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Oracle E-Business Suite - Release 12
Oracle General Ledger
Technology Course Material
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Contents
1.
Introduction
2.
Accounting Manager Setup
3.
General Ledger -Key Setups
4.
Journal Entry
5.
Journal Approval
6.
Budgets
7.
Inquiry
8.
Foreign Currency Transactions
9.
Consolidation
10.
FSG-Financial Statement Generator
11.
FSG & XML Publisher
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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 Purchasing Oracle Inventory Oracle Payables Oracle General Ledger Oracle Fixed Assets Oracle Cash Management
Accounting Information Flows into General Ledger from all sub-ledger Modules
From Journal Entries Lines in General Ledger one can drill down to transactions level of Sub-ledgers
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Oracle General ledger Overview
Open Ledger Period Review/ Post/Report Enter / Import/ Generate Journals Revalue/ Translate/ Consolidate Account Inquiry/ FSG/ Standard Report Close Accounting GL Period Oracle General Ledger
Setups :
-Accounting Manager Setup -Legal Entity
-COA - Ledger -Ledger Sets -Data Access Sets
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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
9 One needs to activate currencies and create Chart of Account first before going to this
screen.
9You can also create Legal entity & operating unit from Accounting Setup manager and also
assign your ledger to Legal entity.
9You can also associate a secondary ledger to your primary ledger .
9You 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
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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 Owner’s Equity.
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Accounting Setup Manager – Create Ledger – Skip
Legal Entity creation if you want
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Specify Standard Information, Accounting Calendar
and Sub-ledger accounting options
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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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Run Replicate Seed Data Program from System
Administrator 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
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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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Add more ledgers to a Data Access Set if multiple
ledger’s access is required.
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Setup Profile Option:GL: Data Access Set
Result – Journal Entry Screen you can select any of the
Ledger assigned to Data access set
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Concurrent Request fired for compilation on saving
Ledger Set definition
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Practice Exercise
1. Create Chart of Account, Currency & Calendar – Use XXX-your employee number with your setups. 2. Create Ledger and complete all related setup via Accounting setup manager.
3. Create and assign legal entity and operating unit. 4. Create ledger Sets.
5. Create Data Access Set. 6. Setup Profile options.
7. Create General Ledger Responsibility for your Ledger. – Use XXX-your employee number with your setups.
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Practice Exercise
1. Review the Setup forms covered in this Key set up session. 2. Create Values in all your Value sets.
3. Create Your own Journal Category, Journal Source. 4. Create Security Rules .
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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
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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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GL: Default Desktop Viewer Profile Option for Excel
Versions
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Generate Journal – Reversal, Allocation, Recurring
& Carryforward
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Journal Import
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Practice Exercise
1. Create Simple Functional Journal.
2. Use Auto Copy Feature to copy a journal. 3. Create tax Journal
4. Create Foreign Currency Journal. 5. Post Journals
6. Reverse Journals
7. Create Recurring Journals and Generate Recurring journals. 8. Create and generate Mass allocation Journal.
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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
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Practice Exercise
1. Complete Setup related to Approval Enabling in Ledger. 2. Setup Approval related profile options.
3. Create two employees and setup Supervisor hierarchy. 4. Create Authorization limits for these employees.
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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.
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Practice Exercise
1. Create Budget & Budget Organization 2. Simulate Advisory and None Scenario. 3. Simulate QTD,YTD and PJTD scenario.
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Inquiry –Account, Average, Budget, Journal &
Funds
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Practice Exercise
1. Perform Inquiry for your Journals & Accounts. 2. Use Drill down feature to check balances details. 3. Use Account Analysis drill down.
4. Export the details. 5. Modify/Create the View
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Oracle General Ledger – Foreign Currency
Transactions
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Process Involved due to Foreign Currency
In Ledger if Reporting Currencies setup is used then revaluation journal is created automatically.
•Functional Currency is specified at Ledger Level.
•Transactions in Sub-Ledger or Journals in GL may be entered in the Foreign currency due to the nature of transaction.
