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General Ledger Cycle

1. Opening the periods

2. Enter / Import journals
3. Review journals
4. Post journals Inquiry
5. If require Run revaluation
6. If require Run Translation for consolidation
7. Review results
8. Prepare financials
9. Close the current period
10. Open next period
11.
FLEX FIELDS IN GENERAL LEDGER:
1.
2.

Key Flex Fields

Descriptive Flex Fields

Key Flex Fields:

General

Ledger:
Accounting KFF
Reporting Attribute KFF For reporting purpose.
GL Ledger KFF It is a mirror image of Accounting KFF. It is only for internal purpose. It is used
exclusively for certain GL features such as Mass Allocations, Recurring Journals and FSG Reports.

Receivables:

Sales Tax Location Flex Field

Territory Flex Field

Fixed Assets:

Category KFF

Asset Location KFF

Asset key KFF

Flex Field Qualifiers (Assign to Segments)

1.
2.
3.
4.
5.
6.

Balancing Segment FFQ

Cost Center Segment FFQ
Natural Accounts Segment FFQ
Inter Company Segment FFQ
Secondary Tracking Segment FFQ
Management FFQ

Segment Qualifiers (Assign to Segment values)

1. Allow Budgeting
2. Allow Posting
3. Account type (Assets / Liability / Expenses / Revenue / Ownership)
4. Third party control
5. Reconcile

Assignment of FFQ to Segments

Company

Balancing Segment FFQ

Intercompany Segment FFQ

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Note:

1.
2.
3.
4.
5.
6.

Department
Accounts

Cost Center Segment

Natural Accounts Segment FFQ

One FFQ we can use only one time.

One segment we can assign to more than one FFQ.
We can create maximum 30 segments apart from General Ledger Segment (Total 31).
Balancing Segment: We generally assign these qualifiers for Company segment, where usually balances
are maintained.
Cost Centre Segment: We generally assign these qualifiers to Department segment, where costs are
spend or even gain.
Natural Accounts Segment: We generally assign these qualifiers for Accounts segment, where it consist
of accounting categories such as Expenses, Revenue, Assets, Liabilities and ownership.
Inter Company Segment: (Optional): We generally assign these qualifiers for COMPANY segment, using
these qualifiers we are able to perform intercompany transactions.
Secondary tracking Segment: (Optional): Using these qualifiers we are able to identify secondary tracking
segment to process income statement, closing transactions and revaluation.
Management Segment Qualifier:
MSQ is used in Data Access set for allowing privileges to user other than balancing segment values.

But we cannot assign Management segment FFQ for the segment for which already Intercompany,
Balancing and Natural accounts FFQ are assigned.
Compile Structure:

Segment separator is used to separate the segments in the code combination. (Dash, Period, Pipe and
Custom).

Allow Dynamic Inserts: If we enable Allow Dynamic inserts, then we are able to enter the all possible
code combinations at the time of transaction entry.
If we want to know how many code combinations in our structure, multiply the number of values
across the segments.
If we disable allow dynamic inserts, we cannot enter all possible code combinations at the time of
transaction entry.

Enable Freeze Flex Field Definition and click on Compile button.

The structure information will get stored in a tabular form GL_Code_Combinations_KFV.

Primary Ledger (Set of Books) 4 Cs

4 Cs

Chart of Accounts (Structure, Segments & Segment values)

Currency
Calendar
Accounting Convention Method (Accrual / Cash)

Pre requisites for Chart of Accounts

Value Set
Structure and Segments
Segment Values

Value Set:

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Value set is Set of rules or properties which are going to enforce or attach to segments.
Upon enforcing or attaching value set to the Segment, your segment will behave or act according to the value set.

Validation Types in Value Set

Independent: If validation type is independent, we can define values for the value set and we can use at
the time of transaction time.

Dependent: If validation type is dependent, then we cannot define values for value set. Dependent values
are always depending on the independent value set.

None:If validation type is none, we cannot define values for the value set, User can enter desire value at
the time of transactions entry.

Pair & Special: Used in the programs to add additional pop up window for parameters.

Table: If validation type is table, then we cannot define values but we can use values from tables.

