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General Ledger

Mass Allocation formula: A*B/C

Recurring journals: Any kind of formula which includes +, -, /, *.

R12 Oracle General Ledger Functionalities

1. OGL Module Sits at Ledger Level

2. OGL Module acts as a Centralized Repository system for the entire Accounting and Financial
Information. OGL Module collects all the Accounting Information from various other
Modules and maintain those accounting entries In Journal Format
3. Enter the Transactions directly into the GL Module, if those transaction not fitting in Other
Modules enter as a Manual Journal in OGL
4. OGL will accept data only in the Journal Format
5. OGL will receive data from other modules and GL will not send any data to sub ledgers
6. GL is a Module used for your Financials Reporting activities
7. GL Modules has a flexibility of the Drill Down options, to review the sub ledger transactions
in the GL Module itself, without changing any responsibility
8. In Build Standard Reports such as Trial Balance, Account Analysis Reports, Journal Reports,
Useful MIS Reports
9. Flexibility of creation of Financials Reports, MIS Reports through FSG Tool
10. Multiple Ledger Architecture – Consolidate the data from Multiple Ledgers
11. Configuration of the Budget to control your expenditure limits
12. Multi Currency Reports and Multi Currency Ledgers
13. Automate the GL Process such as Auto Posting, Auto Reversal, Scheduling the Programs and
Reports
14. Secure Account Codes to ensure correct code combinations
15. Flexibility of Multiple Segments in your Chart of Accounts
16. Enter the transactions directly into GL module, if those transactions not fitting in other
modules enter as a Manual journal in OGL.

Oracle General Ledger Life Cycle

1. Open Period
2. Enter / Import Journals
3. Post a Journal
4. Inquiry Accounts
5. Reversal of Journal (Optional)
6. Revaluation
7. Translation
8. Consolidation
9. Run Reports
10. Close Period

Here are some of the new feature of General Ledger in R12.

Accounting Setup Manager

The ledger is a basic concept in Release 12. The ledger replaces the 11i concept of a set of books. It
represents an accounting representation for one or more legal entities or for a business need such as
consolidation or management reporting. Companies can now clearly and efficiently model its legal

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entities and their accounting representations in Release 12. This seems to be a major area in getting
success of the shared service center and single instance initiatives where many or all legal entities of
an enterprise are accounted for in a single instance, and data, setup, and processing must be
effectively secured but also possibly shared.

Now, legal Entities can be mapped to entire Ledgers or if you account for more than one legal entity
within a ledger, you can map a legal entity to balancing segments within a ledger.

While a set of books is defined by 3 Cs,

1. chart of accounts
2. functional currency
3. accounting calendar,

The addition in this list the ledger is defined by a 4th C: the accounting method,

This 4th C allows you to assign and manage a specific accounting method for each ledger. Therefore,
when a legal entity is subject to multiple reporting requirements, separate ledgers can be used to
record the accounting information.

Accounting Setup Manager is a new feature that allows you to set up your common financial setup
components from a central location.

What is Accounting Setup Manager

Accounting Setup Manager is a new feature that streamlines the setup and implementation of Oracle
Financial Applications. The Accounting Setup Manager will facilitate the setup required for
simultaneous accounting for multiple reporting requirements.

With the Accounting Setup Manager, you can perform and maintain the following common setup
components from a central location:

 Legal Entities
 Ledgers, primary and secondary
 Operating Units, which are assigned to primary ledgers
 Reporting Currencies, which is an enhanced feature
 Subledger Accounting Options. This is where you define the accounting methods for
each legal entity subledger transaction and associate them to the ledger where the
accounting will be stored.
 Intercompany Accounts and Balancing Rules
 Accounting and Reporting Sequencing
 Both Intercompany and Sequencing

Will discuss some more granular details in some other post.

Subledger Accounting (SLA)

As discussed in couple of earlier post GL is integrated with SLA to enable a unified process to
account for subledger transactions and post data to GL, and to provide a consistent view when drilling
down from GL to subledger transactions. You can read here.

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Enhanced Foreign Currency Processing by Reporting Made easy

GL has added new features and enhanced existing features to support foreign currency processing ,
they are mainly as:

 In R12, MRC feature is enhanced with a feature call Reporting Currencies. That mean it will
now support multiple currency representations of data from any source, including external
systems, Oracle or non-Oracle subledgers, and Oracle General Ledger journals and balances.
 The second one is in reporting to view balances view balances that were entered in your
ledger currency separate from those balances that were entered and converted to the ledger
currency.The change in R12 is that balances entered in the ledger currency are maintained
separately from balances converted to the ledger currency for use in Reporting and Analysis.

