115 April 2009

Oracle E-Business Suite - Release 12 Oracle General Ledger

Technology Course MaterialApril-2009

215 April 2009

Contents

1. Introduction2. Accounting Manager Setup3. General Ledger -Key Setups4. Journal Entry5. Journal Approval6. Budgets7. Inquiry8. Foreign Currency Transactions9. Consolidation10. FSG-Financial Statement Generator11. FSG & XML Publisher12. GL Important Profile Options

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Oracle General Ledger – Introduction

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Overview

General Ledger (GL) is the core accounting module where all the accounting entries created in sub-ledgers like AP,AR,FA,CM of Finance domain or PO,INV,OM of SCM domain and other modules like Projects are stored.To start using GL module first step is to setup the GL module which includes setting up of Ledger.Ledger is setup by using Accounting setup manager.Ledger is sum of Chart of accounts, currency , calendar and accounting convention.To start using one primary ledger is required. Optionally multiple secondary ledgers can be created.Once Ledger is setup , other setups like Journal Source, category, sequencing etc.. needs to be created.GL provides users Journal Entry screen to enter Functional , foreign and tax journals. Recurring and mass allocation further simplified users job in auto generating journals.Journals from sub-ledgers are imported in GL using Journals Import feature.Users can run standard reports to view accounting details or they can create custom reports via FSG.GL also provides features like Inquiry, Budgets, consolidation and average balance processing to users.

515 April 2009

Oracle General ledger & Other Modules

Oracle Ordermanagement

Oracle Receivables

Oracle Purchasing

Oracle Inventory

Oracle Payables

Oracle General Ledger

Oracle Fixed Assets

Oracle Cash

Management

Accounting Information Flows into General Ledgerfrom all sub-ledger Modules

From Journal Entries Lines in General Ledgerone can drill down to transactions level of Sub-ledgers

***Above List of modules integrating to GL is demonstrative and not exhaustive list.

615 April 2009

Oracle General ledger Overview

Open Ledger Period

Review/Post/Report

Enter /Import/

GenerateJournals

Revalue/Translate/

ConsolidateAccount Inquiry/FSG/

Standard Report

Close Accounting GL Period

Oracle General LedgerSetups :-Accounting Manager Setup-Legal Entity-COA- Ledger-Ledger Sets-Data Access Sets

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Oracle General Ledger – Accounting Manager Setup

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Accounting Setups

Accounting Setup Manager Screen is used to create Ledger and complete Ledger related setups . It also allows creation of Legal Entity and Operating Units.

Ledger is replacement of prior versions Set of Book. Additional component in Ledger is Accounting Convention

One needs to activate currencies and create Chart of Account first before going to this screen.

You can also create Legal entity & operating unit from Accounting Setup manager and also assign your ledger to Legal entity.

You can also associate a secondary ledger to your primary ledger .You can also link Reporting currencies to your primary ledger which will replace your earlier

version of MRC- Multiple Reporting Currencies.

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Setup- Financials- Accounting Manager

Use this Tab to create legal entity

Use this window to search existing

Ledgers or create a new Ledger

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Create Chart of Account - COA

Chart of Account (COA) is a combination of segments. Each segment represents one business/legal entity or focus area which can be measured and accounted like company , cost centre , location, product and so on. How many segments should be there in COA ,depends on Client as to till what level client wants to capturehis accounting information which is both meaningful and manageable.

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Create Segments of COAIn implementation scenario , this information is provided by client as to how they want to capture their accounting information and to what level they want to capture.

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Flexfield QualifiersNatural Account and Balancing segment are mandatory qualifiers. Balancing segment is attached to a segment on which trial balance needs to be Balanced or in other words Journal entry Debit and credit needs to be balanced onbalancing segment. Natural Account segment once attached identifies/classifies each value stored in that segment as Asset, Liability, Expense , Revenue or Owner’s Equity.

