Oracle Applications 11i

General Ledger
Introduction and Set Up
A Presentation by EAS – Oracle Applications

July 2003

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 What is General Ledger?
Oracle General Ledger (GL) is:
 The central repository of all financial transactions.
 At the heart of any accounting system.
 A tool, for integrating sub-ledger activity, consolidating group-wide accounts
and releasing statutory/analytical financial reports.
 A comprehensive financial management solution that enhances financial
controls, data collection, information access, financial reporting and analysis
throughout an enterprise.
 Enables rapid implementation, easy adoption from legacy systems, accurate
and timely transaction processing, improved enterprise decision support and
increased operational efficiency with quick closing procedures.

In a nutshell, the data recorded in GL is reviewed, manipulated and analysed.

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 Structure of General Ledger
 GL uses chart of accounts, calendar and currency:
 Chart of accounts determine how the accounting information is collected,
categorized and stored for reporting purposes.
 Calendar determines how many accounting periods are there in GL and
 Currency determines the transaction and functional currency.
 
 GL supports double entry accounting where every accounting transaction
results in one or more debits and credits that are always balanced. All
transactions enter GL in Journal mode only, which on being posted updates
various GL tables. On posting, the system keeps a record of the total debits and
total credits posted to each account in the period and uses these totals to keep a
running total of the account balance for each period. 

 There are two rules that determine how the balance of each account
develops over a period of time. These are as under:
  Account Closing Balance = Opening Balance + Total Debits - Total Credits
Account Opening Balance = Closing Balance of Previous period. (Only for P&L
accounts in the following year, there will be no opening balance carried over of
previous year)

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GL Integration With Other Oracle
Financials Suite
Inventory

Purchasing

Payables

Receivables Assets
General Ledger

Order
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GL Integration With Other Oracle
Financials Suite (Contd…)
 Assets, Payables and Receivables handle money and generate GL
transactions. These are closely integrated with GL.
 Purchasing, Order Entry and Inventory generate transactions with financials
implication and are integrated with other three modules.
For example:
 To purchase office equipment, a PO is raised in Oracle Purchasing.
 When the equipment arrives and the invoice is received, the PO is closed and
a liability is recorded in Oracle Accounts Payable.
 Oracle Payables sends information to Oracle Assets on the asset purchased.
The asset is recorded in Oracle Assets where all the asset details are captured
and depreciation is initiated.
 Payment for the equipment purchased is recorded in Payables, which knocks
off the liability.
 The data recorded in all these sub-ledgers is transferred to GL
 The events or financial transactions are entered only once whether in GL or in
sub-ledgers.

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GL Interface With Feeder Systems and
Sub-Ledgers

Sub-ledgers / Feeder System

GL Interface Data Table

Run Journal Import

Assets
General Ledger

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GL Interface With Feeder Systems and
Sub-Ledgers (Contd…)
GL is the central repository of all sub-ledger activity, maintaining the highest summary
level of financial information from the transaction details supplied by its sub-ledgers.

GL integration with other sub-ledgers and feeder systems is as under:

 Sub-ledgers transfer data to GL through procedures defined for transferring the same in
each sub-ledger. Except Assets, all other sub-ledgers transfer data to GL Interface table.
 The GL Interface table is a temporary table, which ensures that the data is validated before
entering the GL JE tables through Journal Import.
 Journal import creates the JV in unposted form, which needs to be posted to hit the GL JE
tables and GL Balance table.
 Feeder systems can transfer data to GL either from an Oracle Table or from a flat file, which
belongs to the source. One can transfer data to an open interface from which a procedure is
defined to pull the data to the GL Interface table. For doing this a mapping table needs to be
maintained either at the open interface or in the GL interface for mapping values from feeder
systems to GL. This can be done at GL with full validation as well.
 Also on whether to transfer the data in detail or summarized form can be defined in the
feeder system itself or in the open interface or in the GL Interface depending on the
requirement. The rest of the procedure is the same.
Sub-ledgers share Set of books, currency rates, journal sources and categories from GL. 

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What are the various GL Set ups?

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 Set of Books
 Set of books determines the functional Currency, Chart of account structure,
and accounting Calendar for each company or group of companies, which are
known as the 3 C's.
 
 You need to create and set up one or more sets of books. The number of
books you set up depend on various factors, such as:
 Whether you have multiple subsidiaries using different calendars, charts of
accounts, and currencies requiring multiple sets of books
 Whether you have multiple subsidiaries that share the same calendar, chart of
accounts, and currencies that allow them to share the same set of books
 Your organizational requirements or government reporting requirements.

 General Ledger provides you with the flexibility to manage your financial
information within any company structure. One can maintain multiple
companies with similar or different accounting structures, and consolidate their
results for meaningful financial reporting.

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 Chart of Accounts
Chart of accounts: -
Chart of accounts uses Key Flexfield (Accounting Flexfield) that, comprises
Segments, Value sets, Values and Code Combination ID.
 
What is a Flexfield?
All the forms and reports are designed to be flexible and to accommodate many
kinds of business rules for a wide variety of situations. Along with the innumerable
predetermined fields that appear on each screen, most screens can accommodate
the entry of additional information through the use of flexfields.

A flexfield is a field made up of sub–fields, or segments. A flexfield appears on

your form as a pop–up window that contains a prompt for each segment. Each
segment has a name and a set of valid values.

The following terms are used for both key and descriptive flexfields:
. Segment
. Value, Validation (Validate), Value set
. Structure

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 Types of Flexfeild
There are two types of flexfields: Key and Descriptive.
I. Key Flexfield:
 Most organizations use ”codes” made up of meaningful segments (intelligent keys) to identify
general ledger accounts, part numbers, and other business entities. Each segment of the code
can represent a characteristic of the entity. Oracle Applications store these ”codes” in key
flexfields.
 Key flexfields are flexible enough to let any organization use the code scheme they want, without
programming. One has to decide what each segment means, what values each segment can
have, and what the segment values mean. An organization can define rules to specify which
segment values can be combined to make a valid complete code (also called a combination). One
can also define relationships among the segments.
 Key flexfields are dynamic in the sense that they are used throughout the Applications to uniquely
identify information - GL accounts, inventory items etc, that every business needs to keep track of.
 