Here is an example. Assume we have a ledger and the ledger currency is USD.
I enter and post two journals; one in 1,000 US Dollars, and another in 500 British Pounds that gets
converted to 1200 US Dollars.

In Release 11i, I can review the 500 GBP and the 1200 USD that results from converting the 500
GBP, and the total 2200 USD which is the USD balance in the Cash Account. The $2200 is the sum
of the $1000 entered in USD and the $1200 converted from the 500 British Pounds. However, I view
that a 1000 USD were entered directly in USD.

In Release 12, I can view the 1000 USD by performing an account inquiry on the Cash account for
balances entered only in the ledger currency. The amounts entered in foreign currencies that were
converted to the ledger currency will not be included in the balance. Of course, if I want to retrieve all
balances in USD, both the entered as well and the converted, I can still do that in Release 12.

Creating foreign currency recurring journals

In Release 11i, you could define recurring journals using the functional currency or STAT currency.

Now in Release 12, you can create recurring journals using foreign currencies. This is particularly
useful if you need to create foreign currency journals that are recurring in nature. For example,

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assume a subsidiary that uses a different currency from its parent borrows money from the parent. The
subsidiary can now generate a recurring entry to record monthly interest payable to the parent
company in the parent’s currency.

Data Access to Multiple Legal Entities and Ledgers

You no longer have to constantly switch responsibilities in order to access the data in a different
ledger. You can access multiple ledgers from a single responsibility as long as all ledgers share the
same chart of accounts and calendar.

Simultaneous Opening and Closing of Periods for Multiple Ledgers

You no longer have to open and close periods for each ledger separately. You can now open and close
periods across multiple ledgers simultaneously by submitting Open and Close Periods programs from
the Submit Request form.

Simultaneous Currency Translation of Multiple Ledgers

You can run the Translation program for multiple ledgers simultaneously, if you are managing
multiple ledgers.

Financial Reporting for Multiple Ledgers

Now with this feature you can run Financial Statement Generator (FSG) reports for multiple ledgers
simultaneously. This is useful if you manage multiple ledgers and want to run a balance sheet or
income statement report for all of your ledgers at the same time.

Cross-Ledger and Foreign Currency Allocations

You are able to allocate financial data from one or more ledgers to a different target ledger. This
enables you to perform cross-ledger allocations, which is useful for purposes such as allocating
corporate or regional expenses to local subsidiaries when each entity has its own ledger

Streamlined Automatic Posting

You can now share AutoPost Criteria sets across multiple ledgers that share the same chart of
accounts and calendar and use the AutoPost Criteria sets to post journals across multiple ledgers
simultaneously.

Streamlined AutoReversal Criteria Setup Integrated Web-based

AutoReversal Criteria Sets can also be shared across ledgers to reverse journals across multiple
ledgers. This is enhanced by integrated Web-based Spreadsheet Interface.

>Journal Copy

Now we can now copy entire journal batches. You can copy journal batches with any status. The
system will create a new journal batch containing the same journal entries.You may also change the
batch name, period, and/or effective date while copying the journal batch. After copying the journal
batch, you may modify the unposted journals in the same manner as any manually created journals.

Streamlined Consolidation Mappings

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You are able to define Chart of Accounts Mappings (formerly known as Consolidation Mappings)
between two charts of accounts. Therefore, if you have multiple Consolidation Definitions for parent
and subsidiary ledgers that share the same chart of accounts pair, and their mapping rules are the
same, you only have to define a single Chart of Accounts Mapping.

The enhancement in R12 allows you to define mappings between charts of accounts instead of
between sets of books, so that they can be shared across multiple Consolidation Definitions.

Therefore, if you have multiple Consolidation Definitions for parent and subsidiary ledgers that share
the same chart of accounts pair, and their mapping rules are the same, you only have to define a single
Chart of Accounts Mapping.

You can also secure access to chart of accounts mappings using definition access set security. This
allows you to secure which users can view, modify, and/or use chart of account mappings in
consolidation definitions.

Replacement for Disabled Accounts

Normally when an account is disabled, you can prevent transactions that include the account from
erroring during journal import by defining a replacement account for the disabled account. Journal
import replaces the disabled account with the replacement account and continue the journal import
process if the replacement account is valid. This improves processing efficiency by preventing the
journal import process from erroring and enabling the successful creation of the journal with minimal
user intervention when an account has been disabled.

Data Access Security for Legal Entities and Ledgers

In R12, since you can access multiple legal entities and ledgers when you log into Oracle General
Ledger using a single responsibility, Oracle General Ledger provides you with flexible ways to secure
your data by legal entity, ledger, or even balancing segment values or management segment values.
You are able to control whether a user can only view data, or whether they can also enter and modify
data for a legal entity, ledger, balancing segment value or management segment value.

