GL

1. What is Multi Org?

The ability to define MO and the relationship among them within a single Installation of Oracle
Applications. These organizations can be SOB, Business Groups, Legal Entities, Operating Units and
Inventory Organizations. It is required for more than one operating unit. The purpose of Multi Org is
required for more than one location.

Organization Structure

Business Group (HR Employee Master)

Set of Books (SOB)

Legal Entity (1) Legal Entity (2)

Operating Unit (1) Operating Unit (2) Operating Unit (3)

Inventory Org (1) Inventory Org (2)

Sub-Inventory Org (1) Sub-Inventory Org (2)

Data Security On: GL SOB

AP - OU
AR OU
FA Assets Book
OM- OU
PO OU
INV - IO

2. What is Business Group?

The highest level of organization and the largest grouping of employees across which a company can
report. An organization which represents the consolidated enterprise, a major division or an operation
company. These entity partitions Human Resources information.

3. What is Set of Books?

A financial reporting entity that partitions General Ledger information and uses a particular COA,
Currency and Calendar. The concept is the same whether or not the MO support feature is implemented.
 4. What is legal Entity?

An organization that represents a legal company for which you prepare fiscal or tax reports. You assign
tax identifiers and other relevant information to this entity.

5. What is Operating Unit?

An organization that partitions data for Sub ledger products (AP, AR, PO, OE). It is roughly equivalent
to a Single pre-Multi-Org installation.

6. What is Inventory Organization?

An organization that tracks the Inventory transactions and balances, and / or that manufactures or
distributes the products.

7. What is the MO setup process?

The steps of Multi Org as follows:

Develop the Organization Structure
Define SOB
Define Locations
Define Business Groups(Optional)
Associate Responsibility with Business Group
Define Organizations
Define Organization Relationships
Define Responsibilities
Set MO: Operating Unit Profile Option.
Convert to Multiple Organization Architecture.
Change Order Management Profile Options
Set Profile option specific to operating unit.
Define Inventory Organization Security(Optional)
Implement the Application Product
Secure Balancing Segment Values by Legal Entity(Optional)
Run the Multi Org Setup validation report(Recommended)
Implement Document Sequencing(Optional)
Define Intercompany Relations(Optional)
Set Top Reporting Level Profile Options(Optional)
Set Conflict Domains(Optional)

Prepare the Value Set.

Prepare the Segment and attached the value set with segment and attached the segment with flex field
qualifier.
Prepare the COA accounts and Currency and Calendar.
Prepare the Set of Books with mentioning the Retained Earnings accounting flex field.
Prepare the location

8. Account Segment

One of up to 30 different sections of your Accounting Flexfield, which together make up your general
ledger account combination. Each segment typically represents an element of your business structure,
such as Company, Cost centre, Account and Intercompany etc.
 9. Flexfields

An oracle applications field made up of segments. Each segment has an assigned name and set of valid
values. Oracle applications use Flexfields to capture information about your organization. There are two
types of flexfileds: Key flexfileds and Descriptive Flexfields.

10. Key Flexfiled

An intelligent key that uniquely identifies an application entity. Each key Flexfiled segment has a name
you assign, and set of valid values you specify. Each value has a meaning you also specify. The
following application uses the listed key flexfileds:
a) General Ledger Accounting Code
b) Projects / Assets Accounting, Category, Location and Asset Key.
c) Payables Accounting, System Items.
d) Receivables Accounting, Sales Tax Location, System Items, Territory.
One of up to 30 different sections of your key Flexfiled. You separate segments from each other by a
symbol you choose (such as -, / or \.). Each segment can be up to 25 characters long. Each key Flexfiled
segment typically captures one element of your business or operations structure, such as company,
division, region, or product for the Accounting Flexfields and item, version number, or color code for
the Item Flexfiled.

11. Descriptive Flexfiled

Additional information captured in GL.

12. Flexfield Qualifier

Use this window to apply flexfield qualifiers to your key flexfield segments. The window title
includes the current flexfield and segment names. For each qualifier, indicate whether it is enabled for
your key flexfield segment. Flexfield qualifiers are Balancing Segment, Natural Account Segment, Cost
Centre Segment, Intercompany Segment and Secondary Tracking Segment etc.

13. Segment

Use the Segments window to define segments for your Flexfiled. The window title includes the current
flexfields name. If your Flexfiled definition is frozen (that is, the Freeze Flexfiled Definition check box
is checked), this window becomes display-only.
You can define as many segments as there are defined segment columns in your Flexfiled table. You can
create a new segment for your Flexfiled by inserting a row.
Note: If your Flexfiled definition is frozen, the Segments window fields are not updateable.

