Wednesday, 1 July 2015

ORACLE GENERAL LEDGER PROCESS

Contents



Manual Journal Entry


Navigation: General Ledger Super User Responsibility>>Journals>>Enter
To enter a journal:
1. Navigate to the Enter Journals window.
2. Enter or query the batch for which you are entering journals. To enter a journal without entering batch information, choose New Journal and proceed to Step 4.

    • To enter journals for a new batch, choose New Batch and enter the batch information.
    • To add journals to an existing batch, query the batch and choose Review Batch.
Note: The Status region on the Batch window will display the current statuses for Posting, Funds reservation, and journal Approval.
3. Choose New Journal.


4. Enter a unique Journal name for the entry. If you do not enter a journal name, General Ledger automatically assigns a name using the following format: Source Journal ID Date.
If you did not enter a batch name before entering journals, General Ledger uses the name of the first journal in the batch to create a default batch name.
5. Enter the Period for the journal entry. If you entered a period at the batch level, you must use the same period for each journal entry in the batch. If you did not enter a period at the batch level, choose any Open or Future Enterable period for your journal entry. Note that you can only post journals in Open periods.

Additional Information: Balance Type is a display-only field. It displays Actual when you are entering actual journals and Budget when you are entering budget journals.
6. Accept or change the default Effective Date for the journal entry.
7. Enter a Category to describe the purpose of your journal entry, such as accrual, payments or receipts. All lines in a journal entry share the same journal category.
General Ledger defaults the journal category if you defined the profile option Journals:Default Category.
8. If you use automatic tax on journal entries, enter Required in the Tax field to indicate that you want to enter additional tax information. Otherwise, enter Not Required. This field only appears if you have automatic tax enabled for your Ledger.
10. Enter an optional Description for the journal entry. General Ledger uses this as the default description for each journal entry line. You can change the journal entry description as necessary.
11. Enter a Control Total if you want to verify the total debits for the journal lines against the journal control total.
12. Accept the default Currency (the functional currency for your Ledger), or change the journal currency to enter a foreign currency or statistical journal.
13. Choose Other Information tab to enter optional reference information about the journal entry.
  • Enter a Reference description to further identify the journal entry on general ledger and journal entry reports.

Switch Dr/Cr: General Ledger creates your reversing journal by switching the debit and credit amounts of the original journal entry. This method is often used when reversing accruals.
Change Sign: General Ledger creates your reversing journal by changing the sign of your original journal amounts from positive to negative. This reversal method is often used when reversing journals to correct data entry mistakes.
14. Enter the journal lines.
15. Save your work.

Journal Approval Process


Description: General Ledger's Journal Approval feature is used to ensure that journal entries and batches are approved by appropriate management personnel before the journals can be posted to account balances

Pre-requisites:
Before setting the approval limit we need to do the pre-requisite set ups for this functionality. These setups are as given below 
  • Setting of journal approval in primary ledger 
  • Setting of journal approval in journal sources 
  • Setting of journal authorization limits for the employees 

Navigation:  Setup > Financials > Accounting setup manager > Accounting setups>Ledger Options
Setting of journal approval in primary ledger: Click on the Enable Journal Approval checkbox.
Click Finish
Navigation:  Setup > Journals > Journal Source
Setting of journal approval in journal sources: Query the respective source (eg: Manual) and Click on the Require Journal Approval checkbox

Navigation:  Setup > Employees > Limits
Setting of journal authorization limits for the employees 
Enter Journal in Journal Window:


Refer the status of the Approval in Other Information Tab
Manager/Supervisor can either query the journal name on the General Ledger Responsibility and Click Approve button   on the Journal Entry window to approve the Journal.
Alternatively approval can be provided using the Workflow notification.
A popup window will be displayed post approval.
Daily Rates Entry

Description: Enter the rates for the foreign currency on the Daily Rates Window to automatically calculate the currency conversion rates on the sub ledger level foreign currency transactions as well as foreign currency journal entries in GL whenever entered.
Navigation:  Setup > Currencies > Rates > Daily
  • Enter the From Currency and To Currency
  • Enter the Date
  • Enter the Type as Corporate
  • Enter the rates
  • Save the changes.

Calendar Definition Year-wise


Description: For every accounting year you are required to add the From and To Dates on the Accounting Calendar Window inorder to enter and post transactions on any given period. Note that this should be completed at the beginning of each year.