II. Descriptive Flexfield:
 Descriptive Flexfields (DFFs) enable to capture additional pieces of information from transactions
entered into Oracle Applications. Descriptive flexfields provide customisable ”expansion space”
on your forms.
 One can use descriptive flexfields to track additional information, important and unique to your
business that would not otherwise be captured by the form.
 Each field or segment in a descriptive flexfield has a prompt, just like ordinary fields, and can have
a set of valid values.
 An organization can define dependencies among the segments or customize a descriptive
flexfield.

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 Flexfeild Terms
What is a segment?
 A single sub–field within a flexfield.
 Represented in the database as a single table column.
 Usually describes a particular characteristic of the entity identified by the flexfield
 Determines the structure of the Key flexfield (say chart of accounts).
 Each segment requires a value set to be defined and assigned.
 One has to be very clear on how many segments are required, their order and validation.

These decisions affect the definition of value sets and their values.
 
What is a value set?
 Oracle Application Object Library uses values, value sets and validation tables as important components of key
flexfields, descriptive flexfields, and Standard Request Submission. The end user enters a segment value into a
segment while using an application.
 Generally, the flexfield validates each segment against a set of valid values (a ”value set”) that are usually predefined.
One can share value sets among segments in different flexfields, segments in different structures of the same flexfield,
and even segments within the same flexfield structure. Value sets can be shared across key and descriptive flexfields.

Because the conditions one specifies for the value sets determine what values to be used with them,
both the values and the value sets should be planned at the same time.

What is Structure?
A flexfield structure is a specific configuration of segments. If you add or remove segments,
or rearrange the order of segments in a flexfield, you get a different structure. You can
define multiple segment structures for the same flexfield (if that flexfield has been built to
support more than one structure).
 

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 Defining Chart of Accounts
Defining the Chart of accounts:
Planning the Chart of accounts structure is the most important activity involving the structure,
segments, segment validation and additional features. Analyze the organizational structure and the
dimensions of the business before designing the Chart of accounts. By carefully evaluating the business
needs, design the chart of accounts to take advantage of General Ledger’s flexible tools for recording
and
reporting the accounting information.

The account structure can comprise 30 segments with a maximum character length of 275 for the entire
String. Each string of multiple-segments is called a code combination and stores a code combination ID
based on which balances are maintained in GL. An accounting chart normally consists of Company code,
Line of Business, Cost center, Natural Account, Intercompany and Future.
Defining Key Flexfield Structures
 Define descriptive information and validation information for each segment.
 Determine the appearance of your key flexfield window, the number and order of the segments, and
the segment descriptions and default values.
 Freeze flexfield definition and save the changes once set up or when the structures/segments are
modified. On saving, Flexfield compiles automatically to improve on–line performance.
 Compile the flexfield every time when the changes are made to this form, including enabling or
disabling cross–validation rules and when the changes are made to the shorthand aliases window.
 Oracle Applications submits one or two Concurrent requests to generate database views of the
flexfield combinations table.
 The flexfield changes immediately after freezing and recompiling. However, the changes affect other
users only after they change responsibilities or exit the application and sign back on.

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 Defining Chart of Accounts
(Contd…)
To Determine the Account Structure That Best Suits Your Organization:
 Examine the organization structure to identify how performance and profitability are normally measured
 Also multiple organizational structures may be needed to allow views of the organization from multiple perspectives.
Summary accounts can be used to roll up details.
 Visualize each segment of the account as a unit dimension of the business. Combine units that are based on similar
dimensions to avoid using multiple segments that measure the same dimension.
 Identify the functions, products, programs, funding sources, regions, or any other business dimensions that are to be
tracked
 Determine the reporting needs.

Consider the following questions before defining the account structure:

 What information will better help one to manage one’s organization?
 What are the different ways in which one can look at one’s operations?
 What kinds of reports do managers ask for?
 What reports one prepares now with some difficulty?
 What reports are provided by other financial information systems?
 What statistical reporting does one want to perform?
 Is project reporting needed?
 At what levels of detail does one produce reports?

To Determine Your Account Segment Needs:

 Determine the segment that captures the natural account, such as assets, liabilities, expenses, and so on.
 Define a separate Accounting Flexfield segment for each dimension of your organization on which you want to report,
such as regions, products, services, programs, and projects.
 Group similar business dimensions into one segment. This allows a more simplified and flexible account structure For
example, you only need one segment to record and report on both districts and regions. Because regions are simply
groups of districts, you can easily create regions within your district segment by defining a parent for each region with
the relevant districts as children. Use these parents when defining summary accounts to maintain account balances
and reporting hierarchies to perform regional reporting.

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Defining Flexfield Structure

Select Select
Application Title

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 Defining Flexfield Structure
(Contd…)

To
Freeze/Unfreeze
Rollup Groups

To Enable
Dynamic Insert

Enter Short
Name, Title and
Description

To Compile Each
To Time Changes
To Enable Cross Freeze/Unfreeze Are Made to the
Validation rules the Flexfield Structure

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Defining Flexfield Structure
(Contd…)

Select or Enter the

Custom Segment
Separator

Click on Segments to Open the

Segments Window

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 Defining Segments

Your segment name

should begin with a
letter and use only
letters, numbers, Select the Column
spaces or underscores Enter the (Out of 30)
( _ ).
Segment Name
Select the
Value Set

Enter Window
Enter the Order of Prompt (Form)
the Segments
(Sequential Only)

Click Here to Add

further Features to
Click Here to Define the Value Set
the Value Set

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 Defining Value Set

Enter the Value

Set Name

Enter the
segment name

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Defining Value Set (Contd…)

List of Values- User

will not see a poplist
Long List of Values
-Requires the user to
enter a partial
segment value
before the list of
values retrieves all
available values.
User will not see a
poplist.
Poplist-
To provide a poplist
Guidelines for the
List Type:
Poplist:
<= 10 values
List of Values:
Select the List > 10 and <= 200
values
Type Long List of
Values:
> 200 values

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Defining Value Set (Contd…)

Hierarchical
Security:
If the security is
defined at the Parent
level, then all the Child
Values under that
Parent are also
secured.
Non-Hierarchical
Security:
Security rule that
applies to a parent
value does not
"cascade down" to its
child values.
Select the Security
Type / No Security

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Defining Value Set (Contd…)

Select the
Format Type

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 Defining Value Set (Contd…)
Choosing Format Types:-
Since a value set is primarily a ”container” for the values, value sets are to be defined in such a way that
it
can control the types of values that are allowed into the value set. The format type is the format for the
segment or parameter value. The format type of an existing value set cannot be changed. All of these
format options affect both the values that are entered in the Segment Values windows and the values that
are entered in flexfield segments and report parameters.

