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Release 12 Functionality
An Oracle Whitepaper 2014
Author: Anshu Anand
Scope: Reconciliation functionality has always been available as a part Oracle Financials
Common County Applications (European Localizations). The functionality was later
incorporated as a part of Standard Release 12 application considering its advantages and
Business Applications.
The scope of this document is to describe the features of this functionality along with
Business Advantages it has to Offer. The document talks of the Setups required, Reporting,
Technical References and few of the Known Issues.
Page 1
TABLE OF CONTENTS
Overview .3
Application Setup.4
Populating References
Populating Line References Manually .6
Reconciliation Reference for Journal Header....7
Populating References from Submodules..9
Reconciliation Process
Manual Reconciliation..13
Automatic Reconciliation...15
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General Ledger Entry Reconciliation functionality lets you reconcile transactions in General
Ledger that should ideally balance to zero. Examples could be all clearing Accounts, VAT
control account, Suspense Accounts etc.
Let begin by taking a simple Business Example:
a) When you receive an Inventory item, Ideally the Journal entry would be
Inventory.Dr
AP Accrual account.Cr
b) When you book the Invoice and Validate, the journal that gets generated is
AP Accrual account.Dr
Control account/Party...Cr
c) Which means, once the cycle completes, the Credit and Debit for Accrual Account
should ideally knock off, leaving a final journal as follows:
Inventory.Dr
Control account/Party.Cr
Hence, at any point of time, once the cycle completes, the net for the AP Accrual Account
should be zero. Also, to clear this AP Accrual account, you should be able to give the
breakup of invoices not booked for the material received.
This is where our Journal Line Reconciliation helps us. It allows you to knock of such related
debit and credit pieces and also helps in identifying which transactions still remain
incomplete. This type of reconciliation requires users business discipline that all the invoices
will matched to a receipt and not PO, else the reconciliation for this account might go for a
toss.
Journal Reconciliation is available for journals of the balance type of Actual and Journal type
of Standard only. The application allows the Reconciliation process to be performed
manually or even automatically by populating references. The details of the same have been
provided in the following pages.
Page 3
APPLICATION SETUP
1.
Page 4
The Release 11i Reconciliation feature did not have Reconciliation Qualifier existing. One
had to create the GL Reconciliation Flag valueset with Values as Yes/No and then register the
same against the Natural Account Flexfield. (Ref Doc Id: 1041211.6)
If you are enabling the Reconciliation Reference for an already existing Natural Account,
please ensure to the Program - Inherit Segment Value Attributes to ensure the Reconciliation Flag
enable is cascaded to the related code combinations as well.
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Page 6
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Step2: Now Enter the Journal Lines and see the Reconciliation Reference
populate automatically
Navigation: Journal -> Enter
Header References can be created using Journal Enter form only. It is not possible to import
references for headers either from the third party tool, Web ADI or even using a standard
submodule, since the table gl_interface does not provide for it.
Page 8
1. Query a seeded Journal Line Type and copy it by clicking on the Copy button at
the bottom left of the form
2. Give your Journal Line Type code, name, and description a meaningful name.
3. Ensure the Transfer to GL field is chosen as Detail
Page 9
Step2:
1. Click on the Accounting Attribute Assignments button at the bottom right of the
form
Page 10
A Source signifies the field you would wish to populate the reconciliation reference
against while creating the transaction in the submodule. In the example above, we
have chosen the source as Invoice Distribution Reference. Hence, whatever
message you record against the Description field of an Invoice Distribution shall get
cascaded as the Journal Line Reconciliation Reference in General Ledger.
One could also choose source to be Invoice Description, Invoice Amount etc, based
on the Business Requirement.
3. Save.
Step3:
Navigation: Setup > Financials > Subledger Accounting > Accounting Methods
Builder > Methods and Definitions > Journal Line Definitions
1. Link the Journal Line Type just created to the Journal Line Definition. Copy a
seeded one and create your own if needed.
Page 11
Step4:
Ensure that the JLD is already linked to the Application Accounting Definition,
validate the Application Accounting Definition either in the form or via the concurrent
program 'Validate Application Accounting Definitions'.
