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General Ledger
[Version 12.1.1]
Created By
G.Narsa Reddy.
2012
[ORACLE]
Table Of Contents
Introduction:........................................................................................................................6
General Ledger Startup:.....................................................................................................7
Date:....................................................................................................................................8
Period Type:.....................................................................................................................8
Calendar Period Creation:................................................................................................8
Accounting Calendar:......................................................................................................9
2
CURRENCIES:....................................................................................................................9
Define Currency:...........................................................................................................10
Create Organization Structure:.........................................................................................10
Create Segments:...........................................................................................................11
Create Valueset:.........................................................................................................11
Chart Of Accounts:........................................................................................................12
Qualifiers:..................................................................................................................13
Create Segment Values:.................................................................................................14
Segment Qualifiers:...................................................................................................15
Primary Ledger:................................................................................................................18
3
Legal Entity:......................................................................................................................23
Assign Legal Entity to Primary Ledger:........................................................................24
Responsibility:...................................................................................................................27
Assign Primary Ledger to Responsibility:.....................................................................29
Create User:......................................................................................................................30
Open Periods in General Ledger:.....................................................................................33
Journal Creation:..............................................................................................................36
Create Menu......................................................................................................................37
Security Rule:....................................................................................................................39
Types of Security:..........................................................................................................40
4
Enter the Journals..........................................................................................................44
Cross Validation Rule:.......................................................................................................45
Enter the Journals:.........................................................................................................49
Journal Approval:..............................................................................................................50
Enable Journal Approval................................................................................................50
Set Employee Authorization Limit................................................................................52
Assign Employee to User..............................................................................................53
Assign Profile Option:...................................................................................................53
Journals: Allow Preparer Approval............................................................................54
Journal Approval Method:.........................................................................................54
5
Enter the Journals..........................................................................................................55
Short Hand Aliases............................................................................................................57
Journal Reversal Method..................................................................................................59
Journal Reversal ( Switch Dr.Cr):..................................................................................59
Journal Reversal (Change Sign)....................................................................................60
Multiple Reporting Currency............................................................................................63
Create Responsibility for RL.........................................................................................65
Create User and Assign Responsibility to User.............................................................67
Set Conversion Rate......................................................................................................68
Enter the Journals..........................................................................................................70
6
Data Access Set.................................................................................................................71
Assign Data Access Set to Our Responsibility..............................................................72
Enter the Journals..........................................................................................................74
Recurring Journals............................................................................................................74
Standard Recurring Journal...........................................................................................75
Skeleton Recurring Journa.............................................................................................78
Formula Recurring Journal............................................................................................81
Summary Accounts............................................................................................................84
Enter the Journals..........................................................................................................85
Create Rollup Group......................................................................................................89
7
Assign Rollup Group to the Parent................................................................................91
Create Summary Template.............................................................................................91
Enquiry the Account......................................................................................................92
Definition Access Set.........................................................................................................93
Create Definition Access Set.........................................................................................93
Assign the Definition Access Set to Responsibility......................................................94
Mass Allocation.................................................................................................................97
Stat Currency.................................................................................................................97
Define a Square Feet Account.......................................................................................98
Create a STAT Journa....................................................................................................99
8
Create a Parent Department...........................................................................................99
Create Mass Allocation Formula.................................................................................100
Budget..............................................................................................................................106
Create a Segment Value Reserve for Encumbrance.....................................................106
Enable Budgetory Control at Accounting Setup..........................................................107
Define Budget..............................................................................................................109
Define or Create Budget Organisation.........................................................................110
Fund Check Levels......................................................................................................112
Create Budget Journals................................................................................................113
Define Budgetary Control Group.................................................................................118
9
Assign Budgetary Control Group to Responsibility....................................................118
AutoPost Journals............................................................................................................119
Financial Statement Generator (FSG)............................................................................121
Create Segment Values for Revenue and Expenditures...............................................121
Enter the Journals........................................................................................................123
Define Row set............................................................................................................126
Define Column Set......................................................................................................137
Define Income Statement............................................................................................138
Run the Report.............................................................................................................138
View the Requests........................................................................................................139
10
Ledger Set........................................................................................................................141
Assign Ledger Set to Responsibility............................................................................142
Open the Period at Ledger Set Level...........................................................................143
Close the Period at the Ledger Set Level.....................................................................147
Can Set Data Access Permissions for Multiple Ledgers.............................................150
Can enter the Journals for Multiple Ledgers...............................................................151
Sequential Numbering.....................................................................................................152
Accounting Sequence..................................................................................................152
Setup access permissions at Ledger Level...............................................................152
Enter the Journals to verify the Accounting Sequence............................................156
11
Reporting Sequence:....................................................................................................157
Setup Access Permissions at Ledger Level.................................................................157
Enter the Journals to verify the Reporting Sequence...............................................159
Flex fields........................................................................................................................160
Key Flex field:.............................................................................................................160
Descriptive Flex Field:................................................................................................160
Create Segments......................................................................................................160
Enter the Segment Values........................................................................................163
Creation of Suspense Journal..........................................................................................165
Creation of Suspense Account.....................................................................................165
12
Assign Suspense Account at Ledger Level..................................................................166
Enter the Journals........................................................................................................167
Alternative Account.........................................................................................................168
Intra Company.................................................................................................................169
Auto Reversal..................................................................................................................175
Multiple Organization Structure.....................................................................................177
Some Features of Multi-Org........................................................................................177
Modules included in Multi org Structure.....................................................................178
Steps involved in creating Multi-Org Structure...........................................................178
Create Responsibility for all the Modules...............................................................179
13
Assign HR User to all the Responsibilities by using Profile name HR: User Type 183
Create a USER and Assign Responsibilities to USER............................................187
Define Location.......................................................................................................187
Define Business Group (BG)...................................................................................189
Assign BG to all Responsibilities............................................................................190
Create Primary Ledger.............................................................................................191
Create Legal Entity Definition.................................................................................193
Assign Primary Ledger to all the Responsibilities..................................................194
Create Operating Unit..............................................................................................195
Assign Operating Unit to all the Responsibilities....................................................197
14
Create Master Inventory..........................................................................................199
Run a Program Replicate Seed Data........................................................................200
Check our newly Multi-Org Structure created successfully....................................201
Create Work Day Calendar..........................................................................................202
Options in P2P Cycle...................................................................................................204
Assign Options for Master Inventory..........................................................................205
Assign Inventory Information OR Inventory Options.............................................205
Assign Receiving Information OR Receiving Options...........................................208
Enter Financial Options to Master Inventory..........................................................209
Enter Purchasing Options........................................................................................211
15
Create Actual Inventory...............................................................................................211
Set Accounting Information.....................................................................................213
Set Inventory Information OR Inventory Options...................................................213
Set Receiving Information OR Receiving Options.................................................217
Set Financial Options...............................................................................................218
Create Item......................................................................................................................218
Set Item Attributes.......................................................................................................219
Set Organization Assignment.......................................................................................220
Create Job.......................................................................................................................221
Create Position.............................................................................................................222
16
Assign Position to BG.............................................................................................222
Create Employee.............................................................................................................223
Assign Employee to User............................................................................................225
Create a Buyer.................................................................................................................226
Set Approval Limits for the Buyer...............................................................................227
Define Approval Assignments.....................................................................................228
Purchase Order...............................................................................................................228
Requisitions.................................................................................................................229
Open Periods in Inventory..............................................................................................229
Open Periods in PO........................................................................................................230
17
Open Periods in GL.........................................................................................................230
Raise Requisition.............................................................................................................231
Verify the Requisition has been approved...................................................................233
Accounts Payables...........................................................................................................234
Supplier Information....................................................................................................234
Invoices........................................................................................................................234
Types of Invoices.....................................................................................................234
Invoice Amount.......................................................................................................235
Due Date..................................................................................................................235
Payment Methods....................................................................................................235
18
Types of Payment.....................................................................................................236
Data Flow in AP...........................................................................................................236
Create Supplier................................................................................................................237
Create Purchase Order using Requisition.......................................................................242
Check Purchase Order.................................................................................................244
Create a Purchase Order without Raising Requisition...................................................244
Check the Purchase Order...........................................................................................246
Record the Receipt...........................................................................................................247
Create Sub Inventory.......................................................................................................248
Verify the Goods in Sub Inventory..............................................................................250
19
Open Periods in AP.........................................................................................................251
Creation of Standard Invoice..........................................................................................252
Set an option for all the invoices to be Validated........................................................255
Create Distribution Set................................................................................................257
Full Distribution Set................................................................................................257
Skeleton Distribution Set.........................................................................................258
Create Payment Terms.................................................................................................258
Create Payment Terms to pay in 30 days.................................................................258
Create Payment Terms to pay Immediately.............................................................259
Enter the Invoice with Distribution Set and Payment terms........................................260
20
Set Distribution Set and Payment Terms at Supplier Site Level.................................262
Enter the Invoice with PO or Receipt..........................................................................263
Hold the Payment for the Invoice................................................................................264
Create Debit Memo......................................................................................................265
Make a Payment..............................................................................................................268
Create Bank and Branch..............................................................................................268
Define Bank A/C Owner..............................................................................................271
Create Bank Account...................................................................................................276
Create Check Format......................................................................................................281
Define Payment Process Profile......................................................................................283
21
Issue Payment against Invoice........................................................................................286
Issue the payment to the invoice through Invoice Workbench....................................286
Partial Payment to the Supplier...................................................................................289
Issue Payment through Payment Work Bench.............................................................292
Issuing Payment considering Debit Memo..................................................................294
To see Accounting Entries for the Invoice.......................................................................296
Define Prepayment..........................................................................................................297
Create an Invoice against the prepayment...................................................................303
Invoice Statuses in Prepayment...............................................................................308
Recurring Invoice............................................................................................................309
22
Define Special Calendar..............................................................................................309
Define Recurring Invoice............................................................................................309
Query the Invoice....................................................................................................312
Conclusion.......................................................................................................................313
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Introduction:
General Ledger is a collection of the group of accounts to record the business
information. It includes accounts like Assets, Revenue, Liability, Expense and
Ownership. The balance sheet and income statement are both derived from the General
Ledger.
