General Ledger Flow Document

8/7/2019 General Ledger Flow Document

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GENERAL LEDGER

1) Logon to applications with User: Operations/welcome.

2) Resp: System administrator

3) Navg: SecurityResponsibilityDefine define our own responsibility as such all modifications will not affect

current user.

4) Navg: SecurityUsersDefine


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5) Then Login as User: HUTCH/welcome


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6) Select Responsibility SA_HUTCH_GL

7) In order to create a Ledger the pre-requisite is 4 cs

a) CALENDER

b) CURRENCY

c) CHAT OF ACCOUNTS

d) SUB-LEDGER ACCOUNTING NEW FROM R12

8) CALENDER: There are two types of calendar in GL

a) Accounting Calendar: Used to determine PERIODS. In this we secure and maintain Journal Entries and Balances.

b) Transaction Calendar: Used to determine List of Holidays. Here the transactions are not allowed. Used to

calculate Average Balances, generally used in banking sector.

1) Accounting Calendar:

a) Define Period Type: Used to determine the number of periods required for an current financial year.

A year type is fiscal, the period name end with last two digits of the year.

Eg: 2010 end with 10.

If the year type is Calendar, Period name end with last two digits of the from date.

Eg: 01-JAN TO 31 DEC.


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b) Define Accounting Calendar:


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Compile and Save.

Note: Here the overlapping of periods would be adjusted by initially create the dates from

01-APR-2010 TO 03-MAY-2010

04-MAY-2010 TO 31-MAY-2010

SAVE AND COMPILE

Then again open and change as per above

01-APR-2010 TO 30-APR-2010

01-MAY-2010 TO 31-MAY-2010

Any changes after compiling the run concurrent program:

PRC : OTHER CALENDER VALIDATION REPORT

Target Period: From R12, it will open all periods which specified from OPEN to NEVER OPENED


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Eg: Cal is from Apr-10 to Mar-11

If my target period is JUL-10, means periods starting from Apr-10 to JUL-10 are OPENED.

2) Transaction Calendar: Used to define HOLIDAYS and Average Balances.

9) CURRENCY: Can use pre defined currency INR


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Navg: SetupCurrenciesDefine

10) Flexfields:

These are of two types: Key Flexfield and Descriptive Flexfield.

Key Flex field: Use to store key information

Structure: Collection of the Segments

Eg: GL structure (SA_HUTCH)

Max of 30 segments and min of 2 segments

Segment: 1 column Eg: Company,Department,Accounts,Location

Assign Value Set to the segment, which determines the behavior of the segment.

Two types of Qualifiers

a) Flex filed Qualifier Identifies the Segment

b) Segment Qualifier Identify accounting values, to control values.

Types of Flex Filed Qualifiers


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Balancing Segment: It will balance the debit and credit, it is the Accounting Standard. We can assign this to any

segment.

Note: Oracle recommends it to assign to top level COMPANY segment.

Natural Account Segment: It identifies the nature of the account.

(a)Asset (b) Liability (c) Revenue (d) Expenses (e) Ownership

Note: Oracle recommends it to assign to ACCOUNT segment.

Secondary Tracking : Department Level Reporting like Translation revaluations


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Management Segment Tracking: Used for Security purpose(Data Definition Access set)

By giving privilege as READ READ&WRITE

11) Chart Of Accounts

Defining Structure:

Resp: SA_HUTCH_GL

NAVG: SETUPFINANCIALSFLEXFIELDKEYSEGMENT

Click on SEGMENTS tab


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After defining the value sets, attach to individual segment.


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Then Assign Company and Accounts to Flex field Qualifiers


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Then save the work and go to structures screen and the enable the following tabs and compile.


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Defining Values:

Resp: SA_HUTCH_GL

NAVG: SETUPFINANCIALSFLEXFIELDKEYVALUES

Enter Values for the segments which were defined prior, assign SEGMENT QUALIFIERS to the value.


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Place the cursor at COMPANY and press Down arrow, as such another segment would appear in order to enter value.


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Do specify Retained Earnings to the Account Segment


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3) Enter the field and click on apply.

4) Click on next tab out for 2 of 3


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7) Click on the define accounting options tab once this message appears

8) Click on ADD LEGAL ENTITY tab, as such the LE what we defined need to be attached to the LEDGER.


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9) Assign the LE and click on select

10) Click on apply after selecting the LE.

11) Click on Ledger Options Update button


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12) Provide the following information and click on next tab

13) Provide Retained Earnings and click on next


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14) Provide rest of info as required and click on next

15) Review the LEDGER and click on Finish as such the status show COMPLETED


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STATUS = COMPLETED

16) Click on Update Balancing Segment Value tab

Add Balancing Segment Values to the LE.


