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QUESTIONS IN R12
Posted by Raju ERP
1) Can a flexfield qualifier be changed after it has been created?
Ans) No.
Once a segment qualifier has been designated for a specific segment and has been saved, it will permanently
have the attributes with that qualifier.
For example, you accidentally designate the cost center segment as the natural account segment. Even though
you do not compile this, the system saves the changes. And once it has been saved, it will have all the attributes
designated for the natural account qualifier, even after it has been changed back, resaved with the correct
qualifier and compiled. This is the inherent functionality of the software.
Unfortunately, there is no real easy solution for this issue. The only option is to create a new chart of accounts
and attach a new set of books.
2) How to delete a segment value?
Ans) There is no supported way to delete a segment value. Segment values can only be disabled not deleted.
3) Is there a way to load values for a specific segment outside of the form?
Ans) iSetup is the Oracle product that provides supported APIs to load values into Oracle Applications
flexfields.
To load code combinations ADI may be used. Uploading zero amount journals will create new code
combinations.
In this case Dynamic Insertion should be enabled and all account segment values need to exist before the new
account code combinations will be dynamically created.
2. Foreign Currency Jv: this Journal, we enter other than local currency transaction purpose...before we define
exchange rates
3.Suspense Jv: this Journal, whenever debit is not equal to credit that time, we enable in set of books window
Suspense button, then it works otherwise it's not working
4.Tax Jv: this Journal, calculate taxation of Purchased items
5.Reverse Jv: this Journal whenever we enter recurring journal, at the time of we using..We have two
methods...one is Debit to Credit and second one is sign (+ to -)
6.Recurring Jv :this one is We define one template, we use Periodically, these are 3 types
1.Standard 2.Skeleton 3.Formula
7.Mass Allocation Jv :Set of Expenses or Set of Revenue allocate different parts using Formula A*B/C
A is Total Cost Pool..B is Usage Factor...C is Total Usage Factor...
8. Batch JV: Group of Journal we enter at a time, We Define Control Amount
9. Stat JV: This JV we have one side of Amount either debit or Credit.....
5) What is average Balance In Oracle Financials?
Ans) The Average Balance feature of Oracle General Ledger provides organizations with the ability to track
average and end-of-day balances, report average balance sheets, and create custom reports using both standard
and average balances. Average balance processing is particularly important for financial institutions, since
average balance sheets are required, in addition to standard balance sheets, by many regulatory agencies. Many
organizations also use average balances for internal management reporting and
Profitability analysis.
The difference between an average and standard balance sheet is that balances are expressed as average
amounts rather Than actual period-end amounts. An average balance is computed as the sum of the actual daily
closing balance for a balance sheet account, divided by the number of calendar Days in the reporting period .
6) Is there a limit to the number of periods in a budget year or how many years a budget can span?
Ans) One can define budgetary control for n number of years however, one year can have maximum of 60 fiscal
periods7)
7) What is a funding budget?
Ans) A budget against which accounting transactions are checked for available funds when budgetary control is
enable for your set of books.
Question: Oh good, but can these new fields be added without modifying/customization of the screen?.
Answer: Yes, certainly. Only some setup is needed, but no programmatic change is needed to setup DFF.
Question: Why the word Descriptive in Name DFF?
Answer: I think Oracle used this terminology because by means of setup...you are describing the structure of
these new fields. Or may be Oracle simply used a silly word to distinguish DFF from KFF(discussed in latter
training lesson).
Question: Are these DFF's flexible?
Answer: A little flexible, for example, depending upon the value in a field, we can make either Field1 or
Field2 to appear in DFF.
Question: So we create new fields in existing screen, but why the need of doing so?
Answer: Oracle delivers a standard set of fields for each screen, but different customers have different needs,
hence Oracle lets us create new fields to the screen.
Question: Are these new fields that get created as a result of DFF free text?
I mean, can end user enter any junk into the new fields that are added via DFF?
