Objective: This Document is to make the user to understand the flow of accounting in Oracle

applications, in Purchasing, Manufacturing, Inventory, Order Management and Financial Modules

Payables, eceivables, !ash management and "eneral ledger and not to cover all scenarios and
#usiness cycles$ I have not covered few other modules like Fi%ed &ssets, Pro'ects, Treasury,
Payroll, (ncumbrance etc$, in this Document which also generates accounting entries$ This Does
not cover the technical aspects like, Table, columns etc$, for which you have standard diagnostics
scripts which can be run and viewed for every activity$
Business Case: Parry !onfectionery )td is Manufacturers of !offee #ite, !aramilk, !oconut
Punch, )acto *ing, Orange !andy variety of !hocolates$ The !hocolates Manufacturing Process
is as follows
Milk is #oiled to evaporate the +ater content ,-.. Degree centigrade and it is called
#oiled Milk
Then to the boiled Milk, /ugar and !ocoa are added which has the water content$ This is
again boiled to evaporate all the water content to make it as Thick )i0uid Milk called
!ondensed Milk
!ondensed Milk is allowed to be allowed to pass through a drier which takes all +ater
content and make it as dry chocolate$
The dry chocolates are allowed to pass through a cutting machine which cuts the
chocolates into different pieces of 1 grams, -. grams, etc
Then the pieces of chocolates are passed to a wrapper machine which wraps the
chocolate and pass it on to a container
Then the wrapped chocolates from the container are sent to a Packing machine which
picks up chocolates and makes them as 1.. grams, -*" pack chocolate covers$
Then the chocolates are placed in -. kg, 2. *g carton bo%es and sent to !ustomers
Key Points: I am using 3ision Operations to e%plain the flow of accounting
entries
Business Group: 3ision !orporation
Set of Books: 3ision Operations
Operating Unit: 3ision Operations
Inventory Organization: 3ision Operations 4Master5 3-, /eattle Manufacturing
4!hild5 M-
Costing Meto!: /tandard !osting
"isc#ai$er: %is "ocu$ent &as create! &it $y o&n assu$ptions to e'p#ain te
concept of accounting an! te na$es of te co$panies use! in tis artic#e are on#y to
e'p#ain te accounting concept &it !ata assu$ptions an! none of te Co$pany is not
responsib#e for te "ata or te process infor$ation provi!e! in tis artic#e(
Case Stu!y
Parry !onfectionery )td is Manufacturers of !aramilk, )actoking and !oconut Punch !hocolates$
Their /tatement of &ffairs as on 6-7Oct72..8 is as follows
Ba#ance seet as on )*+Oct+,--.
/iabi#ities 0$ount in US" 0ssets 0$ount in US"
/hare !apital 1.... 1i'e! 0ssets
/ong ter$ /oans #uilding 21...
9: Debentures 1.... Plant and Machinery 81...
)oan from I!I!I 21... Investments 2....
Current /iabi#ities Current 0ssets
/undry !reditors 1.... Inventory 21...
/undry Debtors 2....
#ank 81..
!ash 21..
