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Prepared by

TEJESHWAR KUMAR.V.
General Ledger Overview
Edit
Analyze, Correct,
and Adjust
Review
General Ledger
Record
Other Subledgers
Central Repository of all Accounting Information
Integration of GL with other
Modules
Purchasing Inventory
Payroll Payables
Receivables
Assets
General Ledger
Integration of GL with other
Modules Contd.
Purchasing: Accrual of receipts not invoiced
Payables: Invoices, payments, realized gain and loss, invoice price
variance
Assets: Capital asset additions, cost adjustments, transfers,
retirements, depreciation, reclassifications, also construction in
process
Inventory: Inventory, cost of goods sold (COGS), cycle count and
physical inventory adjustments, receiving transactions, delivery
transactions, intercompany transfers, sales order issues, internal
requisitions, subinventory transfers



Integration of GL with other
Modules Contd.
Receivables: Invoices, receipts, adjustments, debit memos, credit
memos, cash, chargebacks, realized gain and loss
Payroll: Salary, deductions and taxes


Ledger Components
Chart of Accounts
Calendar
Currency
Accounting Method
Secondary Ledger/Reporting
Currencies
Currency
If difference is
only currency,
Corporate
Chart of Accounts
Monthly
Calendar
Accounting
Method
US GAAP
Accrual
Secondary Ledger
Reporting
Currencies
If one or more of the following are different:
Ledger Definition
Values for Account Segment
Values for Account Segment
Contd.
Accounting Calendar Definition
Currency Definition
Ledger Components
Defining Cross-Validation Rules
Prevent the creation of invalid account combinations by setting up
cross-validation rules.
Define cross-validation rules before entering a chart of accounts
Division:
01 US
02 Asia
Region:
100 New York
400 Tokyo
Account:
4100 Sales
7550 Travel
01 100 4100
01 400 4100
Valid
Invalid
Cross-Validation Rule
Journal Entry Types
Manual
Journal
Entry
Reversing
Journal
Entry
Recurring
Entries
Mass
Allocations
Manual Functional Currency, Foreign Currency, STAT,
Inter-Company
Fund Check and
Reservation
Journal Entry Types Contd.
Manual Journal Entries: Used for most accounting transactions.
Examples - Adjustments.
Reversing Journal Entries: Created by reversing an existing journal
entry. Reversals can be posted to a current or any future open
accounting period.
Switch Debit/Credit
Change Sign
Recurring Journal Entries: Defined in templates and then generated
when required. Examples include bad debt expense and periodic
accruals.




Journal Entry Types Contd.
Mass Allocation: Journal entries that utilize a single journal entry
formula to allocate balances across a group of cost centers or divisions.
Examples include rent expense allocated by headcount or
administrative costs allocated by machine labor hours.

Journal Record
Recurring Journal
Mass Allocation Journals
Using Journal Entry Sources and
Categories
Journal entry sources and categories can be used to differentiate
journal entries and to enhance your audit trail
Pre-defined/User-defined
Source Origin of JV (Import References, Approval).
Category Recognize the event being accounted


Assets
Purchasing
Projects
AX Receivables
Manual
Budget Journal
Payroll


Accrual
Adjustment
Credit Memos
Headcount
Receipts
Revaluation

Categories
Sources
Journal Source Definition
Journal Category Definition
Every journal entry in Oracle General Ledger has three components:
Enter Journals
Header Lines Batch
Journal Components & Posting
Journal Post Batch, Manual, Schedule AutoPost
Posting to a Prior Period
July
Open
June
Open
May
Closed
Current period
Prior period Current Accounting Year, Previous Accounting Year
Overview of AutoPost
Define criteria
Schedule Submit
Review report
AutoPost Criteria Set/AutoReverse
Days before current date
Days after current date
Priority number
Source
Category
Balance Type
Period
0 to 1000
0 to 999
1 to 99
Specify or All
Specify or All
Specify or All
Specify or All
Parameters Value
AutoReverse Set at Journal Category
GL: Launch AutoReverse After Open Period
Journal Reversal Criteria
AutoPost Criteria
Drilling Down to Subledger Details
Summary Activity T Accounts
GL Account Inquiry
Balance
JE Lines
AP AR Inventory
PO Assets
View Subledger Accounting Entry
Enter JE View JE
View Subledger Transactions
View Accounting Lines
Data Access Set
Security feature that enables you to grant and secure
access to ledgers, or portions of a ledger, or by a
ledgers balancing segment value
Access Privilege can be Read Only or Read/Write
Data Access assigned at a Responsibility Level
Full Ledger Data Access
Balancing Segment Data Access
Data Access Set Assignment
Financial Statement Generator
Financial Statement Generator (FSG) is a powerful and flexible
report building tool you can use to build your own custom
financial reports without programming
Row
Report
Column
Steps for FSG Financial Reports
Use a four-step process to create and run customized financial
reports
1. Define row sets.
2. Define column sets.
3. Define financial reports and report sets.
4. Submit financial reports and report sets.
Defining Row Sets
Format and content of rows in financial reports
Income Statement
Company 1
PTD YTD
3,000 6,200
1,000 1,000
2,000 5,200
Row Set A
Balance Sheet
Company 1
Cash
Investments
Receivables
THIS YR LAST YR
100 200
600 400
980 700
Row Set B
Sales
Returns
Net Sales
Assigning Accounts
The sign and range of accounts for each row in your row set,
should be selected
Account Assignment
Sign Low
High
Display
+ 01-110-1100-000 01-110-1500-000
T-T-T-T
Report Output includes one line:
TOTAL
5,000
Defining Column Sets
Format and content of columns in financial reports
Column Set A
Column Set B
Income Statement
Company 1
Sales
Returns
Net Sales
PTD YTD
3,000 6,200
1,000 1,000
2,000 5,200
Balance Sheet
Company 1
Cash
Investments
Receivables
THIS YR LAST YR
100 200
600 400
980 700












