Fi 115 V 1

11i Financial Applications Overview
Student Guide
Volume 1
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D11439GC10
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Edition 1.0
October 2001
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D33973
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Copyright Oracle Corporation, 2001. All rights reserved.

This documentation contains proprietary information of Oracle Corporation. It is provided under a license agreement containing
restrictions on use and disclosure and is also protected by copyright law. Reverse engineering of the software is prohibited. If this
documentation is delivered to a U.S. Government Agency of the Department of Defense, then it is delivered with Restricted Rights
and the following legend is applicable:
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Use, duplication or disclosure by the Government is subject to restrictions for commercial computer software and shall be deemed
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Technical Data and Computer Software (October 1988).
This material or any portion of it may not be copied in any form or by any means without the express prior written permission of the
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All other products or company names are used for identification purposes only, and may be trademarks of their respective owners.
Author
Jill Burton
Technical Contributors and Reviewers
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Andrea Auld, Ruthann Enthof, Wally Gardipe, Adrienne Hamilton-Smith, Ray Kuzemchak,
Deborah Piper, Ron Reiley, Paul Scott
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Table of Contents
Introduction........................................................................................................................... 1-1
Introduction......................................................................................................................... 1-2
Objectives ........................................................................................................................... 1-3
Planning for the Implementation of the Primary Financial Applications ............................ 1-4
Oracle Financial Application Topics Covered in This Course............................................ 1-5
Additional Oracle Financials Information........................................................................... 1-7
The Big Picture ................................................................................................................... 1-8
Data Passed to General Ledger ........................................................................................... 1-9
Shared Entities: Account Numbers ..................................................................................... 1-10
Shared Entities: Vendors..................................................................................................... 1-11
Shared Entities: Customers ................................................................................................. 1-12
Summary ............................................................................................................................. 1-13
Oracle General Ledger ......................................................................................................... 2-1
Oracle General Ledger ........................................................................................................ 2-2
Objectives ........................................................................................................................... 2-3
Agenda ................................................................................................................................ 2-4
Oracle General Ledger Process........................................................................................... 2-5
Major Functions and Features ............................................................................................. 2-6
Using Oracle General Ledger: Overview ............................................................................ 2-7
Integrating with Subledgers................................................................................................. 2-8
Using Open Interfaces......................................................................................................... 2-9
Agenda ................................................................................................................................ 2-10
The Global Accounting Engine Program: Overview........................................................... 2-11
Why Is the Global Accounting Engine Needed?................................................................. 2-12
Features of the Global Accounting Engine.......................................................................... 2-13
Agenda ................................................................................................................................ 2-15
Elements Required for a Set of Books ................................................................................ 2-16
Chart of Accounts Structure ................................................................................................ 2-17
Accounting Calendar........................................................................................................... 2-18
Unlimited Currencies .......................................................................................................... 2-19
Chart of Accounts Structure ................................................................................................ 2-20
Creating Accounting Flexfields........................................................................................... 2-21
Defining Value Sets ............................................................................................................ 2-22
How to Create Value Sets ................................................................................................... 2-23
Validation Types ................................................................................................................. 2-24
Defining Value Sets ............................................................................................................ 2-25
Defining Segment Values.................................................................................................... 2-26
Flexible Account Hierarchies.............................................................................................. 2-29
Using Dynamic Insertion..................................................................................................... 2-30
Defining Flexfield Security Rules ....................................................................................... 2-31
Defining Cross-Validation Rules ........................................................................................ 2-32
Set of Books Options - Multiple Reporting Currencies....................................................... 2-33
Creating a Set of Books Considerations.............................................................................. 2-34
Sharing a Set of Books Across Oracle Applications ........................................................... 2-35
Accounting Flexfield Considerations .................................................................................. 2-36
Identifying Business Requirements ..................................................................................... 2-37
Analyzing Reporting Requirements .................................................................................... 2-39
Creating a Worldwide Chart of Accounts ........................................................................... 2-40
Creating Vertical Structures ................................................................................................ 2-41
Using Independent and Dependent Segments ..................................................................... 2-42
Designing Size and Segment Numbering Schemes ............................................................. 2-43
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11i Financial Applications Overview Table of Contents

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Sequencing the Segments.................................................................................................... 2-44

Using Dynamic Insertion and Cross Validation Rules ........................................................ 2-45
Using Flexfield Security Rules............................................................................................ 2-46
Summary Accounts ............................................................................................................. 2-47
Detail vs Summary Accounts .............................................................................................. 2-48
Summary and Parent Accounts ........................................................................................... 2-49
Defining Shorthand Aliases................................................................................................. 2-50
Defining Units of Measure .................................................................................................. 2-51
Average Balancing .............................................................................................................. 2-52
Agenda ................................................................................................................................ 2-53
Overview............................................................................................................................. 2-54
Journal Entry Types ............................................................................................................ 2-55
Journal Creation Methods ................................................................................................... 2-57
Accounting Calendar........................................................................................................... 2-59
Posting Journals .................................................................................................................. 2-61
Drilling Down to Journal Detail.......................................................................................... 2-62
T-Accounts.......................................................................................................................... 2-63
Demonstration..................................................................................................................... 2-64
Importing Journal Entries: Overview .................................................................................. 2-65
Recurring Journals: Overview............................................................................................. 2-66
MassAllocations: Overview ................................................................................................ 2-67
Defining MassAllocation Formulas..................................................................................... 2-68
Overview of the Period Closing Process ............................................................................. 2-69
Year-End Closing Journals.................................................................................................. 2-70
Agenda ................................................................................................................................ 2-71
Overview of Intercompany Accounting .............................................................................. 2-72
Overview of Intercompany Journals.................................................................................... 2-73
Overview of Segment Qualifiers ......................................................................................... 2-74
Intercompany Balancing Within a Single Set of Books ...................................................... 2-75
Intercompany Balancing Within a Single Set of Books (continued) ................................... 2-76
Intercompany Balancing Options ........................................................................................ 2-78
Standard Intercompany Balancing Example ....................................................................... 2-79
Standard Intercompany Balancing Example (continued) .................................................... 2-80
Enhanced Intercompany Balancing Example...................................................................... 2-82
Enhanced Intercompany Balancing Example (continued)................................................... 2-83
Intercompany Segment Balancing Example........................................................................ 2-85
Intercompany Segment Balancing Example (continued)..................................................... 2-86
Clearing Company Example Enhanced Intercompany Balancing ....................................... 2-88
Clearing Company Example Enhanced Intercompany Balancing (cont)............................. 2-89
Clearing Company Example using the Intercompany Segment........................................... 2-91
Clearing Company Example Using the Intercompany Segment (cont) ............................... 2-92
Implementation Considerations for Intercompany Balancing ............................................. 2-95
Overview of Global Intercompany System ......................................................................... 2-96
Global Intercompany System (GIS) .................................................................................... 2-97
GIS Implementation ............................................................................................................ 2-98
Agenda ................................................................................................................................ 2-99
Concepts You Should Know ............................................................................................... 2-100
Working with Multiple Currencies...................................................................................... 2-101
Foreign Currency Concepts................................................................................................. 2-102
Integrating with Subledgers................................................................................................. 2-103
Defining and Enabling Currencies ...................................................................................... 2-104
Predefined Daily Conversion Rate Types ........................................................................... 2-105
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What is Multiple Reporting Currencies?............................................................................. 2-106

Products Supporting MRC .................................................................................................. 2-107
When Do You Use MRC?................................................................................................... 2-108
Multiple Sets of Books Primary and Reporting................................................................... 2-109
Planning Your MRC Implementation.................................................................................. 2-110
Agenda ................................................................................................................................ 2-111
Overview of Consolidations................................................................................................ 2-112
Consolidation Workbench................................................................................................... 2-113
Steps to Perform Consolidations ......................................................................................... 2-114
Consolidation Implementation Considerations.................................................................... 2-115
Agenda ................................................................................................................................ 2-116
What is an Oracle Budget?.................................................................................................. 2-117
Anatomy of an Oracle Budget............................................................................................. 2-119
Demonstration..................................................................................................................... 2-120
Budget Organizations.......................................................................................................... 2-121
Defining Budget Accounts .................................................................................................. 2-123
AutoCopying Budget Organizations ................................................................................... 2-124
Entering Budget Amounts ................................................................................................... 2-125
Finalizing Budgets .............................................................................................................. 2-126
Types of Budget Entry Methods ......................................................................................... 2-127
Budgetary Control............................................................................................................... 2-128
Encumbrances ..................................................................................................................... 2-129
Agenda ................................................................................................................................ 2-130
Reporting and Analysis Capabilities ................................................................................... 2-131
Standard Reports and Listings............................................................................................. 2-132
Standard Reports and Listings (continued) ......................................................................... 2-133
Demonstration..................................................................................................................... 2-135
Financial Statement Generator ............................................................................................ 2-136
Customized Financial Reports............................................................................................. 2-137
Summary ............................................................................................................................. 2-138
Practice and Solution: Create a Journal Entry Batch....................................................... 2-139
Practice and Solution: Statistical Journal Entry .............................................................. 2-141
Practice and Solution: Journal Posting............................................................................ 2-142
Practice and Solution: Reviewing Account Balances...................................................... 2-144
Practice and Solution: Defining a Budget ....................................................................... 2-145
Practice and Solution: Define a Budget Organization..................................................... 2-146
Practice and Solution: Assigning Budget Accounts ........................................................ 2-148
Practice and Solution: Entering Budget Amounts ........................................................... 2-149
Practice and Solution: Running Standard Reports .......................................................... 2-151
Practice and Solution: Creating and Submitting a Request Set ...................................... 2-152
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Applications Desktop Integrator.......................................................................................... 3-1

Applications Desktop Integrator ......................................................................................... 3-2
Objectives ........................................................................................................................... 3-3
Agenda ................................................................................................................................ 3-4
ADI Family ......................................................................................................................... 3-5
General Ledger Functionality.............................................................................................. 3-6
Assets Functionality ............................................................................................................ 3-7
Agenda ................................................................................................................................ 3-8
ADI Journal Wizard Features.............................................................................................. 3-9
Integrating with Oracle General Ledger.............................................................................. 3-10
Create Journal Worksheet ................................................................................................... 3-11
Number of Journals ............................................................................................................. 3-12
Results................................................................................................................................. 3-13
Entering Flexfield Combinations ........................................................................................ 3-14
Cross Validation Rules........................................................................................................ 3-15
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Uploading Journal Entries to Oracle General Ledger ......................................................... 3-16

