Oracle General Ledger and Budgeting


What is planning budget ?

The plan for the future expenses is planning budget. It is a paper work. There is no funds requirement. It does not require journals. There are no restrictions for estimating of funds. It is a budget through which you cannot exercise budgetary control. But u can compare your actual with budgets through inquiry window.

What is Consolidation in GL?

It Consolidates the Subsidiaries & Parent financial information. At a point of time we can check the Performance of the Companies overall Performance. When we have multiple setup and combine primary and secondary books getting the financial reports is called consolidation We will use consolidation reports at the time of period end closing Consolidation is the Process of combining the Financial results of different companies typically combining subsidiary accounting information into a parent company.The main purpose of consolidation is for reporting purpose. Consolidation is the period-end process of combing the financials of separate subsidiary with the pay rent company to from single ,combine statement of final result consolidation is one of the reporting tool.consolidation may map the subsidiary set of books to parent set of books, even if the set of books values are different using segment rule,accounting rule It is the process of combining the financial results of multiple companies into one financial statement the company may have different sobs in different countries,so we will collect all the financialtransactions(sob) in to one set of book ,that is parent sob then the company easely findout all the finacial year endingresullts in their functional curency,that purpose multiple companies are using consolidation I think consolidation can be done with two ways that is FSG, GCSÂ for FSG it can be done when both parent SOB and Subsidary SOB have Currency, Calender, COA, same then we go for FSG.In Global consolidation System currency, coa, calender are different in parent sob and subsidary sob we have to go for GCS.I am Saikrishna actaully I am pursuing my oracle financials in hyd i just completed one of my module GL institute.

How to import data to General Ledger by Feeder System ?
There are three ways:

1- You can upload Journal Entries using ADI (Application Desktop Integrator) functionality. ADI is used to interface spreadsheet uploads with Oracle applications data. ADI allows users take advantage of many of the data-entry shortcuts of a spreadsheet, such as copying and pasting cells, dragging and dropping ranges of cells and using formulas to calculate journal line amounts. ADI validates the data entered against the accounts, security rules and reference information that are defined in the General Ledger (GL).

2- Using Journal Import, we can bring the data from the feeder system; to import the Transactions from External Feeder Systems following are the steps-1. Populate the data from External system to GL_Interface table (GL_INTERFACE table acts like a bridge between the external system and the Oracle General Ledger Base tables where journals are stored). 2. Run the Journal Import process to import the date to base tables (Errors in Journal Import are listed in Execution Report)

3. From any sub module run individual module transfer to GL program Ex: Payables transfer to General Ledger

After creating Journal Source how do we approve to the specific Set of Books ?

To approve journals from specific source, while creating the source ‘Require Journal Approval’ check box should be enabled. To approve all the journals that come from different sources In the Set Of Books window under ‘Journaling’ tab ‘journal approval’ should be enabled.

While creating combination of accounts what is the use of PRESERVED check box ?

If we check preserve for a account code combination then even if you disable this account segment value, the inherited (parent. child) segment values will not be disabled. If it is unchecked all the related segment values will be disabled. Preserved check box will help you to retain the original character of the General Ledger code combination, even after u change the nature of the segments during maintenance of the GLCC.

What is the MD form 50 ?

MD50 is a Functional design document, designed by the functional consultant. After interacting with the client, functional consultant will prepare this document. In this we will compare the present business process and client requirement. It is mainly used for Application Extensions and Interface functional design.

What are the journal entries in Procure to Pay Cycle ?

When the Material Received at the Gate-

Receiving Accrual A/C — DrMaterial AP Accrual A/C — Cr

When the Material delivered to The Inv Org Material

A/c Dr Purchase Price Variance A/c Dr Receiving A/c Cr

When the Invoice Is enterd into the Payable with Matching Of PO Material

Ap Accrual A/c Dr Invoice Price Variance A/c Dr AP Liability A/c Cr

Material Receipt

Receiving Accural Dr AP Accural Cr

On completion on inspection and accepting of goods

Inventory Dr Receiving Accural Cr The Above given 2 entries are in PO module

On entering Invoice in AP

AP Accural Dr Accounts Payable Cr

On Making payment

Accounts Payable Dr   Cash/Bank Cr 1. On Entry of PO ________ No accounting impact On Material