Oracle offers major features in General Ledger. Here are some listed major functions and
features of Oracle GL Modules.
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Define multiple calendars and accounting structures while dynamically creating
new accounts combinations based on User defined rules
Uses standard, reversing and recurring journals
Uses Mass Allocations to automate your cost and revenue allocations quickly and
accurately
Exclusive foreign currency capability
o Automate currency conversion, translation &revaluation in accordance
with generally accepted accounting principles
o Query and report on all foreign currencies and translated balances using
single or multiple sets of books
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o Use multiple reporting currencies sets of books to manage routine
reporting of foreign currency transactions
Record and review accounting information
o Import data from Primary Ledgers or enter journals to record actual or
budget transactions directly into GL.
o Enter encumbrance journals to track encumbrances to control spending
against budgeted amounts
o Review account balances online or through standard reports
Manipulate accounting information
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o Correct actual budget and encumbrance information
o Revaluation and translation balances denominated in foreign currencies
Analyze accounting information
Creating Multiple SR’s and CVR’s to give access permissions and restrict the
user.
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General Ledger Startup:
Enter Username/Password= Operations/Welcome
Select General Ledger, Vision Operations(USA).
Click on it.
Select ENTER at the Journals Section.
Which opens Oracle Applications Navigator Window.
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In any Organisation the three required fields are:
1. Date.
2. Particulars.
3. Amount.
Select the Period Type, N/o Periods in an year, Select the Year Type and Description and
SAVE it.
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Accounting Calendar:
Navigation: Setup FinancialsCalendarAccountingENTER.
Enter Accounting Calendar, and the periods of the calendar.
* Enable the Adjusting Calendar and SAVE it.
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DO YOU WANT TO VALIDATE THE CURRENTLY DISPLAYED CALENDAR OR
ALL THE CALENDARS. Click on CURRENT.
Define Currency:
Navigation : Setup Currencies Define ENTER
Press CTRL + F11 to display all the predefined Currencies.
Ensure that the currency to be used is ENABLE.
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If a Currency need to be created then Create a new Currencies with parameters specified.
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Create Organization Structure:
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Create Segments:
SAVE and click on SEGMENTS.
Mention the SEGMENTS to be created and SAVE it.
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Create Valueset:
Create VALUE SET for all the SEGMENTS.
Create Value Set Name, Maximim Size, Enable Numbers Only (0-9) and Enable Right
Justify and Zero-fill Numbers(0001)
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Create and Assign the VALUE SET to each SEGMENTS by using LOV(List of Values).
Provided.
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Chart Of Accounts: We Create Organisation Structure and under Organisation
Structure we create Segments.
If we want to enter any value we require Value Set. For that reason we create Value Set
and Assign Value Set to the Segments.
Organisation Structure
Segments
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CHART
OF ACCOUNTS
Value Set
Segment Value
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In Accounting Key Flexfields we can Design our Chart Of Accounts(COA).
By using Accounting Key Flexfields we can creat Minimum 2 and Maximum 30
Segments.
Two Qualifiers are Mandatory. Minimum two Segments should be created to assign these
qualifiers to the Segments.
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Select the COMPANY Segment and CLICK on Flexfield Qualifiers. Enable Balancing
Segment Flexfield Qualifiers and SAVE it.
Select the ACCOUNT Segment and CLICK on Flexfield Qualifiers. Enable Natural
Account Flexfield Qualifiers and SAVE it.
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Create Segment Values:
Navigation: Setup Financials Flexfields Key Values ENTER
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Application : General Ledger
Title: Accounting Flexfield
Structure : Select the Structure Name we have created e.g.(WIN_ORG_STRUCTURE)
Segment : We can select the Particular Segment for which Segment Values to be created.
In the above Scenario we leave it blank so that we can create Segment Values for all the
Segments.
Click FIND
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Create the Segment Values for COMPANY Segment
Segment Qualifiers: When creating Segment Values we nee to assign Segment
Qualifiers to the Segment.
Segment Qualifiers are of 5 types:
o Allow Posting
o Allow Budgeting
o Account Type
o Reconciliation Flag
o Control Account
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Assign 2 Segment Qualifiers for the COMPANY Segment.
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We have assigned Natural Account Segment Flexfield Qualifier for the ACCOUNT
Segment. Which indeed allows 3 more Segment Qualifiers to the Account Segment.
Select Independent Segment: and CLICK DOWN ARROW TO Open the new
SEGMENT and create the Accounts.
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Create all the Segment Values for all the Segments.
Segment Values for the DEPARTMENT.
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Create Segment Values for the LOCATION Segment.
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Open the Organisation Structure and Enable Freeze Flexfield Definition and COMPILE
our Structure.
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Select VIEW REQUESTS FIND to view the Compilation Result.
Primary Ledger: Primary Ledger is the Major Ledger to record the day to day
transactions in an Organisation.
Ledger can be used to group 4C’s i.e. (Calendar, Currency, Chart
of Accounts, Accounting Method). Accounting Method is not required for recording
transactions in General Ledger.
Click NEXT
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Click FINISH
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Click Define Accounting Options
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Click UPDATE in Ledger Options
Click NEXT and
ENTER Retained Earnings Account.
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Before entering Retained Earnings Account we have to Enable Allow Dynamics Inserts
at Structure level which gives permission to create any Code Combinations.
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Click NEXT
Click NEXT
Click on FINISH
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Legal Entity:
Legal Entity is a Company Registration Document.
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Click Create Legal Entity tab
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It created two legal type
o Legal Entity
o Establishment
Click Complete.
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After creating Legal Entity assign Legal Entity to Primary Ledger
Query the Primary Ledger
Click on Update Accounting Options
Click on Add Legal Entity tab
Click on Add Legal Entity tab
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Search for the Legal Entity which has to be assigned
Select the Legal Entity to be assigned
Click Select
Click Apply
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Responsibility: Create a Responsibility. To create Responsibility we need to switch
our responsibility to System Administrator who has permissions to create Responsibility.
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Click on Switch Responsibility
Search for System Administrator
Select and Click ok which opens up the System Administrator Navigator Window.
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Navigation: SecurityResponsibilityDefine
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Enter the required fields.
Responsibility Name, Application, Responsibility Key.
Data Group
Name : Standard
Request Group
Name: GL Concurrent Program Group 106
Save it.
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Assign Primary Ledger to Responsibility:
Navigation: Profile System
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Select the Responsibility to which PL has to be assigned.
The Profile name used to assign PL to Responsibility is GL Ledger Name.
Click Find and assign the PL to the Responsibility and Save it.
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Create User: To Create User Switch Responsibility to System Administrator
Navigation: Security User Define
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Define User Name and Password
Assign Responsibility to the User
Logout from the Operations User and
Login with the Username which has been created, Select the Responsibility and ENTER.
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Change Application Colour: Switch Responsibility to System Administrator
Navigation: Profile System
Select the USER for which Application Colour has to be changed
Select Profile Name: Java Color Scheme
Click FIND
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At User Select the Colour.
SAVE it
Switch Responsibility to see the change.
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Open Periods in General Ledger: Open the Periods for which Journals has to
be created
Period Status: The following are the Period Status
Open: Enter the Journal and Post
Close: Cannot enter the Journal (can Re-open)
Permanently Close: Cannot enter the Journal and cannot Re-open
Future Entry: Enter the Journal and cannot Post
Never Open: Default status for all the periods in the sub ledger
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Navigation: Setup Open/Close
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Click YES
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Click Open Period
Select Target Period and Click OPEN
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Journal Creation: We record day to day Business activity in a journal. Business
transactions we can maintain in General Ledger in the form of Journals.