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Select the values and say ok

Apply the values to LE


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Then click complete in order to verify status as complete

Say Yes

Click on Return accounting setup

Here The LEDGER is said to be completed


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17) Assign the LEDGER to the SA_HUTCH_GL responsibility

Responsibility: SYSTEM Administrator

NAVG: systemprofile

18) OPEN and CLOSE Periods


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Target period: New from r12


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Periods starting from Apr-10 to JUN-10 are opened.

Types of Calendar Statuses Entry Posting Reporting

1) NEVER OPENED x x x

2) OPENED Y Y Y

3) FUTURE Y x x

4) CLOSED x x Y

5) PERMANTLY CLOSED x x x

Periods opened up to target year specified.


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Journals: Which is used to store accounting information from all primary and sub-ledgers.

Types of Journals:

Name Of the Journal Balance Types

(1)Manual Journal Actual Type

(2) Recurring Journal Budget Type

(3) Allocation Journal Encumbrance

(4) Budget Journal Actual

(5) Encumbrance Journal

(6) Import Journal

Manual Journal:


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Navg: JournalEnterNew Journal

After creating the journal do post it.


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Cross Validation Rule Security:


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Difference between CRV and Security Rule:

1) For CRV the segments would appear but wont allow to access.

2) For Security Rule, the segments will not appear.

To disable CRV just disable at Structure Level

Journal Entry to Validate CRV.


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Data Access Set:


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It is new from r12.

Can restrict Ledgers, Balancing Segment Value, and Management Segment Value by giving privileges as READ/

READ & WRITE.

A responsibility can have 1 Data Access Set.

Management Segment Value can be assigned for Cost-center Dept except Company and Accounts.

Assigned at Responsibility Level.

Profile Option: GL: DATA ACCESS SET


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Resp: System Adminstrator


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Note: System automatically creates with LEDGER NAME which defaults attached to responsibility. Change it

with Data Access Set Name.

Journal Entry to Validate Data Access Set


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Change the Department which has read & write permission

Data Definition Access Set:

-- New from r12.

-- Controls rules and formula

-- Can used to restrict window as

View (Can view only)

Modify (Can Modify)

Use (Wont / Able to use definition)

Pre-Requisite: Attach the default Data Access Set to Responsibility


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Where ever we find enable security tab can be called as definition. Which can be imposes rule or formula on it.

Example: Calendar (Accounting)


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As per the above defined, it will allow to view and modify.

If you want to restrict, just check view check box, as such further the calendar field is said to be protected against

entry.

Want to change further then follow the steps below.


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Recompile and observed that the calendar is not available even in query purpose. Then modify back to View and

Modify DAS then used normally.

Used while running reports can be restrict the definition by restricting formula.

Short Hand Alias:

A readymade template used as a instant code combination.


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Recompile Structure (SA_HUTCH_COA)

Enter Journal to verify Short Hand Alias


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Recurring Journals

The journal which repeats every Period / Month

Eg : Rent

Are of 3 types:

Standard:

Account (A/C): Rent, Power, Commission (Fixed Amount)

Amount


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Press down arrow and enter line 2


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Click on Generate and next submit button


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Skeleton:


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Account (A/C)

Amount : Yet not known (Telephone Bill)

Formula:

Account (A/C)

Amount : Will be calculated on Formula Based (E.g. Commission depends on sales)

These are used for Revenues and Expenses.

Inter-Company Transactions

Any transaction between balancing segment values, those transactions are called as Inter-company transactions.

1) Responsibility : GL

Enable the Intercompany Segment Flex field Qualifier for the Company Segment

Enter the I/C Accounts receivable and I/C Accounts Payables as another two values with segment qualifiers as

Assets and Liabilities respectively.


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In order to enable the intra company balancing segment follow the below steps


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Click on Define Relationships for Each Legal entity and follow below steps


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Click on define accounts tab and include Intercompany Receivables and Payables Accounts.

Follow same for another legal entity LE2


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Resp: System Administrator

Assign Data Access Set with the Primary Ledger


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Switch to Resp : GL

Enter Journal with different Balancing Segments and post and see the effect of Inter Company account Transactions


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Intra-Company Transactions

Any transaction within the same legal entity related balancing segment values, those transactions are called as

Intra-company transactions.

1) Define Clearing Company


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2) Go to Accounting setup and update the legal entity with the clearing company.


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Click on Update Accounting Options and Update Balancing Segment Value for LE1


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Click on Options Tab


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Then review the Intra-Company Transactions

Journal->Enter->Find


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Currencies

There are 4 types of currencies

1) Foreign Currency: Used in converting foreign to functional currency i.e... Specified Currency to Requested

Currency

2) Revaluation : Process to know profit / loss due to the fluctuation in currency (Used for FA To revaluate Assets

and GL To know current assets and current liabilities)

3) Translation: Used to convert balances from functional to foreign currencies.

4) Reporting Currency Ledger:

Balance Level

Journal Level

Sub ledger Level

Types of Ledgers:

Primary Ledger

Secondary Ledger From R12 onwards

Reporting Currency Ledger


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Translational Currency:

Translation is a process used to convert functional currency to other reporting currencies at the account balances

level.