Using Journal Upload Options ............................................................................................ 3-17
Using Journal Import Options ............................................................................................. 3-19
Troubleshooting the Import Process ................................................................................... 3-20
Agenda ................................................................................................................................ 3-21
Overview of the Applications Desktop Integrator............................................................... 3-22
Audit Trail Implications...................................................................................................... 3-23
Overview of Budget Wizard ............................................................................................... 3-24
Budget Wizard Possibilities ................................................................................................ 3-25
Budget Wizard Key Benefits............................................................................................... 3-26
Agenda ................................................................................................................................ 3-27
Overview............................................................................................................................. 3-28
Overview (continued).......................................................................................................... 3-29
Define Report Features ....................................................................................................... 3-30
Define Report Features (continued) .................................................................................... 3-31
Integrating with Oracle GL ................................................................................................. 3-32
Agenda ................................................................................................................................ 3-33
Analyze Report Features ..................................................................................................... 3-34
Analyze Report Features (continued).................................................................................. 3-35
How to Start Analyze Report .............................................................................................. 3-36
How to Start Analyze Report (continued) ........................................................................... 3-37
About the Analyze Report Toolbar ..................................................................................... 3-38
Possible Drilldown Flows ................................................................................................... 3-39
Using Dimensions and Display Options.............................................................................. 3-40
How to Change Your View................................................................................................. 3-41
Agenda ................................................................................................................................ 3-42
Overview............................................................................................................................. 3-43
Use Request Center ............................................................................................................. 3-44
Using the Request Center .................................................................................................... 3-45
Toolbar Icons ...................................................................................................................... 3-46
Toolbar Icons (continued)................................................................................................... 3-47
Selecting a Report Type ...................................................................................................... 3-51
Selecting a Report Type (continued)................................................................................... 3-52
Selecting Publishing Options .............................................................................................. 3-53
Overview of Web Publishing .............................................................................................. 3-54
Using Themes ..................................................................................................................... 3-55
Agenda ................................................................................................................................ 3-56
Overview............................................................................................................................. 3-57
Integrating with General Ledger ......................................................................................... 3-58
Parent Levels in an Account Hierarchy............................................................................... 3-60
Agenda ................................................................................................................................ 3-61
ADI Integration ................................................................................................................... 3-62
ADI Features ....................................................................................................................... 3-63
Create Assets....................................................................................................................... 3-64
Creating Assets.................................................................................................................... 3-65
Import Text Files................................................................................................................. 3-66
Importing Text Files............................................................................................................ 3-67
Record Physical Inventory .................................................................................................. 3-68
Recording Physical Inventory ............................................................................................. 3-69
Summary ............................................................................................................................. 3-70
Practice and Solution: Using the Journal Wizard............................................................ 3-71
Practice and Solution: Using the Report Wizard............................................................. 3-73
Practice and Solution: Using the Request Center ............................................................ 3-74
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Suppliers ................................................................................................................................ 4-1

Suppliers ............................................................................................................................. 4-2

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Objectives ........................................................................................................................... 4-3

Agenda ................................................................................................................................ 4-4
Supplier and Supplier Site Settings ..................................................................................... 4-5
Entering Supplier Information............................................................................................. 4-6
Overview of Entering Information at the Supplier Site Level ............................................. 4-8
Demonstration..................................................................................................................... 4-9
Entering Flexible Address Format Information................................................................... 4-10
Entering Employees as Suppliers ........................................................................................ 4-11
Maintaining Supplier and Supplier Site Information........................................................... 4-12
Supplier Reports.................................................................................................................. 4-13
Merging Suppliers............................................................................................................... 4-15
Agenda ................................................................................................................................ 4-17
Relationship to Release 11i Applications............................................................................ 4-18
Oracle Purchasing ............................................................................................................... 4-20
Oracle Purchasing Overview............................................................................................... 4-21
Integrating with Oracle Applications .................................................................................. 4-22
Implementing Supplier Management .................................................................................. 4-23
Multiple Organization Overview......................................................................................... 4-24
Defining Approved Suppliers.............................................................................................. 4-26
Approved Suppliers List Overview..................................................................................... 4-27
Rules to Specify Preferred Suppliers: Sourcing Rules ........................................................ 4-28
For More Information ......................................................................................................... 4-29
Summary ............................................................................................................................. 4-30
Practice and Solution: Creating a New Supplier ............................................................. 4-31
Oracle Purchasing................................................................................................................. 5-1
Oracle Purchasing ............................................................................................................... 5-2
Objectives ........................................................................................................................... 5-3
Agenda ................................................................................................................................ 5-4
Product Integration Overview ............................................................................................. 5-5
Agenda ................................................................................................................................ 5-6
Why Purchase Requisitions? ............................................................................................... 5-7
Where Purchase Requisitions Fit ........................................................................................ 5-8
Oracle Purchasing Purchase Requisitions ........................................................................... 5-9
Information Flow for Purchase Requisitions....................................................................... 5-10
Access Levels...................................................................................................................... 5-11
Options for Security, Approval Limits, and Approval Routing........................................... 5-12
Agenda ................................................................................................................................ 5-13
Overview of a Request for Quotation.................................................................................. 5-14
Sourcing Rules Overview.................................................................................................... 5-15
Agenda ................................................................................................................................ 5-16
Purchase Order Process....................................................................................................... 5-17
Process Inputs and Outputs ................................................................................................. 5-18
Where Purchase Orders Come From................................................................................... 5-19
Information Flow for Purchase Orders................................................................................ 5-20
Purchase Order Management Interfaces.............................................................................. 5-21
E-Commerce Capabilities ................................................................................................... 5-22
Overview of Purchase Order Creation ................................................................................ 5-23
Overview of Purchase Order Maintenance.......................................................................... 5-24
Demonstration..................................................................................................................... 5-25
Agenda ................................................................................................................................ 5-26
Receiving in Oracle Purchasing .......................................................................................... 5-27
Agenda ................................................................................................................................ 5-28
Required Setup Steps for Oracle Purchasing...................................................................... 5-29
Purchasing Accounting Considerations............................................................................... 5-30
Overview of Purchasing Period-End Accrual Cycle ........................................................... 5-31
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Accounting Implementation Considerations ....................................................................... 5-32

Inventory Setup Requirements ............................................................................................ 5-33
Inventory Implementation Considerations .......................................................................... 5-34
Purchasing Options ............................................................................................................. 5-36
Financial Options ................................................................................................................ 5-37
Requisition Implementation Considerations........................................................................ 5-38
Purchase Order Implementation Considerations ................................................................. 5-40
Receiving Implementation Considerations.......................................................................... 5-41
Summary ............................................................................................................................. 5-42
Practice and Solution: Create a Purchase Order.............................................................. 5-43
Oracle Payables..................................................................................................................... 6-1
Oracle Payables................................................................................................................... 6-2
Objectives ........................................................................................................................... 6-3
Agenda ................................................................................................................................ 6-4
Overview of Oracle Payables .............................................................................................. 6-5
Oracle Product Integration .................................................................................................. 6-6
Oracle Payables Integration ................................................................................................ 6-7
Five Major Processes .......................................................................................................... 6-10
Oracle Payables Processes .................................................................................................. 6-11
Flow of Default Values ....................................................................................................... 6-12
Agenda ................................................................................................................................ 6-13
Entering Invoices: Overview............................................................................................... 6-14
Oracle Payables Invoice Types ........................................................................................... 6-15
Invoice Distribution Types.................................................................................................. 6-17
Approving Invoices: Overview ........................................................................................... 6-19
Approving Invoices............................................................................................................. 6-20
Accounting for Invoices ...................................................................................................... 6-21
Demonstration..................................................................................................................... 6-22
Overview of Expense Reporting ......................................................................................... 6-23
Setting Up Invoice Payables Options.................................................................................. 6-24
Invoice-Matching Considerations ....................................................................................... 6-25
Demonstration..................................................................................................................... 6-26
Prepayment Considerations................................................................................................. 6-27
Agenda ................................................................................................................................ 6-28
Issuing Payments: Overview ............................................................................................... 6-29
Payment Features ................................................................................................................ 6-30
Oracle Payables Payment Methods ..................................................................................... 6-32
Future-Dated Payments ....................................................................................................... 6-33
Payment Batches: Overview of the Steps............................................................................ 6-34
Demonstration..................................................................................................................... 6-35
Accounting for Payments .................................................................................................... 6-36
Cash Control Features ......................................................................................................... 6-37
Defining Pay Groups........................................................................................................... 6-38
Defining Payment Terms..................................................................................................... 6-39
Taking Invoice Discounts.................................................................................................... 6-40
Discount Reports................................................................................................................. 6-41
Defining Banks.................................................................................................................... 6-42
Demonstration..................................................................................................................... 6-44
Setting Up Financials Options for Payments....................................................................... 6-45
Setting Up Payables Options for Payments......................................................................... 6-46
Agenda ................................................................................................................................ 6-48
Overview of the Period Closing Process ............................................................................. 6-49
Transferring Accounting Details to the General Ledger ..................................................... 6-50
Accounting and Reconciliation Reports.............................................................................. 6-51
Agenda ................................................................................................................................ 6-52
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Overview of Tax in Oracle Applications............................................................................. 6-53

Global Taxes Overview....................................................................................................... 6-55
Tax/VAT Overview ............................................................................................................ 6-56
Summary ............................................................................................................................. 6-58
Practice and Solution Template....................................................................................... 6-59
Practice and Solution: Defining a Bank .......................................................................... 6-62
Practice and Solution: Creating a Payment Batch ........................................................... 6-64
Customers .............................................................................................................................. 7-1
Customers............................................................................................................................ 7-2
Objectives ........................................................................................................................... 7-3
Agenda ................................................................................................................................ 7-4
Managing Customers........................................................................................................... 7-5
What is the New Customer Model? .................................................................................... 7-6
New Customer Model Benefit............................................................................................. 7-7
Entities of the New Customer Model .................................................................................. 7-8
New Customer Model ......................................................................................................... 7-9
Organization or Person Customer Registry ......................................................................... 7-10
Organization or Person Customer Relationships................................................................. 7-11
Customer Accounts ............................................................................................................. 7-12
Customer Accounts Link with Organization or Person Customer....................................... 7-13
Agenda ................................................................................................................................ 7-14
Profile Classes..................................................................................................................... 7-15
Customer Profile Class Characteristics ............................................................................... 7-16
Agenda ................................................................................................................................ 7-17
Customer Entry Methods .................................................................................................... 7-18
Business Issues.................................................................................................................... 7-19
Using Standard and Quick Customer Entry......................................................................... 7-20
Demonstration..................................................................................................................... 7-22
Agenda ................................................................................................................................ 7-23
Customer Relationships....................................................................................................... 7-24
Customer Relationship Examples........................................................................................ 7-26
Agenda ................................................................................................................................ 7-27
Merge Overview.................................................................................................................. 7-28
Controlling the Merge Process............................................................................................ 7-29
Summary ............................................................................................................................. 7-31
Practice and Solution: Define a Customer Profile Class ................................................. 7-32
Practice and Solution: Entering a New Customer ........................................................... 7-34
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Oracle Order Management .................................................................................................. 8-1