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Journals are divided into two parts:
Headers: In Header Part we Mention the Name of the Journal, Period and Currency
etc
Lines: We select the Code Combination and the Amount for the specific Code
Combination.
While Creating the Journal the Debit line amount should be same as Credit line amount.
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Click on POST
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Create Menu :
We Create Menu’s to restrict the USER.
Switch Responsibility to System Administrator
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After Creating the Menu assign the Menu to Responsibility
Navigation: Security Responsibility Define
Search the Responsibility for which Menus has to be assigned
In Menu tab select the name of the Menu to be assigned to Responsibility.
Save it.
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Switch Responsibility for which Menu has been assigned.
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Security Rule: We can give privileges to the segment to allow user to retrieve
Segment Values.
Security Rule is
Applicable for the Specific Segment
Works at Responsibility Level
Can give Access Permissions
Cannot see the Segment Values
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To implement the Security Rule first UNFREEZE our Structure ( Freeze Flexfield
Definition)
Click OK.
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Click on Segment
Select the COMPANY Segment and Click on Value Set.
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For COMPANY Value Set select Security Type as Non-Hierarchical Security
Save it.
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Select the Company Segment and Click OPEN
Select Security Enabled Check Box which is in disable mode.
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Navigation: Setup Financials Flexfield Key Security Define
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Select
Application: General Ledger
Title: Accounting Flexfield
Structure: Select the Structure
Segment: Select the Segment for which SR rule should be implemented.
Click Find, At Security Rule, Enter the Name of the Security Rule
Description of the Security Rule
Error Message to be displayed
Security Rule Elements
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Include all the Segments give the Range
Exclude the Segments for which The Security Rule has to be applied
In the below Example we are giving access permissions to Company 1 only.
i.e we can only enter Journals for Company1. If we try to enter the Journals for Company
2,3&4. It should Display the error message.
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Click Assign
Assign the SR Rule to our Responsibility and Save it.
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Enter the Journals: Enter the Journals to Check whether the SR Rule is Applied for
the Company Segment of not.
In the below example
Line 1 we have selected a Code Combination with Company 1 Debit line
Line 2 we have selected a Company 2 which shows Error Message.
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i.e SR Rule is Applied for the Company 2,3 &4 Segments.
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We can Create Multiple SR’s.
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To see the Compilation Result Click ViewRequestsFind
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Above Screenshot shows the request is Pending
Below Screenshot shows the request is Completed
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Navigation: Setup Financials Flexfields Key Rules
Click Find
Select Application – Flexfield Title – Structure
Click OK
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In this Example
We are restricting the user for Department 2 & 3
If we try to access Department 2 & 3 it should show an error message
Include all the Segments by providing the Code Combinations
Exclude the Code Combinations for the specific Department
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Enter the Journals: When Creating the Code Combinations we can see the Segment
Values but when we try to access it should show error message.
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It shows Error Message when we try to access Department 2.
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Journal Approval: While entering the Journal amount it has to get approved before
posting it. Journal Approval can be set at User Level. We need to set approval limits to
user.
There are three levels to approve the Journal
Go Direct Option : Approval goes Directly to the approval person
One Stop Go Direct: It stops at one level and go direct
Go Up Management: It goes through all the levels for approval
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Go to Ledger Options
Click Next
Enable Journal Approval
Click Finish
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Set Employee Authorization Limit: Set how much Amount user can Approve.
Navigation: Setup Employees Limits
Select the PL, Currency, Employee and Authorization Limit and SAVE it.
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Assign Employee to User: Switch Responsibility to System Administrator
Navigation: Security User Define
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Assign Profile Option:
Go to System Administrator
Navigation: Profile System
Select the Responsibility
Select the Profile Name:
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Journal Approval Method:
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Enter the Journals:
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Short Hand Aliases: Give Short name for the Specific Code Combination so that
we can easily enter the Alias name for the Specific CC. Short Hand Aliases work at COA
Level.
Navigation: Setup Financials Flexfield Key Aliases
Search
Application: General Ledger
Flexfield Title:
Structure:
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Enable the Short hand
Enter Max Alias Size
Enter Prompt
Enter the Code Combination
Save and Compile the Structure
Enter the Journals
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Enter the Journals
Select the Alias for the Cash Account and Click OK
Enter the Amount
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If you don’t want to use the Short hand Aliases just leave it blank and click ok to select
the Code Combination
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Journal Reversal Method: Once the Journal is Posted we will not be able to
delete the Journal. We can Reverse the Journal.
Reversal Journals are of two types
Change Sign
Switch Dr/Cr
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Reversal Journal Will be created
Open the Reversal Journal in which we can see the Debit Line is switched to the Credit
Line.
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Journal Reversal (Change Sign)
To use Change Sign Reversal Method we have to assign it to our Responsibility
Switch Responsibility to System Administrator
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Open the Journal and Reverse the Journal using Change Sign Reversal Method
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Select Change Sign Save and Post the Journal
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The Journal will be Created with the Change Sign Reversal Method
Open the Journal and
Post it.
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Multiple Reporting Currency: Recording the transactions in our local currency
by using MRC we can report in foreign currency. In MRC we use PL and RL.
o Reporting can be Performed in the Transaction level
o Type of Reporting is Online
o Condition is when reporting Calendar and COA should be same for PL and RL.
Otherwise we cannot do Reporting.
o To over come this Limitation we use Secondary Ledger for Reporting
o When ever we post the transactions the ledgers will be updated.
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We create PL & RL at the same time or Assign RL to PL Later.
Navigation: SetupFinancialsAccounting Setup ManagerAccounting Setups
Search Primary Ledger
Click on Update Accounting Options
Click Update on Reporting Currencies Row
Click on Add Reporting Currency
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Enter the Mandatory Fields
Currency Conversion Level: Journal
Currency: CAD (Canadian Dollar)
Reporting Currency Name: Win_RL
Short Name: Win_RL
Select Default Rate Type: Daly
Click Apply
Click Complete
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Create Responsibility for RL:
Switch Responsibility to System Administrator
Navigation: Security Responsibility Define
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Assign RL to Responsibility:
Navigation: Profile System
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Create User and Assign Responsibility to User
Navigation: Security User Define
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Logout and Login to the Reporting Ledger User and Open the Periods.
Navigation: Setup Open/Close
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Set Conversion Rate:
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Enter the Journals
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A Journal will be created in Reporting Ledger
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Data Access Set: By using Data Access Set we can set Read only and Read &
Write permissions for the Balancing Segment Values.
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Assign Data Access Set to Our Responsibility:
Switch Responsibility to System Administrator
Navigation: Profile System
Select the Responsibility
Disable Site Level
Disable Profiles with No Values
Click Find
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GL: Data Access Set Select Data Access Set at Responsibility Level
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Enter the Journals:
Navigation: Journals Enter
We have set Permissions for Company 2 Segment as Read Only so when we select
Company 2 it is showing an error message.
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Recurring Journals: If any Periodic activity which is repeating every period is
called Recurring Journals
E.g. Rent, Telephone Bill, Electricity Bill
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Enter Batch
Enter Journal : Rent Recurring as an Example
Select Category and Currency
Click on Lines and Enter the Debit Line
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Place the Cursor at Line tab and click NEW
Enter the Credit Line as ( - ) Amount.
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Click Generate
Click Submit
Select Period
Click Submit
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Skeleton Recurring Journa
Navigation: JournalsDefineRecurring
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Enter the required fields and Click on Lines
Click Generate
Click Submit
Select the Period
Click Submit
Open the Journal
Enter the Amount and
Post the Journal.
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Enter Line 1 don’t enter the amount and Save it.
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Enter Line 2 don’t enter the amount and Save it
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Select the Period and Click Submit and Click OK.
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Open the Journal Enter the Amount and Post it.
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Formula Recurring Journal:
Create Depreciation Account as Expense Account and Plant Account as Asset Account
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Navigation: Journals Define Recurring
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Click on Lines, Enter Line 1,Use the formula Asset value*Depreciation/100.
Select Depreciation Expense Account
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Enter Line 2 as 9999 which is an OFFSET Code which is used to copy debit line
balances to Credit Line. Select Plant- Asset Account
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Click Generate
Select the Period
Click Submit
Click OK.
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Ensure that the Debit line is calculated and the amount is copied to the Credit line
Post the Journal
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Summary Accounts: If we have to find total expenditure or Accounts or to sum
Multiple Accounts or Balances we use Summary Accounts.
In the Following Example.
