Order to Cash Cycle in Oracle apps R12

Order to Cash (O2C) Concept is a Process that is followed by an organisation for Selling a Product or
Services to the customer and receive payment for it. The following is the flow for Order to Cash(O2C)
Cycle. 

1) Enter Sales Order.

2) Book Sales Order. 
3) Stock Reservation.
4) Pick Release.
5) Ship Confirmation.
6) Workflow background Process Engine Program.
7) Auto invoice Import Program.
8) Query the transaction in AR and complete the transaction.
9) Create Receipt against imported transaction.
10) Clear the transaction in Cash Management.
11) Transfer to General Ledger.

Accounting Entries for O2C Cycle.At Pick Release:

           Inventory Stage A/c…………….Dr.
                       To Inventory Finished Goods A/c ……………..Cr.
At Ship Confirmation:
            COGS A/c …………………………Dr.
                       To Inventory Organisation A/c…………………….Cr.
At Transaction in AR:
            Receivable A/c…………………..Dr.
                        To Revenue A/c ……………………………Cr.                                            To Tax
A/c………………………………Cr.
                        To Freight A/c ………………………………Cr.
At Receipt in AR:
             Cash A/c…………………………..Dr.
                        To Receivable……………………………………………..Cr.

Auto Invoice Setup.

1) In OM System Parameters Window, For item Validation Organisation assign Master Inventory(MI) or
Actual Inventory (AI).
2) Create Transaction Type for line and order.
3) Define Document Sequence for the transaction type.
4) Assign Document Sequence and Document Category in Document Assignment window
5) For OM Responsibility assign ” QP Item Validation Organisation”.
6) Assign you item in advance pricing form.
7) Define Carrier Method.
8) Define Release Sequence Rule.
9) Define Pick Slip Grouping Rule.
10) Define Release Rules.
11) Define Document Set for Pick Release.
12) Define Document Set for Ship Confirmation.
13) Define Ship Confirmation Rules.
14) Shipping Parameters.
15) Define Picker Role.
16) Define Shipper Role.
17) Define grants to shipper and picker
18) Open Periods in Inventory, Purchasing and General Ledger Modules.
19) Create Receivables Transaction Type
20) Create Imported Transaction Source
21) Assign Receivable transaction type and sources to Transaction type create in OM.

A quick summary of accounting entries in Order to Cash cycle

    Sales order creation – No entries

    Pick release:
    Inventory Stage A/c…………………Debit
    Inventory Finished goods a/c……..Credit
    Ship confirm:
    Cogs A/c ……………………………Debit
    Inventory Organization a/c………Credit
    Receviable:
    Receviable A/c………………………Debit
    Revenue A/c………………………Credit
    Tax ………………..…………………Credit
    Freight…………..….……………….Credit
    Cash:
    Cash A/c Dr…………………………Debit
    Receivable A/c……………………….Credit

---------------------------------------------------------------------------
 For Order to Cash Entries.

Step 1: Sales order creation - No entries

Step 2: Pick release : Inventory Stage A/c Dr

To Inventory Finished goods a/c

Step 3: Ship confirm : Cogs A/c Dr

Inventory Organization A/c.

Step 4: In Receviable : Receviable A/c dr

To Revenue A/c
To Tax
To Freight
Step 5: Cash : Cash A/c Dr
Receivable A/c cr

Oracle Procure to Pay (P2P) and Order To

Cash(O2C) Cycles
The different types of ordering methods followed across the organizations are discussed below
and must follow one of these categories:

Make to Order:

A business production strategy that typically allows consumers to purchase products that are
customized to their specifications. The make to order (MTO) strategy only manufactures the end
product once the customer places the order. This creates additional wait time for the consumer to
receive the product, but allows for more flexible customization compared to purchasing from
retailers’ shelves.

Make To Stock:

A traditional production strategy used by businesses to match production with consumer demand
forecasts. The make-to-stock (MTS) method forecasts demand to determine how much stock
should be produced. If demand for the product can be accurately forecasted, the MTS strategy
can be an efficient choice.