14. Value Set

A group of values and related attributes you assign to an account segment or to a descriptive flexfield
segment. Values in each value set have the same maximum length, validation type, alphanumeric option,
and so on.

15. Segment Qualifier

Segment Qualifier is that which maps with flexfield to identify the account type. Likewise, account
flexfield, account type are Assets, Liabilities, Owners Equity, Revenue and Expenses.
 16. Dynamic Insert

An optional Accounting Flexfields feature that allows you to create new account combinations during
data entry in Oracle Applications. By enabling this feature, it prevents having to define every possible
account combination that can exist. Define cross-validation rules when using this feature.

17. Cross-validation rules

Rules that restrict the user from entering invalid key flexfield segment value combinations during data
entry. For example, you may set up a cross-validation rule that disallows using department segments
with balance sheet accounts.

18. Security rules

Rules that restrict to the certain responsibility to create edit or delete any thing in particular application.
The control over the steps in the order process where you no longer allow users to add, delete or cancel
order or return lines or change order or return information.

19. Financial Statement Generator

In FSG there are 5 components, out of which few are mandatory and few are optionals.
a) ROW Set (Mandatory) - Row Description
Row Assignments
Calculation
Formatting Option (Alignment, Underline, Page Break)
b) COLUMN Set (Mandatory) - Column Heading
Period Type (PTD, YTD)
Factor (Units, Thousand and Million)
Rounding Off
Currency
Balance Type (YTD-Budget, YTD-Actual, YTD-Variance)
Period Offset
Flag
c) REPORT (Mandatory) - Report Title
Attach Row Set & Column Set
Output Format (Text, Spread Sheet, Tab Related Option)
d) REPORT Set (Optional) - A group of reports that you submit at the same time to run
as one transaction. A report set allows you to submit the same set of reports regularly without
having to specify each report individually. For example, you can define a report set that prints all
of your regular month-end management reports.
e) CONTENT Set (Optional) - A Financial Statement Generator report component you
build within General Ledger that lets you generates hundreds of similar reports in a single run.
For example, you can define one departmental content set that prints 50 reports, one report for
each department in your organization.
f) ROW Order (Optional) - An optional Financial Statement Generator report
component that lets you controls how the order of rows and account segments appear in a report.
 20. Conversion

A process in Oracle Applications that converts a foreign currency transaction into your functional
currency using and exchange rate you specify. Gains or losses on foreign currency transactions due to
foreign currency fluctuations.

21. Translation

A process that allows you to restate your functional currency account balances into a reporting currency.
Oracle General Ledger multiplies the average, periodic, or historical rate you define by your functional
currency account balances to perform foreign currency translation.

22. Revaluation

A process that allows you to revalue assets and liabilities denominated in a foreign currency using a
period-end (usually a balance sheet date) exchange rate. Oracle General Ledger automatically revalues
your foreign assets and liabilities using the period-end exchange rate you specify. Revaluation gains and
losses result from fluctuations in an exchange rate between a transaction date and a balance sheet date.

23. Balancing Segment

As Accounting Flexfield segment that you define so that General Ledger automatically balances all
journal entries for each value of this segment. For example, if company segment is a balancing segment,
GL ensures that, within every journal entry, the total debits to company 01 equal the total credits to
company 01.

24. Natural Account Segment

Oracle GL, the segment that determines whether an account is an asset, liability, owners equity, revenue
or expense account. When you define your chart of accounts, you must define one segment as the natural
account segment.

25. Miscellaneous Receipts

A feature that lets you record payments that you do not apply to debit items, such as refunds and interest
income.

26. Multiple Reporting Currencies

A unique set of features embedded in Oracle Applications that allows you to maintain and report
accounting records at the transaction level in more than one functional currency.

27. Global Consolidation System

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

Define Consolidation Chart of Accounts Subsidiaries Book

Map consolidation data Parent Book

 Prepare Consolidation Data

Subsidiaries Set of Books Revalue

&
Translate Transfer Consolidation Data

Parent Set of Book

Post Consolidation Data ____ Create Eliminating Entries

FSG & Report Wizard

== Consolidated
Financial Analyzer

You should use GCS if one of the following is true in your organization:
Require different account structures (Example: One company has six segments COA while
another company has four segments COA.)
Companies use different accounting calendars (Example: one company has weekly calendar
while another company has monthly calendar)
Different currencies for different location based on the local currency.

There are two methods we can use to achieve consolidated result.

Reporting Consolidations: Define an FSG report which consolidates data stored in a single set of
books or which sums data across separate sets of books on the same applications instance.