US Method: Translates Assets / Liabilities End Rate

Translates Revenue / ExpenseAyg Rate

Translates Ownership Historical rate

General Method: No rule takes End Rate.

Reporting Currency Ledger:

When we run translation then the system generates the reporting currency ledger with level as Balance.

1) Resp: General Ledger


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Navg: Setup-Financials-Accounting Setup Manager


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2) Navg: Setup-Financials-Ledgersets

3) Change the responsibility

Ass


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A

Assign the Ledger Set the one we defined against the Responsibilty.


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Switch the GL Responsibility


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Enter Journal in Primary Ledger with INR as Functional Currency.


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Check for Journal SA_Htch_USD_journal: SA_Htch_Reporting_Curr_Led_JE


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Secondary Ledger:

Secondary Ledgers are mainly used for creating Multiple Accounting Representations

These are additional accounting representation of primary ledger

When ever any of the components are going to be changed like Currency, Calendar, Chart Of Accounts, SLA

we make use of secondary ledger.

This functionality can be useful when the statutory requirement is to maintain books of accounts in certain

accounting method and company policy is to maintain books of accounts in different accounting method

For secondary ledger we need to create a new responsibility. Linking between Ledgers and Responsibility happens

via profile options in this case it if GL: Ledger Name: we should set secondary ledger in that profile option.

There are 4 types of Data Conversion levels involved in secondary ledger creations

o Journal Level

o Balance Level

o Sub-Ledger Level


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o Adjustments

In creation of Balance level Secondary Ledger one should do mapping.

Mappings are of 2 Types

o Segment Rule

o Accounting Rule

Segment Rule is used when primary ledger chart of accounts and secondary ledger chart of accounts are same.

Accounting Rule is used when primary ledger chart of accounts and secondary ledger chart of accounts are

different.

After mapping we need to do CONSOLIDATION to merge the balances to primary ledger to secondary ledgers.

Consolidation is a Process of Merging Balances.

The source from which we retrieve or get the data is called as a Subsidiary Ledger (Primary Ledger).

In which we merge the data is called as Parent Ledger (Secondary Ledger).

1) Add Secondary Ledger to the Existing Primary Ledger.


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Provide the requested details (Here added new COA and Calendar) and click on apply

Go to Ledger options of the Secondary Ledger and click on update and complete the 1-4 options


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Step: 1

Step: 2


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Step: 3

Step: 4


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2) Now the status of the Ledger Options is said to be complete. The next step is mapping Primary Ledger to

Secondary ledger.


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5) Add the above responsibility to the existing user (HUTCH)


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6) Assign the Profile GL: Ledger Name as Secondary Ledger.

7) Login with responsibility SA_Secondary_GL_Resp and open periods for the secondary ledger.


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Consolidation:

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.

Resp: General Ledger, Vision Operations (USA) Primary ledger


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Navg: ConsolidationDefineConsolidation


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Save the work and click on transfer


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Once we click transfer, all the balances with pre-defined code combinations would be transferred to Secondary

Ledger.

Resp: SA_ Secondary_GL_Resp


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Navg: JournalEnterFind


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Review the journal

Enter the credit line manually and balance the journal.


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Revaluation:

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.

Can be done at General Ledger and Fixed Assets Level.

o In GL by running the revaluation, we calculate the current Assets and Current Liabilities

o In FA by running the revaluation, we revaluate the asset value

Resp: GL

Navg: Setup:Currencies:Rates:Daily


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Effective Daily Rate

Create the below mentioned values in the Accounts Segment of the COA


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Enter Journal with the below specifications and say save


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Budgets:

Budgets are used to control the Expenses and Revenues

There are two types of budgets

o Planning Budget: The plan for the future expenses is planning budget. It is a paper work. There is no funds

requirement. It does not require journals. There are no restrictions for estimating of funds. It is a budget

through which you cannot exercise budgetary control. But you can compare your actual with budgets through

inquiry window.

o Funding Budget: It is a budget against which accounting transactions are checked for available funds when

budgetary control is enabled for your set of books. Funding Budgets are approved budgets.

Reserve from the budget is termed as Encumbrance.


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Responsibility: General Ledger

Navg: Setup:Financials: Flexfeild: Key:Values

1) Create a value by name Encumbrance in the below specified structure

2) Go to below specified navigation and assign Encumbrance to the Primary Ledger.


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3) Enable the Budgetary Control and Require Budget Journals check box and provide Encumbrance Account Details

4) Navg: Budget: Define: Budget


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5) Define Organization


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Click on range and range assignments


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Then define Budgetary Control


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6) Then enter the journal from the below specified journals via budget

Then create journals and click on check funds and reserve funds


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Then check for the budgets with Balance type as Budget from the below navigation

N: Journal:Post: Balance Type: Budgets

Documents

General Ledger Flow Document