Assemble to order:

A business production strategy where product ordered by customers can be produced quickly and
are customizable to a certain extent. The assemble-to-order (ATO) strategy requires that the
basic parts for the product are already manufactured but not yet assembled. Once an order is
received, the parts are assembled quickly and sent to the customer.

Make To Assemble:

A manufacturing production strategy where a company stocks the basic components of a product
based on demand forecasts, but does not assemble them until the customer places an order. This
allows for order customization. MTA production is basically a hybrid of two other major types of
manufacturing production strategies: make to stock (MTS) and make to order (MTO).
Oracle has developed this ERP solution which truly covers these both cycles Purchase to Pay and
Order to Cash. Oracle EBS comprises of the Standard Core Business Management applications
like General Ledger, Payables, Receivables, Cash Management, Fixed asset, Purchasing,
Order Management, Inventory, Discrete Manufacturing, Process Manufacturing ,
HRMS and many more. The application mentioned are so integrated that it handles the
beginning to end of both Assets (Order Management and Receivables) and Liabilities
(Purchasing and Payables). These Assets and Liabilities are finally pushed and calculated in
Oracle General Ledger. The base or the heart of Oracle EBS is Oracle General Ledger. Let me 
call GL an intrinsic.

Order to Cash Cycle:

Order to Cash means Customer’s Order Placing to Vendor’s Cash Receiving. When your

final product is ready to be sold, you market it. The customer gets fascinated with the marketing
campaign and decides to buy your product and from here starts the O2C cycle.

1. Oracle Order Management: Customer places the order.

2. Oracle Order Management: You enter the customer order
3. Oracle Inventory: Check the available unit and the quantity ordered by the customer.
4. Oracle Order Management: You ship the product to customer site and decreases the
Finished Goods inventory.
5. Oracle Receivables: The customer receives the product and you invoice the customer.
6. Oracle General Ledger: You record your revenue and receivables.
7. Oracle Receivables: The customer pays and you receive the cash/check.
8. Oracle Cash Management: Oracle Receivables sends the customer receipt for Bank
Reconciliation. After reconciliation, Oracle Cash Management send the actual bank
balance or Oracle General Ledger.
9. Oracle General Ledger: You have the actual bank balance.

Following Accounting entries will be generated for O2C

 Sales order creation – No entries
 Pick release:
Inventory Stage A/c…………………Debit
Inventory Finished goods a/c……..Credit
 Ship confirm:
Cogs A/c ……………………………Debit
Inventory Organization a/c………Credit
 Receviable:
Receviable A/c………………………Debit
Revenue A/c………………………Credit
Tax ………………..…………………Credit
Freight…………..….……………….Credit
 Cash:
Cash A/c Dr…………………………Debit
Receivable A/c……………………….Credit

Procure to Pay:

Procure to Pay means Procuring Raw Materials, or semi finished goods required to

manufacture the final or finished Goods to Paying the Supplier from whom the material was
purchased. But this is not just two steps. It involves many steps which are mentioned below:
 1. Oracle Purchasing: You enter Suppliers of different materials and products you want to
purchase to  manufacture a finished good that your organization plans to sell.
2. Oracle Purchasing: You prepare a Request for Quotation (RFQ) and send it to
different suppliers to get the best and/or economical price for the product.
3. Oracle Purchasing: Suppliers sends their quotations and you upload those quotations in
Oracle Purchasing to get the best three quotes and further to get the one best quote.
4. Oracle Purchasing: You prepare a Purchase Order(PO) against the best RFQ to buy
the goods from the supplier who quoted the suitable price and sends the PO to that
supplier
5. Oracle Purchasing: The supplier receives the confirmation of purchase from PO and
ships the ordered goods. You receive the goods enter a Goods Received Note (GRN) in
Oracle Purchasing.
6. Oracle Inventory / Oracle Assets: It’s up to you whether you want to receive the goods
at your head office or you Inventory directly. In either case you move the received goods
to your different Raw Material Inventory from Oracle Purchasing to Oracle Inventory and
the Item Count increases. If the item is Asset Type then it will move to Oracle Assets at
the time of Invoice creation in Oracle Payables.
7. Oracle General Ledger: Once you move the goods to Oracle Inventory, it sends the
Material Accounting to Oracle General Ledger.
8. Oracle Payables: After this the supplier sends you the invoice for the purchased goods
and you Enter or Match the invoice against the PO from Oracle Purchasing in Oracle
Payables. As said before, if the item is Asset in nature then it will move to Oracle Asset.
9. Oracle General Ledger: When you enter the invoice it means that you have created a
Liability against that supplier and also you have recorded the expense incurred or asset
purchased. Oracle Payables sends the invoice accounting to Oracle General Ledger.
10. Oracle Payables: You pay the invoice and settle the Liability.
11. Oracle General Ledger: The liability is settled and your cash movement account is
updated.
12. Oracle Cash Management: As you pay the invoice Oracle Payables sends the payment
information to Oracle Cash Management for Bank Reconciliation. Once reconciled,
Oracle Cash Management sends the updated Bank/Cash accounting entry to Oracle
General Ledger.
13. Oracle General Ledger: Your cash at bank is updated with actual balance.
14. Oracle Process Manufacturing(OPM) / Oracle Discrete Manufacturing(ODM): You
start the manufacturing of your final product. Both OPM or ODM requests the different
raw materials from you inventory organizations and manufactures a finished good.
15. Oracle Inventory: As the raw materials are issued to OPM and ODM the inventory
sends the issuing material accounting to General Ledger and decreases the Item Count
from the Raw Material Store. As the finished good is prepared, Oracle Inventory receives
the finished good in Finished Good Store and increase the Item Count.

Following Accounting entries will be generated for P2P:

 Purchase Requisition creation No entry
 Purchase Order creation no entry
  Inventory Receipt:
Inventory A/c…………….Debit
AP Accrual A/C………Credit(This A/c We are giving in Financial Option)
 At the time of Matching the Invoice with Purchase Order
AP Accrual A/c………….Debit
Supplier A/c…………..Credit
 At the time of making payment to supplier
Supplier A/C…………… Debit
Bank A/c…………….Credit

This is how the P2P and O2C cycle works, but this is not the only way, obviously there are many
other applications with different cycles.

Order to Cash Process

order to cash process steps can be listed as below

 Enter the Sales Order

 Book the Sales Order
 Launch Pick Release
 Ship Confirm
 Create Invoice
 Create the Receipts either manually or using Auto Lockbox ( In this article we will
concentrate on Manual creation)
 Transfer to General Ledger
 Journal Import
 Posting

Watch o2c Video: Order to Cash cycle Video

Query: Order to Cash query

Let’s get into the details of each step mentioned above.

Enter the Sales Order:

Navigation: Order Management Super User Operations (USA)>Orders Returns >Sales Orders

Enter the Customer details (Ship to and Bill to address), Order type.
Click on Lines Tab. Enter the Item to be ordered and the quantity required.

Line is scheduled automatically when the Line Item is saved.

Scheduling/unscheduling can be done manually by selecting Schedule/Un schedule from the

Actions Menu.

You can check if the item to be ordered is available in the Inventory by clicking on Availability
Button.
Save the work.

Underlying Tables affected:

In Oracle, Order information is maintained at the header and line level.

The header information is stored in OE_ORDER_HEADERS_ALL and the line information in

OE_ORDER_LINES_ALL when the order is entered. The column called
FLOW_STATUS_CODE is available in both the headers and lines tables which tell us the status
of the order at each stage.

At this stage, the FLOW_STATUS_CODE in OE_ORDER_HEADERS_ALL is ‘Entered’

Book the Sales Order:

Book the Order by clicking on the Book Order button.

Now that the Order is BOOKED, the status on the header is change accordingly.

Underlying tables affected:

At this stage:

The FLOW_STATUS_CODE in the table OE_ORDER_HEADERS_ALL would be

‘BOOKED’

The FLOW_STATUS_CODE in OE_ORDER_LINES_ALL will be

‘AWAITING_SHIPPING’.
Record(s) will be created in the table WSH_DELIVERY_DETAILS with

RELEASED_STATUS=’R’ (Ready to Release)

Also Record(s) will be inserted into WSH_DELIVERY_ASSIGNMENTS.

