Multiple Reporting Currencies

1
Flow of Accounting entries in Oracle
Applications By Sivakumar Ganesan E-Mailsivakumar
3009_at_gmail.com
2
Agenda

• Understanding the Accounting Flow in Oracle
  Applications
• Transaction Flow
• Modules Covered
• Set up required in Oracle Applications
• Defaulting Accounts
• Posting to General Ledger from Sub-Ledger
• Posting in General Ledger
• Viewing the Trial Balance

3
Understanding the flow of Accounting in Oracle
Applications
4
Transaction Flow

• Create Opening Balances in General ledger and
  Subledger
• Place Purchase order
• Receive the Materials into Stores
• Receive the Supplier Invoice from Supplier
• Match the Supplier invoice with PO and make
  Payment
• Issue Materials to Production
• Complete the Production Order and Build Inventory
• Ship the Material to Customer
• Raise invoice on Customer
• Receive Cash from Customer
• Reconcile the Payment and Receipt in Cash
  Management
• Post Sub Ledger Transactions into GL
• Run Trial Balance and Financial Statements
  (Profit Loss Account Balance Sheet

5
Modules Covered

• Oracle Purchasing
• Oracle Payables
• Oracle Inventory
• Oracle Manufacturing (WIP Accounting)
• Oracle Order Management
• Oracle Receivables
• Oracle Cash Management
• Oracle General Ledger

6
Cost Calculation
FG/Sub Assembly
Total Cost
Operations Cost
Item Cost
Purchased Item/ Sub Assembly Cost
Routing
Operations
Rate X Usage
Department
Production / Service Departments
Usage
Resources
Rate
Men, Money, Machine
7
Set up Required in Oracle Applications

• Each Module has a Parameter screen or Controlling
  Screen through which the Accounts are Defaulting
• Ex (Inventory Organization for Materials in
  Inventory Module, Receiving options for Inventory
  Receipt in Purchasing Module, Financial Options
  for Payables)
• There are other places also where we can define
  the Accounts and there is an inbuilt hierarchy
  within the Applications as to where from the
  Accounts need to be defaulted
• Each Module Needs to set the Accounts for an
  Accounting Event Happening in that Module

8
Defaulting Accounts in Case of Purchasing
9
Defaulting Accounts in Case of Purchasing
10
Posting to General Ledger from Sub-Ledger

• Sub-Ledger Accounting Entries are Transferred to
  General Ledger Interface table through the
  Concurrent Programs
• We can schedule the concurrent Process to
  Transfer Data to GL instead of manually running
  the concurrent Programs.
• You can run the Process Daily, Weekly, Monthly
• You can transfer the data either in
• Summary or (Total Transaction for an Account
  Combination per day)
• Detail (Each Transaction)

11
Posting in General Ledger

• This Process Transfers Data from GL Interface
  Tables to GL Main Tables
• (i.e) From GL_JE_INTERFACE table to GL_JE_HEADERS
  and GL_JE_LINES
• Once the Data is Posted No further changes to the
  Data is permitted

12
Accounting Events Oracle Purchasing

• Oracle Purchasing
• Inventory Accruals
• Transfer to Sub Inventory
• Purchase Price Variance
• Invoice Price Variance (IPV) and Exchange Rate
  Variance
• Return to Supplier From Receipt of Materials
• Inter-organization Transfer

13
Accounting Events Oracle Payables

• Invoices
• Invoice
• Invoice adjustment
• Invoice cancellation
• Prepayment application
• Prepayment un-application
• Payments
• Payment
• Future dated payment maturity
• Payment adjustment
• Payment cancellation
• Payment clearing
• Payment un-clearing

14
Accounting Events Manufacturing (WIP)

• Oracle Inventory
• Material Transfer from Stores to WIP
• WIP Completions and Material Consumption Entry
• Operations Completion Entry
• Finished Goods Stock Creation Entry
• Inter-Org Transfer
• Sub-Inventory Transfer

15
Accounting Events Order Management

• Order Management
• Cost of Goods Sold Entry in Inventory Module

16
Accounting Events Oracle Receivables

• Transactions
• Invoices
• Debit Memos
• Commitments
• Invoices Against a Deposit
• Invoice Against guarantee
• Credit Memos
• On Account Credit Memo

17
Accounting Events Oracle Receivables

• Receipts
• Unapplied Receipts
• On account Receipt
• Applied Receipt
• Reverse Receipt
• Charge back
• Adjustments
• Miscellaneous Receipts
• Bills Receivables

18
Accounting Event Cash Management

• Oracle Cash Management
• Cash Receipt Clearing
• Cash Payment Clearing
• Journals
• Open Interface

19
Accounting Event General Ledger

• Oracle General Ledger
• Journal Entries Created from Sub Ledger
• Manual Journal Entries created in GL
• Inter-Company Transfer Entries
• Translation entries
• Revaluation Entries

20
Flow of Accounting in oracle Applications

• Case Study