Data Transfer Consolidations: Serves global enterprises with multiple set of books of multiple
applications instances. With data transfer consolidations, we can move financial data from diverse sets
of books and data sources into a single consolidation set of books.

28. State Controller

From the Consolidation Workbench, U accesses the State Controller, a navigation tool to guide U
through the consolidation process.

Mapping

Mapping Set

Translation Status

Transfer

Transfer Set

Review Journal

Post

Elimination Set
 Eliminate

Report

29. Global Intercompany System

The GIS manages Intercompany transactions between multiple subsidiaries within a global organization.

The Global Intercompany System (GIS) provides a controlled, central location for subsidiaries to
conduct intercompany transactions throughout a global organization. GIS manages intercompany
transactions that occur between sets of books.

Common Set of Books (Co. - 01 and Co. - 02)

Co. 01 Exp. A/c Dr. | Accounts Payable

To Co. 01 Liability A/c |

Co. 01 Liability A/c Dr. | Payments

To Co. 02 Bank A/c |

Co. 01 Intercompany A/c Dr. | Offset A/c

To Co. 02 Intercompany A/c

30. Budget

Define Budget > Define Budget Organizations> Three types (Define Budget Formula, Define Mass
Budgets, Enter and Change Budget Amount)> Calculate Budget> Reports on Budget > Freeze Budget.

Budget has three levels which are NONE, ABSOLUTE, ADVISORY.

31. Profile option

A set of options that control access to certain features throughout Oracle Applications and determines
how data is processed. Generally, profile options can be set at the Site, Application, Responsibility, and
User levels. For more information, see the user guide for your specific Oracle Application.

32. Mass Allocation

Use a Mass Allocation formula to create journals that allocate financial amounts across a
Group of cost centers, departments, divisions, and so on. By including parent values in allocation
formulas, you can allocate to the child values referenced by the parent without having to enumerate each
child separately. Hence, a single formula can perform multiple allocations. Statistics Journal is
mandatory requirements.

All Mass Allocation formulas:

COST POOL * (USAGE FACTOR / TOTAL USAGE)

General Ledger uses the following format to represent the equation. Each factor in this
Equation relates to a separate formula line. (A * B / C)
Looping (L): Assign this type to a parent segment value to include each child value assigned to the
parent value in the formula. You can loop only on parent values.
Summing (S): Assign this type to a parent segment value to sum the account balances of all the child
segment values assigned to a parent. You can sum only on parent values.
Constant (C): Assign this type to a child segment value to use the detail account balance associated
with the child.

The Offset account is usually the same account as formula line A to reduce the cost pool by the allocated
amount.

33. Important Report in GL

Reports are as follows:

i) Trial Balance Report

ii) Program Import Journal

34.
 AP

35. Financial Options values are shared by Payables, Purchasing and Assets.

Financial Options are Accounting, Supplier-Entry, Supplier-Payables, Supplier-Purchasing,

Encumbrance, Tax and Human Resources (Business Group: Company name and Employee no.:
Automatic)

36. Payable Options use for control and defaults used throughout payable. Set default in this
window that will simplify supplier entry, invoice entry and automatic payment processing.

Pre-requisites: COA, Financial Options, Payment Terms and Currencies Window.

Accounting Method, Transfer to GL, Payment Accounting, Currency, Supplier, Invoice, Matching,
Interest, and Expense report, Payment, Invoice Tax, Withholding Tax, Tax Defaults and Rules, Reports.

Payable Setup, there are three setup steps for payables which are Application Setup Steps(COA, DFF,
Currencies, Calendar, SOB), Financial Setup Steps(Payable Lookups, Purchasing Lookup, Distribution
Sets, Location, Employee, Inventory Setup, Payment Program) and Payable Setup steps (Primary Sob,
Financial Option, Payable Options, Payment terms, banks, Supplier, Reporting SOB, Payable A/c
period).

37. Matching to PO

Enter a Standard, PO Default, or Mixed type invoice in the Invoices window. If you enter PO Default
type, Payables prompts you to enter a PO Number, then Payables automatically defaults the Supplier,
Supplier Number, Payment Terms, and Currency from that purchase order to the invoice.

38. Matching CM/DM with PO and Invoice

When you enter a credit/debit memo, you can match it to existing invoice(s), purchase orders, or receipts
to have Payables automatically copy the accounting information and create invoice distributions for the
credit/debit memo.
For example, if you receive a credit for items you returned to a supplier, you can enter a credit memo
and match it to the original invoice you entered to ensure that the credit memo distributes the credit to
the same accounts originally charged.

