Oracle E-Business Suite - Release 12

Oracle General Ledger

Technology Course Material
April-2009

15 April 2009

Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Introduction Accounting Manager Setup General Ledger -Key Setups Journal Entry Journal Approval Budgets Inquiry Foreign Currency Transactions Consolidation FSG-Financial Statement Generator FSG & XML Publisher 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.

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Oracle General ledger & Other Modules

Oracle Order management

Oracle Receivables

Oracle Fixed Assets

Accounting Information Flows into General Ledger from all sub-ledger Modules Oracle General Ledger Oracle Inventory From Journal Entries Lines in General Ledger one can drill down to transactions level of Sub-ledgers Oracle Cash Management Oracle Payables

Oracle Purchasing

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

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Oracle General ledger Overview

Open Ledger Period

Enter / Import/ Generate Journals Review/ Post/Report

Revalue/ Translate/ Consolidate Oracle General Ledger Setups : -Accounting Manager Setup -Legal Entity -COA - Ledger -Ledger Sets -Data Access Sets

Account Inquiry/ FSG/ Standard Report

Close Accounting GL Period

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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 capture his accounting information which is both meaningful and manageable.

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Create Segments of COA

In 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 Qualifiers
Natural 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 on balancing segment. Natural Account segment once attached identifies/classifies each value stored in that segment as Asset, Liability, Expense , Revenue or Owners 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 Set

By default one Data access set is create by system with the name of your Ledger. Data Access set shows the access level on 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 Period

Open 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 ledgers 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. 2. 3. 4. 5. 6. 7. 8. Create Chart of Account, Currency & Calendar Use XXX-your employee number with your setups. Create Ledger and complete all related setup via Accounting setup manager. Create and assign legal entity and operating unit. Create ledger Sets. Create Data Access Set. Setup Profile options. Create General Ledger Responsibility for your Ledger. Use XXX-your employee number with your setups. 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. 2. 3. 4. 5. Review the Setup forms covered in this Key set up session. Create Values in all your Value sets. Create Your own Journal Category, Journal Source. Create Security Rules . 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 Journals
1.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 Options in 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 Import
You can import Journals for multiple ledgers

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Encumbrance Journal

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Practice Exercise
1. 2. 3. 4. 5. 6. 7. 8. 9. Create Simple Functional Journal. Use Auto Copy Feature to copy a journal. Create tax Journal Create Foreign Currency Journal. Post Journals Reverse Journals Create Recurring Journals and Generate Recurring journals. Create and generate Mass allocation Journal. 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 level Enable Journal Approval at Journal Source Level Create Employee Hierarchy Enter Authorization Limits Set 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. 2. 3. 4. 5. Complete Setup related to Approval Enabling in Ledger. Setup Approval related profile options. Create two employees and setup Supervisor hierarchy. Create Authorization limits for these employees. 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

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Changed Amount to INR 45000

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View Results

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Practice Exercise
1. 2. 3. Create Budget & Budget Organization Simulate Advisory and None Scenario. 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. 2. 3. 4. 5. Perform Inquiry for your Journals & Accounts. Use Drill down feature to check balances details. Use Account Analysis drill down. Export the details. 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 companys 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 ledger Define 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 account Enter Daily Rates. Assign rate types for your ledger Enter Historical rate (Optional) Enable Segment tracking segment to track translation and revaluation accounts tracked on a secondary segment.

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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 Journal

USD 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. 2. 3. 4. 5. 6. 7. 8. 9. Enter Currency Daily Rates. Assign reporting currencies in ledger setup. Create Translation adjustment account. Enter Foreign Currency Journal . Change Foreign Currency rates Run Revaluation program Run Translation program. Review report output. Review revaluation journal

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Oracle General Ledger Consolidation

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Consolidation
Consolidation 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 & Generate

The 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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FSG
Financial 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 sheets Generate presentation quality financial reports with XML Publisher Design custom financial reports to meet specific business needs Print & 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 Set Column Set Report

Optional Component
Content Set Row Order Display Set/Group Report 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 1 2 3 4 5

Account 101.101.101.10010.000.000 101.201.101.10010.000.000 101.301.101.10010.000.000 101.401.101.10010.000.000 101.501.101.10010.000.000

Entered: Debit 250000 200000 150000 100000 50000

Entered: Credit

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 Statement

Add one more Column in the Column Set with Offset -1 if you want previous months 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 Set
Output 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. 2. 3. 4. 5. 6. Create a Row Set Assign account in the row set Create a column set and assign period types in the column set. Create default headings in column set builder Create and run report 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 Publisher

Run FSG From Financial Reports window with Output option as XML
Step 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 Publisher

From 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. 2. Run your FSG reports in different ways mentioned in this FSG & XML session. 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 Account Analysis Report: Enable Segment Value Security on Beginning/Ending Balances GL AutoAllocation: Continue to Next Step if No Journal Created GL Consolidation: Cross Instance Workflow Notification Contact GL Consolidation: Exclude Journal Category During Transfer GL: Data Access Set GL: Income Statement Accounts Revaluation Rule GL: Journal Review Required GL: Launch AutoReverse After Open Period GL: Owner's Equity Translation Rule GL: Reverse Transaction Codes on Un-natural Balances GL:Create Encumbrance Entries for Budgetary Accounts

GL Consolidation: Preserve Journal Batching

GL Consolidation: Preserve Journal Effective Date 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 Journal Import: Separate Journals by Accounting Date GL Ledger ID GL Ledger Name GL Revaluation: Days to Roll Forward Daily Rates GL Revaluation: Tracking by Cost Center GL Revaluation: Validate Gain/Loss Accounts GL Summarization: Accounts Processed at a Time Per Delete Worker GL Summarization: Maintenance Index Selection Factor GL Summarization: Number of Delete Workers GL Summarization: Rows Deleted Per Commit GL Translation: Revenue/Expense Translation Rule GL: Archive Journal Import Data GL:Enforce Account Category Balancing Journals: Allow Multiple Exchange Rates Journals: Allow Non-Business Day Transactions Journals: Allow Posting During Journal Entry Journals: Allow Preparer Approval Journals: Default Category Journals: Display Inverse Rate Journals: Enable Prior Period Notification Journals: Find Approver Method Journals: Mix Statistical and Monetary Journals: Override Reversal Method GL: Auto Allocation Rollback Allowed

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Practice Exercise
1. Review Relevant Profile Options by logging as System Administrator

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