General Ledger

Prepared by
TEJESHWAR KUMAR.V.

Overview
Central Repository of all Accounting

Information

Other Subledgers

Review
Edit

General Ledger
Record

Analyze, Correct,
and Adjust

Integration of GL with other Modules

Inventory

Purchasing

Receivables

General Ledger

Payroll

Payables

Assets

Integration of GL with other

Modules Contd.
Purchasing: Accrual of receipts not invoiced

Payables: Invoices, payments, realized gain and loss,

invoice price variance
Assets: Capital asset additions, cost adjustments, transfers,
retirements, depreciation, reclassifications, also
construction in process
Inventory: Inventory, cost of goods sold (COGS), cycle count
and physical inventory adjustments, receiving transactions,
delivery transactions, intercompany transfers, sales order
issues, internal requisitions, subinventory transfers

Integration of GL with other

Modules Contd.

Receivables: Invoices, receipts, adjustments, debit memos,

credit memos, cash, chargebacks, realized gain and loss
Payroll: Salary, deductions and taxes

Ledger Components
Chart of Accounts
Calendar
Currency
Accounting Method

Secondary Ledger/Reporting Currencies

If one or more of the following are different:

If difference is
only currency,

US GAAP
Accrual
Corporate
Chart of
Accounts

Monthly
Calendar

Secondary Ledger

Accounting
Method

Currency

Reporting
Currencies

Ledger Definition

Values for Account

Segment

Values for Account Segment

Contd.

Accounting Calendar
Definition

Currency Definition

Ledger Components

Defining Cross-Validation Rules

Prevent the creation of invalid account combinations by
setting up cross-validation rules.

Define cross-validation rules before entering a chart of

accounts

Division:
01 US
02 Asia

Region:
100 New York
400 Tokyo

Account:
4100 Sales
7550 Travel

Valid

01 100 4100

Invalid

01 400 4100

Cross-Validation Rule

Journal Entry Types

Manual Functional Currency, Foreign Currency,
STAT, Inter-Company

Manual
Journal
Entry

Fund Check
and
Reservation

Reversing
Journal
Entry

Recurring
Entries
Mass
Allocations

Journal Entry Types

Contd.

Manual Journal Entries: Used for most accounting

transactions. Examples - Adjustments.
Reversing Journal Entries: Created by reversing an existing
journal entry. Reversals can be posted to a current or any
future open accounting period.

Switch Debit/Credit
Change Sign

Recurring Journal Entries: Defined in templates and then

generated when required. Examples include bad debt
expense and periodic accruals.

Journal Entry Types

Contd.

Mass Allocation: Journal entries that utilize a single journal

entry formula to allocate balances across a group of cost
centers or divisions. Examples include rent expense
allocated by headcount or administrative costs allocated by
machine labor hours.

Journal Record

Recurring Journal

Mass Allocation Journals

Using Journal Entry Sources and Categories

Journal entry sources and categories can be used to

differentiate journal entries and to enhance your audit trail

Pre-defined/User-defined
Source Origin of JV (Import References, Approval).
Category Recognize the event being accounted

Sources

Categories

Assets
Purchasing
Projects
AX Receivables
Manual
Budget Journal
Payroll

Accrual
Adjustment
Credit Memos
Headcount
Receipts
Revaluation

Journal Source Definition

Journal Category
Definition

Journal Components &

Posting

Every journal entry in Oracle General Ledger has three

components:

