Before any system can be used, it has to be “set up”. Hence usage follows setup. This is something common. Therefore before the module GL becomes financials; it must be set up.
Oracle General Ledger is a complete financial management system for recording transactions, maintaining account balances and creating financial statements.
A] VALUE SETS
The value set contains a predefined name which contains information regarding segments, viz., the data type for the segment, maximum size of the segment (not more than 25 characters) minimum and maximum values of the segments. Value set is required to ensure that there is consistency as regards codes used. For the consistency a set of regulating rules have to be recorded. These rules ensure that only the values testing positively against these conditions are accepted. It is a group of values and related attributed you assign to a key flexfield segment or descriptive flexfield segment.
Note: For each segment there should be a separate value set.
VALIDATION TYPES FOR VALUE SETS
INDEPENDENT: It is an individual value set and there is no relation to this value set.
DEPENDENT: This value set always depends on an independent value set.
TABLE: This value set is used for retrieving the data or values existed in a table by using select statements.
NONE: Values cannot be stored by using this value set. During the transaction level values are entered.
PAIR :
SPECIAL: These value sets are used for descriptive flexfields.
FIELD: It is an area where data can be entered, updated and from where it can be deleted.
FLEXFIELD: A flexfield is a field made up of sub fields or segments. A flexfield appears on your forms as a pop up window that contains a prompt for each segment. Each segment has a name and a set of valid rules.
There are two types of flexfields.
Key Flexfield: The flexfield used for pinpointing accurate information are called key flexfields. It is made up of segments where each segment has both a value and a meaning, so we can think of flexfield as an intelligent field that business can use to store information represented as codes.
Descriptive flexfield: The flexfield used for describing an entity is termed as descriptive flexfield. According to the business requirements, descriptive flexfields are used to expand oracle application or to customize the same. It enables to capture additional information from the transactions.
Accounting Key Flexfields:
The OGL module contains only one key flexfield “ accounting key flexfield’, which will give us the financial information like how the data will be entered, how to generate reports, viz., financial statements. Without writing any program-codes, it can be customized as per business requirements.
Structure: The combination of segments with value sets is called as a structure.
B] SEGMENT
Segment is a single sub field within a flexfield. You can define the structure and meaning of individual segment when customizing a flexfield. It is also a part of the organization where information regarding division, region, company, product, department, etc., can be stored.
Organization
Company
Department
Accounts
In GL module, there should be a minimum of 2 segments (company & accounts) and a maximum of 30 segments.
VIEW: Using the view name, the rest of the modules of oracle application can be mapped for reports.
ALLOW DYNAMIC INSERT [check box]: It allows the user to enter a new unique code combination required. (It can be expanded as required).
Segment separator: They are . : - . Using segment separators the code combination values can be identified.
Freeze Flexfield definition: After enabling this checkbox, the structural information cannot be modified. For modifying information the checkbox has to be disabled.
Compile (push button): Once the freeze flexfield checkbox is enabled, the compile push button is activated. This push button will create the code combinations and flexfield view for the flexfield structure. After clicking the compile push button, the system will provide the user a “request”.
Request: It is the feedback information from the server. It finds the status of your structure and whether the program is successfully compiled. For knowing about the request status the following path is to be used. View – request.
We have 4 statuses of the request:
Stand by
Running
Pending
Error
Warning
Inactive
No manager
Completed
C] QUALIFIERS
Qualifiers are words that explain the functions performed by a particular segment. There are four flexfield qualifiers provided by oracle for accounting flexfields. They are:
Balancing segment
Cost center segment
Natural accounts
Inter-company adjustment
Balancing Segment: The balancing segment qualifier is to be assigned to the company segment or enterprise segment or corporation segment. This assignment ensures that the debits at the company level are equal to the credits by compiling with the matching principle of accounting.
Cost Center Segment: The cost center segment qualifier allows us to draw special readymade reports provided by the module oracle assets. The use of it is high utility. Cost center assignment pertains to the fixed assets. Use of cost center qualifier is not mandatory, it is optional. By attaching this qualifier to any segment, income and expenditure of any cost division can be found out viz., department-wise, division-wise, cost is basically incurred at department / division.
Natural Accounts: This qualifier allows the user to specify the account types. The standard account types provided are:
Expenses
Revenue
Assets
Liabilities
Ownership / stockholders’ equity
Inter-company adjustment: For adjustment of inter-company transactions, this qualifier is used. It is not mandatory.
Segment Qualifiers:
Allow Posting: By attaching this qualifier at any segment, the journals will be allowed to post at that segment level.
Allow Budgeting: Budgets will be prepared at segment level when this qualifier is attached.
Account Type: The account types, viz., expenses, revenues, assets, liabilities, stockholder / ownership describes the type of account. In addition to 'allow posting' and 'allow budgeting’, this qualifier is also attached to accounts.
Reconciliation Flag: For account segment to reconcile the accounts with any sub accounts.
Control account: For controlling the sub accounts, if any.
