interviw quetion answer

Below is a list of 25 Important questions that is asked in almost every financials technical interview question. I have also included some of the functional questions that are asked.Answers are included.

Qns: What is Flex field? What are different types of Flex field?

Ans: Flex field is used to capture information of your Organisations.

Qns: Difference between KFF and DFF.

KFF

Unique identifier

Stored in segment Column

DFF

Is used to capture additional information

Stored in attribute Column

Qns: How many KFF are in GL. AP , AR.

Ans:

Module KFF

GL Accounting FF

AP No KFF

AR Sales tax Location FF

Territory Flexfield.

Qns: What is symbol of DFF in the Forms?

Ans: Square Bracket [ ].

Qns: What is structure of KFF in the Accounting Flexfields.

Ans: Company

Cost center

Account

Product

Future use.

Qns: How many segments are in AFF.

Ans: max 30 segments and min two.

Qns: What are flexfield Qualifiers.

Ans: Flexfield Qualifiers is used to identify the segments. Various types of flexfield qualifiers are listed below:

a) Balancing Segment Qualifier.

b) Cost Center segment Qualifier.

c) Natural Account Segment Qualifier.

d) Intercompany Segment Qualifier.

Qns: What is Dynamic Insertions?

Ans: u can create Code Combinations at run time.

Qns: In which table Code Cominations id is stored.

Ans: GL_CODE_COMBINATIONS.

Qns: In which table flex values are stored.

Ans: 1. fnd_ flex_Values

2. fnd_ flex_Values_tl

Qns: What is set of Books and in which table set of book is stored.

Ans : Set of Books is a Financial Reporting entity which Consist of three C.

a) Chart Of Accounts

b) Currency

c) Calendar.

Set of Books is stored in GL_SETS_OF_BOOKS

Qns: In which table Currency and Period Type Name are stored.

Currency – FND_CURRENCIES

Period – GL_PERIOD_STATUSES

Qns: In which table Segment Values are stored and concatenated values are stored.

Ans: 1. GL_CODE_COMBINATIONS

2. GL_CODE_COMBINATIONS_KFV.

Qns: What are different types of Currency.

Ans: Functional Currency

Foreign currency.

Qns: What are different types of Calendars .

Ans: Different types of Calendars are listed below

a) Fiscal

b) Accounting

Qns: How will you attach set of Books to the Responsibility?

Ans: through Profile. GL SETS OF Books Name.

Qns: What is Profile and what are different types of Profiles.

Ans: Profile: Profile is the changeable option that affects the way your application runs. There are two types of profile.

1. System defined

2. User defined

Qns: What are different Profiles Level available in oracle apps.

Ans: Below are the Profiles Level available in oracle apps

1. Site(Lowest level)

2. Application

3. Responsibility

4. User.

Qns: Write Name of some Profile options.

Ans:

1. GL Sets of Books Name

2. GL sets of Books id

3. MO:Operating unit (multi org).

4. HR:User type.

Qns: What is cycle of GL.?

Ans: In simple and layman words-

1. Open the period

2. Create Journal Enteries

3. Post the Journals.

Qns: In Which tables Journal entries created.

Ans: Important tables are-

1. Batch: GL_JE_BATCHES

2. Header: GL_JE_HEADERS

3. Lines : GL_JE_LINES

Qns: After Posting data goes in which tables.

Ans: GL_BALANCES.( Column Period_net_cr, period_net_dr).

Qns: What are Important tables in GL.

Ans:

1. GL_JE_BATCHES

2. GL_JE_HEADERS

3. GL_JE_LINES

4. GL_BALANCES

5. GL_SETS_OF_BOOKS

6. GL_CODE_COMBINATIONS

7. GL_PERIOD_STATUES

8. GL_INTERFACE

Qns: In which table Supplier information’s is stored.

Ans: Supplier information can be found in following tables

1. PO_VENDORS

2. PO_VENDOR_SITES_ALL

3. PO_VENDOR_CONTACTS

Qns: What is difference org_id and Organization_id.

Ans: Org_id is for operating unit and organization_id is for inventory organization.

Mahmoud Maher on January 1, 2011

Goal1. You have defined Sequencing- reporting for both subledger and GL journal entry - event GL periodclose.

After closing the period in GL, the ‘Create Reporting Sequence Number’ program is automatically launched and completed normally but when checking the reporting sequence number for Subledger journals and GL journal entries – only the reporting sequence numbers for GL journal entries are shown and no reporting sequences for Subledger journals are available.

How to view the reporting sequence created and assigned to subledger journals?

SolutionThis is the intended functionality.For subledger journals you can see the reporting sequence in SLA level not in GL. For subledger journals GL can’t transfer the reporting sequence. Only manual journals which are created in GL will get the reporting sequence. For subledger journals you can see the reporting sequence in SLA level only .If however a subledger journal is reversed user will not get a reporting sequence because the reversals do not populate the xla_seq_je_headers_gt table that gets the sequence

In order to see the reporting sequences for subledger journals in SLA:

- Log in with your SLA responsibility;

- Check your setup according to ‘Oracle Subledger Accounting Implementation Guide Release 12′ – Chapter 7 ‘Reporting Sequence’- page 7-4 ‘Reporting Sequence Process Steps’ and following.

- Navigate to Subledger Journal Entries > Lines > make your query and see the transactions retrieved.

- In the ‘Transaction information’ area note the ‘ + Show additional information’ : unhide the information ; at this step you can see your accounting and reporting sequences numbers.

Note: In order to have the assigned reporting sequences used you have to:

- Check the ‘journal entry status’ of ‘Final’; draft entries are not assigned a reporting sequence;

- Check that the transactions are posted in GL;

- Check that the GL period has been closed and the automatically launched process ‘Create Reporting Sequence Number’ has completed normally;

- At the time you check your SLA reporting sequences numbers the period in GL has not been re-opened (the program erases the sequences that are assigned to the journal entries that belong to the reopened period).

Posted in General Ledger, Oracle E-Business Applications, Oracle Financial, Subledger Accounting | Leave a Comment »

R12 What are the Differences Between Accounting Sequencing and Reporting Sequencing? Posted by Mahmoud Maher on January 1, 2011

The accounting sequence is assigned to Subledger Accounting journal entries at the time that the journal entry is completed. The sequence is assigned in the completion date order using the GL date as the date criterion for determining the sequence to be used.

The reporting sequence is assigned to both Subledger Accounting journal entries and General Ledger journal entries when the General Ledger period is closed. This sequence is used by most of the legal reports required in some countries as the main sorting criterion to display the journal entries.Reporting sequence is optional.

These two sequences are not mutually exclusive and can coexist in the same journal entry.

Note: for more details-Oracle� Financials Implementation Guide (Part No. B16386-01) contains aseparate chapter on Accounting and Reporting Sequencing;-Oracle� Subledger Accounting Implementation Guide chapter on Reporting Sequencing;

Setup:

1 Go to Setup > Financials > Sequences >.Assign2.Select your General Ledger3.Select Sequence Entity : ‘Subledger Journal Entry’4.Select Sequence Event : ‘GL Period Close’: for fiscal reporting during accounting period close./‘Accounting’: for fiscal accounting of journal entries originating in the subledgers.5 .Select Sequence Entity : ‘GL Journal Entry’6. Select Sequence Event: ‘GL Period Close’: for fiscal reporting during accounting period close./‘Posting’ : for fiscal accounting of journal entries originating in the general ledger.


A Case Study on R12 SLA Posted by Mahmoud Maher on October 7, 2010

A Case Study on R12 SLA

Download

Posted in Oracle E-Business Applications, Oracle Financial, Subledger Accounting | Leave a Comment »

Account Generator in Oracle Assets Posted by Mahmoud Maher on September 14, 2010

Oracle Assets uses the Account Generator to generate accounting flexfield combinations for journal entries. The Account Generator allows you to designate a specific source for each segment in the account for which Oracle Assets creates a journal entry. The Account Generator gives you the flexibility to create journal entries according to your requirements. You can specify to what detail to create journal entries, and you can specify the detail level for each book and account type.

For example, when creating journal entries for asset cost, you can specify that the cost center segment comes from the depreciation expense account of the distribution line you entered for the asset in the Assignments window. Or, you can specify that the cost center comes from the default value you defined for the depreciation book.

Oracle Assets provides two seeded Account Generator processes.

Generate Default Account process Generate Distribution Detail Account process

The Generate Default Account process creates journal entries without cost center level detail, except for depreciation expense. Using the default assignments, it creates journal entries using the balancing segment from the distribution line in the Assignments window and the natural account segment from the asset category or book, depending on the account type. The Account Generator gets the other segments from the default segment values you entered for the book. You can modify the default Account Generator processes so that Oracle Assets creates journal entries to a different detail level.

The Generate Distribution Detail Account process creates journal entries with cost center level detail. It creates journal entries using the distribution expense account for all segment values, except the natural account segment. The natural account segment is created from the asset category or book, depending on the account type. You can modify the default Account Generator processes so that Oracle Assets creates journal entries to a different detail level.

Posted in Asset, General Ledger, Oracle E-Business Applications, Oracle Financial, Subledger Accounting | Leave a Comment »

Oracle General Ledger Integration Posted by Mahmoud Maher on September 1, 2010

Oracle General Ledger is one of the core product of EBS suite, and this is Integrated with almost every segment within EBS.Here is a list of just some of the Financial ,manufacturing and Human Resource Management products that integrate with General Ledger. Typically the integration of General ledger in EBS can be best understood as:

Oracle Financial

Oracle Payables sends invoices, payments, realized gain and loss on foreign currency, and invoice price variance to GL.

Oracle Receivables sends invoices, payments, adjustments, debit memos, credit memos, cash, chargebacks, and realized gain and loss on foreign currency to GL.

Oracle Assets sends capital and construction in process asset additions, cost adjustments, transfers, retirements, depreciation, and reclassifications to GL.

Oracle Purchasing sends accruals or receipts not invoiced, purchase orders, final closes, and cancellations to GL.

Oracle Projects sends cost distribution of labor and non-labor costs, and project revenue to GL.

Oracle Treasury sends revaluation and accrual entries to GL. Oracle Property Manager sends revenues and expenses related to real estate to GL. Oracle Lease Management sends accounting distributions related to leases, such as

bookings of contracts, accruals, asset dispositions, terminations, and adjustments for multi-GAAP contracts to GL.

Oracle HRMS and Payroll

Oracle HR shares employee information with GL. Oracle Payroll sends salary, deductions, and tax information to GL.

Oracle Manufacturing:

In terms of manufacturing this is Integrated as:

Oracle Inventory sends cycle counts, physical inventory adjustments, receiving transactions, delivery transactions, intercompany transfers, sales order issues, internal requisitions, sub-inventory transfers, and Cost of Goods Sold (COGS) to GL.

Work In Process(WIP) sends material issues or backflush from WIP to GL, along with completions, returns, resource and overhead transactions, and cost updates.

Oracle Labor Distribution normally sends salary costs to GL.

Posted in General Ledger, Oracle E-Business Applications, Subledger Accounting | Leave a Comment »

Part III : Impact of SLA on Journal Import in General Ledger – Setups related to Journal Import Posted by Mahmoud Maher on August 31, 2010

Part III : Impact of SLA on Journal Import in General Ledger – Setups related to Journal Import

1. Journal Import can be run in Summary or Detail mode. This can be set for each application, as per the requirement. By default this is set to “Summarize by GL Period”, but can be changed as per the requirement. The setup can be changed from:• General Ledger responsibility• Financials -> Accounting Setup Manager -> Accounting Setups• Query for the Ledger being used• Update Accounting Options• Select update for “Subledger Accounting Options”• “Update Accounting Options” for the Application• Here there is an option “General Ledger Journal Entry Summarization”, which can be set to following values:i. Summarize by GL Date (Journal Import will create summary journals based on Acccounting Date)ii. No Summarization (Journal Import will create journals in Detail mode)iii. Summarize by GL Period (Journal Import will create summary journals based on Period to which the Accounting Date falls)Thus the option “General Ledger Journal Entry Summarization” will determine if the Import for the application is being done in Detail or Summary mode.

2. Prior to Release 12, it was needed that the Journal Import should be run in the same language as the language, which was used to transfer data to GL_INTERFACE. Though this is not much relevant now (the transfer and journal import are triggered together); still Journal Import can be made independent of the language. This can be achieved by running journal import using the Source and Category Key. Generally the columns user_je_source_name and user_je_category_name in gl_interface, correspond to the columns GL_JE_SOURCES.user_je_source_name and GL_JE_CATEGORIES.user_je_category_name respectively. These values change for

the different language and thus making journal import language-dependent. However while defining the sources (General Ledger Responsibility : Setup -> Journal -> Source), if the option “Import Using Key” is selected, then import refers to GL_JE_SOURCES.je_source_key and GL_JE_CATEGORIES.je_category_key. These being the Key values are common across languages and hence journal import becomes language independent.

3. While running Journal Import from General Ledger responsibility, the LOV of Ledger appears provided there is data in the table GL_INTERFACE for the ledger and the Data Access Set attached to the responsibility has either Full or Read/Write access to the Ledger.

Journal -> Import -> Run

LOV for Ledger.

In case a different Interface table is being used, the LOV will check for the data in GL_INTERFACE_CONTROL instead of GL_INTERFACE.

4. Data Access Sets do apply to Journal Import too. To be able to import data, one should have either Full or Read/Write Access to the ledger and all the Balancing Segment Values for which data is populated in GL_INTERFACE.

In case one does not have access to the Ledger at all, the LOV for Ledger will not appear in Journal -> Import -> Run screen and hence he will not be able to submit Journal Import.

If there are multiple balancing segments in the data in GL_INTERFACE, and the responsibility has access to a few and not to others, then you will be able to run Journal Import but it will complete in Warning and data will not be imported. Error shown in the Journal Import Execution report would be:

EM29 : You do not have access to this ledger and account

combination.

Posted in Accounts Payables, Accounts Receivables, General Ledger, Oracle E-Business Applications, Oracle Financial, Subledger Accounting | Leave a Comment »

Part II : Impact of SLA on Journal Import in General Ledger Posted by Mahmoud Maher on August 31, 2010

Part II : Impact of SLA on Journal Import in General Ledger The way Journal Import is triggered from the subledgers has undergone a major change in Release 12. Execution of Journal Import from the Subledgers depends on the setting of the Profile option “SLA: Disable Journal Import”.The profile option “SLA: Disable Journal Import” can be set only at the Site level and hence will be applicable to all the subledgers/modules. The default value for this profile option is ‘No’ and this should NEVER be changed, unless suggested by Support or Development.

Setting this profile option to ‘Yes’ breaks the link between SLA and GL, so GL no longer knows which journals came from SLA. This may cause problems with inquiry and drilldown on these journals in the future. This option is set to ‘Yes’ only in cases where GL is on a separate instance than SLA.SLA: Disable Journal Import set to No.Value ‘No’ for this profile option indicates that Journal Importwill ALWAYS accompany the transfer of data from Subledger.Another main implication of this value is that, on failure of Journal Import, the data will be rolled back to SLA tables and hence we will not have any data in GL_INTERFACE. Note that for this setting of the profile option, General Ledger will have very little part to play, as any error in Journal Import will take the data back to SLA tables and GL_INTERFACE will not have any data in it. This will also mean that “Journal -> Import -> Run” and “Journal -> Import -> Correct” forms will not be used for the Subledger data as GL_INTERFACE will never have any data for them. However, these forms will continue to be used for the data, which is being transferred from some other sources such as Legacy or some user defined sources for which data is populated in GL_INTERFACE table, and then Import is run in General Ledger.Whenever data is transferred from the subledgers, the request doing so, will also trigger the Journal Import program. The name of the program to transfer data to GL, will change as per the subledger; we have explained the behavior below with respect to the Payables module. In Payables, there are three options for transferring data to GL:1. When Online Accounting is done for Payables transactions, there are three options available:a. Draftb. Finalc. Final PostFor any value of the profile option, Draft and Final optionswork in the same way i.e draft mode creates the SLA journalsin Draft mode which can be modified afterwards; Final modecreates SLA journals and the transaction can not be modified after this. The SLA journal can then be transferred to General Ledger.Transfer of the journals created in Final Mode is done using ‘Transfer to General Ledger’ concurrent request. However “Final Post” works differently for the two values of the Profile option. If profile option is set to No, then “Final Post” creates the SLA journals in Final mode, transfers the data to GL_INTERFACE, runs Journal Import and triggers the General Ledger Posting program too.2. When Accounting is done from Submit request form i.e by running the request “Create Accounting”, it gives the following options:a. Mode: Draft or Finalb. Transfer to General Ledgerc. Post in General LedgerIf “Transfer to General Ledger” is selected as Yes, then the data is transferred to GL_INTERFACE and immediately after that Journal Import request is also triggered. In case of any errors, the data is rolled back to SLA tables.3. If Accounting is done in Final Mode and we are transferring the data by running the request “Transfer Journal Entries to GL” request, it gives the option of “Post in General Ledger” which refers to the Posting program in General Ledger.Thus there is no option for Journal Import as Journal Import will always be triggered by the Transfer program. From points 1, 2 and 3, it is evident that Journal Import has become an inbuilt part of the Transfer Journal Entries program of SLA in Release 12. Thus when the profile option “SLA: Disable Journal Import” is set to “No”, GL_INTERFACE table will never have data for Subledgers.

”SLA: Disable Journal Import” set to YesThis setting for the profile option indicates that the transferring of data from Subledgers will take place in the same manner as it happens in Release 11i. However changing the value of the Profile option to Yes is strictly not suppported and should NEVER be used as this may lead to issues related to the linking between SLA and GL journals. For this value of profile, the Transfer to GL programs of the subledgers, populates the data in GL_INTERFACE and then Import needs to be run manually from GL. In case the subledger is providing the option of running the journal import too along with the transfer to GL, then the request will fire the Journal Import also. However in case of a Journal Import error, the data will remain in GL_INTERFACE table.


Part I : Impact of SLA on Drilldown in General Ledger Posted by Mahmoud Maher on August 31, 2010

Part I : Impact of SLA on Drilldown in General LedgerDrilldown functionality enables users to navigate from a Journal in General Ledger to the Subledger Journal Entry in SLA and from there to the transaction which has resulted into that journal.To enable Journal drilldown from General Ledger, the “Import Journal References” option should be enabled for the Source.This can be checked under General Ledger Responsibility at Setup -> Journal -> Sources -> Define.Only when this is enabled, the reference data is populated by SLA engine.The Drilldown in Release 12 is different from the prior releases of the Application. R12 drilldown is Web based and not in the Forms.1- Navigation to perform Drilldown is the same as in Release 11i.Journals -> Enter -> Review JournalSelect the journal line and click on “Lines Drilldown”.2- Drilldown can also be performed from:Tools -> DrilldownAs mentioned above, Drilldown opens the Web Page instead of Form.The SLA Page for Drilldown shows the following:• GL Journal Line information• Subledger Journal Line informationThere are two Options available on this SLA page:• View Transaction• View Journal Entry‘View Transaction’ will take us to the Subledger Transaction form.E.g for the current journal line, since the Source was Payables, it opens Invoice Workbench.‘View Journal Entry’ will take to the Subledger Journal Entry detailsView Journal Entry has three parts to it.1. Transaction Information2. Additional Information (this is hidden by default)3. Line DetailsApart from this there are some extra details shown at the top of the page, which is the header level information for the Subledger Transaction.

Some of the important fields in header part of the Subledger Transaction Journal are:• Ledger Name• Journal Entry Status• Balance Type• GL DateThis is the ‘Additional Information’ section of Subledger Transaction Entry page.This section shows the details of• Event• General Ledger• Sequences• Application Accounting DefinitionNote that Event and Application Accounting Definition are important from SLA side. However, from GL perspective the relevant details are Period, Transfer to GL Date and Transfer to GL status.This is the last section, ‘Lines’ of the Subledger Journal Entry page.The important details in this section are:• Code Combination• Currency• Entered Debits and Credits• Accounted Debits and CreditsSelect the link ‘Show’ for any of the lines to view additional details for the transaction lineProfile Options related to Drilldown:SLA: Enable Subledger Transaction Security in GLThis profile option controls whether the drilldown to SLA will enforce the transaction security of the application owning the Transaction. For example, if one drills down to Payables, he will only be able to see Journals for transactions belonging to operating units to which he has access (based on your MO: Security Profile.) Thus drilldown can be restricted to the Operating Units to which the responsibility has access. In case the GL responsibility does not have access to a particular Operating Unit, the Drilldown will not show any data.


R12 Subledger Accounting (SLA) Posted by Mahmoud Maher on January 2, 2010

R12 Subledger Accounting (SLA)

Oracle Subledger Accounting (SLA) is a new module in R12. This document is intended as a summary

of some of the new features included in this module and an overview at how to access this information

through the E-business UI and through the database.

SLA is an enhancement to the Global Accounting Engine seen in previously released versions of the

Oracle E-business Suite. All Global Accounting Engine Features are supported by Oracle Subledger

Accounting (SLA).

SLA stores complete and balanced journal entries for each Subledger Transaction and GL Date. This

means that SLA captures detailed drilldown for each captured journal entry line and becomes a single

source of truth for all accounting, reconciliation and analytical reporting.

SLA offers the ability to create multiple accounting representations for the same Subledger

Transactions each to be stored in a separate ledger.

SLA also offers the ability to substitute new accounts for old ones using mapping functionality. This is

useful when Accounts become redundant. The redundant account can simply have a mapping to a new

account. Subledger Accounting will then generate any accounting with the new account code saving

time having to manually updating entries with redundant codes.