Answer: If you attach a value set to the field(at time of setup of dff), then field will no longer be free text. The
entered value in the field will be validated, also a list of valid values will be provided in LOV.
Question : Will the values that get entered by the user in dff fields be updated to database?
Answer: Indeed, this happens because for each field that you create using DFF will be mapped to a column in
Oracle Applications.
Question: Can I create a DFF on any database column?
Answer: Not really. Oracle delivers a predefined list of columns for each table that are meant for DFF usage.
Only those columns can be mapped to DFF segments. These columns are named similar to ATTRIBUTE1,
ATTRIBUTE2, ATTRIBUTE3 ETC. Usually Oracle provides upto 15 columns, but this number can vary.
Question: Can I add hundreds of fields to a given screen?
Answer: This depends on the number of attribute columns in the table that screen uses. Also, those columns
must be flagged as DFF enabled in DFF Registration screen. Don't need to worry much about this because all
the ATTRIBUTE columns are by default flagged for their DFF usage.
Question: Hmmm, I can see that DFFs are related to table and columns...
Answer: Yes correct. Each DFF is mapped to one table. And also each segment(or call it field) is mapped to one
of the attribute columns in that table.
Question: I want these fields to appear in screen only when certain conditions are met. Is it possible?
Answer: Yes, we have something known as Context Sensitive Descriptive Flexfields.
In Order to do this, we will follow the below steps(screenshots will follow) :1. Navigate to the DFF Registration screen in Oracle Apps and query on Table AP_BANK_BRANCES. Now
click on Reference Field
2. Navigate to DFF Segments screen and query on the Title of the Bank Branch and Unfreeze the Flexfield
and add segments as to Section "GLOBAL Data Elements" as shown in screenshots.
Expenditure Budgets
Revenue Budgets.
19)What are Spot Rate, Corporate Rate, Transaction Calendar and Accounting Calendar?
Ans) Spot Rate:
An exchange rate which you enter to perform conversion based on the rate on a specific date. It applies to the
immediate delivery of currency.
Corporate Rate:
An Exchange rate that we define to standardize rates for our company. This rate is the standard market rate
determined by the senior financial management for use through out the organization.
User Rate:
Conversion rate that is defined by the user.
EMU Fixed Rate: An exchange rate that is provided automatically by the General Ledger while entering
journals. It uses a foreign currency that has a fixed relationship with the euro.
Transaction Calendar: Defines the business days and holidays for any calendar.
Accounting Calendar: Defines different types of calendars namely Fiscal, Federal Fiscal, Month etc.
20)What is Security Rule?
Ans) Security Rules are defined to control the access of a flexfield segment value (Financial information) at a
responsibility level.
21) What are Cross Validation & ADI?
Ans) CVS Cross validate segments Allows only valid code combinations.
ADI Allow dynamic inserts. Allows any code combination irrespective of validity.
ADI would prevail if both of CVS and ADI are checked.
22)What is Translation?
Ans) Translation is a process used to convert functional currency to other reporting currencies at the account
balances level.
23)What is Revaluation?
Ans) It is process used to revalue assets and liabilities denominated in foreign currency into functional currency
based on period end exchange rate we specify. Unrealized gains/losses are resulted because of exchange rate
fluctuations which are recorded in unrealized gain/loss account in GL.
24)What is FSG (Financial Statement Generator)?
Ans) Financial statement generator feature helps us to generate reports such as balance sheets and income
statements with out programming. It also provides a high degree of control on the rows, columns, contents and
calculations on the report. Different components such as row set, column set, content set, row order, display set
have to be defined before a statement is generated, of which row set and column set are mandatory.
25) What is Consolidation?
Ans) Consolidation is a period-end process of combining the financial results of separate business subsidiaries
with the parent company to form a single combined statement of financial results.
26) At what level General Ledger data is secured?
Ans) GL data is secured at Set of Book level. Subledger module data is secured at Responsibility level (i.e., at
Operating Unit Level).
27) Difference between Primary Ledger and Secondary Ledger in R12 ?