•Company may be required to report its balances in currency other than Ledger Functional Currency. •In Such scenario Conversion , Revaluation and Translations are processes which are involved.
Below are some scenarios where Subsidiary company’s transaction and Functional currency may be
same or different than the Parent company and types of processes which will be involved in such
scenarios.
Remeasurement includes Conversion and Revaluation. Conversion happens at the time of transaction and Revaluation happens when program –Revaluation is run for a range of accounts and for a period.
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Pre-Requisites for Foreign Currencies(
Conversion/Revaluation & translation)
Define & Enable Currencies. Define Currency Conversion rates. Assign a currency to a 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
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Creation & Assignment of Translation Adjustment
account
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Enter Foreign Currency Journal
USD Journal
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Check Trial Balance and compare functional and
Foreign currency trial
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Trial balance Output - INR
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Currency – Revaluation
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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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Practice Exercise
1. Enter Currency Daily Rates.
2. Assign reporting currencies in ledger setup. 3. Create Translation adjustment account. 4. Enter Foreign Currency Journal .
5. Change Foreign Currency rates 6. Run Revaluation program
7. Run Translation program. 8. Review report output. 9. Review revaluation journal
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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
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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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Consolidation Definition
In R12 you can consolidate your Reporting currency ledger with parent Ledger
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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.
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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 Account Entered: Debit Entered: Credit
1 101.101.101.10010.000.000 250000 2 101.201.101.10010.000.000 200000 3 101.301.101.10010.000.000 150000 4 101.401.101.10010.000.000 100000 5 101.501.101.10010.000.000 50000 6 101.000.101.40010.000.000 750000
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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
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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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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.
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Output with Content Set to Override Row set
Definition.
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FSG-Auto Copy
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Practice Exercise
1. Create a Row Set
2. Assign account in the row set
3. Create a column set and assign period types in the column set. 4. Create default headings in column set builder
5. Create and run report
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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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FSG & XML Publisher
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FSG & XML Publisher
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Practice Exercise
1. Run your FSG reports in different ways mentioned in this FSG & XML session. 2. Review and check the output.
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Oracle General Ledger – Profile Options
GL : Default Desktop Viewer GL: Data Access Set
GL Account Analysis Report: Enable Segment Value Security on Beginning/Ending Balances
GL: Income Statement Accounts Revaluation Rule
GL AutoAllocation: Continue to Next Step if No Journal Created GL: Journal Review Required
GL Consolidation: Cross Instance Workflow Notification Contact
GL: Launch AutoReverse After Open Period
GL Consolidation: Exclude Journal Category During Transfer GL: Owner's Equity Translation Rule
GL Consolidation: Preserve Journal Batching
GL: Reverse Transaction Codes on Un-natural Balances
GL Consolidation: Preserve Journal Effective Date
GL:Create Encumbrance Entries for Budgetary Accounts
GL Consolidation: Separate rows for debit and credit account balances in
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Oracle General Ledger – Profile Options
GL Daily Rates: Cross Rates Override GL:Enforce Account Category Balancing GL Journal Import: Separate Journals by Accounting Date Journals: Allow Multiple Exchange Rates
GL Ledger ID
Journals: Allow Non-Business Day Transactions
GL Ledger Name
Journals: Allow Posting During Journal Entry
GL Revaluation: Days to Roll Forward Daily Rates Journals: Allow Preparer Approval GL Revaluation: Tracking by Cost Center Journals: Default Category
GL Revaluation: Validate Gain/Loss Accounts Journals: Display Inverse Rate GL Summarization: Accounts Processed at a Time Per Delete
Worker Journals: Enable Prior Period Notification GL Summarization: Maintenance Index Selection Factor Journals: Find Approver Method
GL Summarization: Number of Delete Workers Journals: Mix Statistical and Monetary GL Summarization: Rows Deleted Per Commit Journals: Override Reversal Method GL Translation: Revenue/Expense Translation Rule GL: Auto Allocation Rollback Allowed GL: Archive Journal Import Data
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Practice Exercise
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