Navigation: Setup > Financials > Calendars > Accounting
Steps to enter the Periods:
  • Enter the name of the month on the Prefix column. Do maintain consistency on the entering the name i.e. refer previous accounting year definition to find out how the period names are entered and use the same name for the current year as well. For Example if the name for the period January is mentioned as JAN you are required to copy the same format and naming convention when defining the current year period and also for subsequent years.
  • Choose the Type as Month from the list of values (LOV).
  • Enter the Current Year.
  • Enter the quarter on which the month or period falls. For example -  Jan, Feb and Mar falls on the Quarter 1 so enter the Quarter as 1 for Jan, Feb and Mar period and so on.
  • Enter From and To dates for each period. Since the Period type is Month you are required to enter the starting date and ending date of the month. It is important to enter the dates without any gap on the dates. If there is any gap on the period the calendar validation will fail and have serious consequences on the accounting and transaction posting which is irreversible.
  • The Name of the period will be displayed by the system automatically by combining the Prefix and Year.
Note: After saving your changes, system will run the calendar validation program to validate any discrepancies or gap on the calendar periods being entered. It is mandatory to check the concurrent program and ensure that validation is successful.
Auto Copy JE

Description:  You can copy entire journal batches with any status by using the AutoCopy button which is strategically placed on the Journals Workbench, Journal Batches and Journal forms. When copying Journals, you are prompted to create a batch name, select a period and/or the effective date.

Go to Journals>>Enter
Query the journal by providing the search parameters on the search window (eg: Period as Jun14)
From the results shown click the particular line of journal and click AutoCopy button.

Enter the Batch Name, Period and Effective Date for the new Journal.
Click OK
Clicking OK will then submit a concurrent request called ‘Autocopy Journals’. Once this is complete, you can modify and update the batch, journal and lines in the normal way.

Go to View>>Requests>>Find to view the status of the Concurrent Program
You can then view and post the journal which was created automatically by the system.
 
Auto Reversal of JE
Description: 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.

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

General Ledger generates and posts reversals for journals that satisfy the following conditions:
• The journal balance type is Actual.
• The journal category is enabled to be Autoreversed.
• The journal is posted but not yet reversed.
• The journal reversal period is open or future enterable.

Setup Journal Reversal Criteria Set:

Navigation: Setup>>Journal>>AutoReverse
  • Enter the Name for Criteria Set
  • Enter the Description
  • Choose the Journal Category from the Category Field (eg: Accrual)
  • Choose the Reversal Period from the dropdown (eg: Next Period)
  • Choose the Reversal Date (eg: First Day)
  • Choose the Method as Switch Dr/Cr
  • Enable the checkboxes AutoReverse and AutoPost Reversal.
  • Click Save
Attach the created Criteria Set to the Ledger.
Navigation: Setup>Accounting Setup Manager>Accounting Setups
Go to Journal Processing section and choose the journal criteria set from the LOV.

Posting Process

AutoPost Process:

Description: You can automatically post journal batches that meet specific criteria that you defined
in an AutoPost criteria set. You can define multiple criteria sets that include a range of
Journal effective dates and multiple AutoPost priorities. AutoPost priorities include combinations of ledger or ledger set, journal source, journal category, balance type, and period

Once you define an AutoPost criteria set, run the AutoPost program to select and post
any journal batches that meet the criteria defined by the criteria set. You can also
schedule the AutoPost program to run at specific times and submission intervals. You
can submit the AutoPost program or schedule AutoPost runs directly from the
AutoPost Criteria Sets window. Alternatively, you can use the Submit Request window.

Navigation: Setup>>Journal>>AutoPost

  • Enter the Criteria Set Name
  • Enter the Description
  • Ensure that Enabled box is checked.
  • Click Submit All Priorities in Order
  • If you want you can enter the From and To Date
  • Enter the Priority, Ledger, Source, Category, Source Type and Period.
  • Click Save

Submit All Priorities in Order: Select this option to submit the batches for all of your
AutoPost priorities in the same AutoPost run. Note that priorities are processed in
order, based on the Priority number.

Submit Only Priorities with Batches in Order: Select this option to submit batches
only from the specified Number of Priorities in the same AutoPost run. If a priority
results in no selected batches it is not included in the count of the number of priorities
whose batches are processed. For example, if the number of priorities is 2 and your first
priority has no selected batches, AutoPost will process priorities 2 and 3. If you submit
AutoPost again, it will process priorities 4 and 5, and so on for each priority that has
selected batches.