Oracle Order Management .................................................................................................. 8-2
Objectives ........................................................................................................................... 8-3
Agenda ................................................................................................................................ 8-4
Oracle Order Management Suite......................................................................................... 8-5
Basic Pricing (Part of OM) ................................................................................................. 8-6
Oracle Shipping Execution
(Packaged with OM) ...................................................... 8-7
Oracle Order Management Features.................................................................................... 8-8
Order Management Interfaces ............................................................................................. 8-9
Overview: Order Management Integration Points............................................................... 8-10
Order Management Portal (Part of OM) ............................................................................. 8-12
Credit Card Processing........................................................................................................ 8-13
Agenda ................................................................................................................................ 8-14
Basic Order Process ............................................................................................................ 8-15
Order Entry Methods .......................................................................................................... 8-16
Basic Order Process Flows.................................................................................................. 8-17
Demonstration..................................................................................................................... 8-18
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Returns ................................................................................................................................ 8-19

Vendor Drop Shipments...................................................................................................... 8-20
Vendor Drop Ship or Combination Standard with Drop Ship Order Flow ......................... 8-21
Pricing................................................................................................................................. 8-22
Configurator ........................................................................................................................ 8-23
Agenda ................................................................................................................................ 8-24
Standard Return................................................................................................................... 8-25
Agenda ................................................................................................................................ 8-26
Setup and Implementation................................................................................................... 8-27
Reports ................................................................................................................................ 8-29
Agenda ................................................................................................................................ 8-30
Shipping Execution Concepts ............................................................................................. 8-31
Material Picking (Pick Release).......................................................................................... 8-36
Pick Confirmation ............................................................................................................... 8-37
Ship Confirmation Business Flow....................................................................................... 8-39
Prerequisites for Ship Confirmation.................................................................................... 8-40
Summary ............................................................................................................................. 8-41
Practice and Solution: Create Sales Order and Invoice................................................... 8-42
Oracle Receivables ................................................................................................................ 9-1
Oracle Receivables.............................................................................................................. 9-2
Objectives ........................................................................................................................... 9-3
Agenda ................................................................................................................................ 9-4
Overview of Receivables .................................................................................................... 9-5
Agenda ................................................................................................................................ 9-6
Transaction Overview ......................................................................................................... 9-7
Transaction Classes............................................................................................................. 9-8
Invoice Entry Methods........................................................................................................ 9-10
Standard Invoice Line Types............................................................................................... 9-11
Completing Transactions..................................................................................................... 9-12
Demonstration..................................................................................................................... 9-13
Creating Invoices for Services ............................................................................................ 9-14
Invoicing Rules and Accounting Rules ............................................................................... 9-15
Invoice Correction Methods................................................................................................ 9-16
Overview of Corrections ..................................................................................................... 9-17
Applying Credits ................................................................................................................. 9-19
Comparing Commitment Types .......................................................................................... 9-20
Agenda ................................................................................................................................ 9-21
AutoInvoice Overview ........................................................................................................ 9-22
Integration ........................................................................................................................... 9-23
AutoInvoice Process ........................................................................................................... 9-24
What Occurs During AutoInvoice....................................................................................... 9-25
AutoInvoice Validation Checks- Overview......................................................................... 9-26
Setting Up AutoInvoice....................................................................................................... 9-27
Implementation Considerations for AutoInvoice ................................................................ 9-28
Agenda ................................................................................................................................ 9-29
Implementation Considerations for Converting Invoices .................................................... 9-30
Required Setup Steps for Transactions ............................................................................... 9-31
Profile Options .................................................................................................................... 9-32
Optional Setup Steps for Transactions ................................................................................ 9-33
Agenda ................................................................................................................................ 9-34
Overview of Receipts .......................................................................................................... 9-35
Receipt Entry Methods........................................................................................................ 9-36
Entering Manual Receipts ................................................................................................... 9-37
Demonstration..................................................................................................................... 9-38
Entering AutoLockbox Receipts ......................................................................................... 9-39
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Automatic Receipts ............................................................................................................. 9-40

Credit Card Receipt Process ............................................................................................... 9-41
Setting Up Credit Card Receipts ......................................................................................... 9-43
Agenda ................................................................................................................................ 9-44
Collection Cycle.................................................................................................................. 9-45
Collection Scenarios ........................................................................................................... 9-46
Oracle Receivables Reports ................................................................................................ 9-47
Agenda ................................................................................................................................ 9-48
Overview of US Sales Tax .................................................................................................. 9-49
US Sales Tax....................................................................................................................... 9-50
Oracle Receivables Tax Overview...................................................................................... 9-51
Global Taxes Overview....................................................................................................... 9-52
Tax/VAT Overview ............................................................................................................ 9-53
Oracle Order Management Global Taxes Overview ........................................................... 9-54
Oracle Receivables Global Taxes Overview....................................................................... 9-55
Setup Steps.......................................................................................................................... 9-56
Summary ............................................................................................................................. 9-57
Practice and Solution: Creating a Standard Invoice ........................................................ 9-58
Practice and Solution: Creating Recurring Invoices........................................................ 9-60
Practice and Solution: Enter and Apply Receipts............................................................ 9-61
Oracle Asset Management.................................................................................................... 10-1
Oracle Asset Management................................................................................................... 10-2
Objectives ........................................................................................................................... 10-3
Agenda ................................................................................................................................ 10-4
Managing Fixed Assets ....................................................................................................... 10-5
Managing Assets ................................................................................................................. 10-6
Agenda ................................................................................................................................ 10-7
Oracle Assets Transactions ................................................................................................. 10-8
Adding an Asset Manually .................................................................................................. 10-9
Demonstration..................................................................................................................... 10-10
Adjusting Assets.................................................................................................................. 10-11
Adjusting the Value of Assets ............................................................................................. 10-12
Depreciating an Asset ......................................................................................................... 10-13
Depreciation........................................................................................................................ 10-14
Depreciation Methods ......................................................................................................... 10-15
Retiring an Asset ................................................................................................................. 10-16
Retiring and Reinstating Assets........................................................................................... 10-17
Viewing Asset Information ................................................................................................. 10-18
Viewing Assets Online........................................................................................................ 10-19
Agenda ................................................................................................................................ 10-20
Adding Assets from External Sources Using Mass Additions ............................................ 10-21
Mass Additions ................................................................................................................... 10-22
Adding an Asset from Invoice Lines................................................................................... 10-23
Adding and Capitalizing a CIP Asset.................................................................................. 10-24
Integrating with Capital Projects......................................................................................... 10-25
Using the Mass Additions Interface .................................................................................... 10-26
Agenda ................................................................................................................................ 10-27
Budgeting............................................................................................................................ 10-28
Projecting Depreciation....................................................................................................... 10-29
Agenda ................................................................................................................................ 10-30
Creating a Tax Book ........................................................................................................... 10-31
Creating Tax Books ............................................................................................................ 10-32
Maintaining a Tax Book...................................................................................................... 10-33
Sharing Information Among Books .................................................................................... 10-34
Agenda ................................................................................................................................ 10-36
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Reporting, Reconciling, and Inventory Processing ............................................................. 10-37

Reconciling ......................................................................................................................... 10-38
Performing Asset Inventory ................................................................................................ 10-39
Agenda ................................................................................................................................ 10-40
Integrating the Oracle Assets Product ................................................................................. 10-41
Using Mass Additions to Integrate with Other Products ..................................................... 10-42
Creating Journal Entries to the General Ledger .................................................................. 10-43
Setting Up Oracle Assets..................................................................................................... 10-44
Setting Up Controls in Oracle Assets.................................................................................. 10-46
Asset Accounting Information ............................................................................................ 10-47
Defining Depreciation......................................................................................................... 10-48
Asset Categories.................................................................................................................. 10-49
Setting Up Additional Options............................................................................................ 10-50
Planning the Implementation............................................................................................... 10-51
Deciding on the Setup Structure.......................................................................................... 10-52
Determining the Conversion Period .................................................................................... 10-53
Obtaining Asset Information ............................................................................................... 10-54
Inquiring About Company History...................................................................................... 10-55
Planning Flexfield Structures .............................................................................................. 10-56
Planning the Category Flexfield.......................................................................................... 10-57
Planning the Location Flexfield .......................................................................................... 10-58
Planning the Asset Key Flexfield ........................................................................................ 10-59
Planning Asset Numbering.................................................................................................. 10-60
Transferring Information into Oracle Assets....................................................................... 10-61
Transferring Information..................................................................................................... 10-62
Reconciling Asset Information............................................................................................ 10-63
Considering Other Conversion Issues ................................................................................. 10-64
Summary ............................................................................................................................. 10-65
Practice and Solution: Manual Asset Additions .............................................................. 10-66
Oracle Cash Management .................................................................................................... 11-1
Oracle Cash Management ................................................................................................... 11-2
Objectives ........................................................................................................................... 11-3
Agenda ................................................................................................................................ 11-4
Overview of Reconciliation................................................................................................. 11-5
Oracle Receivables and Payables........................................................................................ 11-6
Oracle General Ledger, Payroll, and External Systems...................................................... 11-7
Reconciliation Integration ................................................................................................... 11-8
Reconciling Bank Statements Automatically ...................................................................... 11-9
Entering Bank Information.................................................................................................. 11-10
Bank Reconciliation Overview ........................................................................................... 11-11
Bank Statement Open Interface........................................................................................... 11-12
Agenda ................................................................................................................................ 11-13
Oracle Cash Management Reports ...................................................................................... 11-14
Oracle Cash Management Statement Reports ..................................................................... 11-15
Oracle Cash Management Transaction Reports .................................................................. 11-16
Oracle Cash Management Listings...................................................................................... 11-17
Agenda ................................................................................................................................ 11-18
Cash Forecasting Overview................................................................................................. 11-19
Defining a Forecast Template ............................................................................................. 11-20
Generating a Cash Forecast................................................................................................. 11-21
Agenda ................................................................................................................................ 11-22
Setting Up Oracle Cash Management and Related Products............................................... 11-23
Setting Up Oracle General Ledger ...................................................................................... 11-24
Setting Up Oracle Payables for Cash Management Integration ......................................... 11-25
Setting Up Banks for Oracle Cash Management................................................................ 11-26
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Setting Up Oracle Receivables for Oracle Cash Management ........................................... 11-27

