1.

What are the new features in GL from a R12 perspective

Accounting Setup Manager The ledger is a basic concept in Release 12. The ledger replaces the 11i concept of a set of books. It represents an accounting representation for one or more legal entities or for a business need such as consolidation or management reporting. Companies can now clearly and efficiently model its legal entities and their accounting representations in Release 12. This seems to be a major area in getting success of the shared service center and single instance initiatives where many or all legal entities of an enterprise are accounted for in a single instance, and data, setup, and processing must be effectively secured but also possibly shared. Now, legal Entities can be mapped to entire Ledgers or if you account for more than one legal entity within a ledger, you can map a legal entity to balancing segments within a ledger. While a set of books is defined by 3 Cs, 1. 2. 3. chart of accounts functional currency accounting calendar, The addition in this list the ledger is defined by a 4th C: the accounting method, This 4th C allows you to assign and manage a specific accounting method for each ledger. Therefore, when a legal entity is subject to multiple reporting requirements, separate ledgers can be used to record the accounting information. Accounting Setup Manager is a new feature that allows you to set up your common financial setup components from a central location. What is Accounting Setup Manager Accounting Setup Manager is a new feature that streamlines the setup and implementation of Oracle Financial Applications. The Accounting Setup Manager will facilitate the setup required for simultaneous accounting for multiple reporting requirements.

With the Accounting Setup Manager, you can perform and maintain the following common setup components from a central location: Legal Entities Ledgers, primary and secondary Operating Units, which are assigned to primary ledgers Reporting Currencies, which is an enhanced feature Subledger Accounting Options. This is where you define the accounting methods for each legal entity subledger transaction and associate them to the ledger where the accounting will be stored. Intercompany Accounts and Balancing Rules Accounting and Reporting Sequencing Both Intercompany and Sequencing Will discuss some more granular details in some other post. Enhanced Foreign Currency Processing by Reporting Made easy GL has added new features and enhanced existing features to support foreign currency processing , they are mainly as: In R12, MRC feature is enhanced with a feature call Reporting Currencies. That mean it will now support multiple currency representations of data from any source, including external systems, Oracle or non-Oracle subledgers, and Oracle General Ledger journals and balances. The second one is in reporting to view balances view balances that were entered in your ledger currency separate from those balances that were entered and converted to the ledger currency.The change in R12 is that balances entered in the ledger currency are maintained separately from balances converted to the ledger currency for use in Reporting and Analysis. Heres an example. Assume we have a ledger and the ledger currency is USD.I enter and post two journals; one in 1,000 US Dollars, and another in 500 British Pounds that gets converted to 1200 US Dollars. In Release 11i, I can review the 500 GBP and the 1200 USD that results from converting the 500 GBP, and the total 2200 USD which is the USD balance in the Cash Account. The $2200 is the sum of the $1000 entered in USD and the $1200 converted from the 500 British Pounds. However, I view that a 1000 USD were entered directly in USD. In Release 12, I can view the 1000 USD by performing an account inquiry on the Cash account for balances entered only in the ledger currency. The amounts entered in foreign currencies that

were converted to the ledger currency will not be included in the balance. Of course, if I want to retrieve all balances in USD, both the entered as well and the converted, I can still do that in Release 12.

Creating foreign currency recurring journals In Release 11i, you could define recurring journals using the functional currency or STAT currency. Now in Release 12, you can create recurring journals using foreign currencies. This is particularly useful if you need to create foreign currency journals that are recurring in nature. For example, assume a subsidiary that uses a different currency from its parent borrows money from the parent. The subsidiary can now generate a recurring entry to record monthly interest payable to the parent company in the parents currency.

Data Access to Multiple Legal Entities and Ledgers You no longer have to constantly switch responsibilities in order to access the data in a different ledger. You can access multiple ledgers from a single responsibility as long as all ledgers share the same chart of accounts and calendar.

Simultaneous Opening and Closing of Periods for Multiple Ledgers You no longer have to open and close periods for each ledger separately. You can now open and close periods across multiple ledgers simultaneously by submitting Open and Close Periods programs from the Submit Request form.

Simultaneous Currency Translation of Multiple Ledgers You can run the Translation program for multiple ledgers simultaneously, if you are managing multiple ledgers.

Financial Reporting for Multiple Ledgers Now with this feature you can run Financial Statement Generator (FSG) reports for multiple ledgers simultaneously. This is useful if you manage multiple ledgers and want to run a balance sheet or income statement report for all of your ledgers at the same time.

Cross-Ledger and Foreign Currency Allocations You are able to allocate financial data from one or more ledgers to a different target ledger. This enables you to perform cross-ledger allocations, which is useful for purposes such as allocating corporate or regional expenses to local subsidiaries when each entity has its own ledger

Streamlined Automatic Posting You can now share AutoPost Criteria sets across multiple ledgers that share the same chart of accounts and calendar and use the AutoPost Criteria sets to post journals across multiple ledgers simultaneously.

Streamlined AutoReversal Criteria Setup Integrated Web-based AutoReversal Criteria Sets can also be shared across ledgers to reverse journals across multiple ledgers. This is enhanced by integrated Web-based Spreadsheet Interface.

Journal Copy Now we can now copy entire journal batches. You can copy journal batches with any status. The system will create a new journal batch containing the same journal entries.You may also change the batch name, period, and/or effective date while copying the journal batch. After copying the journal batch, you may modify the unposted journals in the same manner as any manually created journals.

