General Ledger
1. What are the key functions provided by GL?
General Accounting Budgeting
Multiple Currencies Inter-company Accounting
Cost Accounting Consolidation
Financial Reporting
2. What are the three types tables available in Oracle Applictions?
Master Table: Store Static data,. This is shared with in each module as well as across all of the Oracle financial application modules ex. ACCOUNTS, SUPPLIER, CUSTOMER etc.
Setup Table: it store setup data. That is never shared between applications such as application parameters and LOOK UP tables.
Transaction Tables: these tables stores day-to-day transaction data such as payables invoices, journal entries etc.
3. What are the Oracle General Ledger Setups?
1. Chart of Accounts
2. Account combinations (o)
3. Period types
4. Accounting Calendar
5. Transaction Calendar (o)
6. Currencies
7. Set of Books
8. Assign set of books
9. Currency exchange rate types
10. Currency exchange rates
11. Journal Sources (o)
12. Journal Categories (o)
13. Suspense Accounts (o)
14. Inter-Company Accounts (o)
15. Summary Accounts
16. Statistical Units measures (o)
17. Historical Currency Exchange Rates
18. Document sequences (o)
19. Automatic Posting (o)
20. Encumbrance Types (o)
21. Concurrent program Controls (o)
22. Storage Parameters (o)
23. Budgetary Control Groups
24. Profile options
25. Descriptive Flexfileds
26. Open and Close Accting periods
4. Chart Of accounts: A Chart of Accounts is the account structure we use to record accounting transactions and maintain accounting balances. It is a key flex field.
5. Flex Fied: A Flex Field is a combination of one or more data segments defined by the user. For Chart of accounts, we configure up to 30 segments in a flexfield and min is 2.
Descriptive Flexfield: We can store the additional Information in customized form or existing form.
6. Value Set: value set defines the valid values for each segment of our Chart of Accounts. There are 6 validations types 1. Dependent 2. Independent 3.none 4. Pair 5 special 6. Table
INDEPENDENT: An independent value set provides a pre-defined list of values for a segment.
DEPENDENT: A dependent value set is similer to independent value set, or dependent value set depends on any independent or dependent value set.
TABLE: Table provides list of values like an independent set. But values will stored in application table.
NONE: No restrictions.
7.Transactions: Exchange of goods and services with the intension of earning
8.What is a Qualifier?
Qualifier is a behavior of a segment.
9. Flex field Qualifiers
Companies ---------- Balancing segment
Departments ----------Cost Centers Segment
Accounts ----------Natural Accounts Segment.
10. What are the format types available in Values sets?
Character, date, date time, number, std dgate, std date time,. Time.
11. What are Accounting Qualifiers?
Allow budgeting
Allow positing
Account type
Control Account
Reconsiliation flag
12. Security Rules:s
These are used to limit access to certain segment values for a particular segment.
13. Cross Validation Rules:
These rules validate data across segments of a flex field.
14. Types of Calender:
Normal: January to Dec.
Fiscal: April to march.
15. Period Types:
Daily, Month, Quarter, Year.
16. Accounting Calender:
It is used to define the no. Of periods in the calendar year. Our calendar can contain both adjusting and non-adjusting accounting periods.
17. Transaction Calender:
It is used to define the business days of an organanization.
18. Types of Currency:
Functional currency: The currency we define in our SOB.
Foreign currency
19. S.O.B:
Put together information is called as Sets Of Books. It consists of Cart of Accounts, Currency, Calender and Six mandatory Accounts.
20. What are Mandatory Accounts:
| Mandatory Account | Usage | Acct Type |
| Retained Earnings | Last Year closing balances C/F (carry forward) to current year balance | Ownership |
| Translation Adj Acct | When the currency conversion takes place the difference amt is stored in this acct | Asset/liability |
| Suspense Account | The variation of credit and debit amounts is suspense acct | Asset/liability |
| Rounding Difference Acct | The difference amt after rounding the amount is posted to this account. | Expense/Revenue |
| Net Income Acct | Surplus of profit and loss account. | Ownership No budget and No posting |
| Reserve for Encumbrance | Planning for reserving some amount(budget) | ownership |
21. States of Periods.
Open, Close, Future Entry, Permanently closed.
22. What is Journal?
A journal is a form in which we enter the business transactions.
23. What are the Balance Types?
Acutal, Budget, Encumbrance.