Accounting entries are generated in SLA by running Create Accounting. This can be done at different

levels in each Subledger. For Receivables, Create Accounting can either be run at Transaction Level

through a Tools menu option in AR or at Ledger Level through the Concurrent Requests Screen. For

Payables, it can be run through the Actions Button or at Ledger Level through the Concurrent Requests

Screen.

When we Create Accounting for Transactions, we can run them in 3 ways:

1 Draft This allows users of the Subledger to review and amend the accounting created

2 Final This is the final version of the accounting for the Subledger

3 Final and Post to

GL

Create a final version of the accounting, transfer to GL and Post in GL

Users have the ability to view accounting creating for each transaction. This is available from the Tools

menu option within the Transactions screen in Receivables and the Invoices screen in Payables.

Viewing SLA Data through the User Interface (UI)

An example of the Accounting for a Receivables Transaction is below. We first look at the transaction

through the Forms UI.

Go to Tool => View Accounting

We can see the Ledger and also the Accounts that the accounting applies to.

Viewing data through the Tables

We now turn our attention to finding where this data is stored in the database. For this we use the

Oracle Diagnostics Tool for Receivables .

We run the diagnostics for the invoice we looked at above. The accounting for this invoice can be seen

below:

This also allows us to get at the individual queries used to generate this data, by using the See SQL

hyperlinks. For this example these are:

XLA_EVENTS:

SELECT *

FROM xla_events xe

WHERE xe.application_id = 222

AND xe.entity_id IN (

SELECT xte.entity_id

FROM xla.xla_transaction_entities xte

WHERE xte.application_id = 222

AND xte.entity_code = ‘TRANSACTIONS’

AND xte.source_id_int_1 = 10066)

XLA_AE_HEADERS:

SELECT *

FROM xla_ae_headers xah

WHERE xah.application_id = 222

AND xah.entity_id IN (






XLA_AE_LINES:

SELECT xal.*

FROM xla_ae_lines xal, xla_ae_headers xah

WHERE xal.application_id = xah.application_id

AND xal.ae_header_id = xah.ae_header_id

AND xah.application_id = 222







XLA_DISTRIBUTION_LINES:

SELECT xdl.*

FROM xla_distribution_links xdl, xla_ae_headers xah

WHERE xdl.application_id = xah.application_id

AND xdl.ae_header_id = xah.ae_header_id

AND xah.application_id = 222







It is obvious that the driving table and link for all SLA transaction queries is the

XLA_TRANSACTION_ENTITIES table. A possible but not complete list of Entity Codes are:

TRANSACTIONS, RECEIPTS, ADJUSTMENTS, PURCHASE_ORDER, AP_INVOICES,

AP_PAYMENTS. This demonstrates that this is a common table for linking Subledger Transaction

such as AR Transactions through to their accounting entries.

Subledger Accounting Setup

This is performed for each Subledger such as Receivables or Payables by navigating to Setup =>

Accounting.

Each Subledger has its own Journal Sources, Entities (remember we saw these above in the table

XLA_TRANSACTION_ENTITIES), Mapping Sets (for mapping redundant accounts), … . Please

review the Oracle Subledger Accounting User Guide for an in depth explanation of the setup required

for each Subledger.

Posted in Oracle Financial, Subledger Accounting | 8 Comments »

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Oracle Application FinancialSetting Up Intracompany And Intercompany Accounting – An Example Posted by Mahmoud Maher on January 11, 2011

Setting Up Intracompany And Intercompany Accounting – An ExampleIntracompany Balancing Rules

Intracompany balancing rules are used for creation of balancing lines on journals between balancing segment values either within the same legal entity, or where there is no legal entity context.

Intracompany balancing rules are used when more than one balancing segment value exists on a transaction or journal entry, as long as you have selected the Balance Intracompany Journals option for the ledger. You cannot post a journal in general ledger when the debit and credit amounts for each balancing segment value do not net to zero. These journals can be balanced automatically if you setup balancing rules and enable the option to balance cross-entity journals.

You must define intracompany balancing rules if you want to balance journals automatically. You may define as many or as few balancing rules as you choose, and each balancing rule may have many accounting rules. Because balancing is an automated process, there should be at least one balancing rule with at least one accounting rule to proceed. This default balancing rule should be defined for the journal source Other and journal category Other for the ledger and legal entity you wish to balance. The default accounting rule on each balancing rule is defined for the debit balancing segment value All Other and credit balancing segment value All Other.

With intracompany accounting, you can define both a debit (due from) and credit (due to) balancing segment, which gives you more control over each balancing relationship. You can specify different debit and credit accounts for each different intracompany trading partner, which is represented by a specific balancing segment value.

All Other is also available as a balancing segment value if you want the balancing segment value to use the same due to / due from accounts for every intracompany trading relationship that has not been specifically defined.

If you set up a specific debit and credit balancing segment value, then the exact debit and credit accounts are used. If you use All Other, the appropriate trading partner balancing segment value replaces the balancing segment of the account combination.

For balancing many-to-many journals there are several balancing segment values with net debits and net credits on a transaction and it is not possible to determine which balancing segment value is trading with which balancing segment value. You can decide whether to use a clearing balancing segment value or a default rule to handle these transactions.

Evaluation Order

Intracompany balancing allows you to define as much flexibility as your business dictates. When there are many balancing rules defined, the Balancing API uses an evaluation order to pick the appropriate rule. Once the balancing rule is selected, there may also be several accounting rules that must be evaluated on the balancing rule. The Balancing API uses the same order for evaluating accounting rules, and understanding this evaluation order will help you define your balancing rules and your accounting rules.

1. Explicitly defined rules are checked first, and they take precedence over all other rules.

a. For balancing rules, this means a specific combination of journal source and journal category exists for the ledger and legal entity. For example, a balancing rule for the journal source Adjustment and the journal category Assets.

b. For accounting rules, this means a specific combination of debit balancing segment value and credit balancing segment value. For example, debit balancing value ’01′ and credit balancing segment value ’02′.

2. If the Balancing API finds no explicit match, then it next searches for a rule with explicitly defined combined with a default value.

a. For balancing rules, this means a combination of a specific journal source and the default journal category for the ledger and legal entity. For example, a balancing rule for the journal source Adjustment and the journal category Other.

b. For accounting rules, this means a combination of a specific debit balancing segment value and the default credit balancing segment value. For example, debit balancing value ’01′ and credit balancing segment value All Other.

3. If the Balancing API finds no match, then it next searches for a rule with a default value combined with an explicitly defined value.

a. For balancing rules, this means a combination of the default journal source and a specific journal category for the ledger and legal entity. For example, a balancing rule for the journal source Other and the journal category Assets.

b. For accounting rules, this means a combination of the default debit balancing segment value and a specific credit balancing segment value. For example, debit balancing value All Other and credit balancing segment value ’02′.

4. Finally, if the Balancing API finds no match after checking for all three previous steps, then the default value should be used.

a. For balancing rules, this means a combination of the default journal source and the default journal category for the ledger and legal entity. For example, a balancing rule for the journal source Other and the journal category Other.

b. For accounting rules, this means a combination of the default debit balancing segment value and the default credit balancing segment value. For example, debit balancing value All Other and credit balancing segment value All Other.

Summary Net and Detail Mode

You determine the level that the Balancing API uses when balancing journals by selecting either Summary Net or Detail. If you select Detail, each line on the journal is balanced individually and a balancing line is generated for each line on the journal. If you select Summary Net, the Balancing API summarizes the debits and credits for each balancing segment value on the journal, determines the overall net debit or net credit for each balancing segment value, balances using the net amounts for each balancing segment value, and produces a summary balancing line for each balancing segment value.

When processing in Summary Net mode, the Balancing API retains the differences in exchange rates for lines with the same balancing segment value. Also note that for lines with negative amounts (debits or credits), if the Balancing API is set to process in Detail mode, the sign of each original line is retained in the balancing line. If the Balancing API is set to process in Summary Net mode, negative debits are interpreted as positive credits and negative credits as positive debits, because each balancing segment value is summarized.

Journal Mode

In order to balance a journal, the journal type must be determined. A journal may be one-to-one, one-to-many, many-to-one, and many-to-many. The type of journal is determined by netting the debit and credit amounts for each balancing segment value and examining the trading relationship.

Below are examples of each journal mode.

One to One

In a one-to-one journal, there is only one balancing segment value with a net debit, and only one balancing segment value with a net credit.

This example uses a chart of accounts with three segments: balancing, natural account, and intercompany. Assume you define the accounts shown in the table below for a specific legal entity, source, category, and the balancing level is set to Summary Net.

Dr BSV Cr BSV Debit Account Credit AccountAll Other All Other XX-4000-XX XX-2000-XX02 01 02-4001-01 01-2002-02

You create the following journal, shown in the table below, which the Balancing API must balance:

Line Account Dr Cr1 01-5200-00 6600.002 02-5555-00 2300.003 01-1122-00 1000.004 02-1280-00 7900.00

The Balancing API sums the debits and credit for each balancing segment value to determine the type of journal. In the example shown in the table below, the journal is one-to-one (01 to 02) and 01 is trading with 02.

BSV Net Dr Net Cr01 5600.0002 5600.00

The Balance By option is set to Summary Net, so the each balancing segment is netted and balanced with one line. The Balancing API creates the balanced journal shown in the table below:

Line Account Dr Cr Description1 01-5200-00 6600.00 Original line2 02-5555-00 2300.00 Original line3 01-1122-00 1000.00 Original line4 02-1280-00 7900.00 Original line5 01-2002-02 5600.00 Net credit 02-016 02-4001-01 5600.00 Net debit 02-01

The result is now each balancing segment value balances.

One to Many

In a one-to-many journal, there is only one balancing segment value with a net debit and many balancing segment values with a net credit. All credit balancing segment values are assumed to be trading with the single debit balancing segment value (the driving segment), and all credit balancing segment values balance with the single debit balancing segment value.

This example uses a chart of accounts with three segments: balancing, natural account, and intercompany. Assume you define the accounts shown in the table below for a specific legal entity, source, category, and the balancing level is set to Summary Net.

Dr BSV Cr BSV Debit Account Credit AccountAll Other All Other XX-4000-XX XX-2000-XX02 01 02-4001-01 01-2002-0203 01 03-4003-01 01-2003-03

You create the following journal, shown in the table below, that the Balancing API must balance:

Line Account Dr Cr1 01-5200-00 5600.002 02-5000-00 1200.003 01-1111-00 1200.004 02-1280-00 2400.005 03-1450-00 3200.00

The Balancing API sums the debits and credit for each balancing segment value to determine the type of journal. In the example shown in the table below, the journal is one-to-many with 01 on the debit side, 02 and 03 on the credit side, and 01 being the driving segment.

BSV Net Dr Net Cr01 4400.0002 1200.0003 3200.00

The Balance By option is set to Summary Net, so each credit balancing segment is netted and balanced with one line against the single debit balancing segment. The Balancing API creates the balanced journal shown in the table below:

Line Account Dr Cr Description1 01-5200-00 5600.00 Original line2 02-5000-00 1200.00 Original line3 01-1111-00 1200.00 Original line4 02-1280-00 2400.00 Original line5 03-1450-00 3200.00 Original line6 02-4001-01 1200.00 Net debit 02-017 01-2002-02 1200.00 Net credit 02-018 03-4003-01 3200.00 Net debit 03-019 01-2003-03 3200.00 Net credit 03-01


Many to One

In a many-to-one journal, there are many balancing segment values with a net debit and only one balancing segment value with a net credit. All debit balancing segment values are assumed to be trading with the single credit balancing segment value (the driving segment), and all debit balancing segment values balance with the single credit balancing segment values.

This example uses a chart of accounts with three segments: balancing, natural account, and intercompany. Assume you define the accounts shown in the table below for a specific legal entity, source, category, and assume the balancing level is set to Detail.

Dr BSV Cr BSV Debit Account Credit AccountAll Other All Other XX-4000-XX XX-2000-XX01 03 01-4001-03 03-2001-0102 03 02-4002-03 03-2002-0203 All Other 03-4003-XX XX-2003-03


Line Account Dr Cr1 01-5200-00 5600.002 02-5000-00 3200.003 01-1111-00 3200.004 02-1280-00 2400.005 03-1450-00 3200.00

The Balancing API sums the debits and credit for each balancing segment value to determine the type of journal. In the example shown in the table below, the journal is one-to-many with 01 and 02 on the debit side, and 03 on the credit side, and 03 being the driving segment.

BSV Net Dr Net Cr01 2400.0002 800.0003 3200.00

The Balance By option is set to Detail, so the Balancing API begins processing with the first line and skips all the lines of the driving segment (03). The Balancing API creates the balanced journal shown in the table below:

Line Account Dr Cr Description1 01-5200-00 5600.00 Original line2 02-5000-00 3200.00 Original line3 01-1111-00 3200.00 Original line4 02-1280-00 2400.00 Original line5 03-1450-00 3200.00 Original line6 01-2003-03 3600.00 Net credit 03-017 03-4003-01 5600.00 Net debit 03-018 02-2003-03 3200.00 Net credit 03-029 03-4003-02 3200.00 Net debit 03-0210 01-4001-03 3200.00 Net debit 01-0311 03-2001-01 3200.00 Net credit 01-0312 02-4002-03 2400.00 Net debit 02-0313 03-2002-02 2400.00 Net credit 02-03


Many to Many

In a many-to-many journal, there are many balancing segment values with a net debit and many balancing segment values with a net credit. With a many-to many journal, there is no automated way to determine which balancing segment values should balance against each other, so you must use a default rule or clearing company.

Note: If you need more detail and do not want to usea default rule or clearing company, use OracleIntercompany for complex many-to-many transactions.

This example uses a chart of accounts with three segments: balancing, natural account, and intercompany. Assume you define the accounts shown in the table below for a specific legal entity, source, and category. The many-to-many balancing option is set to Use Clearing Balancing Segment Value and the balancing level is set to Summary Net. The clearing balancing segment value is 99.


Dr BSV Cr BSV Debit Account Credit AccountAll Other All Other XX-4000-XX XX-2000-XX02 99 02-4099-99 99-2002-0204 99 04-4099-99 99-2004-0499 01 99-4001-01 01-2099-9999 03 99-4003-03 03-2099-99


Line Account Dr Cr1 01-5200-00 1800.002 02-5000-00 1200.003 03-1220-00 4700.004 04-1870-00 1000.005 01-1111-00 1200.006 02-1280-00 2400.007 03-1450-00 3200.008 04-1110-00 1900.00

The Balancing API sums the debits and credit for each balancing segment value to determine the type of journal. In the example in the table below, the journal is many-to-many with 01 and 03 on the debit side, 02 and 04 on the credit side.

BSV Net Dr Net Cr01 600.0003 1500.0002 1200.0004 900.00

The Balance By option is set to Summary Net, so each balancing segment is netted and balanced with one line against the clearing balancing segment value.

Line Account Dr Cr Description1 01-5200-00 1800.00 Original line2 02-5000-00 1200.00 Original line3 03-1220-00 4700.00 Original line4 04-1870-00 1000.00 Original line5 01-1111-00 1200.00 Original line6 02-1280-00 2400.00 Original line7 03-1450-00 3200.00 Original line8 04-1110-00 1900.00 Original line9 03-2099-99 1500.00 Net credit 99-0310 99-4003-03 1500.00 Net debit 99-0311 01-2099-99 600.00 Net credit 99-0112 99-4001-01 600.00 Net debit 99-0113 04-4099-99 900.00 Net debit 04-9914 99-2004-04 900.00 Net credit 04-9915 02-4099-99 1200.00 Net debit 02-9916 99-2002-02 1200.00 Net credit 02-99

The result is now each balancing segment value balances, as does the clearing balancing segment value.

Balancing API for Intercompany Journals

If each balancing segment value represents a different legal entity, intercompany accounts are used to balance a journal with these balancing segment values. The intercompany payables and intercompany receivables accounts are used, rather than intracompany balancing rules.

The Balancing API is used by general ledger and subledger accounting to build accounting lines automatically. The Balancing API uses Intracompany Balancing Rules for balancing segment values in the same legal entity, or those with no legal entity context. The Balancing API uses intercompany payables and receivables accounts when each balancing segment value represents a different legal entity.

If there are both intercompany and intracompany lines in the same transaction, the Balancing API will first perform intercompany balancing across legal entities, and then intracompany balancing across balancing segment values within each legal entity. Intercompany balancing results in debits and credits balanced for each legal entity. Afterwards, intracompany balancing results in debits and credits balanced for each balancing segment within each legal entity. The Balancing API is called when posting journals in general ledger, or when accounting for transactions in the subledgers

Intercompany Balancing

Intercompany journals are the journals that involve balancing segment values that map to different legal entities. These journals are balanced for each legal entity by using their intercompany accounts. The Balancing API uses the intercompany accounts defined for the relevant effective date range. Since multiple accounts may be defined for the same date range, Balancing API will pick the accounts flagged with the Use for Balancing indicator (see Set Up Intercompany Accounting) . The offsetting debit for a legal entity goes into its intercompany receivables account. The offsetting credit goes into the legal entity’s intercompany payables account.

Intercompany accounts may be defined at the legal entity level. That is, each transacting legal entity has different intercompany accounts defined for different trading partner legal entities regardless of which specific balancing segment values of those legal entities are used in the journals. The transacting and trading partner balancing segment values are then not explicitly specified in the definition and are set to All.

Intercompany accounts may be defined at the balancing segment level of the legal entities. In other words, a transacting legal entity can use different accounts for different transacting balancing segment values depending on what the trading partner legal entity and trading partner balancing segment value are. In that case, transacting or trading partner balancing segment values may be explicitly specified in the intercompany account definitions.

There are several types of intercompany journals possible. The Balancing API will first determine the type of the intercompany journal (one-to-one, one-to-many, many-to-one, or many-to-many) with respect to the legal entities. For intercompany balancing there is no Clearing Company usage and all legal entities are balanced by summary net with respect to each other.

The following examples consider these types journals and how they are balanced. Since it is easier to follow the process when the intercompany accounts are defined at the legal entity level, those scenarios are considered first. The way the journals are balanced for intercompany account definitions at the balancing segment value level is explained afterwards. For the scenarios below assume that the ledger is assigned to a Shared accounting configuration and has a chart of accounts with three segments: balancing, natural account, and intercompany segments.

Intercompany Accounts at the Legal Entity Level

One Legal Entity to One Legal Entity

Suppose that legal entity LE1 maps to balancing segment values 10 and 11, while LE2 maps to balancing segment values 20 and 21. Consider the following intercompany account setup:

TransactingLE

TransactingBSV

TradingPartnerLE

TradingPartnerBSV

Account IntercompanyAccount Type

LE1 All LE2 All 10-4020-00 Receivables

LE1 All LE2 All 10-2020-00 PayablesLE2 All LE1 All 20-4010-00 ReceivablesLE2 All LE1 All 20-2010-00 Payables

Journal 1:

1 10-5200-00 1800.002 20-5000-00 1800.00

Since Journal 1 is between two balancing segment values (BSV’s) that belong to different legal entities (LE’s) then intercompany accounts will be used to balance it. First the After the balancing entries are added, the journal is shown below:

Journal 1 – Balanced by legal entity:

1 10-5200-00 1800.00 Original2 20-5000-00 1800.00 Original3 10-2020-00 1800.00 Balancing4 20-4010-00 1800.00 Balancing

Next, consider the following journal that contains more balancing segment values:

Journal 2:

1 10-5200-00 1800.002 11-5200-00 600.003 10-5300-00 600.004 20-5000-00 1800.00

This is a one legal entity to one legal entity journal between legal entities LE1 and LE2. After the summary net balancing entries are added, the journal is shown below:

Journal 2 – Balanced by legal entity:

1 10-5200-00 1800.00 Original2 11-5200-00 600.00 Original3 10-5300-00 600.00 Original4 20-5000-00 1800.00 Original5 10-2020-00 1800.00 Balancing6 20-4010-00 1800.00 Balancing

Notice that Balancing API adds lines 5 and 6 to make the journal balanced for each legal entity. In other words, the debits and credits net to zero for both LE1 and LE2. However, notice that for LE1 we still need to perform intracompany balancing since the entries are not balanced by balancing segment values (10 or 11). Intracompany balancing within LE1 will be performed using the relevant intracompany balancing rules. Suppose that the relevant intracompany balancing rule (summary net, no clearing company) is as follows:

Dr BSV Cr BSV Debit Account Credit AccountAll Other All Other XX-4000-XX XX-2000-XX

Then intracompany balancing lines 7 and 8 are added to Journal 2. Journal 2 thus shows the results of both intercompany and then intracompany balancing.

Journal 2 – balanced by legal entity and balancing segment value:

1 10-5200-00 1800.00 Original2 11-5200-00 600.00 Original3 10-5300-00 600.00 Original4 20-5000-00 1800.00 Original5 10-2020-00 1800.00 Balancing6 20-4010-00 1800.00 Balancing7 10-4000-11 600.00 Balancing8 11-2000-10 600.00 Balancing

Many legal entity to One legal entity and One legal entity to Many legal entity types of journals are balanced similar to the One-to-One type. That is, each legal entity on the “Many” side is balanced against the legal entity on the “One” side.

Many Legal Entities to Many Legal Entities

For Many-to-Many intercompany journal type, it is not possible to determine which legal entity is trading with which trading partner. The Balancing API uses the intercompany accounts defined for the All Other legal entity trading partner.