Streamlined Consolidation Mappings

You are able to define Chart of Accounts Mappings (formerly known as Consolidation Mappings) between two charts of accounts. Therefore, if you have multiple Consolidation Definitions for parent and subsidiary ledgers that share the same chart of accounts pair, and their mapping rules are the same, you only have to define a single Chart of Accounts Mapping. The enhancement in R12 allows you to define mappings between charts of accounts instead of between sets of books, so that they can be shared across multiple Consolidation Definitions.

Data Access Security for Legal Entities and Ledgers In R12, since you can access multiple legal entities and ledgers when you log into Oracle General Ledger using a single responsibility, Oracle General Ledger provides you with flexible ways to secure your data by legal entity, ledger, or even balancing segment values or management segment values. You are able to control whether a user can only view data, or whether they can also enter and modify data for a legal entity, ledger, balancing segment value or management segment value.

Journal Line Reconciliation Journal Line Reconciliation enables you to reconcile journal lines that should net to zero, such as suspense accounts, or payroll and tax payable accounts for countries, such as Norway, Germany, or France. In R12, weve made many improvements to intercompany accounting. R11is Global Intercompany System (GIS) has been replaced with an exciting new product called Advanced Global Intercompany System (AGIS). We also extended intercompany balancing support to include encumbrance journals.

2.

What does a Ledger comprise of

A ledger comprises of the 4 C's : Calendar, Currency, Accounting Convention and Accounting Flex field. Explain each in detail. 3. What are the differences between segment qualifiers and Flexfield qualifiers

Flex field qualifier: flex field qualifier will identify the nature of the segment. Segment qualifier: segment qualifier will identify the type of the account. Flexfield Qualifiers: Flexifield Qualfiers are used to assign a property to the segment colums which are used to determine the behaviour of CHART OF ACCOUNTS(COA). Segment Qualifiers: Segment Qualifiers are based on flexfield qualifiers. It is used to assign a property to the value of a segment. A flexfield qualifier identifies a particular segment of a key flexfield. Usually an application needs some method of identifying a particular segment for some application purpose such as security or computations. However, since a key flexfield can be customized so that segments appear in any order with any prompts, the application needs a mechanism other than the segment name or segment order to use for segment identification. Flexfield qualifiers serve this purpose. You can think of a flexfield qualifier as an "identification tag" for a segment. A segment qualifier identifies a particular type of value in a single segment of a key flexfield. In the Oracle Applications, only the Accounting Flexfield uses segment qualifiers. You can think of a segment qualifier as an "identification tag" for a value. In the Accounting Flexfield, segment qualifiers can identify the account type for a natural account segment value, and determine whether detail posting or budgeting are allowed for a particular value. It is easy to confuse the two types of qualifiers. You should think of a flexfield qualifier as something the whole flexfield uses to tag its pieces, and you can think of a segment qualifier as something the segment uses to tag its values. 4. What are the two new segment qualifiers in the Accounting Flex Field in Release 12 In Release R12 , There are 6 Flexfield Qualifiers. They are:1. Cost Center Segment Cost center helps u in cost analysis of dept 2. Natural Account Segment

Natural Account qualifier help u to understand what type of account it is and where it should reflect like the P&L account or the Balance sheet 3. Balancing Segment Balancing segment qualifier is for balancing of debit and credit amount of any transaction. 4. Intercompany Segment Define the intercompany segment. General Ledger automatically uses the intercompany segment in account code combinations to track intercompany transactions within a single ledger and among multiple ledgers. The intercompany segment has the same value set as the balancing segment. 5. Management Segment (NEW) Define a management segment if you want to perform management reporting and secure read and write access to segment values for the management segment. This segment can be any segment, except the balancing segment, natural account segment, or intercompany segment. 6. Secondary Tracking Segment (NEW) Identify a secondary tracking segment in your chart of accounts and assign the Secondary Tracking Segment qualifier to it. General Ledger tracks retained earnings, cumulative translation adjustments, and revaluation gains/losses by both the balancing segment and the secondary tracking segment to provide you with more accounting detail. The secondary tracking segment cannot be the same segment as the balancing segment, intercompany segment, or natural account segment. 5. What is the difference between a cross validation rule and security rule a. Cross Validation rules Rules that restrict the user from entering invalid key-flexfield segment value combinations while data entry. E.g. you may set up a cross validation rule that disallows using department segments with balance sheet accounts. cross validation rule worked as the structure level Cross-validation (also known as cross-segment validation) controls the combinations of values you can create when you enter values for key flexfields. A cross-validation rule defines whether a value of a particular segment can be combined with specific values of other segments. Crossvalidation is different from segment validation, which controls the values you can enter for a particular segment. You use cross-validation rules to prevent the creation of combinations that should never exist (combinations with values that should not coexist in the same combination). For example, if your organization manufactures both computer equipment and vehicles such as trucks, you might want to prevent the creation of "hybrid" part numbers for objects such as "truck keyboards" or "CPU headlights". b. Security Rules A rule that allows restriction on segment values or ranges of segment values for a specific user responsibility security rule worked as the responsibility level

6.