%ota# /iabi#ities *.2--- %ota# 0ssets *.2---
During the period .-7;ov72..8 to 6.7;ov72..8 following Transactions took place
-5
a5 Purchased Inventory as follows
i5 Milk 1.. )trs , -2</D per )tr = >... </D
ii5 /ugar 1.. *gs , -.</D per *g = 1... </D
iii5 !ocoa 1.. *gs , 21 </D per *g = -21.. </D
25 eturned Materials to /upplier is 1. )trs of Milk
65 Made Payment To /uppliers for Milk and /ugar
?5 During the month 8 kgs of !aramilk, -2 *gs of !offee #ite and > *gs of )ackto *ing
!hocolates the Discrete 'ob is created
15 The actual completed output of the Finished "oods Items are 1 *gs of !aramilk, -. *gs of
!offeebite and > *gs of )actoking
>5 /ales Made during the Month is 1 *gs of caramilk and, -. *gs of !offee #ite and ? *gs of
)acto *ing
85 Payment received from !ustomers only for !offeebite
95 Out of the Items sold - kg of !aramilk was spoiled for which the !ustomer has sent back the
material
@5 One *g of )actoking was spoiled in Transit for which !ustomer need to be issued a !redit
note as Material non7returnable
-.5 During the month the company paid following e%penses
a5 Packing Material =-.. Paid by !ash
b5 &dvertisement = 21. Paid by #ank to OrgMarg !ompany
--5 !ompany withdrew -... </D for Office use
-25 Interest Income received for the month is -.. </D
-65 #ank charges for the month is 1 </D
-?5 Provision for Ta% to be made 1.. </D
-15 (mployees Travel (%penses Provision to be made 6.. </D
3M4 1inise! Goo!s 3/acto King5 Cara$i#k5 Coffee Bite4
!ondensing Department
-. Aours ,2. </D per Ar
Packing "epart$ent
- Aours , 1. </D per
Milk /ugar !ocoa
-. )trs ,s-. 1 *gs ,s-. ? *gs ,s21
The /tandard cost of a Material Item is as follows
!ow Milk -.. </D B
/ugar 1. </D B
!ocoa -.. </D
77777777777777
/tandard !ost 21. </D
CCCCCCCCC
Manufacturing !ost of !hocolate is as follows
Purchase /tandard !ost is 21. </D
Operations !ost
!ondensing Dept !ost 2.. </D
Packing !ost 1. </D
21. </D
77777777777777
Manufacturing Cost 2-- US"
CCCCCCCC
/elling Price
!offee #ite 8.. </D
!aramilk >1. </D
)acto *ing >.. </D
%ings to kno&: I hope all of you might have gone through my previous two accounting
Materials and found it useful$ #ut you should understand there are always challenges and
advantages of using (P system to generate the information and accounting transactions$ +e
will discuss the details briefly here
I$portant Points:
-5 In the Manual or )egacy accounting systems, we will not have the concept of
Intermediary accounting like &ccruals etc$D This is a system re0uirement for it to perform
the matching and meet the /tandard accounting procedures accruals accounts need to
be created$
25 The Intermediary accounts like &ccruals, Inter company Transfer account etc$, must be
defined as a #alance sheet account meaning either as an &sset or )iability$ +hyE The
reason being if you define it as evenue or (%pense &ccount, then it will have the impact
on Profit and )oss at the end of the period which is not correct$ /o keep it in mind
whenever you define an Intermediary account it must be a #alance sheet account like
&sset or )iability account type$
65 The (P system always follows perpetual system of Inventory which means the stock
eceipt and Issues are accounted immediately and not using the Periodical Inventory
system$ To understand the difference between the two refer to the following <)
a$ httpFGGccba$'su$eduGaccountingGP(P(T<&)P(IODI!H($ATM)
b$ httpFGGccba$'su$eduGaccountingGM&I;M(;<-$ATM)
?5 The !onfectionery Industry will fall under Process manufacturing or discrete
Manufacturing might be a big debate, but for this e%ercise, I have e%plained only in
discrete manufacturing and I have not considered the ;ormal losses etc$, in the Process
like +ater evaporation )oss etc$, in this e%ercise
In!e'
*( Creation of Ite$s5 Ite$ Costs an! Bi## of Materia#
,( /oa!ing of Opening Ba#ances
)( %ransactions Creation
6( Materia# 7eturne! to Supp#ier
2( Create Supp#ier Invoice an! Make pay$ent to Supp#ier
8( Create "iscrete 9ob for Coffeebite5 Cara$i#k an! /actoking
.( Create Sa#es Or!er5 Book te Or!er5 re#ease an! Sip confir$ te Goo!s
:( Pay$ent receive! fro$ Custo$ers on#y for Coffeebite
;( Out of te Ite$s so#! * kg of Cara$i#k &as spoi#e! for &ic te Custo$er as
sent back te $ateria#
*-( One Kg of /actoking &as spoi#e! in %ransit for &ic Custo$er nee! to be issue!
