oracle e-business suite r12.1 general ledger...

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Key Content Contributors

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R12.1: Oracle Financials

Module: Oracle General Ledger

Oracle General Ledger Process

Accounting Setup Manager

Ledger

Basic Journal Entries

Accounting Setups

Summary Accounts

Advanced Journal Entries

Bootcamp Objectives



Advanced Journal Entries

Advanced Security

Financial Budgeting

Multi-Currency

Consolidations

Period Close

Financial Reporting

Section Objectives

Create Recurring Journals

Formulate Mass Allocation Journals

AutoAllocations and related implementation considerations

AutoScheduling Describe the Journal Scheduling process

Key issues and considerations when implementing Advanced Journal



Entry

Business benefits of using Oracle General Ledger's Advanced

Journal Entry functions

Recurring Journal Entries

• Define recurring journals for transactions that repeat every

accounting period, such as accruals, depreciation charges, and

allocations.

• Recurring journals can be used to create three types of journal

entries:

– Skeleton journal entries: Affect the same accounts each period, but have



– Skeleton journal entries: Affect the same accounts each period, but have

different posting amounts.

– Standard journal entries: Use the same accounts and amounts each

period.

– Formula journal entries: Use formulas to calculate journal amounts that

vary from period to period.

Creating Recurring Journal

Create Recurring

Journal Definition

Generate Recurring

Journals

Delete the Journal

Entry and Correct the

Definition



Review Entries – Are the

Entries Correct?

Post Entries

Yes

No

Recurring Journal Entry Lines

• An unlimited number of journal entry lines can be created for each

recurring journal entry.

• The journal entry lines specify the accounts to update with the

recurring journals.

• Each line contains the amount to post to the designated account, or a



• Each line contains the amount to post to the designated account, or a

formula to calculate the journal amounts.

• An automatic offsetting line can be used for a recurring journal entry

by entering the line number 9999

Automatic Offset Example

Line Account Debit Credit

1

2

Consulting

Revenue

Training Revenue

2,000

6,000



3

9999

Sales Revenue

Services Revenue

(Offset Line)

4,000

4,000

(System calculated)

Formula Recurring Journals

• Create a formula for each journal line.

• Each formula can contain an unlimited number of steps.

• The steps can use any combination of amounts, account balances,

and/or operators. The operators that can be used are:

– Enter



– Enter

– Add

– Subtract

– Multiply

– Divide

• If the formula yields a positive amount, your account will be debited. If

your formula yields a negative amount, your account will be credited.

Generating Recurring Journals

• Generate recurring journals to create un-posted journal entries from

the recurring journal definitions.

• After generating the formulas, review or edit the recurring journal

batches before posting them.

• After generating the skeleton journal entries, complete the journal



• After generating the skeleton journal entries, complete the journal

information before posting them.

• Generate recurring journal batch according to schedules defined in

General Ledger.

Recurring Journals



Section Objectives








Entry



MassAllocations Journal Entries

•MassAllocation formula is used to create journals that allocate

revenues and expenses across a group of cost centers, departments,

or divisions.

•MassAllocations can be created in the functional currency, a foreign

currency or statistical currency.



Total Rent

Proportional

Allocation based

on Formula

London Rent

Paris Rent

Chicago Rent

MassAllocations V/S Recurring Journals

Type of Entry MassAllocations Recurring Journals

Formula Entries Yes Yes

Standard Entries Yes Yes

Skeleton Entries Yes Yes



Skeleton Entries Yes Yes

Currency Functional, Foreign, or STAT

Functional or STAT

Formulas per Journal Line

One formula for many lines

One formula per line

Formula A*B/C Any formula

Create MassAllocations Journals

• This is a 5–Step process:

– Create MassAllocation definition

– Validate definition

– Generate MassAllocation Journals



– Review entries

– Post entires

Creating MassAllocation Definition

• Define a single formula to allocate amounts across a group of

balancing segment values, departments, or cost centers. You can

create a new MassAllocation batch or copy an existing batch.

Department 1



Allocate Total Rent

Department 1

Department 2

Department 3

Defining MassAllocation Formula

• All MassAllocation formulas use the following equation to determine allocation

amounts:

• Oracle General Ledger uses the following format to represent the equation. Each

factor in this equation relates to a separate formula line:

Cost Pool * (Usage Factor/Total Usage)



• You can enter any combination of fixed amounts and account combinations in formula

lines A, B, or C.

• Following account segment type can be associated with each formula line:

–Looping

–Summing

–Constant

A * B/C

Target and Offset Accounts

• These are the lines that are the actual journal entry:

–Target: Enter an account in the Target line to specify the destination for the

allocations.

–Offset: Enter an account in the Offset line to specify the account to use for the

offsetting debit or credit from your allocation.



MassAllocation Journal Example

Allocate Total Rent

Human Resource

Department

Finance

Department

Research



Research

Department

Dr. Human Resources 2,000 functional dollars

Dr. Finance rent 3,000 functional dollars

Dr. Research rent 5,000 functional dollars

Cr. Total Rent Expense 10,000 functional dollars

Validating MassAllocation Journals

After defining a new allocation batch, or changing an

allocation formula:

Run the MassAllocation /

MassBudget Validation

program



Validate

Use the Request ID to

locate the problems on

the MassAllocations

Validation Report

Ready to Generate

Mass Allocation

Journal

Correct Errors

No Errors

Generating Mass Allocation Journal

•Generate MassAllocations to create unposted journal batches based

on the validated MassAllocation formulas.

–The generated journal batch contains one entry for each allocation formula in

the batch.

• Use MassAllocation journals to reverse existing balances, post new



• Use MassAllocation journals to reverse existing balances, post new

allocation amounts, or generate journals that increment the existing

balances to match the current allocation amount.

• Generate MassAllocation journal batches for any range of open or

future enterable periods.

Mass Allocation Journal



Section Objectives








Entry



Auto Allocations



Section Objectives








Entry



AutoScheduling Overview

• Automatic Journal Scheduling enables generation of Recurring

Journals, AutoAllocation sets, Mass-Allocations, MassBudgets and

Budget Formulas according to a schedule you define

•Define your own schedule in General Ledger, based on your General

Ledger calendar

• Choose any defined schedule in the Application Object Library (AOL),

based on a standard monthly calendar



based on a standard monthly calendar

• Define your own AOL schedule or use an AOL schedule you previously

defined and saved

Section Objectives





Key issues and considerations when implementing Advanced

Journal Entry



Journal Entry



Key issues and considerations when

implementing Advanced Journal Entry



Section Objectives








Entry



Business Benefits of using Advanced




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