Ans) Primary ledger:
The primary ledger acts as the primary accounting representation
Secondary Leger:
Secondary ledgers represent the primary ledger's accounting data in another accounting representation that
differs in one or more of the following ways:
chart of accounts
currency
Use secondary ledgers for supplementary purposes, such as consolidation, statutory reporting, or adjustments
for one or more legal entities within the same accounting setup. For example, use a primary ledger for corporate
accounting purposes that uses the corporate chart of accounts and subledger accounting method, and use a
secondary ledger for statutory reporting purposes that uses the statutory chart of accounts and subledger
accounting method. This allows you to maintain both a corporate and statutory representation of the same legal
entity's transactions in parallel.
Assign one or more secondary ledgers to each primary ledger for an accounting setup.
The secondary ledgers assigned can only perform the accounting for the legal entities within the same
accounting setup.
3) Can you give a sample Process Flow for Procure to Pay Cycle?
Ans) Process flow for Procure to pay will go through two departments
(Commercial & Finance)
Procure - Commercial Department The following steps invovle to prcure any item
1. Received Requsition from concern Department
2. Request for Quotation from Suppliers at least three
3. Finalize the best Quotation by keeping in mind about our companies standard
4. Check the Budget for the same
5. Negociate with supplier for more economic pricing and finalize the payment terms
6. Process the PO and forward to the supplier to supply the goods and services
Pay Cycle - Finance Department
Description
A) Po creation
Entry
DR
CR
No Entry
No
Material Receiving
Ap
C) While Inspection
Entry
No Entry
No
Material
Ap Accurval
Liability
H) Ofter Reconciliation
I) Final Entry
Liability
Cash
Cash Clearing
Cash
Cash
considered as the data which is in the base table is accurate and used in many ways.
(Reporting..etc..)
ThebasetablesinAPareasfollows:
1)ap_invoices_all
2)ap_invoice_payments_all
3)ap_invoice_distibutions_All
4)ap_payment_schdules
5)ap_payment_dustributions_all
6)ap_checks_all
7)ap_accounting_events_all
8)ap_bank_accounts_all
9)ap_bank_accounts_uses_all
10) WhatistheprocessofcreatinganInvoicesandtransferringittoGL?
Ans)
1.createbatch
2.createinvoice
3.createdistribution
4.validatetheinvoice
5.actionsapprove
6.ifindividualcreateaccountingclickok
7.Ifbatchgotobatchcreateaccounting.
8.CreateaccountinghitsPayableAccounting(Transfer)??Programwhichwillcreateaccounting.
9.RunTransfertoGLConcurrentProgram
10.JournalImport
11.Postjournals
12.Hitsbalances.
11)HowdouTransferfromAPtoGL?
Ans)PayablestransfertoGLprogramisusedtotransferfromAPtoGL.
12)HowmanytypesofinvoicesarethereinAP.
Ans)
1.Standaradinvoice
2.DebitMemo
3.CreditMemo
4.MixedInvoice
5.RetainageInvoice
6.Transportationinvoice
7.Prepaymentinvoice
8.ExpensesReportInvoice
9.PaymentRequestInvoice
10.Podefault
13)Howmanytypesofpurchaseordertypes/agreementsarethere?
A)StandardPurchaseOrder:Yougenerallycreatestandardpurchaseordersforonetimepurchaseofvariousitems.
Youcreatestandardpurchaseorderswhenyouknowthedetailsofthegoodsorservicesyourequire,estimatedcosts,
quantities,deliveryschedules,andaccountingdistributions.Ifyouuseencumbranceaccounting,thepurchaseordermay
beencumberedsincetherequiredinformationisknown
B)PlannedPO:Aplannedpurchaseorderisalongtermagreementcommittingtobuyit
itemsorservicesfromasinglesource.Youmustspecifytentativedeliveryschedulesandalldetailsforgoodsorservices
thatyouwanttobuy,includingchargeaccount,quantitiesandestimatedcost.