a Cre!it note as Materia# non+returnab#e
**( "uring te $ont te co$pany pai! fo##o&ing e'penses
i4 Packing Materia# <*-- Pai! by Cas
ii4 0!vertise$ent < ,2- Pai! by Bank to Org Marg Co$pany
*,( Co$pany &it!re& *--- US" for Office use
*)( Interest Inco$e receive! for te $ont is *-- US"
*6( Bank carges for te $ont is 2 US"
*2( Provision for %a' to be $a!e 2-- US"
*8( =$p#oyees %rave# ='penses Provision to be $a!e )-- US"
*.( Sub /e!ger =ntries %ransfer to Genera# /e!ger
*:( Posting in Genera# /e!ger
*;( 7unning of %ria# Ba#ance5 Profit an! /oss 0ccount an! Ba#ance Seet
Intro!uction: The Opening #alance of &ssets and )iabilities e%cept the eceivables, Payables
and Inventory will be loaded through a Hournal in any Implementation$ The Payables balances will
be created from &ccounts Payable and eceivables will be created from &ccounts eceivables
and Inventory will be created from Inventory module using cycle counting ad'ustment entries$
The 3ision Instance will have certain transactions already created and those transactions will
have the period end balances as Opening balance$ Aence for this e%ercise ignore the Period
beginning balance and period closing balance and ensure the Period do not contain any
transactions$
;avigation Path
Oracle "eneral )edger
OthersG e0uests
ParameterF #alancing /egmentF !ompany
PeriodF ;ov7.8
!urrencyF </D

This clearly shows there are no transactions created for the period ;ov7.8
*( Creation of Ite$5 Ite$ Costs an! Bi## of Materia# 3BOM4
I have e%plained in my Procure to Pay 7 Order to !ash 7 (nd to (nd !ycle Functional Documents
in detailed steps on Aow to create an item, Item costs and #ill of Material in detail$ /o please
replicate the same steps to get the cost of an Item
The !ost of the Item is as follows after we define the Item, Item costs, esources, Departments,
outings and #ill of Material
;avigation path
Manufacturing 3ision Operations
!hoose Inventory OrganiIation as M- /eattle Manufacturing
#ill of Materials G #ill of Material
Juery for Item !aramilk
!lick on Tools !lick on oll up costs
!hoose !ost type as Pending and un the eport
3iew the concurrent e0uest when it is completed ;ormal
,( /oa!ing of Opening Ba#ances
The Opening #alances will be loaded through Hournal as on 6-7Oct72..8 as per the #alance
sheet provided in the case study$ The &sset and )iability balances are entered as it is and only for
eceivables and Payables it is entered in /ub ledgers and transferred to ") and cleared the
!learing account instead of using evenue and (%penses &ccount
;avigation Path
"eneral )edger /uper <ser
Hournals G (nter
The &ccounts Payables 4&ccount code 22-.5 and &ccounts eceivables 4&ccount code -2-.5
have not been entered instead the &ccounts Payables clearing &ccount 4&ccount code 222.5 and
&ccounts eceivables clearing &ccount 4&ccount code -2?85 to which the balances are created
which will be knocked off by the entries created from the /ub )edgers which will reflect the Open
Invoices for &ging Purposes$
;avigation Path
Payables 3ision operations
Invoices G (ntry G Invoices
!reate Invoices as per your individual supplier details and choose the ") Date in Distribution
)ines as -7;ov72..8 which is the Opening #alances Date and choose the distribution )ine
account as &ccounts Payable !learing &ccount$
;ow post the above Transactions to "eneral )edger
This will create unposted Hournal (ntry as follows
&ccounts Payables clearing &Gc Dr 1....
&ccounts Payables &Gc !r 1....
;avigation Path
eceivables, 3ision Operations
Transactions
!reate Invoices e0uivalent to your open balances with various dates and create a Transaction
type of open #alances and attach in the revenue account &ccounts eceivables !learing &ccount
4&ccount code -2?85 and create an Invoice and save the Transaction and post the transactions to
"eneral )edger
This will create following accounting entry
&ccounts eceivables 4-2-.5 &Gc Dr 2....