Translate dependent & Independent: We use to translate the segment values into desire language.
Contents of Value Set

List Type

Security Type

Format type

Validation Type

3 Types

3 Types

7 Types

8 Types

1. List of Values

1. No Security

1. Char

1. Dependent

2. Long List of Values

2. Hierarchical

2. Date

2. Independent

3. Pop List

3. Non Hierarchical

3. Date Time

3. None

4. Number

4. Pair

5. Standard date

5. Special

6. Standard date

6. Table

time

7. Time

7. Translatable

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Independent

8. Translatable
Dependent

Currency:
Monitory currency:
Functional Currency,
Foreign Currency
Non Monitory currency:
STAT Currency
Calendar:
Accounting Calendar: Normal Calendar & Fiscal Calendar
Transaction Calendar

Period Type

General ledger have 3 standard period types:

1. Month
2. Quarter
3. Half yearly
4. Year
Period types are used in defining Accounting Calendar.
Each ledger has an associated period type.
When you assign a calendar to a ledger using Accounting Setup Manager, the ledger only accesses the
periods with the appropriate period type.
You can assign up to 366 accounting periods per fiscal year for any period type, and maintain actual
balances for those periods.
For example, you could define a Week period type and specify 52 periods per year.
However, for budgets you can only use the first 60 periods.

Calendar Status:
1. Open
2. Closed
3. Permanently Closed
4. Future Open
5. Never Opened
Year Types
1. Calendar
2. Fiscal
There are 5 types of period status:
Status
Entry
1. Never opened
X
2. Open

3. Closed
X
4. Future

Posting
X

X
X

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5.

Permanently Closed

Mandatory Accounts for Set of Books

1. Retained Earnings Account (Ownership)
2. Translation Adjustment Account (Expenses)
3. Suspense Account (Assets / Liabilities)
4. Rounding Difference Account (Expenses)
5. Reserve for Encumbrance (Ownership)
6. Net Income (Expenses / revenue)

Note:
From the above Retained Earnings account is mandatory to create primary ledger. Remaining 5 accounts are
optionally mandatory based on the requirement.
1.
2.

3.

Retained Earnings:
Retained earnings are accumulated profits. Whereas net income means current year profits
Translation adjustment account:
Translation is conversion of functional currency or local currency into foreign currency for reporting
purpose.
Translation basically uses 2 rates: period average rate & period end rate.
Translation uses period average rate to translate all profit and loss account balances. (Expenses &
revenue)
Translation uses period end rate to translate all balance sheet balances. (Assets & Liabilities)
Suspense Account:
Whenever, user is going to enter Debit without credit or credit without debit or debit balances are not
matching with credit balances, in this case, system will automatically populate Suspense account.
Error: 6 unbalanced journal entry, suspense not allowed

Conversion rate types: 3

1. Spot
2. Corporate
3. User (Reporting)
Spot:
An exchange rate which you enter to perform conversion based on the rate on a specific date. It applies to the
immediate delivery of a currency.
Corporate:
This rate is generally a standard market rate determined by senior financial management for use throughout the
organization.
User (Reporting):
An exchange rate you specify when you enter a foreign currency journal entry.
Journal Source

It is a Journal component; it is used to identify the ORIGIN of the journal.

To define journal source: Setup Journal Sources.
When we import data from legacy systems to GL we require source names.

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Importing journal Reference:

To import detailed information from summary journals we use this option.
Require Journal approval:
This field is used to get the journal approval by higher management for different journal sources.
Import using key: This is used to define whether journals will be imported using source key or not.

Freeze Journals:
To freeze the journal source, preventing users from making changes to any UN posted journals from that
source, or reversing journals for Sub ledger accounting journal sources.

Effective date Rule:

1. Fail
2. Leave alone
3. Roll Date

Fail: Journal Import will reject transactions when the effective date is not a valid business day. No posting
takes place.
Leave Alone: Journal import will accept all transactions regardless of the effective date.
Roll Date: Journal Import will accept the transaction, but roll the effective date back to the nearest valid
business day within the same period. If there is no prior valid business day within the same period, the
effective date is rolled forward.
Note: The Effective Date Rule field will not appear unless you have average balance processing enabled
for at least one ledger.

Journal category

Journal Category determines the purpose or type of the journal entry.

When you enter a journal you specify a journal category.

Examples:
1. AP Invoices
2. AP Payments
3. Adjustment
4. Budget
5. Intercompany
6. Inventory
7. Payments
8. Payroll
9. Receipts
10. Year-end close.
Enter Journals

1.