The valid format types are:

Format Type Description
Character Used for alphanumeric and special characters; even numbers and date behave as characters/text

Date Time Enforces a date-time format depending on the maximum value set size; treated and sorted as date-
time values. Format: DD-MON-RR-HH24:MI / DD-MON-RR-HH24:MI:SS
DD-MON-YYYY-HH24:MI / DD-MON-YYYY-HH24:MI:SS
Number Only numeric value; all leading zeroes and plus signs are suppressed;behaves as a number;different
than numbers only option for Character.
Standard Date User defined
Time
Time Enforces a time format depending on the maximum value set size; treated and sorted as time
values.Format: HH24:MI/HH24:MI:SS
Date Enforces a date format depending on the maximum value set size; treated and sorted as time
values.Format: DD-MON-RR / DD-MON-YYYY
Standard Time User defined
Standard Date User defined
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Defining Value Set (Contd…)

The Value Set Size must

be less than or equal to
Select Numbers the size of the underlying
segment column in the
Only if Select Uppercase only for flexfield table. Values
Alphanumeric is allowing Alphanumeric never change, but
descriptions can.
not to be allowed

Enter the No of
Decimal Places
Required (Only for
Format Type
Numbers)

Select the Maximum &

Minimum Values for Select Right-justify & Zero-fill Select the Maximum Size
Defining a Range Numbers for uniformity in
of the Values under the
Restriction numbers
Value Set

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Defining Value Set (Contd…)

For Dependent,Translatable
Dependent, Table, Special or
Pair value set, choose the Edit
Information button to open the
appropriate window; Enter any
further information required for
your validation type

Select the Validation

Type for the Value Set

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 Defining Value Set (Contd…)
Value Set Options:-

Value Set Options Format Options Validation Type

Name Format Type Independent (requires Predefined Independent Values; list of values)

Description Maximum Length (maximum length upto Dependent (requires predefined values that are dependent on an independent
which the user can enter the value) value selected in the prior segment of the flexfield; list of values)

No Security/ Precision (No of decimals required) None (user enterable values)

Hierarchical Security /
Non-Hierarchical
Security
List of Values / Long Numbers Only? (Only 0-9, +, -) Table (Predefined Values read from an application table; list of values)
List / Pop List
Uppercase Only? (Alphabets in upper Special
case only)
Right-justify and Zero-fill Numbers? Pair (requires high and low pair of values; list of values)
(Applicable only to numeric values; used
only for sorting and ordering numbers or
to ensure that all numeric values have
the same no of characters)
Minimum Value (Both min and max Translatable Independent (Same as independent but translated value can be
values are used to define the range of used; values security, roll up groups cannot be defined)
values beyond which the user cannot
enter values)
Maximum Value Translatable Dependent (Same as dependent but translated value can be used;
values security, roll up groups cannot be defined)

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Defining Value Set (Contd…)

Indicate that this flexfield

segment is to be used by
checking the Enabled
Enter the Segment check box. Flexfield does
not display disabled
Description segments.
Indicate whether you want
this segment to appear in
the flexfield window. If your
segment is not displayed,
you should provide a
default type and value

Decide whether you should

check the Indexed check
box. GL uses the Indexed
field for the Optimization
feature

This Field Should be

Checked if the Value
Set is Mandatory This Field should
Enter the Display
be Checked to
Size and Prompt
Enable the
Information here
Security Rules

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Defining Value Set (Contd…)

Enter the
Default Value
Based on the
Default Type
Selected

To allow the flexfield to validate

this segment value against
another segment value in this
structure, choose either Low or
High in the Range field.
Segments with a range type of
Low must appear before segments
with a range type of High (the low
Select the Default segment must have a lower
Segment:The default value is the value entered in a prior number than the high segment). If
Type and Value if the segment of the same flexfield window. one chooses Low for one
Enabled check is off. Constant: The default value can be any literal value. segment, then one must also
choose High for another segment
Field: The default value is the current value in the field in that structure (and vice versa).
you designate in the Default Value field. The field must be Otherwise you cannot compile
in the same form as the flexfield. your flexfield.
Profile: The default value is the current value of the user
Click Here to Enter
profile option defined in the Default Value field. the Flexfield Qualifier
SQL Statement: The default value is determined by the
SQL statement you define in the Default Value field.

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Defining Value Set (Contd…
Flexfield Qualifier)

Check These
Boxes Based
on the Qualifier
to be Attached
to the Segment

Cost Center Segment: To be checked against the

segment defined for capturing Cost Centers
Natural Account Segment: To be checked against
the segment defined for capturing Natural Accounts
Balancing Segment: To be checked against the
segment at which a Balanced Trial Balance needs
to be generated
Intercompany Segment: To be checked against
the segment defined for ensuring that Balancing
Segment is balanced.

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Defining Values

Enter the
Parameters
Here

Select the
Options Which
Enter the
You Want to
Parameters
Use for Finding
Here
and Entering
the Values

Click on Find
to Search

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 Defining Values (Contd…)

Click here for

Finding Further
Values

Enter the Value

Description Here

Enter the Journal

Effective Dates for
Which the Value
Needs to be
Enabled

To be Checked for
For value set type Translatable Enabling / Disabling
Enter the Valid Value
Independent or Translatable Dependent, the Value.
Here –
the Translated Value field is enabled. The
Could be
value from the previous step defaults in.
numbers,words,
Translated Value for all installed
abbreviation etc.Once
languages can be updated using the
saved these can’t be
Translation icon in the Toolbar.
deleted

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 Defining Values (Contd…)

Select Whether
Budgeting and Posting
are to be allowed. –
Yes / No

Some key flexfields

use segment
qualifiers to hold
extra information
about individual key
segment values.
ex the Accounting
Flexfield uses
segment qualifiers to
determine the
account type of an
account value or

For Defining Child

For Viewing
Ranges under Check for all
For Moving Child Hierarchies based
Each Parent Parent Values
Ranges between on Parent-Child
Parents Relationship

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 Defining Values (Contd…
Parent-Child Relationship)

Enter the
Range of Select Whether the
Values Range to Include
Child Values or Parent
Values Only

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 Defining Values (Contd…
Moving Child Ranges)

Select the
Destination to Which
Values Have to be
Select the Source Transferred
From Which Values
Have to be
Transferred

Select the Child

Ranges That Need to
be Transferred
Click here to Initiate
the Movement

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Defining Values (Contd…
Viewing Hierarchies)

Click for Drilling Down

or Up.