39. Always Take Discount

A Payables feature you use to always take a discount on a suppliers invoice if the payment terms for the
invoice include a discount. You define Always Take Discount as a Payables option that Payables assigns
to new suppliers you enters. When Always Take Discount is enabled for a supplier site, you take a
discount on that suppliers invoice site regardless of when you pay the invoice.

40. Expense Report

In Oracle Payables, a document that details expenses incurred by an employee for the purpose of
reimbursement. You can enter expense reports online in Payables, or employees enter them online in
Internet Expenses. You can then submit Expense Report Import to import these expense reports and
expense reports from Projects. The import program creates invoices in Payables from the expense report
data.
 41. Pay Date Basis

A feature you assign to suppliers to determine when Auto Select selects invoices for payment in a
payment batch. Pay Date Basis (Due or Discount) defaults from the system level when you enter a new
supplier, but you can override it. When Pay Date Basis is Due for a supplier site, Oracle Payables selects
that suppliers sites invoices for payment only when the invoice due date falls on or before the Pay-
Through-Date for the payment batch. If Pay Date Basis is Discount, Payables selects the suppliers sites
invoices for payment if the discount date or due date is before the pay-through-date.
42. Pay Group

A feature you use to select invoices for payment in a payment batch. You can define Pay Group and
assign it to one or more suppliers. You can override the suppliers Pay Group on individual invoices. For
example, you can create an Employee Pay Group to pay your employee expenses separately from other
invoices.

43. Pay on Receipt

A Financials feature that allows you to automatically create supplier invoices in Payables based on
receipts and purchase orders you enter in Purchasing.

44. Payment batch

In Oracle Payables, a group of invoices selected for automatic payment processing. Payables create a
payment batch when you initiate Auto Select. Payables build and format payments for the invoices in the
batch according to the payment method and format you specify for a chosen bank account.

45. Payment batch processing

A Payables process that produces payments for groups of invoices. The complete process includes:
invoice selection, payment building, and manual modification/addition to invoice payments in the
payment batch, payment formatting, and confirmation of results. You can modify a payment batch up
until the time you format payments for the payment batch. You can cancel a payment batch up until the
time you confirm the payment batch.

46. Prepayment

A payment you make to a supplier in anticipation of his provision of goods or services. A prepayment
may also be an advance you pay to an employee for anticipated expenses. In Payables a prepayment is a
type of invoice that you can apply to an outstanding invoice or employee expense report to reduce the
amount of the invoice or expense report. You must validate the prepayment and fully pay the
prepayment before you can apply the prepayment.
You can enter two types of prepayments: Temporary and Permanent. Temporary prepayments can be
applied to invoices or expense reports you receive. For example, you use a Temporary prepayment to
pay a hotel a catering deposit. When the hotel's invoice arrives, apply the prepayment to the invoice to
reduce the invoice amount you pay. Permanent prepayments cannot be applied to invoices. For
example, you use a Permanent prepayment to pay a lease deposit for which you do not expect to be
invoiced.

47. Payment method

In Oracle Payables, a feature that allows you to make invoice payments using a variety of methods. You
can disburse funds using checks, electronic funds transfers, and wire transfers. Oracle Payables updates
your payment schedules the same way regardless of which payment method you use. You can assign a
payment method to suppliers, supplier sites, invoice payment schedule lines, and payment formats. You
can then assign one or more payment formats to a bank account. You can have multiple payment formats
for each payment method.

48. Quick payment

A feature you use to create an automatic payment on demand. With Quick payment, you choose the
invoices you want to pay, and Payables creates a single payment. You can also void and reissue a Quick
payment if your printer spoils it while printing.

49. Recurring invoice

A feature that lets you create invoices for an expense that occurs regularly and is not usually invoiced.
Monthly rents and lease payments are examples of typical recurring payments. You define recurring
invoice templates and Payables lets you define recurring invoices using these templates.

50. Recurring rule

A rule that is applied to the model invoice to determine the invoice dates of the recurring invoices. You
can choose Annually, Bi-Monthly, Days, Monthly, Quarterly, Semi-Annually, Single Copy, and Weekly.

51. Validation

Invoice Validation is a feature that prevents you from paying an invoice when your supplier overcharges
you or bills you for items you have not received, ordered or accepted. Validation also validates tax,
period, currency, budgetary, and other information. If you use budgetary control and encumbrance
accounting, Validation also creates encumbrances for unmatched invoices or for invoice variances.
Validation prevents payment or accounting of invoices that do not meet defined validation criteria by
placing holds on the invoice.