What is the difference between a primary ledger, secondary ledger and reporting ledger

Primary Ledger Vs Secondary Ledger Use secondary ledgers for supplementary purposes, such as consolidation, statutory reporting, or adjustments for one or more legal entities within the same accounting setup. For example, use a primary ledger for corporate accounting purposes that use the corporate chart of accounts and subledger accounting method, and use a secondary ledger for statutory reporting purposes that use the statutory chart of accounts and subledger accounting method. This allows you to maintain both a corporate and statutory representation of the same legal entity's transactions in parallel. Reporting Currency Vs Secondary Ledger Reporting Currencies are not the same as secondary ledgers. Looking at the 4 C's that define a ledger, we have a chart of accounts, calendar, accounting method, and currency. If you only need multiple currencies to support your reporting requirements, use reporting currencies. If you need to account for your data using different calendars, charts of accounts, accounting methods in addition to currency, use a secondary ledger. Primary Ledger The primary ledger acts as the main record-keeping ledger. If used for the purpose of maintaining transactions for one or more legal entities, it uses the legal entities main chart of accounts, accounting calendar, currency, subledger accounting method, and ledger processing options to record and report on all of their financial transactions. If used for another business purpose where no legal entities are involved, then the primary ledger is defined with the chart of accounts, accounting calendar, and currency that is suited for the business need. One primary ledger is required for each accounting setup. Secondary Ledger The secondary ledger is an optional, additional ledger that is associated with the primary ledger for an accounting setup. Secondary ledgers can be used to represent your primary ledgers accounting data in another accounting representation that differs in one or more of the following from the primary ledger: Chart of accounts Accounting calendar/period type combination Currency Subledger accounting method Ledger processing options Secondary ledgers can be maintained at the following data conversion levels:

Subledger: The Subledger level secondary ledger maintains subledger journals, general ledger

journal entries, and balances in the additional accounting representation. This data conversion level uses both Oracle Subledger Accounting and General Ledger Posting to create the necessary journals in both your primary and secondary ledgers simultaneously.

Journal: The journal level secondary ledger maintains your primary ledger journal entries and balances in an additional accounting representation. This type of secondary ledger is maintained using the General Ledger Posting Program. Every time you post a journal in your primary ledger, the same journal can be automatically replicated and maintained in the secondary ledger for those journal sources and categories that are set up for this behavior. Balance: The balance level secondary ledger maintains your primary ledger account balances in another accounting representation. This type of secondary ledger requires you to use Oracle General Ledger Consolidation to transfer your primary ledger balances to this secondary ledger. Adjustments Only: The Adjustments Only Secondary Ledger is an incomplete accounting representation that only holds adjustments. The adjustments can be manual adjustments or automated adjustments from Oracle Subledger Accounting. This type of ledger must share the same chart of accounts, accounting calendar/period type combination, and currency as the associated primary ledger. To obtain a complete secondary accounting representation that includes both the transactional data and the adjustments, you must then combine the adjustmentsonly secondary ledger with the primary ledger when running reports.

Note: If you only need to represent your primary ledger transactions in another currency, you do not need to use secondary ledgers; you can use reporting currencies. Reporting Currencies If you want to maintain your ledger transactions in multiple currencies, you can use reporting currencies. Reporting currencies are additional currency representations of primary or secondary ledgers. Unlike secondary ledgers, reporting currencies can only differ by currency from their source ledger and must share the same chart of accounts, accounting calendar/period type combination, subledger accounting method, if used, and ledger processing options. Reporting currencies can be used for supplementary reporting purposes, such as consolidation or management reporting. They can also be used if you operate in countries with highly inflationary economies. Reporting currencies can be maintained at the following currency conversion levels:

Balance Level: The Balance level reporting currency is maintained only for GL account balances by using translation to convert the balances from the ledger currency to the reporting currency. Balance level reporting currencies can be assigned to primary and secondary ledgers using Accounting Setup Manager, or they can be system-generated the first time you run translation using a different currency. Journal Level: The Journal level reporting currency is maintained for GL journal entries and balances when you post journals in your primary or secondary ledger. This type of reporting currency is maintained using the General Ledger Posting program. Each time you post a journal entry in the associated primary or secondary ledger, another journal is created and posted to the Journal level reporting currency within the same journal batch.

Subledger Level: The Subledger level reporting currency is maintained for primary ledgers only. They maintain a currency representation of the primary ledgers subledger journals, journal entries, and balances. This type of reporting currency is maintained by Oracle Subledger Accounting (SLA) and the GL Posting program.

7. What is the Organization hierarchy You can create all types of organization hierarchies in two ways: using the Organization Hierarchy window using the Organization Hierarchy Diagrammer The Hierarchy Diagrammer, included with Oracle HRMS, enables you to create your organization hierarchies graphically and make intuitive drag-and-drop changes to them. To set up a new organization hierarchy: 1. Enter a unique name, and check Primary if it is your main reporting hierarchy. 2. Enter the version number and start date for the hierarchy. You can copy an existing hierarchy. See: To copy an existing hierarchy, below. 3. Query the top organization name into the Organization block. 4. In the Subordinates block, select the immediate subordinates for the top organization. 5. To add organizations below one of these immediate subordinates, check the Down check box for the organization. The Organization block now displays the organization you selected. You can add subordinates to this organization. To return to the previous level, check the Up check box. Attention: The list of organizations from which you can select in the Subordinates block includes organizations that are already in the hierarchy. If you select such an organization, you will move -it and all its subordinates within the hierarchy. 8. What is Revaluation Revalution is done to know the actual balance on specific date with respect to prevailing foriegn exchange rate of a particular account In Revaluation period end rates are used Revaluation is mandatory Difference in Revaluation will go to unrealizes gain/loss account No conditions is required for Revaluation Revaluation adjusts assets or liability accounts that may be understated or overstated at the end of a period due to fluctuation in the exchange rate between the time the transaction was entered and the end of the period. It is process used to revalue assets and liabilities denominated in foreign currency into functional currency based on period end exchange rate we specify. Unrealized gains/losses are resulted

because of exchange rate fluctuations which are recorded in unrealized gain/loss account in GL.

9.

What is Translation

Translation is done from functional currency to reporting currency. In Translation period end rates and average rates are used Translation is optional Difference in Translation will go to translation adjustment account Translation should satisfy the conditions namely prior period and following period should be open and translation cannot be done for first period Translation refers to the act of restating an entire ledger of balances for a company from the ledger currency to a foreign currency. Translation is a process used to convert functional currency to other reporting currencies at the account balances level.