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Accounting Setup Manager – Create Ledger – Skip Legal Entity creation if you want

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Specify Ledger Components

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Add Reporting Currencies

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Save Accounting Setup

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Complete Ledger – Basic Accounting Setup

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Review Ledger Setup and complete remaining setup

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Specify Standard Information, Accounting Calendar and Sub-ledger accounting options

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Specify Retained Earnings account

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Complete remaining Options

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Complete Advanced Options

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Assign Balancing segment value to Ledger

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Currency Translation Options

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Complete Ledger Setup

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General Ledger Accounting Setup Program is auto submitted on completion

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Review the General Ledger Accounting Setup Program

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Review the Ledger Definition

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Create Legal Entity

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Ledgers Created

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Associate Legal Entity to Ledger

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Create Operating Unit and Assign it to Legal Entity

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Run Replicate Seed Data Program from System Administrator Responsibility

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Create General Ledger Responsibility

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Setting up Profile Option: GL Ledger Name

Profile Option: GL Data Access Set Automatically set

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Data Access SetBy default one Data access set is create by system with the name of your Ledger. Data Access set shows the access levelon a particular ledger. Default one is Full ledger. Custom data access set can be created and assigned to users to limit their access.

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Open /Close PeriodOpen Period of Ledger to allow user enter financial transactions. First period should be carefully opened after confirmation from client.

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First Period Opened

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Add more ledgers to a Data Access Set if multiple ledger’s access is required.

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Setup Profile Option:GL: Data Access Set

Result – Journal Entry Screen you can select any of the Ledger assigned to Data access set

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Ledger Sets

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Concurrent Request fired for compilation on saving Ledger Set definition

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Practice Exercise

1. Create Chart of Account, Currency & Calendar – Use XXX-your employee number with your setups.2. Create Ledger and complete all related setup via Accounting setup manager.3. Create and assign legal entity and operating unit.4. Create ledger Sets.5. Create Data Access Set.6. Setup Profile options.7. Create General Ledger Responsibility for your Ledger. – Use XXX-your employee number with your

setups.8. Open First Period of your ledger

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Oracle General Ledger – Key Setups

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Segment values

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Cross Validation Rules

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Security Rules

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GL Accounts Combinations

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Shorthand Alias

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Rollup Groups

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Summary Accounts

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Sequences

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Setup – Journal - Sources

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Journal Categories

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Auto Post

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Auto Reverse

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Setup- Currencies

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Setup- Tax Options

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Journal Approval Limits

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Setup-Others-Schedules & Maintenance

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Practice Exercise

1. Review the Setup forms covered in this Key set up session.2. Create Values in all your Value sets.3. Create Your own Journal Category, Journal Source.4. Create Security Rules .5. Create Cross Validation Rules

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Oracle General Ledger – Journal Entry

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Journal Entry- Batches

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Journals- Manual Journal Entry

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Posting Journal

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Reversing Journals1.Press Reverse Button on the Posted Journal

which needs to be reversed

2. Choose Period in which reversal should have accounting impact

3. Concurrent Program for Reversal will be submitted

4. Reversed Journal Created

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Tax Journals

1. Enable Journal Entry tax at Ledger Lever in Accounting Setup

2. Complete Tax Regime, Tax Code & Tax Rate Set up in E-Business Tax Responsibility

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Set up Tax Optionsin General Ledger

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Tax Journal Created

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Auto Copy Batch

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Journal Wizard

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GL: Default Desktop Viewer Profile Option for Excel Versions

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Notification for Prior Period Journal Entry

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Journals – Mass Allocation

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Recurring Journals

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Multiple Recurring Journals Created

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Generate Journal – Reversal, Allocation, Recurring & Carryforward

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Schedule Allocation & Recurring Journal

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Auto Allocation – Workbench/View Status

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Journal ImportYou can import Journals for multiple ledgers

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Encumbrance Journal

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Practice Exercise

1. Create Simple Functional Journal.2. Use Auto Copy Feature to copy a journal.3. Create tax Journal4. Create Foreign Currency Journal.5. Post Journals6. Reverse Journals7. Create Recurring Journals and Generate Recurring journals.8. Create and generate Mass allocation Journal.9. Review Journal Import Screen.