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Defining Values (Contd…Natural Accounts)

Select the Roll Up

Values here

Select Whether
Budgeting and Posting
are to be allowed. –
Yes / No

Select the Natural

Account Qualifier

Types of Natural
Account Qualifier
Select Whether the
Account is to be
Reconciled or a Control
Account– Yes / No

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 Defining Calendar
Calendar definition involves two steps:
Defining Period Types:
 Each set of books has an associated period type. While assigning a calendar to a set of books, the
set of books only accesses the periods with the appropriate period type.
 One can define an accounting calendar with periods of more than one period type; however,each set
of books will only use periods of a single period type.
 Period types in addition to the General Ledger standard period types Month, Quarter and Year can
be
defined. These period types are used when the accounting calendar for the organization is defined.

Defining the Accounting Calendar:

 Create a calendar to define an accounting year and the periods it contains.
 One should set up one year at a time, specifying the types of accounting periods to include in each
year.Defining one year at a time helps in more accuracy and reduces the amount of period
maintenance done at the start of each accounting period.
 One should define the calendar at least one year before the current fiscal year.
 One can define multiple calendars and assign a different calendar to each set of books. Calendars
created are validated online. Full calendar validation is launched whenever you exit the Accounting
Calendar window.

Carefully consider the type of calendar for the organization, since it can be difficult to change
your
calendar once you’ve used it to enter accounting data.

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Defining Calendar- Period Type

Enter the Period Type Enter the Year Type to

Name – This is What specify whether the General Ledger uses the year type to assign a year
Picked up when defining period is part of a fiscal in the accounting period system name when you
Accounting Calendar or calendar year. set up your calendar.
Calendar: to use the year in which an accounting
period begins for the system name.
Fiscal: to use the year in which your fiscal year
ends for the system name.

Enter the No of Periods

Per Year – 4,12,52,366
Enter the
etc.
Period
Description

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Defining Calendar- Accounting
Calendar
Enter Number of the Period
in the Year.
Enter the Calendar
Ex. Jan – 1, Feb –2, Mar –
Name and
3 etc.
Description

Enter the
Period Name
Enter the From and To
Prefix
Date for each Period

Assigned automatically;
The Period Name = Prefix
+ Fiscal/Calendar Year
(YY)

Adjusted Period is
normally the Period where
all year end accounting
adjustments are passed
before year closure.
Normally this Period will
Check if Any Period has have the last date of the
Enter the Quarter No Fiscal year as the From and
been Defined as an
in Which the Period to Date.
Adjusted Period. (ex. 13
Enter the Year Falls
Select the Period Type Periods: 12 periods + 1
Ex. Jan- Mar – 1, Apr-
from the Period Types Adjusted Period)
Jun –2 etc.
defined earlier

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 Defining Currency
Use the Currencies window to define non-ISO (International Standards Organization) currencies, and
to enable/disable currencies. Oracle Applications has predefined all currencies specified in ISO
standard #4217. To use a currency other than U.S. Dollars (USD), you must enable the currency. U.S.
Dollars (USD) is the only currency that is enabled initially.

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Defining Currency (Contd…)

Precision: to
designate the number of
digits to the right of the
decimal point used in
regular currency
transactions.
Extended Precision: to
designate the number of
digits to the right of the
decimal point used in
calculations for this
currency.

Enter the Unique Currency Enter the Name and Select the Currency
Enter the Currency
Code for the Currency Description for the Issuing Authority
Symbol
Currency

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Defining Currency (Contd…)

Enable the Currency to

Start Using the Same.

Enter Effective Dates for the currency.

Only transactions denominated in this
currency for dates within the range can be
entered. If start date is blank, the currency
is valid immediately. If end date is blank ,
the currency is valid indefinitely.

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 Defining Set Of Books
Enter the Name and
Description of the Set of
Select the Chart of Enable the Short Name
Books
Accounts Defined Earlier to Appear on the Title
Bar of each Window.

Select the Functional

Currency Defined Earlier

Select the Future Enterable

Periods (but not post able)

Enter the Default

Retained Earnings
Account from the
Values Defined earlier

Select the Default

Translation Account where
the /Year end Foreign
Select the Calendar Currency Translation
Defined Earlier adjustments are to be
adjusted.

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 Defining Set Of Books- Standard Options

When Journal Approval is

enabled and a journal entry’s
journal source requires
approval, the journal must be Allows users to post out-of-
approved by the appropriate balance journal entries and
level of management before any automatically balance those
further action can be taken. journal entries by posting the
offset against a suspense
account.
If this option is enabled, then one
must enter a suspense account
If this option is not enabled, only
journal entries that balance can
be posted.

Allows users to post out–of–balance

intercompany journal entries, and
automatically balance intercompany
journals against an intercompany
account specified in
the Intercompany Accounts window.
Allows to manually enter taxable
If one does not choose to balance
journal entries in General Ledger. Allows to track penny
intercompany journals, then
When this feature is enabled, the differences in currency conversions.
intercompany journals will balance
system will automatically calculate If this option is enabled, a rounding
only by balancing segment (usually
associated tax amounts and differences account must be entered
the company segment).
generate tax journal lines.