&ccounts eceivables clearing 4-2?85 &Gc !r 2....
The ob'ective of doing this is to create &ging eports in eceivables and Payables Module$
un the !oncurrent Program in eceivables
;avigation Path
eceivables, 3ision Operations
Interfaces G "eneral )edger
3iew the accounting (ntries in "eneral )edger
;avigation Path
"eneral )edger, 3ision Operations
HournalsG (nter G Hournals
eview the Hournals
;avigation Path
"eneral )edger, 3ision Operations
HournalsG (nter G Hournals
Juery for /tatus <nposted and period ;ov7.8

Post these Hournals which completes the Opening #alances are ready
>ote: This way we can load the opening #alances of eceivables and Payables$ I have not
covered )oading the opening #alances of Inventory which can be done using Miscellaneous
Transactions or using !ycle counting ad'ustments$
)et us review the Trial #alance to view the opening balances of the Transactions created
)et us 3iew the &ging eports in Payables and eceivables
;avigation Path
Payables, 3ision Operations
OthersG e0uests G un
/ingle e0uest
!hoose Invoice &ging eport
&ging eport in eceivables
;avigation Path
eceivables, 3ision Operations
eports G collections
&ging eport ? #ucket
)et us run the #alance sheet and ensure that the Opening #alances are correct
>ote: &s I mentioned before, please consider only the Period #alances for this case study and
ignore the KTD balance which are 3ision Operations (ntry #alances
;avigation Path
"eneral ledger, 3ision Operations
eports G Financial
!ompany #alance sheet
)( %ransactions Creation
)et us e%ecute the Transactions one by one as mentioned in the case study and view their
&ccounting Impact
-5
a5 Purchased Inventory as follows
i5 Milk 1.. )trs , -2</D per )tr = >... </D
ii5 /ugar 1.. *gs , -.</D per *g = 1... </D
iii5 !ocoa 1.. *gs , 21 </D per *g = -21.. </D
+e will create a PO for the above through supplier ;estle )td$
I$portant >ote: There is ;o actual accounting (ntry "enerated, when you create a Purchase
e0uisition 4P5 or Purchase Order 4PO5$ If you have enabled budgetary control in ") /et of
books and (ncumbrance &ccounting in Financial Options, then (ncumbrance entries are created
in Purchasing Module$ (ncumbrance is not covered in this (%ercise$
;avigation Path
Purchasing, 3ision Operations
Purchase orders G Purchase orders
The PO ??2. is created with /tatus incomplete and we need to get this approved by clicking
&pprove #utton
>ote: The /tandard cost of Milk is -. </D per )tr and I have created PO with the rate of </D -2
to get the Purchase price variance account getting created$ +e will check when we receive the
Inventory &ccount at the time of inventory receipt$
!reate eceipts for the Inventory Items
;avigation Path
Purchasing 3ision Operations
eceiving G eceipts
!hoose Inventory Org M-
(nter Purchase Order field ??2.
!lick on Find #utton
/elect the check bo% for the inventory eceived and enter the /ub inventory as /tores and /ave
the ecord$ eceipt @>-. is created$
To view the &ccounting Distribution )ines created go to
;avigation Path
Purchasing 3ision Operations
eceiving G eceiving Transactions /ummary
(nter eceipt ;umber as @>-. and click on Find #utton
!lick on Transactions #utton
eceipt Transactions /ummary form Opens$ !lick on Tools G 3iew &ccounting to view the
&ccounting (ntries created
I$portant >ote: The Destination Type is showing as receiving for the first line eceive
transaction type and /econd )ine Destination Type is showing as Inventory for deliver transaction
type$ The Functionality of this is as follows$ The First line is created when you receive inventory in
main Inventory OrganiIation and when you do enter eceiving TransactionsD it will change it from
Main Inventory OrganiIation to /ub Inventory$ It depends on the eceipt outing what you enter
in PO eceiving control form$ +hen Kou set it as Direct delivery both lines will get created
simultaneously and when you set it as /tandard eceipt, then the first line will get created when
you enter eceipt and second line will get created when you do eceiving transaction and
choose the /ub inventory$
The /ignificance of this from &ccounting Perspective is the destination type of receiving 4i$e$5 First
line only you can view the accounting in Purchasing Module$ The /econd line where the
Destination type is Inventory, you can view only in Inventory Module$ If you *eep the !ursor in
second line and click on Tools, the 3iew &ccounting is disabled$
This has created following &ccounting (ntry in Purchasing Module
Material Inspection &ccount Dr
Inventory &P &ccruals &ccount !r
To view the Inventory Module &ccounting (ntries
;avigation Path
Inventory 3ision Operations
Transactions G Material Transactions
"ive Date ange to find Transactions and choose the Milk distribution )ine
It has created following accounting entries
Inventory &Gc Dr 1...