10. What is Consolidation and how do you define the process Consolidation is a functionality in the General Ledger Module that allows you to combine financial results of multiple companies from multiple sets of books, currencies, calendars and accounting flexfield structures consolidation is combining the results of subsidary company and parent company.this can be done in 2 ways i.e fsg & gcs. for fsg sets of books , currencies,calendars and charts of account of parent and subsidary should be same. for gcs they may be different sets of books with different currencies,calendars and charts of account 11. What are recurring journals and what are the different types of recurring journals Reccuring journal means journals, which are repetitive nature is a year.

You can use recurring journals to create three types of journal entries: Skeleton Journal Entries: Skeleton entries affect the same accounts each period, but have different posting amounts. After you generate skeleton journal entries, you can edit the unposted journal batch using the Enter Journals form and enter the journal line amounts. Skeleton journal entries are useful with statistical information whenever you want to record journals for actual transactions based on statistical amounts, such as headcount, units sold, inflation rates, or other growth factors. For example, if c you want to enter headcount for each cost center every period, you can define a skeleton entry with your headcount accounts. After you generate the skeleton entries, enter the actual headcount amounts before posting the batch. Standard Recurring Journal Entries: Standard recurring journal entries use the same accounts and amounts each period. Recurring Journal Formula Entries: Formula entries use formulas to calculate journal amounts that vary from period to period. 12. Journal Import process Journal import is an interface used to bring journal entries from legacy systems and other modules into the General Ledger.(Specifically Journal Import gets entries from legacy data into the GL base tables. The tables populated during journal Import are GL_JE_BATCHES, GL_JE_HEADERS, GL_JE_LINES, GL_IMPORT_REFERENCES

Journal Import creates journal entries from accounting data you import from Oracle and nonOracle feeder systems. You can review, change and post imported journal entries the same as any other journal entry. Journal Import supports multiple charts of accounts, as well as foreign currency, intercompany, statistical, budget, and encumbrance journals.

1. Navigate to the Import Journals window. 2. Enter the Source from which you want Journal Import to create journal entries. 3. You can import data for the same or different sources in parallel by specifying a unique Group ID for each request. General Ledger imports data with the journal entry source and group ID combination you specify. If you do not specify a group ID, General Ledger imports data from the specified journal entry source with no corresponding group ID. 4. Define the Journal Import Run Options. 5. Choose whether to Import Descriptive Flexfields, and whether to import them with validation. If you choose not to create summary journals, you can Import Descriptive Flexfields along with your journal information. You can import descriptive flexfields With Validation and generate journals only when validation succeeds. Or, you can import descriptive flexfields Without Validation and generate all journals. 6. Enter a Date Range to have General Ledger import only journals with accounting dates in that range. If you do not specify a date range, General Ledger imports all journals data. 7. Choose Import to submit a concurrent process to import journals. General Ledger names the resulting batch as follows: <REFERENCE1> <Source> <Request ID>: <Actual Flag> <Group ID>; for example, 587-C Payables 18944: A 347. 8. Review the Journal Import Execution Report to determine the number of errors in the import data, and how to correct any Journal Import errors. If you have only a few Journal Import errors, correct the errors from the Correct Journal Import Data widow, then rerun Journal Import on the corrected data. If the number of Journal Import errors is high, delete all of the import data for your journal entry source and group ID. Correct the errors then repopulate the GL_INTERFACE table before rerunning Journal Import. 13. What are summary templates, parent accounts and roll up groups Summary Template : General Ledger uses summary templates to create summary accounts, whose balances are the sums of multiple detail accounts. Use summary accounts to perform online summary inquiries, as well as to speed the processing of financial reports, MassAllocations, and recurring journal formulas. You specify when you want General Ledger to begin maintaining your summary account balances. You can also assign budgetary control options to a summary template for which you want to perform summary level budgetary control. When you delete a summary template, General Ledger deletes all summary accounts created from that template and their associated balances.

To define a new summary account template: 1. 2. Navigate to the Summary Accounts window. Enter a Name for the summary account template. Choose the Ledger for your summary account template.Note: Your data access set must provide read and write access to the ledger and all of its balancing segment values or management

3.

segment values to create a summary account for the ledger.If you use reporting currencies (journal or subledger level), you can choose a reporting currency. 4. Enter the Template. Enter the Earliest Period for which you want General Ledger to maintain your actual, encumbrance and budget summary account balances. General Ledger maintains summary account balances for this accounting period and for subsequent periods. Enter a Description. If you are using budgetary control for your ledger, set the budgetary control options for the summary template. Save your work. General Ledger submits a concurrent request to add the summary accounts, and displays the Status of your summary template.Current: The summary accounts are active. Adding: The concurrent request to create summary accounts is pending or running.Deleting: The concurrent request to delete summary accounts is pending or running. From the Summary Accounts window, enter the summary account Template using one of the following values for each segment:

5.

6. 7.

8.

D: Your template creates and maintains a summary account for every detail segment value. This value creates the most summary accounts of any template value. T: Your template creates and maintains a summary account that sums balances of all detail segment values. This value creates the fewest summary accounts of any template value. If you enter T for a segment, all summary accounts created by the template will have the value T for the segment. Therefore, the value T must be defined and enabled for the segment. Also, the segment value must be a parent and detail posting and budgeting are not allowed.