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Defining Set Of Books – Average Balance Feature

Select the Translation rate Type for How the Average

Translating Average Balances. Balances are to be
(User, Spot, Corporate, Average) Maintained? End of Day,
Allows to use the set of books for Quarter or Year to date.
average balance processing.
Once average balance processing is
enabled, GL automatically stores the
aggregate balances that are used to
calculate average and end–of–day
balances.
Average Balance feature provides
organizations with the ability to track
average and end–of–day balances,
report average balance sheets, and
create custom reports using both
standard and average balances.
Average balance processing is
particularly important for financial
institutions, since average balance
sheets are required, in addition to
standard balance sheets, by many
regulatory agencies and for internal
management reporting and
GL calculates the average balance for
profitability analysis.
Choose this retained earnings the same way that it
Option if this computes average balances for any other Average balance is computed as
A transaction calendar is to be defined using the
Set of Book is account. However, since the system does not the sum of the actual daily closing
Transaction Calendar form. Specify a name and an
going to be maintain average balances for revenue and balance for a balance sheet
optional description. Using this information, GL creates a
used for expense accounts, some special processing account, divided by the number of
transaction calendar which includes an entry for every
Consolidating takes place to handle this particular calendar days in the reporting
calendar day in the range of dates which exist in GL Each
Average component of retained earnings. period.
entry
balances. GL uses a special non–postable net income
includes three items:
Transaction account to capture the net activity of all
• Date: the actual calendar date.
Calendar is revenue and expense accounts. The account
• Day of Week: the day of the week.
not required is treated as a balance sheet account,
• Business Day indicator: shows whether the entry is
with account type of Owners’ Equity. Its three
defined as a business day. One can change the initial
stored aggregate balances are used to
default values to suit own needs. After the transaction
compute the net income impact on the
calendar is created, one should specify holidays by
retained earnings average balance for any
changing the Business Day indicator to non–business
given period, quarter, or year.
day.Transaction calendars and accounting calendars are
completely independent of each other.

EAS – Oracle Apps

Defining Set Of Books – Budgetary Control

Budgetary control refers to the process of recording budget data and

tracking encumbrance and actual data against a budget.
Funds checking is the feature of budgetary control that helps prevent
overspending budgets by verifying available funds online before
processing a transaction. With funds checking, one can verify
Select whether Budgetary transactions online against available budget, immediately update funds
Control amounts are to be available for approved transactions, and control expenditures at the
entered only through Journals detail or summary level. If you use funds checking, you must use either
or other Methods of entry. encumbrance accounting or the budgetary accounts method of tracking
budget data.

Enter the Reserve Account

where the Encumbrance
amounts are to be
adjusted.

EAS – Oracle Apps

Defining Set Of Books - MRC

Primary: The Functional

Currency set of books
which report to them
assigned Reporting books
Reporting: The main Book
to which all Primary books
Use Multiple Reporting Currencies (MRC) to maintain
transactions and account balances in multiple currencies. report into converted into
MRC is specifically intended for use by organizations that the Reporting book
must regularly and routinely report their financial results currency
in multiple currencies. None: MRC is not required
MRC is not intended as a replacement for GL translation
feature.An organization with a once–a–year need to
translate their financial statements to their parent
company’s currency for consolidation purposes, but no
other foreign currency reporting needs, should use GL
standard translation

EAS – Oracle Apps

Defining Intercompany Accounts
 If multiple companies in an enterprise share the same set of books, one can automatically balance
intercompany journals. To do this, one has to define intercompany accounts for different
combinations of source, category, and balancing segment value.

 The relationships defined in the Intercompany Accounts window can have the following results
when you create intercompany transactions:
•Require a user to specify an originating intercompany account when entering an intercompany
transaction in the More Criteria window, a sub-window of the Enter Journals window.
•Assign a default intercompany account for intercompany transactions. General Ledger posts a
balancing amount to this account when there is no intercompany account defined for a matching
source, category, and balancing segment value.
•Require all intercompany transactions to balance with the company originating the intercompany
transaction.
•Require all intercompany transactions to balance against a defined intercompany account

 GL can also balance intercompany transactions in summary or detail, depending on business

practices.

EAS – Oracle Apps

 Defining Intercompany Accounts
(Contd…)
Various Balancing Options:
The Clearing Company Usage and Default Options tabs let you specify options for processing intercompany transactions among multiple companies
or subsidiaries. The choices you select in these tabs determine how General Ledger automatically creates balancing entries for these types of
journals. You can select only one option each from the Clearing Company Usage tab and Default Options tab per source and category combination of
intercompany account definitions.

The Always Use Clearing Company option lets you define how clearing companies are applied to all types of transactions as described below. The
relationship refers to how many companies are involved on the debit and credit side of the transaction.
• Single to Single: If you transfer an asset from one company to another, you create a single to single transaction that debits one company and
credits another company.
• Many to Single: If one company charges many companies for engineering services in a single transaction, you create a single to many
transaction that debits multiple companies and credits a single company.
• Single to Many: If many companies transfer inventory items to one company, you create a many to single transaction that debits the single
company and credits many companies.
• Many to Many: If many companies are cross charging one another, you create one many to many transaction that reflects all the business
transactions between the many companies. A single transaction debits many companies and credits many companies.

The Many to Many Intercompany Transactions Only option lets you define how clearing companies are applied to many to many
transactions only.

Clearing Company Usage Tab

Always Use Clearing Company:
Choose this option to apply one of the two choices in the Default Options tab; Error Out or Use Default Clearing Company. This Clearing Company
Usage option applies to any intercompany transaction you enter whether it involves single to single, single to many, many to single, or many to
many companies.

Many to Many Intercompany Transactions Only:

Choose this option to apply one of three choices in the Default Options tab; Error Out, Use Default Clearing Company, or Use Default Balancing
Account. This clearing company usage option applies only when the intercompany transaction involves many companies to many companies.

Default Options Tab

Error Out:
If you select this option and a clearing company is not specified in the More Criteria window, the posting process will error.
Use Default Clearing Company:
Choose this option to balance intercompany transactions against a default clearing company. This company does not have to be a party to a
transaction, but is the company against which all trading partners will balance.
Use Default Balancing Account:
Choose this option to apply the default Due From and Due To balancing accounts defined for the All Other Balancing Segment.

