9/22/2017 Document 1328696.

R12/XTR: Journal Entry Actions - JEA Seups, White Paper (Doc ID 1328696.1)

In this Document

Goal
Solution
References

This document is being delivered to you via Oracle Support's Rapid Visibility (RaV) process and therefore has not been
subject to an independent technical review.
APPLIES TO:

Oracle Treasury - Version 11.5.8 to 12.2 [Release 11.5 to 12.2]

Information in this document applies to any platform.

GOAL

1. What is the meaning of JEA setups?

2. What is the navigation for JEA setups?
3. Please provide sample JEA setups?
4. Is there a Accounting white Paper?
5. Sample JEA setup for IRO type of deals?

SOLUTION

(1). Back Ground:

Deal Types and Product Types:

There are 16 different types of deals (for example, bonds, forward rate agreements, options) and 3 other deal-related
items (deal orders, exposures, and external exposures) that you can enter in Treasury. Each deal type is a generic version
of a financial instrument that is commonly used by treasurers (for example, bonds, stocks, foreign exchange contracts, or
negotiable securities). You can use each deal type as is, or combine several deals or deal types to create a more complex
deal.
Each deal type has the following attributes associated with it:

Deal Subtype: The deal subtype determines the cash flow direction and, as a result, the accounting for each deal. For
example, Forward Rate Agreement deals have a deal subtype of either Fund or Invest, whereas Foreign Exchange Option
deals have a deal subtype of either Purchase or Sell.

Product Type: The product type is a user-defined attribute that you can use to distinguish between similar deals with
different accounting methods. You must define at least one product type for each deal type that you intend to use, except
for current account balance transactions and intercompany transfer transactions.

Deal Status: Each deal has a set of deal statuses that can be assigned to it over the entire life of the deal. For example,
current, cancelled, expired, or closed. The deal status can change automatically based on an action taken (for example,
exercising an option or reselling a discounted security) or it can be manually changed (for example, changing an option
status to Expired).

Date Type: Each deal has a set of date types that are used for settlement, accounting, and reporting purposes. For
example, a bond has several dates associated with it: start date, maturity date, and coupon date.

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Amount Type: Each deal has a set of amount types, such as a deal's principal amount, interest amount, and adjusted
interest amount. You can create additional amount types for retail term money deals only.

Action: Some amount types have a set of actions that determine the cash flow accounting for the amount. For example,
interest amounts can be paid or received, or an accrual can be an original posting or a reversal.

Pricing Model: The pricing model is used to calculate the fair value of the deal during a mark to market revaluation. A set
of default pricing models is supplied by Treasury. You can create custom pricing models for each deal type.

Example:

1. Journal output does not contain the deal could be because of JEA set up. If you do the following query from SQL command
line:
select amoun_date, date_type, amount_type, action_code, amount from xtr_deal_date_amounts where deal_number = (your
deal no) and transaction_number = (your trans no)

Suppose you should see the following result: (without any reneg or consideration for this deal):

amount_date date_type amount_type action_code amount

---------- ---------- ----------- ----------- --------
8-AUG-14 COMENCE PRINFLW INCRSE 1000
8-AUG-14 DEALT N/A 0
8-AUG-14 LIMIT LIMIT 1000

JEA setup needs to map the above rows in order to be shown in the journals.

2. Check JEA setups:

select * from xtr_journal_entry_actions

where Company_code = 'PROVIDE'
and deal_type = 'PROVIDE'
and deal_subtype = 'PROVIDE'
and portfolio_code = 'PROVIDE'
and product_type = 'PROVIDE';

A1: JEA Setups Meanings:

DATE TYPE:

ACCRUL - ACCRUAL DATE

COMMENCE - ROLLOVER DATE
DEALT - DEALT DATE
RATESET - RATESET DATE
REVAL - REVALUATION DATE
SETTLE - ACTUAL SETTLEMENT

Value - The date the foreign exchange contract is settled.

Dealt - The date on which the foreign exchange contract was entered into.

AMOUNT TYPE: Each deal has a set of amount types, such as a deal's principal amount, interest amount, and adjusted interest
amount. You can create additional amount types for retail term money deals only.