24. Categories of Journals.
Ø Batch Journal.
Ø Source Journal
Ø Statistical Journal
Ø Suspense Journal
Ø Encumbrance Journal
Ø Reverse Journal
Ø Tax Journal
Ø Recurring Journal
§ Standard Recurring Journal.
§ Formula Recurring Journal.
§ Skelton Recurring Journal.
25. Batch Journal:
A group of common journals is called as a Batch
26. Source Journal:
A source journal is a journal where we can get the journal information from other modules.
27. Statistical Journal:
Statistical journal entries do not require balanced debit and credits. Here we use ratios to calculate amounts.
28. Suspense Journal:
When the debit amount and credit amount are not equal in the journal entry then the deficit amount is added to suspense account and such types of journals are called as suspense journals.
29 Encumbrance Journal:
For funding budgets we have to enter the encumberance journals. Using this amount we can perform the actual expenses. The part of the budget we reserve is called as reserve for encumberance. The journals involving this budget are called as encumbrance journals.
30. Reverse Journal:
We cannot alter the posted journals. We can only post additional journals which contain reverse to that of credit and debit amounts of the original journal. This types of method is called as reverse journal.
31. Tax Journal:
The tax journals will calculate the tax on the credit and debit amounts in the journal depending on the tax information.
32. Inter-company Journal:
If multiple companies in our enterprise share the same SOB then we can automatically balance inter-company journals. Here we define intercompnay accounts for different combinations of sources, category and balancing segment value.
32. Recurring Journals:
Journals which will be repeated automatically are called as Recurring journals.
The advantage of recurring journal is one journal can be posted in each and every month without creating each and every time.
There are three types of recurring journals.
Standard R.J: Where we know the fixed amount and account information.
Formula R.J: Here we may or may not know the actual information. We calculate the amounts depending on a formula. In formula block first field should be “enter”
Skelton Journal: It is raised when we know only account information but not amount information.
Control Total:
This is used to raise the journal with a fixed amount. The error message is not displayed at the saving time but it is displayed while posting the journal.
33. Mass Allocation (Allocation journal):
Mass allocation is used to avoid the repeating entry of journals for different departments and it considers only actual accounts.
(Or)
When we are trying to allocate an amount for a period for a combination of segment values is called as Mass Allocation.
Mass allocation formula:
Cost pool * usage factor/total usage factor
Summary Accounts:
Summary accounts store balances of multiple accounts. We need summary template to define a summary account.
Roll up groups:
A roll up group is a collection of parent values for a given segment. This is used to provide a condition to the template.
Amount types:
PTD (period-to-date) YTD (year-to-date)
PJTD (project-to-date) QTD (Quarter-to-Date)
Financial Statement Generator A powerful and flexible report building tool for Oracle General Ledger. You can design and generate fiancial reports, apply security rules to control access to data via reports, and use specific features to improve reporting productivity.
Budget
It is one of the management tool by using which we can estimate the amounts for a specific range of periods for an organization.
Each budget can have maximum of 60 periods.
Budget can have any one of the following states
Current (the first budget we define in our sob)
Open (To activate a budget)
Frozen (to deactivate or close a budget)
For using budgets we have to define a budget and a budget organization.
Budget Types:
Planning Budget:
We can just plan but we cannot raise journal entries.
We can convert it into funding budget by enabling Required Budget Journal option.
Fund check levels are: none, advisory, absolute.
Funding Budget:
This is the actual budget. Once the budget is approved, the organization can start spending the budget amount for various expenses.
Budget Journals:
It is a combination of budget organization and budget. These offer an alternative way to enter budget amounts, and they assist in maintaining audit trials.
Budget Formulas
We can also enter budget amounts by using budget formulas. Budget formulas similar to recurring formulas for actual amounts. To use budget formulas we must first define the budget formula and generate it
ALLOCATED AMOUNT=COSTPOOL * USAGE FACTOR/TOTAL USAGE
Cost pool: the total budget amount that has to be allocated to the child values in organizations
Usage Factor: to allocate the budget amount to the child values the ratio by which you are going to distribute the cost pool amount.
TOTAL USAGE: the total ratio of usage factor would be the total usage.
Currency Translations:
Types of Rates:
Period rates, Liability rate, Historical Rate.
Foreign to functional:
Revaluation: Within the company.