EAS – Oracle Apps

Defining Intercompany Accounts (Contd…)

Specify the Source and

Category that apply to the Select depending on
intercompany account(s). Clearing Company and
Default Option

When the posting program

applies intercompany
balancing, it will search for the
intercompany account template
that matches the source and
category of your journal entry.
If the program cannot find an
Specify the Default Due to and Due intercompany template with a
From Account for the Default matching source and category,
Company ‘All Other’ the program searches for the
intercompany account template
for the journal source and
category Other. If the program
cannot find an intercompany
template with a matching
journal source and category
Other, the program will search
for the intercompany template
with the journal source Other,
If you choose to balance by summary and a and the category Other.
balancing segment has both debit and credit
entries, the resulting balancing line(s) display
amounts in both the debit and credit columns.
The combined value is the net balance for
that balancing segment.

EAS – Oracle Apps

Defining Intercompany Accounts (Contd…)

Select depending on
Clearing Company and
Default Option

Mention the Default Clearing Company

Account if Default Clearing Company is
selected.

EAS – Oracle Apps

 Defining Journal Sources
Source appears in the
Journal Header to identify the
(Average Balance Processing
JV to a feeder system / sub-
only) select an Effective Date
ledger
Rule for this journal source:
•Fail: Journal Import will reject
transactions when the
Enter the Source
effective date is not a valid
Name and Description
business day. No posting
takes place.
•Leave Alone: Journal import
will accept all transactions
regardless of the effective
date.
•Roll Date: Journal Import will
accept the transaction, but roll
the effective date back to the
nearest valid business day
within the same period. If there
is no prior valid business day
within the same period, the
effective date is rolled forward.

Choose whether to Import

Journal References from
feeder systems to maintain a
mapping of summarized If this is checked, journals from this
If journal approval is enabled
transactions if summary source cannot be changed in the Enter
for the set of books and one
journal option is used at the Journals window. If one subsequently
enters a journal whose journal
time of running Journal unmark this checkbox, one can make
source requires journal
Import. changes to journals from this source.
approval, the batch must be
approved before it can be
posted.

EAS – Oracle Apps

Defining Journal Categories

Enter the Category

Name and Description

Category appears
in the Journal
Header to
segregate JVs
based on the
nature of JV
ex. Year End,
Provisions,
Adjustments etc.

EAS – Oracle Apps

 Document Sequences
 Document sequences are basically required for generating unique document numbers for
each document generated by Oracle Apps. Ex. Invoices, Payments in AP, JV in GL etc.

 Define document sequences and save the work. The initial value has to be carefully done
as the same initial value can be defined to multiple sequences.

 After defining document sequences, you must assign a specific sequence to an application
and category. The options available are as under:
 The sequences can be assigned based on the set of books and/or creation method of the document.
 Document sequences can be assigned only to only those journals created for actual transactions.
 One can choose to assign sequence numbers to journal entries that General Ledger automatically
creates, or to journal entries that are entered manually in the Enter Journals window.
 Only one active document sequence scheme can be assigned to each unique combination of
Application, Category, Set of Books, and Method.
 However, the same document sequence can be assigned to more than one combination of Application,
Category, Set of Books, and Method.

 In GL, document sequences are used to number journal entries, enabling one to account
for every journal entry. This feature can be better utilized if all types of categories are
assigned unique document sequences.

EAS – Oracle Apps

 Defining Document Sequences
Enter the Document Sequence
effective dates; this is the document
date and not system date. Once
disabled, one cannot reactivate a
sequence.
For an automatic
sequence, choose
whether to display a
Message to
inform the user of the
sequence name and
number.

For an automatic
sequence, enter an
Initial Value for the first
document in your
sequence.

Enter the Unique

Document Sequence
Name
Automatic: GL sequentially assigns a unique number to Grant Access to your
each document as it is created. Documents are numbered in order document sequence
by date and time of creation. from General Ledger
Manual: The user must assign a number to each document when it by
Select the Application for
is created. One must enter unique values. Sequential ordering and selecting Oracle
which this Document
completeness are not enforced. Usernames (ORACLE
Sequence is to be used
IDs).

EAS – Oracle Apps

Assigning Document Sequences

If the document sequences are assigned

by entry method, select the creation
Method of the documents:
Automatic: Assign sequential numbers
to journal entries created
Select the Application, Category
automatically by General Ledger.
and Set of Books to which the
Do not assign sequences defined with a
Document Sequence applies.
manual numbering type to an automatic
creation method.
Manual: Assign sequential numbers to
journal entries that are entered manually
using the Enter Journals window.

EAS – Oracle Apps

Assigning Document Sequences
(Contd…)

Enter a Sequence name. Only the

document sequences that were
defined for the application specified
can be chosen

Select the Application, Category

and Set of Books to which the
Document Sequence applies. Enter a Start Date for the sequence assignment.
Once the sequence is assigned the Start Date
cannot be changed.
Enter an optional End Date. The End Date can
entered / changed at any time.

EAS – Oracle Apps

Flexfield Additional Features – Dynamic Insert On
Dynamic insertion is the insertion of a new valid combination into a combinations table from a
form other than the combinations form. If one allows dynamic inserts while setting up the key flexfield,
a user can enter a new combination of segment values using the flexfield window from a foreign key form.
Assuming that the new combination satisfies any existing cross–validation rules, the flexfield inserts the
new combination into the combinations table, even though the combinations table is not the underlying
table for the foreign key form.

For some key flexfields, dynamic inserts may not be allowed. Sometimes it may not make sense for an
application to allow a user to be able to create a new combination from any form other than the
combinations form. For example, a user should not be able to create a new part while taking an order for
parts using an Enter Orders form; the application should restrict the creation of new part numbers to
authorized users using a Create Parts form.

Dynamic inserts may not be technically possible for some key flexfields. If the combinations table contains
Mandatory columns that are not maintained by the flexfield, dynamic inserts would not be possible. If the
combinations table contains mandatory non–flexfield columns, such as a ”unit of measure” column, the
flexfield would not be able to complete the entire row in the combinations table from the foreign key form
(because the base table of the foreign key form is not the combinations table). The flexfield does maintain
the CCID column.

Generally there is only one, if any, combinations form for a given key flexfield. In some
applications, there may not be a combinations form. In these cases, you would use dynamic inserts to
create new combinations.