52. Matching Option

The process of verifying that purchase order and invoice information matches with accepted tolerance
levels. There are few ways for matching the PO which as follows:
2- Way Matching Invoice Price <= Order Price
Quantity Billed <= Quantity Ordered
3- Way Matching Invoice Price <= Order Price
Quantity Billed <= Quantity Ordered
Quantity Billed <= Quantity Received
4- Way Matching Invoice Price <= Order Price
Quantity Billed <= Quantity Ordered
Quantity Billed <= Quantity Received
Quantity Billed <= Quantity Accepted

53. AP doesnt balance with GL

Make sure all AP batches are imported from the gl_interface and posted in GL.

To reconcile your accounts payable activity for April, make the following calculation:
"Accounts Payable Trial Balance" as of March 31
 + "Posted Invoice Register" for the period between April 1 and April 30

- "Posted Payment Register" for the period between April 1 and April 30

= "Accounts Payable Trial Balance" as of April 30

You can also compare your AP liability accounts to GL by doing a query of the accounts in GL to
identify the account or accounts out of balance. The trial balance total should be the same as the balance
of your GL liability account.

Most of the problems with AP not balancing to GL are caused by the following:

1. Manual Entries. To check for manual entries Run the GL "Account Analysis" report for the
liability account and for the date range in question.

2. Any data fix that involves undo with sweep from one period to another.

3. Corrections made during the journal import process.

4. Deletion from the GL Interface.

5. AP batches not imported from the GL Interface

6. AP batches not posted.

7. Invoice entry with Liability A/c Dr to Liability A/c Cr.

54. Making Advance Payment

From Payable Responsibility

Activity Dr. Cr
Making Prepayment Invoice Advance A/c Creditors A/c
Paying Prepayment Invoice Creditors A/c Bank A/c

55. Applying An Advance to An Invoice

From Payable Responsibility, Enter an Invoice and go to Action 1 button, click on apply/unapply
prepayment, ok, next screen shows all available advances, click on the advance you wish to adjust, enter
the amount to adjust, enter GL date and click apply/unapply. Validate the invoice.
Activity Dr. Cr
Making Standard Invoice Charge A/c Creditors A/c
Applying Advance Creditors A/c Advance A/c

56. Taking Refund of An Advance

From Payable Responsibility,

i) Enter Standard Invoice for the same supplier from whom the advance is outstanding.
ii) In the charge A/c enter the exact GL a/c code combination of the bank a/c where the
money is to be received (Use Distribution sets)
iii) Apply outstand advance to the invoice
iv) Validate the invoice.
 Activity Dr Cr
Making Standard Invoice Bank A/c Creditors A/c
Applying Advance Creditors A/c Advance A/c

57. Important AP Report

Reports are as follows:

i) Accounts Payable Trial Balance (same as India Creditors Ledger Report)
ii) India Cash/Bank Report
iii) India Mass Addition Create Report
iv) India To Insert taxes for Pay on Receipt
v) Payable Accounting Process
vi) Prepayment Status Report
vii) Pay on Receipt Auto Invoice

58.

AR
 59. Define system options to customize your Receivables environment.

During Receivables setup, you specify your accounting method, set of books, tax method and accounts,
customer and invoice parameters, and how the Auto Invoice and Automatic Receipts programs will run.
Accounting, Tax, Tax Defaults and Rules, Trans and Customers, Revenue Policy, Claims, Miscellaneous
Pre-requisite for system option are SOB, Auto Cash Rule Sets, Grouping Rules, Key flex field
segments.

Receivable Setup, Setup steps are SOB, A/c Generator, Organization, Sales Tax location flex filed,
System Option, Payment terms, Open or Close A/c Period, Auto Accounting, transaction Type,
Transaction Source, collector, Approval Limit, remittance Bank, Receipt Class, Payment method,
Receipt source, Customer Profile Class, Setup Tax.

60. Entering Invoice with Installments

Defile split payment terms, than enter the transaction and put the define split payment terms, save and
complete the transaction.

61. Auto Invoice (Grouping rules and Line Ordering Rules)

Line Ordering Rules: - Define Invoice Line ordering rules for transaction line that you import into
receivables using Auto Invoice. Auto Invoice was these rules to order transaction lines when grouping
the transaction it creates into invoices, DM, CM. You can assign a line ordering rule to each grouping
rule.
Grouping Rules: - Define grouping rules that Auto Invoice will use to group revenue and credit
transaction into invoice, DM, CM. Grouping rules include mandatory attributes which are always
included in all grouping rules and optional attributes which may be included in a grouping rule.

62. Accounting Rules

Rules that you can use for imported and manually entered transactions to specify revenue recognition
schedules. We can define an accounting rule in which revenue is recognized over a fixed or variable
period of time.

