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ERP ERP Oracle General Ledger Oracle iampcl@yahoo.com 2003/09/30

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ERP ERP 2/61 Class Schedule Day 1 (9/30) Overview Set of books Journals Day2 (10/7) Budgeting Advanced account structure Reporting tools Accounting for foreign and multiple currencies

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ERP ERP 3/61 Agenda Overview Set of books Journals

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ERP ERP 4/61 Inventory Oracle ERP Overview SO MPS RCCP MRP PR PO Receiving Discrete Repetitive Flow Project Process Issue SFC Transfer Picking Shipping CRP Invoice Payment Costing MDS Assets APS FCST Receipts Invoice

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ERP ERP 5/61 (Accounting) (Economic Events) (Decision) , , , vs.

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ERP ERP 6/61 / , , ,

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ERP ERP 7/61 [ ] [ ] / [ ] / [ / ]

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ERP ERP 8/61 , , , ,

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ERP ERP 9/61

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ERP ERP 10/61 1 100,000 100,000 100,000

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ERP ERP 11/61 2 30,000 70,000 30,000 100,000

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ERP ERP 12/61 3 20,000 50,000 20,000 30,000 100,000

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ERP ERP 13/61 (Account) , (account), 50,000 20,000 30,000 100,000

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ERP ERP 14/61 = = + = + + Asset (A) = Liability (L) + Owners Equity + Revenue (R) Expense (E) Income Statements Statement of Changes in OE Balance Sheet

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ERP ERP 15/61 (Debit, Dr.) = (Credit, Cr.) ( ) = + ( ) / ( ) / ( )

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ERP ERP 16/61 (Chart of Account) ------------ --------------------- ------------ 1101 1102 1401 2101 3101 ------------ --------------------- ------------ 1101 1102 1401 2101 3101

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ERP ERP 17/61 (Journal) , 20000 :910002 :91.01.02 ------------ ------------ ------------------ ------------ ------------ 1401 20,000 1101 20,000 :910002 :91.01.02 ------------ ------------ ------------------ ------------ ------------ 1401 20,000 1101 20,000 Journal entry

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ERP ERP 18/61 - ------------ ------------ ------------ ------------ ------------------ ------------ ------------ 9200001 92.01.01 1101 100,000 9200001 92.01.01 3101 100,000 9200002 92.01.02 1401 20,000 9200002 92.01.02 1101 20,000 9200003 92.01.03 1102 50,000 9200003 92.01.03 1101 50,000 ------------ ------------ ------------ ------------ ------------------ ------------ ------------ 9200001 92.01.01 1101 100,000 9200001 92.01.01 3101 100,000 9200002 92.01.02 1401 20,000 9200002 92.01.02 1101 20,000 9200003 92.01.03 1102 50,000 9200003 92.01.03 1101 50,000

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ERP ERP 19/61 (Post)- (Ledger) 1101 ------------ ------------ ------------------- ----------- ------------ -------------- 9200001 92.01.01 100,000 100,000 9200002 92.01.02 20,000 80,000 9200003 92.01.03 50,000 30,000 ====== ======= 100,000 70,000 1101 ------------ ------------ ------------------- ----------- ------------ -------------- 9200001 92.01.01 100,000 100,000 9200002 92.01.02 20,000 80,000 9200003 92.01.03 50,000 30,000 ====== ======= 100,000 70,000

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ERP ERP 20/61 ----------- ------------ ------------------------

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ERP ERP 21/61 $ 20,000 :910002 :91.01.02 ------------ ------------ ------------------ ------------ ------------ 1401 20,000 1101 20,000 :910002 :91.01.02 ------------ ------------ ------------------ ------------ ------------ 1401 20,000 1101 20,000 1101 ------------ ------------ ------------------- ----------- ------------ -------------- 9200001 92.01.01 100,000 100,000 9200002 92.01.02 20,000 80,000 9200003 92.01.03 50,000 30,000 ====== ======= 100,000 70,000 1101 ------------ ------------ ------------------- ----------- ------------ -------------- 9200001 92.01.01 100,000 100,000 9200002 92.01.02 20,000 80,000 9200003 92.01.03 50,000 30,000 ====== ======= 100,000 70,000

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ERP ERP 22/61 1000 XXX 1100 XXX 1101 XXX 1102 XXX 1000 XXX 1100 XXX 1101 XXX 1102 XXX XXX (XXX) : XXX (XXX) : ------------------------------ XXX | XXX | | X ------------------------------ XXX | XXX | | X XXX XXX : XXX XXX :

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ERP ERP 23/61

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ERP ERP 24/61 The General Ledger Accounting Cycle Functional Balances Revalue (JE: Functional Currency) Foreign Balances Convert Translate Start (JE: Functional/Foreign Currency) Review Account Balances Create Journal Entries Open Period Review Journal Details Run Reports Close Period Correct Errors Calendar Post Journals

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ERP ERP 25/61 Using Oracle General Ledger Analyze Manipulate Record Review Oracle General Ledger

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ERP ERP 26/61 Integrating with Subledgers Manufacturing subledgers Financial subledgers Oracle General Ledger Exporting Information to GL Payables : Payments and invoices Receivables : Debit/Credit memos, invoices, receipts, guarantees Assets : Deferred and standard depreciation expense transactions Projects : Labor cost, usage cost, revenue information Purchasing : Accrued receipts Cost Management/Inventory : Inventory and work in process transactions

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ERP ERP 27/61 Agenda Overview Set of books Journals

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ERP ERP 28/61 3 Elements for a Set of Books Chart of Accounts Accounting Calendar Currencies