Create Segment Values Asset1,Asset2,Asset3 and Asset4.and
Create a Parent Account
Navigation: SetupFinancialsFlexfieldsKeyValues
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Enter the Journals:
Enter the Journals for all the Asset Accounts
Asset 1
Asset2
Asset3
Asset4
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Create Journals for Asset1
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Create Journal for Asset2
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Create the Journal for Asset3
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Create the Journal for Asset4
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Create a Parent Account:
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Create a Parent Account
Enable the Checkbox for Parent
Assign Segment Qualifiers as
Allow Budgeting: No
Allow Posting: No
Account Type: Asset
Third Party Control Account: No
Reconcile: No
Save it.
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Click on Define Child Ranges
Enter the Range of Account
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Create Rollup Group:
Navigation: SetupFinancialsFlexfieldsKeyGroups
Select the following Fields
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Navigation: SetupFinancialsFlexfieldsKeyValues
Click Find.
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Assign Rollup Group to the Parent and Save it.
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Create Summary Template:
Navigation: SetupAccountsSummary
Enter the Name
Select the Ledger Name
Select the Template and mention the Template Values
Select the Earliest Period
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Enquiry the Account:
Navigation: InquiryAccount
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Click Show Balances
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Definition Access Set: To set USE, VIEW and MODIFY for specific function or
definition.
Navigation: SetupFinancialsDefinition Access SetsDefine
Create Definition Access Set for the Definition Type: Accounting Calendar
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Define Definition Access Set:
Navigation: SetupFinancialsDefinition Access SetsDefine and Assign
Search for the Definition Access Set and Select the Definition Access Set
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Click Update
Click Apply
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Assign the Definition Access Set to Responsibility:
Navigation: SetupFinancialsDefinition Access SetsAssign
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Save it.
Assign the Definition Access Set: In the following Example we have selected Definition
Access Set for the Accounting Calendar.
Navigation: SetupFinancialsCalendar Accounting
Enable Check Box Enable Security.
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Click Assign Access
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Click OK
Open the Accounting Calendar which is updated that we cannot Modify we can only use
and Modify.
Navigation: SetupFinancialsCalendarAccounting
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Mass Allocation: Allocation of Amount for Various Objects based on Statistical
Information. We can allocate amount for Expense and Revenue. Can be done for
Statistical based calculation.
The Journal Created after creating Mass Allocation is Mass Allocation Journal
We create Mass Allocation for the Rent Calculation across Various Department.
Stat Currency:
Ensure that the STAT currency is Enabled
332
Navigation: SetupCurrencies Define
Search for Currencies and Enable it.
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Define a Square Feet Account:
Navigation: SetupFinancialsFlexfieldsKeyValues
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Create a STAT Journal:
Navigation: JournalsEnter
337
338
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Create a Parent Department: Create a Parent Department, Select the Qualifiers
Save it.
Click Define Child Ranges
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Define Child Ranges: Define Child Ranges for the Parent Department.
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Select the Range and Save it.
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Click on Formulas
Enter the Name
Select the Category: Allocation
Select Currency: INR
Enter the Cost Pool Amount.(A)
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B – Usage Factor – Enter the Account and type for Department we mention Looping
because we are finding the Rent for all the departments.
Select and Click OK.
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C – Total Usage: We sum all the Departments
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T- Target: To allocate the Balances
352
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O- Offset:
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Click OK
Save it
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Click Generate
Enter the Balancing Segmen Value
Select the Period
Click Submit
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Select the Error and Click View Output
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Budget: The allocation of amount for control of Expenses and planning for Revenue.
Budgets are of three types
Funding Budgets: Expense Budget
Planning Budgets: Funding Budget
Capital Budgets: Used for Fixed Assets
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Enable Budgetory Control at Accounting Setup:
Navigation: SetupFinancialsAccounting Setup ManagerAccounting Setup
Search the Primary Ledger
Click Update Accounting Options
Click Update
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Click Next
Click Next
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Enable – Enable Budgetary Control
Select the Code Combination to Reserve for Encumbrance Account.
Click Next
Click Finish
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Open the Encumbrance Year.
Define Budget:
Navigation: BudgetsDefineBudget
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Click Open Next Year
374
Click Yes
Click OK
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Define or Create Budget Organisation:
Navigation: Budgets Define Organization
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Enter the Organization Name
Enter the Sequence
Click OK
Set the Password and Click OK
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Click on Ranges
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Enter Line-1
Enter Accounts Low and High Select Mis.Expense Account
Click OK
Click Range Assignments
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Select the Account
Click on Budgetary Control
385
Amount Types: Amount Types are of following
PTD: Period to date
QTD: Quarter to date
YTD: Year to date
PJTD: Project to date
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Create Budget Journals:
Navigation: BudgetEnterJournals
Select Periods
Select the Budget Organization
Enter the Password
Click OK
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Select the Account
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Click Budget Rules
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Select the Rule
Enter the Amount
Click Ok
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The Budget Amount is Divided Evenly for all the Periods
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Click on Create Journals
398
Click Check Funds
399
Click Reserve Funds
400
Click OK
401
Click Done
402
Open the Journals: Budget Journals are automatically Created
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Post all the Budget Journals
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Define Budgetary Control Group:
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Enter the Override Amount
Save it
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Click Find
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Save it and Exit
AutoPost Journals
Posting the Journals according to the Criteria Set provided.
Navigation: Setup Journal AutoPost
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Save it
Click Schedule
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Select how do you like to Run the Job
Click OK
If you Select
As Soon as Possible. It Runs the job as soon as Journal is created
Once: Runs the job Once in a specific date and time.
Periodically: Runs as specific Period.
On Specific Days: Runs the on specific days
418
The Request has been submitted.
Enter the Journals and the Posting the Journals will be performed according to the
Criteria Set Provided.
419
Financial Statement Generator (FSG)
Financial Statement Generator is used to generate reports without writing any code. We
can prepare Income Statement, Trial Balance and Fund Flow Statement.
420
E.g. Creation of Income Statement: In our Exercise we are creating an Income
Statement to calculate the income statement we have to find the Total Revenue and Total
Expenditure. To Calculate Net Income the formula we use is
(Net Income = Total Revenue – Total Expenditure).
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Click Find
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Create Segment values Sales, Rent Received, Interest Received for Revenue
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Create Salaries, Freight, Wages Segment Values as Expense.
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Enter the Journals for Expense Segment Values
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In our Exercise The Report should look and feel as below
Revenues
Sales 150000
Rent Received 20000
Interest Received 10000
438
Total Revenue (A) 190000
Expenses
Salaries 50000
Freight 10000
Wages 10000
439
Net Income (A-B) 110000
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Click Define Rows
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Enter the second row Sales and Click on Account Assignments.
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Enter the next row Rent Received and Assign the Account
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Enter the next row Interest Received and assign the Amount
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?PO9B
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Enter the next row Total Revenue(A)
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Click Calculations to calculate Total Revenue(A)
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Enter the next row Expenses
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Enter the next row Salaries
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Assign the Account by clicking Account Assignments
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Enter the Next row Freight
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Assign the Account by clicking Account Assignments
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Enter the row Wages and assign the account
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Enter the row Total Expense(B)
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Click Calculations to calculate the sum of all the expenses
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Enter Row Net Income (A-B)
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Click Calculations to find out the value of Net Income
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Define Column Set
Navigation: Reports Define Column Set
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Click Define Column
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Save it
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Run the Report
Navigation: Reports Requests Financials
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Select Individual Reports
Click OK
Select the Report to run and Click Submit
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View the Requests
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Click View Output
494
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Ledger Set
Collection of ledgers or grouping of multiple ledgers is called Ledger Set.
Condition: The condition when grouping the Ledgers into ledger Set is Calendar and
COA should be same in all the Ledgers. Otherwise we cannot group the ledgers.
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Assign Ledger Set to Responsibility
Switch Responsibility to System Administrator
Navigation: Profile System
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501
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Open the Period at Ledger Set Level
View Requests
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Search Open Period Name and Enter the Parameters
Click OK
Click Submit
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Click Yes
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In the Requests window we can view that the Periods open automatically for all the
Ledgers.
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We can see March Period is opened in Secondary Ledger as well.
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Close the Period at the Ledger Set Level
Click Submit a new Request
Select Single Request
Click OK
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519
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Search Open Period Name and Enter the Parameters
Click OK
Click Submit
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We can see the requests are closing the Periods
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We can see the March Period is closed in our Primary Ledger
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We can see the March Period is closed in our Reporting Ledger.
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Can Set Data Access Permissions for Multiple Ledgers
We can Set Data Access Set to Multiple Ledgers through Ledger Set.
In the below Scenario we have to select the Ledger Set name instead of individual
Ledgers.
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Can enter the Journals for Multiple Ledgers
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We can select the Ledger for which journal has to be entered
534
Sequential Numbering
Sequential Numbering are used to set automatic numbering when importing the data from
Sub ledger to General Ledger.
We can set Sequential Numbering at Ledger Level for specific categories.
