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123 Ebs
123 Ebs
123 Ebs
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.
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For Order to Cash Entries.
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.
Procure to Pay:
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.
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.
You can check if the item to be ordered is available in the Inventory by clicking on Availability
Button.
Save the work.
At this stage:
‘BOOKED’
‘AWAITING_SHIPPING’.
Record(s) will be created in the table WSH_DELIVERY_DETAILS with
At the same time DEMAND INTERFACE PROGRAM runs in the background and inserts
into MTL_DEMAND
IF Auto Pick Confirm in the above step is set to NO, then the following should be done.
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.
This will kick off concurrent programs like.INTERFACE TRIP Stop, Commercial Invoice,
Packing Slip Report, Bill of Lading
Create Invoice:
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
Underlying tables:
Create receipt:
AR_CASH_RECEIPTS_ALL
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.
Parameters:
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.
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.
Posting:
We have to Post journal batches that we have imported previously to update the account balances
in General Ledger.
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
GL_BALANCES.
Order Management
Inventory
Receivables
Dr Receivables
Cr Revenue
When you Receive Cash
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.
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.
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
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...
9. Stat JV: This JV we have one side of Amount either debit or Credit.....
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)
Ans) A budget against which accounting transactions are checked for available funds when
budgetary control is enable for your set of books.
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.
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. 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?
Ans)
GL_BUDGET_INTERFACE
GL_DAILY_RATES_INTERFACE
GL_IEA_INTERFACE
GL_INTERFACE
GL_INTERFACE_CONTROL
GL_INTERFACE_HISTORY
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: 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: 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.
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.
17) How many Key Flex Fields are there in General Ledger?
19)What are Spot Rate, Corporate Rate, Transaction Calendar and Accounting Calendar?
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.
Ans) Security Rules are defined to control the access of a flexfield segment value (Financial
information) at a responsibility level.
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.
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.
Ans) GL data is secured at Set of Book level. Subledger module data is secured at Responsibility
level (i.e., at Operating Unit Level).
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.