It is used to record the day to day business transactions. It contains Dr and Cr lines. Always debit must be
equal to credit.
You can enter several types of journal entries, including foreign currency journals, statistical journals, and
intercompany journals.
Journals can be created in two ways:
1. Manual 2. Import
manual:
Enter journals manually by using navigator
Navigation to enter Journal:
Journals Enter
Manual journals can be entering in 2 ways:
1. Individual Journal
2. Batch Journal

Journal body contains two areas:

1. Header
2. Lines

We have 2 types of methods:

1. Standard Journal
2. Average Journals

We have 3 types of balances:

1. Actual
2. Budget

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3.

Encumbrance.

Reverse Journal

We generally reverse that journal, which got entered also got posted, where you find there is an error in
the posted entry.
Once the journal is got posted it wouldnt allow the user to make any changes.
The only solution or remedy is to reverse the journal.
In order to reverse the journal, first review the journal, use reverse button available in the journal
window, also indicate the period where the reversal entry should get created.
Navigation:
Journal Entry
Once we reverse the journal system will create one un posted journal, showing the earlier debit balance
to credit side & earlier credit balance to debit side.
Post this UN posted journal.
After the journal reversal the particular account in the journal will show the balance Zero.
Reverse is of two types:
Change sign (Profile option is required)
Switch Dr/Cr.

BUDGETS
Budget is nothing but: better planning and controlling of the funds for future usage.
In oracle we can define budgets up to 60 periods
There are 2 types of budgets
1. Planning budget (Revenue Budget)
2.

Funding budget (Expenses Budget)

Planning Budget
This is used for only planning purpose. System will not be controlling under this budget.
For planning budget we cannot create budget journals

Funding Budget
Under funding budget we can plan and control the expenses.
We can create budget journals in funding budget.
Setup Steps:
1. Create Reserve for encumbrance account
2.

Enable:

budgetary control

Require Budgetary journals

Assign Reserve for Encumbrance account

At Ledger level
3.

Define expenditure head of accounts

4.

Define Budget and open next year

5.

Define Budget organization:

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Set sequence
Set password for budget
Set range for accounts
Create Budget Rules
Select funds check level
Select amount type

6.

Create Budget Journals

7.

Query the budget journals and post

8.

Create journal entry using budget account

Balance types: 3
1.
2.
3.

Budget
Actual
Encumbrance

Budget balances are planned amounts at initial stage.

Actual balances are paid amounts so far.
Encumbrance balances are reserved amounts for future payments.
Funds Check Level: 3
1.
2.
3.

Absolute
Advisory
None

If we use absolute we cannot use more than the amount what we specified.
If we use Advisory, system will give caution if we cross the amount given
If we use None, System will not give any caution, and we can enter the more amounts also.
Amount Types: 4
1.
2.
3.
4.

PTD:
QTD:
YTD:
PJTD:

Period to date:
Quarter to date:
Year to date:
Project to date:

One month
3 months
1 year
Depends on project beginning date

Budget Rules: 8
1.
2.
3.
4.
5.
6.
7.
8.

Divide evenly
Repeat per period
4/4/5
4/5/4
5/4/4
Prior year budget monetary
Current year budget monetary
Prior year budget STAT

Mass Allocation
Mass allocation means:
Allocation of Revenues and cost expenses across any cost center,
Department or division by using of parent values by using simple formula.
Example: Rent paid based on square feet used.
Formula:

T = A x B/C

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A = Cost pool Amount
B = Usage factor
C = Total Usage
T = Target Account
O = off set account
Segment types in mass allocation:
1. Constant2. Looping
3. Summing
Mass Allocation Methods:
1. Full type allocation
2. Incremental Allocation

11i Steps:
1. Define STAT Currency
2. Create SFT account
3. Create STAT journal with SFT account
4. Set up parent department and set up parent & child relation
5. Prepare mass allocation formula
6. Run mass allocation
7. Review and post journal
Mass allocation formula:
Formula
Amount
A
100000
B
C
T
O
-

Account
C-L-C-C
C-S-C-C
C-L-C-C
C-C-C-C

Currency
STAT
STAT
INR
INR

R 12 Steps:
Step: 1 Create Usage factor account and Cost pool account
Nav:
Setup Financials Flex fields key Values
Step: 2 Define Parent and child values for departments
Nav:
Setup Financials Flex fields key Values
Step: 3 Create cost pool journal and post.
Nav:
Journal Enter
Step: 4 Create and Post Statistical Journal
Nav:
Journal Enter
Step: 5 Define and Generate Mass allocation formula
Nav:
Journals Define Allocation
Step: 6 Query mass allocation journal
Nav:
Journals Enter
Types of Journals
1. Functional Currency Journal
2. Foreign Currency Journal
3. Recurring Journal
4. Tax Journal
5. Revaluation Journal
6. Suspense Journal
7. Reverse Journal
8. Mass allocation Journal
9. STAT currency Journal
10. Budget Journal
11. Batch Journal
12. Manual Encumbrance Journal
Suspense Journal

As per accounting principles Debit amount should always equal to Credit amount for the same Company
Value.