Setting Up for Bank Reconciliation Integration with Payroll.............................................. 11-28
Setting Up Payroll for Oracle Cash Management Integration ............................................. 11-29
Summary ............................................................................................................................. 11-30
Oracle Workflow................................................................................................................... 12-1
Oracle Workflow................................................................................................................. 12-2
Objectives ........................................................................................................................... 12-3
Agenda ................................................................................................................................ 12-4
Oracle Workflow................................................................................................................. 12-5
Workflow Driven Business Processes................................................................................. 12-6
Example Workflow Processes............................................................................................. 12-7
Designing Business Processes for Change .......................................................................... 12-8
Workflow is Essential ......................................................................................................... 12-9
Expense Report Processing ................................................................................................. 12-10
Common Expense Reports Questions ................................................................................. 12-11
Expense Report Processing ................................................................................................. 12-12
Expense Report Processing @ Oracle................................................................................. 12-13
Agenda ................................................................................................................................ 12-14
Workflow Overview............................................................................................................ 12-15
Workflow Architecture ....................................................................................................... 12-16
Oracle Workflow Features and Definitions......................................................................... 12-17
Oracle Workflow Builder.................................................................................................... 12-18
Workflow Process Definition.............................................................................................. 12-19
Supported Process Constructs ............................................................................................. 12-20
Workflow Engine ................................................................................................................ 12-22
Workflow Definitions Loader ............................................................................................. 12-23
Notification System............................................................................................................. 12-24
Notification Worklist Web Page ......................................................................................... 12-25
Notification Details Web Page............................................................................................ 12-26
Email Notifications ............................................................................................................. 12-27
Email Notifications - Response Template ........................................................................... 12-28
Oracle Workflow Monitor................................................................................................... 12-29
Summary ............................................................................................................................. 12-32
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Oracle System Administration ............................................................................................. 13-1

Oracle System Administration ............................................................................................ 13-2
Objectives ........................................................................................................................... 13-3
Agenda ................................................................................................................................ 13-4
System Administrator Functional Block Diagram.............................................................. 13-5
System Administration Functions........................................................................................ 13-7
Managing Application Security: Overview ........................................................................ 13-8
Managing Function Security ............................................................................................... 13-9
Concurrent Requests, Programs, and Managers................................................................. 13-10
Business Needs for Concurrent Processing......................................................................... 13-11
Business Needs for Standard Request Submission.............................................................. 13-12
System Administrator Monitoring Privileges ...................................................................... 13-13
Profile Hierarchy Levels ..................................................................................................... 13-14
Personal Profile Values....................................................................................................... 13-15
System Profile Options........................................................................................................ 13-16
Auditing Oracle Applications.............................................................................................. 13-17
Auditing User Activity ........................................................................................................ 13-18
Using Document Sequences................................................................................................ 13-19
Specifying Sequence Information ....................................................................................... 13-20
Summary ............................................................................................................................. 13-21
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Oracle Flexfields.................................................................................................................... 14-1


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Oracle Flexfields ................................................................................................................. 14-2

Objectives ........................................................................................................................... 14-3
Agenda ................................................................................................................................ 14-4
Customizing Oracle Applications........................................................................................ 14-5
Flexfield Structures and Flexfield Segments....................................................................... 14-6
Segment Prompts and Value Descriptions .......................................................................... 14-7
Validating Input Using Value Sets ...................................................................................... 14-8
Agenda ................................................................................................................................ 14-9
Key and Descriptive Flexfields ........................................................................................... 14-10
Key Flexfields ..................................................................................................................... 14-11
Intelligent Keys ................................................................................................................... 14-12
Key Flexfield Example: Accounting Flexfield .................................................................... 14-14
Key Flexfield Example: Asset Category Flexfield .............................................................. 14-15
Oracle Applications Key Flexfields .................................................................................... 14-16
Descriptive Flexfields ......................................................................................................... 14-17
Using Reference Fields ....................................................................................................... 14-18
Using Different Contexts: Asset Category Flexfield ........................................................... 14-19
Oracle Applications Descriptive Flexfields (Partial).......................................................... 14-20
SRS and Flexfields.............................................................................................................. 14-21
Agenda ................................................................................................................................ 14-22
Benefits of Flexfields .......................................................................................................... 14-23
Storing Flexfield Data Internally......................................................................................... 14-24
Steps to Implement a Flexfield............................................................................................ 14-25
Overview of Flexfields Summary........................................................................................ 14-26
Summary ............................................................................................................................. 14-27
Appendix A: Oracle iProcurement ...................................................................................... 15-1
Appendix A: Oracle iProcurement ...................................................................................... 15-2
Objectives ........................................................................................................................... 15-3
Agenda ................................................................................................................................ 15-4
What is Internet Procurement?............................................................................................ 15-5
iProcurement ....................................................................................................................... 15-6
What is Oracle Internet Procurement? ................................................................................ 15-7
Agenda ................................................................................................................................ 15-8
Oracles Internet Procurement Components........................................................................ 15-9
Empower Your Users.......................................................................................................... 15-11
Ordering in the Procurement Process.................................................................................. 15-12
Ordering Using Catalog Search........................................................................................... 15-14
Non-production Procurement.............................................................................................. 15-15
Oracle Purchasing Intelligence............................................................................................ 15-16
Purchasing Intelligence System Benefits............................................................................. 15-17
More Purchasing Intelligence System Benefits ................................................................... 15-18
Purchasing Intelligence Homepage ..................................................................................... 15-19
Oracle iSupplier Portal........................................................................................................ 15-20
Summary ............................................................................................................................. 15-22
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Appendix B: Oracle Self-Service Web Applications .......................................................... 16-1

Appendix B: Oracle Self-Service Web Applications .......................................................... 16-2
Objectives ........................................................................................................................... 16-3
Agenda ................................................................................................................................ 16-4
The Self-Service Business Model ....................................................................................... 16-5
Benefits of Self-Service ...................................................................................................... 16-6
Increase Workforce Productivity with the Employee Portal ............................................... 16-7
Agenda ................................................................................................................................ 16-8
Release 11i OSSWA ........................................................................................................... 16-9
Self-Service HR .................................................................................................................. 16-10
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Oracle iStore, iPayment and iMarketing ............................................................................. 16-12

Self-Service Expenses ......................................................................................................... 16-14
Self Service Time................................................................................................................ 16-15
iReceivables ........................................................................................................................ 16-16
eTravel from Oracle ............................................................................................................ 16-18
Summary ............................................................................................................................. 16-19
Appendix C: Oracle Multi-Org............................................................................................ 17-1
Appendix C: Oracle Multi-Org ........................................................................................... 17-2
Objectives ........................................................................................................................... 17-3
Basic Business Needs.......................................................................................................... 17-4
What Is Multi-Org? ............................................................................................................. 17-5
Multi-Org Features.............................................................................................................. 17-7
Architectural Model ............................................................................................................ 17-8
Using a Single Installation of Oracle Applications ............................................................. 17-9
Architectural Model Comparison........................................................................................ 17-10
Organization Model ............................................................................................................ 17-11
Accounting/Distribution/Materials Management Organization Model ............................... 17-17
Selling and Shipping Products from Different Set of Books............................................... 17-18
Intercompany Sales Invoicing Features............................................................................... 17-19
Global Customer and Supplier Registries ........................................................................... 17-20
Global Registries................................................................................................................. 17-21
Summary ............................................................................................................................. 17-22
Appendix D: Oracle Projects ............................................................................................... 18-1
Appendix D: Oracle Projects .............................................................................................. 18-2
Objectives ........................................................................................................................... 18-3
Purpose of Oracle Projects.................................................................................................. 18-4
How to Use Oracle Projects ................................................................................................ 18-5
Overview of Oracle Projects ............................................................................................... 18-6
Project Definition................................................................................................................ 18-8
Project Classes .................................................................................................................... 18-9
Using the Information Stored in Oracle Projects ............................................................... 18-10
Central Repository .............................................................................................................. 18-13
Project Costing.................................................................................................................... 18-14
Project Billing ..................................................................................................................... 18-15
Oracle Projects Features...................................................................................................... 18-16
Project-Tracking Tools ....................................................................................................... 18-18
Work Breakdown Structure................................................................................................. 18-20
Project Budgets ................................................................................................................... 18-21
Cost Collection and Calculation Capabilities..................................................................... 18-23
Types of Cost ...................................................................................................................... 18-24
Methods of Cost Entry ........................................................................................................ 18-25
Cost Controls ...................................................................................................................... 18-27
Cost Calculations ................................................................................................................ 18-28
Multiple-Organization Support ........................................................................................... 18-29
Multinational Support ......................................................................................................... 18-30
Function Security ................................................................................................................ 18-31
Function Security Example ................................................................................................. 18-32
Project and Labor Cost Security ......................................................................................... 18-33
Project and Function Security ............................................................................................. 18-34
Project Asset Creation......................................................................................................... 18-35
Capitalization of Project Costs............................................................................................ 18-36
Flexible Revenue Accrual and Invoicing Functions........................................................... 18-38
Revenue Accrual and Billing .............................................................................................. 18-39
Billing Controls................................................................................................................... 18-40
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Online Reporting and Hard Copy Reporting....................................................................... 18-42

Online Inquiry and Reporting.............................................................................................. 18-43
Sub Ledger Accounting....................................................................................................... 18-44
Full Adjustment Capabilities............................................................................................... 18-45
Transferring Transactions ................................................................................................... 18-47
Other Cost Adjustments ...................................................................................................... 18-48
Billing Transaction Adjustments......................................................................................... 18-49
Integration with Other Oracle and Non-Oracle Financial Applications ............................. 18-50
Oracle Projects Interfaces ................................................................................................... 18-51
Overview of Activity Management Gateway ...................................................................... 18-56
Integration with External Systems....................................................................................... 18-57
Overview of Oracle Project Connect................................................................................... 18-59
Attachments......................................................................................................................... 18-60
Summary ............................................................................................................................. 18-61
11i Financials Comprehensive Exercise .............................................................................. 19-1
11i Financials Comprehensive Exercise.............................................................................. 19-2
Practice and Solution: 11i Financials Comprehensive Exercise...................................... 19-3
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Preface
Profile
Before You Begin This Course
Before you begin this course, you should have the following qualifications:
Working experience with a general financial environment.
Prerequisites
There are no prerequisites for this course.
How This Course Is Organized

11i Financial Applications Overview is an instructor-led course featuring lecture and hands-on
exercises. Online demonstrations and written practice sessions reinforce the concepts and skills
introduced.
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Typographic Conventions
Typographic Conventions in Text
Convention
Bold italic
Element
Glossary term (if
there is a glossary)
Example
The algorithm inserts the new key.
Caps and
lowercase
Buttons,
check boxes,
triggers,
windows
Click the Executable button.

