ORACLE FINANCIAL GENERAL LEDGER

1.Explain the steps for Mass Budget.

Def: Mass budget means allocation of budget amounts to the range of accounts.
Before going to the mass budget we have to ensure whether Budgetary control is
checked at the Budgetary control Tab of Set of Books.
Step-1: Define parent segment value and assign the Child segment values.
In chart of accounts we have to create the on parent segment value. Then we
have to assign the child segment value to the parent segment value and compile
the chart of account.
Step-2: Define Budget
Define the name of the budget and description, select the status of the budget
and check the require budget journal box. Specify the first period and last period
save the form and click on the open next year.
Step-3: Define Budget Organization.
Define the name of budget organization and description and choose the display
sequence and set password (optional). Then go the ranges define the Low and
High ranges one for cost pool a/c and other one for child values a/c. The cost
pool a/c should type entered choose the functional currency and fund check level
is absolute and select the defined budget in the step 1. Foe the Child values
give the type as calculated and functional currency. The funds check level by
default it will be none. Then save the ranges till the status become Current. Then
go to the range assignments then define one by one account which you
mentioned in the ranges.
Step 4: Define budget Journals
Enter the budget amounts to the cost pool a/c through budget JVs and observe
the status of funds if the status is passed then the funds are reserved. And post
the JVs. Define the stat Journal for the allocation of the budget amounts and post
the same.
Step-5: Define Mass budget.
To enter the mass budget define the name and description and create formula. In
formula specify the cost pool account for allocating the budget amount to the
child values on the bases of the stat journal proportion.
Formula: Target a/c = A*B/C
A= Cost pool A/c, B= Usage factor, C= Sum of usage factors.
For Stat currencies define the balance type is actual other than this mention
budget. Then save the work and validate the mass budget.

ORACLE FINANCIAL GENERAL LEDGER

2.What are the options available with respect to budgets at set of books
level and explain each in brief.
The options available with respect to budget at set books level are as follows

Reserves for Encumbrance.

Enable Budgetary control
Require Budget Journals.

Reserve for encumbrance: If you enter an out-of-balance encumbrance entry,

General Ledger automatically posts the difference against the account you specify
here. If you have multiple companies or balancing entities within a set of books,
General Ledger automatically creates a Reserve for Encumbrance account for
each balancing entity.
Enable Budgetary Control: To define the funding budget this should be
optioned. then only we can create the funding budget. For planning budget it is
optional.
Require budget Journals: Check Require Budget Journals to allow only those
budget journal entry methods that create journal entries. If you are using
budgetary control, General Ledger requires you to create budget journals for your
funding budget. If you want to require budget journals for all budgets, choose
this option. However, if you want to require budget journals for your funding
budget only, do not choose this option
3.What are different types of budgets and explain each in brief.
There are two types of budgets as follows.
1. Non funding budget (Planning Budget)
2. Funding budget.
Non funding Budget: The budget is prepared for comparing the actual with
budget figures to know the variance. This budget will have no impact on the
transaction. For defining the budgets we can directly enter the amounts to this
budgets.
Funding Budget: The funding budget is requires budget journal for defining the
budget amounts. It will control the actual transaction. There are three fund check
levels are there in funding budget they are None, Absolute, Advisory.
4.What is the profile name for setting Aliases option?
Profile name for Aliases is Flexifield Shorthand entry
05. What is the mandatory source and category combination for Inter
Company Accounts?
Source: Other
Category: Other

ORACLE FINANCIAL GENERAL LEDGER

06. What do you mean by budget formula.

You define budget formulas to calculate budget amounts. Your budget formulas can
be simple or complex. You can use any combination of fixed amounts and account
balances, including actual or budget amounts, statistics, and period-to-date or yearto-date balances from the current period, prior period or same period last year.
When you define budget formulas, you create a budget formula batch. The batch
contains one or more budget entries, and each entry contains one or more formulas.
Use budget batches and entries to group your budget formulas. For example, you
might combine all formulas for a single department or division into one batch, or
group all formulas for certain types of calculations into separate entries.
When you calculate budgets using a budget formula, General Ledger replaces any
existing budget amounts directly; it does not create a budget journal.
07. If my actual entry is C1.D1.E1 .. Dr
To

10,000.00

C2.D2.A1

10,000.00

And if, my clearing company C3. what will be journal entry after posting.

1
2
3
4
5
6

Particulars
C1.D1.E1
C2.D2.A1
C3.D3.ICR
C1.D3.ICP
C3.D3.ICP
C2.D3.ICR
Total.

Debit.
10,000.00

Credit.
10,000.00

10,000.00
10,000.00
10,000.00
10,000.00
30,000.00

30,000.00

ICR = Inter company Receivable, ICP = Inter company Payable

C3.D3.ICP & ICR default clearing accounts.
08. What is the maximum Aliases Size?
The maximum aliases Size is 20 characters.
09. How to disable one particular Alias instead of all?
Go to the Aliases, Effective Tab page of Aliases screen, there uncheck the enable for
a particular alias.
10. What is the difference between summery and detail balnce option in
Inter company accounts?
Summery: Summery means it will show single journal for account balance.
Detail: Detail means it will show Transaction wise balance.
11. If set of books is defined with enabling Require Budget journals
option, can I change it later?

ORACLE FINANCIAL GENERAL LEDGER

Yes, once you have saved your work, you cannot choose to require budget journals
later provided if there is any planning budget in set of books. You can, however,
disable this option at any time.
12. What are fund check levels available?
There

are three-fund check levels available in budget they are

None
Advisory
Absolute

13. What are different statuses of Budget Organization?

There

are four statuses in Budget organization they are.

Adding
In Process
Reporting
Current

14. What do you mean by Master Budget?

Compilation of all budgets is called Master budget. Master budgets are informational
only when used with budgetary control. Master budgets do not affect funds checking,
budgetary control options, or the relationships between detail and summary accounts
used for budgetary control.
15. Is there a limit to the number of periods in a budget year? And how
many years a budget can span?
Yes, budget can include up to sixty periods per year, and can span an unlimited
number of fiscal years.
16. Is it required to open accounting periods before defining budget for that
period?
No, it is not required to open the accounting periods before defining budget for that
period provided budget periods should be opened.
17.Can I post a Budget Journal to a closed period?
Yes, We can post a Budget Journal to a closed period also.
18. What are different statuses of Budget?
There are three statuses of Budget they are
Current
Frozen
Open
19. If I delete my Budget Organization, will the budget amounts be deleted?
No, by deleting the budget organization the budget amounts will not be deleted.

ORACLE FINANCIAL GENERAL LEDGER

20.Can I Update/adjust
Organization?

an

existing

account

range

in

my

budget

You cannot update/adjust an existing account range in budget organization because

as the account range field is grayed out after saving the account range. But we can
delete the existing account range and redefine the required account range.
21. Is it required to provide offset account in Mass Budget formulae?
No, You can enter an Offset account if you want to generate balanced MassBudget
journals. The offset formula line is optional for MassBudgets, since budgets do not
have to balance.