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If both amounts are not equal, the difference amount will go to Suspense Account.
Setup required for Suspense Journal:
1. Create Suspense Account (Expenses / Revenue)
Navigation:
Setup Financials Flex Fields Key Values.
2. Enable suspense account feature at ledger level under journal processing tab
Navigation: Setup Financials Accounting setup manager Accounting setup
3. Define Suspense account Rules
Navigation:
Setup Accounts Suspense
4. Create Journal / Review Journal
Navigation: Journal Enter
Recurring Journal

Journals which are repeating every accounting period is called a recurring journal.

Recurring journals are 3 types:

1.
2.
3.

Standard Recurring Journal

Skeleton Recurring Journal
Formula Recurring Journal

Standard Recurring Journal:

Under standard recurring journal method same accounts with the same amounts will be affected with the each
accounting period. We know account and amount already.
Skeleton Recurring Journal:
Under skeleton journal method partial information will be entered at the time of recurring journal creation. We
know the account but do not know the amount.
Formula Recurring Journal:
Using formula recurring method, journal lines amounts will be calculated by recurring journal program based on
simple formula.
Recurring Journal Setup

Step:1

Define Recurring Journal

Navigation:

Journals Define Recurring.

Line:1
Enter Expenses account (Debit Account) and the amount for Standard Recurring Journal
Enter only Debit account for Skeleton recurring, do not enter amount
Enter debit account & enter the formula for the amount for Formula recurring journal

Line: 2
Enter the credit account
We can enter 9999 lines in a recurring journal. In which 9998 lines are for debit lines and only one line is
for credit line. We call this line as offset account line. Hence we have to enter line 2 as a offset line and
key in the number 9999 in line 2.
Do not enter amount for line 2. System will add all the debit lines amount and consider the credit amount
as offset account.
If you wish to enter more credit lines, we have to give negative sign for the lines, for example -9998,
-9997 etc.
Step: 2
Generate the recurring journal = Click on Generate button
Say Submit
Schedule the journals for recurring.
Enter parameters

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Run program.
Step: 3
Ensure Concurrent program completed Normal
View Request
Step: 4
Query the recurring journal and post.
Journal Enter.
With the above report system will generate un posted journals in GL.,
With the source: recurring.
Post the journals after review.

REVALUATION
Revaluation reflects the changes in the exchange rates.
For example:
Invoice May 5th $1000 Rs 45
Rs 45000
Payment May 10th $1000 Rs 47
Rs 47000
If paid on
May 25th $1000 Rs 43
Rs 43000
In the above example gain or loss is Rs 2000
Setup Steps:
1. Define un realized gain or loss accounts
2.

Define exchange rate type

3.

Define daily rates for the date of journal entry (USD INR)

4.

Define daily rates for the date of Payment (USD INR)

5.

Enter foreign currency journal

6.

Run revaluation

Enter name and description for revaluation

Currency Options: Choose single currency & USD
Rate Options: Choose Daily Rates & Exchange rate type
Choose Unrealized gain & loss accounts
Choose revaluation ranges
Say RevalueSubmit request window will openSystem choose automatically program as Program
Revalue balances
Choose parameters:
Ledger

Revaluation batch

Period

Effective date

Say OK
Submit
View request
Ensure program completed normal
7. Query revalue journal and post it
Tax Journal
Steps:
1.
2.
3.
4.
Manual

Enable Journal Entry Tax at Ledger level under Journalling tab

Define input tax codes and assign GL account
Set up tax options: Allow tax code override
Enter and post journal
Encumbrance Journal

Encumbrance means is reserve the funds for future usage.

We do not do this practice in real time.

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Navigation:

Journal Encumbrance

Category:
Expenditure
Source: Encumbrance
Balance type:
Encumbrance
Type:
Encumbrance

Approval is not applicable

TRANSLATION
Translation is used to convert the accounting balances from Functional Currency to Foreign currency at
Balances level
This activity is done at a particular period end
This is an off line activity
Translation is done at balances level
We can report in number of currencies No limit
We use 3 types of rates:
1. Period end rate:
Assets & Liabilities
2. Average rate:
Expenses & Revenues
3. Historical rate:
Ownership
Translation is part of Consolidation
We cannot run Translation for first period

Account type
Expenses
Revenue
Assets
Liabilities
Ownership / Equity

Rate
Period average rate
Period average rate
Period end rates
Period end rates
Historical rates

Setup Steps:
1. Create Cumulative Translation Adjustment account
2.