Select the Cant Delete Card check box.
Assign a When-Validate-Item trigger to the
ORD block.
Open the Master Schedule window.
Courier new,
case sensitive
(default is
lowercase)
Code output,
directory names,
filenames,
passwords,
pathnames,
URLs,
user input,
usernames
Code output: debug.set (I, 300);

Directory: bin (DOS), $FMHOME (UNIX)
Filename: Locate the init.ora file.
Password: User tiger as your password.
Pathname: Open c:\my_docs\projects
URL: Go to http://www.oracle.com
User input: Enter 300
Username: Log on as scott
Initial cap
Graphics labels
(unless the term is a
proper noun)
Customer address (but Oracle Payables)
Emphasized words
and phrases,
titles of books and
courses,
variables
Interface elements
with long names
that have only
initial caps;
lesson and chapter
titles in crossreferences
Do not save changes to the database.

For further information, see Oracle7 Server
SQL Language Reference Manual.
Enter user_id@us.oracle.com,
where user_id is the name of the user.
Select Include a reusable module component
and click Finish.
Italic
Quotation
marks
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Uppercase
cl
This subject is covered in Unit II, Lesson 3,

Working with Objects.
SQL column
names, commands,
functions, schemas,
table names
Use the SELECT command to view

information stored in the LAST_NAME
column of the EMP table.
Element
Example
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Convention
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Arrow
Brackets
Menu paths
Key names
Select File> Save.

Press [Enter].
Commas
Key sequences
Plus signs
Key combinations
Press and release keys one at a time:

[Alternate], [F], [D]
Press and hold these keys simultaneously:
[Ctrl]+[Alt]+[Del]
Typographic Conventions in Code

Convention
Caps and
lowercase
Lowercase
Lowercase
italic
Uppercase
Element
Oracle Forms
triggers
Column names,
table names
Example
When-Validate-Item
Passwords
PL/SQL objects
DROP USER scott

IDENTIFIED BY tiger;
OG_ACTIVATE_LAYER
(OG_GET_LAYER
(prod_pie_layer))
Syntax variables
CREATE ROLE role
SELECT last_name
FROM s_emp;
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SQL commands and SELECT userid

FROM emp;
functions
Typographic Conventions in Navigation Paths
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This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
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(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
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This simplified path translates to the following:
1.
(N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.
2.
(M) From the menu, select Query then Find.
3.
(B) Click the Approve button.
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Notations :
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(N) = Navigator
(I) = Icon
(M) = Menu
(H) = Hyperlink

xvii
(T) = Tab
(B) = Button
Typographical Conventions in Help System Paths

This course uses a navigation path convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example
(Help) General Ledger > Journals > Enter Journals
represents the following sequence of actions:
1.
In the navigation frame of the help system window, expand the General Ledger entry.
2.
Under the General Ledger entry, expand Journals.
3.
Under Journals, select Enter Journals.
4.
Review the Enter Journals topic that appears in the document frame of the help system
window.
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Introduction
Chapter 1
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Introduction
Chapter 1 - Page 1
Introduction
Introduction
Module 1
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Introduction
Chapter 1 - Page 2
Objectives
Objectives
After completing this course, you should be able to do
the following:
Determine the appropriate setup options and
implementation considerations when implementing
the primary Oracle eBusiness financial applications
Describe the features and characteristics of Oracles
common modules in relation to implementing
financial applications
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Introduction
Chapter 1 - Page 3
Planning for the Implementation of the Primary

Financial Applications
Planning for the Implementation of the
Primary Financial Applications
What are the core financial applications that you will
need to manage you enterprise?
How do you implement the flow of information from
the purchase of business items to the payment and
tracking of them?
How to you identify issues in the entry of customer
orders and receipt of payments?
What other Oracle features and products would help
you to imple ment and manage your business
processes?
How do you plan to integrate legacy system
information, and will you need to extend
applications?
1-3
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Introduction
Chapter 1 - Page 4
Oracle Financial Application Topics Covered in This

Course
Oracle Financial Application Topics
Covered in This Course
Oracle General Ledger

Application Desktop Integrator
Supplier Management
Oracle Purchasing
Oracle Payables
Customer Management
Oracle Order Management
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Introduction
Chapter 1 - Page 5
Oracle Financial Application Topics Covered in This

Course
Oracle Financial Application Topics
Covered in This Course
Oracle Receivables
Oracle Assets
Oracle Cash Management
Oracle Workflow
Oracle Systems Administration
Oracle Flexfields
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Introduction
Chapter 1 - Page 6
Additional Oracle Financials Information

Additional Oracle Financials Information
There are additional topics not part of the standard
presentation of this course that are included in
appendices at the end of this courseware. They are:
Oracle iProcurement
Oracle Self-Service Applications
Multi-Org
Oracle Projects
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Introduction
Chapter 1 - Page 7
The Big Picture

The Big Picture
INVENTOR Y INTERF ACE
PO
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P
ITEMS
INV
Account Generator
Material Receipts
MATCHING
Accrued
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Receipts
MASS
ADDITIONS
FA
Additions
Au toaccounting
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T
Material shipments
REC INTF
Cost of Goods sold
AUTOINVOICE M
Standard cost adj.
Physical inv. adj.
AP
OE
ITEMS
Expenses
AR
R
S
AR Assets
Liabilities
Revenue
TR ANSFERS TO GL
Cash out
Cash in
Depreciation
GL
Retirements
Transfers
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Introduction
Chapter 1 - Page 8
Data Passed to General Ledger

Data Passed to General Ledger
PO
OE
INV
Material Receipts
Accrued
Material shipments
Receipts
Cost of Goods sold

Standard cost adj.
Physical inv. adj.
AP
AR
FA
Expenses
AR Assets
Liabilities
Revenue
Additions
Cash out
Cash in
Depreciation
GL
Retirements
Transfers
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Introduction
Chapter 1 - Page 9
Shared Entities: Account Numbers

Shared Entities: Account Numbers
Key flexfield: Multi-part unique identifier which
allows Oracle Financial applications to be used by a
wide variety of customers with different account
structures. It is used by all financial modules.
Reporting: The requirements of all systems should
be considered. For example, the level of detail for
expense tracking vs. revenue tracking. You should
determine if you need the information in GL or if you
can get it from other systems like Project
Accounting or Sales Analyzer. This is the most
important part of financials setup.
Security: Value security controls access to account
numbers by responsibility. Cross-validation rules
prevent use of invalid combinations in all modules.
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Introduction
Chapter 1 - Page 10
Shared Entities: Vendors

Shared Entities: Vendors
Vendors are defined in one set of tables and shared
by Purchasing, Accounts Payable, Fixed Assets
(and Projects).
Who owns the supplier master? (AP or PO)
If you use multi-org, supplier information at the
header level is visible across operating units, but
address information is visible only to the operating
unit which created it.
Implementation considerations: For example,
naming conventions, numbering, and payment
terms.
Flow of defaults: AP
Setup>Supplier>Site>Item>Document
Default accounts: Liability and prepayment.
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Introduction
Chapter 1 - Page 11
Shared Entities: Customers

Shared Entities: Customers
Customers are defined in one set of tables and are
visible to Order Management, Receivables and
Projects.
Who owns the customer master? (OE or AR)
If you are using multi-org, customer information at
the header level is visible across all operating units,
address information is visible only to the operating
unit which created it.
Implementation considerations: Customer profile
information, naming conventions, payment terms,
flow of default information (standard value rule sets
in OM).
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Introduction
Chapter 1 - Page 12
Summary
Summary
Upon completing this course, you should be able to:
Determine the appropriate setup options and
implementation considerations when implementing
the primary Oracle eBusiness financial applications.
Describe the features and characteristics of
Oracles common modules in relation to
implementing financial applications.
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Introduction
Chapter 1 - Page 13
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Introduction
Chapter 1 - Page 14

Chapter 2
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Chapter 2 - Page 1
Module 2
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Chapter 2 - Page 2
Objectives
Objectives
After completing this module, you should be able to do
the following:
Describe the process flow of Oracle General Ledger
Identify the setup steps and implementation
considerations for Oracle General Ledger
Describe reporting options that can be used when
implementing Oracle applications
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Chapter 2 - Page 3
Agenda
Agenda
General Ledger process

Global Accounting Engine
Set of Books
Journal Entries
Intercompany Accounting
Multiple Reporting Currencies
Consolidations
Budgeting
Reporting
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Chapter 2 - Page 4
Oracle General Ledger Process

Oracle General Ledger Process
Setup
Transaction
proce ssing
Reporting
and analysi s
Intercompany
accounting
Consolidations
and close
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Chapter 2 - Page 5
Major Functions and Features

Major Functions and Features
Oracle General Ledger is a comprehensive financial
manage ment solution that facilitates the following
tasks:
Financial controls
Data collection
Information access
Financial reporting and analysis
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About Oracle General Ledger

Define multiple calendars and account structures.
Use standard, reversing, and recurring journals.
Use MassAllocations to automate your cost and revenue allocations quickly and
accurately.
Use the Financial Statement Generator (FSG) to create custom financial reports.
Use the General Ledger Desktop Integrator to combine the power of Oracle
General Ledger with an Excel spreadsheet to budget, report, analyze, and enter
accounting information.
Extensive Foreign Currency Capability
Automate currency conversion, translation, and revaluation in accordance with
generally accepted accounting principles.
Query and report on all foreign currencies and translated balances using single
or multiple sets of books.
Use Multiple Reporting Currencies sets of books to manage routine reporting of
foreign currency transactions.
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Chapter 2 - Page 6
Using Oracle General Ledger: Overview

Using Oracle General Ledger: Overview
Analyze
Manipulate
Record
Oracle
General Ledger
Review
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Record and Review Accounting Information

Import data from subsidiary ledgers, or enter journals to record actual or budget
transactions directly into Oracle General Ledger.
Enter encumbrance journals to track encumbrances through the purchase
approval process and to control spending against budgeted amounts.
Review account balances online or through standard reports.
Manipulate Accounting Information
Correct actual, budget, and encumbrance information.
Revalue and translate balances denominated in foreign currencies.
Consolidate balances from multiple sets of books.
Analyze Accounting Information
Integrate Oracle General Ledger with Oracle Financial Analyzer to simplify the
budgeting and forecasting process, to efficiently answer ad hoc requests, and to
identify areas for profit improvement.
Quickly prepare What If analyses and pro forma reports.
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Chapter 2 - Page 7
Integrating with Subledgers

Oracle General Ledger is the central repository for
accounting information, receiving transactions from
financial and manufacturing subledgers.
Oracle
General Ledger
Manufacturing
subledgers
Financial
subledgers
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The following are different types of transactions sent from Oracle Subledgers to
Oracle General Ledger:
Product
Transaction Type
Payables
Payments and invoices
Receivables
Debit memos, on-account credits, invoices,
chargebacks, receipts, adjustments,
guarantees,other receipts, and deposits
Assets
Deferred and standard depreciation expense
transactions and asset transaction
information
Projects
Labor cost, usage cost, vendor invoice
adjustments, and revenue information
Purchasing
Accrued receipts
Cost Management/Inventory
Inventory and Work in Progress transactions
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Chapter 2 - Page 8
Using Open Interfaces

Using Open Interfaces
You can integrate with external systems by using
published open interfaces.
You can write import programs to import data from
an external system or from your previous
accounting system.
You can initiate a full account validation process
during import.
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The validation process checks for several items, including:

Account combinations
Periods
Unbalanced journal entries
Foreign currency errors
Budget information
Encumbrance information
Other miscellaneous items
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Chapter 2 - Page 9
O
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Agenda
Agenda

Set of Books
Journal Entries
Consolidations
Budgeting
Reporting
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Chapter 2 - Page 10
The Global Accounting Engine Program: Overview

The Global Accounting Engine Program:
Overview
The Global Accounting Engine program:
Provides a subledger accounting system
Provides an audit trail for legal and fiscal authorities
Ensures subledger and general ledger account
symmetry
Replaces the Transfer to General Ledger program
used in each Oracle application
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Chapter 2 - Page 11
Why Is the Global Accounting Engine Needed?