There are two types of Sequential Numbering
Accounting Sequence: When the Journals are posted, a unique number is
generated and assigned to the Journal is called Accounting Sequence.
Reporting Sequence: When we Close the Periods in the Ledger for all the Posted
Journals a unique number is generated and assigned is called Reporting Sequence.
535
Accounting Sequence
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Select Sequencing Entity as Posting – GL Journal Entry
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Click Create and Click Assign Sequences
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Click Add Assignment
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Enter the Sequence Name and Click on Create Sequence
Enter the Mandatory Fields.
Enter Initial Number and Click Apply
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Enter the Start Date and Click Apply
Close the Window
Enter the Journals
547
Enter the Journals to verify the Accounting Sequence
Navigation: Journals Enter
Before Posting the journal
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After Posting the journal
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Reporting Sequence:
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Select Sequencing Entity as GL Period Close – GL Journal Entry
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Click Create
Click Assign Sequence
Click Create Sequence
556
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Enter the Mandatory Fields
Enter the Initial Number to start the Sequence
Click Apply 3 times
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Close the Window and
Flex fields
Flex fields are of two types in Oracle Applications
Key Flex field (KFF)
Descriptive Flex field (DFF)
561
Key Flex field: To Capture Mandatory Information of an Organization we use Key Flex
field. With the help of Segments we capture Information in KFF.
Descriptive Flex Field: To Capture Additional Information of an organization we use
Descriptive Flex Field. With the help of attributes we capture Information in DFF.
In our Exercise we will be Creating a DFF for Accounting Calender which shows Created
By: Name.
Create Segments
Navigation: Setup Financials Flex fields Descriptive Segments
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Search for the Application and title.
Enter the Context Field Values and Click on Segments
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564
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Click Value Set and
Create Value Set
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Assign Value set to the Segment
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Enable the Required Dialog Box
Freeze Flexfield Definition and
Compile
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Enter the Segment Values
Navigation: Setup Financials Flex fields Descriptive Values
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574
Click Find
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Open the Accounting Calendar
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578
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Creation of Suspense Journal
If the Debit line amount is not equal to the Credit line that account is treated as a
Suspense Account and the Journal Created with suspense account is called Suspense
Journal.
We need to create a suspense account
581
Creation of Suspense Account
Navigation: Setup Financials Flex fields Key Values
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Enter the Account Select the Account type as Liability
Save it
584
Assign Suspense Account at Ledger Level
Navigation: Setup Financials Account Setup Manager Accounting Setups
Query our primary ledger
Click on update of Primary Ledger
Click on Ledger Options, Enter the Suspense Account
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Enter the Suspense Account
Click Finish
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Enter the Journals with different amount at Debit and Credit.
A Suspense Line is added by the system automatically to balance the transactions.
The Journal created is called Suspense Journal.
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Alternative Account
When importing the data from Sub ledger to General ledger. If we want to change any
account Value.
When we are converting transaction information to journal information if we want to
override any account information the alternate account is used.
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When ever a transaction is entered against that particular account, an alternative account
is used.
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Intra Company
Within the Organization if a business transaction that takes place between the branches
within the Legal Entity that kind of a transaction is called intra company transactions.
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Click Find and enter the Accounts
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At Ledger level we need to Enable (Enable Intra Company Balancing)
Navigation: Setup Financials Accounting Setup Manager Accounting Setups
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601
Click Update at Ledger Level
Enable Enable Intra company Balancing
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603
Click Next
Click Next
Click Finish
604
Click update on Intra company Balancing Rules
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Click Define Rules at our Legal Entity Name
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Click Create Rule
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Enter the Source and Category
Enter Debit BSV, Credit BSV, Debit Account and Credit Account
Select Options tab
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Enter Default Balancing Segment Value
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Click Apply
Click Done
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Enter Intra Company Journal
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Auto Reversal
Automatically reverse the journal by using Reversal Methods Switch Dr/Cr and Change
Sign by creating Criteria Set.
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At ledger level we need to assign Journal Reversal Criteria Set.
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Run the Program – Automatic Reversal
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Enter the Journals for that category it will automatically Reverse the Journal.
627
Multiple Organization Structure
In order to use multiple business units, accommodating differing requirements for
functional currencies, accounting structures and security, whilst at the same time ensuring
a central core design Oracle provides functionality know as “ Multiple Organizations” in
short is called “Multi-Org”.
628
This allows different business units to have their own view of the applications in
particular for the financials AP (Payables), AR(Receivables), FA (Fixed Assets),
CM(Cash Management), and INV(Inventory).Collection of different Modules to a single
Instance. Collection of Business Groups, Primary Ledger, Legal entity, Operating Units
and Inventory Organization is classified as Multiple Organization Structure.
Business Groups
629
Primary Ledger
Legal Entity
Operating Unit
Inventory Organization
630
Some Features of Multi-Org
Allows multiple sets of books and multiple legal entities to be configured and to
operate in the same instance
Provides support for data security between business units within a single
applications installation
Permits users to sell and ship products from different legal entities (in different
sets of books) with automatic intercompany accounting.
Supports internal requisitions and purchasing/receiving products from different
inventory organizations (within the same set of books).
631
Enables and enterprise to be housed in one database instance of Oracle, spanning
multiple countries, currenciesm and legal entities without a reduction in response
times (architecture-related).
Multiple Organizations Reporting enhances the reporting capabilities of Oracle
Applications products by allowing you to report at the set of books level Legal
entity level and Operating unit level.
632
Business Groups: In Business Group level we maintain all the HRMS and Payroll
Applications which are related to Employees. It is nothing but Employee related Entity.
Primary Ledger: Primary Ledger is used to record day to day business transactions. We
maintain General Ledger (GL) and Fixed Assets (FA) information.
Legal Entity: Legal Entity is a company registration document. As it’s a registration
document of the company we don’t maintain any modules.
Operating Unit: Operating Unit is the place where actual business takes place. We can
map AP, AP, OM, PO, and CM Modules.
633
Inventory Organization: Inventory Organization is a ware house where the materials or
items are stored. The modules which we use are Inventory, WIP and BOM.
WIP: Work in Progress: In manufacturing company to find out which stage we are in we
maintain in WIP.
BOM: Bill of Material: In manufacturing company Raw material purchase related
expense we maintain in BOM.
We can generate financial reports at Operating unit Level.
634
Steps involved in creating Multi-Org Structure
1. Create the Responsibilities for all the modules (AP, AR, GL, OM, PO, INV, HR,
FA, and CM) by using Menu names and request groups.
2. Assign HR User to all the Responsibilities by using Profile option HR: User type.
3. Create a USER and assign all the Responsibilities to USER.
4. Define Location
5. Define Business Group and enter Business Group Classification.
6. Assign Business Group to all the Responsibilities by using Profile Options HR:
Business Group and HR: Security Profile.
635
7. Create Primary ledger and Legal entity and assign Legal Entity to Ledger. Enter
Retained Earnings account and Assign Balancing Segment Values.
8. Create Legal Entity Definition
9. Assign Primary Ledger to all the Responsibilities.
10. Create Operating Unit
11. Assign Operating Unit to all the Responsibilities by using Profile Options MO:
Operating Unit and MO: Security Profile.
12. Create Master Inventory
13. Run a program “ Replicate Seed Data”
636
14. Switch to AP Responsibility and go to financial options in Human Resource tab if
we can see our newly created Business Group that means that our Multi-Org
which we have created successfully.
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Create Accounts Payables (AP) Responsibility
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Create Responsibility for Accounts Receivables (AR)
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Create Responsibility for Cash Management (CM)
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Create Responsibility for Fixed Assets (FA)
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Create Responsibility for Human Resources (HR)
647
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Create Responsibility for Inventory (INV)
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Create Responsibility for Purchase Order (PO)
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Create Responsibility for Order Management (OM)
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654
Assign HR User to all the Responsibilities by using Profile name HR:
User Type
Navigation: Profile System
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Assign HR User to AP Responsibility
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Assign HR User to AR Responsibility
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660
Assign HR User to CM Responsibility
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662
Assign HR User to FA Responsibility
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Assign HR User to GL Responsibility
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Assign HR User to HRMS Responsibility
667
668
Assign HR User to INV Responsibility
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Assign HR User to OM Responsibility
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Assign HR User to OM Responsibility
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Create a USER and Assign Responsibilities to USER
Navigation: Security User Define
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Logout from the current user and Login with the Created USER.
Define Location
Switch to HRMS Responsibility
Navigation: Work Structures Define Location
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Select the Address Style and fill all the mandatory fields
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680
Click OK
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Define Business Group (BG)
Navigation: Work Structures Organizations Description
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684
As we are creating a New BG. Click on New (A).
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Enter the Name of the BG
Select the Location and Save it.