EX:BuyinggoodsforChristmasfromaspecificdealer.
C)ContractPO:Youcreatecontractpurchaseagreementwithyoursuppliertoagreeonspecifictermsandconditions
withoutindicatingthegoodsandservicesthatyouwillbepurchasingi.e.for$amountyoumustsupplythismuch
quantity.YoucanlaterissuestandardPOreferencingyourcontractsandyoucanencumberthesepurchaseordersifyou
useencumbranceaccounting.
D)BlanketPO:Youcreateblanketpurchaseagreementswhenyouknowthedetailofgoodsorservicesyouplantobuy
fromaspecificsupplierinaperiod,butyoudonotyetknowthedetailofyourdeliveryschedules.Youcanuseblanket
purchaseagreementstospecifynegotiatedpricesforyouritemsbeforeactuallypurchasingthem.
ABlanketPurchaseAgreementisasortofcontractbetweentheyouandursupplieraboutthepriceatwhichyouwill
purchasetheitemsfromthesupplierinfuture.Hereyouenterthepriceoftheitemnotthequantityoftheitems.When
youcreatethereleaseyouenterthequantityoftheitems.Thepriceisnotupdatableintherelease.Thequantity*price
makestheReleasedAmount.Nowsupposeyourcontractwithyoursupplierissuchthatyoucanonlypurchasetheitems
worthafixedamountagainstthecontract.
14.Payment Method:
A funds disbursement payment method is a medium by which the first party payer, or deploying
company, makes a payment to a third party payee, such as a supplier. You can use a payment
method to pay one or more suppliers. Oracle Payments supports several payment methods for
funds disbursement, including the following:
Check
Electronic
wire
Clearing
Check:
You can pay with a manual payment, a Quick payment, or in a payment batch.
Electornic:
Electronic An electronic funds transfer to the bank of a supplier.You create electronic payments
either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For
both methods, Payables creates a file during payment batch creation. If you are using the eCommerce Gateway to create the file of payments, an EDI translator is required to create the EDI
Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is
formatted and delivered to your ap.out directory for delivery to your bank.
Wire:
Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of
a suplier.A payment method where you pay invoices outside of Payables by notifying your bank
that you want to debit your account and credit your suppliers account with appropriate funds.
You provide your bank with your suppliers bank information, and your bank sends you
confirmation of your transaction. Your suppliers bank sends your supplier confirmation of the
payment. You then record the transaction manually.
Clearing:
Clearing Payment for invoices transferred from another entity within the company without
creating a payment document.Payment method you use to account for intercompany expenses
when you do not actually disburse funds through banks. You do not generate a payment
document with the Clearing payment method. When you enter the invoice, you enter Clearing for
the payment method.You can record a Clearing payment using a Manual type payment only.
15.What id recurring invoices? What are AP setup steps?
Ans) some times suppliers would not be sending any invoices. but still the payment have to
made to home: rent, lease rentals. in this situation we have to create invoice every period wise.
For that purpose we have to create one recurringinvoice template. Template means with one
master copy creating the multiple invoices is called template. Here we are creating the one
invoice master copy is formally known as recurring invoice or recurring invoice template.
SET UP:
1)we have to create one special calendar
2)we have to create one full distribution set
3)we have to enter payment terms in the recurring invoice window
4)enter the template no, first invoice amount, special invoice amounts
Receivables overview:
Accounts receivable is an asset account in the general ledger that documents money owed to a
business by customers who have purchases goods or services on credit.
Accounts receivable can be contrasted with accounts payable, a liability account in the GL that
documents money the business owes for the purchase of goods or services.
Accounts receivable, accounts payable and payroll are usually listed as the top three missioncritical business processes in a disaster recovery plan .