Enter Journals

Batch

Header

Lines

Journal Post Batch, Manual, Schedule AutoPost

Posting to a Prior Period

July
Open
Current period

June
Open

May
Closed

Prior period Current Accounting Year, Previous Accounting

Year

Overview of AutoPost
Define criteria

Schedule

Submit

Review report

AutoPost Criteria Set/AutoReverse

Parameters

Value

Days before current date 0 to 1000

Days after current date

0 to 999

Priority number

1 to 99

Source

Specify or All

Category

Specify or All

Balance Type

Specify or All

Period

Specify or All

AutoReverse Set at Journal Category

GL: Launch AutoReverse After Open Period

Journal Reversal Criteria

AutoPost Criteria

Drilling Down to Subledger Details

GL Account Inquiry
Balance
JE Lines

Enter JE

View JE

View Subledger Accounting Entry

AP

AR
PO

Inventory
Assets

View Subledger Transactions

View Accounting Lines
T Accounts

Summary Activity

Data Access Set

Security feature that enables you to grant and

secure access to ledgers, or portions of a

ledger, or by a ledgers balancing segment
value
Access Privilege can be Read Only or
Read/Write
Data Access assigned at a Responsibility Level

Full Ledger Data Access

Balancing Segment Data

Access

Data Access Set

Assignment

Generator
Financial Statement Generator (FSG) is a powerful and
flexible report building tool you can use to build your own
custom financial reports without programming

Row

Column
Report

Steps for FSG Financial Reports

Use a four-step process to create and run customized
financial reports

1. Define row sets.

2. Define column sets.
3. Define financial reports and report sets.
4. Submit financial reports and report sets.

Defining Row Sets

Format and content of rows in financial reports

Row Set A

Income Statement
Company 1
PTD YTD
Sales
3,000
6,200
Returns
1,000
1,000
Net Sales
2,000
5,200

Balance Sheet
Company 1

Row Set B

Cash
Investments
Receivables

THIS YR
100
600
980

LAST YR
200
400
700

Assigning Accounts
The sign and range of accounts for each row in your row
set, should be selected

Account Assignment
Sign
Low
High
Display
+
01-110-1100-000
T-T-T-T
Report Output includes one line:
TOTAL

01-110-1500-000

5,000

Defining Column Sets

Format and content of columns in financial reports

Income Statement
Company 1

Column Set A

Sales
Returns
Net Sales

PTD YTD
3,000
6,200
1,000
1,000
2,000
5,200

Balance Sheet
Company 1

Column Set B
Cash
Investments
Receivables

THIS
THISYR
YR LAST
LASTYR
YR
100
200
100
200
600
400
600
400
980
700
980
700

Defining and Requesting Financial Reports

Mix and match row sets and column sets to create a
variety of reports
Income Statement
Company 1

Row Set A

Sales
Returns
Net Sales

THIS
THISYR
YR
1000
1000
60
60
940
940

LAST
LASTYR
YR
900
900
50
50
850
850

Column
Set B

Balance Sheet
Company 1

Row Set B

Cash
Investments
Receivables

PTD YTD
3,000
6,200
1,000
1,000
2,000
5,200

Column
Set A

Row Set

Row Definition

Column Set

Column Definition

Building Column Set

Building Reports

Concepts
There are three key concepts in Oracle General Ledger
that pertain to foreign currency:

Conversion

Revaluation

Translation

Foreign Currency Concepts Contd.

Conversion - Refers to foreign currency transactions that

are immediately converted at the time of entry to the
functional currency of the ledger in which the transaction
takes place
Revaluation - Adjusting asset or liability accounts that may
be materially understated or overstated at the end of a
period due to a significant fluctuation in the exchange rate
between the time the transaction was entered and the end
of the period.
Translation - Restating an entire ledger or balances for a
company from the functional currency to a foreign currency.

Conversion Example
Entered Journal Entry Lines

DR. Accounts Receivable.10,000 Euro

CR.

Revenue10,000 Euro
Foreign currency

CONVERT 1 Euro = .8 US Dollars

DR. Accounts Receivable. 8,000 US$
CR.