Under Organization Classifications Select Business Group
Enable the Business Group
Save it
Click on Others
Select Business Group Info Click OK
687
Click on Business Group Info which opens up the form fill all the fields
688
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690
Click OK
Save it
692
693
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Assign HR: Security Profile and HR: Business Group to all the responsibilities
** If you assign HR: Security Profile to the Responsibility System automatically adds
HR: Business Group to the Responsibility **
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Select the Name, COA, Accounting Calendar, Currency and Sub ledger Accounting
Method
Click NEXT
Click FINISH
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700
Click Update and enter the Retained Earning Account
Create Legal Entity and Assign Legal Entity to Ledger
Assign Balancing Segment Values
701
702
Create Legal Entity Definition
Navigation: Work Structures Organizations Description
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704
Enter the Name
Select the Location and Save it
In Organization Classifications
Select GRE/ Legal Entity Enable it
Click on Others
Select Legal Entity Accounting
Click OK
Save it
705
Assign Primary Ledger to all the Responsibilities
Navigation: Profile System
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**Assign Primary Ledger to all the Responsibilities by using Profile GL Ledger Name**
708
Create Operating Unit
Switch to Inventory Responsibility
Navigation: Setup Organization Organization
709
710
Click New
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Enter the name of the Operating Unit
Select the location and Save it
Select the Operating Unit Enable it and Save it
Click on Others and Select Operating Unit Information
Click OK
713
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Select the PL
Select the Legal Entity and the
OU Short Code
Click OK
717
Assign Operating Unit to all the Responsibilities
Go to System Administrator
Navigation: Profile System
718
719
Click Find
** Assign Business Group to All the Responsibilities by Profile: MO: Security Profile**
720
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722
Click Find
By Using MO: Operating Unit Profile Option we can Assign Operating Unit to
Responsibility
** Assign Operating Unit to all the Responsibilities by Profile Option MO: Operating
Unit **
723
724
Create Master Inventory
Switch to HRMS Responsibility
Navigation: Work Structures Organization Description
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Click New
Enter the Name of Master Inventory
Select the Location and Save it
Enter the Inventory Organization Enable it and Save it
Click Others and select Accounting Information
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Enter the PL and LE and OU Fields and Click OK
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Run a Program Replicate Seed Data
Switch to System Administrator
View Requests Submit a new Request Single Request
Select the Replicate Seed Data and Enter the OU.
731
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Click OK and Submit
733
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Check our newly Multi-Org Structure created successfully
Switch to AP Responsibility
Navigation: Setup Options Financial Options
735
736
In Human Resources tab if we can see our newly created Business Group then our Multi-
Org is created successfully.
737
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Enter the Name of the Work Day Calendar
Select the Quarterly Type i.e. Calendar Months
Enter the Calendar Date Range
Click Workday Pattern
739
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Enter the Working and Non-Working Days
Save and Close
Click on Shifts
741
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Enter the Shits
Save and enter the Times
743
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Click Dates and Select Day ON and Day OFF.
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Options in P2P Cycle
Options: Options will control the functionality of the Application. Based on these
options the application works. We can set permissions and Restrictions through these
options.
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Select Inventory Information
752
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Goto Costing Information TAB and Enter Material Account
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Goto Next TAB Revision Lot Serial and LPN
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Click More at top Right hand side corner Select Other Accounts and enter the accounts.
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Save and Close
761
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Click Others
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Click Receiving Information
Enter the Fields
Receipt Days Early
Receipt Days Late
Receipt Days Exceed Action
Over Receipt Tolerance
Next Receipt Number and
Enter the Receiving Inventory Account and Clearing Account
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Enter Financial Options to Master Inventory
Switch to AP Responsibility
Navigation: Setup Options Financial Options
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768
Enter the Liability, Prepayment, Discount Taken Accounts
Click on Supplier – Purchasing TAB
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Select Inventory Organization as Master Inventory
Save and Close
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Enter Expense AP Accrual Account
Enter Document Numbering If Required
RFQ Number
Quotation Number
PO Number
Requisition Number
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Enter the Name of the Actual Inventory
Select the Location Save it
Select Inventory Organization Save it and Click Others
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Set Accounting Information
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Select PL, LE and OU Click Others and Select Inventory Information
781
Set Inventory Information OR Inventory Options
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Select the Costing Information TAB
Enter Material Account
784
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Select Revision, Lot, Serial and LPN
Enter Starting Revision
Enter Starting Serial Number
786
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Select More options at Top Right hand side corner
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Set Receiving Information OR Receiving Options
Select Receiving Information in Others TAB
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Enter
Receipt Days Early
Receipt Days Late
Over Receipt Tolerance
Next Receipt Number
Enter Accounts
Receiving Inventory Account and
Clearing Account
794
Set Financial Options
Switch to PO Responsibility
Navigation: Setup Organizations Financial Options
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Select Supplier – Purchasing TAB
Select Inventory Organization as our Actual Inventory
Create Item
Switch to INV Responsibility
Navigation: Items Master Items
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Select the Master Inventory
* We create Items in Master Inventory which can be shared across the Sub Inventories *
799
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Enter the Item and save it
Set Item Attributes for Finished goods for this Item
Select the Item GOTO Tools Copy From
801
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803
Select the Template for Finished Good
Click Done and OK
Save it
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805
Create Job
Switch to HRMS Responsibility
Navigation: Work Structures Job Description
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807
Click New
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Job Group is generated by the system automatically
Place the cursor which opens the new window
Enter the Job Code
Enter Job Name
Click OK
Create Position
Navigation: Work structures Position Description
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811
Place the cursor in Name tab which opens Position flex field window.
Enter Position Number and Position Name.Click OK
If you want to assign Position to BG we have to classify BG as HR Organization
Assign Position to BG
Navigation: Work Structures Organizations Description
Search our Business Group
812
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Create Employee
Before Creating Employee Change Menu name of HRMS Responsibility to US HRMS
Navigator.
815
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Navigation: People Enter & Maintain
817
818
Click New
819
820
Click on Assignment
Enter Job and Position and Save it
821
822
Assign Employee to User
Switch to System Administrator
Navigation: Security User Define
823
824
Create a Buyer
Switch to PO Responsibility
Navigation: Setup Personnel Buyers
As we are creating a new Buyer Click Add Buyer
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826
Select the Employee Name which has to assign as a Buyer and Click Save
i.e. we have created our employee as Buyer
827
828
Set Approval Limits for the Buyer
Navigation: Setup Approvals Approval Groups
829
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**We have created an Approval Limit. If you have to implement this at Position level **
Switch to PO Responsibility
Navigation: Setup Organizations Financial Options
Under Human Resource TAB Enable Use Approval Hierarchies
831
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Define Approval Assignments
Navigation: Setup Approvals Approval Assignments
Select the Position and Job
Select the Document Type
Assign the Approval Group to the Employee
We are Assigning at Position Level
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834
Purchase Order
If we request items or goods from the supplier or purchasing the goods from the supplier
or ordering goods from supplier is called Purchase Order.
Standard Purchase Order: We use this purchase order for one time purchases.
835
Planned Purchase Order: Similar to Standard PO and used for future usage. We
don’t find shipment schedule in Planned PO.
Blanked Purchase Agreement: Contract with the supplier for certain period and
with certain amount for certain product items.
Contract Purchase Agreement: we will be having agreement with the supplier
for certain period and certain amount but items are not fixed.
Requisitions
Request of goods from all the sources is called Requisition
836
Requisitions are classified into two categories
Purchase Requisition: Purchasing of goods for suppliers is called Purchase
Requisition
Internal Requisition: Purchasing of goods through internal sources is called
Internal Requisition.
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Select the Inventory , Click Change Status, Open the Period, Click OK.
839
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Open Periods in PO
Navigation: SetupFinancialsAccountingControl Purchasing Periods
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Open the Period and Save it.
Open Periods in GL
We can Open and Close Periods in GL from PO Responsibility
Navigation: Setup FinancialsAccountingOpen and Close Periods
843
844
Click Find and Enter the Target Period
845
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Raise Requisition
Switch to PO Responsibility
Navigation: Requisitions Requisitions
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848
Enter the Requisition Number
At the Lines tab
Select the serial number, Type of goods
Select the Item Quantity and Price
Select the Source as Supplier
Select the Organization
Select Location
Click Distributions
849
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Enter the Charge Account
Save and Close
Now we have to approve the Requisition
Click Approve
Click OK
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Save the Changes
853
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Enter the Requisition Number and Click Find
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Accounts Payables
Supplier Information
In Accounts Payables Supplier Information is divided into two parts
Header
Site
857
Supplier has multiple sites based on purpose. Supplier Header is Global can be shared
across the Operating Units. Supplier has RFQ site, PO site and Pay site. When recording
the invoice from supplier at least one Pay site is mandatory.
Supplier Header information is Global can be shared across the Operating Unit.
If we create any site we can use in specific OU only. Site information is Local.
Supplier data will be called as Master data.