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Oracle General Ledger – Journal Approval

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Journal Approval

Prerequisites:Enable Journal Approval at Ledger levelEnable Journal Approval at Journal Source LevelCreate Employee HierarchyEnter Authorization LimitsSet profile Options: Journals: Allow Preparer Approval & Journals: Find Approver Method.

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Ledger Setup – Enable Journal Approval

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Journal Source level

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Employee Hierarchy

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Profile Options

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Authorization Limits

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Enter Journal Exceeding Preparer limits

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Approver Approves Journal

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Practice Exercise

1. Complete Setup related to Approval Enabling in Ledger.2. Setup Approval related profile options.3. Create two employees and setup Supervisor hierarchy.4. Create Authorization limits for these employees.5. Create Journal exceeding Limit and review notification in supervisor user ID.

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Oracle General Ledger – Budgets

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Budgets

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Define Budget

Open: The budget is available for update and budget entry.Current: The budget is open, and it is the default budget when you use most budgeting and inquiry forms. You can have only one Current budget at a time for each ledger.Frozen: The budget is unavailable for update or budget entry.

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Open Next Budget Year

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Enter Display Sequence

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Budget Organization – Account Ranges Assignment

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Budgetary Control Options

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Enter Account Assignments

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Enter Budgetary Control Options

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Enter Budget Journal

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Create Budget Journal

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View Results

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Budget Journal Created

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Enter Actual Journal against Budgeted Account

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View Results

11015 April 2009

Changed Amount to INR 45000

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View Results

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Practice Exercise

1. Create Budget & Budget Organization2. Simulate Advisory and None Scenario.3. Simulate QTD,YTD and PJTD scenario.

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Oracle General Ledger – Inquiry

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Inquiry –Account, Average, Budget, Journal & Funds

You can review your account balances , journals and funds in Inquiry section

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Account Analysis and Drilldown

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Drill Down to Account balances Level

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Drill Down to Journal batches Level

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Drill Down to Journal Level

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Average balance Inquiry Screen

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Budget Inquiry Screen

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Journal Inquiry Screen

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Funds Available Inquiry Screen

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Account Analysis and Drilldown

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Export Details

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Create View

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Practice Exercise

1. Perform Inquiry for your Journals & Accounts.2. Use Drill down feature to check balances details.3. Use Account Analysis drill down. 4. Export the details.5. Modify/Create the View

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Oracle General Ledger – Foreign Currency Transactions

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Process Involved due to Foreign Currency

In Ledger if Reporting Currencies setup is used then revaluation journal is created automatically.

•Functional Currency is specified at Ledger Level.•Transactions in Sub-Ledger or Journals in GL may be entered in the Foreign currency due to the nature of transaction.•Company may be required to report its balances in currency other than Ledger Functional Currency.•In Such scenario Conversion , Revaluation and Translations are processes which are involved.

Below are some scenarios where Subsidiary company’s transaction and Functional currency may be same or different than the Parent company and types of processes which will be involved in such scenarios.

Remeasurement includes Conversion and Revaluation. Conversion happens at the time of transaction and Revaluation happens when program –Revaluation is run for a range of accounts and for a period.

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Pre-Requisites for Foreign Currencies( Conversion/Revaluation & translation)

Define & Enable Currencies.Define Currency Conversion rates.Assign a currency to a ledgerDefine a Cumulative Translation Adjustment account ( Type Owners Equity for Balance Sheet items and one for Revenue and expense type for P/L )for your ledger.Define Revaluation unrealized gain/loss accountEnter Daily Rates.Assign rate types for your ledgerEnter Historical rate(Optional) Enable Segment tracking segment to track translation and revaluation accounts tracked on a secondary segment.