On Payment

Accounts Payable Dr’ Cash/Bank Cr

When we raise the Purchase Order entry

Material in transit a/c Dr To AP Accrual A/c

Thanks – Shivmohan

Mulitple Reporting Currency – MRC – In Oracle Applications


The Multiple Reporting Currencies (MRC) feature allows you to report and maintain accounting records at the transaction level, in more than one functional currency. You do this by defining one or more reporting sets of books, in addition to your primary set of books. In your reporting sets of books, you maintain records in a functional currency other than your primary functional currency. You can set up multiple reporting sets of books and associate them with a primary set of books.Your primary functional currency is the currency you use to record transactions and maintain your accounting data within Oracle Applications. The functional currency is generally the currency in which you transact most of your business and the one you use for legal reporting.

A reporting functional currency is a currency other than your primary functional currency for which you need to report accounting data. You must define a set of books for each of your reporting functional currencies.

When you enter transactions in Oracle Applications, they are converted, as needed, into your primary functional currency and each of your reporting functional currencies. You log into a reporting responsibility to inquire and report on transactions and account balances in your reporting functional currencies.
Oracle Applications Support for MRC

 

· Receivables
· Purchasing

· Payables

· General Ledger

The following Oracle Applications support Multiple Reporting Currencies:

· Cash Management
 
 

 

· Projects

 

 

 

 

 

* MRC is not intended as a replacement for General Ledger’s translation feature.

3) You operate in a country that is part of the European Monetary Union (EMU), and you want to concurrently report in Euro in preparation for the pan-European currency.

2) Your company is multinational, and you need to report financial information in a common functional currency other than that of the transaction or your primary functional currency.

1) You operate in a country whose unstable currency makes it unsuitable for managing your business. As a result, you need to manage your business in a more stable currency and still be able to report your transactions and account balances in the unstable local currency.

Typically, you should consider using MRC when:

 

In Oracle Applications you record day-to-day business transactions in your organization’s primary set of books or post transactions to the primary set of books from your subledgers. From the primary set of books, you can report your account balances in your primary functional currency. To use MRC, you must define additional sets of books, called reporting sets of books, and associate them with a primary set of books. When defining a reporting set of books, you specify your reporting functional currency as the set of book’s functional currency. This is the currency in which you want to inquire and report your transactions and account balances.

 

 

 

 

For example, assume your business is located in Canada. You use a primary set of books whose functional currency is Canadian Dollars (CAD), but you also need to inquire and report on your transactions and balances in U.S. Dollars (USD), since this is the functional currency of your parent organization. You define a reporting set of books with a functional currency of USD, then you associate this reporting set of books with your primary set of books. [The full range of General Ledger functionality is available from a reporting set of books. You can post journals, revalue and translate balances, perform consolidations, query account balances, submit standard General Ledger reports, and define custom financial reports.]
2- Transaction-Level Conversion:

 

 

 

 

When you enter transactions in Oracle Applications that support MRC, they are converted, as needed, into your primary functional currency and each of your reporting functional currencies, as follows:
Primary functional currency transactions: All transactions denominated in your primary functional currency are recorded in this currency. The transactions are also converted automatically to each of your reporting functional currencies.
Foreign currency transactions: Transactions denominated in a foreign currency are converted automatically to your primary set of books’ functional currency and to each of your reporting functional currencies.
3- Subledger Transactions:
 

When you enter transactions into the subledgers of Oracle Applications that support MRC, the transactions are converted to your reporting functional currencies at the time of original entry. The primary functional currency amounts and their associated reporting currency amounts are stored together in your subledgers. You must post subledger transactions to General Ledger in both the primary set of books and in each reporting set of books.

Since conversion occurs when the transactions are entered, your reporting currency amounts are always synchronized with your primary currency amounts.
4- General Ledger Journals
 
 
 

 

: Journal entries that originate in General Ledger, such as manual journals, recurring journals, and MassAllocations, as well as journals that you import from sources other than Oracle Applications’ subledgers, are converted to your reporting functional currencies when you post the journals in General Ledger in your primary set of books.