Receivables Workbenches:
Oracle Receivables provides four integrated workbenches that you can use to perform most of
your daytoday Accounts Receivable operations. You can use the Receipts Workbench to
perform most of
your receiptrelated tasks and the Transactions Workbench to process your invoices, debit
memos, credit memos, onaccount credits, chargebacks, and adjustments. The Collections
Workbench lets you review customer accounts and perform collection activities such as recording
customer calls and printing dunning letters. The Bills Receivable Workbench lets you create,
update, remit, and manage your bills receivable.
Each workbench lets you find critical information in a flexible way, see the results in your defined
format, and selectively take appropriate action. For example, in the Transactions Workbench, you
can query transactions based on the billto or shipto customer, currency, transaction number, or
General Ledger date. You can then review financial, application, and installment information,
perform adjustments, create a credit memo, or complete the transaction. All of the windows you
need are accessible from just one window, so you can
query a transaction once, then perform several operations without having to find it again.
Define Currencies
Define Calendars
Define Ledger
Click on Segments.
Enter your segments names.
Select Allow Dynamic inserts and Freeze Flexfield Defination and then click on Compile.
Define Values:
Navigation: General Ledger --> Setups --> Flexfields --> Key -->Values.
Enter the below information and click on find button.
Define Currencies:
Navigation: General Ledger --> Setup --> Currencies --> Define.
Enter information and save.
Define Calendar:
Navigation: Setup --> Financials --> Calendars --> Accounting.
Save.
Define Ledger :
Click on find.
Assign Ledger to GL Responsibility.
Save.
Define Items
Under Revision and Lot Serial And LPN enter the required information.
Enter Finished good and then click on Apply and done button.
Receivable Setups:
Define AutoAccounting
Define Collectors
Define Salespersons
Define Customers
Transaction flexfields are descriptive flexfields that AutoInvoice uses to identify transactions and
transaction lines. Receivables lets you determine how you want to build your transaction flexfield
structure and what information you want to capture.
Navigation: Receivables --> Setup --> Financials --> Flexfield --> Key --> Segments.
If you are using AutoCash, define your AutoCash rule sets before defining system parameters or
customer profiles classes. AutoCash rules determine the sequence of application methods
Receivables uses when applying receipts imported using AutoLockbox to open debit items.
Navigation: Receivables --> Setup --> Receipts --> Autocash rule sets.
Receivables provides several default lookups which are used throughout the application to
provide validated default values and list of values choices. You can add or update these to
customize your list of values and speed data entry. For example, you can define additional
reasons for creating credit memos or enter the names of each freight carrier used by your
business.
Navigation: Receivables --> Setup --> System --> Quickcodes --> Receivables.
If you are using AutoInvoice, define invoice line ordering rules to specify how you want to order
and number transaction lines after AutoInvoice groups them into invoices, debit memos, and
credit memos. Receivables provides many attributes that you can use to define your line
ordering rules.
Navigation: Receivables --> Setup --> Transactions --> Autoinvoice --> Line Ordering rule.
If you are using AutoInvoice, define grouping rules to indicate how you want to group transaction
lines imported by AutoInvoice. For example, to include specific transaction lines on a single
transaction, certain attributes must be identical. Receivables provides many attributes that you
can use to define your grouping rules.
Navigation: Receivables --> Setup --> Transactions --> Autoinvoice --> Grouping Rule.
Define Application Rule Sets to control how Receivables reduces the balance due for your open
debit items when you apply payments using either the Applications window or Post QuickCash.
You can define your own application rule sets, assign them to transaction types, and specify a
default rule set in the System Options window.
Navigation: Receivables --> Setup --> Receipts --> Application Rule sets.
Define payment terms to determine the payment schedule and discount information for
customer invoices, debit memos, and deposits. You can also define proxima payment terms to
pay regular expenses such as telephone bills and credit card bills that occur on the same day
each month and create split payment terms for invoice installments that have different due
dates.
Define AutoAccounting:
Define AutoAccounting to specify the general ledger accounts for transactions that you enter
manually or import using AutoInvoice. AutoAccounting uses this information to create the default
revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, bills
receivable accounts, and AutoInvoice clearing (suspense) accounts.