13015 April 2009

Ledger Setup – Reporting Currency

Functional Currency

Reporting Currency

Currency translation Options

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Creation & Assignment of Translation Adjustment account

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Enter Foreign Currency JournalUSD Journal

Conversion

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Submitting Translation

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Check Trial Balance and compare functional and Foreign currency trial

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Trial balance Output - INR

Trial balance Output - USD

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Currency – Revaluation

Enter Foreign Currency Journal –effective date 01-mar-09. Do the revaluation on 31-Mar-09

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Run Revaluation Program

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Run Revaluation Program

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Revaluation Output- NO Batch generated as there was no difference in the currency rate as on transaction date and as on Revaluation date.

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Change Currency Rate to 60 instead of 50

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Resubmit Revaluation Program

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Revaluation batch created as per Output file

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Revaluation Journal

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Practice Exercise

1. Enter Currency Daily Rates.2. Assign reporting currencies in ledger setup.3. Create Translation adjustment account.4. Enter Foreign Currency Journal .5. Change Foreign Currency rates 6. Run Revaluation program7. Run Translation program.8. Review report output.9. Review revaluation journal

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Oracle General Ledger – Consolidation

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ConsolidationConsolidation is the period-end process of combining the financial results of separate subsidiaries with the parent company to form a single, combined statement of financial results. The Global Consolidation System (GCS) provides the flexibility to help you manage your consolidation needs regardless of your company structure.

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Consolidation Methods

There are two methods you can use to achieve consolidated results with Oracle Applications:

1. Reporting Consolidations: (Discussed in FSG section in next slides)Define an FSG report which consolidates data stored in a single ledger or which sums data across separate ledgers on the same applications instance.

2. Data Transfer Consolidations:

Serves global enterprises with multiple ledgers or multiple applications instances. With data transfer consolidations, you move your financial data from diverse ledgers and data sources into a single consolidation ledger. You can report on and analyze consolidated financial information from this consolidated ledger.

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Consolidation Steps

Prepare Consolidation Data- Revalue and Translate Subsidiary balances.Create Consolidation & COA mappings.Transfer Data.Eliminate Balances.Report.

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COA Mapping

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Segment Mapping Rules

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Consolidation Definition

In R12 you can consolidate your Reporting currency ledger with parent Ledger

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Transfer- Data and Data Set

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Elimination – Define & GenerateThe Oracle General Ledger Automatic Intercompany Eliminations program eliminates intercompany balances. Create an elimination set which is a batch of one or more elimination journal entries.

Full Eliminations: Elimination sets can optionally use an elimination company to fully eliminate a group of intercompany elimination entries for a set of subsidiaries.

If your elimination journals are out of balance, you can specify balancing options to either allow out of balance journals to be created or to post the net difference to an alternative account. In addition, threshold rules can be applied to prevent the creation of the balancing lines if the net difference exceeds a specific amount, a percentage of a particular account, or a percentage of the total journal.

You generate the elimination set every period to automatically create the elimination journal entries. You have the option of automatically posting the journal now or you can wait till you review it to post.

You can also use the Consolidation Workbench to track the elimination status of your elimination sets and post any generated elimination sets.

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Practice Exercise

Run revaluation and translation for your Subsidiary book.Create Consolidation mappings.Run consolidation.Transfer Data.Eliminate entries.Review Consolidated batch.Post Consolidated batch in parent book.

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Oracle General Ledger – FSG (Financial Statement Generator)

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FSGFinancial Statement Generator (FSG) is a powerful report building tool for Oracle General Ledger.Purpose of FSG:

Generate financial reports, such as income statements and balance sheetsGenerate presentation quality financial reports with XML PublisherDesign custom financial reports to meet specific business needsPrint & schedule Reports.Print reports to tab-delimited files for easy import into client-based spreadsheet programs.Create XBRL instance documents for easier exchange and analysis of your reporting information.

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Required Component

Row SetColumn SetReport

Optional ComponentContent SetRow OrderDisplay Set/GroupReport Set

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Before Creating/Running FSG ensure that you have accounting data for the month report is run for.

To ensure this we have passed below journal for Mar-09 and will prepare FSG to capture this data in FSG report.