Why Is the Global Accounting Engine
Needed?
The same business case can produce different
accounting entries. These differences can be due to
different:
Valuation methods
Recognition of accounting events
Focus of interest
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Chapter 2 - Page 12
Features of the Global Accounting Engine

The ability to differentiate between a document and
event
A new way of numbering accounting entries
A new mechanism of closing periods
Storing all accounting entries in the same structure
and format for all applications
Ability to generate different accounting entries from
the same business transaction into different sets of
books
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Chapter 2 - Page 13

An online drilldown from the general ledger to the
original documents
Printing additional reports, such as daily journal
and reconciliation reports, to match the amounts in
the subledgers, such as receivables, payables, and
general ledger
Synchronous multiple sets of books accounting that
ensures that a business transaction is posted in all
related set of books or is posted in any set of books
Compliance with the granularity level of accounting
entries
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Chapter 2 - Page 14
Agenda
Agenda

Set of Books
Journal Entries
Consolidations
Budgeting
Reporting
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Chapter 2 - Page 15
Elements Required for a Set of Books

Elements Required for a Set of Books
Complete the three tasks necessary to create a set of
books.
Define a chart of accounts
Define an
accounting calendar
Define currencies
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Set of Books
A set of books determines the functional currency, account structure, and
accounting calendar for each company or group of companies.
Each set of books has a number of options that indicate the accounting
practices you want to follow for that set of books.
Chart of Accounts
Your chart of accounts is the account structure you define to fit the specific
needs of your organization.
You can choose the number of account segments as well as the length,
name, and order of each segment.
Accounting Calendar
The accounting calendar defines an accounting year and the periods it
contains.
You can define multiple calendars and assign a different calendar to each set
of books.
Currencies
You can select the functional currency for your set of books as well as other
currencies that you use to transact business.
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Chapter 2 - Page 16
Chart of Accounts Structure

With Oracle General Ledger, you:
Define the account combinations to be used for
journal entry and budgeting
Define account hierarchies for reporting and
analysis
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Chapter 2 - Page 17
Accounting Calendar
Accounting Calendar
You need to create a calendar to define an accounting
year and the periods it contains.
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Oracle General Ledger allows you to define multiple calendars and assign a
different calendar to each set of books. For example, you can use a monthly
calendar for one set of books, and a quarterly calendar for another.
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Chapter 2 - Page 18
Unlimited Currencies
Unlimited Currencies
You can enable a variety of currencies to allow you to
enter transactions in multiple currencies.
Dollars
Francs
Yen
Pounds
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You can enable predefined currencies or you can set up your own customized
currencies.
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Chapter 2 - Page 19

Define a flexible chart of accounts structure:
Create up to 30 segments of up to 25 characters per
segment, limited to 240 characters total.
Define each segment name and the order in which it
appears.
Attach a list of valid values to each segment.
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Examples
Manufacturing:
XX
XXX
XXXX
XXX
XXX
XXX
Company Cost Center Account
Product
Prod. Line Sub Acct.
News Distribution:
XX
XXXXXX
XX
XXX
XXXX
Division
Account
Region
Story
Distribution
Project Oriented:
XXX
XXXXX
XXX
XXXX
XX
Company Account
Department Project
Project Type
Suggestion: Tailor your account structure for your industry and reporting
requirements. Choose the number of segments, as well as the length, name, and
order of each segment.
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Chapter 2 - Page 20
Creating Accounting Flexfields

Creating Accounting Flexfields
Perform the five steps necessary to create an
Accounting Flexfield.
1. Define a value set.
2. Define an Accounting Flexfield structure.
3. Define valid segment values.
4. Create account combinations.
5. Optionally, define security rules.
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The above sequence needed to create Accounting Flexfields is the same sequence
needed to create all key flexfields.
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Chapter 2 - Page 21
Defining Value Sets

Defining Value Sets
Use value sets to control the format and
characteristics of the Accounting Flexfield segment.
Value_
Set 2
Value_
Set 1
Value_
Set 3
Value_
Set 1
Format:
Char
Format:
Char
Format:
Char
Format:
Char
Maximum
size: 2
Maximum
size: 3
Maximum
size: 4
Maximum
size: 2
Validation:
Independent
Validation:
Independent
Validation:
Table
Balancing Segment Cost Center
Natural
Account
Validation:
Independent
Intercompany
Segment
The same value set can be used more than once in

the same Accounting Flexfield structure.
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Defining Value Sets

Value sets determine the attributes of your segments such as length, zero-fill,
right-justify, alphanumerics, and value security.
Value sets control what types of values can be used as Accounting Flexfield
segment values.
Assigning Value Sets to Segments
Assign one value set to each Accounting Flexfield segment.
Optionally, assign value sets to multiple Accounting Flexfield segments in
multiple Accounting Flexfield structures.
Share the same value sets across multiple sets of books to facilitate
consolidation.
You can use the same value set more than once within the same Accounting
Flexfield structure, as is the case with COAs created to use Intercompany
Segment Balancing.
Note: Changing the attributes of a value set affects all of the Accounting
Flexfield segments using that value set.
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Chapter 2 - Page 22
How to Create Value Sets

How to Create Value Sets
Use the Value Sets window to define or review a value
set.
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(Help) Oracle Financial Applications > General Ledger > Setting Up

General Ledger > Chart of Accounts > Defining Your Chart of
Accounts
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Chapter 2 - Page 23
Validation Types
Validation Types
When you define value sets, you also need to
determine how you want to validate your values.
Choose the appropriate validation type:
Independent
Dependent
Table Validated
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Validation Types
Use Independent validation when the meaning of a value does not depend on the
value of another segment.
Use Dependent validation when the meaning of a value depends on the value of
another (independent) segment. The independent segment value determines the
acceptable dependent segment values.
Use Table validation when the valid values already exist in a database table.
Note: If you are validating your value set against a database table, you must
register the table with Oracle Application Object Library.
Note: The validation type of an existing value set cannot be changed.
Technical Note:
It is recommended to use the Independent validation type with Accounting
Flexfield segments. The Dependent validation type limits using parent values
with MassAllocations, MassBudgeting, and Financial Statement Generator
(FSG). The only parent value available for dependent segments is an all
inclusive parent that includes all the values of the value set. The parent value
cannot include a subset of child values, a common practice when using
summary accounts in mass allocations.
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Chapter 2 - Page 24
Defining Value Sets

Defining Value Sets
Use value sets to control the format and
characteristics of the Accounting Flexfield segment.
Value_
Set 2
Value_
Set 1
Value_
Set 3
Value_
Set 1
Format:
Char
Format:
Char
Format:
Char
Format:
Char
Maximum
size: 2
Maximum
size: 3
Maximum
size: 4
Maximum
size: 2
Validation:
Independent
Validation:
Independent
Validation:
Table
Validation:
Independent
Balancing
Segment
01
02
03
Cost Center
Natural
Account
HEAD
1000
9999
Intercompany
Segment
100
101
999
01
02
03
Values are shared by the same value set.
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Defining Value Sets

Value sets determine the attributes of your segments such as length, zero-fill,
right-justify, alphanumerics, and value security.
Value sets control what types of values can be used as Accounting Flexfield
segment values.
Assigning Value Sets to Segments
Assign one value set to each Accounting Flexfield segment.
Optionally, assign value sets to multiple Accounting Flexfield segments in
multiple Accounting Flexfield structures.
Share the same value sets across multiple sets of books to facilitate
consolidation.
You can use the same value set more than once within the same Accounting
Flexfield structure, as is the case with COAs created to use Intercompany
Segment Balancing.
Note: Changing the attributes of a value set affects all of the Accounting
Flexfield segments using that value set.
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Chapter 2 - Page 25
Defining Segment Values

For each parent value, you can:
Define child ranges
Define parent ranges
Move child ranges
Move parent ranges
View hierarchies
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Define Child Ranges

Enter the ranges of child values for each parent.
Specify a range type of Child or Parent.
When using the Child type, any child values that fall within the specified
range are considered children of the parent value.
When using the Parent type, any parent values that fall within the specified
range are considered children of the parent value.
Move Child Ranges
Move a range of child values from one parent to another parent value.
If the child moved is also a parent, its children are moved automatically.
View Hierarchies
View the hierarchy structure to which the selected value belongs.
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Chapter 2 - Page 26

Define parent/child relationships, including multilevel
hierarchies, to facilitate reporting and analysis.
Top-le vel
parent
Secondlevel
parents
Children
Western region
California
East
CA
Nevada
East
NV
West
CA
West
NV
Oregon
West
OR
East
OR
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Child Segment Values

Post journals and enter budgets directly to child segment values. Assign ranges
of children to parents.
Parent Segment Values
Use parents to sum the balances of the associated children accounts. Any
segment that has children beneath iteven if that segment has its own parent
above itis considered a parent by Oracle General Ledger. The value T is
also a parent value even though its children are not specifically assigned.
You cannot post journals or enter budgets directly for parent segment values.
Assign ranges of child values to parent values to create summations for running
reports, MassAllocations, or MassBudgeting.
You can create parent segment values for independent segments, but there are
limitations when used with dependent segments. The Dependent validation type
limits using parent values with MassAllocations, MassBudgeting, and Financial
Statement Generator (FSG). The only parent value available for dependent
segments is an all inclusive parent that includes all the values of the value set.
Technical Note:
Oracle General Ledger treats all segment values that have the parent check box
enabled as parents, regardless whether it has children.
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Chapter 2 - Page 27
Summary accounts may use the segment value T in one or more of the
segments, therefore, define the segment value T for every Accounting
Flexfield segment if you are planning to create summary accounts.
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Chapter 2 - Page 28
Flexible Account Hierarchies