Define exchange rate type

3.

Define daily rates

4.

Assign rate type & CTA account to ledger

5.

Run Translation

6.

Run Trial balance Translation report

** Exchange rate type is used to build relationship between the two currencies
There are various exchange rate types
1. Corporate
2.

Marketing

3.

User

4.

Spot

Corporate type is used for rates which are defined by the higher management in the organization.
Market rate is at present what the rate in the market is
User rate: At the time of transaction entry user can enter applicable exchange rates
Spot rate is a kind of market rate
MRC MULTI REPORTING CURRENCY

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R12 = GL THEORY
To convert the balances from functional currency to foreign currency at transaction level (at journal entry level)
we use reporting currency.
In reporting feature we will be having one primary ledger and unlimited reporting ledgers.
Setup Steps:
1. Define rounding difference account
2.

Assign rounding difference tracking asset at ledger level

3.

Define exchange rate type

4.

Define daily rates

5.

Define reporting currency options at primary ledger level

6.

Define reporting GL responsibility

7.

Assign reporting ledger to responsibility

8.

Assign responsibility to user

9.

Open periods in reporting ledger

10. Create journal and post in primary ledger

Difference of MRC & Translation

MRC
Transaction level
Up to 8 Currencies
On line activity
Daily Rates
We can run at any point of time

TRANSLATION
Balance Level
No limit of Currencies
Off line activity
Average, Period end & historical rates
Part of consolidation
We cannot run for first period

Auto Post

We can post the journals automatically by specifying the some criteria in Auto post criteria set.
Criteria could be: combinations of ledger or ledger set, journal source, journal category, balance type, and
period.
Once you define an Auto Post criteria set, run the Auto Post program to select and post any journal
batches that meet the criteria defined by the criteria set.
You can also schedule the Auto Post program to run at specific times and submission intervals.
You can submit the Auto Post program or schedule Auto Post runs directly from the Auto Post Criteria Sets
window. Alternatively, you can use the Submit Request window.

Steps:
1.

Define auto post criteria

Navigation:
Set up Journal Auto Post
2. Enter Journal
Navigation: Journal Enter
Enter Journal lines
Save journal
Do not post
Check to see Auto post program completed successfully
Auto Reversal
Auto reverse is nothing but, reversing journal automatically based on the criteria that we specify.
Criteria could be:
Journal category
Reversal Method
Reversal period

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R12 = GL THEORY
If you routinely generate and post large numbers of journal reversals as part of your month end closing and
opening procedures, you can save time and reduce entry errors by using Automatic Journal Reversal to
automatically generate and post your journal reversals.
Prerequisites for Auto Reversal:

The journal balance type is Actual.

The journal category is enabled to be Auto reversed.

The journal is posted but not yet reversed.

The journal reversal period is open or future enterable.

Note: Automatic Journal Reversal reverses posted journals of the balance type Actual. You
cannot use this feature to automate budget or encumbrance journal reversals.

Auto Reverse - Set up steps:

1. Define reversal criteria
Navigation:
Set up Journal Auto reverse
Choose:
Category
Method: Switch Dr / Cr
Reverse period
Reversal date
Enable check box:
Auto reverse
Auto post reverse
2. Enter one journal with above category
3. Perform inquiry on account balances
4. Run Program Automatic reversal
Navigation: Reports Request Standard
5. Perform inquiry on account balances
SEQUENTIAL NUMBERING
Sequential numbering is used to assign unique number to the various transactions.
System will assign serial numbers to the data flows in to General Ledger through sub ledger accounts
based on the category.
The transactions are Journals, AP Invoices, AP payments, Bank accounts, AR invoices and AR receipts etc.
Sequencing information is available for querying and display of journals.
You can call either sequential numbering or Document category or voucher numbers.
SLA provides 2 different sequence mechanisms for sub ledger journal entries:
1. Accounting Sequence
2. Reporting Sequence

Accounting Sequence:
The accounting sequence is assigned to sub ledger accounting journal entries at the time that the journal entry is
completed.