Assuming also that the Application Accounting Definition is already linked to the
Subledger Accounting Method which in turn is already linked with the ledger, Create
Accounting can now be run.
Step5: Create a Transaction in the Submodule and run the Import Program
Notice that the Invoice Distribution Description is populated as AA May02.
Step6: Journal gets populated in General Ledger with the Line References as per
the setup.
Page 12
1.
Manual Reconciliation
General Ledger allows you to reconcile transactions by choosing the relevant journal
lines manually. In the Reconciliation Lines window, you can query the transactions
that are available for reconciliation and select the transactions that you want to
reconcile with each other. If the sum total of the selected transactions is equal to
zero when you save the reconciliation, then General Ledger marks the journal lines
as reconciled. You can reconcile transactions by the entered debit or credit amounts.
Step1: Query for the desired Journal Lines
Navigation: Journals -> Reconciliation -> Reconcile
Choose the desired parameters. Please note that its only the Ledger, Currency and
Period that is mandatory. Others could be left blank. Choosing the Reconciliation
Reference as blank shall list all the Journal lines irrespective of them having a
reference value populated or not.
Page 13
Step3: Reconcile
Once the required lines are selected, simply click on the Reconcile button.
General Ledger assigns a unique ID to each reconciliation that you perform. You can
use this Reconciliation ID to query the reconciliation in the Reverse Reconciled Lines
window, or to identify the reconciliation on the Reconciled Transactions report.
Page 14
2. Automatic Reconciliation
Application also provides a feature to automatically reconcile the journal lines using a
concurrent Program. The Program Reconciliation Automatic Reconciliation
takes similar parameters like the Manual Reconciliation form along the following:
a) Reconciliation Rule:
This parameter determines the logic to be used while reconciling the journal
lines.
Valid Options for Reconciliation Rule are
By Account and Reference- Match reconciliation transactions that share the
same account code combination and reconciliation reference.
By Balancing Segment and Reference- Match reconciliation transactions
that share the same balancing segment value and reconciliation reference.
By Balancing Segment, Natural Account and Blank Reference- Match
transactions that share the same balancing segment value, natural account and
have no reconciliation reference
By Balancing Segment, Natural Account and Reference - Match
transactions that share the same balancing segment value, natural account and
reconciliation reference.
Please note the difference between Option 1 and Option 4. While Account in the
Option 1 refers to a Code Combination, the term Natural Account in the Option 4 refers to
the Flexfield qualifier Natural Account
Journal Line Reconciliation in R12
Page 15
b) Perform Reconciliation :
Page 16
If you notice, exactly the same reconciliation references get populated for the
Reporting Journal, once the original journal is posted in the Primary Ledger. In case
of Reporting ledgers set up at the Subledger level, the Submodule transfers the
same reconciliation reference to the Journal created at the Reporting ledger level as
well.
The Header level Reconciliations get replicated as well.
Page 17
Reversal Journals
Original Journal:
Reversed Journal
Page 18
MULTI-CURRENCY RECONCILIATION
Let us take an example. A business user buys an Asset for 1000 USD (which is the foreign
currency) at the rate of 2.0 and by the time the payment of this 1000 USD is made, the rate
changes from 2.0 to 3.0. Summing up, notice that though the accounted amounts for the
purchase and payments are different in the functional currency, the actual amount of
transaction in USD remains constant. Since a Purchase and its Payment ideally complete a
cycle, these two lines should be allowed to be reconciled.
Application allows reconciliation of transactions for a currency other than the Primary
currency as well. The reconciliation process expects the Entered Currency to total up to
Zero irrespective of the Accounted Amounts matching or not. It is not possible to reconcile
journals lines of one currency with the other.
In the example below, we have tried reconciling transactions for the USD currency. If you
notice, the application creates Reconciliation Id successfully for Journal lines where Entered
Debit less Entered Credit is zero but the Accounted Debit less Accounted Credit is not.
Entered Debit
Entered Credit
Accounted Debit
Accounted Credit
:
:
:
:
10
10
10
20
Page 19
RECONCILIATION REVERSAL
Reconciliation Reversal can be used to disassociate transactions that that have been
previously reconciled with each other.
