Overview of the Oracle

General Ledger Process

11i General Ledger Management Fundamentals

Copyright Oracle Corporation, 2003. All rights reserved.

Objectives
After completing this lesson, you should be able to do
the following:
Identify the steps required to complete the
accounting cycle using Oracle General Ledger.
Describe how Oracle General Ledger integrates
with other Oracle eBusiness applications.
Describe the implementation considerations for
setting up and using Oracle General Ledger and
the Oracle eBusiness Suite.

Copyright Oracle Corporation, 2003. All rights reserved.

Agenda

Overview of Oracle General Ledger

Describing key functional areas of General Ledger

Copyright Oracle Corporation, 2003. All rights reserved.

Oracle General Ledger Overview

Other Subledgers
Manufacturing

Customer
Relationship
Management

Oracle General Ledger

Projects
Oracle Financials
Human Resources
Management

Copyright Oracle Corporation, 2003. All rights reserved.

General Ledger Overview

Other Subledgers

Review
Edit

General Ledger
Record
Analyze and
Manipulate

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Functions and Features

Information Access
Data Collection

Financial Controls
Financial Reporting
and Analysis
Copyright Oracle Corporation, 2003. All rights reserved.

General Ledger Accounting Cycle

Consolidate

Review/
Correct
Balances

Revalue/
Translate

Run Reports/
Close Period

Open Period

Review
Post

Create/Reverse
Journal Entries

Copyright Oracle Corporation, 2003. All rights reserved.

Implementation Considerations
for Oracle Financials

Oracle Applications
without customization

Legacy
system
Customized Oracle
Applications

Future Oracle
upgrades

Costly future
upgrades

Copyright Oracle Corporation, 2003. All rights reserved.

The Best Project Team for the Job

Client experts

Implementation
consultants

End users

Implementation team

Copyright Oracle Corporation, 2003. All rights reserved.

Critical Implementation Issues

Identify critical implementation issues that affect
multiple business areas:
Shared information
Information flows
Open interfaces
Non-Oracle systems

Copyright Oracle Corporation, 2003. All rights reserved.

Sharing a Set of Books

across Oracle Applications
Many elements of an Oracle General Ledger set of
books are shared with other Oracle applications.

Account Structure
Value sets
Segment values
Security rules
Cross-validation rules

Accounting Calendar
Periods
Period types

Currencies
Daily rates
Rate types

Journal Entries
Sources
Categories

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Interface Information: Accounting Entries

Purchasing

Inventory

Accrued
receipts

Salary/Deductions

Inventory
Costs/COGS

Revenue/Expenses

WIP job and

other costs

Invoices/Payments

Work in
Process

Payroll

Projects

Payables
Additions
Assets

Financial
Analyzer

Specified data
and structures
Budgeted
amounts

Revenue, receivables
Cash received
Receivables
General Ledger

Copyright Oracle Corporation, 2003. All rights reserved.

Integrating with Subledgers

Subledgers

GL_BALANCES

GL_INTERFACE

Post

Journal
Import

Journals

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Importing to General Ledger

from Non-Oracle Applications

From ADI
Journal Import

ADI
Spreadsheet

Budgets

Other feeder
systems
General Ledger

Copyright Oracle Corporation, 2003. All rights reserved.

Agenda
Overview of Oracle General Ledger
Describing key functional areas of General Ledger

Copyright Oracle Corporation, 2003. All rights reserved.

Elements Required for a Set of Books

A Set of Books requires three elements:

Chart of accounts

Accounting calendar

Currency

Copyright Oracle Corporation, 2003. All rights reserved.

Multiple Companies
within a Single Set of Books

Consolidated Parent 99

Parent Subsidiary Subsidiary Subsidiary Subsidiary Eliminating

02
03
04
05
Company
01
06

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Multiple Companies
Using Multiple Sets of Books

Parent
Acme Japan

Acme Canada

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Acme UK

Journal Processing

Manual
Journal
Entry

Reversing
Journal
Entry

Recurring
Entries
Mass
Allocations

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Balancing Intercompany Transactions

for Multiple Companies
within a Single Set of Books

Subsidiary
03
Parent
01

Subsidiary
04
Subsidiary
02

Eliminating
Company 06

Subsidiary
05

Copyright Oracle Corporation, 2003. All rights reserved.

Global Intercompany System

Acme Japan

Acme US

Acme UK
GIS

Copyright Oracle Corporation, 2003. All rights reserved.

Foreign Currency Concepts

The three key foreign currency concepts in Oracle
General Ledger are:

Conversion

Revaluation

Translation

Copyright Oracle Corporation, 2003. All rights reserved.