Note: Use this option when you need to balance the load on your
concurrent manager. This may be necessary since a single AutoPost
request that contains multiple priorities can result in numerous
instances of the Posting program running concurrently. The load on the
concurrent manager is increased further if a large number of journal
batches are selected by your AutoPost priorities

To schedule an AutoPost run:

 
 
1. Navigate to the AutoPost Criteria Set window.

2. Query the AutoPost criteria set for which you want to schedule the AutoPost program.
.
3. Choose the Schedule AutoPost button. The Submit Request window displays.
You can schedule any AutoPost criteria set that is not secured using Definition
Access Sets or for which you have been granted Use privilege.
Note: Optionally, you can submit the AutoPost program from the
Submit Request window. Enter the AutoPost criteria set name in
the Parameters window.


.

Posting from Journal Window:

Navigation: Journals>>Enter
Query the particular journal from the Journal window.
Click Post button

A Concurrent program will be run by the system as soon as Post button is clicked.
View>>Requests
Requery the Journal and navigate to the Other Information tab on the Journal window
Status should be changed as Posted.

Posting Journals via Post function:

Navigation: Journal>>Post

Query the Batch by entering the batch name or search the journals by entering the period name.

Click Find button.

From the list of unposted batches choose all the batches or a particular batch by clicking the checkbox on the left side on the screen.
Click Post button
A concurrent will be submitted by the system.
View>>Requests

STAT Journal Entry


Description: General Ledger provides two ways to enter statistical journals. You can enter journals with only statistical debit and credit amounts. If your user profile permits, you can also combine monetary and statistical amounts in the same journal line.

Note: Statistical journal entries do not require balanced debits and credits.

Navigation: Journal>>Enter
1. Enter optional batch information.
2. Enter your journal information, specifying STAT for the journal Currency.
3.  Enter your journal lines, using statistical debit and credit amounts. The debits do not need to equal credits for a statistical journal.
4.  Save your work.
Account Inquiry

Description: Using Account Inquiry feature you can
  • Review specific account balances and compute variances from a secondary balance type.
  • Review information about specific journal batches and journal entries

Navigation: Inquiry> Account
Enter the following fields for the results:
  • Choose the Name of Ledger from the LOV (eg: AUS USD Ledger)
  • Accounting Periods From and To date.
  • Currency as Entered, Total or Statistical
  • Primary Balance Type as Actual
  • Factor as Units
  • Enter the Accounts on the Accounts Section. You can either enter the whole account code combination or the natural account segment alone (eg: Liability account)

Click Show Balances button to show the PTD and YTD balances against the account.
After performing an online query, you can drill down to see additional details.
  • Summary to Detail: after querying a summary account, drill down to the detail balances that comprise the summary account balance for a ledger. For budgets, drill down from master budgets to detail budgets.
  • Detail Balances to Journals: from any detail account balance you can drill down to
the journals that contribute to the balance. If you drill down to summary journals,
you can drill down further to detail journals.
  • Journals to Subledger Detail: from detail journals you can drill down further to see the Oracle subledger transactions that comprise the journal. You can also view subledger transactions as balanced journal entries or in the form of T-accounts.

Budget Inquiry

Description: You can perform online inquiries about your master and detail budgets. General Ledger
compares summary balances between your master and detail budgets, and checks for
budget variances and violations. In addition, you can drill down from summary balances to detail account balances, and then to budget journal details

Navigation: Inquiry>>Budget
  • Navigate to the Budget Inquiry window.
  • Enter the Ledger and Budget you want to review. You can enter a master budget,
detail budget, or a budget not associated with a master-detail relationship.
However, you must enter a budget which has at least one open budget year.
  • Enter the Currency of the budget balances you want to review. You only see budget
amounts entered in the specified currency.
  • Enter the range of accounting periods to include in your inquiry. The accounting
period range must be within an open budget year
  • Choose the Inquiry Type you want to perform. Your Inquiry Type choices depend on whether you are performing the inquiry on a master or detail budget
  • For a detail budget, you can only choose Drilldown this Budget to see detail
budget balances with a drilldown to detail accounts
  • Select the Factor as Units
  • Query a Summary Account
  • Choose the Show Balances button to review summary balances based on your inquiry criteria.