Short Hand Aliases:

Cross Validation Rules:
Flexfield Security Rules:

EAS – Oracle Apps

Flexfield Additional Features – Shorthand Aliases
Shorthand flexfield entry allows to enter key flexfield data quickly by using shorthand aliases to represent valid
flexfield combinations or patterns of valid segment values. A shorthand alias is a word or code that represents a
complete or partial key flexfield combination.
 Shorthand flexfield entry helps you satisfy the following data entry needs:
 Enter key flexfield data quickly by associating shorthand aliases with frequently–used sets of valid key flexfield
segment values.
 Associate either complete or partial flexfield combinations with shorthand aliases.

 For each key flexfield structure, one can define as many shorthand aliases as one needs.
 If the shorthand aliases are changed, they take effect immediately.
 If Shorthand Flexfield Entry is enabled and the Flexfields:Shorthand Entry profile option is set to an appropriate value, the
shorthand window allows to enter an alias before the flexfield window opens. The combination/partial combination defined
for the alias is entered into flexfield window.
 Invalid values cannot be entered into a single segment of a shorthand alias, but the Shorthand Aliases window does not
identify invalid combinations of segment values in an alias. If one defines aliases that contain values that become invalid
later, the flexfield detects these invalid values at the time the alias is used in the flexfield window.Flexfield then does not allow
to enter the invalid values.
 Flexfield also checks the alias against security and cross–validation rules.

Changing your key flexfield structure after defining aliases

 If the key flexfield structure is changed after defining aliases, the existing aliases have to be changed to match the new
structure.
 Changes that make existing aliases invalid include: changing the order of segments, adding/disabling/changing segment
lengths
 Whenever one enables or disables shorthand entry, the key flexfield should be recompiled. Shorthand flexfield entry can be
enabled/disabled user-wise by setting user profile option Flexfield: Shorthand Entry to an appropriate value.

EAS – Oracle Apps

Flexfield Additional Features – Shorthand Aliases (Contd...)

Select the Application, Flexfield

Title and Structure Name (COA)

Enable and enter the Window

Prompt. Enter the maximum
alias size, which determines
the maximum length of the
shorthand aliases.

One can define the

complete or partial set of
key flexfield segment
values (the template) that
each shorthand alias
represents. These values
can be valid flexfield
combinations or different
patterns of valid segment
values.

Give the Alias Name,

Account Details in the
Shorthand Template and
Alias Description.

EAS – Oracle Apps

Flexfield Additional Features – Shorthand Aliases (Contd...)

Uncheck the Enabled check box, or

set either From to a date later than
today or To to the date of the If the alias is to be effective for a
last day the alias should be valid. limited time, one can enter a start
If the Enabled check box is date and/or an end date for the alias.
unchecked, the alias is disabled The alias is valid for the time
regardless of the effective dates including the From and To dates.
given. This can be enabled again.

EAS – Oracle Apps

 Flexfield Additional Features – Cross Validation Rules

What is Cross–Validation?
A cross–validation rule (CVR) defines whether a value of a particular segment can be combined with specific
values of other segments.
 CVR is used to prevent the creation of combinations that should never exist. A key flexfield can perform automatic cross–validation of
segment values according to the rules an organization defines for customizing the key flexfield.
 CVR can be used to closely control the creation of new key flexfield combinations, and for maintaining a consistent and logical set of
key flexfield combinations.
 When a user finishes entering segment values in a flexfield pop–up window, the flexfield checks whether the values make up a valid
combination before updating the database. If the user entered an invalid combination, a diagnostic error message appears,and the
cursor returns to the first segment assumed to contain an invalid value.
 CVR controls combinations of values within a particular key flexfield structure. CVR applies to combinations users attempt to create
using either the combinations form or foreign key forms (using dynamic inserts).

CVR and Existing Combinations

 CVR has no effect on existing combinations and continues to treat them as valid since the existing combinations pre–date the rule.
However, if end user tries to create a new combination that violates the new CVR, the flexfield returns an error message and rejects
the combination.If previously–existing combinations are no longer valid according to the CVR, one can always manually disable those
combinations using the combinations form.
 Changing an existing key flexfield structure may adversely affect the behavior of any CVR one has for that structure.One should be
sure to manually disable or redefine any CVR to reflect the changed structure.
 Each CVR contains one or more rule elements, where each element is a key flexfield range that specifies low and high values for each
segment. One identifies a rule element as either Include or Exclude.
 Include means include all values in the specified segment ranges,and Exclude means exclude all values in the specified segment
ranges. Every cross–validation rule must contain at least one Include rule element. Exclude rule elements override Include rule
elements.
 Determine in which segment the cursor should be placed when a key flexfield combination fails a validation rule. Choose the segment
that will most likely be in error. The error message and the segment to which the cursor returns should correspond.
 Avoid rules that control cross–validation across more than two segments, where possible.

EAS – Oracle Apps

Flexfield Additional Features – Cross Validation Rules (Contd...)

 Using Include and Exclude Ranges

Combinations must pass all cross–validation rules. Within each rule, combinations must be in at least one include range.
Within each rule, combinations cannot be in any exclude ranges.
 Using Include Ranges
Accomplish the control objectives primarily with include ranges to have a stricter key flexfield structure.With include ranges,
all valid combinations are listed
 Using Exclude Ranges
Accomplish the control objectives primarily with exclude ranges when the key flexfield structure is less structured and
the key flexfield segments do not have a lot of interdependencies. In this situation, most combinations are to be accepted
and only some exceptions to this general rule are required.
 Min and max possible values
The lowest and highest possible values in a range depend on the format type of the value set.
 Using Blank Segment Values
 Blank segment values in CVR make the rule easier to define and maintain.
 A blank segment value means one wants to include or exclude ”all the way to the end” of the range.
 Low blank segment:- the minimum value for the Include or Exclude range is automatically the smallest value possible for the
segment’s value set.
 High blank segment:- the maximum value for the Include or Exclude range is automatically the largest value possible for the
segment’s value set.
 A blank segment value (null value) is considered to fall within a range that has one or both ends specified as a blank.
 However, if each of your segments require a value, you would not be able to create a combination with a blank segment anyhow.
 Review existing key flexfields when you update your CVR to maintain consistent validation. Regardless of your current CVR,
Oracle Applications accepts a key flexfield combination if the combination already exists and is enabled
 Oracle Applications Release 11 contains two reports you can use to help maintain a consistent and logical set of rules and key
flexfield combinations. The two new flexfield cross–validation reports appear in the System Administration responsibility.Cross–
Validation Rule Violation Report Cross–Validation Rules Listing Report

EAS – Oracle Apps

Flexfield Additional Features – Cross Validation Rules (Contd...)