Multiple Currency Accounting

Multiple Sets of Books versus

MRC Sets of Books

Enter
transactions in
the Primary
Book

Converted in the Reporting Books

Transactions must be entered,

revalued, and translated in
each Set of Books.

Transactions entered in the

Primary Set of Books are
automatically converted to all
Reporting Sets of Books.

Copyright Oracle Corporation, 2003. All rights reserved.

Consolidating Multiple Companies

within a Single Set of Books

Consolidated Parent
Financial Statement Generator
Eliminating entries

Parent 01 Subsidiary Subsidiary Subsidiary Subsidiary Eliminating

02
03
04
05
Company
06
Copyright Oracle Corporation, 2003. All rights reserved.

Consolidating Multiple Companies

with Multiple Sets of Books

Acme Parent Japan

Global Consolidation System

Acme US

Acme Canada

Acme UK

Copyright Oracle Corporation, 2003. All rights reserved.

Budgeting
Oracle General Ledger gives you a variety of tools to
create, maintain, and track your budgets, including the
ability to upload budget amounts from an Excel
spreadsheet.
January 2002
Cost Center 100
Actuals

Budgets

Variance

Salaries

14,000

15,000

1,000

Supplies

4,000

3,500

(500)

Travel

1,500

1,700

200

TOTAL

19,500

20,200

700

Copyright Oracle Corporation, 2003. All rights reserved.

Reporting and Analysis

Oracle General Ledger provides you with a variety of
reporting, consolidating, and analysis capabilities.
Online account and transaction analysis
Standard reports and listings
Financial Statement Generator reports
Applications Desktop Integrator Report Wizard
Applications Desktop Integrator Analysis Wizard
Oracle Financial Analyzer

Copyright Oracle Corporation, 2003. All rights reserved.

Standard Reports and Listings

Oracle General Ledger delivers over 70 standard
reports. The following categories provide financial and
non-financial information for General Ledger data.
Account Analysis

Budget

Chart of Accounts

Consolidation

Currency

General Ledger

Journals

Trial Balance

Execution

Other

Copyright Oracle Corporation, 2003. All rights reserved.

Financial Statement
Generator Reports (FSG)
Oracle General Ledgers Financial Statement Generator
(FSG) is a powerful and flexible tool you can use to
build your own custom reports without programming.
Row

Report
Column

Copyright Oracle Corporation, 2003. All rights reserved.

Oracle Financial Analyzer

Perform sophisticated analysis of actual and budget
data maintained in Oracle General Ledger.

Copyright Oracle Corporation, 2003. All rights reserved.

Applications Desktop Integrator

Applications Desktop Integrator combines the power of
Oracle General Ledger journal entry, budgeting, and
report creation, submission, publishing, and analysis
within an Excel spreadsheet environment.

Journal Wizard

Analysis Wizard

Budget Wizard

Request Center

Report Wizard

Account Hierarchy Editor

Copyright Oracle Corporation, 2003. All rights reserved.

Global Accounting Engine

Oracle Payables

Oracle Receivables

Oracle Inventory

Global
Accounting
Engine

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Oracle
General
Ledger

Accounting Methods
Accounting methods differ significantly around the
world. Similar business processes result in different
year-end results. Three major differences are:
Valuation methods
Accounting events
Focuses of interest

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Accounting Differences
Country legislation differs in the way that accounting
entries are recorded for the following:

Goodwill

Deferred Tax Income

Research and Development

Finance Charges on Inventory

or Purchases

Inventory Valuation

Pension Funds

Leasing

Unrealized Gain or Loss

on Currency Revaluation

Copyright Oracle Corporation, 2003. All rights reserved.

Global Accounting Engine Features

Complying with regulations of certain European
countries.
Defining accounting rules per set of books.
Complying with legal and fiscal audit trail
requirements.
Reconciling your subledger accounting data with the
Oracle General Ledger.
Creating journal entries and detailed balances for
control accounts.
Securing subledger accounting entries.
Using online drilldown to the original documents in
the subledgers and country-specific reporting.
Copyright Oracle Corporation, 2003. All rights reserved.

Summary
In this lesson, you should have learned how to:
Identify the steps required to complete the
accounting cycle using Oracle General Ledger.
Describe how Oracle General Ledger integrates
with other Oracle eBusiness applications.
Describe the implementation considerations for
setting up and using Oracle General Ledger and
the Oracle eBusiness Suite.

Copyright Oracle Corporation, 2003. All rights reserved.