Purchase Price variance &Gc Dr -...
Material Inspection &Gc !r >...

Kou !an 3iew the &ccounting (ntries for /ugar and !ocoa also for which ;o Purchase Price
3ariance created because there is no difference between /tandard !ost and the PO price
6( Materia# 7eturne! to Supp#ier
eturned Materials to /upplier is 1. )trs of Milk
;avigation Path
Purchasing, 3ision Operations
eceiving G eturns
(nter 1. )trs against the eceipt ;umber and /ave the Transactions
To view the &ccounting Distribution )ines in Purchasing created go to
;avigation Path
Purchasing 3ision Operations
eceiving G eceiving Transactions /ummary
(nter eceipt ;umber as @>-. and click on Find #utton
To view the Inventory Module &ccounting (ntries
;avigation Path
Inventory 3ision Operations
Transactions G Material Transactions
"ive Date ange to find Transactions and choose the Milk distribution )ine
2( Create Supp#ier Invoice an! Make pay$ent to Supp#ier
Made Payment to /uppliers for Milk and /ugar
;avigation Path
Payables, 3ision Operations
Invoices G (nter G Invoices
&n Invoice eceived from !adbury for -.@.. </D$ !reate an Invoice for -.@.. </D and match
to PO ??2.
!lick on Match #utton and !hoose the PO and enter the Juantities as per the Invoice
!lick on Match #utton ;ow
Kou will get the following lines in the distribution )ines of invoice
!lick on &ctions #utton and 3alidate and then run the !reate &ccounting #utton$
Kou can see that system has created an Invoice Price 3ariance for </D 1..
;ow we need to make payment for the Invoice
;avigation Path
Payables, 3ision Operations
Invoices G (nter G Invoices
Juery the Invoice ;umber -1>-
!lick on &ctions #utton and check the pay in Full check #o%
!lick on O* button
The Payment Form opens and chooses the document number, it reserves the Document and
click on &ctions #utton and enable the check bo%, Format, Print and !reate &ccounting$ Kou will
get the following screen
!lick on Tools G 3iew &ccounting /creen to view the &ccounting (ntries generated
)og on to !ash management Module and !reate a #ank /tatement for this amount and !lear the
Transaction
;avigation Path
!ash Management, 3ision Operations
#ank statements G Manual !learing G !lear transactions
!hoose the Transaction and click on clear transactions button$ Kou will find the transaction is
vanished which means it is cleared$
;avigation Path
Payables, 3ision Operations
Payments G (ntry G Payments
Juery for the payment ;umber 2?86
Kou will find &ccounted /tatus changed to partial
!lick on &ctions #utton and (nable create &ccounting check bo% and click on O* button
!lick on Tools G 3iew &ccounting to view the &ccounting (ntries !reated
This !ompletes the Procure to Pay cycle &ccounting Transactions$ +e will proceed for
Manufacturing Transactions$
8( Create "iscrete 9ob for Coffeebite5 Cara$i#k an! /actoking
During the month 8 kgs of !aramilk, -2 *gs of !offee #ite and > *gs of )ackto *ing !hocolates
the Discrete 'ob is created
;avigation Path
Manufacturing, 3ision Operations
+IP G Discrete G Discrete Hobs
!reate a ;ew Discrete Hob for each of the Product as mentioned above and change the status
from <nreleased to eleased
For detailed steps of creating Discrete Hob efer my Previous Document LProcure to pay and
Manufacturing !ycleM
;avigation Path
Manufacturing, 3ision Operations
+IP G Move Transactions G Move Transactions
(nter the Hob order @...6 and in Juantity column enter the !ompleted Juantity as -. and save