In the Reverse Reconciliations window, you can query transactions that you
previously reconciled and select the transactions that you want to disassociate from
each other. If the sum total of the selected transactions is equal to zero when you
save the reconciliation reversal, then General Ledger marks the journal lines as
unreconciled. These transactions then become available for reconciliation again.
Lets take the same example of Reconciliation Id 13021 that we manually reconciled
in the previous example:
Step1: Query for the Reconciliation Id or Reference that you wish to
Unreconcile
Navigation: Journals -> Reconciliation -> Reverse
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Also, upon querying the table for the Journal header Id, note that the Reconciliation
Status identified by JG_ZZ_RECON_STATUS is set back to Unreconciled(U) and the
values populated for the Reconciliation Reference in the column JG_RECON_ID has
been removed as well.
Page 22
UPGRADE CONSIDERATIONS
Users who are planning to upgrade from 11i to R12 and have been using the
Reconciliation functionality in 11i, shall have to run Program - Upgrade Journal
Lines For Reconciliation (GLRCNM) as part of the upgrade to ensure the
reconciliation relevant data is available in Release 12. This program should be run as
part of the upgrade from 11i. It takes the journals from release 11i and adds them
to the table GL_JE_LINES_RECON and thus makes them available on the
reconciliation form.
The program cannot be run more than once. If you try to run it again it will issue a
warning to say it has already been run and the upgrade is done. Also, It can only be
run as part of an upgrade from release 11i, as it uses the information in release 11i
tables to populate the table GL_JE_LINES_RECON.
This program is also known to work for post-upgrade journals. The program spawns
another program Insert Journal Lines for Reconciliation (GLRCNINS) which
inserts into the gl_je_lines_recon table for every code combination that has
jgzz_recon_flag Y but the lines do not exists in gl_je_lines_recon.
Below the insert performed:
INSERT INTO gl_je_lines_recon
.
.
FROM gl_code_combinations c, gl_je_lines l ' ||
' WHERE c.code_combination_id between :start_id and :end_id ' ||
'AND c.code_combination_id = l.code_combination_id ' ||
'AND c.jgzz_recon_flag = ' || '''' || 'Y' || '''' ||
' AND NOT EXISTS ' ||
'(SELECT /*+ ORDERED INDEX(r gl_je_lines_recon_u1) */ 1 ' ||
'FROM gl_je_lines_recon r ' ||
'WHERE r.je_header_id = l.je_header_id ' ||
'AND r.je_line_num = l.je_line_num) ';
Page 23
REPORTS
Page 24
The report also takes parameters like Ledger Name, Currency, Period, Start & End
Dates and the Account Range you wish to run the report for.
Following is a sample output of the Report:
Page 25
TECHNICAL REFERENCE
Significance
The Journal Header Id
JE_LINE_NUMBER
JGZZ_RECON_STATUS
Reconciliation Status
U Unreconciled
R - Reconciled
JGZZ_RECON_DATE
JGZZ_RECON_ID
JGZZ_RECON_REFERENCE
Reconciliation Reference
2. Table GL_JE_LINES
Release 12 of the application does not populate any data in the table gl_je_lines
Column Name
JE_HEADER_ID
Significance
The Journal Header Id
JE_LINE_NUMBER
JGZZ_RECON_STATUS_11I
JGZZ_RECON_DATE_11I
JGZZ_RECON_ID_11I
JGZZ_RECON_REF_11I
Page 26
3. Table GL_JE_HEADERS
In case where the Reconciliation Reference is populated at the Journal header level,
the header referenced is also recorded in the table gl_je_headers
Column Name
JE_HEADER_ID
Significance
The Journal Header Id
NAME
Journal Name
JGZZ_RECON_REF
Please note the reconciliation reference is also stamped in the table GL_JE_LINES
_RECON for the journal lines that uses a Header Reference.
4. Table GL_INTERFACE
Column Name
LEDGER_ID
Significance
The Ledger Id
USER_JE_SOURCE_NAME
JGZZ_RECON_REF
To Re-iterate, It is not possible to import references for headers either from the third
party tool, Web ADI or even using a standard submodule, since the table gl_interface
does not provide for it. Table gl_interface provides for storing Reconciliation
References at Journal Lines level only.