Rollup Group A rollup group is a collection of parent values. A value cannot belong to a rollup group unless it is a parent value that has child values. Parent values and child values belong to the same value set, which is then attached to a key flexfield segment. A rollup group allows you to group related parent values for creating summary templates. Given a summary template, General Ledger creates summary and detail reports using all parent values assigned to that rollup group. You define rollup groups using the Rollup Groups window before you define your key segment values. Then, you assign your parent values to the rollup groups when you define the parent values. Rollup groups are separate from parent-child relationships. You can assign any parent value to a given rollup group, regardless of that parent value's place in a value hierarchy you might create.

To define rollup groups:

1. Enter a name and description for your rollup group. 2. Save your changes. 3. Apply your rollup group name to particular values using the Segment Values window. Parent Value A parent value is a value that has one or more child values associated with it. A parent value can be assigned to a rollup group. You create parent-child relationships by defining a range of child values that belong to a parent value. You can use parent-child relationships for reporting and other application purposes. 14. What goes into defining an Accounting Calendar Create a calendar to define an accounting year and the periods it contains. You should set up one year at a time, specifying the types of accounting periods to include in each year. Defining one year at a time helps you be more accurate and reduces the amount of period maintenance you must do at the start of each accounting period. You should define your calendar at least one year before your current fiscal year. 1. Navigate to the Accounting Calendar window. 2. Enter a Name and Description for the calendar. 3. Add the periods that make up the calendar year. 4. Save your work. 15. Close process in GL module 16. What are the main setup steps for the GL Module Define Your Chart of AccountsDefine your chart of accounts using the Flexfield Title, Accounting Flexfield. When you first define your chart of accounts, you must enable Dynamic Insertion. This will enable you to create the necessary account combinations when you define your ledgers using Accounting Setup Manager. After you complete your ledger options, you can optionally disable dynamic insertion for your chart of accounts. Define Your Cross-Validation Rules (optional)Define crossvalidation rules to control the account combinations that can be created during setup and data entry. If you skip this step, no security will be provided to prevent invalid combinations from being created during setup and data entry. Define Your Chart of Accounts Mapping (optional)Define a chart of accounts mapping to provide instructions for mapping accounts or entire account segments from a one chart of accounts to another for consolidation purposes and secondary ledgers.For consolidations using the Global Consolidation System, the chart of accounts mapping enables you to transfer consolidation data from your subsidiary ledger to your parent ledger.For secondary ledgers that use a different chart of accounts from their associated primary ledgers, the chart of accounts mapping enables you to transfer journals and balances from the primary ledger to the secondary ledger. A chart of accounts mapping is required for all secondary ledgers that use a different chart of accounts from the primary ledger. Define Your Accounting Period TypesYou can define your own period types to use in addition to the General Ledger standard period types Month, Quarter and Year. You use these period types when you define the accounting calendar for your organization.Each ledger has an associated

period type. When you assign a calendar to a ledger, the ledger only accesses the periods with the appropriate period type. Thus, you can define an accounting calendar with periods of more than one period type. However, each ledger will only use periods of a single period type.

Define Your Accounting CalendarCreate a calendar to define an accounting year and the periods it contains. You should set up one year at a time, specifying the types of accounting periods to include in each year. You should define your calendar at least one year before your current fiscal year.You can define multiple calendars and assign a different calendar to each ledger. For example, you can use a monthly calendar for one ledger, and a quarterly calendar for another. Define Your Transaction Calendar (conditionally required)Each ledger for which average balance processing is enabled, must be assigned a transaction calendar, which is used to control transaction posting in Oracle General Ledger and Oracle Subledger Accounting. When you define the transaction calendar, you choose which days of the week will be business days. You can also specify other non-business days, such as holidays, by maintaining the transaction calendar. Define the Currency for Your LedgerDefine the currency for your ledger, or enable one of the predefined ISO (International Standards Organization) currencies. You should also define or enable any additional currencies you plan to use. See: Defining Currencies, Oracle General Ledger User's Guide Define Conversion Rate Types and Conversion Rates to Support Multiple Currencies (optional). Conversion Rate Types: Define the conversion rate types you want to use to maintain daily exchange rates and to enter foreign currency journals. General Ledger comes with four predefined conversion rate types: Spot, Corporate, User, and EMU Fixed. See: Defining Conversion Rate Types, Oracle General Ledger User's Guide.Daily Rates: Enter the daily rates you will need. Typically, you will enter rates to convert foreign currency journal entries into your ledger currency and reporting currencies. See: Entering Daily Rates, Oracle General Ledger User's Guide. Define Accounting SetupsDefine an accounting setup using Accounting Setup Manager to link legal entities to ledgers and other setup components, such as reporting currencies, subledger accounting options, intercompany accounts, intracompany balancing rules, and sequencing options. Each accounting setup must have a status of Complete before you can use its ledgers and setup components for transaction .If you plan to use average balance processing, you must specifically enable average balance processing, assign a transaction calendar, and define a Net Income account.If you need to represent your primary ledger transactions in another accounting method, chart of accounts, calendar, currency, and/or ledger processing options, assign secondary ledgers to each accounting setup. Define Ledger Sets (optional)Define Ledger Sets to take advantage of processing efficiencies for General Ledger processes, such as opening and closing General Ledger periods across multiple ledgers in a ledger set, generating MassAllocations across ledgers, or reporting across ledgers. Define Data Access Sets (optional)Define data access sets to secure read and write access to ledgers, balancing segment values, and management segment values assigned to a ledger. Only one data access set can be assigned to a responsibility. Assign a Ledger to the GL Ledger Name Profile OptionIf using Oracle Subledgers whose menus contain General Ledger windows that require data access set information, you must assign the appropriate ledger to the profile option GL Ledger Name for each subledger application or

responsibility. This profile option controls the ledger that each subledger will use for transaction processing.If you skip this step, you will not be able to enter transactions for a ledger in your subledgers. The ledger specified for the GL Ledger Name profile is automatically applied to the GL: Data Access Set profile option, but the GL: Data Access Set profile option can be changed to control the ledgers accessible by General Ledger users.