CYREAL - CURRENCY EXCHANGE REALIZED

CCYUNRL - CURRENCY EXCHANGE UNREAL
FACEVAL - FACE VALUE AMOUNT
INITIAL - INITIAL PRINCIPAL
INTADJ - ACCUED INTEREST
INTRFND - PREPAID INTEREST REFUND
INTSET - FORECAST INTEREST
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PRINFLW - PRONICIPAL
REAL - REALIZED GAIN/LOSS
TAX - TAX AMOUNT
UNREAL - UNREALIZED GAIN/LOSS
SLPREM - Straight line premium.
SLDISC - Straight line discount.
BAL_FV - The balance of the original face value of the bond.
CCYAMRL - The realized currency gain or loss that has been amortized.
CCYREAL - The realized currency gain or loss.
CCYUNRL - The unrealized currency gain or loss.
CPMADJ - The straight-line adjusted coupon amount.
DISC - The discount amount of the bond
EFDISC - The effective amount of the bond discount
EFPREM - The effective amount of the bond premium
INT - The interest amount accrued on the bond.
INT_FV - The face value of the bond interest.
REALMTM - The realized mark to market gain or loss.
REALAMC - The realized gain or loss that has been amortized.
SLUAMD - The unamortized balance of discount
SLUAMP - The unamortized balance of premium.

ACTION CODE: Some amount types have a set of actions that determine the cash flow accounting for the amount. For
example, interest amounts can be paid or received, or an accrual can be an original posting or a reversal.

POS - POSTING
REV - REVERSAL
INCRSE - INCREASE PRINCIPAL
DECRSE - DECREASE PRINCIPAL

BANK GL: If you want the journal action to refer to the general ledger number related to the company's cash flow bank
account, select the Bank GL check box. Otherwise, enter an account number in the GL Account field.

PRIN GL: If this is an intercompany funding deal, direct journal actions to either the principal or the interest General Ledger
account number by selecting the Prin GL or the Int GL check box.

INT GL: These check boxes are only available for non-accrual and non-revaluation date types.

DEBIT / CREDIT: As the case may be

GL Account: GL CODES as per you requirements

EFFECTIVE FROM: DATE

EFFECTIVE TO: DATE
COMMENTS: For Your Understanding

A2: Navigation: Oracle Treasury>Setups>SYSTEMS>Journal Entry Action (JEA)

A3: Attached: NewSampleJEAs.pdf which has various samples of JEA setups.

A4: Attached: Treasury.pdf; a white paper: Accounting in Oracle Treasury, An Oracle White Paper, March 2007

A5: Example: IRO Deal Type:

Following should be the valid combination of date types and amount types that will create entries:

Date Types Amount Types

ACCRUAL PREMADJ, INTADJ

COMENCE, DEALT, EXPIRY, MATURE, PREMIUM, SETTLE FACEVAL, PREMIUM, SETTLE

REVAL UNREAL, REAL, CCYREAL

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A6: JEA Structure for Hedge accounting:

Please down load the attachment to this note as an example: Hedging JEA Setup.docx

(2). Setups:
Journal Entry Actions: Use the Journal Entry Actions window to define the General Ledger accounts that are used to
generate accounting entries for each combination of deal type, deal subtype, product type, and portfolio within a company. To
ensure a balanced ledger, it is critical that accounts and journals are set up completely and correctly.
Note: For some miscellaneous cashflows reported by your bank, you may find the Journal Entry Creation program useful to
create journal entries automatically based on information provided in the bank statement.

Defining General Ledger Accounts: Use the GL Accounts tab region of the Journal Entry Actions window to define General
Ledger accounts to be used for journaling for each company. You can add new accounts and review existing accounts, but you
cannot change or delete existing accounts. Only general ledger accounts defined on the GL Accounts tab region can be selected
in the Journal Structures tab. The available General Ledger accounts derive from the ledger associated with the company.

To review and define general ledger accounts

1. Navigate to the Journal Entry Actions window.
2. Query the Company that you want.
3. If you want to define a new General Ledger account, enter a General Ledger account alias in the GL Account column.
Treasury populates the fields with the General Ledger account number and description.
4. In the Treasury Reference field, you can enter your own description to identify this GL account. The Treasury reference that
you enter appears alongside the GL account number in the list of values throughout Treasury.
5. Save your work.

Defining Intercompany General Ledger Accounts: Use the Intercompany Accounts tab region of the Journal Entry Actions
window to review and update the intercompany accounts for intercompany funding deals within a company. These
intercompany accounts are used for intercompany transfers and interest charges. The bank code, currency, account number,
and account name of each intercompany funding deal is the counterparty bank account that is used in intercompany deals
between the company and the counterparty.