63. Approval Limits

Limits you assign to users for creating adjustments and approving credit memo requests. Receivables
enforces the limits that you define here when users enter receivables adjustments or approve credit
memo requests initiated from iReceivables.

64. Auto Accounting Rules

A feature that lets you determine how the Accounting Flexfields for your revenue, receivable, freight,
tax, unbilled receivable and unearned revenue account types are created.

65. Auto Cash Rule

A feature that Post Quick Cash uses to automatically apply receipts to a customers open items. Auto
Cash Rules include: Apply to the Oldest Invoice first; Clear the Account, Clear Past Due Invoices, Clear
Past Due Invoices grouped by payment terms etc.

66. Complete Invoice

An Invoice whose status is complete. In order for an invoice to have a status of complete, the invoice
total must be greater than or equal to zero, have at least one invoice line, revenue records for each line
must add up to the line amount, and a tax and sales credit must exist for each line.

67. Customer Profile

A method used to categorize your customers based on credit information. Receivables uses credit
profiles to assign statement cycles, dunning letter cycles, salespersons and collectors to your customers.

68. Customer Profile Class

A category for your customers based on credit information, payment terms, currency limits and
correspondence types.

69. Direct Debit

An agreement made with your customer to allow the transfer of funds from their bank account to your
bank account. The transfer of funds occurs when the bank receives a document or tape containing the
invoices to be paid.

70. Dunning Letter

A letter that you send to customers to inform them of past due debit items. Receivable lets you specify
the text and format of each letter and whether to include unapplied and on-account payments.

71. Lockbox

A service that commercial banks offer corporate customers to enable them to outsource their accounts
receivable payment processing. Lockbox processors set up special postal codes to receive payments,
deposit funds and provide electronic account receivable input to corporate customers.

72. Payment method

In Oracle Receivables, an attribute that associates receipt class, remittance bank and receipt account
information with your receipts. You can define payment methods for both manual and automatic
receipts.

73. Quick Cash

A feature that lets you enter receipts quickly by providing only minimal information. After using Quick
Cash to enter your receipts, you can post your payment batches to your customer accounts by running
Post Quick Cash.

74. Revenue Recognition

Run the revenue recognition program to generate the revenue distribution records for the invoice and
CM that use the Invoicing & Accounting Rules. Assign accounting rules to recognize revenue over
several accounting period.
Revenue recognition program will create distribution records for the invoice and CM that create in
receivables and import using Auto invoice.
Pre-requisite are Define Accounting Calendar and Accounting Period, Enter Invoicing Rules.

75. Receipt batch

In Oracle Receivables a group of payments that you enter together to reduce data entry errors, share
various default values, and to group them according to a common attribute. For example, you might add
all payments from the same customer to a batch. Payments within the same batch share the same batch
source and batch name. Receivables display any differences between the control and actual counts and
amounts.
76. Receipt batch source

A name that you use to refer to how your company accounts for receipts. Receipt batch sources
relate your receipt batches to both the bank and the accounting information required for recording
and posting your receipts

77. Receipt class

Automatic receipt processing steps that you relate to your payment methods. You can choose whether to
confirm, remit, and clear automatic receipts.

78. Receipt source

Your name for a source from which your company receives cash. Your receipt sources determine the
accounting for payments that are associated with them. Receipts that you deposit in different banks
belong in different payment sources.

79. Remittance Bank

The Bank in where you deposit your receipts.

80. Receivable activities

Predefined Receivables activities used to define the general ledger accounts with which you associate
your receivables activities.
A name that you use to refer to a receivables activity. You use receivables activities during the setup
process to create accounting distributions for cash and miscellaneous receipt payments, receivables
adjustments, discounts, receivables accounts, and finance charges.

81. Remit to addresses

The address to which customers remit their payments.

82. Remittance advice

A document that lists the invoices being paid with a particular payment document. You can create and
define remittance advices which you can use with any payment format or you can use a standard
remittance advice that Oracle Payables provides.
 83. Remittance bank

The bank in which you deposit your receipts.

84. Standard Memo Lines

A type of line that you assign to an invoice when the item is not an inventory item (for example,
consulting service)

85. Transaction Type

In Oracle Receivables, an invoice control feature that lets you specify default values for invoice printing,
posting to the general ledger, and updating open receivable balances. Transaction includes invoices, DM,
CM, deposits, guarantees and chargeback entered with a GL date.

86. VAT

A tax on the supply of goods and services paid for by the consumer, but collected at each stage of the
production and distribution chain. The collection and payment of value added tax amounts is usually
reported to tax authorities on a quarterly basis and is not included in the revenue or expense of a
company.