The converted journals are then copied from your primary set of books to each of the associated reporting sets of books. The converted journals must be posted separately in each reporting set of books.
The balances in your reporting sets of books will not be synchronized with the balances in the associated primary set of books until you:
– Post your subledger transactions to General Ledger from both your primary and associated reporting sets of books
– Post all journals in your primary set of books
– Post the converted journals in each of the associated reporting sets of books

 

 

 

 
 
 

 

 

Step Description
Step 1 ­ Enable or define primary set of books :Set of Books window(General Ledger)

When to Use MRC:

MRC Features
1- Reporting Sets of Books:
Inquiry and Reporting in Multiple Currencies

Oracle Subledgers: When you enter transactions into the subledgers of Oracle Applications that support MRC, the transactions are converted to your reporting functional currencies at the time of original entry. As a result, your reporting currency information is immediately available for inquiry and reporting in the subledgers. Each inquiry or report that normally displays information in the primary functional currency can also be displayed in any of the associated reporting currencies. To do so, you log into a reporting responsibility, then view and report transactions in the reporting currencies associated with that responsibility. You must post subledger transactions to General Ledger in both the primary set of books and in each reporting set of books. After you have posted the transactions, you can log into a General Ledger reporting responsibility, post the newly created journals, then report on the journals and the account balances of the associated reporting set of books.

Oracle General Ledger: For General Ledger journals, you must complete the posting process in both your primary set of books and each associated reporting set of books before you can report on the updated balances. Note that separate balances are updated for each set of books.Before you can report on your updated balances, you must also post your subledger transactions to General Ledger from both your primary and associated reporting sets of books, and post the newly created journals in both your primary and associated reporting sets of books. Each General Ledger report or inquiry that normally displays information in the primary functional currency can also be displayed in any of the associated reporting currencies. To inquire or report on the account balances of a reporting set of books, you log into the associated General Ledger reporting responsibility. When you inquire on account balances in a reporting set of books, you can drill down to the subledger details (in your reporting functional currency) using General Ledger’s standard drilldown features.

For reconciliation purposes, you can use the Financial Statement Generator (FSG) to create a custom comparison report that lists balances from your primary and reporting sets of books in separate columns. Use this report as the basis for reconciling your primary and reporting sets of books.
Euro Support: MRC allows Oracle Applications to support organizations that are transitioning from their national currency to the Euro:

Transition Period: If you currently use Oracle Applications, you can continue to maintain your current set of books in your national currency and use MRC to begin reporting transactions and financial results in the Euro. If you are implementing Oracle Applications for the first time, you can set up your primary set of books using Euro as the functional currency and use MRC to report transactions and financial results in your national currency.

Currency Conversion: MRC observes the fixed-rate relationships you defined between the Euro and EMU currencies, as well as the effective starting dates of those relationships, when converting transaction amounts to or from the Euro or EMU currencies. When converting amounts from your primary functional currency to your reporting functional currencies, MRC fully complies with the conversion guidelines established by the European Commission.
Setting Up MRC The following provides a summary of the steps you must follow to set up MRC in your applications. These steps are described in more detail in the next section. Note: You must install MRC before you can begin the setup steps in this section. See: Oracle Applications Installation Manual for information about installing MRC.

Step 2 ­ Enable and/or define reporting currencies :Currencies window(General Ledger)

Step 3 ­ Define reporting sets of books :Set of Books window(General Ledger)

Step 4 ­ Assign reporting sets of books to primary set of books: Assign Reporting Sets of Books window(General Ledger)

Step 5 ­ Define conversion options for each application: Conversion Options window(General Ledger)

Step 6 ­ Define General Ledger conversion rules: GL Conversion Rules window(General Ledger)

Step 7 ­ Define reporting responsibilities : Responsibilities window(System Administrator)

Step 8 ­ Assign reporting sets of books to reporting responsibilities : System Profile Values window (System Administrator)Daily rates are used to convert your primary set of book’s transactions to the appropriate reporting currencies. If you do not currently maintain daily rates, you must do so when you implement MRC.

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· Assets