Reporting sequence:
The reporting sequence is assigned to both sub ledger accounting journal entries & General Ledger journal entries,
when the General Ledger period is closed.
This sequence is used by most of the legal reports required in some countries, as the main sorting criteria to
display the journal entries.
Reporting sequence is optional
These two sequences are not mutually exclusive, and, can coexist in the same journal entry
Setup Steps
1. Define Sequential numbering profile option at responsibility level
Navigation:
2.

System administrator
Profile System
Define sequential numbering

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Navigation:
3.

System administrator
Application Sequence numbering Define
Assign sequential number to the Category
Navigation:

4.

Create Journal
Navigation:

System administrator
Application Sequential numbering Assign
General ledger
Journals Enter

** Automatic: System generate number after saving journal

** Manual: user has to enter number manually
** Gapless: No gap for the journals from different sources
JOURNAL APPROVAL
Journal approval is an additional security feature to post the journals using this feature we can define approval
limits for employees.
Setup steps:
1. Enable journal approval at ledger level

2.

Navigation:
General ledger
Setup Financials Accounting setup manager Accounting setup
Enable journal approval at journal source
Navigation:

3.

General ledger
Setup Journal Sources
Define approval limits for employees
Navigation:

4.

General Ledger
Setup Employees Limits
Create user and assign employee to user
Navigation:

5.

System Administrator
Security User Define
Log in with employee user and create journals
Navigation:

General ledger
Journals Enter
** in 11i: we have to assign profile option to GL Responsibility, that is, Journals: Allow preparer approval through
system administrator Navigation: Profile System

Approver Methods
1.
2.
3.

Go up management chain
Go Direct
One Stop then go direct

Difference between Security rules and cross validation rules

Security Rules (SR)

Cross validation rules (CVR)

SR enabled at Responsibility level

List of values are not displayed for those combination
where SR was enabled
No error message will displayed in SR
SR restrict permission for segment values

CVR enabled at structure & chart of accounts level

All list of values are displayed, but we will get error
message for invalid code combination
Error message will displayed in CVR
CVR restrict user for invalid code combination

SECURITY RULES

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R12 = GL THEORY
Security rules are used to restrict the user from entering segment values.
It will work at responsibility level.
Step: 1 Enable security at value set
Navigation: Set up Financials Flex fields Validation Sets
Step: 2 Enable securities at segment level
Navigation:Set up Financials Flex fields Key Segments
Step: 3 Define Security rules
Navigation: Setup Financials Flex Fields Key Security Define
Step: 4 Assign Security rules to the responsibility
Navigation: Setup Financials Flex Fields Key Security Assign
Step: 5 try to create Journal with 03 Company segment value
Navigation:Journal Entry
Say New Journal
You will see only 2 segments; restricted company value is not visible
If you try to enter restricted segment value, system will through error message
CROSS VALIDATION RULES
It is used to restrict the end users from entering code combinations.
It will work at structure level.
Step: 1 Enable cross validation rules at structure
Navigation: Setup Financials Flex Fields Key Segments
Step: 2 Define cross validation rules
Navigation: Setup Financials Flex Fields Key Rules
Step: 3 Enter journals using restricted code combination
Navigation:Journal Enter
System will through error message after you select the restricted code combination

DEFINITION ACCESS SET

Definition access set will work at Responsibility level.
DAS is used to provide access in 3 ways to the users for various definitions:
1. Use
2.

View

3.

Modify

Step: 1 Define Definition Access Set

Navigation: Set up Financials Definition Access sets Define
Step: 2 Assign Definition Access set to Responsibility
Navigation: Setup Financials Definition Access Sets Assign
Step: 3 Enable Security for accounting Calendar
Navigation: Setup Financials Calendars Accounting
Query your accounting calendar
Select check box Enable Security

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Say Assign Access
Choose Definition Access set
ALIASES
Aliases are used to define the short name for account code combinations
Step: 1 Define Aliases
Navigation:
Setup Financials Flex Fields Key Aliases
F11
Query your structure
Shorthand:
Select check box: Enabled
Enter Max alias size
Prompt: Short Name
Go to Alias, Descriptions tab
Enter alias name
Choose values for Template
Go to Aliases, Effective tab
Enter from date
Save
Step: 2 Compile Accounting Structure
Navigation:
Set up Financials Flex Fields Key Values
Step: 3 Enter Journal to check the Alias result
Navigation:Journals Enter

LEDGER SET
Ledger set is used to access multiple Ledgers information from single responsibility.
Using Ledger set we can group only Ledgers which are having same Chart of Accounts and same Calendars.
Step: 1 Define ledger sets
Navigation: Setup Financials Ledger Sets
Enter Name and Short name
Choose:
Chart of Accounts