Management Reporting and Security

This can be best understood as:You can designate any segment (except the natural account segment)
of your chart of accounts to be your management segment and use Oracle GL security model to secure
the management segment for reporting and entry of management adjustments.

Prevent Reversal of Journals with Frozen Sources

You can no longer reverse journals from frozen sources defined in the journal sources form.

If the journal is created from a frozen source, the journal cannot be modified even if the source is
subsequently unfrozen in the future.
This provides streamlined data reconciliation with subsystems. Not being able to reverse journals that
originated in subledgers will ensure that the account balances will always tie out with General Ledger.
If you need to reverse a subledger journal, then you should do so in Subledger Accounting or the
subledger application.

Prevent Reversal of Unposted Journals

You also can no longer reverse unposted journals. This ensures data integrity and better auditability.
In the past when we allowed you to reverse unposted journals, there was a risk that the original

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journal could be deleted so you could end up reversing something that didn't exist. Now, all reversals
can be tied back to the original posted journal.

Integrated Web-based Spreadsheet Interface

Through the integration with Web ADI, users can now leverage spreadsheet functionality in Oracle
General Ledger via a web-based interface. The spreadsheet interface can be conveniently launched
from a GL responsibility.

Using the Journal Wizard, we can leverage spreadsheet functionality to create actual, budget, or
encumbrance journals. You can take advantage of spreadsheet data entry shortcuts such as copying
and pasting or dragging and dropping ranges of cells, or even using formulas to calculate journal line
amounts. You can then upload your journals to Oracle General Ledger. Before uploading, you can
save and distribute your journal worksheets for approval.

We can also import data from text files into spreadsheets, where it can be further modified before
uploading to Oracle. This functionality is useful when migrating data from legacy systems, or from
any source that can produce delimited files.

Using the Budget Wizard, you can download budget amounts to a spreadsheet, modify the amounts,
and then upload them back. You can also choose to download the actual amounts to compare it with
the budget amount. Budget Wizard also allows you to plot graphs and do a graphical comparison on
the amounts. Budget Wizard also provides budget notes. You can add descriptions to accounts and
amounts in your budget and explain your budget within the budget worksheet, avoiding the clutter of
external documentation.

Control Accounts

You are able to control data entry to an account by ensuring it only contains data from a specified
journal source and to prevent users from entering data for the account either in other journal sources
or manually within general ledger.

Security for Definitions

You can secure your setup and definitions by granting specific privileges to users to view, modify,
and/or execute a definition. This enables you to control which of your users can view a definition, but
not modify or execute it, or execute a definition without modifying it, or vice versa.

Following is a list of definitions that have this security available for:

1. MassAllocation and MassBudget Formulas

2. FSG Reports and Components
3. Accounting Calendars
4. Transaction Calendars
5. AutoPost Criteria Sets
6. AuoReversal Criteria Sets
7. Budget Organizations
8. Chart of Accounts Mappings
9. Consolidation Definitions
10. Consolidation Sets
11. Elimination Sets
12. Ledger Sets
13. Recurring Journals and Budget Formulas

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14. Rate Types

15. Revaluations

Sequence for Reporting

Maintaining two sequnces have been introduced, accounting and reporting sequencing.

Journal Line Reconciliation

Journal Line Reconciliation enables you to reconcile journal lines that should net to zero, such as
suspense accounts, or payroll and tax payable accounts for countries, such as Norway, Germany, or
France.

In R12, we’ve made many improvements to intercompany accounting. R11i’s Global

Intercompany System (GIS) has been replaced with an exciting new product called Advanced Global
Intercompany System (AGIS). We also extended intercompany balancing support to include
encumbrance journals.

Enhanced Intercompany

For more deatils , read this

Some of the GL Standard Reports converted into XML Publisher

Oracle General Ledger's Account Analysis, General Journals and Trial Balance standard reports are
now integrated with XML Publisher.

Oracle General Ledger – Major Functions and Features

 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
 Uses the Financial Statement Generator (FSG) to create custom financial reports
 Uses the GL Desktop Integrator to combine the power of Oracle GL with an Excel
spreadsheet to budget, report, analyze & enter accounting information.
 Extensive 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
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 subsidiary ledgers or enter journals to record actual or budget
transactions directly into GL
o Enter encumbrance journals to track encumbrances through the purchase approval
process and to control spending against budgeted amounts
o Review account balances online or through standard reports
 Manipulate accounting information
o Correct actual, budget and encumbrance information

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o Revalue and translate balances denominated in foreign currencies

o Consolidate balances from multiple sets of books
 Analyze accounting information
o Integrate GL with Financial Analyzer to simplify the budgeting and forecasting
process to efficiently answer ad hoc requests and to identify areas for profit
improvement