At the same time DEMAND INTERFACE PROGRAM runs in the background and inserts

into MTL_DEMAND

Launch Pick Release:

Navigation: Shipping > Release Sales Order > Release Sales Orders.

Key in Based on Rule and Order Number

In the Shipping Tab key in the below:

Auto Create Delivery: Yes

Auto Pick Confirm: Yes

Auto Pack Delivery: Yes

In the Inventory Tab:

Auto Allocate: Yes

Enter the Warehouse

Click on Execute Now Button.

On successful completion, the below message would pop up as shown below.

Pick Release process in turn will kick off several other requests like Pick Slip Report,

Shipping Exception Report and Auto Pack Report

Underlying Tables affected:

If Autocreate Delivery is set to ‘Yes’ then a new record is created in the table
WSH_NEW_DELIVERIES.

DELIVERY_ID is populated in the table WSH_DELIVERY_ASSIGNMENTS.

The RELEASED_STATUS in WSH_DELIVERY_DETAILS would be now set to ‘Y’ (Pick

Confirmed) if Auto Pick Confirm is set to Yes otherwise RELEASED_STATUS is ‘S’ (Release
to Warehouse).

Pick Confirm the Order:

IF Auto Pick Confirm in the above step is set to NO, then the following should be done.

Navigation: Inventory Super User > Move Order> Transact Move Order

In the HEADER tab, enter the BATCH NUMBER (from the above step) of the order. Click
FIND. Click on VIEW/UPDATE Allocation, then Click TRANSACT button. Then Transact
button will be deactivated then just close it and go to next step.

Ship Confirm the Order:

Navigation: Order Management Super User>Shipping >Transactions.

Query with the Order Number.

Click On Delivery Tab

Click on Ship Confirm.
The Status in Shipping Transaction screen will now be closed.

This will kick off concurrent programs like.INTERFACE TRIP Stop, Commercial Invoice,
Packing Slip Report, Bill of Lading

Underlying tables affected:

RELEASED_STATUS in WSH_DELIVERY_DETAILS would be ‘C’ (Ship Confirmed)

FLOW_STATUS_CODE in OE_ORDER_HEADERS_ALL would be “BOOKED”

FLOW_STATUS_CODE in OE_ORDER_LINES_ALL would be “SHIPPED”

Create Invoice:

Run workflow background Process.

Navigation: Order Management >view >Requests

Workflow Background Process inserts the records RA_INTERFACE_LINES_ALL with

INTERFACE_LINE_CONTEXT     =     ‘ORDER ENTRY’

INTERFACE_LINE_ATTRIBUTE1=     Order_number

INTERFACE_LINE_ATTRIBUTE3=     Delivery_id

and spawns Auto invoice Master Program and Auto invoice import program which creates
Invoice for that particular Order.
The Invoice created can be seen using the Receivables responsibility

Navigation: Receivables Super User> Transactions> Transactions

Query with the Order Number as Reference.

Underlying tables:

RA_CUSTOMER_TRX_ALL will have the Invoice header information. The column

INTERFACE_HEADER_ATTRIBUTE1 will have the Order Number.
RA_CUSTOMER_TRX_LINES_ALL will have the Invoice lines information. The column
INTERFACE_LINE_ATTRIBUTE1 will have the Order Number.

Create receipt:

Navigation: Receivables> Receipts> Receipts

Enter the information.

Click on Apply Button to apply it to the Invoice.

Underlying tables:

AR_CASH_RECEIPTS_ALL

Transfer to General Ledger:

To transfer the Receivables accounting information to general ledger, run General Ledger
Transfer Program.
Navigation: Receivables> View Requests

Parameters:

 Give in the Start date and Post through date to specify the date range of the transactions
to be transferred.
 Specify the GL Posted Date, defaults to SYSDATE.
 Post in summary: This controls how Receivables creates journal entries for your
transactions in the interface table. If you select ‘No’, then the General Ledger Interface
program creates at least one journal entry in the interface table for each transaction in
your posting submission. If you select ‘Yes’, then the program creates one journal entry
for each general ledger account.
 If the Parameter Run Journal Import is set to ‘Yes’, the journal import program is kicked
off automatically which transfers journal entries from the interface table to General
Ledger, otherwise follow the topic Journal Import to import the journals to General
Ledger manually.