the transaction$
&gain enter the same Hob Order @...6 and move the #alance Two *gs as e'ected item to view
the accounting Impact on e'ected Transactions
"o back to Following ;avigation Path and /earch for Hob order @...6
;avigation Path
Manufacturing, 3ision Operations
+IP G Discrete G Discrete Hobs
Kou will find the Hob status as !omplete and !ompleted Juantities as -.$ The remaining balance
2 *gs e'ect is eworkable and the Hob is still in released status and the 'ob is not yet closed$
"o back to Following ;avigation Path and /earch for Hob order @...6
;avigation Path
Manufacturing, 3ision Operations
+IP G Discrete G +IP 3alue /ummary
First we will complete the other two Orders also and /et one of the Hob order to /crap and /ee
how the /crap &ccounting Takes places
;avigation Path
Manufacturing, 3ision Operations
+IP G Move Transactions G Move Transactions
For Hob Order @...2 we make 1kgs as completed and #alance 2 kgs, we will make it as /crap
and view the accounting Impact
#alance Two *gs of !aramilk moved to scrap as follows
Hob ;umber @...? for )actoking
;avigation Path
Manufacturing, 3ision Operations
+IP G Move Transactions G Move Transactions
;e%t we need to close the Hob Orders for the 3ariances to get relieved
;avigation Path
Manufacturing, 3ision Operations
Discrete G !lose Discrete 'obsG Discrete Hobs Forms
(nter Hob order ranges @...2 and @...?
/tatus changed to closed
)et us view the +IP 3aluation /ummary for the /crap and e'ection &ccounting variances
;avigation Path
Manufacturing, 3ision Operations
+IP G Discrete G +IP 3alue /ummary
Hob Order @...2 +here as /crap &ccount accounting Distributions
Hob Order ;umber @...6 +IP 3alue /ummary showing cost of -... </D for the e'ected goods
not yet reprocessed
Hob Order @...? for the )actoking which is completed in full
.( Create Sa#es Or!er5 Book te Or!er5 re#ease an! Sip confir$ te Goo!s
/ales Made during the Month is 1 *gs of caramilk and, -. *gs of !offee #ite and ? *gs of )acto
*ing
I$portant >ote: Order management does not generate any accounting entries and when we do
ship confirm "oods Inventory Module "enerates the &ccounting entries
;avigation Path
Order management /uper user, 3ision Operations
Orders, eturns G /ales Orders
;avigation Path
Order management /uper user, 3ision Operations
Orders, eturns G /ales Orders
#ook the /ales Order number 56700
;e%t step is to elease the sales Order 1>8..
;avigation Path
Order management /uper user, 3ision Operations
/hipping G elease /ales Orders G elease /ales Orders
;avigation Path
Order management /uper user, 3ision Operations
/hipping G Transactions
Juery sales Order 1>8..
/hip confirm the "oods
Order )ine status changed to /hipped
)et us check the !ost of "oods /old (ntries created for this Transaction$ 3iew the Juantity
details in Inventory Module under Material Transactions Form
;avigation Path
Inventory, 3ision Operations
!hoose Inventory Org M-
Material distributions
(nter /ource Type as sales Order and Order ;umber as 1>8..
un the +F #ackground Process to generate Invoice in eceivables
;avigation Path
Order Management /uper <ser 43ision Operations5
3iew G e0uestsG /ingle e0uest
+F #ackground Process
)og on to eceivables and run the &uto invoice Process to generate Invoice for the same
eceivables, 3ision Operations
Transactions G Transactions
Juery in eference column with /O number 1>8..