Multi-Org is an important feature of Oracle Applications for several reasons:

 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)
 Enables an enterprise to be housed in one database instance of Oracle, spanning multiple
countries, currencies, 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 or Operating
unit level

Multiple Organization in Oracle Applications depends primarily on defining your organizational

structure in the multi-level hierarchy used by Oracle Applications. The levels are:

 Business groups
 Accounting sets of books
 Legal entities
 Operating units]

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 Inventory organizations

Business Groups: Oracle Applications secures human resources information, including organization
definition, by business group. At least one Business Group will be required for every country since
the employee legislation is specific for each country and employee profile is set up at the Business
Group level. Security access to the sensitive Human Resources data is secured at the highest level at
the Business Group. In short Business Group partitions Human Resources information in a multi-
organization structure. Organization Structures and Organization Hierarchy is defined within the
Business Group.

Multiple sets of books can share the same business group if they share the same business group
attributes, including HR flex-field structures (Grade, positions flex-fields etc).

Accounting sets of books: A General Ledger concept for having separate financial reporting entities
for which chart of accounts, calendar, or functional currency differs. In addition for scalability and
ensuring independent numbering system for all the accounting transactions as well as the ability to
open and close each of the legal entities period independently a separate set of books will be
configured for each legal entity.

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

Operating units: An organization that partitions and uses data for Payables, Purchasing, Order
Management, Cash Management, Fixed Assets and Receivables. Operating Units allow for
configuration of the Oracle Applications across Multiple Business Groups using a single installation
of the software.

Inventory organizations: An organization that tracks inventory transactions and balances, and/or that
manufactures or distributes products or components. Segregate Item data objects for Inventory,
Purchasing, Order Entry, and the Manufacturing Applications (Organization_Id).

Examples could be manufacturing plants, warehouses, distribution centers, and sales offices

The following applications secure information by inventory organization: Oracle Inventory, Bills of
Material, Engineering, Work in Process, Master Scheduling/MRP, Capacity, and Purchasing receiving
functions. To run any of these applications, you must choose an organization that has been classified
as an inventory organization.

HR Organization
Internal Departments to which Employees are Assigned.

Asset Organizations
An asset organization is an organization that allows you to perform asset–related activities for a
specific Oracle Assets corporate depreciation book. Oracle Assets uses only organizations designated
as asset organizations.

Oracle API Availability -Oracle General Ledger (GL)

Budget Upload
Oracle Applications provides four methods for adding budgeting transactions, Application Desktop

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Integrator (ADI) Budget Wizard, manual entry through the application forms, journal import and
budget import.

 ADI: ADI is a spreadsheet-based application that allows the user to format data inside a
Microsoft Excel spreadsheet and then upload into Oracle Applications. ADI uses Budget
Wizards and Budget Templates to simplify the data entry. In addition, ADI is delivered as
standard functionality, as opposed to a custom interface that would require additional
development, maintenance and upgrade consideration.
 Manual Entry and Updating: Manual entry requires the user to have access to the Oracle
Application's General Ledger module and specifically the enter budget amounts forms for
your accounts to replace any existing budget balances. You can enter budget amounts for each
account in the budget organization one-by-one, or you can use worksheet mode to enter
budgets for several accounts at once. Budget rules enable you to distribute budget amounts for
all periods.
 Budget Interface: Budget interface provides a mechanism for transferring large numbers of
budget data from a third-party budget source system to your General Ledger application
Budget Interface table. Once you load your budget information into the Budget Interface
table, you can run Budget Upload to post your budget data into your General Ledger
application. Budget Upload uses the Budget Interface table GL_BUDGET_INTERFACE to
upload budget information. The Budget Interface table is organized in such a manner that
provides a column for each budget period in your current open fiscal year in addition to
account and other relevant information on a single budget line.
 GL Interface: GL Interface is another option for uploading large numbers of budget data
from a third-party budget source. With this option the source must provide a file that mimics
the layout found in the GL_INTERFACE table. The process for uploading a budget through
the journal import process is similar to that found using budget interface functionality. The
most significant difference is found in the format of the budget record. Here the record is
formatted in such a way that each budget line provides an amount for a single budget period
within the open fiscal year. Consequently, assuming a fiscal year has twelve periods, a full
fiscal year budget for one account would require twelve individual lines to be processed to
produce a budget across the full year.