Underlying tables:

This transfers data about your adjustments, chargeback, credit memos, commitments, debit
memos, invoices, and receipts to the GL_INTERFACE table.

Journal Import:
To transfer the data from General Ledger Interface table to General Ledger, run the Journal
Import program from Oracle General Ledger.

Navigation: General Ledger > Journal> Import> Run

Parameters:

 Select the appropriate Source.

 Enter one of the following Selection Criteria:

No Group ID: To import all data for that source that has no group ID. Use this option if
you specified a NULL group ID for this source.

All Group IDs: To import all data for that source that has a group ID. Use this option to
import multiple journal batches for the same source with varying group IDs.

Specific Group ID: To import data for a specific source/group ID combination. Choose a
specific group ID from the List of Values for the Specific Value field.

If you do not specify a Group ID, General Ledger imports all data from the specified
journal entry source, where the Group_ID is null.

 Define the Journal Import Run Options (optional)

Choose Post Errors to Suspense if you have suspense posting enabled for your set of
books to post the difference resulting from any unbalanced journals to your suspense
account.

Choose Create Summary Journals to have journal import create the following:

• one journal line for all transactions that share the same account, period, and currency
and that has a debit balance

• one journal line for all transactions that share the same account, period, and currency
and that has a credit balance.

 Enter a Date Range to have General Ledger import only journals with accounting dates in
that range. If you do not specify a date range, General Ledger imports all journals data.
 Choose whether to Import Descriptive Flexfields, and whether to import them with
validation.

Click on Import button.

Underlying tables:

GL_JE_BATCHES, GL_JE_HEADERS, GL_JE_LINES

Posting:

We have to Post journal batches that we have imported previously to update the account balances
in General Ledger.

Navigation: General Ledger> Journals > Enter

Query for the unposted journals for a specific period as shown below.
From the list of unposted journals displayed, select one journal at a time and click on Post button
to post the journal.
If you know the batch name to be posted you can directly post using the Post window

Navigation: General Ledger> Journals> Post

Underlying tables:

GL_BALANCES.

Order Management

There are no accounting entries generated in OM

Inventory

When you ship the Goods

Dr Cost of Goods sold (picked up from the Item)

Cr Inventory (picked up from Subinventory)

Receivables

When you run the Autoinvoice Program and create an Invoice

Dr Receivables
Cr Revenue
When you Receive Cash

Dr Cash/ Bank Account

Cr Cash Clearing Account

When you receive the payment

Dr Cash Clearing Account

Cr Receivables A/c

Staging of Goods/Items / Pick Release

Inventory Staging A/C ......Dr 500
Finished Goods A/C ......Cr 500
2. Ship Confirmed
COGS A/C ......Dr 500
Inventory Material A/C ......Cr 500
3. Raising Customer Invoice
Receivable A/C ......Dr 500
Revenue A/C ......Cr 500
4. Receipt of Customer Payment
Remittance Cash A/C........Dr 500
Receivable A/C .................Dr 500
5. Remittance to Bank
Cash A/C...........................Dr 500
Remittance Cash A/C........Dr 500

O2C Cycle(order to cash)

1.Sales order
Reeving inventory a/c debit 1000
sub inventory a/c credit 1000
2. Pic release
deffer cogs a/c debit 1000
Reeving inventory a/c credit 1000
3. ship conform
cogs a/c debit 1000
deffer cogs a/c 1000
4.invoice/transacation
Receivables a/c debit 1000
revenue a/c credit 1000
5.receipt from customer
conformed cash a/c debit 1000
receivables a/c credit 1000
6.Remit to bank
Remitted cash a/c debit 1000
conformed cash a/c credit 1000
7 Reconciliation
Cash a/c debit 1000
remitted cash a/c credit 1000

General Ledger Interview Questions in R12

1) Can a flexfield qualifier be changed after it has been created?