87. Bank to Bank Fund Transfer

To transfer fund from one Bank to another, or transfer money from cash to bank and vice versa.
Navigation: Setup > Receipts > Receipts. (Money transfer from Bank to Cash Account)
Steps:
Navigate to receipts screen and choose Misc. Cash from LOV in type field.
Choose Bank as payment method
Enter a -ve receipt amount
Choose Bank Transfer receivable activity
Make another receipt in similar manner. Choose chase in payment method and give +ve receipt
amount.

Accounting entry
Misc. Receipt for Bank Account Clearing A/c Dr. To Bank A/c Cr..
Misc. Receipt for Cash Account Cash A/c Dr. To Clearing A/c Cr..

88. Refund to Customer

Create a DM (Navigation: Receivable > Transaction > Transaction Localization)

Steps:
1. Create one transaction in AR and fill the necessary fields. In the line level put description as
DM with quantity one and enter the total +ve amount. In the distribution level put charge A/c
as AP/AR Clearing A/c. Save and close the window by complete.
2. Create Standard Invoice in AP in the name of Misc. Vendor and make the payment to the
alternative name. The charge a/c should be AP/AR Clearing A/c.
89. Transfer Fund from Customer to Customer
Create DM in favor of Customer who is having Credit Balance and Create a CM in favor of customer
who is having Debit Balance.

90. Important Report in AR

Reports are as follows:

i) Auto Invoice Program

ii) Journal entries report
iii) Sales Journal by Customer Report
v) Unapplied Receipts Register
vi) AR Reconciliation Report
vii) Aging 7 Bucket by Account Report
viii) Applied Receipt Register

91.

FA
 92. Fixed Asset Setup Steps.

Assets Steps includes few process which are required and optionals.
SOB (R), Units of Measure (O), Employees (O), Descriptive Flexfields (O), Account Generator (R with
defaults), Additional Journal Entry Sources (R with defaults), Additional Journal Entry Categories (R
with defaults), Supplier and Employee Numbering Schemes (O), Suppliers (O), Asset Key Flexfield (R),
Asset Category Flexfield (R), Location Flexfield (R), System Controls (R), Locations (O), Asset Keys
(O), Standard Asset Descriptions and Other Quick Code Values (R with defaults), Fiscal Years (R),
Calendars (R), Set Up Security by Book (O), Book Controls (R), Depreciation Methods and Rates (R
with defaults - Life Based Depreciation Method, Flat-Rate Depreciation Method, Bonus Depreciation
Rules, Units of Production, Formula-Based Depreciation), Depreciation Ceilings (O), Define Your
Investment Tax Credits (O), Prorate and Retirement Conventions (R), Price Indexes (O), Asset
Categories (R), Distribution Sets (O), Enter Leases (O), Warranties (O), Set Profile Options (O), Asset
Insurance (O).

93. How many types of Flexfield?

There are three types of flexfields which are Category flexfield, Location flexfield and Asset Key
flexfield. Category and Location flexfield are mandatory and Asset Key flexfield is optional. Maximum
7 Segment use for Category (Seg.1- Major Category, Seg.2 Minor Category, Seg.3 Sub Category)
and Location flexfield (City, Building, Floor etc).

94. Category Flexfield

Oracle Assets lets group the assets and define what descriptive and financial information want to keep
about to asset categories and sub categories.

95. Location Flexfield

Oracle Assets lets define what information want to keep about the locations to use. Use the location
flexfield to define how you want to keep the information.

96. Asset Key Flexfield

Oracle Assets lets define additional ways to sort and categorize your assets without any financial impact.
The asset key flexfield allows you to define asset keys that let you name and group your assets so you do
not need an asset number to find them. You can provide additional descriptive data to group assets by
project or other functional group. You can use this flexfield to track your CIP assets.

97. Account Generator

Oracle Assets uses the Account Generator to generate accounting flexfield combinations for journal
entries. You must review the default process that Oracle Assets uses to see if it meets your accounting
requirements. You can optionally customize the Account Generator for each set of books that you have
defined. Note that you must set up Oracle Workflow in order to use the Account Generator.
Default - If you skip this step, Oracle Assets will use the default Account Generator settings to build
accounting flexfield code combinations.

98. CIP Asset

A depreciable fixed assets plan to build during a capital project. The costs associated with building CIP
assets are referred to as CIP costs. Oracle Assets lets create, maintain and add to your CIP assets as you
spend money for material and labor to construct them. When finish the assets and place them in service
(Capitalize them). Oracle assets begin depreciating them.