BSV 10 maps to LE 1. BSV 20 maps to LE 2. BSV 30 maps to LE 3. BSV 40 maps to LE 4. Consider the following intercompany account setup:

TransactingLE

TransactingBSV

TradingPartnerLE

TradingPartnerBSV

Account IntercompanyAccount Type

LE1 All All Other All 10-2001-00 PayablesLE2 All All Other All 20-4002-00 ReceivablesLE3 All All Other All 30-4003-00 ReceivablesLE4 All All Other All 40-2004-00 Payables

Consider the following journal.

Journal 3:

1 10-5200-00 1600.002 40-5111-00 1200.003 20-5000-00 1000.004 30-1400-00 1800.00

This journal is a Many-to-Many journal since multiple legal entities are present on both the debit and the credit side. Since the Balancing API cannot determine the explicit trading partners for each legal entity, the intercompany accounts set up for All Other trading partner legal entity are used:

Journal 3 – balanced by legal entity:

1 10-5200-00 1600.00 Original2 40-5111-00 1200.00 Original3 20-5000-00 1000.00 Original4 30-1400-00 1800.00 Original5 10-2001-00 1600.00 Balancing6 40-2004-00 1200.00 Balancing7 20-4002-00 1000.00 Balancing8 30-4003-00 1800.00 Balancing

Intercompany Accounts at the Balancing Segment Value Level

Previous examples demonstrated how intercompany accounts can be defined and used at the legal entity level. Intercompany accounts can also be defined in the context of balancing segment values, or at the balancing segment value level. So the account definition could explicitly refer to the transacting balancing segment value and the trading partner balancing segment value. This way, different accounts can be used for the same two trading legal entities depending on which balancing segment values both entities are using. In general, each combination of transacting legal entity, transacting balancing segment value, trading partner legal entity, and trading partner balancing segment value may have its own intercompany account definition.

The journal entries for each legal entity can be composed of several balancing segment values belonging to this legal entity. The intercompany balancing procedure in case of intercompany accounts defined for various combinations of transacting and trading partner balancing segment values is very similar to the way the journals are balanced with account definitions at the legal entity level. Just like in the case of account definitions at the legal entity level, intracompany balancing may take place after intercompany balancing entries are added for each legal entity.

Balancing API will proceed according to the steps outlined below for intercompany balancing in the general case (when some accounts are defined at the balancing segment value level):

1. Group all debits and credits by legal entity. Determine the number of legal entities involved in the journal. There are 4 possibilities:

2. One legal entity to One legal entity journal: the journal is between two legal entities. For a journal between two legal entities, determine the balancing segment values involved on the side of each legal entity. There are 4 possibilities:

a. One balancing segment value to One balancing segment value: for each legal entity determine what intercompany accounts will be used to do intercompany balancing. We will look for and use an intercompany receivables account to create an offsetting debit. We will look for and use an intercompany payables account to create an offsetting credit. The Use for Balancing flag in Intercompany Accounts UI tells us which account should be used in balancing when multiple accounts are defined. The determination of the intercompany accounts is performed according to the Hierarchy Table below starting with rule 1 (From LE, From balancing segment value, To LE, To balancing segment value) and stopping when an account is found.

b. One balancing segment value to Many balancing segment values: same as for One balancing segment value to One balancing segment value case except the Hierarchy Table rules checked are 2, 4, and 5.

c. Many balancing segment value to One balancing segment value: same as for One to One balancing segment value case except the Hierarchy Table rules checked are 3, 4, and 5.

d. Many balancing segment value to Many balancing segment value: same as for One balancing segment value to One balancing segment value case except the Hierarchy Table rules checked are 4 and 5.

Rule Number Intercompany Accounts Defined for1 Transacting LE, Transacting BSV, Trading Partner LE, Trading Partner BSV2 Transacting LE, Transacting BSV, Trading Partner LE3 Transacting LE, Trading Partner LE, Trading Partner BSV4 Transacting LE, Trading Partner LE5 Transacting LE, Trading Partner All Other Legal Entities

Table 1 Hierarchy Table

3. One legal entity to Many legal entity journal: the balancing procedure for this case is to break down the journal into One LE to One LE journals and perform intercompany balancing within each journal (each journal then is One to One and be balanced as shown in step 2).

4. Many legal entity to One legal entity journal: same as One legal entity to Many legal entity journal.

5. Many legal entity to Many legal entity journal: this journal is balanced for each legal entity by using the Transacting Legal Entity and Trading Partner All Other Legal Entities accounts.

Consider the following setup. The COA for this example has two segments: balancing, and natural account. Assume that balancing segment values 10 and 50 map to legal entity LE1, balancing segment values 20 and 60 map to legal entity LE2, and balancing segment values 30 and 70 map to legal entity LE3. The intercompany accounts are set up as follows:

Transacting LE

Transacting BSV

Trading Partner LE

TradingPartner BSV Account Intercompany

Account TypeLE1 All LE2 20 10-2022 ReceivablesLE1 All LE2 20 10-4022 PayablesLE1 50 LE2 All 50-2025 ReceivablesLE1 50 LE2 All 50-4025 PayablesLE1 All LE2 All 10-2020 ReceivablesLE1 All LE2 All 10-4020 PayablesLE1 All LE3 30 10-2030 ReceivablesLE1 All LE3 30 10-4030 PayablesLE1 All LE3 All 10-2044 ReceivablesLE1 All LE3 All 10-4044 PayablesLE2 20 LE1 All 20-2010 ReceivablesLE2 20 LE1 All 20-4010 PayablesLE2 All LE1 All 20-2011 ReceivablesLE2 All LE1 All 20-4011 PayablesLE2 All LE3 All 20-2030 ReceivablesLE2 All LE3 All 20-4030 PayablesLE3 All LE1 All 30-2050 Receivables

LE3 All LE1 All 30-4050 PayablesLE3 30 LE1 All 30-2077 ReceivablesLE3 30 LE1 All 30-4077 PayablesLE3 All LE2 All 30-2020 ReceivablesLE3 All LE2 All 30-4020 PayablesLE3 30 LE1 50 30-9977 ReceivablesLE3 30 LE1 50 30-9987 Payables

Now consider Journal 4:

1 10-5200 2800.002 50-5200 1000.003 20-5000 500.004 60-5000 300.005 30-1400 1000.00

With respect to legal entities, we can represent it as follows:

LE1 1800.00LE2 800.00LE3 1000.00

So this journal is a one legal entity to many legal entity journal. We will only show how INTERCOMPANY balancing will be performed. Note that INTRACOMPANY balancing within each LE will be performed after the entries are balanced for each LE.This journal with respect to legal entities is composed of LE1 on the “One” side and LE2 and LE3 on the “Many” side.Consider LE1 to LE2 entries. Notice that on the side of LE1 we have two BSV’s: 10 and 50. Also note that on the side of LE2 we have two BSV’s: 20 and 60. So our LE1 to LE2 journal is a Many balancing segment value to Many balancing segment value journal. So the offsetting entry for LE1 is a credit to the Payables account from the rule Transacting LE=LE1, Trading Partner LE=LE2: 10-4020. The offsetting entry for the LE2 is a debit to the Receivables account from the rule Transacting LE=LE2, Trading Partner LE=LE1: 20-2011.Next consider the LE1 to LE3 entries. On the side of LE1 we still have two balancing segment values (10 and 50). On the side of LE3 we have one balancing segment value (30). For LE1 the offsetting entry is a credit to the Payables account from the ruleTransacting LE=LE1, Trading Partner LE=LE3, Trading Partner BSV=30: 10-4030. For LE3 the offsetting entry is a debit to the Receivables account from the rule Transacting LE=LE3, Transacting BSV=30, Trading Partner LE=LE1: 30-2077.

Journal 4 – balanced by legal entity:

1 10-5200 2800.00 Original2 50-5200 1000.00 Original3 20-5000 500.00 Original4 60-5000 300.00 Original5 30-1400 1000.00 Original6 20-2011 800.00 Balancing7 10-4020 800.00 Balancing8 30-2077 1000.00 Balancing9 10-4030 1000.00 Balancing

Setting Up Balancing

To set up intercompany and intracompany balancing, you must set up legal entities, ledgers, enable the Balance Intracompany Journals ledger option, and define intercompany accounts and intracompany balancing rules. If the Balance Intracompany Journals option is not enabled, no intracompany balancing rules can be defined.

Set up Legal Entities and Ledgers

To set up ledgers and legal entities:

1. Navigate to the Accounting Setup page.2. Define your legal entity. For more information, see Legal Entities in Accounting Setup.3. Define your ledger. For more information, see Ledgers in Accounting Setup.a. Enable the Balance Intracompany Journals option.4. Define your accounting configuration by assigning legal entities and ledgers.5. Proceed to define Intracompany Balancing Rules and Intercompany Accounts.

Set up Intracompany Balancing Rules

To set up intracompany balancing rules:

1. Navigate to the Intracompany Balancing Rules page for the relevant configuration ledger in Accounting Setup Manager.2. In the Intracompany Balancing Rules Summary page, select the legal entity for which the balancing rules will be defined. Note that you may also select a special value of No Legal Entity if you want to associate the rule with the ledger. Click on Define Rules.3. Observe various source-category combinations for which balancing rules have already been defined. Click the Create Rule button to create balancing rules for a new source-category combination.4. In the Create Intracompany Balancing Rules page, select a source and category for which you want to define the rules.5. You may add descriptive flexfield information at the balancing rule level with Intracompany Rule Descriptive Flexfield. You may also use the Intracompany Accounts Descriptive Flexfield at the accounting rule level.6. Enter a debit (due from) and credit (due to) balancing segment value for each debit and credit intracompany account. You can choose All Other to have each balancing segment value use the same due to and due from accounts for every intracompany trading relationship that has not been explicitly defined.

7. In the Options subtab specify:a. if you want Summary Net or Detail level of summarization;b. if you want the Clearing Balancing Segment Value to be used for All Journals or only for Many toMany journals;c. how to proceed if the clearing company is necessary yet unspecified:i. use the Default Clearing Balancing Segment Value (you have to specify that value in the field belowthe dropdown list)ii. use the Manually Entered Balancing Segment Value. This option should not be used for journalscoming from subledgers since there is no way to specify a clearing company for them.iii. use the Default Rule. The Default Rule is the All Other-All Other rule. It can only be used if theClearing Balancing Segment Value is used for Many to Many journals.8. Click Apply to save your changes.

Set up Intercompany Accounting

To set up intercompany accounting:

1. Navigate to the Intercompany Accounts page for the relevant configuration ledger in Accounting Setup Manager.2. Click on the Define Relationships icon for the relevant legal entity.3. In the Intercompany Accounts table, select the Transacting Balancing Segment Value for the intercompany accounts. Select the Trading Partner Legal Entity and the Trading Partner Balancing Segment Value. For both the Transacting Balancing Segment Value and Trading Partner Balancing Segment Value you can select the special value All to define accounts at the legal entity level. Note that if you have mapped your balancing segment values to legal entities, only the relevant balancing segment values will be available for selection. For example, only balancing segment values that are mapped to the transacting legal entity can be selected as the Transacting Balancing Segment Values.4. The Trading Partner Ledger will be selected automatically and cannot be changed. If the accounts are defined for the primary transacting ledger, then the primary ledger of the trading partner legal entity will be selected. If the accounts are defined for the secondary transacting ledger, then only the same secondary ledger can be used as the trading partner ledger.5. Click on the Define Accounts icon for the relevant trading partner.6. In the Define Accounts page, specify intercompany receivables and payables accounts you want to use with the trading partner. Specify the effective date ranges for your accounts.7. You may also enter descriptive flexfield information using the Intercompany Receivables Accounts and Intercompany Payables Accounts descriptive flexfields.

Note: If the intercompany accounts are being defined between two legal entities that share the sameledger, a Use For Balancing radio button allows you to specify which of these accounts is to be usedfor balancing intercompany journals in General Ledger and Subledger Accounting Architecture.

Attention: You may choose “All Other” in the Trading Partner Legal Entity allows you to define thesame accounts for all trading partners. This approach is not recommended since it will be challengingto reconcile intercompany balances.

8. Click Apply and save your work.

Posted in General Ledger, Oracle E-Business Applications, Oracle Financial | Leave a Comment »

R12: What are Ledger Sets, when they are used and how to define them? Posted by Mahmoud Maher on January 9, 2011

What are Ledger sets?Ledgers sets allow you to group multiple ledgers together to achieve processing efficiencies. For example, you can open or close periods for multiple ledgers simultaneously, translate balances for all ledgers in a ledger set, run recurring journals that update balances for multiple ledgers, or run consolidated financial reports that summarize balances across multiple ledgers in a ledger set.

All ledgers in a ledger set must share the same chart of accounts and accounting calendar/period type combination. They do not have to share the same currency. This allows you to group the primary or secondary ledgers with their associated reporting currencies to reduce maintenance efforts and streamline processing.

Note: Both the source ledger and its reporting currency (Journal and Subledger level) must have the same open periods to prevent problems during posting in General Ledger.

When Ledger Sets are used?Some of the General Ledger features that benefit from the use of ledger sets are as follows:• Translation and Revaluation: Translate balances and run revaluation across multiple ledgers in a ledger set.

• Open and Close Periods: Open and close periods for multiple ledgers within a ledger set from a single operation.• Reporting: Submit standard reports and Financial Statement Generator (FSG) reports across multiple ledgers in a ledger set.The added benefit of using ledger sets in FSG reports is to aggregate data and create summarized balances across multiple ledgers in a ledger set.• Inquiry: Perform online inquiry on account balances or journals across multiple ledgers in a

ledger set from a single view; drill down to the journal details and subledger transaction for each ledger.

How to define Ledger Sets?To define a ledger set:1. Navigate to the Ledger Set window.2. Enter a name for the Ledger Set, a Short Name for the ledger set,(Optional) Enter a Description for the ledger set.3. Choose a Chart of Accounts.4. Choose a Calendar and Period Type.5. (Optional) Specify a default ledger. The default ledger automatically defaults in all windows where the Ledger field is required.Note: A Default Ledger is required for Financial Statement Generator (FSG).6. (Optional) Select the Enable Security checkbox to secure the Ledger Set definition. If you do not enable security, all users who have access to this definition will be able to use, view, and modify the ledger set definition.If the Assign Access function is available for your responsibility, the Assign Access button will be enabled once you select the Enable Security checkbox. Choose the Assign Access button to assign the definition to one or more Definition Access Sets with the desired privileges. For more information, see Definition Access Sets, page 1-136.If the Assign Access function has been excluded from your responsibility, you will be unable to view the Assign Access button in the Ledger Sets window. You can still secure the Ledger Set definition by selecting the Enable Security checkbox, but only Definition Access Sets that are AutoAssigned will be automatically assigned to this Ledger Set. See your System Administrator for more information on Function Security.7. In the Ledger/Ledger Set column, choose the ledgers and/or ledger sets to be included in the ledger set. Only those ledgers and ledger sets that share the same chart of accounts, calendar, and period type specified for the ledger set definition will be available.If you use reporting currencies (journal or subledger level), you can choose reporting currencies to be included in the ledger set. Only those reporting currencies that share the same chart of accounts, calendar, and period type specified for the ledger set definition will be available8. Save your work. The General Ledger Accounting Setup Program will be submitted.Ensure this program completes successfully. Once saved, a ledger set cannot be deleted. You can only add or remove ledgers and ledger sets from ledger sets.

Note: You must have at least one ledger or ledger set assigned to a ledger


Helpful Tips for a Successful R12 Oracle Payables Implementation Posted by Mahmoud Maher on January 6, 2011

Helpful Tips for a Successful R12 Oracle Payables Implementation

Please read the entire list before starting your R12 implementation or upgrade.

1. Create a realistic schedule for your R12 implementation or upgrade.2. Conduct your implementation or upgrade on a parallel system.3. Allow yourself sufficient time to implement and perform user acceptance testing

(UAT). This will give you time to assure that your system has been designed and setup to meet your business needs.

4. Assure that as much data as possible is accounted and ALL accounting is transferred.5. Clear up any data issues in 11i before upgrading (i.e., Run the Accounting Health

Check),6. Use the Maintenance Wizard for the upgrade.7. If possible, implement the most current version of R12 (i.e., R12.0.4 — see

Metalink Note: 465776.1 / Patch 6435000. In addition, apply the Oracle Financials and Oracle HRMS Release Update Packs 12.0.5 (RUP5) — see Metalink Note: 565898.1 / Patch 6836355

8. Review the Oracle Financials Critical Patches Alert, see Note:557869.1. The alert includes the links to the R12 Known Issues documents, which list the critical patches for Oracle Payables, Subledger Accounting, E-Business Tax, and other Financials applications. Apply the critical patches to prevent encountering issues that have already been addressed.

9. Apply the pre-upgrade patches BEFORE upgrading to R12.10. Apply the post-upgrade patches ASAP after completing the upgrade.11. Perform several month-end closes before considering a Go-Live date.

Posted in Accounts Payables, Oracle E-Business Applications, Oracle Financial | Leave a Comment »

Cash Management Overview Posted by Mahmoud Maher on January 6, 2011

Cash Management Overview

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Cash Management is designed to manage and control cash cycle.

This allows you to enter bank statements and reconcile the statement transactions against payments in Accounts Payable (AP), receipts in Accounts Receivable (AR), and journal entries in General Ledger. Cash Management (CE) can also reconcile payments and receipts from external/legacy systems. CE can also create and reconcile misc. transactions to record bank transaction entries not entered in AP or AR.

Integration with AR and AP

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You use CE to reverse, clear, reconcile receipts,and create misc transactions for bank transactions not entered in AP or AR.

All these functions are shared and integrated with AR.

You can only use all the CE functions when AP and AR are fully installed.

You must have AR fully installed if you want to record MISC payments.

If you use CE with AP and AR, you must define the system parameters, such as banks, cash clearing, bank charges, and bank errors in AP.

Then define system parameters, such as remittance and cash accounts for each bank, and create misc transactions in AR. When this is done all the functionality in CE can be utilised.

Miscellaneous transactions are misc receipts and misc payments.

Misc payments are handled as negative misc receipts in AR, rather than as payments in AP.

The Allow Reconciliation Accounting option must be enabled if you want to use a cash clearing account and create accounting entries for bank charges, errors, gain/losses. If not enabled, you can still reconcile payments in CE, but accounting entries will not be created in GL.

Cash Management System Parameters

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Select Set of Books and enter a date for the begin date.

Then check the following if required:

· Check Add Lines to Automatic Statements checkbox if you want to add lines to automatically loaded bank statements.

· Check Show Cleared Transactions checkbox if you want CE to display the cleared transactions that are available for reconciliation.

· Check Use Reconciliation Open Interface checkbox if you plan to use the open. interface to reconcile bank statement lines to transactions in external systems.

The following steps show you how to set up CE system parameters using the system parameters setup function. This is an example of a typical setup and options available:

· Select Setup. Then the System Parameters option.

· In the Set of Books field, specify the Set of Books name for CE transactions.

· In the Begin Date field, specify the date of the first bank statement entered.

· Check Show Cleared Transactions checkbox to display cleared transactions

available for reconciliation. Optional.

· Check Add Lines to Automatic Statements checkbox to add lines to automatically loaded bank statements. Optional.

· Check Use Reconciliation Open Interface checkbox to reconcile transactions in external systems. Optional .

· In the General region*, specify a tax code that applies to misc payments in the Liability field.

· Specify a tax code that applies to misc receipts in the Asset field.

· The Receivable Activity field is the default for the Misc Receipts window and the default receivable activity to which Auto-Reconciliation charges differences between the amount cleared and the original amount for remittance batches.

· In the Float Handling field, select Ignore if you want to reconcile statement lines with the effective dates later than the current date.

· Access the Automatic Reconciliation* region from the drop down list.

The Automatic Reconciliation region screen appears. You can accept the defaults if you wish.

· Then commit..

* The General parameters options are also used in the manual reconciliation windows and can be overridden.

* The Automatic reconciliation region has no effect when doing manual reconciliation.

Defining Bank Transaction Codes

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Auto-Reconciliation being used to load electronic bank statements.

CE requires transaction codes to be defined that are used by the bank.

This allows CE to identify the different transaction types on the statement, such as receipts, and payments. i.e:

· Misc Receipt

· Misc Payment

· NSF

· Payment

· Receipt

· Rejected

· Stopped

If you use a transaction code for both misc transactions and correcting statement errors, you can specify the sequence of matching.

Choose from the LOV to indicate how to use the bank transaction code.

· Misc

· Stmt

· Misc, Stmt

· Stmt, Misc

The following shows you how to define bank account transaction codes :

· Select Setup. Then: Bank Transaction Codes.

· Select the bank you require. Click the OK button.

· The Bank Transaction Codes window appears. In Type field select a transaction type for the transaction code you are defining.

· In Code Field, specify the code used by the bank. I.e. 100.

· In the Description field, specify a description for the transaction code you are defining. i.e. payment.

· Enter start and end dates.

· In the Float Days field, enter the number of days that CE will add to the statement date to create an effective date for the transactions.

· Optional, select a transaction source for payments and receipts transactions.

· Use the Matching Against field to determine the order of matching and the type of transactions to match if the transaction Type is Misc Receipt or Misc Payment.

· In the Correction Method field, select the correction method your bank uses when correcting errors.

· Select the Create checkbox if you want to create misc transactions for any payments or receipts reported on the bank statement when no transaction code is provided. If you select

the Create checkbox, specify the activity type and the payment method you want to assign to misc transactions.

· Commit.

Defining Automatic Reconciliation Parameters

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The automatic reconciliation parameters controls several aspects of Auto-Reconciliation, this allows reconciliation of bank statements automatically. These options have no effect on manual reconciliations.