D] CURRENCY (Define or enable)
Code Description Territory (country) Precision
INR Indian Rupee India 2
USD US Dollar USA 2
AUD Australian Dollar Australia 2
(ISO has recognized approx. 240 country’s currency)
Using the currency code, we can record the expenses and income of every country. Whenever, oracle application is installed, it creates all the ISO currency codes. If those defined currencies are to be used, we have to enable that currency.
Non ISO currency codes can also be created.
E] PERIOD TYPES
Period – Daily / Monthly / Quarterly
Using period types, you can divide the financial year as per requirements for reporting purposes. In a fiscal year, two calendar years are covered.
Future Period: If the user gives No1 option, one future period will be opened.
F] CALENDAR
Accounting calendar
This calendar defines your accounting periods and fiscal years in OGL. Using accounting calendar window, accounting calendars are defined. Oracle financial analyzer will automatically create a “Time Dimension” using your accounting calendar. Give a prefix to every period to identify the same.
Fiscal Calendar
Without relation to a calendar year, any yearly accounting period is called a fiscal year. If fiscal year has been defined, the user should specify the AD of termination of the year.
Calendar Year
If the calendar year has been defined, the user can specify the AD of commencement.
Transaction Calendar
Using this calendar, you can setup the business on and off days (i.e., holidays). Apart from weekly holidays, additional holidays can be included. This calendar helps to restrict the user to enter any transactions on any holiday or business off days. The financial institutions will generate average balances reports with the help of this calendar.
G] SET OF BOOKS
A financial reporting entity that uses a particular chart of accounts, functional currency and accounting calendar, at least one set of books has to be defined for each business location.
Standard Options
Allow suspense posting
Enable average balance
Journal approval
Journal Entry tax
Budgetary Control Options
Enable Budget Control
Required Budget Journal
Average Balance options (Amount Rate Type)
QTD – Quarter To Date
PTD – Period To Date
YTD – Year To Date
EOD – End Of Day
Mandatory Accounts
Retained Earnings: The earlier period or earlier year balances will be transferred whenever the user closes the accounting period. This is a compulsory account to be created.
Suspense account: The difference in the amounts of debit and credit of the transactions will be transferred to this account. If the user, enables the 'allow suspense posting' checkbox in the standard option then this account gets activated.
Rounding off adjustment: The transaction total amounts can be adjusted (rounded off) to the nearest currency denomination and the difference is posted to this account.
Translation Adjustment account: If the user wants to translate the functional currency balances to foreign currency and if there is fluctuation in the currency rates in between the periods then the difference because of currency rates will be recorded in this account.
Reserve for encumbrance: Prepayments or anticipated expenditure is called as encumbrance. If budgets are to be prepared, this account will be created by enabling ”budget control” in the budget control option.
Net Income: If the average balance option is enabled in the set of books, enabling “average balance” check box in standard options will create the net income account. This account is not to be posted manually.
Mandatory Account Chart
Code | Account Name | Allow Budgeting | Allow Posting | Type of account |
M01 | Retained Earnings | Yes | Yes | Stock/ownership |
M02 | Suspense Account | Yes | Yes | Asset/ Liability |
M03 | Rounding Off Difference Account | Yes | Yes | Stock/ownership |
M04 | Translation Adjustment | Yes | Yes | Stock/ownership |
M05 | Reserve for encumbrance | Yes | Yes | Stock/ownership |
M06 | Net Income | Yes | No | Stock/ownership |
H] USER PROFILE
After defining set of books, the books will have to be assigned to a single or multiple users. After assigning the books, the user can perform and record transaction in the set of books.
I] OPEN / CLOSE ACCOUNTING PERIODS
After assigning the set of books, for recording the accounting transactions, the user should open the desired accounting period. Once the transactions are completed, the period can be closed.
The five statuses of accounting periods are:
Never Opened
Open
Future period
Closed
Permanently closed
J] DETAILS OF TABLES IN GL
Fundamental (Master) Tables:
Fnd_Applications
Fnd_ID_Flex_Structure
Fnd_ID_Flex_Code
Fnd_Tables
Fnd_Flex_Values
Fnd_ID_Value_Sets
Fnd_Columns
Base or Set Up Tables
Gl_Code_Combination (view)
GL_Set_Of_Books
STEPS FOR DEFINATION OF SET OF BOOKS
1. Define value sets
Setup: Financials: Flexfield: Validation: Sets
2. Define key flexfield segments
Setup: Financials: Flexfield: Key: Segments
3. Enter the segment values
Setup: Financials: Flexfield: Key: Values
4. Define or enable currency
Setup: Financials: Currency: Define
5. Define period types
Setup: Financials: Calendar: Type
6. Define accounting calendar
Setup: Financials: Calendar: Accounting
7. Define transaction calendar
Setup: Financials: Calendar: Transaction
8. Define set of books
Setup: Financials: Books: Define
9. Attach set of books to profile
Other: Profile
10.Sign in again
11.Open the accounting period
Setup: Open/ Close
Post a Comment