Importing Journals

 Manual Entry and Updating: Manual entry requires the user to have access to the Oracle
Application's General Ledger module. After accessing enter journals form the user is
presented with a choice of either entering a new journal or searching an existing journal for
update. On a new journal the user can choose to overwrite default information found in
header by selecting choices from the drop-down list, in some cells the data is free form and
others the default information cannot be changed. The bottom area of the form also known as
the journal line detail is used to enter amount, account information and journal line
description.
 ADI: Journal Wizard is functionality provided with ADI that allows you to create journal
entries using Excel, then upload them into Oracle GL. With ADI the Wizard generates the
journal entry template to match the systems configuration. Therefore, in certain cases where
the volume is not excessively large this method may be used to format and upload journal
entries to Oracle GL. In addition, ADI is delivered as standard functionality, as opposed to a
custom interface that would require additional development, maintenance and upgrade
consideration.

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 GL Interface: Use journal import to load large numbers of journal transactions from third-
party systems such as payroll, accounts payable and accounts receivables systems. When
using the journal import functionality standard and statistical type journals can be processed.
In cases where migration from an older system to Oracle GL is taking place, GL Interface can
be used to facilitate the process.

Loading Daily Rates

When using General Ledger's Multiple Reporting Currencies feature, your daily rates are used to
convert your primary set of books' journals to the appropriate reporting currencies when the journals
are copied to your reporting sets of books. Your daily rates must be defined before you post journals
in your primary set of books. To load daily currency rate information two options are available,
manual entry using the Daily Rates form or direct loading through the
GL_DAILY_RATES_INTERFACE table.
You should take a note, normally one currency exchange rate is used for all set of books throughout
the organization therefore preventing out-of-balance issues especially in the case of intercompany
transactions.

 Manual Currency Rate Input: This option is used primarily when data volumes are small and
updates occur on a monthly intervals. In most cases the data is extracted from the internet or
another source and someone is required to calculate a month average then enter the values
into the system, using the daily rates form in the Oracle GL application.
 Automatic Currency Rate Loading: Depending on the frequency and number of currencies
used throughout the business, the volume may become too much to handle through a manual
entry process. Additionally, choosing this option makes daily updates more practical and
accurate. Several services provide daily currency rate information that can be transferred to
Oracle GL. Once the file is received the data is upload into the
GL_DAILY_RATES_INTERFACE and subsequently a trigger moves the data into a
production table.

The GL_DAILY_RATES_INTERFACE is the interface table used to create, update, and delete daily
conversion rates. This table should be used to load rates into the GL_DAILY_RATES table.

Generating Intercompany Transactions

The Global Intercompany System (GIS) provides a central location for subsidiaries to enter
intercompany transactions, those occurring between set of books. Furthermore, the process is built in
such a manner that an entry requires approval from the sender and receiver prior to the transaction
posting. With this process transaction amounts, dates, and currencies are confirmed by both
subsidiaries and subsequently producing more accurate results.

The process provides three mechanisms for entering transactions, manual, automatic transaction line
generation and import transactions through the GIS open interface table GL_IEA_INTERFACE. The
main factor for choosing which option to use is mainly based on data volume and integration with
external systems.

 Manual Intercompany Transaction Input: Use the Enter Intercompany Transactions window
to enter, update, approve, reject or mark transactions for deletion. This process is convenient
for quick entry and correction of entries that may have been interfaced in larger batches.

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 Automatic Transaction Line Generation: Using predefined AutoAccounting rules establishing

chart of account relationships between GIS senders and receivers, GIS can automatically
generate code combinations and amounts for any code combination of the following: sender
clearing, receiver distribution, and receiver clearing transaction lines.
 Intercompany Transaction Import: GIS provides the Open Interface to handle high volumes of
intercompany transactions and integration with external systems. The AutoAccounting rules
are applicable to transactions entering GIS through the open interface....[]..

Creating a Budget in GL

 In GL you can create a budget by designating amounts to a combination of an a/c and a

period.
 The status of a budget can be
o Open - the budget is available for update and entry
o Current - the budget is open and is the default budget when you use most budgeting
and inquiry forms. You can have only 1 current budget for each set of books.
o Frozen - the budget is unavailable for update or budget entry. However, you can
unfreeze any budget or budget element that is currently frozen.
 Use master-detail budgets to implement budget hierarchies. GL uses summary accounts to
maintain master detail budget relationships between hierarchy levels.
 Define budget organizations to specify budget accounts. Budget organizations can be defined
along dept., division or cost center lines to decentralize budgeting within an organization.
You can create as many budget organizations as you need provided a/c ranges do not overlap
for the same currency within the same Set of Books.

The Budget Accounting Cycle

Step 1 :Defining Budgets And Budget Organizations

Here you can define upto 60 budget periods in your budget; you can define budget organizations at
any level - cost center, division and so on and assign passwords to budgets and create new
organizations by copying existing budget organizations.

Step 2 :Entering Budgets

You can enter budget data using standard, formula-based and automatic allocations. You can also
enter amounts using annual spread, fixed amounts and calculated methods using an individual account
layout or a worksheet type screen layout. You can also transfer budget amounts from one a/c to
another.