To define intercompany general ledger accounts

1. Navigate to the Journal Entry Actions window.
2. Query the Company that you want.
3. Choose the Intercompany Accounts tab. Treasury displays information for each existing intercompany funding deal.
4. In the Principal GL field, enter the General Ledger account that you want to use for posting the principal for that company.
5. In the Interest GL field, enter the General Ledger account that you want to use to posting interest for that company.
6. Save your work.

Defining the Journal Structure: Use the Journal Structures tab region of the Journal Entry Actions window to set up your
journal structure. You define, for each applicable company name, the daily journal entries that you want to generate
automatically for each combination of deal type, deal subtype, product type, and portfolio. You must update journal entries
whenever you create a new product type or portfolio, or when you un-authorize a product type. Important: To maintain
balanced journals, ensure that your debit and credit GL accounts are set up correctly.

To define the journal structure

1. Navigate to the Journal Entry Actions window.
2. Query the Company that you want.
3. Choose the Journal Structures tab.
4. Query the first Deal Type, Deal Subtype, Product Type and Portfolio combination that you want.
5. If the journal values do not appear for the selected combination, you can copy values from another combination that has the
same deal type by placing your cursor in the Date Type field and choosing the Copy Journal Details button.
6. Enter or change the Date Type, Amount Type, and Action Code as required.
7. If you want the journal action to refer to the general ledger number related to the company's cash flow bank account, select

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the Bank GL check box. Otherwise, enter an account number in the GL Account field.
8. If this is an intercompany funding deal, direct journal actions to either the principal or the interest General Ledger account
number by selecting the Prin GL or the Int GL check box.
9. These check boxes are only available for non-accrual and non-revaluation date types.
10. Identify the action as a Debit or Credit.
11. If necessary, enter the effective dates for this journal action. You can enter a future date in the Effective From field to pre-
define a journal action. You can use the Effective To field to deactivate a journal action after the date you specify.
12. Enter any related Comments.
13. Save your work.
14. Repeat steps 5 to 12 for each GL account that applies to this combination.
15. Repeat steps 4 to 13 for each deal type, deal subtype, product type, and portfolio combination that you want.

Querying General Ledger Accounts: You can review the deal combinations that were set up for a specific General Ledger
account. To query by general ledger account
1. Navigate to the Journal Entry Actions window.
2. Enter the company code of the company whose General Ledger account you want to review and choose the Query by GL
Account tab. The Find GL Accounts window appears.
3. Select a General Ledger account and choose the Find button. The journal entry actions for that General Ledger account
appear. Copying General Ledger Accounts
If you are setting up several companies with similar sets of journals, you can copy a set of journals from a company you have
already set up.

To copy a general ledger account

1. Navigate to the Journal Entry Actions window.
2. Enter the company code of the company you are setting up and choose the Copy GL Accounts tab.
3. In the Copy From Company field, select the company that has the journals you want to copy.
4. Choose the Copy Journals button.
5. Update the appropriate General Ledger accounts and the effective dates.
6. Save your work.

(3).

1. Files:

JEA setups : XTRACJST.fmb

2. Latest at R12.1.3:

1). Oracle Support strongly recommend you to apply following:

Patch: 18325260:R12.XTR.B R12.1: TREASURY RECOMMENDED PATCH COLLECTION (XTR) , AUGUST2014
Oracle Support proactively provides Fixes which improves your application experience.
Hope you appreciate.

2). Check if you've applied patch :

select bug_number
from ad_bugs
where bug_number in ('18325260');

3). Get JEA setup:

select * from xtr_journal_entry_actions

where Company_code = 'PROVIDE'
and deal_type = 'PROVIDE'
and deal_subtype = 'PROVIDE'
and portfolio_code = 'PROVIDE'
and product_type = 'PROVIDE';

(4). SQL INVESTIGATION:

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(9).

Following documents are attached:

NewSampleJEAs.pdf
Treasury.pdf

REFERENCES

NOTE:1309828.1 - TMM, Company Account Field Error: This Bank, Company And Currency Combination Don'T Exist
NOTE:836441.1 - Opening Journal Entry Actions Form Error: Value 05 for the flexfield segment IntCompania does not exist in
the value set CMAV_SEGMENTO_COMPANIA
NOTE:1272334.1 - Xtr Jeas - Can'T Choose Prin Gl For Ig Invest Deal With Reval/Ccyreal/Loss
NOTE:1272903.1 - Whole Sale Term Money (TMM) Transactions Question / Answer
Didn't find what you are looking for?

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