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ERP ERP 29/61 Components of 3 Elements Value sets Account Structure: Segment values Period types Accounting Calendar: Currencies Periods Security rules Cross-validation rules

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ERP ERP 01 22 - 1102221 - 100- A001 Account Structure xx - xx - xxxxxxx - xxx - xxxx : : xx - xxx - xxxx - xxxx - xxx - xxx Accounting Flexfield Segment 1 Segment 2 Value Value Set Accounting Flexfield

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ERP ERP 31/61 Format: Char Maximum size: 4 Validation: Independent Format: Number Maximum size: 3 Validation: Independent Format: Char Maximum size: 2 Validation: Independent Defining Value Sets & Segment Values Value_Set 1 Value_Set 2Value_Set 3 100101100010010102 Values

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ERP ERP 32/61 Accounting Flexfield Application Accounting Flexfield Segment Value Value Set Defining Chart of Account Value

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ERP ERP 33/61 Accounting Flexfield

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ERP ERP 34/61 Segments

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ERP ERP 35/61

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ERP ERP 36/61 Value Sets

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ERP ERP 37/61 Values

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ERP ERP 38/61 Accounting Flexfield segment (Values) Value Set Segment (Alias)

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ERP ERP 39/61 Using Dynamic Insertion Dynamically create new account combinations. Dynamic insertion can be enabled or disabled at any time. All new combinations must satisfy all defined cross-validation rules before they are accepted.

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ERP ERP 40/61 Defining Flexfield Security Rules Restrict data entry and online inquiry to specific values by using flexfield security rules. #s 0000 to 9999 #s 1000 to 3999 Account Segment Account Segment Include: Exclude:

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ERP ERP 41/61 Defining Cross-Validation Rules Prohibit creation of invalid account combinations using cross-validation rules. Use cross-validation rules in combination with dynamic insertion. Define cross-validation rules before entering a chart of accounts.

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ERP ERP 42/61 Accounting Calendar Create a calendar to define an accounting year and the periods that it contains. Periods( ) Period Type Calendar( ) Fiscal( ) Period Open/Close

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ERP ERP 43/61

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ERP ERP 44/61 Currencies Create New Currencies Predefined Daily Conversion Rate Type Spot Corporate User European Monetary Union (EMU) Fixed Custom Rate Type

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ERP ERP 45/61

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ERP ERP 46/61 Creating a Set of Books You must create at least one set of books before you can use Oracle General Ledger. Required steps include: Defining Accounting Flexfields Value sets Segments Segment values Defining calendar periods and calendar period types Defining currencies Defining your set of books and assigning it to a responsibility

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ERP ERP 47/61

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ERP ERP 48/61 Responsibility Definition Responsibility A collection of authorizations. user Oracle application responsibility Windows Reports

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ERP ERP 49/61 Responsibility

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ERP ERP 50/61 Agenda Overview Set of books Journals

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ERP ERP 51/61 Journal Entry Types Basic Journal Entry Reversing Journal Entry Recurring Entries MassAllocations

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ERP ERP 52/61 Journal Creation Methods Manual Entry Reversals Reversals Recurring Recurring MassAllocations MassAllocations Journal Import Journal Wizard

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ERP ERP 53/61 Journal Journal Batch Journal Header Journal Entry Line

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ERP ERP 54/61 Posting Journals Update balances by posting journals Manual Post Auto Post Criteria Set Schedule Un-post Journal Control total violations Posting to unopened periods Unbalanced journal entries Post journal Enter journal Prepost $500 Journal 25 After post $525 Account Balance

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ERP ERP 55/61 Reviewing and Correcting Balances End Enter and post journals Enter and post journals Review balances No Yes Are the account balances correct?

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ERP ERP 56/61 Creating Reversing Journals Generate a reversal of any journal entry Dr. Rent Expense.10,000 functional dollars Cr.Cash.10,000 functional dollars Dr. Rent Expense.10,000 functional dollars Cr.Cash.10,000 functional dollars Create Reversal Dr. Cash....10,000 functional dollars Cr. Rent Expense...10,000 functional dollars Dr. Cash....10,000 functional dollars Cr. Rent Expense...10,000 functional dollars

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ERP ERP 57/61 Recurring Journals There are three major types of recurring journals. Skeleton (Setup Account, No Amount) Standard (Setup Account, Constant Amount) Formula (Setup Account, Variable Amount) Dr.Temporary Labor Cr.Salaries Payable.. Dr.Auto Lease Expense.... Cr.Accounts Payable.. Dr.Rent Expense.... Cr.Rent Payable..

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ERP ERP 58/61 MassAllocations: Overview A single journal entry formula that allocates revenues and expenses across a group of cost centers, departments, divisions, and so on. Chicago rent Total rent Paris rent Tokyo rent 1/3

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ERP ERP 59/61 Defining MassAllocation Journals: Exmple Dr. Total rent expense 10,000 dollars Cr. Rent Payable 10,000 dollars In Nov. 1998, the organization spends 10,000 dollars for rent The organization want to allocate to 3 departments: Human Resources 45% of total floor space Research 30% of total floor space Finance 25% of total floor space Dr. Human Resources rent4,500 dollars Dr. Research rent ..3,000 dollars Dr. Finance rent .....2,500 dollars Cr. Total rent expense 10,000 dollars The rent expense is redistributed using the following journal entry:

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ERP ERP Session Summary

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ERP ERP 61/61 Session Summary General Ledger concept and process Creating a set of books by defining a chart of accounts, accounting calendar, and currencies Entering and posting journals