Step 3 :Reviewing and Correcting Budgets

This consist of reviewing budget amounts and variances by period and a/c combination online and
compare summary balances of master detail budgets.

Step 4 :Freeze Budgets

This prevent further update to completed budgets.

Step 5 :Reporting on Budgets

This consist of running standard or customized budget reports.

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AIM Structure Framework

AIM is a framework of related elements. It involves phases, processes, tasks and dependencies:

 A task is a unit of work, which results in a single deliverable. That deliverable may take
many different forms like reports, schedules, code, or test results for example.
 A process is a closely related group of dependent tasks, which meets a major objective. A
process is usually based on a common discipline.
 A phase is a chronological grouping of tasks. It enables a flexible way to organize tasks,
schedule major deliverables, and deliver projects.

Processes and phases are explained in more detail below.

Processes

A process in AIM represents a related set of objectives, resource skill requirements, inputs, and
deliverable outputs. A task can belong to only one process. Project team members are usually
assigned to a process according to their specialization and background. A brief description of the AIM
processes are given below:

1. Business Requirements Definition: Business Requirements Definition defines the business needs
that must be met by the implementation project. You document business processes by identifying
business events and describing the steps that respond to these events.

2. Business Requirements Mapping: Business Requirements Mapping compares the business

requirements to standard application software functionality and identifies gaps that must be addressed
to fully meet business needs. As gaps between requirements and functionality emerge, they are
resolved by documenting workarounds, alternative solutions, application extensions, or by changing
the underlying business process.

3. Application and Technical Architecture: During the Application and Technical Architecture you
design an information systems architecture that reflects your business vision. Using the business and
information systems requirements, this process facilitates development of a plan for deploying and
configuring the hardware required for a successful implementation.

4. Module Design and Build: Module Design and Build produces custom software solutions to gaps
in functionality identified during Business Requirements Mapping. Custom software solutions include
program modules that must be designed, built, and tested before they can be incorporated into the
system.

5. Data Conversion : Data Conversion defines the tasks and deliverables required to convert legacy
data to the Oracle Applications tables. The first step of this process explicitly defines the business
objects that are required for conversion and the legacy source systems that store these objects. The
converted data may be needed for system testing, training, and acceptance testing as well as for
production.

6. Documentation :Documentation begins with materials created early in the project. Using detailed
documents from the project, the writing staff develops user and technical material that are tailored to
the implementation.

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7. Business System Testing: Business System Testing focuses on linking test requirements back to
business requirements and securing project resources needed for testing. It supports utilizing common
test information including data profiles to promote testing co-ordination and to minimize duplication
of test preparation and execution effort.

8. Performance Testing:Performance Testing enables you to define, build, and execute a

performance test. Use the results to make decisions on whether the performance is acceptable for the
business and to help propose tactical or strategic changes to address the performance quality shortfall.
Performance Testing is closely related to Application and Technical Architecture; they are
interdependent.

9. User Training:Training prepares both users and administrators to assume on the tasks of running
the new application system. It includes development of materials and methods as well as
administration. Instructors and courseware developers orient their material toward roles and jobs, and
not toward application modules.

10.Production Migration : Production Migration moves the company, system, and people to the new
enterprise system. Following production cutover, it monitors and refines the production system and
plans for the future. The Production Migration process encompasses transition to production
readiness, production cutover, and post-production support

The Process can easily understood by this diagram against Phases discussed below.

Phases

An AIM project is conducted in phases that provide quality and control checkpoints to co-ordinate
project activities that have a common goal. During a project phase, your project team will be
executing tasks from several processes. A brief description of the AIM processes are given below:

1. Definition: This consist of review the organization's business objectives, evaluate the feasibility of
meeting those objectives under time, resource, and budget constraints. Moreover this can be best
consider as SOW(statement of work) preparation phase.

2. Operations Analysis:During Operations Analysis, the project team develops Business

Requirements Scenarios based on deliverables from Definition that are used to assess the level of fit
between the business requirements and standard application functionality. Gaps are identified and
corresponding solutions developed. The analysis results in a proposal for conducting business

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operations under the envisioned application technical architecture. Solutions for gaps evolve into
detailed designs during Solution Design.

3. Solution Design:The purpose of Solution Design is to develop the detailed designs for the optimal
solutions to meet the future business requirements. During this phase, project team members create
detailed narratives of process solutions developed during Operations Analysis. Supporting business
requirements may require building application extensions to standard features; several alternative
solutions may have been defined during Operations Analysis. The project team carefully scrutinizes
these solutions and chooses the most cost effective alternatives.