Set Your GL: Data Access Set Profile OptionTo use ledgers in Oracle General Ledger, you must assign a system-generated or user-defined data access set to the GL: Data Access Set profile option.If using Oracle Subledgers, the ledger you assigned to the GL Ledger Name profile option is automatically assigned to the GL: Data Access Set profile option. You can override the setting if you want to access multiple ledgers in Oracle General Ledger or limit read and write access to ledgers and their balancing segment values and management segment values for General Ledger only. If you choose to override the GL: Data Access Set profile option, be sure that one of the ledgers in your data access set contains the ledger used by your subledger applications in order to successfully transfer subledger journals to Oracle General Ledger.If no value is entered for the GL: Data Access Set profile option, you will not be able to enter transactions for a ledger using Oracle General Ledger. This profile option controls which General Ledger responsibilities can access ledgers contained in a data access set. Define and Assign Document SequencesCreate a document sequence to uniquely number each document generated by an Oracle application. In General Ledger you can use document sequences to number journal entries upon saving a journal, enabling you to account for every journal entry. Define Your Employees and Authorization Limits (optional)Use the Enter Person window in Oracle General Ledger to define employees. You must enter an employee and specify their journal authorization limits in the Journal Authorization Limits window before you can use Journal Approval.If you previously defined your employees while setting up a different Oracle Applications product, you only need to set up their journal authorization limits to specify their threshold amounts in Oracle General Ledger. Set Up Journal Approval (optional)Set Up Journal Approval for your ledger. Open Accounting PeriodOpen and close accounting periods to control journal entry and journal posting, as well as to compute the beginning period balances when opening the first period of a new year.

17. What is Multi Org Access Control (a.k.a MOAC) In 11i Legal Entities are nominal and mainely for Government Reporting entities for Tax reporting and VAT registration. All the operations and transactions are happening at Operating Unit level. But In R12, Legal entities become major and all transactions happening at legal entity level. Banks and business entities are controlling by the legal entities.and Legal Entity definition included with territories, legal address, Legal Entity Identification Number, Legal registration, Legal Establishment etc.,

This is very mush suitable for shared services organizations through MOAC functionality. The multiorg architecture is meant to allow multiple companies or subsidiaries to store their records within a single database. The multiple Organization architecture allows this by partitioning data through views in the APPS schema. Multiorg also allows you to maintain multiple sets of books. Implementation of multiorg generally includes defining more than one Business Group. Basically the different entities in multi-org are: Business Group (BG) Sets of Books (SOB) Legal entities (LE) Operating units (OU) Inventory organizations (IO) If the org has more than an operating unit (least level) then the org structure can be called as multi-org. The difference in multi-org in 11i & R12i is "MOAC" concept(Multi-Org Access Control) MOAC provided the role based access, shared services, to perform multiple tasks across different operation units from within single application responsiblity. It is controlled by MO: Security profile. 18. What is a security profile The security profile attached to a responsibility determines which applicant and employee records are available to holders of that responsibility. You associate a security profile with work structures. The records of employees and applicants assigned to these work structures are then accessible to holders of the responsibility. The work structures you can name in security profiles are:

internal organizations and organization hierarchies. Organizations include structures like departments, sections, groups and teams. Each security profile allows access to one Business Group only. positions and position hierarchies. Positions are jobs performed within specified organizations, such as: Clerk, Accounting Section (organization is Accounting Section and job is clerk) Quality Control Technician (organization is Quality Control Group and job is technician) payrolls, such as Weekly Payroll, Monthly Payroll, or Sales Payroll. Define:

1. Enter a name for the security profile and select a Business Group. This does not need to be the Business Group you are logged on to. 2. If you want reporting users to be able to use this security profile, select the Reporting User name for the ID set up by the database administrator. 3. Uncheck the View All Employees and View All Applicants check boxes if you want to restrict access to these person types by organizations, positions, or payrolls. 4. To restrict access by organization, uncheck the View All Organizations check box. Select an organization hierarchy, and a top organization. Check the Include Top Organization check box if you want to allow access to this organization. 5. To restrict access by position, uncheck the View All Positions check box. Select a position hierarchy, and a top position. Check the Include Top Position check box if you want to allow access to this position. 6. In the Payroll Security alternative region: To give access to many payrolls, check the View All Payrolls check box, and uncheck the Include check box. Select the payrolls you want to exclude. To give access to a small number of payrolls, uncheck the View All Payrolls check box, and check the Include check box. Select the payrolls to include. 7. Save your work. 19. What are the key profile options that need to be defined for a new responsibility MO:Operating Unit Determines the Operating Unit the responsibility logs onto. Users can see and update this profile option. This profile option is visible and updatable at the responsibility level only. HR: Business Group Business Group that is linked to the security profile for a responsibility. This option is used online to control access to records that are not related to organization, position, or payroll. This option is seeded at Site level with the start-up Business Group. It is view only. Values are derived from the HR:Security Profile user profile option. HR:Security Profile Restricts access to the organizations, positions, and payrolls defined in

the security profile. This option is seeded at Site level with the view-all security profile created for the Startup Business Group. The business group you define appears in the list of values when you set up the HR: Security Profile profile option. GL:Ledger Name Each Responsibility is identified with a set of books using the profile option GL : Ledger Name, a responsibility can only see the accounting information for that set of books in oracle GL.