Line Account Entered: Debit Entered: Credit

1 101.101.101.10010.000.000 250000

2 101.201.101.10010.000.000 200000

3 101.301.101.10010.000.000 150000

4 101.401.101.10010.000.000 100000

5 101.501.101.10010.000.000 50000

6 101.000.101.40010.000.000 750000

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FSG-Row Set

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Column Set

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Report

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What if – Use E-E-E-E-E-E-E in the row set assignment

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What if – Use T-T-T-T-T-T in the row set assignment

What if – Use T-T-E-T-T-T in the row set assignment ( Expand in Cost Centre segment and Total in all others)

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FSG – Comparative StatementAdd one more Column in the Column Set with Offset -1 if you want previous month’s data in that column.

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Row Order – Ranking by Column and Display 3 columns

Row Order – Change Display of 3 columns and change of Sequence.

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Content Set

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FSG-Content SetOutput when T-T-T-T-T-T in the row set assignment. Content Set is used to Override Row Set definition.

Content Set Options

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Output with Content Set to Override Row set Definition.

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FSG –Display Set & Group

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FSG – Report Set

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FSG-Auto Copy

Options in Auto Copy

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Practice Exercise

1. Create a Row Set2. Assign account in the row set3. Create a column set and assign period types in the column set.4. Create default headings in column set builder5. Create and run report6. Create Optional components and see how report differs with each component.

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Oracle General Ledger – FSG & XML Publisher

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FSG & XML PublisherRun FSG From Financial Reports window with Output option

as XMLStep 1 – Go to Reports- Run-Financials and select FSG report which is required in XML format

Step2 – After Concurrent Program is complete. From SRS window Select XML Report Publisher and in parameter select your Request which completed In Step1. Select Right values in Output format chose either Excel/HTML/PDF or RTF

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Sample PDF Output generated

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FSG & XML PublisherFrom SRS Window Publish your FSG report with XML Publisher

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Output from Program - Publish FSG Report

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FSG & XML Publisher

Republish the FSG report against a different report template

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Practice Exercise

1. Run your FSG reports in different ways mentioned in this FSG & XML session.2. Review and check the output.

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Oracle General Ledger – Profile Options

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Oracle General Ledger – Profile Options

GL : Default Desktop Viewer GL: Data Access Set

GL Account Analysis Report: Enable Segment Value Security on Beginning/Ending Balances

GL: Income Statement Accounts Revaluation Rule

GL AutoAllocation: Continue to Next Step if No Journal Created GL: Journal Review Required

GL Consolidation: Cross Instance Workflow Notification ContactGL: Launch AutoReverse After Open

Period

GL Consolidation: Exclude Journal Category During Transfer GL: Owner's Equity Translation Rule

GL Consolidation: Preserve Journal BatchingGL: Reverse Transaction Codes on

Un-natural Balances

GL Consolidation: Preserve Journal Effective DateGL:Create Encumbrance Entries for

Budgetary Accounts

GL Consolidation: Separate rows for debit and credit account balances in consolidation journal GL:Create Interfund Entries

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Oracle General Ledger – Profile Options

GL Daily Rates: Cross Rates Override GL:Enforce Account Category Balancing

GL Journal Import: Separate Journals by Accounting Date Journals: Allow Multiple Exchange Rates

GL Ledger IDJournals: Allow Non-Business Day Transactions

GL Ledger NameJournals: Allow Posting During Journal Entry

GL Revaluation: Days to Roll Forward Daily Rates Journals: Allow Preparer Approval

GL Revaluation: Tracking by Cost Center Journals: Default Category

GL Revaluation: Validate Gain/Loss Accounts Journals: Display Inverse Rate

GL Summarization: Accounts Processed at a Time Per Delete Worker Journals: Enable Prior Period Notification

GL Summarization: Maintenance Index Selection Factor Journals: Find Approver Method

GL Summarization: Number of Delete Workers Journals: Mix Statistical and Monetary

GL Summarization: Rows Deleted Per Commit Journals: Override Reversal Method

GL Translation: Revenue/Expense Translation Rule GL: Auto Allocation Rollback Allowed

GL: Archive Journal Import Data

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Practice Exercise

1. Review Relevant Profile Options by logging as System Administrator

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