Ans)  No.

Once a segment qualifier has been designated for a specific segment and has been saved, it will
permanently have the attributes with that qualifier.
For example, you accidentally designate the cost center segment as the natural account segment.
Even though you do not compile this, the system saves the changes. And once it has been saved,
it will have all the attributes designated for the natural account qualifier, even after it has been
changed back, resaved with the correct qualifier and compiled. This is the inherent functionality
of the software.
Unfortunately, there is no real easy solution for this issue. The only option is to create a new
chart of accounts and attach a new set of books.

2) How to delete a segment value?

Ans) There is no supported way to delete a segment value. Segment values can only be disabled
not deleted.

3) Is there a way to load values for a specific segment outside of the form?

Ans) iSetup is the Oracle product that provides supported APIs to load values into Oracle
Applications flexfields.
To load code combinations ADI may be used. Uploading zero amount journals will create new
code combinations.
In this case Dynamic Insertion should be enabled and all account segment values need to exist
before the new account code combinations will be dynamically created.

4) What are the different types of Journals in General Ledger ?

Ans)  
1. Functional Currency Jv: This Journal, we enter Local Currency transaction purpose.

2. Foreign Currency Jv: this Journal, we enter other than local currency transaction
purpose...before we define exchange rates

3.Suspense Jv: this Journal, whenever debit is not equal to credit that time, we enable in set of
books window Suspense button, then it works otherwise it's not working

4.Tax Jv: this Journal, calculate taxation of Purchased items

5.Reverse Jv: this Journal whenever we enter recurring journal, at the time of we using..We have
two methods...one is Debit to Credit and second one is sign (+ to -)

6.Recurring Jv :this one is We define one template, we use Periodically, these are 3 types
1.Standard 2.Skeleton 3.Formula

7.Mass Allocation Jv :Set of Expenses or Set of Revenue allocate different parts using Formula
A*B/C
A is Total Cost Pool..B is Usage Factor...C is Total Usage Factor...

8. Batch JV: Group of Journal we enter at a time, We Define Control Amount

9. Stat JV: This JV we have one side of Amount either debit or Credit.....

5)  What is average Balance In Oracle Financials? 

Ans) The Average Balance feature of Oracle General Ledger provides organizations with the
ability to track average and end-of-day balances, report average balance sheets, and create
custom reports using both standard and average balances. Average balance processing is
particularly important for financial institutions, since average balance sheets are required, in
addition to standard balance sheets, by many regulatory agencies. Many organizations also use
average balances for internal management reporting and
Profitability analysis.

The difference between an average and standard balance sheet is that balances are expressed as
average amounts rather Than actual period-end amounts. An average balance is computed as the
sum of the actual daily closing balance for a balance sheet account, divided by the number of
calendar Days in the reporting period .

6) Is there a limit to the number of periods in a budget year or how many years a budget
can span?
Ans) One can define budgetary control for n number of years however, one year can have
maximum of 60 fiscal periods7)   

7) What is a funding budget?

Ans) A budget against which accounting transactions are checked for available funds when
budgetary control is enable for your set of books.

8) What is planning budget

Ans) The plan for the future expenses is planning budget. It is a paper work. There is no funds
requirement. It does not require journals. There are no restrictions for estimating of funds.

9) I was able to post a budget journal to a closed period, why? 

Ans) Yes you can do so, reason being budget journal is not linked with your accounting period.
Once you have open the budget period then you can book budget journal for that whole period.

 10) What is the specific purpose of assigning Balancing Segment Values to the Legal Entity
in Accounting Manager Setup (as once assigned, the same value is not allowed to be
selected for any other Legal Entity), if this value is usable for the Operating Unit(s) that
does not have this Legal Entity Context?
Ans) Summary of key facts:

1. Common COA Structure used for Primary and Secondary Ledgers

2. Ledger shared by Multiple Legal Entities
3. Specific Balancing Segment Values assigned to Specific Legal Entity (Overlap not allowed)
4. Specific Legal Entity Vision Operations Assigned to Payables Manager OU for Legal Entity
Context
5. User preference set to Access Vision Operations OU by Default in Payables

Conclusion and Findings:

1. Balancing Segment Value Assignment to the Multiple Legal Entities, sharing the same Ledger
does not seem to restrict the user of these Balancing Segment Values in the Feeder, Operating
Unit specific Modules Like AP, wherein Legal Entity Context is passed to the OU through the
link of the Primary Ledger.