Invoices
To record invoice the basic information required is
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Invoice type
Supplier Information
Invoice Amount
Due Date Related Information
Purchase Details
Payment Method
Type of payment
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Types of Invoices
Standard Invoice: The invoice received from the supplier against the goods
received is called Standard Invoice. It is a +ve balance. We can match invoice
with PO and Receipt.
Debit Memo: To reduce supplier liability the invoice raised against the purchase
returns is called Debit Memo Invoice. This is raised by the customer. It’s a –ve
balance. We can match Debit Memo Invoice with standard Invoice
Credit Memo: To reduce supplier liability the invoice raised against the discount
received after the purchases is called Credit Memo Invoice. This is raised by the
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supplier. It’s a –ve balance. We can match Credit Memo Invoice with standard
invoice.
Mixed Invoice: We use positive and negative balances by using Mixed Invoice.
Mixed invoice is the mixture of Standard Invoice, Debit Memo and Credit Memo.
We can match Mixed Invoice with PO, Receipt and Invoice.
Prepayment: Advance payment given to the supplier or employee. There are two
types of prepayment.
o Temporary Prepayment: If we utilize the advance payment for our future
purchase is called temporary prepayment
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o Permanent Prepayment: If we cannot use the advance payment for the
future purchase is called temporary prepayment
Expense Report Invoice: When employee spends some amount and all the
invoices are re-reimbursed the invoice for payment is called Expense Report
Invoice.
Recurring Invoice: The periodic activity which is recorded every period, or the
invoice recorder every period. The recurring invoices are available in AP. We use
Special Calendar. The accounting calendar doesn’t support criteria of \Recurring
Invoices.
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Retainage release: Releasing the holding amount of all the periods. The invoice
we record is called Retainage Release Invoice.
With Holding Tax: Instead of paying the Invoice amount to the supplier we hold
certain amount to pay tax authority. The invoice raised against the amount is
called withholding tax Invoice.
Transportation Invoice: The invoice received from transportation management
with respect to transportation charges.
Interest Invoice: If we pay the invoice amount as a late payment. Interest
calculated accordingly against the late payment is called Interest invoice.
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The invoices created by the system automatically are Recurring Invoice, Expense
Report Invoice, With Holding Tax Invoice, Interest Invoice and Transportation
Invoice. Rest of all the invoices are created manually.
Invoice Amount
When entering the invoice amount we record in Lines. Lines are again distributed to
distribution lines.
Then Hierarchy of Invoice Amount is Header Amount, Lines and Distribution Lines.
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Distributing the amount to according the lines is called distribution set. These are
classified into two types
Standard Distribution Set: Specifying the percentages against the account
automatically is called standard distribution set
Skeleton Distribution Set: Not specifying the percentages against the account manually
entering the percentages is called skeleton distribution set.
Ways to do Distribution sets are Manual and Automatic.
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Due Date
We can find due date for the invoice by using payment terms. By using payment terms we
can determine due date and discount details. We can set discount at 3 levels of payment
terms.
Payment Methods
The standard payment methods are as follows
o Cheque
o EFT
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o Wire
o Clearing
Types of banks
The minimum requirement to process payment is Name of the Bank, Branch name, Bank
Account. Bank accounts are of following
Internal Bank: This is our company’s bank account
Supplier Bank: This is Supplier’s bank details maintained in our system.
Customer Bank: This is Customer’s bank details maintained in our system.
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Types of Payment
Manual: Issuing the payment our side of the system. Manually issuing the cheque and
recording in the system later.
Quick: Issuing the cheque printing the cheque through the system by using pre printed
stationary.
Refund Payment: If we receive refund amount from the supplier after prepayment.
AP/AR/ Netting:
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Data Flow in AP
Financial Options
Payable Options
Supplier Header
Supplier Site
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Invoice (Header, Site and Distribution)
Payment
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Create Supplier
We can Create Supplier in PO & AP Responsibilities. Major source of creating supplier is
PO Responsibility.
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Switch to PO Responsibility
Navigation: Supplier Base Suppliers
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Select the Supplier type. If the Supplier is outside of our organization then select
Standard Supplier.
If an Internal Employee is one of our Supplier then select the Inter Employees
Enter the Organization Name and Details of supplier click Apply
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Click on Address Book Hyperlink at Left hand side
Click Create
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Enter the Country
Enable the purpose of this address as Purchasing or Payment or RFQ
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Click Continue
Enable the Site Name to Operating Unit
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Click Apply
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Click Invoice Management Hyperlink on the Left hand side
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Click Payment Details Hyperlink to your left hand side and Enable the payment method.
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Click on Purchasing Hyperlink and enter ship to and bill to location and save it
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Click on Accounting Hyperlink and Save it
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Create Purchase Order using Requisition
Switch to PO Responsibility
Navigation: Auto Create
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Change the buyer name to the Preparer name.
Click Find
Select the Requisition Number and Click Automatic
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Select the Supplier click Create
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Click Approve
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You can see the Purchase Order
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Create a Purchase Order without Raising Requisition
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Select the Supplier
Select the items need to be ordered
Save it and Click Approve
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Click Ok
Click Shipments
Enter the Ship-To and Need-By Details
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Click Distributions
Check the Deliver-To and mention the Location if required
Save and Exit
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Check the Purchase Order
Navigation: Purchase Order Purchase Order Summary
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Record the Receipt
When we receive the goods to staging area we record the receipt. This receipt consists of
quantity of the goods received.
Navigation: Receiving Receipt
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Select the Inventory Click OK
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Select the Purchase Order which has been received and Click Find
Save it
Enter the Quantity of the Items which has been received
Select Sub inventory.
Save and Close
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Create Sub Inventory
Once we receive the goods the goods are stored in Sub Inventory no in Actual Inventory.
Navigation: Setup Organizations Sub inventories
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Select the Actual Inventory
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Enter the Sub inventory Name and Click NEW
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Click on Accounts and enter the Accounts
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Select the Sub inventory OK and Click Find
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We can see the Hierarchy that the goods received in our sub inventory.
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In AP we have two work benches
Invoice Work Bench: is the place where we create and maintain the invoice related
information.
Payment Work Bench: is the place where we can process the payment and maintain
payment related information.
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Open Periods in AP
Navigation: Accounting Control Payables Periods
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Creation of Standard Invoice
Navigation: Invoices Entry Invoices
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Against the Operating Unit Press TAB and
Enter the Following
Type of the Invoice
Trading Partner: Select the Supplier
Supplier Num: System automatically selects the supplier number which is mentioned
when creating a supplier.
Supplier Site: System selects automatically
Invoice Date, Invoice Num, Invoice Amount, Payment Curr, Terms Date, Terms and
Payment Method.
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Click on Lines
Enter the Amount and
Click on Distributions
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Click All Distributions to see all the distributions
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The Status of the Invoice is Never Validated
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Save it, Query the Invoice, Select the Invoice, Click on Actions
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Before Validating the Status of the Invoice is Never Validated
Enable Validate and Click OK
After Validating the status of the Invoice is validated
The status of the Invoice for Accounted is No
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Click Actions
Enable Create Accounting Select Draft, Final or Final Post. Click OK.
If you select
Draft: The system will be creating sample accounting entries which can be updated in
the system.
Final: The system will be creating actual accounting entries transferred to GL in an Un
posted mode.
Final Post: The system will be creating actual accounting entries transferred to GL and
posted.
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Click OK
The status of Accounted is YES.
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Create Distribution Set
Full Distribution Set
Navigation: Setup Invoice Distribution Set
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Enter the Name and enter the Percentages against the account.
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Don’t enter any amount enter ‘0’Percentage against the account.
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Enter the Percentage and the days. i.e. 30 days.
Enter the first discount if you pay the amount in 10 days you will get 10% Discount
Enter the Second discount if you pay the amount in 15 days you will get 15% Discount
Enter the Third discount if you pay the amount in 20 days you will get 20% Discount
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Enter the Invoice with Distribution Set and Payment terms
Navigation: Invoices Entry Invoices
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Press TAB to see all the fields
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Enter Trading Partner name, Site, Invoice Date, Invoice Amount
Enter Distribution Set and
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Enter Payment Terms
Click Lines
The Distributions Set mentioned at Header level is carried out at Lines level as well.
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Click All Distributions
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It shows all the distributions
Validate the Invoice and
Create Accounting for the invoice
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Click Invoice Management TAB
Click Terms and
Select the Terms of Payment at Site level. Enter the Invoice to see the changes
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Enter the Invoice with PO or Receipt
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Select the PO Number and Scroll to enter all the fields
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Select the Distribution Set and Match Action with Purchase Order, Receipt or Invoice.