)et us view the Distribution (ntries
:( Pay$ent receive! fro$ Custo$ers on#y for Coffeebite
)og on to eceivables 3ision Operations
eceipts G eceipts
!lick on &pply button and choose Invoice ;umber -..2.>89 and apply to line number 6
"o #ack to Aeader to view the &ccounting (ntries
;( Out of te Ite$s so#! * kg of Cara$i#k &as spoi#e! for &ic te Custo$er as sent
back te $ateria#
)og on to Order Management /uper user, 3ision Operations
Orders G eturns
/ales orders
!reate a /ales Order with ;egative Juantity of - for Item caramilk
#ook the Order
;ow we need to eceive Inventory as it is an M& 4eturn Material &uthoriIation order5
)og on to Purchasing, 3ision Operations
eceivingG eceipts
!hoose Inventory Org M- /eattle Manufacturing
"o to !ustomer Tab and (nter M& number 1>8.-
!lick on Find #utton
eceipt @>-- created$
)og on to Inventory Module to 3iew the &ccounting (ntry
;avigation Path
Inventory, 3ision Operations
Transactions G eceiving G Material Transactions
Juery for Item !aramilk in /ub inventory F" /tores
!lick on Distributions
*-( One Kg of /actoking &as spoi#e! in %ransit for &ic Custo$er nee! to be issue! a
Cre!it note as Materia# non+returnab#e
)og on to eceivables 3ision Operations
Transactions G Transactions
!omplete the Transaction
**( "uring te $ont te co$pany pai! fo##o&ing e'penses
3*4 Packing Materia# <*-- Pai! by Cas
3,4 0!vertise$ent < ,2- Pai! by Bank to Org Marg Co$pany
For Transaction 4i5 !reate a /upplier with the ;ame Petty cash and !reate a #ank &ccount also
with the ;ame petty cash and in cash &ccount attach the Petty !ash &ccount
;avigation PathF Payables, 3ision Operations
Invoices G (ntry G Invoices
!lick on &ction and !heck the check bo% Pay in Full
+e need to create a #ank /tatement and !lear this Payment against /tatement to !lear the
Transaction
;avigation PathF !ash Management, 3ision Operations
#ank /tatements G Manual clearing G !lear transactions
On the basis of same steps as above, we need to do the second step of making Payment to Org
Marg !ompany$ The Difference between the two is to show Aow a Petty !ash Payment can be
handled in &ccounts Payables$ The cash eceipt of Petty cash can be seen in ;e%t step
;avigation PathF Payables, 3ision Operations
Invoices G (ntry G Invoices
*,( Co$pany &it!re& *--- US" for Office use
This is a Petty !ash withdrawal which can be handled through Prepayment Invoice
;avigation PathF Payables, 3ision Operations
Invoices G (ntry G Invoices
!reate a Prepayment Invoice for -... </D for Petty cash /upplier and make Payment$
*)( Interest Inco$e receive! for te $ont is *-- US"
;avigation PathF 3ision Operations, eceivables
eceipts G eceipts
!reate a Miscellaneous eceipt for -.. </D for Interest Income$
*6( Bank carges for te $ont is 2 US"
;avigation PathF eceivables, 3ision operations
eceipts G eceipts
!reate a Miscellaneous eceipt with the ;egative amount of 1 </D$ Then system treats the
Transaction as payment to #ank$ Only for the Type of Miscellaneous eceipt system will allow
you to create ;egative (ntry$
This is another way you can use Petty cash functionality using Miscellaneous eceipts$
*2( Provision for %a' to be $a!e 2-- US"
;avigation PathF "eneral )edger, 3ision Operations
Hournals G (nter
*8( =$p#oyees %rave# ='penses Provision to be $a!e )-- US"
;avigation PathF Payables, 3ision Operations
Invoices G (ntry G (%pense eports
(nter (mployee (%pense for 6.. </D
Import the (%pense eport as an Invoice through !oncurrent Program
3iew the !oncurrent e0uest output
!heck the Invoice, 3alidate and &ccount for the /ame
*.( Sub /e!ger =ntries %ransfer to Genera# /e!ger
+e have e%ecuted all the Transactions$ ;ow we have to transfer all the /ub ledger Module
entries to "eneral )edger
Modules to be transferred
