Oracle General Ledger ????

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Oracle General Ledger????

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• iampcl_at_yahoo.com

2003/09
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Outline

• Overview
• Set of books
• Journals
• Budgeting
• Advanced account structure
• Reporting and analysis tools
• Accounting for foreign and multiple currencies

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The General Ledger Accounting Cycle
(JE Functional/Foreign Currency)
(JE Functional Currency)
Open Period
Create Journal Entries
Convert
Calendar
Correct Errors
Review Journal Details
Close Period
Run Reports
Post Journals
Subsidiary
Consolidate (GCS)
Review Account Balances
Translate
Functional Balances
Revalue
Foreign Balances
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Using Oracle General Ledger
Record
Analyze
Review
Manipulate
OracleGeneral Ledger
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Integrating with Subledgers

• Exporting Information to GL
• Payables Payments and invoices
• Receivables Debit/Credit memos, invoices,
  receipts, guarantees
• Assets Deferred and standard depreciation
  expense transactions
• Projects Labor cost, usage cost, revenue
  information
• Purchasing Accrued receipts
• Cost Management/Inventory Inventory and work in
  process transactions

OracleGeneral Ledger
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Integrating with Subledgers
Automatic or manual
Transfer in summary or detail
Journal Import
Subledgers
GL_INTERFACE
Asset
GL_JE_LINES GL_JE_HEADERS GL_JE_BATCHES
Post
GL_BALANCES
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Outline

• Overview
• Set of books
• Journals
• Budgeting
• Advanced account structure
• Reporting and analysis tools
• Accounting for foreign and multiple currencies

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Elements Required for a Set of Books
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Multiple Books for Multiple Companies

• Each corporation may include multiple sets of
  books.
• Each set of books may include multiple companies
  and/or divisions.

Corporation
Sets of books
Companies
Divisions
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Sharing a Set of Books Across Oracle Applications
Account Structure
Value sets
Segment values
Security rules
Cross-validation rules
Accounting Calendar
Periods
Period types
Currencies
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Defining Chart of Account
Application
Flexfield Security Rules
Cross-Validation Rules
Accounting
Accounting
Flexfield
Flexfield
Segment
Segment
Segment
Segment
Value Set
Value Set
Value Set
Value Set
Value
Value
Value
Value
Value
Value
Value
Value
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Defining Value Sets Segment Values

• Validation Type
• Independent
• Dependent
• Table

Value_Set 1
Value_Set 2
Value_Set 3
Format Char Maximum size 2 Validation Indepen
dent
Format Char Maximum size 4 Validation Indepen
dent
Format Number Maximum size 3 Validation Indep
endent
Qualifiers
Cost Center
Natural Account
Balancing Segment
100 101
1000 1001
01 02
Values
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Design Account Segments

• The account structure helps you categorize your
  accounting information.
• You create an account structure by defining
  Accounting Flexfield segments that comprise the
  account
• Company
• Fund
• Cost center or Department
• Account
• Product
• Program
• Project
• District
• Distribution Channel

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Creating Accounting Flexfields

• Perform the five steps necessary to create an
  Accounting Flexfield.
• 1. Define a value set.
• 2. Define an Accounting Flexfield structure.
• 3. Define valid segment values.
• 4. Optionally, create account combinations.
• 5. Define security rules.

Example XX XXX
XXXX XXXX XXX Company
Department Account Sub-Account Product
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Using Dynamic Insertion

• Dynamically create new account combinations.
• Dynamic insertion can be enabled or disabled at
  any time.
• All new combinations must satisfy all defined
  cross-validation rules before they are accepted.

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Defining Flexfield Security Rules

• Restrict data entry and online inquiry to
  specific values by using flexfield security rules.

Account Segment
s 0000 to 9999
Include
s 1000 to 3999
Exclude
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Defining Cross-Validation Rules

• Prohibit creation of invalid account combinations
  using cross-validation rules.
• Use cross-validation rules in combination with
  dynamic insertion.
• Define cross-validation rules before entering a
  chart of accounts.

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Journal Account Scenario
Security Rule
Flexfield Security Rule
Compay00 not valid for this Responsibility
Cross-Validation Rule
Department 730 can only be used with Company 01
Combinations 01-510-7740-0000-110 02-460-7695-130
0-000 . . 01-510-7740-0000-110 01-510-7740-0000-1
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Journal 01-510-7750-0000-110 02-460-7695-1300-000
. . 01-510-7750-0000-110 01-510-7740-0000-110
Not Found ERROR
Found OK
Not Found CREATE
Found OK
Not Allow Dynamic Insertion
Allow Dynamic Insertion
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Defining the Accounting Calendar

• Create a calendar to define an accounting year
  and the periods that it contains.
• Periods
• Period Type
• Calendar
• Fiscal
• Period Open/Close

