Oracle E-Business Suite R12.1 General Ledger Overview …dbmanagement.info/Books/MIX/3.EBS_R12.1_GL-Ledger_GL.pdf · Oracle E-Business Suite R12.1 General Ledger Overview Training

<Insert Picture Here>

-1-For Oracle employees and authorized partners only. Do not distribute to third parties.

© 2009 Oracle Corporation – Proprietary and Confidential

Oracle E-Business Suite R12.1 General Ledger Overview Training

Courseware

The following is intended to outline our general

product direction. It is intended for information

purposes only, and may not be incorporated into any

contract. It is not a commitment to deliver any

material, code, or functionality, and should not be

relied upon in making purchasing decisions.

Safe Harbor Statement



relied upon in making purchasing decisions.

The development, release, and timing of any features

or functionality described for Oracle’s products

remains at the sole discretion of Oracle.

Use of this Site (“Site”) or Materials constitutes agreement with the following terms and conditions:

1. Oracle Corporation (“Oracle”) is pleased to allow its business partner (“Partner”) to download and copy

the information, documents, and the online training courses (collectively, “Materials") found on this Site. The

use of the Materials is restricted to the non-commercial, internal training of the Partner’s employees only.

The Materials may not be used for training, promotion, or sales to customers or other partners or third

parties.

2. All the Materials are trademarks of Oracle and are proprietary information of Oracle. Partner or other

third party at no time has any right to resell, redistribute or create derivative works from the Materials.

Oracle Training Materials – Usage Agreement



3. Oracle disclaims any warranties or representations as to the accuracy or completeness of any

Materials. Materials are provided "as is" without warranty of any kind, either express or implied, including

without limitation warranties of merchantability, fitness for a particular purpose, and non-infringement.

4. Under no circumstances shall Oracle or the Oracle Authorized Delivery Partner be liable for any loss,

damage, liability or expense incurred or suffered which is claimed to have resulted from use of this Site of

Materials. As a condition of use of the Materials, Partner agrees to indemnify Oracle from and against any and

all actions, claims, losses, damages, liabilities and expenses (including reasonable attorneys' fees) arising out

of Partner’s use of the Materials.

5. Reference materials including but not limited to those identified in the Boot Camp manifest can not be

redistributed in any format without Oracle written consent.

Key Content Contributors

Contributing Companies



Module: Oracle General Ledger

Oracle General Ledger Process

Accounting Setup Manager

Ledger

Basic Journal Entries

Accounting Setups

Summary Accounts

Advanced Journal Entries

Bootcamp Objectives



Advanced Journal Entries

Advanced Security

Financial Budgeting

Multi-Currency

Consolidations

Period Close

Financial Reporting

Section Objectives

Elements required to create a ledger within Oracle General Ledger

Basic components of Accounting Setup

Important elements for creating a Chart of Accounts structure

Creating a new Accounting Flexfield structure

Utilize the Account Hierarchy Manager to view and maintain Accounting

Flexfield values



Flexfield values

Accounting Setup Steps

Complete

Accounting Options

Complete

Accounting Setup

Assign Legal Entities

for Accounting Setup

(optional)

Define Legal Entities

Define Calendars

GL SETUP STEPS

Define

Chart of Accounts

SETUP From the Accounting Setup Manager



Define Secondary

Ledger(s)

(optional)

Define

Primary LedgerEnable Currencies

Complete

Optional Setup Steps

Section Objectives






Flexfield values



Flexfield values


Accounting calendar

Account structure Value sets

Segment values

Security rules

Cross-validation rules

Periods

Period Types



Currencies Daily Rates

Rate Types

Journal Categories

Sources

Create a calendar to define an accounting year and the periods that it

contains.

• Set up one year at a time, specifying the accounting period type.

• Define your calendar with at least one period before the period in which

you start entering transactions.




you start entering transactions.

• Optionally, define multiple calendars and assign a different calendar to

each ledger.

• Each calendar has an associated period type.

• Pre-defined period types in Oracle General Ledger are Month, Quarter,

and Year.

• If needed, define your own period types in addition to the standard

periods.




periods.

LedgerPeriod Type

Month

Jan-02 to

Dec-02

Calendar

=+

Periods

01/01/2002

to

12/31/2002

• Each accounting period has one of the following five statuses:

B a s i c c o m p o n e n t s o f A c c o u n t i n g S e t u p



Open

Period

Closed

Period

Permanently

Closed Period

Never

Opened

Future

Enterable

• A currency must be enabled before transactions can be entered or

balances can be recorded in that currency.

• Predefined currencies can be enabled or customized currencies can be

setup.

• Several currencies can be enabled to allow you to enter transactions in

multiple currencies




multiple currencies

Section Objectives






Flexfield values



Flexfield values

Elements of Chart of Accounts Structure

Chart of Accounts is a list of Accounting Flexfields you create to identify

general ledger accounts

– This flexible structure is made up of subfields or segments

– Each segment has a name and a set of values



Company ProjectDivision Department Account

– Each segment has a name and a set of values

Design your Account Code in a flexible way:

CompanyCompany

DepartmentDepartment

Up to 30Segments

A list of valid values is attached to each segment




DepartmentDepartment

AccountAccount

SubSub--AccountAccount

ProjectProjectUp to 25 characters per segment and max total length of 240 characters

You define the name and order of segments

XX – XXX – XXXX – XXXX – XXX

• Identify the aspects of the business that you need to track and

analyze.