Define the transaction types that you assign to invoices, debit memos, commitments,
chargebacks, credit memos, onaccount credits, and bills receivable. Receivables uses
transaction types to default payment term,
account, tax, freight, creation sign, posting, and receivables information. Receivables provides
two predefined transaction types: Invoice and Credit Memo.
Define the transaction sources that you assign to invoices, debit memos, commitments, credit
memos, onaccount credits, and bills receivable. Receivables uses transaction sources to control
your transaction and transaction batch numbering, provide default transaction types for
transactions in batch, and to select validation options for imported transactions. Receivables
provides the following predefined transaction sources: MANUALOTHER, DM Reversal, and
Chargeback.
Navigation: Receivables --> Setup --> Transaction --> Sources.
Define Collectors:
Define collectors to assign to your customers through credit profile class assignments. Collectors
can use the Collections windows and Receivables collection reports to keep apprised of a
customers past due items. Receivables provides a predefined collector called DEFAULT.
Define Receivables Activities to provide default accounting information when you create
adjustments, discounts, finance charges, miscellaneous cash transactions, and bills receivable.
Receivables also uses Receivables Activities to account for tax if you calculate tax on these
activities.
Navigation: Receivables --> Setup --> Receipts --> Receivable Activities.
Application: These profile option values affect the way a given application runs.
Responsibility: These profile option values affect the way applications run for all users of a
given responsibility.
User: These profile option values affect the way applications run for a specific application user.
The values you enter for options at the User level supersede the values that your system
administrator has entered for you for these options.
Each of these user profile options affect the behavior of Receivables in different contexts. In
Receivables, operations that profile options can affect include receipt application, the entry of
adjustments, the creation
and remittance of automatic receipts and taxes, and posting to your general ledger.
You may also have additional user profile options on your system that are specific to applications
other than Receivables.
To change profile options at the Site, Application, or Responsibility level, choose the System
Administrator responsibility, then navigate to the Personal Profile Values window. Query the
Profile Name field to
display the profile options with their current settings, make your changes, then save your work.
You can change profile options at the user level in the Personal Profile Values window. To do this,
navigate to the Personal Profile Values window, query the profile option to change, enter a new
User Value, then save your work. Generally, your system administrator sets and updates profile
values at each level.
Attention: For any changes that you make to profile options to take effect, you must either exit,
and then reenter Receivables, or switch responsibilities.
Define Salespersons:
Define salespersons to allocate sales credits to invoices, debit memos, and commitments. If you
do not want to assign sales credits for a transaction, you can enter No Sales Credit. If
AutoAccounting depends on salesperson, Receivables uses the general ledger accounts that you
enter for each salesperson along with your AutoAccounting rules to determine the default
revenue, freight, and receivable accounts for transactions.
Define Customer Profile Classes:
Define customer profile classes to categorize customers based on credit, payment terms,
statement cycle, automatic receipt, finance charge, dunning, and invoicing information. When
you initially set up your customers, you assign each customer to a profile class. To customize the
profile class for a specific customer, use the Customer Profile Classes window.
Navigation: Receivables --> Customers --> Profile Classes.
In Profile Class window enter the following information.
Define customers and customer site uses to enter transactions and receipts in Receivables.
When you enter a new customer, you must enter the customers name, profile class and number
(if automatic customer numbering is set to No). You can optionally enter customer addresses,
contacts, site uses and telephone numbers. You must enter all the components of your chosen
Sales Tax Location Flexfield when entering customer addresses in your home country.
Navigation: Receivables --> Customers --> Standard.
Define RemitTo Addresses:
Define remitto addresses to inform your customers where to send payments. Associate each
remitto address with one or more state, country, and postal code combinations.
For example, if you want your customers in California and Nevada to send their payments to a
specific address, enter the remitto address and associate the states CA and NV with this
address. Remitto addresses are assigned based on the billto address on the transaction.
Click on Apply.
Enter the country name in the same page and then click on the GO.
Click on the Receipts form Create button.