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Defining Currencies

• Create New Currencies
• Predefined Daily Conversion Rate Type
• Spot
• Corporate
• User
• European Monetary Union (EMU) Fixed
• Custom Rate Type
• Defining Daily Rates between any two non-EMU
  currencies

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Creating a Set of Books

• You must create at least one set of books before
  you can use Oracle General Ledger.
• Required steps include
• Defining Accounting Flexfields
• Value sets
• Segments
• Segment values
• Defining calendar periods and calendar period
  types
• Defining currencies
• Defining your set of books and assigning it to a
  responsibility

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Defining Shorthand Aliases

• A simple code that represents a partial or
  complete account combination.
• Reduce account-entry keystrokes
• Maximize productivity and accuracy.

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Defining Journal Categories

• Journal categories help you differentiate journal
  entries by purpose or type.
• When you enter journals, you specify a category.
• Use the predefined journal categories.
• Define your own journal categories.

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Defining Journal Sources

• Journal entry sources identify the origin of your
  journal entries.
• Predefined journal sources
• Assets Fixed Asset System
• Consolidation Consolidation System
• Conversion Historical Data Conversion
• Manual Manual Journal Entry
• Transfer Budget Transfer
• Custom-Defined journal sources.
• Freeze journals imported from feeder systems.

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Practice (1)(2)

• Find out the current Chart of Accounts
• Check the Account Structure
• Insert a value in the Department Segment

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Outline

• Overview
• Set of books
• Journals
• Budgeting
• Advanced account structure
• Reporting and analysis tools
• Accounting for foreign and multiple currencies

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Journal Entry Types
Mass Allocations
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Journal Creation Methods

• Manual Entry
• Reversals
• Recurring
• MassAllocations

Journal Import
Journal Wizard
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Journal
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Accounting Calendar

• Accounting period 5 statuses

Future Enterable
Never Opened
Permanently Closed Period
Closed Period
Open Period
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Posting Journals

• Update balances by posting journals.
• Un-post Journal
• Control total violations
• Posting to unopened periods
• Unbalanced journal entries

Account Balance
Prepost 500 Journal 25 After
post 525
Post journal
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Reviewing and Correcting Balances
Enter and post journals
Review balances
No
Are the account balances correct?
Yes
End
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Creating Reversing Journals
Generate a reversal of any journal entry
Create Reversal
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Recurring Journals

• There are three major types of recurring
  journals.
• Skeleton
• Standard
• Formula

Dr. Temporary LaborltNo Amountgt Cr. Salaries
Payable..ltNo Amountgt
Dr. Auto Lease Expense. . . .ltConstant
Amountgt Cr. Accounts Payable..ltConstant
Amountgt
Dr. Rent Expense. . . .ltVariable
Amountgt Cr. Rent Payable..ltVariable Amountgt
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MassAllocations Overview

• A single journal entry formula that allocates
  revenues and expenses across a group of cost
  centers, departments, divisions, and so on.

Total rent
1/3
1/3
1/3
Tokyo rent
Paris rent
Chicago rent
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Defining MassAllocation Journals Exmple

• In Nov. 1998, the organization spends 10,000
  dollars for rent

Dr. Total rent expense 10,000 dollars
Cr. Rent Payable 10,000 dollars

• The organization want to allocate to 3
  departments

Human Resources 45 of total floor space
Research 30 of total floor space
Finance 25 of total floor space

• The rent expense is redistributed using the
  following journal entry

Dr. Human Resources rent4,500 dollars Dr.
Research rent ..3,000 dollars Dr. Finance
rent .....2,500 dollars Cr. Total
rent expense 10,000 dollars
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Practice (3)

• Create Journal Entry
• Posting Journals

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Outline

• Overview
• Set of books
• Journals
• Budgeting
• Advanced account structure
• Reporting and analysis tools
• Accounting for foreign and multiple currencies

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Budget Overview

• Budget estimated account balances for a specified
  range of periods. Then compare estimated amounts
  with actual balances to determine variances.

December 1998 Cost Center 100
Budget
Variance
Actuals
1,000
Salaries
15,000
14,000
(500)
Supplies
3,500
4,000
200
1,700
1,500
Travel
20,200
700
19,500
TOTAL
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Anatomy of a Budget Overview

• A budget consists of periods, accounts, and
  amounts.

Periods Accounts Amounts
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Completing the Budget Accounting Cycle
Define Budgets
Define Budget Organizations
Define Budget Formulas
Define Mass Budgets
Enter and Change Budget Amounts or Journals
Calculate Budgets
Report on Budgets
Freeze Budgets
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Creating Master and Detail Budgets

• Uses summary accounts to maintain master-detail
  budget relationships between hierarchy levels.

