Global Consolidation System (optional) : Set up the Global Consolidation System (GCS) if you want to

consolidate multiple companies using separate ledgers.

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Data Access Sets

Posted: July 20, 2013 in General Ledger
 2

Data access sets control which ledgers or ledger sets can be accessed by different General Ledger responsibilities. Data access

sets also control read and write access to the ledger or portions of the ledger, such as its balancing segment values or management

segment values.

If you want users to access different ledgers for different operating units from the same responsibility, you should define a data

access set and then assign it to the “GL: Data Access Set” profile option for each General Ledger responsibility.

All ledgers and ledger sets assigned to a data access set must share the same chart of accounts and accounting calendar/period

type combination.

Ledger sets allow you to run processes and reports for multiple ledgers simultaneously.For example, you can open/close periods

for multiple ledgers at once.The same ledger can belong to multiple ledger sets, and ledger sets can contain other ledger sets.

1. To define Ledger Set,navigate to : General Ledger Super User Responsibility-> Setup -> Financials –> Ledger Sets. Once you

save, General Ledger Accounting Setup Program will be submitted.A default Data Access Set with same name of the

our Ledger Set name will be automatically created.

 In the Ledger/Ledger Set column, choose the ledgers and/or ledger sets to be included in the ledger set. Only those ledgers and

ledger sets that share the same chart of accounts, calendar, and period type specified for the ledger set definition will be available.

2. Navigate to : General Ledger Super User Responsibility -> Setup -> Financials ->Data Access Set and set the Access Set Type

and Access Privilege.

Their are 3 Access Set types:

1. Full Ledger: To grant privileges to an entire ledger or ledger set.

2. Balancing Segment Value: To grant privileges for all or specific balancing segment values in a ledger or ledger set.

3. Management Segment Value: To grant privileges for all or specific management segment values in a ledger or ledger

set.

If you specify Balancing Segment Value or Management Segment Value Access Type as access set type,then do either of below

 Check the All check box to grant privileges to all balancing or management segment values in the ledger.

 Enter a specific balancing or management segment value for the ledger or ledger set. To include more than one

balancing or management segment value per ledger or ledger set, complete additional rows.
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 You can set either of below privileges:

1. Read Only: Allows users to view data in ledgers and balancing or management segment values.

2. Read and Write: Allows users to view and enter data in ledgers and balancing or management segment values.

Once its saved,the value can be assigned to “GL: Data Access Set”  profile

Ledger Setup(Continuation of 3C setups)

Posted: June 8, 2013 in General Ledger

1. Navigate to System Administrator->Profile-> System and set “LE: Generate Legal Entity Identifier” profile as Yes at user

level

 If this option is set to “Yes”, the Legal Entity Identifier is generated automatically based on the International

Organization for Standardization (ISO) code of the Country of Registration, plus the Registration Number (of the Identifying

Jurisdiction) which qualifies an entity to be a Legal Entity in that particular territory.

 If this option is set to “No”, the user must enter the Legal Entity Identifier manually.

2. Navigate to: General Ledger Super User->Setup->Financials->Accounting Setup Manager-> Accounting Setups

3 . Click on “Create Accounting setups” and then either create Legal Entity or add Legal entity by clicking “Add Another Row”
Also click on “Create New Address” and then next button

4. 

Enter the Ledger details and click next button

COA=>GOVTEST_ACCOUNTING_FLEXFIELD

Calendar=>GOVTEST_CAL

Currency=>USD

SLA Method=>Standard Accrual (Oracle Seeded)

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5. 

Navigate to: General Ledger Super User->Setup->Financials->Accounting Setup Manager-> Accounting Setups and search with

newly created Ledger

6. Then click “Update Balancing Segment Values” button.

7. Enter the balancing segments and click on apply.

8. Now click on Update button across “Ledger Options”
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Click next and submit.

9. Click update against Operating Units and then create OU by clicking on Add Operating Unit Button.

10. Navigate to System Administrator-> Security->Responsibility-Define and create new GL Super User Responsibility
11. Navigate to System Administrator->Profile-> System and assign below profiles for the newly create responsibility

MO: Operating Unit=>GOVTEST_ORG

GL Ledger Name=>GOVTEST_LEDGER

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12. Navigate to newly created GL Super user responsibility

GOVTEST General Ledger Super User->Setup->Accounts->Combinations and create the GL Code Combinations
 3Cs-Calendar,Currency & Chart of Account Setups
Posted: June 8, 2013 in General Ledger

Calendar:

1. Navigate to: General Ledger Super User->Setup->Financials->Calendars->Types and define the Calendar Type

 Calendar year type=>It’s simply the conventional year that begins on January 1 and ends on December 31.

 Fiscal year type=> It can starts on any month of the calendar year and contains twelve consecutive months.

2. Navigate to: General Ledger Super User->Setup->Financials->Calendars->Accounting and define the calendar.
Currency:

1. Navigate to: General Ledger Super User->Setup->Currencies->Define and define the currency

Ensure the currency is enabled

2. Navigate to: General Ledger Super User->Setup->Currencies->Rates->Types and define the currency conversion types

3. Navigate to: General Ledger Super User->Setup->Currencies->Rates->Daily and define the currency exchange rate for each

day.
Chart of Account:

1. Navigate to: General Ledger Super User->Setup->Financials->Flexfields->Validation->Set and define all the segment value

sets.

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Similarly defined value sets for other segments also-

GOVTEST_COST_CENTER, GOVTEST_ACCOUNT, GOVTEST_SUB_ACCOUNT and GOVTEST_PRODUCT

2. Navigate to: General Ledger Super User->Setup->Financials->Flexfields->Validation->Values and define segment values.Also

fill segment qualifiers value in Values,Hierarchy,qualifiers Tab.

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For the account that is to be set as the Retained Earning Account,select account type as “Ownership/Stockholder’s

Equity“.For other accounts select type as Expense or Asset or other values

3. Navigate to: General Ledger Super User->Setup->Financials->Flexfields->Key->Segments

Query Application as “General Ledger” and Title as “Accounting Flexfield”.Then enter the new accounting structure code,title

and description.Ensure Cross-Validation segments and Allow Dynamic Insert option is enabled.Also ensure the segment

seperator is Period(.)

Then enter the segment details.Also select the Flexfield qualifiers for the segments.
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Freeze the KFF once setups are completed