Flow of Accounting entries in Oracle Applications

By
Sivakumar Ganesan
E-Mail:sivakumar3009@gmail.com

Agenda
Understanding the Accounting Flow in Oracle
Applications
Transaction Flow
Modules Covered
Set up required in Oracle Applications
Defaulting Accounts
Posting to General Ledger from Sub-Ledger
Posting in General Ledger
Viewing the Trial Balance

Understanding the flow of Accounting in
Oracle Applications
Cost Mgmt
Cash Mgmt
General Ledger
Purchasing
Accounting
Engine
Assets
Payables
Receivables
Projects
Interfaces
with GL Other Legacy
Sources
SAP
Transaction Flow
Create Opening Balances in General ledger and Subledger
Place Purchase order
Receive the Materials into Stores
Receive the Supplier Invoice from Supplier
Match the Supplier invoice with PO and make Payment
Issue Materials to Production
Complete the Production Order and Build Inventory
Ship the Material to Customer
Raise invoice on Customer
Receive Cash from Customer
Reconcile the Payment and Receipt in Cash Management
Post Sub Ledger Transactions into GL
Run Trial Balance and Financial Statements (Profit & Loss
Account & Balance Sheet
Modules Covered
Oracle Purchasing
Oracle Payables
Oracle Inventory
Oracle Manufacturing (WIP Accounting)
Oracle Order Management
Oracle Receivables
Oracle Cash Management
Oracle General Ledger
Cost Calculation
FG/Sub Assembly
Purchased Item/
Sub Assembly Cost
Routing
Operations
Department
Resources
Rate
Usage
Rate X Usage
Operations Cost
Men, Money, Machine
Production / Service Departments
Item Cost
Total Cost
Set up Required in Oracle Applications
Each Module has a Parameter screen or Controlling Screen
through which the Accounts are Defaulting
Ex (Inventory Organization for Materials in Inventory
Module, Receiving options for Inventory Receipt in
Purchasing Module, Financial Options for Payables)
There are other places also where we can define the Accounts
and there is an inbuilt hierarchy within the Applications as to
where from the Accounts need to be defaulted
Each Module Needs to set the Accounts for an Accounting
Event Happening in that Module

Defaulting Accounts in Case of
Purchasing
Defaulting Accounts in Case of Purchasing
Posting to General Ledger from Sub-Ledger
Sub-Ledger Accounting Entries are Transferred to General
Ledger Interface table through the Concurrent Programs
We can schedule the concurrent Process to Transfer Data to GL
instead of manually running the concurrent Programs.
You can run the Process Daily, Weekly, Monthly
You can transfer the data either in
Summary or (Total Transaction for an Account Combination
per day)
Detail (Each Transaction)

Posting in General Ledger
This Process Transfers Data from GL Interface Tables to
GL Main Tables
(i.e) From GL_JE_INTERFACE table to
GL_JE_HEADERS and GL_JE_LINES
Once the Data is Posted No further changes to the Data is
permitted

Accounting Events Oracle Purchasing
Oracle Purchasing
Inventory Accruals
Transfer to Sub Inventory
Purchase Price Variance
Invoice Price Variance (IPV) and Exchange
Rate Variance
Return to Supplier From Receipt of Materials
Inter-organization Transfer

Accounting Events Oracle Payables
Invoices
Invoice
Invoice adjustment
Invoice cancellation
Prepayment application
Prepayment un-application
Payments
Payment
Future dated payment maturity
Payment adjustment
Payment cancellation
Payment clearing
Payment un-clearing

Accounting Events Manufacturing
(WIP)
Oracle Inventory
Material Transfer from Stores to WIP
WIP Completions and Material Consumption
Entry
Operations Completion Entry
Finished Goods Stock Creation Entry
Inter-Org Transfer
Sub-Inventory Transfer
Accounting Events Order Management
Order Management
Cost of Goods Sold Entry in Inventory Module


Accounting Events Oracle Receivables
Transactions
Invoices
Debit Memos
Commitments
Invoices Against a Deposit
Invoice Against guarantee
Credit Memos
On Account Credit Memo


Accounting Events Oracle Receivables
Receipts
Unapplied Receipts
On account Receipt
Applied Receipt
Reverse Receipt
Charge back
Adjustments
Miscellaneous Receipts
Bills Receivables
Accounting Event Cash Management
Oracle Cash Management
Cash Receipt Clearing
Cash Payment Clearing
Journals
Open Interface

Accounting Event General Ledger
Oracle General Ledger
Journal Entries Created from Sub Ledger
Manual Journal Entries created in GL
Inter-Company Transfer Entries
Translation entries
Revaluation Entries

Flow of Accounting in
oracle Applications
Case Study