4. Build:The coding and testing of all customizations and other custom software including
enhancements, data conversions, and interfaces is done during Build. Policy and procedure changes
relating to business process modifications are developed. Business system testing is performed to
validate that the developed solutions meet business requirements. If customizations, extensions, or
conversions are not required, Build is still important because it includes the business system test,
which is commonly conducted as a formal conference room pilot. The business system test validates
the solutions and is performed in an environment that closely resembles production.

5. Transition: During Transition, the project team deploys the finished solution into the organization.
All the elements of the implementation must come together to transition successfully to actual
production. The project team trains the end users while the technical team configures the production
environment and converts data. Transition ends with the cutover to production, when end users start
performing their job duties using the new system.

6.Production: Production begins immediately with the production cutover. It marks the last phase of
the implementation, and the beginning of the system support cycle. Included in this final phase is a
series of refinements and performance measurement steps. The inhoues MIS/IT Department personnel
work quickly to stabilize the system and begin regular maintenance. They will provide the ongoing
support to the organization for the remaining life of the system. During Production, you compare
actual results to project objectives.

Month End Close with Oracle R12

Below outlines the period end dependency for Oracle Payables, Oracle Purchasing, Oracle Inventory,
Oracle Receivables, Oracle Assets, Oracle Order Management, Oracle Projects and Oracle General
Ledger (Release 12).

Fig 1: Period Close dependecy among the modules

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GL period closure is needed per ledger. Here is checklist with some handy notes for reference.

1. Ensure Next Period is Future Enterable or Open : You need Set the status of the next
accounting period to ‘Future Entry’ if it is not already, except at year-end. While doing the
year-end, it is recommended that you complete all period end processing, prior to opening the
first period of the new financial year.
2. Import & Post SLA & Feeder Systems
o Import Journals
 Journal Import Execution Report
 Delete Journals in Error
 Correct via Correct Journal Import Data
 Re-import
o Post Journals
3. Post All Journals (after correcting posting errors)
4. Run and Review Journals Reports
5. Run Revaluation :This need to revalue account balances to update functional currency
equivalents
6. Run Translation : This is Optional , need only when you define any new currencies to which
accounting balances are to be translated. In that case you
o .. Maintain period-end exchange rates for all foreign currencies to which you want to
translate.
o .. Maintain average exchange rates for all foreign currencies to which you want to
translate.
o .. Maintain historical rates or amounts for any owner’s equity accounts to be
translated.
o .. Translate account balances to any defined currency
7. Reconcile Intercompany
8. Close GL Period
9. Consolidate Ledgers
10. Run Final Reports

If you are using intercompany segments, then steps 7 will be additional for you. Therefore

 While doing Intercompany Reconcilation, you need to compare the balance of intercompany
accounts for a pair of trading partners to see if they match
 Drill down to General Ledger Balances
 Drill down to journals in GL, SLA and subledger transactions (invoices, etc.)

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1. Foreign Currency Journal

 Any Transactions which is entered apart from the Ledger Currency or Functional
currency
 Define Currency Conversion Rate Type (Predefined Types – Corporate,
Reporting, Daily, Users)
 Define Currency Conversion Rates (Daily Rates or Range of Dates)
 Enter the Journals and Post

2. Revaluation

 All the Foreign Currency Assets and Liabilities needs to be revaluated

 Revaluation is bring those Assets and Liabilities as per the current market value
 End Rate – Assets and Liabilities is revalued based on End Rate
 Avg Rate – All Income and Expenses is revalued based on Avg Rate
 Historical Rate – All the Ownership Accounts is revalued based on Historical
Rates
 The Currency difference will be accounts as Unrealized Gain / Loss
 Basically the Revaluation Journals will be reversed in the Next Period

3. Translation

 Conversion of reports One Currency to Another Currency (Trial Balance)

 Define conversion Rate Type for Reporting Rate Type
 Run Translation
 Run Trial Balance – Translation

4. Consolidation

 Transfer of Data from one Ledger to another Ledger if there is a Multiple Ledgers
available in the Organization
 All the Subsidiary companies will be sending their data’s to their parent
companies so that the parent company can display the global financial reports
 This can be done either monthly basis or periodically based on their requirements
 Global Consolidation System – If the data is available in Multiple Instances or
Servers, the Hardware is different and the data base is different, database links to
be provided in the GCS
 Global Financials Hubs – The Data can be integrated between multiple
applications
 The COA might be same COA for all the Ledgers or there might be different
COA for each ledgers
 One Ledger might be following a 5 Segment COA
 Another Ledger might be following a 7 Segment COA
 Main concept in Consolidation, the COA Mapping
 If Consolidation is on a regular day to day activity, we can configure the
Secondary Ledger and automate the consolidation process
 The Translation Process is Mandatory