Account Maintenance
Description: Use Mass Maintenance to move balances by period from one account to another or
merge balances by period from multiple accounts into a single account. The moved/merged balances
are added to the existing balances in your target accounts. If you change your mind about a move/merge, you can reverse it and restore your account balances to their previous amounts

During a move/merge operation the financial integrity between General Ledger and its
sub ledgers is maintained, so you can still drill down to your subledger details after the move/merge is complete.

Note: To drill down, perform an account inquiry from the move/merge target account. From there, you can drill down to the move/merge source account, then to the subledger detail.
A move operation transfers balances from one or more source accounts to one or more
target accounts. In the Mass Maintenance Workbench window, you use one account specification
each to define the source accounts and the target accounts.

A merge operation transfers balances from multiple source accounts into one or more target accounts.
In the Mass Maintenance Workbench window, multiple account specifications are used to define the source accounts while the same account specification is used to define the target accounts.

To Perform the Move/Merge:
  • Navigate to the Mass Maintenance Workbench
  • Enter the Request Name
  • Choose the Ledger
  • Enter the Source and Target accounts at Line level. (For example if you want to move the balances from one cost center to another cost center enter the source cost center and the target cost center along with the balancing segment value).
  • Click Submit button


Business Rules:

• You cannot move/merge across ledgers.

• If you submit a move/merge request for a ledger set, a parent request will be automatically submitted along with multiple child requests, one for each ledger in the ledger set.

• You cannot move/merge across balancing segment values. For example, if your balancing segment is company, you cannot move balances from one company to another.

• You cannot move/merge across financial statement categories. For example, you cannot move a balance sheet account balance to an income statement account. You can move/merge within categories, except for equity accounts. For example, you can move/merge an asset balance to a liability account.

• You cannot move/merge budget or encumbrance balances.

What Move/Merge Does:

If no errors are encountered, a move/merge will perform the following steps before it finishes processing:

  • Validate accounts
  • Create target accounts that don't already exist
  • Calculate balances to be moved or merged
  • Calculate amounts to adjust quarter-to-date, year-to-date, project-to-date, Period-average-to-date, quarter-average-to-date, and year-average-to-date balances
  • Move/merge the calculated balances
  • Create move/merge audit journals
  • Produce the Mass Maintenance Execution Report

Translated Balances:

After a successful move/merge operation, translated balances will be out of date. You must run General Ledger's Translation program for each balance level reporting currency to update your translated balances.

Revaluation JE


Description: Revaluation is a process that adjusts account balances denominated in a foreign currency using a one time, daily, or period-end exchange rate. Revaluation amounts, based on changes in conversion rates between the date of the journal entry and the revaluation date, are posted to the
underlying account with the offset posted to an unrealized gain or loss account. All debit revaluation adjustments are offset against the unrealized gain account and all credit adjustments are offset against the unrealized loss account. If the same account is specified in the gain and loss fields, the net of the revaluation adjustments is derived


Navigation: Currency>>Revaluation
  • Query the existing Revaluation Template (eg: AUS Primary Ledger Revaluation)
  • Click Revalue Button

General Ledger launches a concurrent process to revalue your account balances. Use the Revaluation Execution Report to review the status of your revaluation. General Ledger automatically generates this report when you run Revaluation.
Post the revaluation journal batch if you do not have AutoPost enabled

Alternatively, you can run or schedule the Program - Revalue Balances to run the revaluation for the period.
View>>Requests>>Submi t  a New Request
Run the Program called Program – Revalue Balances
Choose the following Parameters
  • Ledger or Ledger set
  • Revaluation Template name
  • Period
  • Effective dates.
  • Click Submit
Review the report output generated by the system.

Navigate to the Journal Window and query the batch.
Note: The Journal will be created under Journal Category Revaluation.

Translation JE

You can translate your actual and budget account balances from your functional currency to another currency..
Run translation after you have completed all journal activity for an accounting period. If you post additional journal entries or change your translation rates after running translation for a period, you must retranslate. Additionally, if you change the account type for an account segment value and want to retranslate your actual account balances, you may need to purge past translations, change the account type assignment, and then run translation.
Navigation: Setup>>Financials>>Accounting Setup Manager>>Accounting Setups
  • Navigate to the Ledger options
  • Enter the Period End Rate Type, Period Average Rate Type
  • Enter the cumulative translation adjustment account.
When you translate your actual balances into another currency, General Ledger automatically adjusts the balance of the Cumulative Translation Adjustment account to the net difference needed to balance your translated chart of accounts. General Ledger does not make adjustments to this account when you translate budget balance
Run Translation:
Navigation: Currency>>Translation
  • Enter Target Currency
  • Enter Balance Type (Actual)
  • Enter the GL Period
  • Click Translate Button
Translation program will be submitted by the system.
View>>Requests>>Find
Run the Trial Balance – Translation program