The tolerances region includes a variance amount and a variance percent,they are used by Auto-Reconciliation to match bank statement lines from AR and AP. If a transaction amount falls within ranges defined in the tolerance region, plus or minus the reconciliation tolerance, a match is made.

The Tolerance Differences – AP field controls whether the Auto-Reconciliation posts differences to bank charges or errors account.

The Tolerance Differences – Foreign field controls how Auto-Reconciliation handles bank errors or differences that are caused by exchange rates from foreign currency transactions in a multi-currency bank account.

There are 3 ways to treat the tolerances:

Gain/Loss: which takes the difference as exchange rate gain or loss;

Charges/Errors: which handles differences as bank charges or a bank errors, and No Action: in this case no reconciliation will occur and the statement line will have a status of error.

Automatic document sequence numbers. CE creates the document number for the statement automatically. You can’t change an automatically assigned document number.

Loading Bank Statement Info

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To load bank statement information, including header information and line information, into CE select the Bank Statement Interface window and the Bank Statement Lines Interface window to load the information.

The table used is called :- CE_STATEMENT_HEADERS_INT_ALL

Validating payment information. The information loaded, including the bank statement header validation, control total validation, statement line validation, and multi-currency validation, go into the bank statement open interface tables.

If the data does not pass the validations and cannot be imported into the main tables the totals can modified, and then reconciled successfully.

The data can be imported and automatically reconciled at the same time.

It is just a case of navigating to the SRS window and submit a request for the Bank Statements Import and Auto-Reconciliation program.

The system generates the result and prints an Auto-Reconciliation Execution Report.

The following steps show you how to import a bank statement without Auto-Reconciliation in CE.

· Click the Bank Statement Import* option to request the report in SRS.

Click the OK button.

· The Parameters window appears. Specify the bank account number for the statement you want to import in the Bank Account Number field. Specify the range of statement numbers in the Statement Number From and To fields.

Enter dates for the Statement Date From and Statement Date To fields.

In the GL Date field, enter the GL date. Click the OK button.

* If Auto Reconciliation is required then select the Bank Statements Import and Auto-Reconciliation program

Interface errors occur for various reasons.

There are 3 common causes of bank statement interface errors:

Erroneous information in setup of CE, errors in bank transmission file, and more commonly problems with the SQL* Loader file.

Reviewing Bank Statement Errors

——————————–

The following steps show you how to review bank statement interface errors.

· Select Bank Reconciliation. Click the Bank Statement Interface option.

· Query the bank statement with the interface errors you want to review.

The applicable fields populate according to the account number you have specified. Click the Lines button to see the statement line detail.

· The Bank Statement Interface Lines window appears. Select the line with the error(s) review. Click the Errors button.

· The Bank Statement Interface Line Errors window appears, displaying the error message for the line selected. When finished reviewing the error messages, click the Done button.

Modifying the Statement Interface Table

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The following explains how to modify the bank statement interface tables.

· Select Bank Statement. Click Bank Statement Interface. Query the bank statement that requires modification. Edit the bank statement and header transaction information as necessary, including the control balances, in the Opening field.

· Edit the receipts in the Receipts field. Edit the payments in the Payments field. Edit the closing number in the Closing field. Click the Lines button.

· Bank Statement Interface Lines window appears. Edit the bank statement transaction information. CE allows the editing of the line number, transaction code, transaction number, and date.

· In the Amounts region, CE allows the editing of the transaction amount, bank charges, and original amount.

· In the Exchange region, CE allows the editing of the exchange rate information, including currency code, exchange rate type, date, and exchange rate.

· In the Reference region, CE allows the editing of the agent (customer or supplier), invoice number, and the agent bank account associated with each line.

· In the Description region, CE allows the editing of the effective date and description for each line.

· Commit.

Auto-Reconciliation and Manual Reconciliation

———————————————-

The Auto Reconciliation program fully matches AP AR GL and MISC transactions against bank statement lines if the transactions meet the following criteria:

· AR Remittance batches such as direct debit batches, the remittance batch deposit number or receipt batch name matches statement line transaction number, and the amount is within the tolerance.

· MISC Reversal corrections, the statement line has the same transaction number, same amount, and opposite transaction type (for example, misc receipt and misc payment)

· MISC Adjustment corrections, the statement line has the same transaction number, and has a transaction type of payment, receipt, misc payment, or misc receipt, and the net amount is within tolerance.

· AR Detail remittance transactions, NSF, and rejected transactions, the matching sequence is the same; match is against the invoice number and customer bank account, and then just the invoice number, and finally the

receipt number; the amount is within the tolerance.

· AR NSF or rejected transactions, the receipt must first be reversed in AR

· MISC Receipt number matches the statement line transaction number

· AR GL AP MISC Transaction currency is the same as the bank statement line currency

· AP Payment batches, such as EFT batches, the reference or payment batch name matches the statement line transaction number, and the amount is within tolerance.

· AP Detail payment transactions and stopped transactions, the matching sequence is the same; the program tries to match against the invoice number and supplier bank account, then just the invoice number, and finally the payment number; the amount is within the tolerance

· AP For stopped transactions, the payment must first be stopped or voided.

· GL Journal line is posted

· GL Journal line accounting flexfield matches the bank account Asset Accounting flexfield

· GL Journal line description matches the statement line transaction number

*Bank statements can be entered Manually see the CE manuals.

*Bank statements can also be updated even if they are reconciled by

using the review button The Auto-Reconciliation program does four validations, bank statement header validation, control total validation, statement line validation, and multi-currency validation. The program requires the imported bank statement header information has the bank account defined as an internal bank account. If a currency code is in the header, it must be the same as the currency code defined for the bank account in AP or AR.

There is an Auto-Reconciliation execution report.

It is printed automatically when the Auto-Reconciliation program is ran, and can be reviewed for all import validation errors for a statement or a specific statement line.

*After reconciling a payment, CE will generate journal entries as debit cash clearing accounts and credit cash accounts.

Bank statement lines must include an exchange rate when the transaction currency is foreign. Depending on the bank account currency, the Auto Reconciliation program handles statement line matching to transactions differently. If the bank account currency is foreign, the bank statement line amount must match the transaction line amount within the tolerance limit for automatic validation to be successful. If the difference exceeds the tolerance amount, CE displays an error message and manual reconciliation must take place.

The tolerance validation is done in two stages, firstly it converts the tolerance into the bank account currency using the bank statement exchange rate, and it verifies the difference between the statement line amount and the transaction amount is within the tolerance.

The second stage uses the original tolerance amount to compare the bank statement line amount with the transaction amount (functional currency), verifying again that the difference is within the tolerance.

The Auto Reconciliation program references the tolerances that have been defined for example.

The tolerances defined are: amount = GBP £70 and percent = 10%.

Run the Auto Reconciliation program, and it encounters a statement line with an amount of GBP £1,000. The program firstly calculates the tolerance percentage amount (10% of GBP £1,000 = GBP £100). The program selects the smallest of the amounts and the defined tolerance amount which is GBP £70.

The program then matches the statement line against a payment or receipt transaction in the range GBP £930 to GBP £1,070, which is GBP £1,000 plus or minus GBP £70.

Regardless of bank account and transaction currency, the tolerance amount in the system parameters is always in the functional currency.

NOTE : Reconciled transactions can also be unreconciled as can statement lines.

Control Total Validation

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Some banks supply statements that have control totals in the statement or account header for error checking . The bank statement header interface table has 7 control total columns. If you enter values in any of these, the Auto-Reconciliation uses the values for validation, except for CONTROL_BEGIN_BALANCE, which is the statement opening balance.

Other control total validations are:

· CONTROL_END_BALANCE the statement closing balance.

· CONTROL_TOTAL_DR the payment control total in the statement header this must match the total payment amount on the statement lines.

· CONTROL_TOTAL_CR the receipt control total in the statement header must match the total receipt amount on the statement lines.

· CONTROL_DR_LINE_COUNT the number of payment lines in the statement must match the payment line control total in the statement header.

· CONTROL_CR_LINE_COUNT the number of receipt lines in the statement must match the receipt line control total in the statement header

· CONTROL_LINE_COUNT the number of lines in the statement must match the line control total in the statement header

Statement Line Validation

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Auto-Reconciliation needs the imported bank statement line to pass these checks.

The currency code on the statement line must be defined in the system.

The bank transactions code must be defined.

The exchange rate type must be of a valid type defined.

The amount must be entered for the statement.

Multi-Currency Validation

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Auto-Reconciliation checks each statement line for valid currency, and exchange rate type. When a matching transaction is found during reconciliation several checks are made.

For transactions, the bank statement line currency must be the same as the transaction currency (the bank statement currency can differ).

For batches, all transactions in the batch must use the same currency and statement line currency as the batch currency.

For both transactions and batches, if User exchange rates, each transaction must include the exchange rate, and the rate type must be User.

If it is for predefined rates, such as Corporate or Spot, each transaction must include the rate type and exchange rate date.

Incorrect CE setup information can include wrong transaction codes, currency, or bank account information. The solution is update CE setup information and then run the Auto-Reconciliation Import program again.

For bank transmission errors, the solution is to obtain a correct transmission file from the bank or alternatively update the statement using the Bank Statement Interface window. For SQL Loader file problems, modify Loader file and then rerun the Auto-Reconciliation Import program.

In CE you can also create AR transactions and AP transactions and you can also reverse these transactions.

When NSF or rejected receipts appear you can handle them manually by reversing the receipt manually and then reconciling the reversed receipt.

When a stopped or voided payment is done then void the payment in AP to mark the supplier invoice as unpaid then reconcile the stopped/voided payment statement line to the voided payment

Automatic Clearing

——————-

You can use CE or Automatic Clearing to clear receipts, as well as payments using the future-dated payment method. If you use Automatic Clearing within AR, you can choose to clear remitted receipts after they have matured.

If you use Automatic Clearing to clear payments and receipts rather than using CE, the GL balance may not match CE reports.

In AP, a future dated payment instructs the bank to disburse funds to the supplier’s bank on specific dates. If you use the AP Automatic Clearing for Future Payments utility to clear future-dated payments

made with the future-dated payment method, AP performs the accounting for cash clearing. You can match payments cleared in this manner with bank statement lines.

CE and Multi-Org

—————-

For each operating unit you must set up a CE responsibility very similar to what is setup in AP.

Each responsibility is tied to a SOB and an operating unit.

FAQ

—–

Q. How do we treat a BAC’s payment that has been reconciled and then voided

AP three payments: £10,£20, £30

Bank statement1 £60

It has been reconciled in full.

Now need to void an amount of £10 therefore unreconcile £60 and reconcile £50 leaving £10 as unreconciled/available. Void payment of 10 ok.

Bank statement states the -£10 amount for the voided payment they have this as stopped and reconcile the voided amount in AP to the -£10.

Problem is cannot have the original unreconciled as stopped as it is part of the £60 how can this be reconciled ? There are lines on two statements so cannot contra each other?

A. The correct way this should have been dealt with in this situation is:

The voided element of -£10 on the bank statement should in fact be treated as an misc receipt. Then create a no tax invoice for £10 in AR and match this to the receipt of £10. The distribution can go to e.g. pay on a/c or suspense. Then in AP create an invoice for £10 use the same distribution as used for the AR invoice so they nett off to each other. Pay the invoice in AP as you would normally.

In this case as they voided the payment create a dummy statement.

It can then be reconciled using the stopped functionality.

Q Why are there no entries going to GL?

A Check they are using reconcilition accounting . Accounting entries below With Reconcilitaion Accounting enabled:-

One set of entries for the unreconciled transaction

DR liability

CR cash clearing

One set of entries for the reconciled transactions

DR cash clearing

CR cash

If Allow Reconciliation is not enabled, only one entry is created:

DR Accounts Payable

CR cash

Q Unable to select available Journal Entries to reconcile a bank Statement.

A You must define a bank account with default GL account codes.

One of which must be your cash account.

CE will only look for journals with the GL account code that matches

the cash account of the b

Posted in Cash Management, Oracle E-Business Applications, Oracle Financial | Leave a Comment »

Segment Security Rules FAQ Posted by Mahmoud Maher on January 2, 2011

Questions and Answers

1. I have defined a security rule and assigned it to my responsibilty, but is still does not work, why?

Make sure that you have enabled security at both the segemnt and value set levels, it must be enabled at both these levels to work. Also make sure you have switched out and back into theresponsibility.

2. My security rules don’t work for the Account Analysis and General Ledger reports in Release 11.0.3.

This functionality is available starting in Release 11i. In Releases 11 and lower, one cannot set security for standard reports. Security Rules will only limit users from a few functions (e.g. Account Inquiry, Budgets, Journal Entries, and FSGs). In addition,in Release 11i there is limiteduse of the security rule functionality for running standard reports.

It appears that your goal is to restrict users from submitting reports for a particular company, this cannot be accomplished using security rules.

3. In Rel 11i with the intercompany segment being used, is it possible to have a security rule on the balancing segment (company) without it affecting the intercompany segment, since they share the same value set?

Yes it is possible. You would enable security on the value set, but then on the flexfield segment (intercompany) you would not enable security.

4. Is there a way to assign different security rules to a responsibility based on the User ID?

You cannot apply different security rules to the same responsibility for different users based on the user ID. You will have to create a new responsibility and define its own security rules. Then you can assign the new responsibility to one of the users.

5. Can security rules be used to control the posting of journal entries?

Security rules apply only with regards to creation/modification of lines within a journal. They do not apply when the journal is posted.

6. Security rules don’t seem to work on all forms when performing a query.

Flexfield Value Security gives you the capability to restrict the set of values a user can use during data entry. With easy-to-define security rules and responsibility level control, you can quickly set up data entry security on your flexfield segments and report parameters.

Flexfield Value Security lets you determine who can use flexfield segment values and report parameter values. Based on your responsibility and access rules that you define, Flexfield Value Security limits what values you can enter in flexfield pop-up windows and report parameters.

Security rules for the Accounting Flexfield also restrict query access to segment values in the Account Inquiry, Funds Available, and Summary Account Inquiry windows. In these windows, you cannot query up any combination that contains a secure value. However in all other forms,you will be able to query up a value even if it is restricted to the user.

Reference : Oracle Applications Flexfield Guide Release 11, page 5-10.

7. Can Security Rules prevent users in one organization in the same set of books from adding Cross Validation Rules to another organization?

There is no way in the same set of books, to prevent users from one operating unit via security rules, from changing cross validation rules for another operating unit. The only way to do this would to be create a separate set of books for each operating unit. Since security rules prevent users from either viewing data or entering data in general, they do not pertain to set up issues such as creating cross validation rules.Therefore, the only other way to prevent one user from one organization from creating cross-validation rules to the other organization, when in the same set of books, would be to completely remove that menu function from the user.

8. Every Country has a Global Manager or User Responsibility to access Global SOB but it is supposed to limit users to their own Legal Entities. However, an Argentian journal can be posted by the Chilian user. How is this possible?

This is working as intended. Security rules will prohibit a responsibility from being able to ente certain values as well as prohibit the viewing of those values. However security rules will not prohibit the actions above because they are in the same set of books. The system does not determine if a journal has values in it that are blocked by security rules. If it did that, the

journal would appear as unbalanced.There would have to be an incredible amount of logic involved, which would further reduce performance, for the posting program to scan the journal for security rules first before posting. Posting does not take into consideration the rules, this is done at the time of journal entry.

9. Forgot to check the security enabled flag for each segment and it is not updateable. How do I correct this?

Check your Accounting Flexfield structure to see if it is frozen. Unfreeze the structure, then you should be able to enable Security for the Segment.

10. In General Ledger, a security rule of a parent with children was set up to include the parent and assigned to a responsibility. However it is not functioning properly.

The system allows the account the customer wanted but doesn’t disallow the ones that are children of the parent values excluded. Review note:175555.1 Key Flexfield Rollup Hierarchical Security not Working Properly.

11. Is it feasible to delete an Exclude statement in order to resolve a Security Rule issue?

The Security rule should not be modified by deleting an exclude or include as it may corrupt the rule. Instead, delete all rule lines (include and excludes), save and redefine the include and excludes. If the rule still doesn’t work, create a new rule and assign it to the responsibilities in place of the original rule.

12. What standard reports have security enabled in Release 11i?

Trial Balance, Account Analysis and General Ledger are the only standard reports in Release 11i for which security rules apply.

13. Is it recommended to use a universal Include when setting up rules?

It is recommended to start each security rule with a universal Include statement and then eliminate each value using Exclude statements.

14. What functions do security rules apply to?

Security rules apply to Account Inquiry, budgets, FSG’s and journal entry functions. In Release 11i, this also applies to several standard reports (listed previously). Please note, they do not apply to the posting of journals or the review of journals. When reviewing a journal withsecurity rules, the totals are still displayed, it is only the individual lines that are not visible. This is standard functionality.

15. What is Hierarchical Security?

When using ‘Heirarchical Security’. ‘a flex value is secured if one of it’s parent value is secured’.This feature combines Flex Value Security and Flex Value Hierarchy.


FSG Functional FAQ Posted by Mahmoud Maher on January 2, 2011


1. How do I find the latest FSG patch that is available?

For the General Ledger Patch List, on MetaLink, click on Knowledge…From The Knowledge Browser tab, quick find Note:159239.1.

2. Is there a way to suppress zero amounts on the FSG Report?

You cannot suppress individual zero amounts in FSG. However, when all the values in a row or column are zero, you can have FSG suppress them all. To do this, make sure the Display Zero option is unchecked on the appropriate Rows or Columns window.

3. How do you print credit amounts on the FSG Report as positive instead of negative numbers?

For a related row or column definition, check the Change Sign checkbox. Credit amounts for this row or column will now print as positive numbers. Negative credits will print as negative numbers. Note that this changes the sign for display purposes only.

4. Can I display account descriptions on the FSG Report in addition to the account segment values?

Yes. You simply have to define a Row Order, then, assign it to your report. In your Row Order, set the Account Display options of the account segments for which you want to print descriptions. Select Value and Description as your segment display method. Also, make sure that you set the printing width, so there is enough room to print both the segment value and the description.

5. Is there a limit on how large a FSG Report can be?

Yes. The column set width of an FSG report cannot exceed 255 characters. In release 11i, the column set width can exceed 255 characters. (However, while printing, there is still a limit of 255 characters.)

6. What is the profile option ‘FSG: Expand parent value’ used for?

This profile option controls the expansion of parent values when requesting summary balances. The following values are available to you:

Yes: FSG uses the rollup group to determine whether to expand a parent value into its child ranges. If the parent value belongs to a rollup group, FSG does not expand the parent value into its child ranges. If the parent value does not belong to a rollup group, FSG expands the parent value into its child ranges.

No: FSG uses the summary flag associated with the flexfield assignment to determine whether to expand a parent value into its child ranges. If the summary flag is set to Yes, FSG does not expand the parent value into its child ranges. If the summary flag is set to No, FSG expands the parent value into its child ranges.

The default value for this profile option is No.

Note:1012620.102 provides more information regarding this profile option.

7. I am trying to display budget amounts in my reports but they are not showing up or are incorrect. What is wrong?

Since Oracle GL allows you to define multiple budgets, you must indicate what budget you want displayed in the row or column. You do this by first assigning a Control Value in the Balance Control section of the Row or Column window. The control value is any numeric value. Next, you must tell FSG what budget relates to the Control Value. You do this in the Define Report form. When you define a control value for either your RowSet or Column Set in your report, the Control Value button will be activated. By selecting the Control Value button you can assign budgets to your control values.Another reason you may not be seeing your amounts is if you are using the YTD-Budget (FY End) amount type, but have not budgeted to every period in the fiscal year. See Note:1036437.6.Also, make sure you have defined your Amount Types, Offsets and Control Values in the Column Set or Row Set, but not both. Typically these are specified in the Column Set.

8. How do you enable Flexfield Security Rules for FSG?

First, you define security rules for specific account segment values. Then, you assign your security rules to specific responsibilities. Lastly, you set the profile option ‘FSG: Enforce Segment Value Security’ to YES.Flexfield value security has been enhanced in Release 11.5, with hierarchical security. Instead of having to create security rules for a range of segment values, you can assign security rules at the parent level and have the rules automatically apply to all of the child values within the parent hierarchy. To use this, choose the Security Type of Hierarchical for the value set, on the Value Sets form. See Note:138143.1 for more information.

9. How can you add/define/create your own new amount types in FSG reporting?

Oracle comes with seeded amount types, which can be specified in the Balance control region of a FSG row or column definition. You cannot create your own.

10. Where should the period offset and the amount type be specified?

The period offset and amount type must both be specified in the row set or both be specified in the column set. You cannot have a period offset in the row set and an amount type in the column set, or vice versa.

11. On a calculation column, can I enter an amount type?

You should not define rows or columns that contain both calculation information and an amount type. If you do, the amount type will override and this may cause errors.

12. Is there a quick and supported method of transferring FSGs between environments, so that users do not have to key them in twice?

Run the FSG Transfer program (under Report/Request/Standard) to copy report objects from one General Ledger database (or instance) to another. You can copy row sets, column sets, reports, report sets, content sets, row orders, display sets, and display groups.

Prerequisites- You or your System Administrator must define database links.- The chart of accounts in the set of books in your source database must be identical to the chart of accounts in the set of books in your target database.- Any currencies and sets of books referred to by the row sets and column sets being copied must exist in the target database.- Report details, such as budgets and encumbrance types, referred to by copied reports must exist in the target database.- You must be logged into General Ledger and connected to the target database.- The target and source apps releases must be the same. See Note <<1083689.6>> for more information.