Corporate budget Master None
Marketing budget master Corporate
Sales budget master Corporate
Western budget master Sales
Eastern budget master Sales
Public relations budget master Marketing
Trade shows budget master Marketing
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Defining Budget Organizations

• Define budget organizations to specify budget
  accounts.

Maintenance CC 100
Administration CC 200
EngineeringCC 300
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Entering Budget Amounts

• Budget rules are predefined methods for
  calculating and distributing amounts to all
  periods for an account.

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Defining MassBudget Journals

• Define a single formula to allocate budget
  amounts across a group of balancing segment
  values, departments, and so on.

Total maintenance budget
Shipping Dept. maintenance budget
Engineering Dept. maintenance budget
Purchasing Dept. maintenance budget
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Creating Budget Formulas

• Calculate recurring budget amounts based on other
  budget amounts or on actual results.

Headcount budget (HC) 1,000 employees
Per head salary budget 40,000 each
Total salary budget 40,000,000
(1000 X 40,000)
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Transferring Budget Amounts

• Transfer fixed amounts or percentages of budget
  balances between account combinations within the
  same budget.

FY 97 PLAN Salary Benefits
FY 97 PLAN Salary Benefits
Transfer 500 from Salaries to Benefits for CC
100.


cc100
3000
1000
cc100
2500
1500
cc200
2000
750
cc200
2000
750
cc300
2500
900
cc300
2500
900
FY 97 PLAN Salary Benefits
FY 97 PLAN Salary Benefits
Transfer 10 from cc200 Salaries to cc300
Salaries.


cc100
3000
1000
cc100
3000
1000
cc200
1800
750
cc200
2000
750
cc300
2700
900
cc300
2500
900
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Reviewing and Updating Budgets

• Use a three-step process to ensure the accuracy
  of your budgets.

Step 1 Review budget information.
Step 2 Correct budget information.
Step 3 Freeze budgets.
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Outline

• Overview
• Set of books
• Journals
• Budgeting
• Advanced account structure
• Reporting and analysis tools
• Accounting for foreign and multiple currencies

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Advanced account structure Overview

• Balancing Accounts
• Suspense Accounts
• Intercompany Accounts
• Summary Accounts
• Summary Account Templates
• Rollup Group Templates

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Overview

• Due to multicompany journal entries or invalid
  account combinations, journal entries which do
  not balance within each balancing segment can
  sometimes be posted. However, you can use special
  balancing accounts to ensure that your books
  always remain in balance.

1
Balancing accounts
3 2 4
Regular accounts
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Defining Suspense Accounts

• Uses suspense accounts to balance journals for
  specific sources and categories.

Example
The following journal entry is posted Dr.
Rent Expense..10,000 functional dollars
Cr. Cash8,000 functional
dollars Because the debits and credits do not
balance, the posting program creates the
following journal entry line to post the
difference to a suspense account. Cr.
Suspense Account..2,000 functional dollars
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Defining Intercompany Accounts

• Define intercompany accounts for specific sources
  and categories.

Example
Company 1 transfers an asset to Company 2.
The posting program creates journal entry lines
to balance journal amounts for each balancing
segment value against the appropriate
intercompany account.
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Summary Account Overview

• Summary accounts store the sum of the balances of
  groups of detail accounts.

Summary Revenue Account.15,000
Detailed Revenue Account A..10,000

Detailed Revenue Account B.3,000
Detailed Revenue Account C.2,000
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Defining Summary Accounts

• Summary accounts enable quick online inquiries of
  account groupings. Following are common segments
  and examples of ways you can summarize
  information within each segment
• Company
• Cost center
• Account
• Product
• District or region

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Parent Values and Rollup Groups

• Assign related parent values to rollup groups
  before creating summary accounts.

Western area 999
Area rollup group
Nevada 299
Oregon 399
State rollup group
California 199
Detail segments
East 101
West 102
East 201
West 202
East 301
West 302
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Outline

• Overview
• Set of books
• Journals
• Budgeting
• Advanced account structure
• Reporting and analysis tools
• Accounting for foreign and multiple currencies

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Different Types of Reports

• Financial Statement Generator (FSG) Reports
  
• Create complex financial reports for business
  units, profit centers, and cost centers.
• Create consolidation reports, statement of cash
  flows, and reports including statistical
  information.
• Report on translated and foreign currency amounts.

• Standard Reports and Listings
• Request reports online without tying up your
  terminal while you wait to generate and print
  your report.
• Group reports into report sets.
• Schedule reports to run at regularly scheduled
  intervals.