Defining and Requesting Financial
Reports
Mix and match row sets and column sets to create a variety of
reports
Row Set B
Row Set A
Column
Set B
Income Statement
Company 1
Sales
Returns
Net Sales
THIS YR LAST YR
1000 900
60 50
940 850
Balance Sheet
Company 1
Cash
Investments
Receivables
PTD YTD
3,000 6,200
1,000 1,000
2,000 5,200












Column
Set A
Row Set
Row Definition
Column Set
Column Definition
Building Column Set
Building Reports
Translation
Revaluation
Conversion
Foreign Currency Concepts
There are three key concepts in Oracle General Ledger that pertain
to foreign currency:
Foreign Currency Concepts
Contd.
Conversion - Refers to foreign currency transactions that are
immediately converted at the time of entry to the functional currency
of the ledger in which the transaction takes place
Revaluation - Adjusting asset or liability accounts that may be
materially understated or overstated at the end of a period due to a
significant fluctuation in the exchange rate between the time the
transaction was entered and the end of the period.
Translation - Restating an entire ledger or balances for a company
from the functional currency to a foreign currency.

Conversion Example
Functional currency
Entered Journal Entry Lines
DR. Accounts Receivable.10,000 Euro
CR. Revenue10,000 Euro
CONVERT 1 Euro = .8 US Dollars
DR. Accounts Receivable. 8,000 US$
CR. Revenue... 8,000 US$
Foreign currency
Conversion Process
Daily Rates are used for conversion
Rated Entered directly in Journal
Rates derived from Rate Table

Rate Derivation from Rate Table
From To
Currency
Date Type
Conversion
USD EUR 30-Sep-03 Spot .900252 1.1108000871
USD JPY 30-Sep-03 Spot 116.81 .0085609109
The following currency rates have been defined:
Currency Rates Manager will calculate the cross
rate between EUR and JPY and its inverse
From To Date Type
EUR JPY 30-Sep-03 Spot 129.753
EUR JPY
.0077069509
JPY EUR
Using Cross Rate Rules
Revaluation Process
Functional currency Functional currency
Conversion at the time of the
foreign currency transaction
Revaluation at the end of the
accounting period
Foreign
currencies
Foreign
currencies
Revaluation Example
REVALUE 1 Euro = .81 US Dollars
CR. Unrealized Gain.. 100 US$
Entered Journal Entry Lines
DR. Accounts Receivable.10,000 Euro
CR. Revenue10,000 Euro
Convert 1 Euro = .8 US Dollars
DR. Accounts Receivable. 8,000 US$
CR. Revenue... 8,000 US$
DR. Accounts Receivable. 100 US$
Revaluation form
Translation Overview
Foreign currency translation is a process that lets you restate your
functional currency account balances into a reporting currency
Foreign currency
Functional
Balance Sheet
Assets Liabilities
Foreign
Balance Sheet
Assets Liabilities
100,000 60,000
Period end
Rate = 0.75
Historical
Rate = 0.70
75,000 45,000
Owner's Equity
Owner's Equity
40,000
28,000
Period end
Rate = 0.75
Functional currency
Translation Screen
Overview of Consolidations
Consolidate any number of subsidiaries that use different ledgers,
even those with different charts of accounts, currencies, and
calendars
Subsidiary 1

Subsidiary 2 Subsidiary 3
Parent
Run Consolidation
Consolidation Screen
Consolidating Multiple
Companies with Multiple Ledgers
Parent
company
Subsidiary 1
Subsidiary 2 Subsidiary 3
Co-CC-Acct
Quarterly
USD
Co-Acct-Prd
Monthly
Euro
Co-Acct-CC-Prd
Weekly
AUD
Structure: Co - CC - Acct - Prd
Calendar: Monthly
Currency: USD
Map COA
and
Consolidate
Mapping Rules
You can define segment rules, account rules or a combination
of both
If you use segment rules you must define a segment rule action
for each segment in the parent's chart of accounts
Account rules override segment rules, if there is a conflict.
Suggestion:
Use segment rules to define the default mapping
Use account rules to define exceptions
COA Mapping
Creating Eliminating Entries
Company A Company B
Intercompany Eliminations
Program
Source
Account
from
Subsidiary
Run Elimination Define Elimination Set
Source
Account
from
Subsidiary
Target Account in
Parent or
Elimination
Company
Target
Account in
Parent or
Elimination
Company
Elimination Set Definition
A budget consists of periods, accounts, and amounts.
Name: FY96PLAN
CC100 .. $3000
CC200 .. $1500
Jan-1994 to Dec-1994
Periods

Accounts

Amounts
Anatomy of a BudgetOverview
Step 1: Define budgets and budget organizations.
Step 2: Enter budget amounts.
Step 3: Review and correct budgets.
Step 4: Freeze budgets.
Step 5: Report on budgets.
Budget Accounting Cycle
Creating a Budget
Organization
-> Accounts
01 200 5800
01 200 6300
01 200 7340
Budget -> Periods
Amounts are entered
into a combination of:
Budget Definition
Budget Organization Definition
Account Assignment/Budgetary
Control
Budget Allocation
You can use the following methods to structure
budgets:
Top-down budgeting
Bottom-up budgeting
Budget Hierarchies
Period Close Checklist
Transfer and import data from all subledgers
Perform reconciliation of subsidiary ledgers
Close the period for each subledger
Revalue foreign currency balances
Verify all journals are posted
Translate balances to parent's currency
Consolidate subsidiary ledgers
Run Trial Balance and other reports
Close the period and open the next period
End of Presentation