If any of the prerequisites are nt met, you will not be able to use FSG Transfer to copy the report objects. You will have to enter them manually in the target set of books.

13. What FSG enhancements are introduced in Release 11i ?

Unlimited Width Reports.Oracle General Ledger now allows you to create FSG reports with an unlimited number of columns. FSG will pick the widest of the column set header or the total width of all the columns to determine the width of the report. However, while printing, there is still a limit of 255 characters.

Absolute Value Function in Reports

To ease reporting, you can now use the absolute value function in row set definitions to display amounts as positive numbers, regardless of their debit or credit balances. This function is helpful for defining income statements, balance sheets, and other financial reports in which amounts are generally displayed as positive numbers.

14. Can I remove the ‘No specific Company requested’ text from the FSG heading?

The text ‘No specific Company requested’ will appear as long as no content set is used for the report. A content set must be specified for this text not to appear. Depending on the content set parameters the actual segment value description or the text ‘No specific Company requested’ will appear. For example, when Display is set to ‘PE’ a separate report is generated for each value and the specific value’s description is displayed, rather than ‘No specific Company requested’.

This text will also change if you enter a Segment Override for Company (segment) at runtime on the Run Financial Reports form. By doing this, you are running the FSG for only the Company value you specified.

15. Can I remove the segment header descriptions from the top of the FSG reports?

The accounting flexfield segment headings (CO, REG, etc.) can be removed with the use of a Row Order. See Note:1037253.6 for instructions on how to do this.

16. Can I customize or move the 3 heading lines that appear at the top of the FSG (set of books, report name, period)?

The first line of the FSG report heading contains the set of books name. This information can not be changed.

The second line of the FSG report heading contains the report name. For Release 10, this is the Row Set name that is used in the FSG. For Release 11 and 11i, this report name is defined in the Report definition (Navigation = Reports/Define/Report).

The third line contains the period that the FSG is being run for. This can not be changed.

The date and time in the upper right corner indicates when the report was created. The page number appears here also. This can not be changed.

ADI can be used to publish the FSG report, using a theme that you customize to make some of these changes. See the Application Desktop Integrator User’s Guide for more information.

17. How can I display USD and STAT amounts on the same FSG report?

On the Define Rowset form:Make sure you have the following set up:STAT Accounts– Set the ‘Currency’ field to STAT for accounts that are STAT only.– Set the ‘Control Value’ field to 1 for accounts that are STAT.

USD Accounts– Set the ‘Currency’ field to USD.– Leave the ‘Control Value’ field blank for USD accounts.

On the Define Column Set form:Under Balance Control Option – Do not input any Currency or Control values (i.e. leave fields blank). (If you enter a Currency on the Column also, FSG will report 0 in intersection of the row and column.)

Note that the currency entered at runtime (specified at the report level) is used only for rows and columns to which you did not assign a currency when you defined your row and column sets.

18. How can I report on a multiple level account hierarchy in an FSG?

To report on Multiple Hierarchy levels (child, parent, grandparent, etc.) in FSGs you have to have as many sequences in the row set as the number of parents/grandparents/great-grandparents that you wish to report on.You can not report on all levels by defining a single row sequence. See Note:1014255.102 for more information on how to do this.

19. How can I define an FSG percentage calculation Column such as percent of sales?

When defining a row, you can enter a value in the ‘Percent of Row’ field. The value entered in this field is the sequence number of the row, that will be used as the denominator in the calculation of the percentage column.See Note:1014921.6 for detailed instructions.

20. Can an FSG output be created in PDF format?

This functionality is available in 11.5.10 but not earlier versions. Please see note:220761.1 for more information.>

21. What is the meaning of ‘n/m’ on my FSG?

The means ‘no meaning’. FSG displays this when there is a calculation that is attempting a divide by zero. You cannot remove this, or change it to any other value (other than changing the calculation itself so it doesn’t result in a divide by zero).

22. I used column set builder to set the width of the last column in my report. After saving and requerying the column set, the width has changed. Why?

The width of the last column can only be controlled through the format mask. Define the format mask of the last column to be as wide as the desired width of the column.

23. Can FSG reports and components be secured/protected so only certain people can modify or run them?

No. You can only restrict/protect the data that is reported on in the report. You cannot restrict access to the reports and components themselves.

24. How do segment overrides, content sets, account assignment ranges and display types work together?

For a detailed explanation, see Note:207779.1.

25. When hiding data using a Display Group/Set in FSG the underline under that data still appears.

The underline character is part of the format option and is not affected by the display set definition, which only hides the actual data. The work around is to remove the underline from the row definition prior to running the report.

26. I’m using a Content Set with a range of cost centers. There are some inactive cost centers within that range. How can I suppress the creation or printing of the reports for those inactive cost centers, or for disabled or inactive accounts?

There is no way to exclude particular values that are included in the range you defined in the content set, or in an account assignment range in a row or column set. You must define new ranges that do not include those inactive cost centers or accounts.

27. How can I define a column to be for a specific or constant period, such as January of the current year, or dynamically change the period?

This functionality is not available.FSG uses the period Offset, and the runtime period you enter, to determine which periods to report on. Use a negative number to report on periods prior to your runtime period, and a positive number to report on periods after your runtime period. For example, a column with an offset of 0 will contain amounts for the period you entered at runtime. A column with a -1 offset will contain amounts for the prior period, a -2 will contain amounts for a period 2 earlier than the runtime period. An offset of 1 will give you amounts for the period following the runtime period (providing that period has been opened before).

28. Why can some column sets be viewed/used with different sets of books and others cannot?

If account assignments have been defined in the column set, then that column set is only available to sets of books that use that same chart of accounts. If there are no account assignments in them, and the same chart of accounts (accounting flexfield structure) is used between sets of books, then they should be available to all of those sets of books.

29. How do I see the SQL code behind the FSG report?

The FSG reports are created from a program written in ‘C’ code, not from Oracle Reports, as is the case with standard reports. Many modules and tables are used to create reports based on the definition and component of a particular FSG. This would make looking at code for an FSG report (as you would a standard report) almost impossible. One approach is to turn the profile FSG: Message Detail to FULL and run the report. The logfile will contain some of the

SQL. A session level trace will provide all of the SQL. See Note:141278.1 for information on how to get the trace.

30. How do I show the YTD amount for the end of the fiscal year on an FSG?

In Release 11i, there is a patch available (2650861) that will allow you to use an amount type called YTD-Actual (FY End). Used without a period offset, FSG will give you the YTD balance for the fiscal year the report is run for. This amount type only pertains to the very last period of the current fiscal year and the status of that period must be Open or Closed. Current fiscal year means the year the period you are running the FSG for falls into.

If you use a period offset with the YTD-Actual (FY-End) amount type, and the resulting period falls into another fiscal year, it will get the year to date balance for that year. The offset is in whole year chunks so for example: -12 would be last year -24 the year before.

In release 11.0 and 10.7, you must still use the YTD-Actual amount type and the offset for the last period of the year.

31. Can I create an FSG in html format?

Not from the standard application. In the applications you have a choice of 3 output options: 1) Text, 2) Tab-delimited – for importing into a spreadsheet, or 3) Spreadsheet – for downloading to ADI.You can create an FSG in html format in ADI (Applications Desktop Integrator). In 11.5.10 FSG’s can now be published using xml formatting. Please see note:220761.1 for further information.

32. How can I run an FSG from the Standard Request Submission form?

Add the program ‘Program – Run Financial Statement Generator’ to your Request Group. See Note:1060806.6 for detailed instructions.>

33. When using a content set, sometimes the amounts are duplicated (doubled or tripled).

The values defined in a content set override the values defined in the row set account assignments. Depending on how your account assignments are structured, this may result in duplication of the account assignment ranges. See Note:147218.1 for an explanation and workaround.

34. How Can You Print A Parent Account Description In The Row Set ?

A Row Name has been specified but this is not printed on the report. This becomes the row identifier in the row calculations window. To display a parent account description, enter your description in the LINE ITEM field. This will be the description that is printed on the report output.

35. Can I make the same FSG report work for both my sets of books ?

No, currently this functionality does not exist. Enhancement request bug:812503 has been raised requesting this functionality. The workaround is to copy and modify the FSG report for each Set of books.

36. How do I find which FSG patches I have applied. ?

See Note:549289.1 How To Determine Which FSG Patches Have Been Applied

37. How can I increase the size of the description displayed on the report ?

>There are two ways you can increase the display size of the account description.- increase the size of the display width in the row order.- increase the POSITION of the description column in the column set.You will need to change the POSITION on all the other columns to allow for the increase. See also the size limitations in question 5 and question 20 above.

38. (R12) The Ledger List of Values on the Run Financial Reports form shows all possible ledgers. How can this be limited to only ledgers the responsibility should access?

The Data Access Set assigned to the Responsibility (via the profile GL: Data Access Set) controls which ledgers you can actually update or view data for.Even if there is a ledger name in a LOV, you should not be able to see the data for that ledger in the FSG if the Data Access Set does not have that access.

39. (R12) How can you report on a budget entered in a foreign currency?

Assign a control value to each of the Budget, Variance and Variance % columns. In the FSG Report Definition, assign the control value to the appropriate budget and currency.

Posted in FSG, General Ledger, Oracle E-Business Applications, Oracle Financial | Leave a Comment »

R12: How To View Reporting Sequences For Subledger Journals? Posted by Mahmoud Maher on January 1, 2011

Goal1. You have defined Sequencing- reporting for both subledger and GL journal entry - event GL periodclose.

After closing the period in GL, the ‘Create Reporting Sequence Number’ program is automatically launched and completed normally but when checking the reporting sequence

number for Subledger journals and GL journal entries – only the reporting sequence numbers for GL journal entries are shown and no reporting sequences for Subledger journals are available.

How to view the reporting sequence created and assigned to subledger journals?

SolutionThis is the intended functionality.For subledger journals you can see the reporting sequence in SLA level not in GL. For subledger journals GL can’t transfer the reporting sequence. Only manual journals which are created in GL will get the reporting sequence. For subledger journals you can see the reporting sequence in SLA level only .If however a subledger journal is reversed user will not get a reporting sequence because the reversals do not populate the xla_seq_je_headers_gt table that gets the sequence

In order to see the reporting sequences for subledger journals in SLA:

- Log in with your SLA responsibility;

- Check your setup according to ‘Oracle Subledger Accounting Implementation Guide Release 12′ – Chapter 7 ‘Reporting Sequence’- page 7-4 ‘Reporting Sequence Process Steps’ and following.

- Navigate to Subledger Journal Entries > Lines > make your query and see the transactions retrieved.

- In the ‘Transaction information’ area note the ‘ + Show additional information’ : unhide the information ; at this step you can see your accounting and reporting sequences numbers.

Note: In order to have the assigned reporting sequences used you have to:

- Check the ‘journal entry status’ of ‘Final’; draft entries are not assigned a reporting sequence;

- Check that the transactions are posted in GL;

- Check that the GL period has been closed and the automatically launched process ‘Create Reporting Sequence Number’ has completed normally;

- At the time you check your SLA reporting sequences numbers the period in GL has not been re-opened (the program erases the sequences that are assigned to the journal entries that belong to the reopened period).


R12 What are the Differences Between Accounting Sequencing and Reporting Sequencing? Posted by Mahmoud Maher on January 1, 2011

The accounting sequence is assigned to Subledger Accounting journal entries at the time that the journal entry is completed. The sequence is assigned in the completion date order using the GL date as the date criterion for determining the sequence to be used.

The reporting sequence is assigned to both Subledger Accounting journal entries and General Ledger journal entries when the General Ledger period is closed. This sequence is used by most of the legal reports required in some countries as the main sorting criterion to display the journal entries.Reporting sequence is optional.

These two sequences are not mutually exclusive and can coexist in the same journal entry.

Note: for more details-Oracle� Financials Implementation Guide (Part No. B16386-01) contains aseparate chapter on Accounting and Reporting Sequencing;-Oracle� Subledger Accounting Implementation Guide chapter on Reporting Sequencing;

Setup:

1 Go to Setup > Financials > Sequences >.Assign2.Select your General Ledger3.Select Sequence Entity : ‘Subledger Journal Entry’4.Select Sequence Event : ‘GL Period Close’: for fiscal reporting during accounting period close./‘Accounting’: for fiscal accounting of journal entries originating in the subledgers.5 .Select Sequence Entity : ‘GL Journal Entry’6. Select Sequence Event: ‘GL Period Close’: for fiscal reporting during accounting period close./‘Posting’ : for fiscal accounting of journal entries originating in the general ledger.


How Payables Payment Terms Logic Works ? Posted by Mahmoud Maher on December 8, 2010

How Payment Terms Work And What Is The Functionality Of Payment Terms When ?

The Payment Terms defined works on three basic fields on which you have entered/defined information.

The below combinations along with Invoice date defaults your Invoice Due Date.In the Define Payment terms screen

Method 1)---------Invoice Date and No of Days entered in Payment term Days field

a)Days

Say, Invoice date is 28-Nov-2001 then if you enter 60 days then due date willbe 27-Jan-2001. It means it calculates no of days from the Invoice date.

Method 2)---------Invoice Date + Cut Off day + Day of month with Months ahead.

1) Cut-off Day2) Day of Month with Months ahead

For example :

If you enter Payment Terms like this:Cut of day 31 (Last day of a Month) Means even though invoice is 28th 1st what so ever, it calculates from the last day of month.

Day of a month 29Months ahead 2 ( Two Months)

If invoice is dated 28-Nov-2001, with the above setup you get Due date as 29-Jan-2001 as due date.

It will always calculate from the End of Nov ie 30th Nov and Then it takes Two Months here it gives you always 29th of Second month from Invoice date.

ie

Invoice Date Due Date

28-Nov-2001 29-Jan-200228-Dec-2001 28-Feb-200228-Jan-2002 29-Mar-2002

So on and so forth.

Either you give 29th or 30th what so ever, once you give the Day of Month you will get only that day as due date after Months specified in the Months ahead field.

This is how application works and desinged to work.

Please refer documentation for the following terms

Cutoff Day.Days.Day of MonthMonths Ahead.

Further,

In case, you have two invoice payment terms which you are not able to define in AP and the due dates are not defaulting as expected;

The two terms are:-

(1) 60 DAYS END OF MONTH go to month end and add 60 daysE.G: invoice dated 28 NOV, due date is 29 JAN

(2) 90 DAYS END OF MONTH go to month end and add 90 days E.G: invoice dated 28 NOV, due date is 28 FEB

How would you define these?

The Payment Terms functionality does not support the above example


R12 How to get Payment Method Defaulted In Supplier Creation page? Posted by Mahmoud Maher on December 8, 2010

1. To ensure correct Setup, please perform the following:

a) Go to Setup > Payment > Payment Administrator > Payment Methods

b) Choose Payment Methods and then press Go To Task

c) Query for your Payment Method which you want to be defaulted and then press Go Button

d) Press Update (Not Update Usage Rules)

e) Under (Usage Rules) region you will find (Automatically assign Payment Method to all Payees) Check Box,Click on this Check Box to enable that option and then press Apply Button

2)Also follow the following setup steps in

a (1):

a) Go to Setup> Payment> Payment Administrator > Disbursement System Options and then press Go To Task

b) Under (Enterprise Level) region press View Settings

c) Under (Disbursement System Options: Enterprise-wide) you will find the option (Default Payment Method), press Update Button

d) There are two Options:

> Based Only on Payment Method Defaulting Rules Setup

> Override Defaulting Rules when Default Method Set for Payee

> Please choose the first option (Based Only on Payment Method Defaulting Rules Setup) and then press Apply Button 3) Retest your issue again and feed us back if your issue is resolved.

o

Archive for the ‘Multi-Org’ CategoryMulti-Org Advantages Posted by Mahmoud Maher on May 20, 2010

Product IntegrationSingle installation improves integration between products that required multipleinstallations and those that did not. Two integration examples are Oracle GeneralLedger’s drill down to Oracle Receivables and Oracle Payables mass addition toOracle Assets. In a multiple installation environment (MSOBA), these featuresoften worked only for one installation.Global Enterprise Management and VisibilityA core benefit of a single-instance is the ability to improve global enterprisemanagement and visibility to global enterprise conditions. Implementing globalbusiness processes through Oracle Applications and integrating information in aconsolidated manner enables organizations to provide a single, consistent face tocustomers. Moving to this architecture also positions organizations to takeadvantage of eBusiness initiatives like iProcurement, iStore and other eCommercefeatures of Release 11i.Oracle Applications Release 11i provides new features and functionality thatspecifically support global enterprise operations from a single instance of OracleApplications. Using multi-org features, plus functionality to meet legalrequirements in most countries around the world, a single installation and databaseinstance can support a company’s global needs. This advantage is specifically notavailable using MSOBA architecture and represents a major reason to migrate toRelease 11i.Cross-Organization FeaturesSingle installation enables a global view of enterprise information. Singleinstallation also allows for more sharing of setup data. When a product wasinstalled multiple times, some setup data were duplicated in each installation.Oracle Applications supports many cross-organization features that leverage thesingle installation architecture, including:· Automatically generate intercompany invoices with transfer pricing when yousell from one organization and ship from another.· Run selected reports at the operating unit, legal entity, or set of books level.· Define customers and suppliers in a global registry and secure customer andsupplier addresses by operating unit.

· Purchase products through one legal entity and receive them in another legalentity· Support any number of legal entities within a single installation of OracleApplicationsStrategic Planning for an Oracle Applications Instance Consolidation Project Page 2· Secure access to data so that users can access only the information that isrelevant to themMultiple Sets of Accounting BooksMulti-Org is designed to support many sets of books for accounting. A Set ofBooks is the highest level at which the financial reporting entities are segregated.Any entity that requires a unique chart of accounts, functional currency, or fiscalcalendar should utilize a different Set of Books. (This is a functional distinction,not a technical one) Prior to Multi-Org, the Set of Books was set at the site leveland this restriction drove companies to have multiple installations of theApplications looking at the same database instance to cover different reporting andtransaction needs.Application AdministrationSingle installation reduces the total time required to install and upgrade OracleApplications. It also simplifies the administration of grants and synonyms. Sinceeach product installation required grants and synonyms to link to other products,multiple installations meant maintenance of multiple sets of grants and synonyms.Use a single installation of any Oracle Applications product to support any numberof organizations, even if those organization use different sets of booksReduction in support and maintenance costsA consolidated environment reduces the total cost of ownership for your OracleApplications. This is achieved through the reduction in technical resources. If youhave several installations on one or many boxes there is an opportunity to reducemaintenance costs by consolidating. A consolidated model would eliminate thetask of keeping the installations in sync, thus improving quality of data, whilereducing hardware and support costs.It also reduces the cost for any subsequent upgrades. A consolidated instancewould thus enable a reduction of people and time needed to apply duplicate patchesand run AutoUpgrade. This would also accelerate the time it takes to complete theupgrade and reduce the number of resources involved.Data SecurityYou can limit users to information relevant to their organization. Multi-org offersthe ability to store all data under one database instance, while keeping thetransaction data separate and secure. It is like having one database with theconvenience of many logical databases embedded within it. As an example, youcan limit access for order administration clerks to sales orders associatedexclusively with their sales office.Inventory Organization Security by ResponsibilityYou can specify which inventory organizations are available to users in eachresponsibility. The Choose Inventory Organization window automatically limitsStrategic Planning for an Oracle Applications Instance Consolidation Project Page 3available inventory organizations to those authorized for the current responsibility.Thus there is no change from older MSOBA architecture to multi-org in security terms.ReportingOne specific benefit of multi-org is the ability to perform consolidated reportingacross the enterprise, allowing you to look at information with a global perspective.

A consolidated instance saves time in collecting information to support businessdecision-making. A consolidated instance provides consistent and better qualityinformation. It is faster so that an organization can be more responsive to the needsof the business. Greater flexibility for making financial adjustments can beachieved in a consolidated position with the ability to instantly impact globaldecisions throughout the company.