Calendar

Default Ledger

All other ledgers you want to group

Save.
Step: 2 Assign Ledger set to responsibility
Navigation: System Administrator Profile System
Choose responsibility
Profile Option: GL: Data Access Set

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Choose Ledger set
If you assign both the profile options: GL Ledger Name & GL Data Access Set
System will choose first Data Access set
DESCRIPTIVE FLEX FIELD
If you want to have additional field in standard forms, DFF is used to capture the additional information of
organization.
Step: 1 Enable and Define DFF fields
Navigation: Setup Financials Flex Fields Descriptive Segments
Query Application: General Ledger
Title: Enter Journals: Journals
Prompt: Context or Enter DFF
Enable check boxes: Required & Displayed
Click on Segments
Enter the fields
Save
Close this window
Freeze Flex Field definition
Say Compile
Step: 2 Enter Journal to view DFF
Navigation: Journal Enter
New Journal
Enter Journal as usual
Click on DFF check box to enter DFF fields
CONSOLIDATION
Consolidation is used to consolidate the multiple subsidiary ledger information into parent ledger.
In other words, Consolidation is used for preparation of financial reports of parent and subsidiary companies.
If both companies are using different currencies, translation is required.
After translation data will be remain in the same books.
By using consolidation concept, we transfer data from subsidiary to Parent SOB.
For Translation of fixed assets balances, revaluation is required.
The difference will go to unrealized gain / loss account.
The difference of 3 rates will go to CTA Account (Cumulative Translation adjustment account)
There are 2 types of consolidation methods:
1. Balance
2.

Transaction

** Transaction method is used when we have same currency for parent and subsidiary ledger
** Balancing method is used when we have different currency in parent and subsidiary ledger
Consolidation Rules: 2
1. Segment Rules
2. Account Rules
Segment Rules again classified in to 3
1.
2.
3.

Use roll up rule from

Use copy value from
Assign single value

** If codes are different:

** If codes are same:
** If structure is different

Co2 Co1
Do1 Do1

Use roll up rule from

Use copy value from
Assign single value

Setup Steps:

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1.

Define Parent Ledger and required Subsidiary Ledgers

2.

Define Parent and Subsidiary GL Responsibilities

3.

Assign Ledgers to Responsibilities

4.

Assign responsibilities to users

5.

Define Exchange Rate type

6.

Define Daily Rates

7.

Complete currency translation options

8.

Define consolidation mapping in the Parent ledger

9.

Open periods in parent and subsidiary ledgers

10. Define Consolidation set

11. Enter and post journals in each subsidiary ledger
12. Run translation
13. Transfer data in to Parent ledger
14. Query the Consolidation journals in the Parent Ledger and post
Step: 7
Complete Currency translation options in parent and subsidiary ledger
Navigation:Setup Financials ASM Accounting Setup
Query your Ledger
Go
Update Accounting options
Click on Update of Ledger set up step
Go to Ledger Options tab
Under Currency Translation options
Choose:
Default period end rate type

Default period average rate

Cumulative Translation Adjustment Account

Say Finish
Step: 8 Define consolidations mapping in the parent ledger
Navigation: General Ledger Consolidation Define Consolidation
Name Consolidation Mapping
Enter Description
Consolidation Attributes:
Choose Parent Ledger

Choose Subsidiary Ledger

Currency: INR

Method: Balances

Usage: Standard

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Run Options:
Select check boxes
Run Journal Import

Create Summary Journals

Auto post

Click on Mapping
Enter Mapping Name and Description
Choose Target & Source Chart of Accounts
Click on Segment Rules
Choose Target Segment Values
Choose Action: Copy value from
Choose Source Segment values
Save and close this window
Choose mapping in Consolidation Definition window

Step: 10 Define Consolidation Set

Navigation: General Ledger Consolidation Define Consolidation set
** Consolidation set is used to group the consolidation mapping
Enter Consolidation set name
Choose Parent Ledger
Method: Balances
Choose Run options
Chose Consolidation mapping
Save
Step: 12 run the translation in each subsidiary ledger
Navigation:

Subsidiary ledger
Currency Translation

Step: 13 Transfer data in the parent ledger

Navigation:

Parent General Ledger

Consolidation Transfer Data Set

Choose Consolidation set

Usage: Standard
Balance Type: Actual
Currency: INR
Method: Balances

Subsidiary:
Amount type: PTD
Choose Period
Click on Query consolidation system will automatically select consolidation mapping
Say Transfer
Ensure program completed normal