a( Purcasing = It is transferred through a Profile set up called
!3F Processing ModeF If it is set to Online, it is pushed immediately to ") Interface and we
'ust need to import from ") Interface to ") Hournals
Import the Transactions to ")
;avigation PathF "eneral )edger, 3ision Operations
Hournals G Import G un
!hoose the /ource as Purchasing
3iew the !oncurrent re0uest Output
3iew the Hournals in "eneral )edger Module in <nposted /tatus
b( Inventory: Transfer from Inventory Module
un the !oncurrent Process Transfer Transaction to ")
Import the Hournals
;avigation PathF "eneral )edger, 3ision Operations
Hournals G Import G un
!hoose the /ource as Inventory
3iew the Hournals created in unposted status
c( Manufacturing: = ;o &ccounting (ntries are generated in this case from Manufacturing
Module in this case
!( Or!er Manage$ent: = ;o &ccounting entries are generated from Order management at
any point of time$ The cost of "ood /old account is debited and Finished "oods (ntry is
credited in Inventory Module when we do the /hip confirm of "oods in Order
management$ The (ntries are created in Inventory Module and not in Order management
Module$
e( 0ccounts Payab#es:
;avigation PathF Payables, 3ision Operations
3iew G e0uests G /imple e0uest
!hoose Payables to "eneral )edger !oncurrent program
un the e0uest it will create unposted Hournal (ntries in ") as we have set the parameter
/ubmit Hournal Import to Kes
3iew the concurrent e0uest output
3iew the <nposted Hournals in ") for Purchase Invoices
3iew the Hournals created for Payments
3iew the Hournals created for econciliation (ntries
f( 0ccounts 7eceivab#es:
;avigation PathF eceivables, 3ision Operations
Interfaces G "eneral )edger
un "eneral )edger Transfer Program with the Parameters
This will create <nposted Hournals in ") as we set the Hournal Import to Kes
3iew the Hournals created in "eneral )edger for sales Invoices
3iew the Hournals created for eceipts
3iew the Hournals created for !redit Memos
3iew the Hournals created for Miscellaneous eceipts
g( Cas Manage$ent: = ;o &ccounting entries are created in !ash Management$ The
econciliation Payment and eceipt entries are created in Payables and eceivables
Module
+e have to Post these Hournals now to update the "eneral )edger balances
)et us have a complete view of all unposted Hournals
*:( Posting in Genera# /e!ger
+e need to post these Hournals to update ") #alances
;avigation PathF "eneral )edger, 3ision Operations
3iew e0uests G /ingle e0uest
un the concurrent Program = &utomatic Posting and choose the Parameter Post all Hournals$
3iew the Posted Hournals
;avigation PathF "eneral )edger
Hournals G (nter G Hournals
Juery for Period ;ov7.8 and status as Posted
*;( 7unning of %ria# Ba#ance5 Profit an! /oss 0ccount an! Ba#ance Seet
unning the Trial #alance
;avigation PathF "eneral )edger, 3ision Operations
un the Income and (%penditure &ccount and #alance /heet from F/"
;avigation PathF "eneral )edger, 3ision Operations
eports G Financial
3iew the Output of the Income and (%penditure &ccount or Profit and )oss &ccount
3iew the output of the #alance /heet
Please review the attached eport Documents which clearly depicts the accounting transactions
are created and their Impact in ") with the closing Trial #alance$
Conc#usion: The above Document will help you to clearly understand the importance of
&ccounting and how it is being handled in Oracle &pplications$ I trust this will help the novice user
to e%pert to understand the concept of &ccounting pretty well including Oracle Technical
!onsultants
NThere is a difference between an ob'ective and actions$ <nless you understand your ob'ective,
you will be wasting your time in actions$ *now your ob'ective first N 7 /wami 3ivekananda
Thank Kou