Product IntegrationSingle installation improves integration between products that required multipleinstallations and those that did not. Two integration examples are Oracle GeneralLedger’s drill down to Oracle Receivables and Oracle Payables mass addition toOracle Assets. In a multiple installation environment (MSOBA), these featuresoften worked only for one installation.Global Enterprise Management and VisibilityA core benefit of a single-instance is the ability to improve global enterprisemanagement and visibility to global enterprise conditions. Implementing globalbusiness processes through Oracle Applications and integrating information in aconsolidated manner enables organizations to provide a single, consistent face tocustomers. Moving to this architecture also positions organizations to takeadvantage of eBusiness initiatives like iProcurement, iStore and other eCommercefeatures of Release 11i.Oracle Applications Release 11i provides new features and functionality thatspecifically support global enterprise operations from a single instance of OracleApplications. Using multi-org features, plus functionality to meet legalrequirements in most countries around the world, a single installation and databaseinstance can support a company’s global needs. This advantage is specifically notavailable using MSOBA architecture and represents a major reason to migrate toRelease 11i.Cross-Organization FeaturesSingle installation enables a global view of enterprise information. Singleinstallation also allows for more sharing of setup data. When a product wasinstalled multiple times, some setup data were duplicated in each installation.Oracle Applications supports many cross-organization features that leverage thesingle installation architecture, including:· Automatically generate intercompany invoices with transfer pricing when yousell from one organization and ship from another.· Run selected reports at the operating unit, legal entity, or set of books level.· Define customers and suppliers in a global registry and secure customer andsupplier addresses by operating unit.· Purchase products through one legal entity and receive them in another legalentity· Support any number of legal entities within a single installation of OracleApplicationsStrategic Planning for an Oracle Applications Instance Consolidation Project Page 2· Secure access to data so that users can access only the information that isrelevant to themMultiple Sets of Accounting BooksMulti-Org is designed to support many sets of books for accounting. A Set ofBooks is the highest level at which the financial reporting entities are segregated.Any entity that requires a unique chart of accounts, functional currency, or fiscalcalendar should utilize a different Set of Books. (This is a functional distinction,not a technical one) Prior to Multi-Org, the Set of Books was set at the site leveland this restriction drove companies to have multiple installations of theApplications looking at the same database instance to cover different reporting andtransaction needs.Application AdministrationSingle installation reduces the total time required to install and upgrade OracleApplications. It also simplifies the administration of grants and synonyms. Sinceeach product installation required grants and synonyms to link to other products,multiple installations meant maintenance of multiple sets of grants and synonyms.Use a single installation of any Oracle Applications product to support any numberof organizations, even if those organization use different sets of booksReduction in support and maintenance costsA consolidated environment reduces the total cost of ownership for your OracleApplications. This is achieved through the reduction in technical resources. If youhave several installations on one or many boxes there is an opportunity to

reducemaintenance costs by consolidating. A consolidated model would eliminate thetask of keeping the installations in sync, thus improving quality of data, whilereducing hardware and support costs.It also reduces the cost for any subsequent upgrades. A consolidated instancewould thus enable a reduction of people and time needed to apply duplicate patchesand run AutoUpgrade. This would also accelerate the time it takes to complete theupgrade and reduce the number of resources involved.Data SecurityYou can limit users to information relevant to their organization. Multi-org offersthe ability to store all data under one database instance, while keeping thetransaction data separate and secure. It is like having one database with theconvenience of many logical databases embedded within it. As an example, youcan limit access for order administration clerks to sales orders associatedexclusively with their sales office.Inventory Organization Security by ResponsibilityYou can specify which inventory organizations are available to users in eachresponsibility. The Choose Inventory Organization window automatically limitsStrategic Planning for an Oracle Applications Instance Consolidation Project Page 3available inventory organizations to those authorized for the current responsibility.Thus there is no change from older MSOBA architecture to multi-org in securityterms.ReportingOne specific benefit of multi-org is the ability to perform consolidated reportingacross the enterprise, allowing you to look at information with a global perspective.A consolidated instance saves time in collecting information to support businessdecision-making. A consolidated instance provides consistent and better qualityinformation. It is faster so that an organization can be more responsive to the needsof the business. Greater flexibility for making financial adjustments can beachieved in a consolidated position with the ability to instantly impact globaldecisions throughout the company.

Posted in Multi-Org, Oracle E-Business Applications | Leave a Comment »

Multi-Org in Release 12 Posted by Mahmoud Maher on May 17, 2010

In the Multi-Org model of E-Business Suite 11i, there is a one-to-one relation between a responsibility and an operating unit. This approach has worked well over the years; however, there are some limitations because organizations sometimes want the ability to allow responsibilities to be able to access data from multiple operating units.For example, a large global organization might have a common shared service center for European operations where all European invoices are centrally processed.Additionally, there might be another shared service center for American operations. Let us presume all invoices received in Europe are scanned and placed in an electronic queue.The payables clerk working for the European shared service center can enter invoices for any operating unit within Europe. Each scanned image of the invoice will then be read by the shared service center operator and entered into theE-Business Suite using the Payables invoice screen.Different scanned images of invoices might correspond to different operating units such as France, the U.K., andAustria. If the payables clerk working in a shared service center is using E-Business Suite 11i, he or she will have to switch the responsibility each time an invoice from a different operating unit is keyed in, which is not ideal for efficient processing of transactions.Additionally in R11i Multi-Org model, a large organization will have to maintain several responsibilities. If a change has to be made to one responsibility, for example a menu exclusion, then such changes may have to be replicated across all

related responsibilities for different operating units.R12 overcomes these limitations by allowing you to attach multiple operating units to a responsibility.In R12, the new Multi-Org model is implemented using HRMS Organization Hierarchy and Security Profiles. In Oracle HRMS, it is possible to create an organization hierarchy that contains a tree-based nested structure of the organizationsand departments in a company.After that, a security profile can be created in Oracle HRMS to which the organization hierarchy can be attached. This security profile is then attached to a responsibility, which in turn has access to all organizations in the hierarchy.The diagram in Figure 4-2 illustrates this concept.

In the Multi-Org model of E-Business Suite 11i, there is a one-to-one relation betweena responsibility and an operating unit. This approach has worked well over the years;however, there are some limitations because organizations sometimes want the abilityto allow responsibilities to be able to access data from multiple operating units.For example, a large global organization might have a common shared servicecenter for European operations where all European invoices are centrally processed.Additionally, there might be another shared service center for American operations.Let us presume all invoices received in Europe are scanned and placed in anelectronic queue. The payables clerk working for the European shared service centercan enter invoices for any operating unit within Europe. Each scanned image of theinvoice will then be read by the shared service center operator and entered into theE-Business Suite using the Payables invoice screen. Different scanned images ofinvoices might correspond to different operating units such as France, the U.K., and Austria. If the payables clerk working in a shared service center is using E-BusinessSuite 11i, he or she will have to switch the responsibility each time an invoice froma different operating unit is keyed in, which is not ideal for efficient processing oftransactions.Additionally in R11i Multi-Org model, a large organization will have to maintain several responsibilities. If a change has to be made to one responsibility, forexample a menu exclusion, then such changes may have to be replicated across allrelated responsibilities for different operating units. R12 overcomes these limitations by allowing you to attach multiple operating units to a responsibility.In R12, the new Multi-Org model is implemented using HRMS OrganizationHierarchy and Security Profiles. In Oracle HRMS, it is possible to create anorganization hierarchy that contains a tree-based nested structure of the organizationsand departments in a company.After that, a security profile can be created in Oracle HRMS to which theorganization hierarchy can be attached. This security profile is then attached toa responsibility, which in turn has access to all organizations in the hierarchy.The diagram in Figure illustrates this concept.

Multi Org R12

Once the security profile has been defined, it can be attached to any responsibility using the profile option MO: Security Profile. This design approach overcomes the restriction of a one-to-one relationship between a responsibility and operating unit. If your implementation team does not set the profile MO: Security Profile in R12, then Multi-Org in R12 can be made to work exactly the same as in R11i by setting profile option Initialization SQL Statement – Custom to mo_global.init(‘S’,null);.

This new design is also known as MOAC (Multi-Org Access Control). In MOAC, more than one operating unit is accessible from a single responsibility. All the screens that operate on Multi-Org tables have an Operating Unit field. This is applicable to screens developed using both OA Framework and Oracle Forms. The value of the Operating Unit field is defaulted using MO: Default Operating Unit.

Posted in Multi-Org, Oracle E-Business Applications | 1 Comment »

How to Set up MULTI-ORG in Oracle Applications? Posted by Mahmoud Maher on December 12, 2009

Use a single installation of any Oracle Applications product to support any number of organizations, even if those organizations use different sets of books.

Support any number of legal entities within a single installation

Secure Access: You can assign users to particular organizations. This ensures accurate transactions in the correct operating unit.of Oracle Applications.

You can sell from one legal entity and ship from another, posting to each organization’s set of books.

You can enter purchase orders and assign for receipt any inventory organization that uses the same set of books.

You can support multiple organizations running any Oracle Applications product with a single installation. When you run any Oracle Applications product, you first choose an organization—eitherimplicitly by choosing a responsibility, or explicitly in a Choose Organization window. Each window and report then displays information for your organization only.

Each legal entity can have one or more balancing entities. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. Each user sees information only for their operating unit. To run any of these applications, you choose a responsibility associated with anorganization classified as an operating unit.

Legal Entities Post to a Set of Books Each organization classified as a legal entity identifies a set of books to post accounting transactions.

Operating Units Are Part of a Legal Entity Each organization classified as an operating unit is associated with a legal entity.

Inventory Organizations are Part of an Operating Unit Each organization classified as an inventory organization references an operating unit.

Inventory Organization Determines Items Available to Order Management The OM:Item Validation Organization profile option specifies the inventory organization that Order Management uses to validate items. Some inventory item attributes for Receivables and Order Management, including Tax Code and Sales Account, are specific to an operating unit or an accounting flexfield structure. Therefore, youshould define an item validation organization for each operating unit.

Inventory Organization Determines Items Available to Purchasing The inventory organization you specify in the financial options for each operating unit determines the items available in Purchasing. You can only choose an inventory organization that uses the same set of books as your operating unit.

Data Security You can limit users to information relevant to their organization. For example, you can limit access for order administration clerks to sales orders associated exclusively with their sales office.

Inventory Organization Security by Responsibility You can specify which inventory organizations are available to users in each responsibility. The Choose Inventory

Organization window automatically limits available inventory organizations to those authorized for the current responsibility.

Responsibility Determines Operating Unit Your responsibility determines which operating unit you access when you use Oracle Applications. When you use Oracle Payables, Receivables, Order Management and Shipping Execution, Purchasing, Projects, and Sales Compensation you see information that is relevant to your operating unit. All transactions you create are automatically assigned to your operating unit.Purchase and Receive Products Between Organizations Your purchase order operating unit and receiving inventory organization must share the same sets of books to receive against a purchase order.

Automatic Intercompany Sales Recognition Sales orders created and shipped from one legal entity to a different legal entity automatically generate an intercompany invoice to record a sale between the two organizations.

Posting Intercompany Invoices to Different Accounts You can define different accounts for Trade and Intercompany Cost of Goods Sold and Sales Revenue to eliminate intercompany profit.

These are the steps to follow when implementing the Multiple Organization support feature in Oracle Applications.1. Develop the Organization Structure2. Define Sets of Books3. Define Locations4. Define Business Groups (optional)5. Associate Responsibilities with Business Groups6. Define Organizations7. Define Organization Relationships8. Define Responsibilities9. Set MO: Operating Unit Profile Option10. Convert to Multiple Organization Architecture11. Change Order Management Profile Option12. Set Profile Options Specific to Operating Units13. Define Inventory Organization Security (optional)14. Implement the Applications Products15. Secure Balancing Segment Values by Legal Entity (optional)16. Run the Multi–Org Setup Validation Report (recommended)17. Implement Document Sequencing (optional)18. Define Intercompany Relations (optional)19. Set Top Reporting Level Profile Option (optional)20. Set Conflict Domains (optional)Step 1 Develop the Organization Structure A successful implementation of Multiple Organization support in Oracle Applications depends primarily on defining your organizational structure in the multi–level hierarchy used by Oracle Applications. The levels are:• Business groups• Accounting sets of books• Legal entities• Operating units

• Inventory organizationsIf your enterprise structure requires that you define a business group, you should define sets of books before business groups.

Step 3 Define Locations Oracle Applications products use locations for requisitions, receiving, shipping, billing, and employee assignments.

Step 4 Define Business Groups (optional) If you define a new business group instead of modifying the pre–defined business group, you need to set the Business Group profile option at the responsibility level for the new business group. Oracle Human Resources automatically creates a security profile with the business group name when you define a new business group.

You should define all your business groups before defining any other type of organization.

To define additional business groups:

1. Set the responsibility from which you define the organizations in the profile option HR: User Type to HR User, to get access to the Define Organizations window. This profile must be set for all responsibilities that use tables from Oracle Human Resources (for example, responsibilities used to define employees andorganizations).2. Define all of your business groups at this step from a responsibility. Do not define any new organizations or organization hierarchies until you have associated each business group with a responsibility. You do this by setting the HR: Business Group profile option to the business groups for each responsibility.

3. After you have correctly associated business groups to responsibilities, you enter business group setup information, such as additional organization information and business group classifications, to create the organization structure.

4. After you have correctly associated your business groups with a responsibility, sign off and sign on again using the correct responsibility for the business group you want to define. For example, if you have a U.S. business group and a U.K. business group, select the responsibility attached to the U.S. business group to define the U.S. organization structure.Note: Oracle Human Resources automatically creates a view all security profile with the business group name. This enables you to view all records for your business group.Note: Oracle Human Resources allows you to use a single responsibility security model by enabling the Security Group. This allows you to access more than one business group from a responsibility. You should not use the single responsibility model in Multiple Organization products.

Step 5 Associate Responsibilities with Business Groups (optional)Note: This section applies to you if you have multiple business groups, or if you do not choose to use the default business group provided by Oracle Applications.

If you have multiple business groups, you must associate each responsibility to one and only one business group. You associate a business group with a responsibility via the HR:Business Group system profile option. If you are upgrading to Multiple Organizations, you must also associate previously created responsibilities to the appropriate business group.

Step 6 Define OrganizationsUse the Define Organization window to define all your organizations. You can perform this step and the next step (Define Organization Relationships) at the same time. The steps are presented separately to emphasize the difference between the organizational entity and the role it plays in your organizational structure.

_ To define legal entities, operating units, and inventory organizations:1. Log in to the responsibility associated with the business group for which you are defining an organization.2. Define a legal entity. It is then automatically attached to the correct business group.3. Define operating units.4. Define your inventory organizations for each operating unit that will have an inventory organization.Note: Do not define the inventory parameters at this point.5. If you have more than one business group, switch to the responsibility associated with the other business group and continue to define your organization structure.

Step 7 Define Organization Relationships Use the Define Organization window to define organizationrelationships by assigning classifications to each organization. Attributes of certain classifications relate organizations and the roles they play. You can classify an organization as any combination of legal entity, operating unit, and inventory organization. Specify your organization classifications in the following order:1. Legal Entities Attach organizations designated as legal entities to a set of books. You must also specify a location in the Define Organization window. Use the Define Location window to define locations foryour legal entities.2. Operating units Attach the operating units to the correct set of books and legal entity.3. Inventory organizations Attach the inventory organizations to the correct operating unit,legal entity, and set of books. If you have more than one business group, change to the responsibilityassociated with the other business group and continue defining your organization classification.

Classification Information Type Required AttributesBusiness Group Business group information if Human Resources is installed. Otherwise, None.Short Name, Employee/Applicant Numbering, Key Flexfield Structures, Default Legislation Code, and CurrencyGRE/Legal Entity Legal Entity Accounting Set of Books, LocationOperating Unit Operating Unit Information Legal Entity, Set of BooksInventory Organization Accounting Information Set of Books, Legal Entity, Operating UnitSpecial Considerations for Inventory Organizations All the inventory organizations in the above chart have been set up with the minimal amount of information to enable them in the Multiple Organization environment. This minimal amount is detailed in the table below. If you plan to implement Oracle Inventory, you need to follow the setup procedures for that product.

For a standalone Oracle Purchasing installation (without OracleInventory), you must specify the following minimum information:

1 Accounting information : Set of books, legal entity, operating unit2 Receiving information : Three–character organization code,prefix serial (no dummy)3 Inventory information : All required accounts

You must define the control options and account defaults for one inventory organization, the item master organization. Then you can easily assign items to other inventory organization without recreating all the item information. Use the Organization Parameter window to assign inventory organizations to the item master. The item master organization uses itself as the item master.

There is no functional or technical difference between the item master organization and other inventory organizations. However, we recommend that you limit the item master to just an item definition organization. If you set up new inventory organizations in the future, you can assign the new items to only the item master and the new inventory organization.

Step 8 Define Responsibilities Use the Define Responsibility window to define responsibilities for each operating unit by application. When you sign on to Oracle Applications, the responsibility you choose determines the data, forms, menus, reports, and concurrent programs you can access.

Step 9 Set MO: Operating Unit Profile Option Oracle Applications uses the profile option MO: Operating Unit to link an operating unit to a responsibility. You must set this profile option foreach responsibility.

After you choose your responsibility, there is an initialization routine that reads the values for all profile options assigned to that responsibility,

Posted







Check),

6. Use the Maintenance Wizard for the upgrade.7. If possible, implement the most current version of R12 (i.e., R12.0.4 — see





How Payables Payment Terms Logic Works ? Posted by Mahmoud Maher on December 8, 2010

How Payment Terms Work And What Is The Functionality Of Payment Terms When ?

The Payment Terms defined works on three basic fields on which you have entered/defined information.The below combinations along with Invoice date defaults your Invoice Due Date.In the Define Payment terms screen

Method 1)---------Invoice Date and No of Days entered in Payment term Days field

a)Days

Say, Invoice date is 28-Nov-2001 then if you enter 60 days then due date willbe 27-Jan-2001. It means it calculates no of days from the Invoice date.

Method 2)---------Invoice Date + Cut Off day + Day of month with Months ahead.

1) Cut-off Day2) Day of Month with Months ahead

For example :

If you enter Payment Terms like this:Cut of day 31 (Last day of a Month) Means even though invoice is 28th 1st what so ever, it calculates from the last day of month.

Day of a month 29

Months ahead 2 ( Two Months)

If invoice is dated 28-Nov-2001, with the above setup you get Due date as 29-Jan-2001 as due date.

It will always calculate from the End of Nov ie 30th Nov and Then it takes Two Months here it gives you always 29th of Second month from Invoice date.

ie

Invoice Date Due Date

28-Nov-2001 29-Jan-200228-Dec-2001 28-Feb-200228-Jan-2002 29-Mar-2002

So on and so forth.

Either you give 29th or 30th what so ever, once you give the Day of Month you will get only that day as due date after Months specified in the Months ahead field.

This is how application works and desinged to work.

Please refer documentation for the following terms

Cutoff Day.Days.Day of MonthMonths Ahead.

Further,In case, you have two invoice payment terms which you are not able to define in AP and the due dates are not defaulting as expected;

The two terms are:-

(1) 60 DAYS END OF MONTH go to month end and add 60 daysE.G: invoice dated 28 NOV, due date is 29 JAN

(2) 90 DAYS END OF MONTH go to month end and add 90 days E.G: invoice dated 28 NOV, due date is 28 FEB

How would you define these?

The Payment Terms functionality does not support the above example


R12 How to get Payment Method Defaulted In Supplier Creation page? Posted by Mahmoud Maher on December 8, 2010

1. To ensure correct Setup, please perform the following:

a) Go to Setup > Payment > Payment Administrator > Payment Methods

b) Choose Payment Methods and then press Go To Task

c) Query for your Payment Method which you want to be defaulted and then press Go Button

d) Press Update (Not Update Usage Rules)

e) Under (Usage Rules) region you will find (Automatically assign Payment Method to all Payees) Check Box,Click on this Check Box to enable that option and then press Apply Button

2)Also follow the following setup steps in

a (1):

a) Go to Setup> Payment> Payment Administrator > Disbursement System Options and then press Go To Task

b) Under (Enterprise Level) region press View Settings

c) Under (Disbursement System Options: Enterprise-wide) you will find the option (Default Payment Method), press Update Button

d) There are two Options:

> Based Only on Payment Method Defaulting Rules Setup

> Override Defaulting Rules when Default Method Set for Payee

> Please choose the first option (Based Only on Payment Method Defaulting Rules Setup) and then press Apply Button 3) Retest your issue again and feed us back if your issue is resolved.


iRececivables Uptake Of Oracle Payment Posted by Mahmoud Maher on December 5, 2010

About the Integration:Oracle Payments is a new product in release 12. The product known as iPayment will no longer exist in release 12, however all functionality that existed in it is contained within Oracle Payments.

The objective of the new product is to give any deploying company a highly configurable and robust solution to disburse and receive payments. Oracle Payments is a fundamental part of

the Oracle Applications architecture, and is provided with multiple products that require support for payment processing services.

Oracle Payments provides the infrastructure needed to connect other products with third party payment systems and financial institutions. The product supports a number of payment features. Some features support just disbursement, some just capture, and other features are common to both.

In iReceivables we can pay for the customers invoices . After selecting the payment method ( Bank Transfer / Credit Card Payment) a receipt would be created in AR . In earlier releases for the capture of funds the iPayments extensions were used .iReceivables would now call the Oracle Payment API’s for the funds capture. This is entirely in the background and there are no visible changes in the iReceivables user interface because of this integration.

Questions and Answers1) What has changed?

1. The receipt class set up (in AR) has changed requiring the Oracle Payments ‘Payment Method’ to be attached to this kind of payments.

2. Payment attributes of transactions will be stored in a centralized transaction payment-extension entity owned by Oracle Payments.

3. In release 12, Oracle Payments owns the data model where all third party payment instruments are stored (these are instruments like customer credit cards and supplier bank accounts).

2) What happens during the Transaction Entry and Authorization ?

A) During the Transaction EntryThe following are captured in iReceivables during the transaction entry ( paying the Invoice in iReceivables) for the funds capture.

Payment method Payment instrument Payment attributes

These values are passed on to Oracle Payments before the Authorization & Settlement API’s areCalled.The transaction authorization information is stored in Payments and linked with the extension entity, this isno longer stored in AR tables.

B) During Authorization Oracle Payments mandates that authorization is invoked before a transaction can be settled in Oracle Receivables. Oracle Payments will enforce that the settled amount is equal to or less than the authorized amount.

Based on the payment method passed to the Authorize API, Oracle Payments will perform different functions that depend on the nature of that payment method. For example, for payment methods in the credit card category, Oracle Payments will attempt to validate the credit card and reserve the transaction amounts for settlement. For payment methods in the bank account transfer category, Oracle Payments will not attempt to reserve the funds, but will try to validate the bank account information.

Flow Chart :

1.Create Payee

(Customer)—>

2.Create Transaction

(Pay the Invoice)Receivables / iReceivables

—->

3.Authorize Transaction —> 4.Settle

TransactionOracle Payments

3) What is the set up required ?