20. Mass Allocations What is this and how do you set it up, type of allocations, etc. Suppose department store rent Rs.50,000/- and that department store having 5 departments. This 5 departments occupied in different spaces. Mass allocation will apply to the department rent in 5 departments at an praportionate rate of department spaces which allined in the department. Not only department rent but also this can caliculate electricity, maintenance etc. Allocation of Revenues or expences across various departments or cost centers in an organisation Setup: 1. Navigate to the Define MassAllocations window. 2. Enter or query the name of the MassAllocation batch to which you want to add the formula. 3. Choose Formulas. 4. Enter the Name, Category, and Description of the MassAllocation formula. Categories help you group journal entries in a convenient manner for reporting and analysis. 5. Choose whether to Allocate Balances From the full balance or from a single entered currency. If you choose Full Balance, General Ledger allocates your entire account balance, which is comprised of amounts entered in your functional currency, as well as amounts converted to your functional currency from a foreign currency. The generated MassAllocation will be a functional currency journal entry. If you choose Single Entered Currency, General Ledger allocates the portion of your account balance entered in the Currency you specify. The generated MassAllocation will be a journal entry in the specified currency. If you are allocating encumbrance balances, you must allocate the full balance. You cannot allocate foreign currency encumbrances. 6. Choose Full Cost Pool Allocation to have any rounding difference resulting from the MassAllocation computation added to the cost pool with the largest relative balance. If you do not choose this option, any rounding differences will remain in the original account. 7. Enter the formula lines. 8. Save your work. 9. Choose Validate All to validate the batch, as well as all previously unvalidated batches. If you do not validate all batches, General Ledger will ask if you want to validate all unvalidated batches when you close the window. 10. Check the MassAllocation batch validation status to confirm the batch passed validation. 21. Financial Statement Generators (FSG) - What are the components of an FSG, what is a row set, column set, content set, how do you define on.

Financial statement generator feature helps us to generate reports such as balance sheets and income statements with out programming. It also provides a high degree of control on the rows,

columns, contents and calculations on the report. Different components such as row set, column set, content set, row order, display set have to be defined before a statement is generated, of which row set and column set are mandatory. Financial Statement Generator (FSG) is a powerful report building tool for Oracle General Ledger. With FSG, you can: Generate financial reports, such as income statements and balance sheets, based upon data in your general ledger. Apply security rules to control what financial information can be printed by specific users and responsibilities in any reports they run using FSG. Define your reports with reusable report objects, making it easy to create new reports from the components of reports you've already defined. Design custom financial reports to meet specific business needs. Print as many reports as you need, simultaneously. Print the same report for multiple companies, cost centers, departments, or any other segment of your account structure, in the same report request. Schedule reports to run automatically. Produce ad hoc reports whenever you need them. Print reports to tab-delimited files for easy import into client-based spreadsheet programs. A column set defines the format and content of the columns in an FSG report. In FSG, the commonly assumed attribute for a column definition is a time period (amount type), whereas the attribute for a row definition is an account assignment. Therefore, typical column sets include headings and subheadings, amount types, format masks, currency assignments, and calculation columns for totals. When you define a column set, you can:

Specify account balance types -- to include in the column. For example, you can define a column with actual, budget, or encumbrance amounts. Create Headings -- for your columns. You can also create relative headings, which change depending on the period of interest specified when you run the report. Define calculations -- to perform a variety of complex computations in your report. The calculations can reference other columns in the report. Specify formatting -- using format masks, which determine how numbers in your report are displayed. To define a column set: 1. Navigate to the Column Set window. 2. Enter a Name and Description for the column set. 3. (Optional) Enter an Override Segment.

See: Override Segments. 4. Choose Define Columns. 5. Enter the starting Position for each column. This is the number of characters from the left edge of the page that marks where each column starts. Consider the following factors when determining the starting positions of your columns: Total report width -- FSG prints reports in landscape mode, with up to 132, 180, or 255 characters per line, depending on the printers you have installed. Optionally, you can print reports in portrait mode (80 characters) by first setting the profile option FSG:Allow Portrait Print Style to Yes. 6. Enter a unique Sequence number for each column. You can use the sequence number to define column calculations. 7. Enter a Format Mask to control the display of values which FSG prints in the column. See: Format Masks. 8. Enter a Factor (Billions, Millions, Thousands, Units, or Percentiles) that determines how to display numeric values. For example, if you use the factor Thousands with the format mask 99,999,999.99, the number 23,910 will appear as 23.91 on your report. If you use the factor Percentiles with the format mask 99.99, the number .1258 will appear as 12.58 on your report. To display amounts using no factor, choose Units. 9. Create the column headings. See: Creating Column Headings 10. Save your work. Content Set: By assigning a content set to a report request, you can generate hundreds of similar reports in a single run. The content set controls how the numerous reports differ from each other. For example, assume your organization has 50 departments and that Department is one of your account segments. Also assume that you already have an FSG report for travel expenses, which you run weekly. By using a content set with your existing report definition, you can print a travel expense report for each department, in one report request. You can then distribute the reports to the 50 department managers for review purposes. Content sets are similar to row sets and actually work their magic by overriding the row set definition of an existing report. The subtle report variations discussed in the previous paragraph are achieved by the content set altering the row set account assignments and/or display options. To define a content set:

1. Navigate to the Content Set window. 2. Enter the content set Name and Description. 3. Choose a processing Type for multiple reports: Parallel -- FSG processes multiple reports at the same time. Sequential -- FSG processes multiple reports in sequential order. 4. Enter a Sequence number for each account range. 5. Enter the Account Range Low and High if you want to override the segment value ranges specified in your row set. If you enter a parent segment value for your flexfield low and high, FSG displays all child values for that parent. 6. Enter a content set Display type if you want to override the row set display type. 7. Choose Yes from the Summary poplist if you want to report only Summary account balances in your range. The parent segment values in your range must belong to a rollup group and the

rollup group must be used in a summary template. Choose No if you want to report only detail account balances in your range. 8. Save your work. To define a row set:

1. Navigate to the Row Set window. 2. Enter a Name and Description for the row set. 3. Choose Define Rows. 4. Enter a Line number for each row of the row set. The line number controls the order in which rows appear in a report. You also use the line number when creating a row calculation. 5. Enter a Line Item description for each row. This appears as the row label on any report you run using this row set. 6. (Optional) Enter the Format Options, Advanced Options, and Display Options for each row. 7. To have the row generate account balances on your report, choose Account Assignments to assign accounts to the row. To create a calculation row (for report totals and subtotals), choose Calculations. 8. Define additional rows for the row set. (steps 4 through 7) 9. Save your work. 22. What is a Definition Access Set Definition Access Sets are an optional security feature that allow you to secure shared General Ledger definitions such as MassAllocations, Recurring Journal Formulas, and Financial Statement Generator (FSG) components. Definition Access Sets allow you to:

Assign a user or group of users access to specific definitions. Specify what actions can be performed on secured definitions for a user or group of users. For example, you can secure FSG reports to allow some users to modify the report definition, other users to only view the report definition, while other users can modify, view, and submit the report. To use Definition Access Set security you:

1. 2. 3. 4.

Create a Definition Access Set. Assign it to one or more responsibilities. Create a definition. Secure the definition in its respective window and assign it to a Definition Access Set with the proper privileges. To create a Definition Access Set:

1. 2.

Navigate to the Definition Access Set window. Enter a Name and Description. You cannot modify or delete the Name once it is saved.

3.

(Optional) From the Definitions region, you can add definitions to the Definition Access Set. To do so, choose a Definition Type and Name from the List of Values. Only definitions that have been secured with the Enable Security checkbox checked in the definition window will be available. Assign one or more privileges to the definition:Use: The definition can be used.View: The definition can be viewed.Modify: The definition can be viewed and modified. View defaults automatically. Repeat steps 3 and 4 to add more definitions to the Definition Access Set. Save your work. Navigate to the Definition Access Set Assignments window to assign a Definition Access Set to a Responsibility. Select a General Ledger Responsibility that will be assigned to the Definition Access Set . In the Assignments region, choose one or more Definition Access Sets to assign.

4.

5. 6.

7.
8. 9. 10. 11.

23. What is a Ledger Set A ledger set is a group of ledgers that share the same chart of accounts and calendar/period type combination. Ledger sets allow you to run processes and reports for multiple ledgers simultaneously. For example, you can open/close periods for multiple ledgers at once, run recurring journals that update balances for multiple ledgers, or run consolidated financial reports that summarize balances across multiple ledgers in a ledger set. You can group all types of ledgers in a ledger set, such as primary ledger, secondary ledgers, and reporting currencies (journal and subledger levels), as long as they share the same chart of accounts and calendar/period type combination. The same ledger can belong to multiple ledger sets, and ledger sets can contain other ledger sets. To define a ledger set:

1. 2. 3. 4. 5. 6. 7.

Navigate to the Ledger Set window. Enter a name for the Ledger Set. Enter a Short Name for the ledger set. (Optional) Enter a Description for the ledger set. Choose a Chart of Accounts. Choose a Calendar and Period Type. (Optional) Specify a default ledger. The default ledger automatically defaults in all windows where the Ledger field is required.

8.

(Optional) Select the Enable Security checkbox to secure the Ledger Set definition. If you do not enable security, all users who have access to this definition will be able to use, view, and modify the ledger set definition.If the Assign Access function is available for your responsibility, the Assign Access button will be enabled once you select the Enable Security checkbox.Choose the Assign Access button to assign the definition to one or more Definition Access Sets with the desired privileges. For more information, see Definition Access Sets.If the Assign Access function has been excluded from your responsibility, you will be unable to view the Assign Access button in the Ledger Sets window. You can still secure the Ledger Set definition by selecting the Enable Security checkbox, but only Definition Access Sets that are AutoAssigned will be automatically assigned to this Ledger Set. See your System Administrator for more information on Function Security. In the Ledger/Ledger Set column, choose the ledgers and/or ledger sets to be included in the ledger set. Only those ledgers and ledger sets that share the same chart of accounts, calendar, and period type specified for the ledger set definition will be available.If you use reporting currencies (journal or subledger level), you can choose reporting currencies to be included in the ledger set. Only those reporting currencies that share the same chart of accounts, calendar, and period type specified for the ledger set definition will be available Save your work. The General Ledger Accounting Setup Program will be submitted. Ensure this program completes successfully.Once saved, a ledger set cannot be deleted. You can only add or remove ledgers and ledger sets from ledger sets.

9.

10.

Note: You must have at least one ledger or ledger set assigned to a ledger set.

24. Journal Approval The GL Journal Approval Process obtains the necessary management approvals for manual journal batches. The process validates the journal batch, determines if approval is required, submits the batch to approvers (if required), then notifies appropriate individuals of the approval results. The process has a result type of GL Journal Approval Process Result that gives one of four results:

Approval Not Required: The journal batch does not need approval. Approved: The journal batch was approved by all necessary approvers. In some cases, this may be the preparer. Rejected: The journal batch was rejected by an approver. Validation Failed: The journal batch failed the validation process and was never submitted to the approver.