99. Control Book

A tax book used for mass depreciation adjustments that hold the minimum accumulated depreciation for
each asset.

100. Corporate Book

A depreciation book that use to track financial information for the balance sheet.

101. Distribution Set

You can use the Distribution Set poplist to choose a predefined distribution set for an asset. A
distribution set allows you to automatically assign a predefined set of one or more distributions to an
asset. When you choose a distribution set, Oracle Assets automatically enters the distributions for you.

102. Expensed Asset

An asset that you do not depreciate, but charge the entire cost in a single period. Oracle Assets does not
depreciate an expensed asset, or create any journal entries for it. You can, however, use Oracle Assets to
track expensed assets. The Asset Type for these assets is "Expensed".

103. Mass Additions

Oracle assets, a feature that allows copy the asset information from another system, such as oracle
payables. Create mass additions for an oracle asset creates mass addition lines for potential assets.

104. Prorate calendar

The prorate calendar determines the number of prorate periods in your fiscal year. It also determines,
with the prorate or retirement convention, which depreciation rate to select from the rate table for your
table-based depreciation methods. You must specify a prorate calendar for each book.

105. Prorate convention

Oracle Assets uses the prorate convention to determine how much depreciation to take in the first and
last year of an assets life based on when you place the asset in service. If you retire an asset before it is
fully reserved, Oracle Assets uses the retirement convention to determine how much depreciation to take
in the last year of life based on the retirement date. Your tax department determines your prorate and
retirement conventions.

106. Retirement Conventions

If you do business in a country that requires you to use a different prorate convention for retirements
than for additions, set up retirement conventions to determine how much depreciation to take in the last
year of life, based on the retirement date. You must set up your prorate conventions for the entire year.
When you run the depreciation program for the last period in your fiscal year, Oracle Assets
automatically generates the dates for your next fiscal year.
 107. Transaction Type

In Oracle Assets, the kind of action performed on an asset. Transaction types include addition,
adjustment, transfer, and retirement.

108. Accounting Entry from Purchase to FA

Capital Item based PO

Accounting Entry Receiving Receiving Inventory A/c..Dr.

To AP Accrual A/c...Cr

Delivery Asset Clearing A/c....Dr

To Receiving Inventory/c..Cr

AP Invoice AP Accrual A/c..Dr

To Sundry Creditors A/cCr

Post Mass Addition Assets Cost A/c..Dr

To Asset Clearing A/cCr

Depreciation A/c Entry Depreciation Expenses A/cDr.

To Accumulated Depreciation A/c ..Cr

Asset Retirement Entry

(Example: You place an asset in service in Year 1, Quarter 1. The asset cost is $4,000, the life is 4 years,
and you are using straight-line depreciation. In Year 3, Quarter 3, you sell the asset for $2,000. The cost
to remove the asset is $500. The asset uses a retirement convention and depreciation method which takes
depreciation in the period of retirement. You retire revaluation reserve in this book.)

Receivable A/cDr 2,000.00

To Proceeds of Sales Clearing A/c..Cr 2,000.00

Cost of Removal Clearing A/c.Dr 500.00

To Liability A/cCr 500.00

Accumulated Depreciation A/cDr 2,500.00

Proceeds of Sale Clearing A/c..Dr 2,000.00
Cost of Removal Gain A/cDr 500.00
Net Book Value Retired Gain.. Dr 1,500.00
To Asset Cost A/c..Cr 4,000.00
To Proceeds of Sale Gain A/cCr 2,000.00
To Cost of Removal Clearing A/c..Cr 500.00

109. Important Report in FA

Reports are as follows:

i) Asset Addition by cost Centre Report

ii) Asset Addition Report
iii) Asset Register Report
iv) Asset Retirement Report
v) Asset by Category Report
vi) CIP Asset Report
vii) Mass Addition Create Report
viii) Mass Addition Posting Report
ix) Unplanned Depreciation Report

110.

SYSTEM ADMINISTRATOR
 111. What is Sys Admin?

After developing any new object like, report, form, SQL program etc are to be registered in Oracle
Applications. For registering these new objects we have a responsibility called System Administrator.

112. How to register a new report in Oracle Apps?

The following steps are for registering reports in oracle apps.

i) Create a Executable ( Sys Admin > Concurrent > Program > Executable)
ii) Create a Concurrent Program (Sys Admin > Concurrent > Program > Define)
iii) Add report parameters on current window by using parameter option and note, while
registering parameters in apps, parameter must be matched with token in the current
window.
iv) Create a Request Group. Add current program to request group.
v) Create a Responsibility and attach the request group to the responsibility.
vi) Create user and attach the same responsibility.

113.