•Give specific attention to aspects that span several applications. For

examples:

– Company, legal entity, fund

– Division, region, territory, state, country

– Location, plant, office, store

– Cost center, department, function




– Cost center, department, function

– Natural Account categories:

• asset, liability, owner's equity, revenue and expense

– Product, product line, line of business, channel

– Project, phase, task, job, work order

• Keep each business dimension in a separate segment to avoid

complicating your processing and reporting.

• Avoid having more than one meaning for each segment




Company

XXX

Region

XX

Product &

Project

XXXX

• Make certain that you can generate the required reports based on

the segments in your Accounting Flexfield.

Company

}




Region

Cost Center

Project

}

• Use vertical parent rollups on specific segments when possible rather

than creating additional segments.

• Example: Division and region are not included in the posting level.

European

DivisionDivision parent




Division

Western

Region

CompanyCost

CenterAccount

Division parent

Region parent

Child level

•While defining Value Sets, appropriate consideration should be given to

the validation type of the values.

• Some of the validation types are:

–Independent

–Dependent

–Table




–Table

• It is recommended to use Independent validation for the Accounting

Flexfield segment value sets.

• Following attributes of the Value Sets help in restricting the value entry

in the business required format of the accounting flexfield:

–Alphabetical characters to be allowed

–Size of the flexfield segment




–Coding scheme of the values

Section Objectives






Flexfield values



Flexfield values


Steps to create an accounting flexfield:

–Define a value set.

–Define an account structure.

–Define valid segment values.



–Define valid segment values.

–Optionally, define cross-validation rules if using Dynamic Insertion.

–Optionally, create account combinations if not using Dynamic Insertion.

–Optionally, create aliases.

–Optionally, define security rules.

Defining Value Sets

• Use value sets to control the characteristics and format of the

Accounting Flexfield segment.

Value_set 1

Format:

Char

Value_set 1

Format:

Char

Value_set 2

Format:

Char

Value_set 3

Format:

Char




The same value set can be used more than once in the same Accounting Flexfield structure.

Max size: 2

Validation:

Independent

Max size:2

Validation:

Independent

Max size: 3

Validation:

Independent

Max size: 4

Validation

Independent

Balancing Cost Center Natural

Account

Intercompany




Defining Accounting Flexfield Structure




Defining Segment Values

• Enter valid values for each segment before using them in the

Accounting Flexfield segments.




Account Type

Budget Entry Allowed

Asset, Liability, Owners' Equity

Revenue, Expense

Budgetary Dr, Budgetary Cr

Yes or No

Defining Segment Values � Qualifiers




Posting Allowed

Third Party Control Account

Reconciliation Flag

Yes or No

Payables, Receivables, Yes,

or No

Yes or No

Defining Cross Validation Rules

• Prevent the creation of invalid account combinations by setting up

cross-validation rules.

–Define cross-validation rules before entering a chart of accounts.

–Use cross-validation rules in combination with dynamic insertion.




Enable

Cross

Validate

Segments

option

Defining Cross Validation Rules




• To use an account combination, accept the default enabled check box

in the GL Accounts window.

Enabling Code Combinations




Defining Shorthand Aliases

• A shorthand alias is a word or code that represents a partial or

complete account combination. Use shorthand aliases to reduce

account-entry keystrokes and to maximize productivity and accuracy.




Segment Value Inheritance

111011

Enabled

Posting

Budgeting

01-100-111011

Enabled

PostingInherited

Attributes for Segment




01-200-111011Preserveaccounts

01-100-111011Posting

Budgeting

Enabled

Posting

Budgeting

Inherited

Not Inherited

• Restrict data entry and online inquiry to specific values by using

flexfield security rules.

Defining Security Rules




Defining Security Rules




Section Objectives





Utilize the Account Hierarchy Manager to view and maintain

Accounting Flexfield values



Accounting Flexfield values

• Define parent/child relationships, including multilevel hierarchies, to

facilitate reporting and analysis.

Top-level

parentWestern Region

Defining Segment Values � Hierarchies

Utilize the Account Hierarchy Manager to view

and maintain Accounting Flexfield values



Second-

level

parents

Children

NevadaCalifornia

East

CA

East

OR

West

CA

West

OR

East

NV

West

NV

Oregon

•You can set up a variety of flexible parent/child account hierarchies to match

your organizational needs.

Smart

Computers, Inc.

Defining Segment Values � Account Hierarchies





Smart

Computers, Inc.

Computers, Inc.

CPUsDisk

drivesPrinters

New

YorkParis Chicago

Defining Segment Values � Account Hierarchy Manager

With the Account Hierarchy Manager you can:

– Graphically create, maintain, and review account structure hierarchies

– Define new parent and child segment values, as well as change parent/child

dependencies





– Create new rollup groups from the Account Hierarchy Manager and have your

changes reflected automatically in both the Key Segment Values and Rollup

Groups windows

Defining Segment Values � Account Hierarchy Manager





• You can dynamically create new account code combinations when

entering data by enabling dynamic insertion in the Key Flexfield

Segments window.

–Define cross validation rules to prevent incorrect account combinations from

being created by dynamic insertion.

Defining Segment Values � Dynamic Inserts





Enable / Disable

Dynamic Inserts

Documents

Oracle E-Business Suite R12.1 General Ledger Overview …dbmanagement.info/Books/MIX/3.EBS_R12.1_GL-Ledger_GL.pdf · Oracle E-Business Suite R12.1 General Ledger Overview Training