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Click on Lines
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Validate the Invoice and Create Accounting
** When we are creating invoice by using PO and Receipt the Distribution Sets and
Payment Terms are Copied from PO **
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Hold the Payment for the Invoice
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Click Scheduled Payments and Enable HOLD to hold the Scheduled payment
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Select the Type as Debit Memo, Select Trading Partner, Site, Invoice Number and Date.
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Enter the Invoice Amount. When you entering the Amount which is always –ve value.
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If you match Debit Memo with Invoice we don’t take Distribution Sets.
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When you create Debit Memo the Payment Terms should be Immediate
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Once you finish entering the Header part of the Invoice
Click on Corrections
***Note: Donot enter the Lines for Debit Memo, just click Corrections***
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Enter the Invoice Num
Click Find
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Click Correct
Click OK
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Click OK
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The
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Make a Payment
Create Bank and Branch
Navigation: Setup Payment Bank and Bank Branches
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Click Banks
Click Create
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Enter Country
Enter Bank Name
Click Save and Next, Enter Bank Address and Bank Contact, Click on Finish
Click Creae Branch against the Bank Name or
Click Bank Branches at the top
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Click Continue
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Enter the Branch Name
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If required enter the Branch Address and Branch Contact by clicking Save and Next
Click Finish
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We have created Bank Name and Branch Name
We have to create Bank Account for the Bank and Branch.
We can Create Bank Account by clicking Create Account.
Before Creating Bank Account we need to set permissions to create our Legal Entity as
Bank Owner.
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Login
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Click on User Management TAB
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Select Roles & Role Inheritance
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Search for our AP Responsibility and Click GO
Click Update against our AP Responsibility
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Click Security Wizards
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Click Save and Proceed
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Against CE UMX Security Wizard Click on Run Wizard
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Click Apply
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Click Apply
Logout of sysadmin user and login to our user
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Create Bank Account
Navigation: Setup Payment Bank Accounts
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Click Create
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Select Country Bank Name and Branch Name.
Click Continue
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Select our Legal Entity as a Bank Account Owner
Account use
Enable Payables and Receivables
Click Next
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Enter the Cash Account
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Click Add Organization Access
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Click Continue
Click Apply
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Click Finish
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Bank Account Created Successfully
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Search our Account Name
Select our Account Name
Click Manage Payment Documents TAB
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Click Create
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Click Apply
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Define Payment Process Profile
Navigation: Setup Payment Payment Administrator
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Against Payment Process Profiles Click Go to Task
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Click Create
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Click Apply
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Search our Payment Process Profile
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Click Update
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Under Usage Rule TAB Select Payment Methods, Internal Bank Accounts First Party
Organizations and Currencies
Click Apply
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Search Invoice for which payment should be issued
In the below Invoice Amount Paid is INR: 0.00
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Click Actions
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Click OK
It is transferred to Payment Workbench
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Select the Payment Date, Bank Account and Payment Method
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Enter the Payment Process Profile and
Select the Payment Document and
Document Num will be generated automatically
Save it
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Query the invoice the status of the Amount Paid is shown in INR: 3000 (For Example)
Click on 4.View Payment to view the detailed payment.
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Search the Invoice for which partial payment has to be issued
Click 5. Scheduled Payment
Change the Gross Amount
And Click Split Schedule (G) which split the amount
Change the Due Date to the date of Payment
i.e. If we are paying it today Enter today date.
Click PAY…1
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Click OK
It navigates to Payment Work Bench
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Enter the Payment Date, Bank Account and Payment Method
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Enter Payment Document and Payment Process Profile
Save it,
Click Payment Overview
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In our Example our full payment is 20000; we have issued partial payment of 10000.
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Query the Invoice
Click 4.View Payments
Partial payment has been paid to the supplier
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Issue Payment through Payment Work Bench
Navigation: Payment Entry Payments
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Select Trading Partner, Supplier Number and Supplier Site will be taken by system
automatically.
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Select Payment Date, Bank Account and Payment Method
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Select Payment Process Profile and Payment Document
Click Enter/Adjust Invoices
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Select the Invoice Number and Save it
At top Right hand side corner we can see the Payment Amount
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Issuing Payment considering Debit Memo
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Select the Trading Partner, Supplier Site
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Enter Payment Date, Bank Account and Payment Method
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Enter Payment Process Profile, Payment Document and Document Num which is
automatically created.
Click Enter/Adjust Invoices
Select the Invoices and
Select Debit memo
Save it
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The amount has been deducted from the original Invoice amount and
The payment is issued
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To see Accounting Entries for the Invoice
Query the Invoice, Select the Invoice
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Select Reports View Accounting
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Define Prepayment
Navigation: Invoices Entry Invoices
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Select Type as Prepayment, Trading Partner and Invoice Date and Number
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Enter Invoice Amount, Terms as Immediate
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Click on Lines and enter the Amount
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Click Distributions
**For Prepayment Distribution Set is not required**
** For Prepayment Dr and Cr Lines are taken Supplier Site and Payment terms should be
Immediate**
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Click Actions and Enable Validate and Click OK
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Click Actions
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Select Create Accounting Enable Final
Click Actions and Enable Pay in Full and Click OK
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The Prepayment invoice is transferred to Payment Workbench
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Enter the Payment Date, Bank Account and Payment Method and Payment Document
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Enter Document Num and Payment Process Profile
Save it
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After you save it payment has been issued to the supplier
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Click on Payment Overview
Re- Query our Prepayment Invoice
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Create an Invoice against the prepayment
Navigation: Invoices Entry Invoices
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Enter the Standard Invoice, Select Trading Partner and Invoice Num,
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Enter the Invoice Amount
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Enter Terms and Payment Method
Click Lines
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Click Distributions
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Save it
Click Actions and Validate the Invoice
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Click Ok
Click Actions and Enable Create Accounting and enable Final
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If you want to apply prepayment to the invoice
Click Actions
Enable Apply/ Unapply Prepayment
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Click OK. It will redirect to Payment Work Bench
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Enable Apply and save it
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Re-query the Invoice
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Validate the Invoice and Create Accounting
Create another Standard Invoice against the Prepayment
Use the entire Pre-payment amount
Status is Fully Applied
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Invoice Statuses in Prepayment
Un validated: When Prepayment invoice is created, Before Validations the status of the
Prepayment Invoice is Un validated
Available: When we are issuing the payment for an invoice against Prepayment invoice
the status of Prepayment is Available.
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Fully Applied: If you use entire Prepayment amount against the invoice, the status of the
Prepayment invoice is Fully Applied.
Recurring Invoice
To Define Recurring Invoice we require Special Calendar
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Define Special Calendar
Navigation: Setup Calendar Special Calendar
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Define Recurring Invoice
Navigation: Invoices Entry Recurring Invoices
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Enter the Supplier Name, Select Special Calendar, Select Number of period
Under Invoice Definition Tab Enter the Number and Liability Account
Click Line Definition Tab
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Select Amounts TAB
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Select Payment Tab
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Save it
Under Invoice Definition, Enter Number of Invoices and Click Create Recurring invoices
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Click OK
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Validate the Invoice and Create Accounting
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Enter Template Name
Enter Expense Item against Expense Category and GL Account
Click Save
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Click Expense Report TAB
Select Default Template
Enable Apply Advances
Enable Automatically Create Employee as Supplier
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Click Expense Audit tab and Enable All Verified and Save it
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Run a program to create Expense Report
View Request
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Click Submit a new Request
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Select Single Request and Click OK
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Select Expense Report Export
Enter the Parameters
@ Source Select Payables Expense Reports
Click OK, Click Submit
Click No, Click Find
Refresh Data
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Click View Log
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Requery the Expense Report Invoice
Navigation: Invoices Reports Invoices
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Click All Distributions
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Enter Credit Memo
Navigation: Invoices Entry Invoices
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Enter Type of Invoice Trading partner Invoice Num and Invoice Date
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Enter the Amount (-ve Amount)
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Click Correction
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Click Distributions
Enter the Amount against the Account
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Issue payment considering Credit Memo against Invoice
Navigation: Payments Entry Payments
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Select the Trading Partner
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Select Payment Date, Bank Account and Payment Method
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Select Payment Document and Payment Process Profile
Click Enter/Adjust Invoices
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Click Payment Overview
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Security Profile
By using Security Profile we can have access to multiple operating units within the
Business Group. By using MO: Security Profile we can assign the Security Profile to the
responsibility, with that single responsibility we can have access to multiple Operating
Units.
Switch to HRMS Responsibility
Navigation: Security Profile
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Enter the Name of the Security Profile
Select the Business Group
Under Organization Security TAB
Select the Operating Units you want to have access.
Save it
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Search all the profile names which have assigned to AP Responsibility
Disable Site and Profiles with No Values
Click Find
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Assign the Security Profile against MO: Security Profile
Save it
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Select the Parameters
Click OK and Click on Submit
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Global Security Profile
By using Global Security Profile we can have access to multiple Operating Units across
the Business Groups.
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Conclusion
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