Consolidation: Multiple companies
Functional to Foreign:
Translation: within the company
Mrc: Multiple companies.
Translation amd MRC will not affect the actual balances but revaluation and consolidation affects the actual balances.
Translation:
1. This is only for reporting purpose. It does not effect the actual balances
2. It is used for converting functional currency to foreign within the single company.
3. This is used for subsidiary corporations and we cannot perform for the first period of a calendar.
Revaluation:
1. This effects on the actual balances.
2. Before and after periods should be open.
Consolidation:
1. This is used when the chart of accts differs between each other.
2. This will effect the actual balances.
3. The chart of accts and currency may be same or different but the period(calendar) must be same.
4. Two typs of consolidation: Global Consolidation, Normal consolidation.
MRC
1. This is used for converting functional transactions to foreign currency for reporting purpose.
2. The CoA and calendar can be same but the currencies should be different.
3. This allows us to maintain accounting transactions in more than one functional currency.
Multi-Org:
Single installation of multiple operating units is called Multi-Org.
Flow of Multi-Org:
Business Group.
Set of Books.
Location.
Hr Organization.
Legal Entity
Operating Unit.
Inventory.
Oracle Purchasing
Requisition:
Requisition is a document where the need for the material is specified and is raised by an employee.
Types of Requisitions.
1. Internal Requisition: Transferring the material from one dept to another within the same company and not from the third party (if the reqt is fulfilled within the company) is known as Internal requisition.
2. Purchase Requisition: If we want to purchase the material from outside vendor then we raise Purchase requisition.
RFQ (Request for Qutotation):
The purchasing manager asks the supplier to send the quotation for the required material with the help of RFQ.
Types of RFQ:
1. Standard RFQ: The normal quotation is the standard rfq.
2. Bid RFQ: It is raised when we are planning to purchase heavy material which lasts longer.
3. Catalog RFQ: When we request the supplier to send catalog of items along with the quotation then it is called as catalog rfq.
Quotation:
A statement of the price, terms and conditions of sale, a supplier offers us for an item or items. It is a detailed description of goods or services offered by the supplier.
Types of Quotations:
1. Standard Quotation
2. Bid Quotation
3. Catalog Quotations
Purchase Order:
It is a statement which contains the required items, quantity, price,date when we need and the location where we need.
Types of Purchase Orders:
Blanket PO
Contract PO
Planned PO
Standard PO
Standard PO:
It is used for only one time purchase of various items when we know the details of goods or services we require, estimated cost, qty, delivery schedules and accounting distributions.
Blanket PO:
It is raised when we know the details of goods or services that we plan to buy from a specific supplier in a period, but we don’t know the details of delivery schedules.
Contract PO:
Here we don’t know any information regarding items but just know the terms and conditions.
Planned PO:
A planned po is along term agreement committing to by items or services from a single source. Here we know all the details.
| | Standard P.O. | Planned P.O. | Blanket P.O. | Contract P.O. |
| Terms & Conditions | Yes | Yes | Yes | Yes |
| Goods or Services | Yes | Yes | Yes | No |
| Pricing Known | Yes | Yes | May be | No |
| Quantity Known | Yes | Yes | No | No |
| A/C Distribution | Yes | Yes | No | No |
| Delivery Schedule | Yes | May be | No | No |
| Can Be encumbered | Yes | Yes | No | No |
| Can Encumber Releases | N/A | Yes | Yes | No |
Main concepts in PO:
Ø Item details
o Defining item category and its segment values
o Registering the item category.
o Define category sets and item.
Ø Employee
o Defining job and position of the employee
o Defining employee and his approval limits
o Defining the employees as buyers
§ Define and assign the approval groups to the employees
Ø Supplier
o Define and approve the supplier
o Define the supplier list
Flow of Purchase Order:
Ø Raise the requisition.
Ø Check whether the requisition is approved or not.
Ø Raise RFQ.
Ø Raise the quotation.
Ø Raise the purchase order.
