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Oracle E- Business Suite

Financials Management
 Agenda

Demonstration of Oracle Financial Modules

• Oracle General Ledger

• Oracle Payables

• Oracle Receivables

• Oracle Fixed Assets

• Oracle Cash Management

Overview of Application Integration

Depreciation/ Asset Subledger

Transactions Entries
Assets Subledger General Ledger
Accounting
Assets
Payables/ Receivables/
Expenses/ Revenue/ Receipts
Receivables
Payments
Inventory
Accruals Activity Invoices
Payables Customers
Accounting Suppliers

Requisitions Order
Items Inventory Management
Purchasing/
iProcurement Internal Requisitions
 GENERAL LEDGER

The Oracle General Ledger (GL) module of Oracle Applications is the central
repository of all financial transactions that occur in the organization.

It consist on 4 components:-

 Chart of account
 Currency
 Calendar
 Accounting convention
Oracle Procure to Pay Process

Demand Source

Purchase Request for Supplier

Quotation
requisition quote (RFQ)

Order Receive Enter Pay

Purchase order Receipts Invoice

 Accounts payable

The Oracle Payables module of Oracle E-Business Suite facilitates the

completion of procurement cycle and maintenance of supplier related
transactions.

The overall functionality can be broken as follows:-

 Supplier Maintenance

 Invoice Processing

 Payments Processing

 Payment Generation

 Period End Procedure

Suppliers

Purchase Request for

requisition quote (RFQ) Quotation

Supplier

Purchase
order Receipts Returns Payment
Invoicing

Receive
invoices
If appropriate, match invoice
to purchase order
or receipt

PO Invoice
Import/Enter
invoice

Enter basic
information

Enter detailed
Maintain invoices File invoices
information
Payment

Modify payments:
Select • Remove/add invoices
validated • Modify payment details
invoice
Pay invoice Format payments:
• Print checks
Run • Load EFT data
Record manual Pay run
payment Validate payments:
• Confirm checks
Create quick • Update invoice
payment outside Create • Payment history
Oracle single
payments
Create computer-
generated
payment
 Overview of Payables Processes

Enter supplier Import/Enter invoice Validate invoice

Pay invoice

A/P

100,000
60,000
10,000
30,000

Transfer information Create accounting

to general ledger entries in Subledger
Accounting
Matching Level
 Accounts Receivables

The Oracle Receivables module of Oracle E-Business Suite will facilitate the
completion of order to cash cycle and maintenance of customer related
transactions
 The overall functionality can be broken as follows:-
 Customer Maintenance
 Invoice Processing
 Receipt Processing
 Period End Procedure
 Receivables’ Journal Entries

Receivables’ Journal Entries are controlled by the definition of:

1. System options
2. Transaction Type
3. Customer Bill-to Site
4. Remittance Bank
5. Receivable Activity
6. Sales Person
7. Standard Line
 Determinants - Options

AutoAccounting
If an account can be defined in more than one window, AutoAccounting Setup determines
which account segment will be picked from which source. That does apply only to
transactions’ accounting since receipts’ accounting has one source (i.e., Receipt Class -
Remittance Bank). AutoAccounting applies to the following accounts:
AutoInvoice Clearing Account
 Freight
 Receivable
 Revenue
 Tax
 Unbilled Receivable
 Unearned Revenue
Cash Management:
Oracle Cash Management is an enterprise cash management solution that helps you effectively
manage and control your cash cycle. It provides comprehensive bank reconciliation and flexible
cash forecasting.
Cash management main role is reconciliation.
Introduction

1. Bank
2. Bank statement
3. Bank reconciliation
4. Manual Clearing
5. Fund Transfer
6. Cash Forecasting
7. Cash Positioning
Bank
It is a part of CM but it is shared with AP , AR and Payroll

Bank Hierarchy :

Bank

Bank branch

Bank Account

Codes Cheque Book

 Bank Statement

Manual Import

(Header)

(Lines)
 Bank Reconciliation

Automatic Direct Manual

Oracle Cash Management offers comprehensive bank reconciliation capabilities, enabling

you to maintain accurate cash balances, identify and resolve exceptions, manage bank
errors, and monitor fraud. Automating bank reconciliation dramatically reduces the
administrative time and costs for your audit and treasury departments
 FIXED ASSETS

The Oracle Assets is a complete asset management solution that helps to

maintain an accurate asset inventory and can assist in selecting the best
accounting and tax strategies in the organization.
The overall functionality can be broken down as follows:
 Addition
 Retirements
 Transfers
 Maintenance
 Period end procedures
Oracle Assets (FA)
A Complete Asset Management Solution that helps to
maintain an accurate asset inventory and can assist in selecting
the best accounting and tax strategies in the organization.

V I SI O C O R P O R A T I O N

Adjustm ents
M anual Addition

$ Fixed A ssets
Autom ated Addition Transfer

Depreciation
Retirem ent

Create Journal
Entries
Oracle Assets Specifications

Asset Book
Asset Book is used to partition your organization’s fixed assets
data. It is mandatory to set up Asset books before you can add
assets to them.

•Corporate Books are used to hold the all asset information and
to post depreciation to the relevant Corporate General Ledger Set
of Books in accordance with corporate policy and business
practice.
•Tax Books are used to retain information regarding the statutory
rules for depreciating assets/fiscal rules and asset data is copied
from the Corporate book on a regular basis excluding depreciation
information.
 Oracle Assets Specifications
Category Combination
Oracle Assets use the category structure to group assets by
financial information. Category structure is designed to record the
information according to the requirement of the organization.

In order to meet the requirements, asset category structure

classify the fixed assets into minor and sub-minor categories
for improving internal controls, facilitating tracking asset
information and better fixed asset management.

Major Category Minor Category Sub-Minor Category

XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Alpha Numeric – 25 digits Alpha Numeric - 25 digits Alpha Numeric - 25 digits
Oracle Assets Specifications
Location Combination
Oracle Assets use the location combination to group assets by
physical location and in order to track the physical location of
each asset.
In order to meet the requirements, physical location of asset is
captured and tracked at Branch, Building and Floor level.
The length and format of each segment is shown in a table
below

Branch Building Floor

XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX

Alpha Numeric – 25 digits Alpha Numeric – 25 digits Alpha Numeric – 25 digits

Oracle Assets Specifications
Depreciation of Assets
Depreciation is a non cash expense that reduces the value of an asset as
a result of wear and tear or age. Most assets lose their value over time
(in other words, they depreciate), and must be replaced once the end of
their useful life is reached. There are several accounting methods that
are used in order to write off an asset's depreciation cost over the
period of its useful life.
Oracle Assets Specifications
Integration of Oracle Assets
General
Ledger

Oracle
Inventory
Payables Assets

HR
Oracle Assets Functionalities

Following functionalities of Oracle Assets

• Quick Addition
• Detail Addition
• Mass Addition
• Adjusting Financial Information
• Adjusting Non Financial Information
• Reclassification
• Retirement
• Reinstatement
• Asset Transfer
• Depreciation Process
• Period End Process
Q&A