2. However, access to these Balancing Segment Values could be controlled through Security
Rules being assigned to the Value Set and the Respective Responsibility
3. The Key question is: If Legal Entity having the context to the Operating Unit that shares the
common Ledger does not have assignment to it, what impact it has on the integrity of data when
this access is otherwise allowed, except through Security Rules?

  

11) What are the interface tables in General Ledger ?

Ans)
GL_BUDGET_INTERFACE
GL_DAILY_RATES_INTERFACE
GL_IEA_INTERFACE
GL_INTERFACE
GL_INTERFACE_CONTROL
GL_INTERFACE_HISTORY 

 12) What is DFF.

Question: What does DFF mean?
Answer: DFF is a mechanism that lets us create new fields in screens that are delivered by
Oracle.

Question: Oh good, but can these new fields be added without modifying/customization of the
screen?.
Answer: Yes, certainly. Only some setup is needed, but no programmatic change is needed to
setup DFF.

Question: Why the word Descriptive in Name DFF?

Answer: I think Oracle used this terminology because by means of setup...you are describing the
structure of these new fields. Or may be Oracle simply used a silly word to distinguish DFF from
KFF(discussed in latter training lesson).

Question: Are these DFF's flexible?

Answer: A little flexible, for example, depending upon the value in a field, we can make  either
Field1 or Field2  to appear in DFF.

Question: So we create new fields in existing screen, but why the need of doing so?
Answer: Oracle delivers a standard set of fields for each screen, but different customers have
different needs, hence Oracle lets us create new fields to the screen.

Question: Are these new fields that get created as a result of DFF free text?
I mean, can end user enter any junk into the new fields that are added via DFF?
Answer: If you attach a value set to the field(at time of setup of dff), then field will no longer be
free text. The entered value in the field will be validated, also a list of valid values will be
provided in LOV.

Question : Will the values that get entered by the user in dff fields be updated to database?
Answer: Indeed, this happens because for each field that you create using DFF will be mapped
to  a column in Oracle Applications.

Question: Can I create a DFF on any database column?

Answer: Not really. Oracle delivers a predefined list of columns for each table that are meant for
DFF usage. Only those columns can be mapped to DFF segments. These columns are named
similar to ATTRIBUTE1, ATTRIBUTE2, ATTRIBUTE3 ETC. Usually Oracle provides upto 15
columns, but this number can vary. 

Question: Can I add hundreds of fields to a given screen?

Answer: This depends on the number of attribute columns in the table that screen uses. Also,
those columns must be flagged as DFF enabled in DFF Registration screen. Don't need to worry
much about this because all the ATTRIBUTE columns are by default flagged for their DFF
usage.

Question: Hmmm, I can see that DFFs are related to table and columns...
Answer: Yes correct. Each DFF is mapped to one table. And also each segment(or call it field)
is mapped to one of the attribute columns in that table.

Question: I want these fields to appear in screen only when certain conditions are met. Is it
possible?
Answer: Yes, we have something known as Context Sensitive Descriptive Flexfields.

In Order to do this, we will follow the below steps(screenshots will follow) :-

1.    Navigate to the DFF Registration screen in Oracle Apps and query on Table
AP_BANK_BRANCES. Now click on Reference Field
2.    Navigate to DFF Segments screen and query on the Title of the “Bank Branch” and
Unfreeze the Flexfield and add segments as to Section "GLOBAL Data Elements" as shown in
screenshots.

13)   What is Journal Import?