Page 27
3. I donot see any concurrent Program getting fired upon clicking the
Reconcile button. Anything I am missing out on?
The Reconciliation Process does not fire any concurrent program as such. Click of
the Reconcile or Unreconcile button shall automatically launch the process.
4. Is there an Option that makes populating Reconciliation Reference
mandatory? There are cases where users miss on entering the references
while creating a transaction, causing issues with identification of the
right Journal Line during Reconciliation.
Though the reconciliation reference field is displayed, the entry of this data is
optional. Enhancement request 7410862 has been raised to request for a
possibility of making this field as mandatory.
We are looking at the possibility of a profile option or some means when enabling
reconciliation references for specific accounts, by which entry of the references,
during journal entry can be made mandatory. Until then a form personalization
could make this field mandatory, while the enhancement is not
approved/released.
5. On the Reconciliation form, after entering the selection criteria, is it
possible to select all the items listed at one go - A Select All Option.
Normally you have to select each item one at a time. With the current
design, if the customer has large number of lines to reconcile, it becomes
tedious and time consuming to select them one by one?
Currently this feature does not exist. Following Enhancement request has been
raised, Bug: 16566905 - GLXRCENT provide "Select All" Feature or Enable
"Edit -> Select All" On the Toolbar.
Page 28
Page 29
KNOWN ISSUES
S.No.
Issue
1
Automatic Reconciliation Program does
not reconcile corresponding Journal
lines even when sum of debit and sum
of credit equal zero.
This happens when there is negative
amount in debit or credit for example :
Debit = -1000
JGZZ_RECON_REF Field in
GL_JE_LINES_RECON is not getting
populated in Reporting Ledger
Possible Solution
Cause : The Issue was identified with
code of the Program over Bug Number
7291942
Solution: Apply Patch 7291942.
The Patch would upgrade the file version
for GLXRCAUT.rdf as follows:
For R12.0:
GLXRCAUT.rdf 20.6.12000000.3
For R12.1:
GLXRCAUT.rdf 120.6.12010000.3
120.9.12000000.5
120.4.12000000.1
120.9.12010000.5
120.4.12010000.1
Cause: The issue is due to Ledger setup Journal Reconciliation is not enabled.
Solution :
1. Navigate to Accounting Setup Manager
2. Query your Ledger
3. Select the Enable Journal
Reconciliation checkbox for the ledger in
the Ledger Options page.
Page 30
SNo.
Issue
4.
Possible Solution
Cause :
The cause was identified as a code issue
over Bug:13350390 - R12 GLXRCENT :
Tax Line Automatically Generated in
Journal Entry Cannot Appear
Solution :
Apply Patch:13350390
The Patch would Upgrade the file versions
as follows:
For R12.0:
glujetxb.pls
glujetxs.pls
120.6.12000000.3
120.4.12000000.1
For R12.1:
glujetxb.pls 120.7.12010000.2
glujetxs.pls 120.4.12010000.1
Cause :
The cause was identified as a code issue
over Bug 8980612 : General Ledger
Reconciliation Showing Encumbrance and
Budget Entries
Solution :
Apply Patch 8980612. The Patch would
Upgrade the file versions as follows:
For R12.0:
glgvwreg.ldt 120.16.12000000.12
glgvw.odf
120.24.12000000.12
For R12.1:
glgvwreg.ldt 120.16.12010000.13
glgvw.odf
120.24.12010000.14
Run following query to find out the
reconciliations
where
encumbrance/budget
journal
was
reconciled along with actual journals :
select rec.*
from gl_je_lines_recon rec
where rec.ledger_id = &ledger_id
and rec.jgzz_recon_status = 'R'
and rec.jgzz_recon_date is not null
and exists
(select 1 from gl_je_headers h
where h.ledger_id = rec.ledger_id
and h.je_header_id = rec.je_header_id
and h.actual_flag in ( 'E' , 'B' ));
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Thank You!!!
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