Flexible Account Hierarchies
Oracle General Ledger enables you to set up a variety
of flexible parent/child account hierarchies to match
your organizational needs.
Smart
Computers, Inc.
CPUs
Disk
drives
Smart
Computers, Inc.
Printers
New
York
Paris
Chicago
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Multiple Hierarchies
Maintain multiple views of your account combinations.
Use various flexible parent/child account hierarchies to view your business
according to product lines, geographical regions, organizational lines, or any
other combination of factors you deem important.
Create your hierarchy with as many vertical and horizontal levels as you need to
effectively analyze your business or business segment.
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Chapter 2 - Page 29
Using Dynamic Insertion

Using Dynamic Insertion
Dynamically create new account combinations while
you are entering data by enabling dynamic insertion in
the Key Flexfields Segments window.
Dynamic insertion can be enabled or disabled at any
time.
All new combinations must satisfy all defined crossvalidation rules before they are created.
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Frequently, companies enable dynamic insertion while they are entering

historical data from a legacy system; they then disable the feature to ensure
tighter control over the creation of new account combinations.
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Chapter 2 - Page 30
Defining Flexfield Security Rules

Defining Flexfield Security Rules
Restrict a responsibility's data entry and online
inquiry to specific values by using flexfield security
rules.
Account Segment
Include
#s 0000 to 9999
Exclude
#s 1000 to 3999
Available
Values
0000 to 0999
Unavailable
Values
4000 to 9999
1000 to 3999
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Segment Values
You can prohibit all users from accessing specific values by disabling the values
in the segment Values window.
To prohibit certain users from accessing specific values, you can define
flexfield security rules and assign those rules to the responsibility of the
restricted users.
Accounting Flexfield segment values must pass every assigned flexfield
security rule for that responsibility to be valid.
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Chapter 2 - Page 31
Defining Cross-Validation Rules

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

New accounts must pass every enabled cross-validation rule to be valid.
Cross-validation rules do not affect existing accounts.
Dynamic Insertion
Enable dynamic insertion in the Key Flexfield Segments window to allow users
to define new account combinations of segment values.
If dynamic insertion is not enabled, you can only enter new account
combinations of segment values using the GL Accounts window.
Defining and Revising Cross-Validation Rules
Because cross-validation rules validate only new accounts, you should define
and enable them prior to entering accounts.
Revise cross-validation rules at any time, but remember that they only prevent
the creation of new invalid account combinations.
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Chapter 2 - Page 32
Set of Books Options - Multiple Reporting Currencies

Set of Books Options - Multiple Reporting
Currencies
If you need to report in multiple currencies at the
balance level, as well as transactions level, define a
primary set of books using your functional currency
and additional reporting sets of books using your
reporting currencies.
Primary Set of Books- Choose this option if you are
defining a primary set of books.
Reporting Set of Books - Choose this option if you
are defining a reporting set of books.
Not Applicable - Choose this option if you are not
using Multiple Reporting Currencies.
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General Ledger > Defining Sets of Books > Defining Sets of Books
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Chapter 2 - Page 33
Creating a Set of Books Considerations

Creating a Set of Books Considerations
You must create a set of books for each entity that has
a unique combination of currency, calendar and chart
of accounts. Required steps include:
Defining Accounting Flexfields, including defining
value sets, segments, and segment values
Defining calendar period types and calendar periods
Enabling and defining currencies
Defining your set of books and assigning it to a
responsibility
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Chapter 2 - Page 34
Sharing a Set of Books Across Oracle Applications

Sharing a Set of Books Across
Oracle Applications
Many elements of an Oracle General Ledger set of
books are shared with other Oracle applications.
Account Structure
Value sets
Segment values
Security rules
Cross validation rules
Accounting Calendar
Periods
Period types
Currencies
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The implementation choices made in setting up Oracle General Ledger will

affect many other Oracle applications.
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Chapter 2 - Page 35
Accounting Flexfield Considerations

Accounting Flexfield Considerations
Identifying business requirements

Analyzing reporting requirements
Creating a worldwide charts of accounts
Creating vertical structures
Using independent and dependent segments
Designing size and segment numbering schemes
Sequencing the segments
Using dynamic insertion and cross validation rules
Using security rules
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Chapter 2 - Page 36
Identifying Business Requirements

Identify the aspects of your business that you need to
track and analyze; pay specific attention to aspects
that span several applications. Examples include:
Company, legal entity, fund
Division, region, territory, state, country
Location, plant, office, store
Cost center, department, function
Natural Account categories under asset, liability,
owners equity, revenue and expense types.
Product, product line, line of business, channel
Project, phase, task, job, work order
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Chapter 2 - Page 37

Assign each item type as a separate segment.
Avoid having more than one meaning for each
segment.
Product &
Company
XXX
Region
XX
Project
XXXX
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Chapter 2 - Page 38
Analyzing Reporting Requirements

Analyzing Reporting Requirements
Make certain that you can generate the required
reports based on the segments in your Accounting
Flexfield.
Company
Region
Cost Center
Project
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Chapter 2 - Page 39
Creating a Worldwide Chart of Accounts

Creating a Worldwide Chart of Accounts
Many companies need to use a unified chart of
accounts, but also need to capture different
information in different sites and countries based on
business needs and statutory requirements.
Consolidating
segments
(HQ control)
Nonconsolidating
segments
(Local control)
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Chapter 2 - Page 40
Creating Vertical Structures

Creating Vertical Structures
Avoid creating unneeded segments.
Track structures such as division-region-office in a
single segment by using a vertical Accounting
Flexfield.
Example: Use Company-Office-Account instead of
Company-Divi sion-Region-Office-Account.
Division
Division parent
Region
Region parent
Posting level
Company
Office
Account
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Chapter 2 - Page 41
Using Independent and Dependent Segments

Using Independent and
Dependent Segments
Independent Segment
Dependent Segment
Segment that has

meaning on its own
without depending on
other segment values
Segment that is linked to

an independent segment
Example
Account:
1100
Subaccount: 001 Desc: Cash-Citibank
Example
Company: 01
Account:
2200
Subaccount: 001 Desc: Debt-B of A
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Avoid using the Dependent validation type with the Accounting Flexfield
segments; it complicates parent/child hierarchies and limits the ability to use
parent values with reporting and some formula-based journal entries.
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Chapter 2 - Page 42
Designing Size and Segment Numbering Schemes

Designing Size and Segment Numbering
Schemes
Decide whether to allow alphabetical characters in
Accounting Flexfield value sets.
Decide on the size of the Accounting Flexfield
segments.
Do not de sign the segments longer than needed.
Consider your organization's growth requirements.
Design the coding schema for your Accounting

Flexfield values.
Consider revi sing your existing coding schemas to
leverage features in the Accounting flexfield structure.
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Chapter 2 - Page 43
Sequencing the Segments

Sequencing the Segments
Consider the efficiency of data entry and a logical
order for users when deciding how to order your
Accounting Flexfield segments.
Place segments with defaults at the beginning or
end of your Accounting Flexfield.
Several reports in Oracle General Ledger sort in the
following order:
Balancing segment
Account segment
Remaining segments from left to right
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Chapter 2 - Page 44
Using Dynamic Insertion and Cross Validation Rules

Using Dynamic Insertion and Cross
Validation Rules
Allow dynamic insertion if you want users to create
new combinations from windows that do not use
your combinations table.
You should prevent dynamic inserts if you want all
new valid combinations entered only from the GL
Accounts window.
If dynamic insertion is allowed, consider using
cross-validation rules to prevent the creation of
combinations that should never exist (combinations
with values that should not coexist in the same
combination).
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Chapter 2 - Page 45
Using Flexfield Security Rules

Using Flexfield Security Rules
Flexfield Security Rules restrict access to
Accounting Flexfield segment values based on
responsibility.
Use the Define Flexfield Security Rules window to
define security rules at any time.
Once you define your rule, you must assign your
rule to a responsibility.
You may define rules for a segment that does not
have security enabled, but your rule has no effect
until you enable security for that segment and
assign your rule to a responsibility.
Flexfield security rules for the Accounting Flexfield
restrict all data entry, query access and FSG
(Financial Statement Generator) reporting to certain
segment values.
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Chapter 2 - Page 46
Summary Accounts
Summary Accounts
Summary accounts store the sum of the balances of
groups of detail accounts.
Summary Revenue Account.15,000
Detailed Revenue Account A..10,000
Detailed Revenue Account B.3,000
Detailed Revenue Account C.2,000
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General Ledger > Defining Summary Accounts
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Chapter 2 - Page 47
Detail vs Summary Accounts

Detail vs Summary Accounts
Detail Accounts:
allow direct posting of busi ness transactions and
journals.
Summary Accounts:
are updated when journals are posted to a
corre sponding detail account.
enable online summary inquiries, including account
inquiry on the detail accounts that compose the
summary amount.
speed concurrent processi ng, eliminating the need to
sum the account balances of groups of detail accounts
during runtime.
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Chapter 2 - Page 48
Summary and Parent Accounts

Summary and Parent Accounts
Summary accounts differ from parent accounts in
several important ways:
Storage of account balances
Posting process
Online inquiries
Financial Statement Generator
Recurring journals and budget formulas
MassAllocation
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Summary Accounts
Store Summary Balances
View Balances online
Use in recurring journals or budget formulas
Use the constant segment type in MassAllocations
Get quicker FSG reporting because no summations are required
Require posting to additional accounts because balances must be updated each
time journals are posted to one of the corresponding detail accounts
Parent Accounts
Do not store account balances
Cannot be viewed online because they do not maintain balances
Cannot be used in recurring journals or budget formulas because they do not
maintain balances
Use the looping segment or summing segment types in MassAllocations
Result in slower FSG reporting because summations are required
Expedite the posting process because summary balances do not have to be
updated each time journals are posted
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Chapter 2 - Page 49
Defining Shorthand Aliases

Defining Shorthand Aliases
A shorthand alias is a simple code you create that
represents a partial or complete account combination.
Use shorthand aliases to reduce account-entry
keystrokes and to maximize accuracy.
Account
Combination
Shorthand Alias
01-110-000-1110-000-0000
Cash01
NY
Sales
-320- - - 01 - -420-4110- -
Computer Monitors
- - - -310-
NY Monitor Sales
01-320-420-4110-310-0000
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Chapter 2 - Page 50
Defining Units of Measure

Defining Units of Measure
You can associate statistical amounts with monetary
amounts using statistical units of measure. This
allows you to enter both monetary and statistical
amounts in a single journal line.
New York Consulting Revenue Dollars and Hours

Dr. 04.420.430.4310.000.000: ...$10,000.50 Hours
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Chapter 2 - Page 51
Average Balancing
Average Balancing
You can use average balance processing for your set
of books. Once you enable this option, General Ledger
automatically stores the aggregate balances that are
used to calculate average and end of day balances.
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(Help) Oracle Financial Applications > Oracle General Ledger >