In Oracle Payments:A (funds capture) payment method may be set up or a seeded payment method used. It is required for funds capture within Oracle Payments to set up a funds capture process profile, a payment system, and a payee (the definition of the internal organization that will receive the funds, also known as the first party payee).

Set up Oracle Payments, if you intend to use the Pay Invoice function for creditcards or for bank account transfers using the ACH network.

In Receivables:Define Receipt Class and Payment Method

If you are using the Pay Invoice function, define at least one receipt class and paymentmethod for each iReceivables payment instrument that you intend to use:• Bank account transfers using Receivables direct debit.• Credit card payments using Payments.• ACH bank account transfers using Payments.

In iReceivables:Go the iReceivable Setup Responcibility > System Parameters and select the ‘Credit Card Receipt Method’ and‘Bank Account Payment Method’ defined above . These would default to the receipts created from iReceivables.

Note:iReceivables does not support cross-currency payments. Though a user can still pay invoices with a credit cardor bank account that has a different currency from that of the invoice, the receipt created in iReceivableswill have the same currency as the invoice.

4) What are the Oracle Payment API’s used ?

Name FunctionIBY_FNDCPT_COMMON_PUB Common structures and constants for all funds capture APIs

IBY_FNDCPT_SETUP_PUB Set-up APIs for funds capture entities- payer, payment channels, instrument assignments, etc.

IBY_FNDCPT_TRXN_PUB Funds capture transactional APIsIBY_EXT_BANKACCT_PUB External bank account APIsIBY_CREDITCARD_PKG Create, Update, Check if it exists and Querying attributes.

Posted in Accounts Payables, Accounts Receivables, Oracle E-Business Applications, Oracle Financial | Leave a Comment »

How to disable Create Online Accounting in Payables Posted by Mahmoud Maher on November 2, 2010

(1) Log on to System Administrator Responsibility (2) Navigate Applications->Menu (3) Query up Menu “AP_APXINWKB_MENU” (4) In the child records of AP_APXINWKB_MENU, you should see “Invoice Accounting” (5) Uncheck the grant checkbox for “Invoice Accounting”. (6) Log on to Payables Responsibility (7) Create a invoice and approve it. (8) Click on the Actions button. (9) You should see “Online Accounting” checkbox disabled.

Posted in Accounts Payables, General Ledger, Oracle E-Business Applications, Oracle Financial | 3 Comments »

R12 Internet Expenses FAQs Posted by Mahmoud Maher on October 23, 2010

Internet Expenses

1. Why isn’t the Tax Code Defaulting on the Details Page in Internet Expenses?

– To implement the solution, please execute the following steps: 1. Login to a payables manager responsibility for the Operating Unit with this issue. -Navigate: Setup -> Tax -> E-Business Tax Home 2. For Task Name ‘Create Application Tax Options’, click ‘Go To Task’ -Click ‘Create’ -Enter the Operating Unit -Enter Application Name ‘Internet Expenses’ 3.

Enter the Defaulting Order -Defaulting Order 1 should be ‘Expense Report Template’ -Apply 4. Ensure Defaulting Order Use Status is ‘Active’ 5. Bounce the Apache server

2. Why is the Expense Report Rejected by Expense Report Export Due to the Error ‘Supplier Type Is Invalid’?

– To implement the solution, please execute the following steps:: 1. Login to a Payables Manager responsibility 2. Navigate: Setup -> Lookups -> Purchasing 3. Query Type ‘VENDOR TYPE’ 4. Ensure Code ‘EMPLOYEE’ is not end-dated and is enabled.

3. Why is the Employee Created Automatically as Supplier Even Though the Option is Unchecked?

Cause: Bug 6632886 R12: AUTOMATIC CREATION OF EMPLOYEE AS SUPPLIER OPTION IS IGNORED — To implement the solution, please execute the following steps:: One-off patch 6745049 includes the fix for Bug 6632886 R12: AUTOMATIC CREATION OF EMPLOYEE AS SUPPLIER OPTION IS IGNORED. Refer to the patch readme for complete pre-requisite information. (This patch is available through controlled release. Please contact support for assistance with obtaining the patch.) Alternately apply the latest Rup patch identified in Note 423541.1.

4. Why does Expense Report Export Program Fail Due to Ora-06510: Apps.Ap_web_export_er?

Cause: The issue is caused because one expense report was rejected with “No Exchange Rate”. To implement the solution, please execute the following steps: 1. Define a valid exchange rate for the rejected expense report date and currency. 2. Re-run Expense Report Export program. 3. Migrate the solution as appropriate to other environments.

5. Why isn’t the Custom Calculate Amount Called when Returning to Cash and Other Expenses Page?

Cause: Bug 6862323 12.0.4 – CALCULATE AMOUNT CLIENT EXTENSION WITH POLICY SCHEDULE NOT WORKING — To implement the solution, please execute the following steps: 1. The fix for this bug is included in one-off Patch 6862323 R12.OIE.A: Calculate Amount client extension with policy schedule not working. Refer to the patch readme for pre-requisite information. (This patch is available through controlled release. Please contact support for assistance with obtaining the patch.) 2. Bounce the Apache server after the patch is applied.

6. Why is the APXXXEER GL Account on First Line Nulled when Moving to Second Line?

Cause: Bug 6153249 Account is spacing out after first entry in manual expense report. The fix for this bug is included in APXXXEER.fmb 120.106 / 120.101.12000000.5, available in the latest Rup patch identified in Note 423541.1.

7. Why does the Oie-Allocations Project Expenditure Org Field Appear to be Limited to 30 Char?

Cause: Bug 6135815 R12 OIE-ALLOCATIONS. PROJECT EXPENDITURE ORGANIZATION FIELD LIMITED TO 30 CHARS The fix for this bug is included in Patch 6251856.

8. Why isn’t the Pay Group from the Expense Reports Tab of Payables Options used for Automatically Created Suppliers?

Cause: Bug 5890829 ISSUE WITH EXPENSE REPORT SUPPLIER SETUP. Due to bug 5890829, when a Supplier is created automatically for an Employee by the Expense Report Export program, the Supplier is being created with the Pay Group from ‘Payables System Setup’ instead of from the Expense Reports tab of the Payables Options form. — To implement the solution, please execute the following steps: The fix for this bug is included in one-off Patch 5890829 12.OIE.A: PAYGROUP AND PAYMENT TERMS ARE NOT BEING DEFAULTED CORRECTLY DURING AUTOMATIC CREATION OF SUPPLIER. Please review the patch readme for complete information.

9. Why isn’t Definition Taxcodeid Of Type Attribute Found In Cashandotherlinesvo?

Cause: unpublished Bug 6147311 Error Page Upon Press Next To Cash And Other Expenses Page The fix for this bug is included in CashAndOtherListCO.java 120.63.12000000.2 and CashAndOtherListCO.java 120.64 This bug fixed in R12.OIE.A.delta.3, patch 6250306. (Please contact support for assistance with obtaining the patch.) Workaround: Do not personalize Tax related items in the personalization page. Disable self service personalization, log into application and remove all personalization related to Tax code.

Posted in iExpense, Oracle E-Business Applications, Oracle Financial | Leave a Comment »

Difference between Match and Quick Match Posted by Mahmoud Maher on October 17, 2010

PO Default :

Enter PO Default as the invoice type if you know th purchase order you want to match to, but you do not know to which purchase order shipments or distributions you want to match. When you enter a PO Default invoice in the Invoice Workbench, Payables prompts you to enter the purchase order number and automatically enters the supplier name, supplier number, supplier site, and the purchase order currency for the invoice currency. When you choose the Match button,Payables will retrieve all purchase order shipments associated with the specified purchase order. You can then match to any shipment or distribution.

Quick Match:

Enter Quick Match as the invoice type if you want to match an invoice to all shipments on a purchase order. When you enter a Quick Match invoice in the Invoice Workbench, Payables

prompts you to enter the purchase order number and automatically enters the supplier name, supplier number,supplier site, and the purchase order currency for the invoice currency. When you choose the Match button, Payables automatically matches to each shipment. You can choose to complete the match or override the matching information. Read the rest of this entry »


How Does the Landed Cost Management Impacts the Accounting Flow in a Procure To Pay Cycle Posted by Mahmoud Maher on September 10, 2010

What are the accounting entries in a Procure to Pay cycle when the PO shipment is enabled for Landed Cost Management?

1. Receive the PO with estimated landed cost calculated- Receiving Inspection a/c DR @ Estimated Landed Cost- AP Accrual a/c CR @ PO Price inclusive of Non-Recoverable tax- Landed Cost Absorption a/c CR @ (Estimated Landed cost – PO Price inclusive of Non-Recoverable tax) (This a/c is defined in Receiving options)

These accounting entries can be viewed from Receiving Transaction summary > Transactions > Tools > View Accounting

These entries get created in rcv_receiving_sub_ledger

2. Deliver the PO to Inventory destination

For Standard Costing organization- Material Valuation a/c DR @ Std Cost- Receiving Inspection a/c CR @ Estimated Landed Cost- Purchase Price Variance a/c DR @ difference between Std Cost and Estimated Landed Cost

For Average Costing organization– Material Valuation a/c DR @ Estimated Landed Cost- Receiving Inspection a/c CR @ Estimated Landed Cost

These entries can be viewed from Inventory > Material Transactions > Distributions These entries get created in mtl_transaction_accounts

3. Invoice validated and actual landed cost calculated

Once the Actual Landed Cost is calculated, LCM will populate this information in cst_lc_adj_interface with rcv_transaction_id corresponding to the receipt to which the invoice is matched. Then the adjustment entries would get created as given below on running the Landed Cost Adjustment Processor

Landed cost Adjustment – Receiving - Receiving Inspection a/c DR @ difference between Actual LC and Estimated LC- Landed Cost Absorption a/c CR @ difference between Actual LC and Estimated LC

Landed cost Adjustment – Delivery (Standard Costing)- Receiving Inspection a/c CR @ difference between Actual LC and Estimated LC- Purchase Price Variance a/c DR @ difference between Actual LC and Estimated LC



Landed cost Adjustment – Delivery (Average Costing)- Receiving Inspection a/c CR @ difference between Actual LC and Estimated LC- Landed Cost Absorption a/c DR @ difference between Actual LC and Estimated LC

Average Cost Update (Average Costing)- Material Valuation a/c DR @ difference between Actual LC and Estimated LC- Landed Cost Absorption a/c CR @ difference between Actual LC and Estimated LC

If this Average cost update happens for updating the item cost with the difference between Actual and Estimated landed cost for an item which has 0 or negative on-hand quantity, then the accounting entries would be as follows:

- Material Valuation a/c DR @ 0- Landed Cost Absorption a/c CR @ difference between Actual LC and Estimated LC- Landed Cost Variance a/c DR @ difference between Actual LC and Estimated LC (This a/c is defined inventory > Set up > Organization > Parameters)

These entries can be viewed from Inventory > Material Transactions > Distributions These entries get created in mtl_transaction_accounts The link between the Receiving transaction and Average Cost update is done through

txn_source_line_id. Rcv_transaction_id of deliver transaction is stamped as txn_source_line_id in mtl_material_transactions for the LCM adjustment transaction which has the transaction type as Average Cost Update.

4. Create accounting for item invoice

- AP Accrual a/c DR @ PO Price- Tax a/c DR @ tax rate- Liability a/c CR @ Invoice Price including tax- LCM:Invoice Price Variance a/c DR @ difference between PO Price and Invoice Price (This IPV a/c is defined in Receiving options)- LCM:Exchange Rate Variance a/c DR @ difference between receipt exchange rate and Invoice exchange rate (This ERV a/c is defined in Receiving options)

5. Create accounting for charge invoice

- Default Charge a/c DR @ invoice price (This charge a/c is defined in Receiving options)- Liability a/c CR @ invoice price

6. Perform Return transaction or negative correction after invoice is accounted and actual landed cost is calculated

Return to Vendor /Negative Correction- Receiving Inspection a/c CR @ Actual Landed Cost- AP Accrual a/c DR @ PO Price + Non-Recoverable Tax- Landed Cost Absorption a/c DR (Actual Landed Cost – {PO Price+Non-Recoverable Tax})



Return to Receiving/Negative Correction (Standard Costing)- Material Valuation a/c CR @ Std Cost- Receiving Inspection a/c DR @ Actual Landed Cost- Purchase Price Variance a/c CR @ difference between Std cost and Actual Landed Cost

Return to Receiving/Negative Correction (Average Costing)- Material Valuation a/c CR @ Actual Landed Cost- Receiving Inspection a/c DR @ Actual Landed Cost

These entries can be viewed from Inventory > Material Transactions > Distributions These entries get created in mtl_transaction_accounts

7. Raise a Debit Note

- AP Accrual a/c CR @ PO Price- Tax CR @ tax rate- Liability a/c DR @ Invoice Price including tax- Invoice Price Variance a/c CR @ difference between PO price and Invoice Price

Note:

1. Estimated and Actual Landed Cost are always inclusive of PO price and Non-Recoverable tax.2. Landed Cost Absorption account need not be having zero balance at the end of this procure to pay cycle in LCM enabled organization. It will be zero only if default charge a/c defined in Receiving options is same as the landed cost absorption a/c and Actual landed cost is same as the Estimated landed cost.3. Accounting entries for Expense POs and Shopfloor destination POs has no impact as Landed Cost Management is not applicable for Purchase Orders with Expense and Shopfloor destination.4. Landed Cost Management has no impact on the Encumbrance Accounting as the PO gets reserved at PO price and it gets reversed at PO price only even though the actual charge account get hit at landed cost.5. Retroactive Pricing is not supported in LCM enabled organization and hence retroactive price update program will not create the retroactive price adjustment entries in Receiving subledger for the receiving transactions created.

Posted in Accounts Payables, General Ledger, Landed Cost, Oracle E-Business Applications, Oracle Financial, Oracle Inventory, Oracle Purchasing | Leave a Comment »

Release 12.1.1 New Features in Oracle Landed Cost Management Posted by Mahmoud Maher on September 10, 2010

Overview

Oracle’s Landed Cost Management application is a new product released on EBS r.12.1.Landed Cost Management enables organizations to gain insight into all of the “real”costs associated with acquiring products including broker, terminal, insurance, and transportation fees as well as duties and taxes. These costs are initially estimated and updated with actual amounts as they become known allocating them to shipments, orders, and products. Cost methods and inventory valuations are accurately maintained providing better visibility into an individual product’s profitability and an organization’s outstanding exposure. This data provides better insight for product forecasting and budgeting and provides clear evidence of the detailed accumulation of expenses for regulatory requirements and reporting.

Features

1. Charge ManagementMany of the charges that apply to landed costs can be complicated in their application, maintenance, and ongoing tracking. These charges are received in a variety of formats at different points during a fulfillment process. These points include product creation, sourcing, order creation, shipping, receiving, and invoicing. Organizing and tracking these charges as soon as they are incurred is key to a company fully understanding their outstanding liabilities.

Oracle Landed Cost Management collects an unlimited number of estimated charges and allows users to configure how charges should be applied to a shipment line, a group of lines within a shipment, or an entire shipment. It applies these charges based on weight, volume, quantity, or the value of the items being traded. These charges can be categorized by different cost factors, which will ultimately govern the behavior in how they are included in a total landed cost calculation. Once actual amounts are received, Charge Management records the new value for comparison with the earlier estimates and sends adjustments to backoffice applications.

2. Advanced Pricing for Charge TemplatesWhen organizations try to obtain estimates for a particular charge, they can typically identify standard business rules for when these charges should apply. Oracle’s Landed Cost Management application allows users to enter lists of estimated charges and conditions as to when these charges should apply by using Advanced Pricing. This enables a template of charges to automatically be applied to a receipt. It removes the need for a charge reference spreadsheet or document often found in organizations dealing with complex supply chains and minimizes error prone steps of manually entering charges during a transaction. Once these estimated costs are applied by Advanced Pricing, users have the ability to verify and update them via Oracle Landed

Cost Management’s Charge Management functionality. Ultimately, Oracle Landed Cost Management uses these components to calculate the estimated landed cost.

3. Landed Cost CalculationMost organizations struggle to find the “real” costs required to take a product to market, to source a product overseas, or to do business with a particular vendor or customer.Knowing the total actual landed cost of goods provides powerful insight in today’s competitive global markets. When companies use this landed cost information strategically, they can control overall product margin and optimize profitability. Some companies can only estimate this landed cost at best, while others can calculate estimated or actual costs. Often times, this is done in a semi-automated fashion in different places, making it difficult to compare estimates with actuals.The Oracle Landed Cost Management engine provides the ability to calculate the estimated landed cost based on charges manually assigned and automatically allocated based on the configuration in the charge management repository. It recalculates applicable taxes and can be configured to exclude recoverable tax amounts. It also calculates the actual landed costs by prorating the actual invoices and proportional taxes to obtain the variances between what was estimated and what was charged. Cost components summed in the calculation remain stored at the most granular level for detailed tracking of charge amounts while variances are updated to the appropriate accounts.

4. Product Cost DashboardFinancial flows do not mirror physical supply chain transactional flows. Landed cost management helps to link these two flows together and provides visibility and traceability from one to the other. With Landed Cost Management’s dashboard pages, companies can see the real time accrual updates for a particular receipt or shipment.They can validate the accuracy of a supplier’s estimate by comparing estimated and actual costs and can see the percentage of a particular cost component for a particular item. Additionally, users can make use of all the flexible Oracle and E-Business Suite tools in order to meet their own customized reporting requirements.

5. Tax RecoveryMany countries impose high tariffs on items as they pass through the supply chain. This can sometimes reach into the double digits. As a result, tax recoverability becomes extremely important when organizations are making sourcing decisions and automating inbound flows. Oracle Landed Cost Management factors in tax recoverable amounts in the landed cost calculation, so that estimated and actual landed cost calculations do not overstate the true tax costs.

6. Integration to EBS Supply Chain and BackofficeAlmost all organizations struggle to provide their backoffice systems visibility into estimates of accrued liabilities that are then updated with actual amounts when they become known. This is particularly the case when organizations have a large portion of their trade done across borders or have a complex supply chain. Oracle’s Landed Cost Management is integrated with Oracle E-Business Suite’s financial and supply chain applications to provide this visibility and make implementation straightforward. Oracle Landed Cost Management provides the estimated landed cost to E-Business Suite Inventory Receiving, which then automatically forwards it on to E-Business Suite Cost Management module. Once actual costs are obtained and shared with Accounts Payable, variances are effectively communicated to E-Business Suite Cost Management module.

6.1. Procurement IntegrationProcurement Information is often the baseline information used to itemize expected shipment or receiving lines on which extended supply chain charges will be applied. Landed Cost Management provides visibility into E-Business Suite Procurement data in order to build expected shipments for charge application and subsequent landed cost estimation calculations. When manually entering expected shipments the reference information provided by Procurement saves time and decreases errors that might occur without automated access to this information. Once available in Landed Cost Management, expected values received from procurement such as quantity and price can be edited for estimated cost calculation purposes. Furthermore, all the necessary data is provided to help arrive at an accurate three way match once aninvoice for a PO line or charge is entered into Accounts Payable.

6.2. Receiving IntegrationIt is difficult to gain insight into charges associated with the acquisition of items through an extended supply chain. Often, organizations are not aware of them until an invoice is received. Companies need better visibility into these charges. Additionally, many regions require that all expenses be accounted for at anitem/product level upon receipt. In order to comply with these requirements and provide an accurate calculation of product related expenses, these extended costs need to be estimated and applied to an item at the time of receipt.Oracle’s Landed Cost Management’s integration with EBS Inventory’s Receiving module enables Receiving to view LCM’s estimated shipments and receive against them. It further calls LCM for a total cost estimation calculation for all receipts whether they originate in LCM or in Receiving itself. These estimations are then forwarded to E-Business Suite Cost Management module in order to update inventory valuations and accounting.

6.3. Cost Management IntegrationWhen organizations are able to estimate landed costs, they often do not communicate those estimates to their backoffice system. This is because they lack an automated method to update these estimates with actual values once they are received. This prevents them from fully utilizing the estimated information in their reporting and decision making processes.After actual values are received and the true landed cost is calculated in Landed Cost Management, any variances between the actual and the estimate are determined.Those variances are updated to E-Business Suite Cost Management module which in turn updates the proper accounts and valuation.

6.4. Accounts Payable IntegrationFew Accounts Payable applications provide a mechanism to apply and match an unlimited number of charges to a particular procured item line or group of lines.This means that accurate actual landed cost calculations might be difficult to automatically calculate. Additionally, this prevents tying an actual charge back to any record of an earlier estimated landed cost calculation.Oracle Accounts Payable allows for unlimited numbers of charges to be entered and applied to procured line items and allows line items to be applied and associate to recovered line items. This information is forwarded to Landed Cost Management which in turn calculates the Actual Landed Cost. These values are compared with earlier estimates to determine if a variance should be communicated to Costing and ultimately to the General Ledger.

Posted in Accounts Payables, Landed Cost, Oracle E-Business Applications, Oracle Financial, Oracle Inventory, Oracle Purchasing | Leave a Comment »

Part III : Impact of SLA on Journal Import in General Ledger – Setups related to Journal Import Posted by Mahmoud Maher on August 31, 2010

Part III : Impact of SLA on Journal Import in General Ledger – Setups related to Journal Import

1. Journal Import can be run in Summary or Detail mode. This can be set for each application, as per the requirement. By default this is set to “Summarize by GL Period”, but can be changed as per the requirement. The setup can be changed from:• General Ledger responsibility• Financials -> Accounting Setup Manager -> Accounting Setups• Query for the Ledger being used• Update Accounting Options• Select update for “Subledger Accounting Options”• “Update Accounting Options” for the Application• Here there is an option “General Ledger Journal Entry Summarization”, which can be set to following values:i. Summarize by GL Date (Journal Import will create summary journals based on Acccounting Date)ii. No Summarization (Journal Import will create journals in Detail mode)iii. Summarize by GL Period (Journal Import will create summary journals based on Period to which the Accounting Date falls)Thus the option “General Ledger Journal Entry Summarization” will determine if the Import for the application is being done in Detail or Summary mode.