ROLL UP GROUP & SUMMARY ACCOUNTS

Step: 1 Create summary accounts at chart of account level
Navigation:
Setup Financials Flex fields Key Values
Step: 2 Create Roll up group

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Navigation:
Setup Financials Flex fields Key Groups
Step: 3 Assign Roll up group to parent account at COA level
Navigation:
Setup Financials Flex fields Key values

Save

Select parent Account

Go to Value, Hierarchy, Qualifiers
Group: Choose Roll up group

Step: 4 Create Summary Accounts

Navigation:
Setup Accounts Summary

Name: Enter Name

Choose Ledger

Enter Template values:

Company: D
Department: D
Account: Choose Roll up group
Sub account: D
Product: D
Say OK
Choose: Earliest period
Save
Status: Adding
Go to View Request
Ensure program completed normal
Step: 5 Pass a journal entry with these accounts and post it
Navigation:
Journal Enter
Step: 6 Inquiry of Account balances
Navigation:
Inquiry Accounts
Choose Summary Template
Choose parent account
Click on Show balances
Average Balances

Average balances are in General used by banking sectors.

Through this we will find out the account balances for working days only
We have to setup working days and non-working days through Transaction Calendar in general ledger.
If you choose transaction calendar, system will not allow user to record any type of transaction on nonworking days, and we can see the balances on daily basis also.

Steps:
1.
2.
3.
4.
5.
6.
7.

Set up Transaction calendar

Create new set of books, assign this transaction calendar to new SOB
At SOB Enable average balances and assign Net income account (No, No, Revenue, No, No)
Create new responsibility for general ledger average balances
Assign profile option GL Ledger name to the GL responsibility
Assign this responsibility to user
Open periods in SOB

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8.
9.

Enter journal to see whether non-working days enabled or not

We can inquiry the balances by specific day wise (Only for Balance sheet items)

Financial Statement Generator FSG

FSG is dynamic tool in General Ledger to build reports such as Balance Sheet and Income Statement.
Through FSG we can build reports in simple manner without writing any codes.
The report is consist of Rows and Columns, and is used Row set & Column set to define rows and columns.

Steps:
1.

Define row set

Navigation: Reports Define Row set

2.

Define Column set

Navigation: Reports Define Column set

3.

Define Report
Navigation: Reports Define Report

4.

Run Report
Navigation: Reports Requests Financial

General Ledger period Closing Procedures

1. Set the status of the first accounting period in the new fiscal year to Future Entry.
Note: The first period of the new fiscal year should not be opened until all of the yearend processing for the last
period of the current year has completed.
2. Transfer data from all of your Subledger and feeder systems to the GL_INTERFACE table.
3. Run the Journal Import process to populate the GL_JE_BATCHES, GL_JE_HEADERS, and the GL_JE_LINES tables.
This can be done automatically from the Subledger systems, or manually from Oracle General Ledger.
4. Close the period for each Subledger. This prevents future Subledger transactions from being posted to General
Ledger in the same period.
5. Review the imported journal entries in Oracle General Ledger. You can review them online or in reports.
Reviewing journal entries before posting minimizes the number of corrections and changes that need to be made
after posting.
Below is a list of useful reports:
Journal Batch Summary Report
General Journal Report
Journal Entry Report
Journal Line Report
Journal Source Report
Journals by Document Number Report (when document sequencing is used)
Unposted Journals Report.
6. Post the imported journal entries. You can also schedule Auto post to pick up and post journals transferred from
Subledger on a regular basis. This reduces the volume of posting done at month end.
8. Revalue balances to update foreign currency journals to your functional currency equivalents.

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9. Post all journal entries, including: manual and reversals.
10. Update any unstable journal entries and then post them again.
Common reasons for unstable batches include:
Control total violations
Posting to unopened periods
Unbalanced journal entries
11. Run General Ledger reports, such as the Trial Balance reports, Account Analysis reports, and Journal reports.
12. Create and post adjusting entries and accruals in the adjusting period.
13. Run Trial Balance reports and other General Ledger Reports in the adjusting period after adjustments are made.
14. Close the last period of the fiscal year using the Open and Close Periods window.
15. Open the first period of the new fiscal year to launch a concurrent process to update account balances. Opening
the first period of a new year automatically closes your income statement and posts the difference to your retained
earnings account specified in the Set of Books form.
16. Run FSG reports for the last period of the year.

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