Consolidation JE


Consolidation is period-end process of combining financial results of separate subsidiaries with parent company to form a single, combined statement of financial results. Consolidation System provides flexibility to help manage consolidation needs regardless of company structure


To consolidate multiple Ledgers that have different functional currencies, accounting calendars, or charts of accounts, you must first map your subsidiaries' charts of accounts to your parent's chart of accounts.
A consolidation mapping is a set of instructions for mapping accounts or entire account segments from a subsidiary Primary Ledger to the parent Primary Ledger. When you subsequently transfer amounts from a subsidiary to your parent, General Ledger creates an unposted consolidation journal batch in your parent Primary Ledger based on the subsidiary's mapping information.
Navigation: Consolidation>>Define
  • Enter the Consolidation Name
  • Enter Description
  • Choose the Parent Ledger
  • Choose the Subsidiary Ledger
  • Choose the Method  as either Balances or Transactions
  • Choose the Currency
  • Click Mapping button
Balances: Consolidate actual, average, translated, budget, or statistical balances. This method does not include journal entry detail
Transactions: Consolidate actual journal entry detail from a subsidiary Primary Ledger. Use this method only if both books have same functional currency. You cannot use this method for budgets
Segment rules: map subsidiary account segments to parent account segments. For example, you can map your subsidiary's Department segment to your parent's Cost Center segment.

  • Enter the name for Mapping
  • Enter Description
  • Choose the Target COA structure
  • Choose the Source COA structure
  • Click Segment Rules
  • Start mapping your COA segments one by one
  • Copy Value From: Copy all values in your subsidiary segment to the same values in your parent segment. The segments do not have to use the same value set, but must use the same segment values.

  • Assign Single Value: Assign one specific value that will be used for the parent segment. You must enter the value that the parent chart of accounts will use.
  • Use Rollup Rules From: Map values from your subsidiary segments to your parent segments using the rule specified in the Rollup Rules region.
    • If you chose the Use Rollup Rules From action in the previous step, enter the mapping rules in the Rollup Rules region.
Additional Information: Once you save your work, you cannot modify your rollup rules, except to change the parent and subsidiary segment detail values. To change a rollup rule, delete it then create a new one.
Click Save and back to Consolidation Definition Window
  • Run Journal Import: Checking this option launches Journal Import after your subsidiary data has been transferred. This creates an unposted consolidation batch in your parent Primary Ledger automatically.
  • If you choose not to run Journal Import, the transfer process populates the GL_INTERFACE table so that you can run Journal Import later.
  • Audit Mode: Check this option to keep a record of how accounts from your subsidiary Primary Ledger map to accounts in your parent Primary Ledger. You can then run the Consolidation Audit Report, the Disabled Parent Accounts Report, and the Unmapped Subsidiary Accounts Report to see consolidation audit information. After your subsidiary data has been transferred and you have requested the audit reports, purge your consolidation audit data using the Purge Consolidation Audit Data window.
  • Create Summary Journals: Check this option to summarize all journal lines that affect the same account code combination into one line in the parent Primary Ledger. Since this is a summary action, General Ledger creates one journal entry line showing debits and credits for each account code combination.
  • AutoPost: Check this option to automatically post your consolidation journals in the parent Primary Ledger
  • Click Consolidation Set button to Create a mapping set to transfer consolidation data for multiple subsidiaries simultaneously
Press Transfer and system will create a unposted journal in parent Primary Ledger
Choose the Period for Subsidiary and Parent Ledgers.
Click Transfer button.
System will submit a concurrent request for the transfer instruction.

View>>Requests>>Find
Check the Journal Import output:
Find Consolidation Journal in Parent Ledger

Period-Close
You need to be sure to complete the following period-end tasks:
• Finish entering all regular and adjusting journals for the period in your ledger.
• Post all unposted journals in your ledger if not already done in the previous step.
• Post all unposted journals in your reporting currencies if not already done in the
previous step.
• Run Revaluation in both your ledger and reporting currencies. Post the resulting
revaluation batches in each ledger.
• As needed, translate balances in your ledger.
• Generate needed reports from both your ledger and reporting currencies.
• Close your accounting period in both your ledger and reporting currencies

1 comment:

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