2. Prior to Release 12, it was needed that the Journal Import should be run in the same language as the language, which was used to transfer data to GL_INTERFACE. Though this is not much relevant now (the transfer and journal import are triggered together); still Journal Import can be made independent of the language. This can be achieved by running journal import using the Source and Category Key. Generally the columns user_je_source_name and user_je_category_name in gl_interface, correspond to the columns GL_JE_SOURCES.user_je_source_name and GL_JE_CATEGORIES.user_je_category_name respectively. These values change for the different language and thus making journal import language-dependent. However while defining the sources (General Ledger Responsibility : Setup -> Journal -> Source), if the option “Import Using Key” is selected, then import refers to GL_JE_SOURCES.je_source_key and GL_JE_CATEGORIES.je_category_key. These being the Key values are common across languages and hence journal import becomes language independent.

3. While running Journal Import from General Ledger responsibility, the LOV of Ledger appears provided there is data in the table GL_INTERFACE for the ledger and the Data Access Set attached to the responsibility has either Full or Read/Write access to the Ledger.

Journal -> Import -> Run

LOV for Ledger.

In case a different Interface table is being used, the LOV will check for the data in GL_INTERFACE_CONTROL instead of GL_INTERFACE.

4. Data Access Sets do apply to Journal Import too. To be able to import data, one should have either Full or Read/Write Access to the ledger and all the Balancing Segment Values for which data is populated in GL_INTERFACE.

In case one does not have access to the Ledger at all, the LOV for Ledger will not appear in Journal -> Import -> Run screen and hence he will not be able to submit Journal Import.

If there are multiple balancing segments in the data in GL_INTERFACE, and the responsibility has access to a few and not to others, then you will be able to run Journal Import but it will complete in Warning and data will not be imported. Error shown in the Journal Import Execution report would be:

EM29 : You do not have access to this ledger and account

combination.


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1 Votes






Check),6. Use the Maintenance Wizard for the upgrade.7. If possible, implement the most current version of R12 (i.e., R12.0.4 — see




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Cash Management is designed to manage and control cash cycle.

This allows you to enter bank statements and reconcile the statement transactions against payments in Accounts Payable (AP), receipts in Accounts Receivable (AR), and journal entries in General Ledger. Cash Management (CE) can also reconcile payments and receipts from external/legacy systems. CE can also create and reconcile misc. transactions to record bank transaction entries not entered in AP or AR.

Integration with AR and AP

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You use CE to reverse, clear, reconcile receipts,and create misc transactions for bank transactions not entered in AP or AR.

All these functions are shared and integrated with AR.

You can only use all the CE functions when AP and AR are fully installed.

You must have AR fully installed if you want to record MISC payments.

If you use CE with AP and AR, you must define the system parameters, such as banks, cash clearing, bank charges, and bank errors in AP.

Then define system parameters, such as remittance and cash accounts for each bank, and create misc transactions in AR. When this is done all the functionality in CE can be utilised.

Miscellaneous transactions are misc receipts and misc payments.

Misc payments are handled as negative misc receipts in AR, rather than as payments in AP.

The Allow Reconciliation Accounting option must be enabled if you want to use a cash clearing account and create accounting entries for bank charges, errors, gain/losses. If not enabled, you can still reconcile payments in CE, but accounting entries will not be created in GL.

Cash Management System Parameters

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Select Set of Books and enter a date for the begin date.

Then check the following if required:

· Check Add Lines to Automatic Statements checkbox if you want to add lines to automatically loaded bank statements.

· Check Show Cleared Transactions checkbox if you want CE to display the cleared transactions that are available for reconciliation.

· Check Use Reconciliation Open Interface checkbox if you plan to use the open. interface to reconcile bank statement lines to transactions in external systems.

The following steps show you how to set up CE system parameters using the system parameters setup function. This is an example of a typical setup and options available:

· Select Setup. Then the System Parameters option.

· In the Set of Books field, specify the Set of Books name for CE transactions.

· In the Begin Date field, specify the date of the first bank statement entered.

· Check Show Cleared Transactions checkbox to display cleared transactions

available for reconciliation. Optional.

· Check Add Lines to Automatic Statements checkbox to add lines to automatically loaded bank statements. Optional.

· Check Use Reconciliation Open Interface checkbox to reconcile transactions in external systems. Optional .

· In the General region*, specify a tax code that applies to misc payments in the Liability field.

· Specify a tax code that applies to misc receipts in the Asset field.

· The Receivable Activity field is the default for the Misc Receipts window and the default receivable activity to which Auto-Reconciliation charges differences between the amount cleared and the original amount for remittance batches.

· In the Float Handling field, select Ignore if you want to reconcile statement lines with the effective dates later than the current date.

· Access the Automatic Reconciliation* region from the drop down list.

The Automatic Reconciliation region screen appears. You can accept the defaults if you wish.

· Then commit..

* The General parameters options are also used in the manual reconciliation windows and can be overridden.

* The Automatic reconciliation region has no effect when doing manual reconciliation.

Defining Bank Transaction Codes

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Auto-Reconciliation being used to load electronic bank statements.

CE requires transaction codes to be defined that are used by the bank.

This allows CE to identify the different transaction types on the statement, such as receipts, and payments. i.e:

· Misc Receipt

· Misc Payment

· NSF

· Payment

· Receipt

· Rejected

· Stopped

If you use a transaction code for both misc transactions and correcting statement errors, you can specify the sequence of matching.

Choose from the LOV to indicate how to use the bank transaction code.

· Misc

· Stmt

· Misc, Stmt

· Stmt, Misc

The following shows you how to define bank account transaction codes :

· Select Setup. Then: Bank Transaction Codes.

· Select the bank you require. Click the OK button.

· The Bank Transaction Codes window appears. In Type field select a transaction type for the transaction code you are defining.

· In Code Field, specify the code used by the bank. I.e. 100.

· In the Description field, specify a description for the transaction code you are defining. i.e. payment.

· Enter start and end dates.

· In the Float Days field, enter the number of days that CE will add to the statement date to create an effective date for the transactions.

· Optional, select a transaction source for payments and receipts transactions.

· Use the Matching Against field to determine the order of matching and the type of transactions to match if the transaction Type is Misc Receipt or Misc Payment.

· In the Correction Method field, select the correction method your bank uses when correcting errors.

· Select the Create checkbox if you want to create misc transactions for any payments or receipts reported on the bank statement when no transaction code is provided. If you select the Create checkbox, specify the activity type and the payment method you want to assign to misc transactions.

· Commit.

Defining Automatic Reconciliation Parameters

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The automatic reconciliation parameters controls several aspects of Auto-Reconciliation, this allows reconciliation of bank statements automatically. These options have no effect on manual reconciliations.

The tolerances region includes a variance amount and a variance percent,they are used by Auto-Reconciliation to match bank statement lines from AR and AP. If a transaction amount falls within ranges defined in the tolerance region, plus or minus the reconciliation tolerance, a match is made.

The Tolerance Differences – AP field controls whether the Auto-Reconciliation posts differences to bank charges or errors account.

The Tolerance Differences – Foreign field controls how Auto-Reconciliation handles bank errors or differences that are caused by exchange rates from foreign currency transactions in a multi-currency bank account.

There are 3 ways to treat the tolerances:

Gain/Loss: which takes the difference as exchange rate gain or loss;

Charges/Errors: which handles differences as bank charges or a bank errors, and No Action: in this case no reconciliation will occur and the statement line will have a status of error.

Automatic document sequence numbers. CE creates the document number for the statement automatically. You can’t change an automatically assigned document number.

Loading Bank Statement Info

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To load bank statement information, including header information and line information, into CE select the Bank Statement Interface window and the Bank Statement Lines Interface window to load the information.

The table used is called :- CE_STATEMENT_HEADERS_INT_ALL

Validating payment information. The information loaded, including the bank statement header validation, control total validation, statement line validation, and multi-currency validation, go into the bank statement open interface tables.

If the data does not pass the validations and cannot be imported into the main tables the totals can modified, and then reconciled successfully.

The data can be imported and automatically reconciled at the same time.

It is just a case of navigating to the SRS window and submit a request for the Bank Statements Import and Auto-Reconciliation program.

The system generates the result and prints an Auto-Reconciliation Execution Report.

The following steps show you how to import a bank statement without Auto-Reconciliation in CE.

· Click the Bank Statement Import* option to request the report in SRS.

Click the OK button.

· The Parameters window appears. Specify the bank account number for the statement you want to import in the Bank Account Number field. Specify the range of statement numbers in the Statement Number From and To fields.

Enter dates for the Statement Date From and Statement Date To fields.

In the GL Date field, enter the GL date. Click the OK button.

* If Auto Reconciliation is required then select the Bank Statements Import and Auto-Reconciliation program

Interface errors occur for various reasons.

There are 3 common causes of bank statement interface errors:

Erroneous information in setup of CE, errors in bank transmission file, and more commonly problems with the SQL* Loader file.

Reviewing Bank Statement Errors

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The following steps show you how to review bank statement interface errors.

· Select Bank Reconciliation. Click the Bank Statement Interface option.

· Query the bank statement with the interface errors you want to review.

The applicable fields populate according to the account number you have specified. Click the Lines button to see the statement line detail.

· The Bank Statement Interface Lines window appears. Select the line with the error(s) review. Click the Errors button.

· The Bank Statement Interface Line Errors window appears, displaying the error message for the line selected. When finished reviewing the error messages, click the Done button.

Modifying the Statement Interface Table

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The following explains how to modify the bank statement interface tables.

· Select Bank Statement. Click Bank Statement Interface. Query the bank statement that requires modification. Edit the bank statement and header transaction information as necessary, including the control balances, in the Opening field.

· Edit the receipts in the Receipts field. Edit the payments in the Payments field. Edit the closing number in the Closing field. Click the Lines button.

· Bank Statement Interface Lines window appears. Edit the bank statement transaction information. CE allows the editing of the line number, transaction code, transaction number, and date.

· In the Amounts region, CE allows the editing of the transaction amount, bank charges, and original amount.

· In the Exchange region, CE allows the editing of the exchange rate information, including currency code, exchange rate type, date, and exchange rate.

· In the Reference region, CE allows the editing of the agent (customer or supplier), invoice number, and the agent bank account associated with each line.

· In the Description region, CE allows the editing of the effective date and description for each line.

· Commit.

Auto-Reconciliation and Manual Reconciliation

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The Auto Reconciliation program fully matches AP AR GL and MISC transactions against bank statement lines if the transactions meet the following criteria:

· AR Remittance batches such as direct debit batches, the remittance batch deposit number or receipt batch name matches statement line transaction number, and the amount is within the tolerance.

· MISC Reversal corrections, the statement line has the same transaction number, same amount, and opposite transaction type (for example, misc receipt and misc payment)

· MISC Adjustment corrections, the statement line has the same transaction number, and has a transaction type of payment, receipt, misc payment, or misc receipt, and the net amount is within tolerance.

· AR Detail remittance transactions, NSF, and rejected transactions, the matching sequence is the same; match is against the invoice number and customer bank account, and then just the invoice number, and finally the

receipt number; the amount is within the tolerance.

· AR NSF or rejected transactions, the receipt must first be reversed in AR

· MISC Receipt number matches the statement line transaction number

· AR GL AP MISC Transaction currency is the same as the bank statement line currency

· AP Payment batches, such as EFT batches, the reference or payment batch name matches the statement line transaction number, and the amount is within tolerance.

· AP Detail payment transactions and stopped transactions, the matching sequence is the same; the program tries to match against the invoice number and supplier bank account, then just the invoice number, and finally the payment number; the amount is within the tolerance

· AP For stopped transactions, the payment must first be stopped or voided.

· GL Journal line is posted

· GL Journal line accounting flexfield matches the bank account Asset Accounting flexfield

· GL Journal line description matches the statement line transaction number

*Bank statements can be entered Manually see the CE manuals.

*Bank statements can also be updated even if they are reconciled by

using the review button The Auto-Reconciliation program does four validations, bank statement header validation, control total validation, statement line validation, and multi-currency validation. The program requires the imported bank statement header information has the bank account defined as an internal bank account. If a currency code is in the header, it must be the same as the currency code defined for the bank account in AP or AR.

There is an Auto-Reconciliation execution report.

It is printed automatically when the Auto-Reconciliation program is ran, and can be reviewed for all import validation errors for a statement or a specific statement line.

*After reconciling a payment, CE will generate journal entries as debit cash clearing accounts and credit cash accounts.

Bank statement lines must include an exchange rate when the transaction currency is foreign. Depending on the bank account currency, the Auto Reconciliation program handles statement line matching to transactions differently. If the bank account currency is foreign, the bank statement line amount must match the transaction line amount within the tolerance limit for automatic validation to be successful. If the difference exceeds the tolerance amount, CE displays an error message and manual reconciliation must take place.

The tolerance validation is done in two stages, firstly it converts the tolerance into the bank account currency using the bank statement exchange rate, and it verifies the difference between the statement line amount and the transaction amount is within the tolerance.

The second stage uses the original tolerance amount to compare the bank statement line amount with the transaction amount (functional currency), verifying again that the difference is within the tolerance.

The Auto Reconciliation program references the tolerances that have been defined for example.

The tolerances defined are: amount = GBP £70 and percent = 10%.

Run the Auto Reconciliation program, and it encounters a statement line with an amount of GBP £1,000. The program firstly calculates the tolerance percentage amount (10% of GBP £1,000 = GBP £100). The program selects the smallest of the amounts and the defined tolerance amount which is GBP £70.

The program then matches the statement line against a payment or receipt transaction in the range GBP £930 to GBP £1,070, which is GBP £1,000 plus or minus GBP £70.

Regardless of bank account and transaction currency, the tolerance amount in the system parameters is always in the functional currency.

NOTE : Reconciled transactions can also be unreconciled as can statement lines.

Control Total Validation

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Some banks supply statements that have control totals in the statement or account header for error checking . The bank statement header interface table has 7 control total columns. If you enter values in any of these, the Auto-Reconciliation uses the values for validation, except for CONTROL_BEGIN_BALANCE, which is the statement opening balance.

Other control total validations are:

· CONTROL_END_BALANCE the statement closing balance.

· CONTROL_TOTAL_DR the payment control total in the statement header this must match the total payment amount on the statement lines.

· CONTROL_TOTAL_CR the receipt control total in the statement header must match the total receipt amount on the statement lines.

· CONTROL_DR_LINE_COUNT the number of payment lines in the statement must match the payment line control total in the statement header.

· CONTROL_CR_LINE_COUNT the number of receipt lines in the statement must match the receipt line control total in the statement header

· CONTROL_LINE_COUNT the number of lines in the statement must match the line control total in the statement header

Statement Line Validation

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Auto-Reconciliation needs the imported bank statement line to pass these checks.

The currency code on the statement line must be defined in the system.

The bank transactions code must be defined.

The exchange rate type must be of a valid type defined.

The amount must be entered for the statement.

Multi-Currency Validation

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Auto-Reconciliation checks each statement line for valid currency, and exchange rate type. When a matching transaction is found during reconciliation several checks are made.

For transactions, the bank statement line currency must be the same as the transaction currency (the bank statement currency can differ).

For batches, all transactions in the batch must use the same currency and statement line currency as the batch currency.

For both transactions and batches, if User exchange rates, each transaction must include the exchange rate, and the rate type must be User.

If it is for predefined rates, such as Corporate or Spot, each transaction must include the rate type and exchange rate date.

Incorrect CE setup information can include wrong transaction codes, currency, or bank account information. The solution is update CE setup information and then run the Auto-Reconciliation Import program again.

For bank transmission errors, the solution is to obtain a correct transmission file from the bank or alternatively update the statement using the Bank Statement Interface window. For SQL Loader file problems, modify Loader file and then rerun the Auto-Reconciliation Import program.

In CE you can also create AR transactions and AP transactions and you can also reverse these transactions.

When NSF or rejected receipts appear you can handle them manually by reversing the receipt manually and then reconciling the reversed receipt.

When a stopped or voided payment is done then void the payment in AP to mark the supplier invoice as unpaid then reconcile the stopped/voided payment statement line to the voided payment

Automatic Clearing

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You can use CE or Automatic Clearing to clear receipts, as well as payments using the future-dated payment method. If you use Automatic Clearing within AR, you can choose to clear remitted receipts after they have matured.

If you use Automatic Clearing to clear payments and receipts rather than using CE, the GL balance may not match CE reports.

In AP, a future dated payment instructs the bank to disburse funds to the supplier’s bank on specific dates. If you use the AP Automatic Clearing for Future Payments utility to clear future-dated payments

made with the future-dated payment method, AP performs the accounting for cash clearing. You can match payments cleared in this manner with bank statement lines.

CE and Multi-Org

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For each operating unit you must set up a CE responsibility very similar to what is setup in AP.

Each responsibility is tied to a SOB and an operating unit.

FAQ

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Q. How do we treat a BAC’s payment that has been reconciled and then voided

AP three payments: £10,£20, £30

Bank statement1 £60

It has been reconciled in full.

Now need to void an amount of £10 therefore unreconcile £60 and reconcile £50 leaving £10 as unreconciled/available. Void payment of 10 ok.

Bank statement states the -£10 amount for the voided payment they have this as stopped and reconcile the voided amount in AP to the -£10.

Problem is cannot have the original unreconciled as stopped as it is part of the £60 how can this be reconciled ? There are lines on two statements so cannot contra each other?

A. The correct way this should have been dealt with in this situation is:

The voided element of -£10 on the bank statement should in fact be treated as an misc receipt. Then create a no tax invoice for £10 in AR and match this to the receipt of £10. The distribution can go to e.g. pay on a/c or suspense. Then in AP create an invoice for £10 use the same distribution as used for the AR invoice so they nett off to each other. Pay the invoice in AP as you would normally.

In this case as they voided the payment create a dummy statement.

It can then be reconciled using the stopped functionality.

Q Why are there no entries going to GL?

A Check they are using reconcilition accounting . Accounting entries below With Reconcilitaion Accounting enabled:-

One set of entries for the unreconciled transaction

DR liability

CR cash clearing

One set of entries for the reconciled transactions

DR cash clearing

CR cash

If Allow Reconciliation is not enabled, only one entry is created:

DR Accounts Payable

CR cash

Q Unable to select available Journal Entries to reconcile a bank Statement.

A You must define a bank account with default GL account codes.

One of which must be your cash account.

CE will only look for journals with the GL account code that matches

the cash account of the b

ned a security rule and assigned it to my responsibilty, but is still does not work, why?



This functionality is available starting in Release 11i. In Releases 11 and lower, one cannot set security for standard reports. Security Rules will only limit users from a few functions (e.g. Account Inquiry, Budgets, Journal Entries, and FSGs). In addition,in Release 11i there is

limiteduse of the security rule functionality for running standard reports.














There is no way in the same set of books, to prevent users from one operating unit via security rules, from changing cross validation rules for another operating unit. The only way

to do this would to be create a separate set of books for each operating unit. Since security rules prevent users from either viewing data or entering data in general, they do not pertain to set up issues such as creating cross validation rules.Therefore, the only other way to prevent one user from one organization from creating cross-validation rules to the other organization, when in the same set of books, would be to completely remove that menu function from the user.


This is working as intended. Security rules will prohibit a responsibility from being able to ente certain values as well as prohibit the viewing of those values. However security rules will not prohibit the actions above because they are in the same set of books. The system does not determine if a journal has values in it that are blocked by security rules. If it did that, the journal would appear as unbalanced.There would have to be an incredible amount of logic involved, which would further reduce performance, for the posting program to scan the journal for security rules first before posting. Posting does not take into consideration the rules, this is done at the time of journal entry.















This entry was posted on January 2, 2011 at 10:36 PM and is filed under General Ledger, Oracle E-Business Applications, Oracle Financial. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.


1. I have defined a security rule and assigned it to my responsibilty, but is still does not work, why?



This functionality is available starting in Release 11i. In Releases 11 and lower, one cannot set security for standard reports. Security Rules will only limit users from a few functions (e.g. Account Inquiry, Budgets, Journal Entries, and FSGs). In addition,in Release 11i there is limiteduse of the security rule functionality for running standard reports.














There is no way in the same set of books, to prevent users from one operating unit via security rules, from changing cross validation rules for another operating unit. The only way to do this would to be create a separate set of books for each operating unit. Since security rules prevent users from either viewing data or entering data in general, they do not pertain to set up issues such as creating cross validation rules.Therefore, the only other way to prevent one user from one organization from creating cross-validation rules to the other organization, when in the same set of books, would be to completely remove that menu function from the user.


This is working as intended. Security rules will prohibit a responsibility from being able to ente certain values as well as prohibit the viewing of those values. However security rules will not prohibit the actions above because they are in the same set of books. The system does not determine if a journal has values in it that are blocked by security rules. If it did that, the journal would appear as unbalanced.There would have to be an incredible amount of logic involved, which would further reduce performance, for the posting program to scan the journal for security rules first before posting. Posting does not take into consideration the rules, this is done at the time of journal entry.












interviw quetion answer

Documents

books qns

lines qns

statuses qns

tl qns

user defined qns

attribute column qns

fiscal b accounting

currencies period gl