Select the Application, Title Name

and Structure Name

Enter the CVR

Name, Description
and Enable the same

Enter the Error

Message, Error
Segment and The CVR
Effective dates

Enter the Include /

Exclude Rule Elements
and the Low/High Range
of values

EAS – Oracle Apps

Flexfield Additional Features – Roll Up Groups

Select the Value Set Name for which

Roll Group is to be defined

A rollup group is used to

identify a group of parent
values for reporting or other
application purposes.
Key flexfield segment values
are assigned to rollup groups
using the Segment Values
window.
Rollup groups are used to
create summary accounts for
reporting purposes.

Enter the Roll Up Group Code,

Name and Description; The Code
is what is to be Selected against
each Parent Value.

EAS – Oracle Apps

 Flexfield Additional Features – Security Rules

Security Rules are used to

Prevent Entry by certain
Select the Value Set users to a particular
name for Which the segment for a specific range
Security Rules are to be Security Rules are defined
Defined first and then assigned to a
responsibility.
They are user based
restriction for a single
segment whereas CVR
considers the entire segment
structure and is at a Global
level.

Enter the Security Rules

Name, Description and
the Error Message to
Appear

Use the Enter and Exclude

Features as explained in CVR;
here it is specific to a single Click here to Assign the
segment not the entire string Security Rule to a
as in CVR. Responsibility

EAS – Oracle Apps

Flexfield Additional Features – Security Rules (Contd…)

Select the Application

and the Responsibility to Select the Security Rule
which the Rule is to be Name defined earlier.
assigned

EAS – Oracle Apps

 Summary Accounts
A summary account is an account whose balance is the sum of balances from multiple detail accounts. Use summary accounts to
Perform online summary inquiries, as well as speed the processing of financial reports, Mass Allocations, and recurring journal
formulas.
Planning your summary accounts:
 Determine the summary account needs and Plan the summary account structure to meet those needs.
 Plan the parent segment values and rollup groups needed for summary accounts.
 Plan summary account templates to generate multiple summary accounts.
Determining summary account needs:
 Consider the summary information needed for reports. One can use summary accounts for faster access to summarized balances.
 Identify the summary balances needed for online inquiries.
 Consider how to use summary accounts in formulas and allocations:
• Use summary accounts to reference summary balances in a recurring journal formula.
• Use summary accounts to reference summary budget balances in a budget formula.
• Use summary accounts when entering budgets with budget rules.
• Use summary accounts to indicate the total amount to allocate when defining allocation formulas. Also, use summary accounts to help
calculate the allocation ratios to use in allocation formulas.
 Choose ways to summarize accounting information depending on the structure of account and informational needs.
 For any organizational dimension one wants to summarize, determine how many summarization levels are needed within that dimension. After
considering how to summarize within each of the organizational dimensions, think about how to combine the summary views across different
organizational dimensions.
 Consider whether to create these summary relationships with summary accounts, or with reporting hierarchies. One can achieve the benefits
of summary reporting with reporting hierarchies instead of summary accounts.To define parents for each of the account segments, organize the
account structure to use ranges to easily define the children for the parent values.

EAS – Oracle Apps

 Summary Accounts (Contd…)
Determining the parent values and rollup groups:
 Plan the parent segment values. When determining the values of parents for each account segment, consider the structure of values within that
segment.
 If the segment values are logically organized and the child values for parent are all in a contiguous range, a logical value for the parent is
the first or last value in the range; reserve the first or last value in the ranges for a summary value.
 If the segment values do not follow a particular structure, and allows alphabetic characters, one can use alphabetic characters for parent
values. The alphabetic characters not only distinguish the parent values from detail values, but they can also provide some description
for the parent value.
 Define the parent segment values, and enter meaningful segment value descriptions.
 Choose a naming or numbering method for rollup groups that is similar for all segments to establish a more memorable and logical rollup group
structure. This consistent rollup group structure helps you know the approximate level of detail the parents in rollup groups provide.
Planning Summary Account Templates
Set up templates to define and maintain summary accounts. One can enhance the speed of summarizations by controlling the number of summary
accounts created by the template, which depends on the template segment values.
Entering Summary Account Templates
From the Summary Accounts window, enter the summary account Template using one of the following values for each segment:
D: Template creates and maintains a summary account for every detail segment value. This value creates the most summary accounts of any
template value.
T: Template creates and maintains a summary account that sums balances of all detail segment values. This value creates the fewest summary
accounts of any template value. If one enters T for a segment, all summary accounts created by the template will have the value T for the segment.
Therefore, the value T must be defined and enabled for the segment. Also, the segment value must be a parent and detail posting and budgeting
are not allowed.
[Rollup Group Name]: The template creates and maintains a summary account for each parent segment value assigned to the rollup group
specified. The more parent segment values in a given rollup group, the more summary accounts your template creates.

If one make changes to the flexfield hierarchies that affect summary accounts, run the Incremental Add/Delete Summary Templates program to
update the summary account balances else the changes to the account hierarchies and rollup group assignments are ignored.
Maintain Summary Templates Program Use this program to ensure that summary account balances reflect new detail accounts that may have
been added to that summary account.

EAS – Oracle Apps

Summary Accounts (Contd…)

Enter the Summary Account

Name, Template definition and
Description

GL submits a concurrent
request to add the
summary accounts, and
displays the Status of the
summary template.
Current: The summary
accounts are active.
Adding: The concurrent
request to create
summary accounts is
pending or running.
Deleting: The concurrent
request to delete summary
accounts is
pending or running.
Enter Earliest Period from
which the Summary Template
is to be used. GL maintains
summary account balances for
this accounting period and for
subsequent periods.

EAS – Oracle Apps

 Q&A

EAS – Oracle Apps