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Standard Reports

• Oracle General Ledger gives you a complete set of
  standard reports. Categories of standard reports
  and listings include

Account Analysis
Budget
Consolidation
Chart of Accounts
Financial Statement Generator
Currency
Journals
General Ledger
Execution
Trial Balance
Other
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Submit Request Flow
Choose to submit a request or a set of requests
Enter request information
Enter parameter values
May be required
Optional
Define submission schedule
Optional
Define completion options
Select Submit Request
Record request ID
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Grouping Reports into a Set

• You can combine standard reports, listings, and
  programs into a request set to submit them as a
  group.

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Monitoring Standard Report Requests
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Basic FSG Reports

• Financial Statement Generator (FSG) is a powerful
  and flexible tool
• Build your own custom reports without
  programming.

Rows
Columns
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Defining Row Sets Column Sets

• Specify account
• balance types
• Create Headings
• Define calculations
• Specify formatting

Title Headings
Column Set
Row Definitions

• Assign accounts
• Define calculations
• Specify formatting

Row Set
Row (Calculated)
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Row Set Column Set Overrides

• A conflict exists if the same option is entered
  with different values in both the row set and the
  column set.

Column Set
Row Set
Conflict situation
Level of Detail Controller
Level of Detail Supervisor
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Customized Financial Reports
Define row sets.
1
2
Define column sets.
Define financial reports and report sets.
3
Request financial reports and report sets.
4
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Practice (4)

• Run a Financial Report

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Outline

• Overview
• Set of books
• Journals
• Budgeting
• Advanced account structure
• Reporting and analysis tools
• Accounting for foreign and multiple currencies

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Concepts You Should Know

• Multiple Reporting Currencies Sets of Books

• Multiple Sets of Books

Enter transactions in primary book
Reporting Books (different Currencies)
Transactions entered in primary books are
automatically converted to each reporting set of
books.
Transactions must be entered, revalued, and
translated separately in each set of books.
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Multiple Currency Accounting Flow
Define Reporting SOB (Reporting Currency)
Define Primary SOB (Functional Currency)
SPOT CORP USER . .
Define Currency
Define Conversion Rate Type
Enter Journals (Foreign Currency)
(Functional Foreign Currency)
Automatic Conversion
Post Journals (Primary SOB)
Convert to Reporting Currency (Reporting SOB)
Review Functional Currency Balances
Review Reporting Currency Balances
Online
Reports
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Foreign Currency Concepts
Conversion
Revaluation
Translation
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Conversion

• Automatically converts the amounts in foreign
  currency journals to functional currency

Foreign currencies
Functional currency
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Conversion -Example

• On 5/17, an organization provides consulting
  services to a foreign company for 10,000 foreign
  dollars.
• Exchange rate 0.8 functional dollars/ foreign
  dollar.

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Revaluation

• Review foreign currency transactions
• Reconverts foreign currency to the functional
  currency
• Creates a journal entry to adjust the functional
  balance

Foreign currencies
Conversion at the time of the foreign currency
transaction
Functional currency
Foreign currencies
Revaluation at the end of the accounting period
Functional currency
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Continuing the Revaluation Cycle
Revalue Foreign Currency Balances.
Post to Unrealized Gain/Loss Account
Reverse Revaluation Journals.
Is the foreign currency receivable still unpaid?
Yes
No
Post to Realized Gain/Loss Account
Collect foreign currency receivable.
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Revaluation -Example

• On 5/31, the receivable remains uncollected and
  the organization wants to report on receivable
  financial position.
• The exchange rate has risen to 0.81.

Functional Receivable 5/17
8,000
5/31
8,100
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Translation

• Restate functional currency account balances into
  a reporting currency.

Functional currency
Translation
Foreign currency
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Terms You Should Know

• Period end rate The daily rate on the last day
  of your period
• (Used by Asset and Liability
  accounts)
• Period average The average of your daily rates
• rate throughout your period
• (Used by Revenue and Expense
  accounts)
• Historical rate A weighted average rate for
  transactions that occur at
  different times
• (Used by Equity accounts)

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Translation -Example
Functional Income Statement
Revenue
7,000
-Expense
4,000
Net Income
3,000
Period-End Rate 0.75
Period-Average Rate 0.72
Historical Rate 0.70
Foreign Income Statement
Revenue
5,040
-Expense
2,880
2,160
Net Income
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Standard Translation or MRC

• MRC Translation
• Amounts automatically translated at the
  transactions level
• For monthly foreign currency reporting
• Daily rates used to translate amounts
• Allows inquiry and reporting of reporting
  currencies directly from subledgers

• Standard Translation
• Amounts translated at the account balances level
• For once-a-year consolidation needs
• Period or historical rates used to translate
  balances

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Summary of Oracle General Ledger
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Summary

• Creating a set of books by defining a chart of
  accounts, accounting calendar, and currencies
• Entering and posting journals
• Defining and maintaining budgets
• Generating standard and Financial Statement
  Generator (FSG) reports
• Processing foreign and multiple currency