Ø Receipts
Ø Inspect the goods
Matching approval levels:
| 2-Way Matching | 3-Way Matching | 4-Way Matching |
| Invoice à P.O. | Invoice-à P.O. Invoice à Receipts | Invoice-à P.O. Invoice à Receipts Invoice à Inspect |
ORACLE PAYABLES
Concepts of Payables:
Defining Bank accounts (supplier bank a/c and our Internal bank a/c)
Defining Supplier
Defining payment terms and payment formats
Defining Distribution Sets
Raise Individual invoices; batch Invoices, Recurring and Interest Invoices
Payments
Batch payments
Individual payments
Pre-Payments
After all a run report called TRANSFER TO GL
Holds:
Holds are the advanced feature of applications, which restrict the payments of invoices. We have two types of holds. 1. System holds 2.User-Defined Holds
Invoice:
Invoice is a legal document, which we receive from the supplier that consists of amounts owed to the supplier for purchase goods or services.
Types of Invoices:
ª Standard Invoices
ª Expense Invoices
ª Gate Way Invoice or Recurring Invoice
ª Withholding invoices
ª Debit Memo
1. Credit Memo
2. Pre-payment Invoices
3. Quick Match Invoices
4. PO Default Invoices
5. Mixed or Miscellaneous Invoices
Standard Invoices: Issued by the supplier and
Batch Invoice: it is a group of invoices
Gate Way Invoice or Recurring Invoice: a feature that lets you create invoice for an expence that occurs regularly and not usually invoiced. Examples: Rent or lease invoices
Interest invoices: an invoice that oracle payables create to pay interest on post-due invoice
Debit invoices: An invoice we generate to send to a supplier representing a credit amount that the supplier owes to us. A debit invoice can represent a quantity credit or a price reduction.
Credit Invoices: An invoice we receive from a supplier representing a credit amount that the supplier owes to us. A credit invoice can represent a quantity credit or a price reduction.
Pre-payment Invoices: this is the advance payment given against the invoice given by the supplier.
RECEIVABLES
Mandatory setups in Accounts Receivables:
1. Defining the customer
2. Define customer bank
3. Payment terms
4. Defining the dunning letters
5. Defining the statements
6. Defining auto cash rule set
7. Customer profiles
8. Defining collector
9. Defining the sales person
10. Auto Lockbox
The key flexfields of AR are:
Sales tax location flex field
Territory key flex field. (Its segments are city, state, country)
The works under AR are classified into 4 workbenches
1. Transaction work bench
These deals with the transactions such as invoices, collections, receipts etc.
2. Receipts work bench
This tracks the receipts received from the customer manually or automatically. The customer requires a bank to pay the cheques and the supplier requires an internal bank account.
3. Bills receivable work bench
4. Collection workbench.
Payment terms:
Payment terms determine the payment schedule and discount information for customer invoices, debit memo and deposits.
These specify the due date and discount date for the items of the customers. Payment terms include discount percent for early payment and we can assign multiple discounts to each payment term.
Distribution sets:
These sets are used when we enter miscellaneous cash receipts that have frequently used revenue accounts. Here invoice amount is distributed to various revenue accounts.
Auto cash rule set:
The rules that we set how to adjust the amount that we receive from an old customer.
Dunning letters
The notes that we send to the customer to do his payments are called as Dunning letters.
Statement cycles:
These are legal documents just like invoices. Any transactions that we are raising a customer are going to be printed on a paper. These are called as the statement cycles.
Transactions:
Invoice transaction
Deposit transaction
Debit memo transaction
Credit memo Transaction
Charge back transaction
Guarantee Transaction
Invoice Transaction:
Deposit Transaction:
A supplier asks a customer to deposit some amount as surety. When he pays it then the deposit transaction will be raised. The advance amount paid is called as the deposit amount.
Guarantee Transaction:
When a third party is giving guarantee to a customer then it is called as guarantee transaction. The third party gives assurance of the amount whenever the customer fails to pay his credit then we raise the guarantee transaction.
Debit memo transaction:
A substitute for an invoice is the debit memo transaction. Suppose we have raised a transaction for 10000 instead of 15000. Instead of canceling it we raise a debit memo of 5000 and the balance becomes 15000.
Credit memo transaction:
When the customer is not liable to pay the amount, which is included in the invoice, then he will send a note of credit memo. Then the supplier raises a credit memo transaction to that.
Charge back Transaction:
It is raised to cancel the due amount in the customer account in order to raise a new invoice along with the interest with the new credit period on request of customer.
Sales tax:
In a sales tax based system, receivables calculates the tax based on the address components of out sales tax structure (for ex state.country.city)
Hierarchy of tax calculation:
Customer site level
Header
Location
Item
Transferring the amount AR to GL
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