Ans) Journal import is an interface used to bring journal entries from legacy systems and other
modules into the General Ledger.(Specifically Journal Import gets entries from legacy data into
the GL base tables.
The tables populated during journal Import are
GL_JE_BATCHES,
GL_JE_HEADERS,
GL_JE_LINES,
GL_IMPORT_REFERENCES
14) What is the use of GL_Interface?

Ans) Gl_Interface is the primary interface table of General ledger. It acts as an interface between
data originating from other modules such as AP,AR, Legacy data and the Gl Base tables.

15) What is Actual Flag?

Ans) Actual flag represents the Journal type.

A-Actual
B-Budget
E- Encumbrance.

16) What is Encumbrance?

Ans) It is a process of Reservation of funds for anticipated expenditure from a budget.

Encumbrance integrates GL, Purchasing and Payables modules.

17) How many Key Flex Fields are there in General Ledger?

Ans)  One. Accounting Key Flex Field.

18) How many types of Budgets are there?

Ans) Two Types.

Expenditure Budgets
Revenue Budgets.

19)What are Spot Rate, Corporate Rate, Transaction Calendar and Accounting Calendar?

Ans) Spot Rate:

An exchange rate which you enter to perform conversion based on the rate on a specific date. It
applies to the immediate delivery of currency.

 Corporate Rate:
An Exchange rate that we define to standardize rates for our company. This rate is the standard
market rate determined by the senior financial management for use through out the organization.

 User Rate:
Conversion rate that is defined by the user.
EMU Fixed Rate: An exchange rate that is provided automatically by the General Ledger while
entering journals. It uses a foreign currency that has a fixed relationship with the euro.
Transaction Calendar: Defines the business days and holidays for any calendar.
Accounting Calendar: Defines different types of calendars namely Fiscal, Federal Fiscal, Month
etc.

20)What is Security Rule?

Ans) Security Rules are defined to control the access of a flexfield segment value (Financial
information) at a responsibility level.

21) What are Cross Validation & ADI?

Ans) CVS – Cross validate segments – Allows only valid code combinations.
ADI – Allow dynamic inserts. – Allows any code combination irrespective of validity.
ADI would prevail if both of CVS and ADI are checked.

22)What is Translation?

Ans) Translation is a process used to convert functional currency to other reporting currencies at
the account balances level.

23)What is Revaluation?

Ans) It is process used to revalue assets and liabilities denominated in foreign currency into
functional currency based on period end exchange rate we specify. Unrealized gains/losses are
resulted because of exchange rate fluctuations which are recorded in unrealized gain/loss account
in GL.

24)What is FSG (Financial Statement Generator)?

Ans) Financial statement generator feature helps us to generate reports such as balance sheets
and income statements with out programming. It also provides a high degree of control on the
rows, columns, contents and calculations on the report. Different components such as row set,
column set, content set, row order, display set have to be defined before a statement is generated,
of which row set and column set are mandatory.

25) What is Consolidation?

Ans) Consolidation is a period-end process of combining the financial results of separate

business subsidiaries with the parent company to form a single combined statement of financial
results.

26) At what level General Ledger data is secured?

Ans) GL data is secured at Set of Book level. Subledger module data is secured at Responsibility
level (i.e., at Operating Unit Level).

27) Difference between Primary Ledger and Secondary Ledger in R12 ?

Ans) Primary ledger:

The primary ledger acts as the primary accounting representation

Secondary Leger:
Secondary ledgers represent the primary ledger's accounting data in another accounting
representation that differs in one or more of the following ways:

 chart of accounts
 accounting calendar/period type combination
 currency
 subledger accounting method
 ledger processing options

Use secondary ledgers for supplementary purposes, such as consolidation, statutory reporting, or
adjustments for one or more legal entities within the same accounting setup. For example, use a
primary ledger for corporate accounting purposes that uses the corporate chart of accounts and
subledger accounting method, and use a secondary ledger for statutory reporting purposes that
uses the statutory chart of accounts and subledger accounting method. This allows you to
maintain both a corporate and statutory representation of the same legal entity's transactions in
parallel.
Assign one or more secondary ledgers to each primary ledger for an accounting setup.
The secondary ledgers assigned can only perform the accounting for the legal entities within the
same accounting setup.