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Steps for Consolidation

1. Define the COA Mapping
2. COA Mapping – Account Rules
3. COA Mapping – Segment Rules (Mostly Used)
4. Transfer
5. System will generate a Journal import program and creates a new Journal in
the Parent Ledger

R12 Oracle General Ledger

1. Introduction to Oracle General Ledger
2. Ledger Architecture
3. Journal Process
4. Journals Approval
5. Account Code Combination Security
6. Global Consolidation System
7. Standards Reports
Phase I - Ledgers

1.1 Ledger Definition

1.2 Types of Ledgers
1.3 Ledger Components
1.4 Chart of Accounts
1.5 Calendar
1.6 Currency
1.7 Accounting Setup Manager
1.8 Complete Ledger Options
1.9 Complete Accounting Options and Ledger
1.10 Define GL Responsibility and Assign your Ledger

Phase II - Journals

1. GL Period Status – Open Period

2. Journals
2.1 Journal Header Level
2.2 Journal Line Level
2.3 Journal Setups
2.4 Journal Process
2.5 Journal Batch
2.6 Journal Import
3. Posting Process
3.1 Single Journal Posting
3.2 Multiple Journal Posting
3.3 Auto Posting
4. Reversal of Journal
4.1 Single Journal Reversal
4.2 Auto Reversal
4.3 Period Closure Adjustment Journal Reversal

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5. Foreign Currency Journals

6. Journal Copy and Recurring Journals
7. Mass Allocation
8. Auto Allocation
9. Journal WED ADI
10. Inquiry Journals

Phase III – Account Codes

1. GL Code Combination
2. Cross Validation Rule
3. Security Rule
4. Ledger Sets
5. Data Access Set
6. Data Definition Sets
7. Summary Accounts
8. Account Hierarchy through WEB ADI

Phase IV - Month End Closure

1. Revaluation
2. Translation
3. Global Consolidation System
4. Close GL Period
Phase V – Budgets

1. Budget Definition
2. Budget Organization
3. Enter Budget Amount
4. Freeze the Budgets

Phase VI – Reports in OGL

1. FSG Reports Designing

2. Run Financials FSG Report
3. Run Standard Reports in OGL

Ledger Architecture
1. Ledger – Records all the Financials Information.
2. The Chart of Accounts is the Heart of your Accounting
3. Ledger is the Heart of your Organization Financials Structure
4. Ledger Types in OGL

4.1 Primary Ledger (Mandatory)

4.2 Secondary Ledger (Optional)
4.3 Reporting Ledger (Optional)

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5. Primary Ledger – Original Ledger where all your business data are recorded and this
is the ledger by default integrated with Other Modules. We need to have at least one
Primary Ledger in our Instance to capture all our financial information and business
data’s.

6. Secondary Ledger – Optional Ledgers. The need of secondary ledger is mainly to

implement the accounting process as per the GAAP, Generally Accepted
Accounting Principles. There might be a variance on processing certain items while
reporting to multiple authorities. Such as Taxation, Depreciation Methods,
Revaluation of Assets, Inventory Stock Value, Accounting Principles such as
classification of accounts based on Expenditure or Assets such as Capitalized Assets
or Capitalized Expenditures. The Purpose of Secondary ledger is if there is a change
in Accounting Methods or Accounting Convention.

7. Reporting Ledger – Optional ledger. Can be configured either to Primary Ledger or

Secondary Ledger or Both. Reporting Ledger only if there is a change in Currency.

 One Primary Ledger can have multiple Reporting Ledgers

 One Secondary Ledger can have multiple Reporting Ledgers
Ledger Configuration
1. Ledger Components (4 ‘Cs)

 Chart of Accounts (COA) – Accounting Structure of an Organization. We can

define our own COA, as per the flexibility of the organization to capture the
business data’s visibility in the Account Codes, Consideration of Legal
Prospective, Branches, Financials Reporting, Taxation Reporting, Multi
Organization structures
 Calendar – The Financials Year of the Organization, basically it should be
considered as per the country standards.
 Currency –Scales the Value of the Transactions. The currency is depends on the
location of the organizations.
 Accounting Convention – Optional – By default system will take Standard
Accrual Basis. To records the business transactions as per the Accounting
Principles. GAAP

2. How many Ledger is required for an Organization

 Depends on the Organization Structure of the Customers, Multiples Branches,

Multiple Businesses (LOB), Multiple Legistrative.
 If any of the 4’cs is different, from one business to another business or one
location to another location, we might required multiple primary ledgers
 Single Organization Operates in Single Country
 Single Organization Operates in Multiple Countries
 Multiple Organization operates in Single Country
 Multiple Organization operates in Multiple Countries

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