Revenue... 8,000 US$

Functional currency

Conversion Process
Daily Rates are used for conversion
Rated Entered directly in Journal
Rates derived from Rate Table

Rate Derivation from

Rate Table

Using Cross Rate Rules

The following currency rates have been defined:
Currency
From

To

Conversion
Date

Type

USD

EUR

30-Sep-03 Spot

.900252

USD

JPY

30-Sep-03 Spot

116.81

1.1108000871
.0085609109

Currency Rates Manager will calculate the

cross rate between EUR and JPY and its
inverse
From To
Date
Type
EUR
JPY JPY
EUR

JPY

30-Sep-03 Spot

129.753

EUR

.0077069509

Revaluation Process
Foreign
currencies

Functional currency
Conversion at the time of the
foreign currency transaction

Foreign
currencies

Functional currency
Revaluation at the end
of the accounting period

Revaluation Example
Entered Journal Entry Lines
DR. Accounts Receivable.10,000 Euro
CR.

Revenue10,000 Euro

Convert 1 Euro = .8 US Dollars

DR. Accounts Receivable. 8,000 US$
CR.
Revenue... 8,000 US$

REVALUE 1 Euro = .81 US Dollars

DR. Accounts Receivable. 100 US$
CR.
Unrealized Gain.. 100 US$

Revaluation form

Translation Overview
Foreign currency translation is a process that lets you
restate your functional currency account balances into a
reporting currency
Functional currency

Foreign currency

Functional
Balance
Sheet
Assets
Liabilities
100,000
60,000 Period end
Rate = 0.75
Owner's Equity
Period end
40,000
Rate = 0.75
Foreign
Balance
Sheet
Assets
Liabilities
75,000 45,000

Historical
Rate = 0.70
Owner's Equity
28,000

Translation Screen

Consolidations
Consolidate any number of subsidiaries that use different
ledgers, even those with different charts of accounts,
currencies, and calendars
Subsidiary 1

Subsidiary 2

Subsidiary 3

Run Consolidation
Parent

Consolidation Screen

Consolidating Multiple Companies with

Multiple Ledgers
Parent
company

Structure:
Calendar:
Currency:

Map COA
and
Consolidat
e
Subsidiary 1

Subsidiary 2

Co-CC-Acct
Quarterly
USD

Co-Acct-Prd
Monthly
Euro

Co - CC - Acct - Prd
Monthly
USD

Subsidiary 3
Co-Acct-CC-Prd
Weekly
AUD

Mapping Rules
You can define segment rules, account rules or a
combination of both
If you use segment rules you must define a segment
rule action for each segment in the parent's chart of
accounts
Account rules override segment rules, if there is a
conflict. Suggestion:
Use segment rules to define the default mapping
Use account rules to define exceptions

COA Mapping

Entries

Company A

Company B

Intercompany Eliminations Program

Define Elimination Set

Source
Account
from
Subsidiary

Target Account
in Parent or
Elimination
Company

Run Elimination

Source
Account
from
Subsidiary

Target
Account in
Parent or
Elimination
Company

Elimination Set Definition

Anatomy of a BudgetOverview
A budget consists of periods, accounts, and
amounts.

Name: FY96PLAN
Jan-1994 to Dec-1994

Periods
Accounts

CC100
CC200

..
..

$3000
$1500

Amounts

Cycle
Step
Step 1:
1: Define
Define budgets
budgets and
and budget
budget organizations.
organizations.
Step
Step 2:
2: Enter
Enter budget
budget amounts.
amounts.
Step
Step 3:
3: Review
Review and
and correct
correct budgets.
budgets.
Step
Step 4:
4: Freeze
Freeze budgets.
budgets.
Step
Step 5:
5: Report
Report on
on budgets.
budgets.

Creating a Budget
Amounts are entered
into a combination
of:
Budget ->
Periods
01

200

5800

01

Organization
-> Accounts

200
01

6300
200

7340

Budget Definition

Budget Organization
Definition

Account Assignment/Budgetary
Control

Budget Allocation

Budget Hierarchies
You can use the following methods to structure
budgets:
Top-down budgeting
Bottom-up budgeting

Period Close Checklist

Transfer and import data from all subledgers
Perform reconciliation of subsidiary ledgers
Close the period for each subledger
Revalue foreign currency balances
Verify all journals are posted
Translate balances to parent's currency
Consolidate subsidiary ledgers
Run Trial Balance and other reports
Close the period and open the next period

End of Presentation