Setting Up General Ledger > Defining Sets of Books > Set of Books
Standard Options
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Chapter 2 - Page 52
Agenda
Agenda

Set of Books
Journal Entries
Consolidations
Budgeting
Reporting
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Chapter 2 - Page 53
Overview
Overview
General Ledger supports a variety of journal entry
types to meet your business and accounting
requirements.
In General Ledger, there are four basic journal entry
types. Each journal entry type has expanded
functionality we will explore in this and the
automated journal processing module.
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Chapter 2 - Page 54
Journal Entry Types

Journal Entry Types
Used for most accounting transactions.
Examples include Re venues, Expenses,
Adjustments, and Reclassifications
Basic
Journal Entry
Created by reversing an existing journal
entry. You can reverse any journal entr y
and post it to the current or any future
open accounting period.
Reversing
Journal Entry
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Entry
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Chapter 2 - Page 55
Journal Entry Types

Journal Entry Types
Defined once then generated for each
subsequent accounting period. You can use
recurring journal entries to define automatic
consolidating and eliminating entries.
Recurring
Entries
Journal entries that utilize a single journal
entry formula to allocate revenues and
expenses across a group of cost centers,
departments, divisions, and so on.
Mass
Allocations
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Chapter 2 - Page 56
Journal Creation Methods

Manual
Entries
Create adjusting journals

and accruals
Enter debits and credits

manually
Reversing
Entries
Reverse an error, revaluation,

encumbrance journal, and
accruals
Reverse the journal amounts

of a preexisting entry
Recurring
Entries
Create journals using fixed

accounts and amounts and
complex formulas. Create
multiple journals with the
same/sim ilar information.
Create journals using a

skeleton template, standard
template, or formula
Mass
Allocate from one account to
Allocations many using a single formula
Calculate journals using an

allocation formula
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Chapter 2 - Page 57

Journal Wizard
Journal Import
Integrate
General Ledger
with an Excel
Spreadsheet for
journal creation
Upload journal
entries from an
Excel spreadsheet
Integrate General
Ledger with other
applications
Import journal
information from
feeder systems
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Chapter 2 - Page 58
Accounting Calendar
Accounting Calendar
You cannot enter or post journals
Never
Opened
You can enter journals, but you cannot post.
The number of future enterable periods is a
fixed number defined in the Set of Books
window.
Future
Enterable
You can enter and post journals to any open

period. An unlimited number of periods can be
open, but doing so may slow the posting
process.
Open
Period
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Chapter 2 - Page 59
Accounting Calendar
Accounting Calendar
You must reopen Closed periods before you

can post journals. You should manually close
periods after finishing your month-end
processing.
Closed
Period
Permanently closed periods cannot be

reopened.
Do not use this status if you want to have your
Permanently records auditable in future years.
Closed Period
This status is required to archive and purge
data.
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Chapter 2 - Page 60
Posting Journals
Posting Journals
You have several ways to post journal batches:
Use the Post Journals window to select and post
several journal batches
Use the More Actions window to post a journal
batch directly
Use the AutoPost program to periodically post
journal batches
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Entry > Posting Journals
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Chapter 2 - Page 61
Drilling Down to Journal Detail

Drilling Down to Journal Detail
Perform an Account Inquiry, and drill down to review
detailed information about:
journals you entered in General Ledger
journals you imported from Oracle Payables,
Receivables, and other subledgers.
Account inquiry
Drill down
Subledger detail
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Chapter 2 - Page 62
T-Accounts
T-Accounts
Operations - Machinery and Equipment
USD
USD
5,000
5,000
Operations - Asset Clearing

USD
USD
5,000
5,000
You can view General Ledger journals or subledger

accounting entries in a graphical T-account format.
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Chapter 2 - Page 63
Demonstration
Demonstration
This demonstration shows you how to:
Create and post a journal batch
Perform an account inquiry
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Chapter 2 - Page 64
Importing Journal Entries: Overview

Importing Journal Entries: Overview
Create journals in feeder systems, upload them to the
GL_INTERFACE table and use Journal Import to create
journals in General Ledger.
Summary or detail
GL_INTERFACE
Subledgers
Automatic or manual
Journal Import
Post
GL_BALANCES
GL_JE_LINES
GL_JE_HEADERS
GL_JE_BATCHES
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Chapter 2 - Page 65
Recurring Journals: Overview

Recurring Journals: Overview
There are three major types of recurring journals.
Skeleton
Dr.
Cr.
Temporary Labor<No Amount>

Salaries Payable..<No Amount>
Standard
Dr.
Cr.
Auto Lease Expense. . . .<Constant Amount>

Accounts Payable..<Constant Amount>
Formula
Dr.
Cr.
Rent Expense. . . .<Variable Amount>

Rent Payable..<Variable Amount>
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Chapter 2 - Page 66
MassAllocations: Overview
MassAllocations: Overview
MassAllocations: A single journal entry formula that
allocates revenues and expenses across a group of
cost centers, departments, divisions, and so on.
Total rent
1/3
1/3
1/3
Tokyo rent
Paris rent
Chicago rent
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Entry > MassAllocations
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Chapter 2 - Page 67
Defining MassAllocation Formulas

Defining MassAllocation Formulas
Create MassAllocation formulas.
All MassAllocation formulas use the following
equation to determine allocation amounts:
Cost Pool * (Usage Factor/Total Usage)
Oracle General Ledger uses the following format to

represent the equation. Each factor in this equation
relates to a separate formula line:
A * B/C
You can enter any combination of fixed amounts

and account combinations in formula lines A, B, or
C.
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Chapter 2 - Page 68
Overview of the Period Closing Process

Enter, import,
generate, reverse
and post journal
entries
Run revaluation
and translation
Consolidate
your sets of
books
Analyze the results
Run period end

reports
Close the
current period
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Chapter 2 - Page 69
Year-End Closing Journals

Year-End Closing Journals
General Ledger provides year-end closing journals so
you can pre-determine the effect of the close (a "soft
close") and perform pro-forma reporting.
During the soft close process, General Ledger can
create two types of closing journals.
The first journal closes all of the income statement
accounts.
General Ledger can also generate a balance sheet
closing journal (for globalization requirements),
which posts all asset and liability balances to a
closing account you specify.
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Journal Entry > Year-End Closing Journals
Closing journals can be run for any period, not just during the year end period.
Some companies go through the closing journal process even when it is not their
year end.
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Chapter 2 - Page 70
Agenda
Agenda

Set of Books
Journal Entries
Consolidations
Budgeting
Reporting
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Chapter 2 - Page 71
Overview of Intercompany Accounting

Overview of Intercompany Accounting
If your organization has multiple companies within a
single set of books, you can use intercompany
accounting to track transactions between companies.
Set up your parent balancing segment value to include
subsidiary and eliminating balancing segments.
Acme Corporation
99
99
North America 01
Single set of
books
Eliminating
Company 08
Europe 04
Asia 06
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Chapter 2 - Page 72
Overview of Intercompany Journals

Overview of Intercompany Journals
You can balance intercompany journals based on
multiple parameters including Journal source,
Journal category, and Balancing segment value.
You can specify unique due-to and due-from
intercompany accounts or templates for Oracle
General Ledger to use to balance intercompany
journal entries automatically.
Based on the rules that you define, Oracle General
Ledger inserts additional journal lines to offset
journal lines that cross balancing segments.
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Chapter 2 - Page 73
Overview of Segment Qualifiers

Overview of Segment Qualifiers
In Release 11i, there are four types of segment
qualifiers:
Balancing
Natural Account
Cost Center
Intercompany
The intercompany segment shares the same value set
as the balancing segment and is used in account
combinations that General Ledger creates to balance
intercompany journals.
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Chapter 2 - Page 74
Intercompany Balancing Within a Single Set of Books

Intercompany Balancing Within a Single
Set of Books
You can balance intercompany journals based on
multiple parameters, including:
Journal Source
Journal Category
Balancing segment value
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(Help) Oracle Financial Applications > Oracle General Ledger > MultiCompany -Single Set of Books > Overview
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Chapter 2 - Page 75

(continued)
Set of Books (continued)
For each combination of the three parameters, you can
specify a unique intercompany account or template for
General Ledger to use to balance intercompany
journals automatically.
Based on rules you define, General Ledger inserts
additional journal lines during posting to offset
journal lines that cross balancing segments.
Your rules may also include different accounts
based on whether the balancing amount should be
posted to a credit account (due to) or a debit
account (due from).
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Chapter 2 - Page 76

(continued)
Set of Books (continued)
At the journal source and category level, you can
choose a default clearing company against which all
trading partners balance.
You can also specify whether intercompany journal
balancing is performed at a summarized level for
each trading partner or at a journal line level
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Chapter 2 - Page 77
Intercompany Balancing Options

General Ledger offers the following solutions to
account for intercompany transactions:
Standard intercompany balancing - create generic
balancing lines against the intercompany accounts
that you have defined for specific sources and
categories. This method does not track payable and
receivable balances by trading subsidiaries.
This method is similar to intercompany balancing
functionality in General Ledger, Release 11.0.
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(Help) Oracle Financial Applications > Oracle General Ledger > MultiCompany -Single Set of Books > Intercompany Accounting
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Chapter 2 - Page 78
Standard Intercompany Balancing Example

Standard Intercompany Balancing
Example
You define the following intercompany accounts for a
specific source and category:
xx.000.1600.000 intercompany receivables
xx.000.2600.000 intercompany payables
You post the following transaction using the same

source and category to transfer an asset from
company 01 to companies 02 and 03:
debit credit
02.000.1725.000
300
03.000.1725.000
400
01.000.1725.000
700
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Chapter 2 - Page 79
Standard Intercompany Balancing Example (continued)

Standard Intercompany Balancing
Example (continued)
General Ledger creates the following journal lines to
record intercompany receivable for company 01 and
payables for companies 02 and 03.
debit credit
01.000.1600.000
700
02.000.2600.000
300
03.000.2600.000
400
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Chapter 2 - Page 80

Enhanced Intercompany Balancing - define separate
intercompany accounts to record more detail for your
intercompany journals and track intercompany
balances.
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Chapter 2 - Page 81
Enhanced Intercompany Balancing Example

Enhanced Intercompany Balancing
Example
You define the following accounts:
Receivables xx.000.1601.000
due
xx.000.1602.000
due
xx.000.1603.000
due
xx.000.1600.000
due
Payables
xx.000.2601.000
xx.000.2602.000
xx.000.2603.000
xx.000.2600.000
due
due
due
due
from comp 01
from comp 02
from comp 03
from Other
to comp 01
to comp 02
to comp 03
to Other
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Chapter 2 - Page 82
Enhanced Intercompany Balancing Example

(continued)
Example (continued)
You post the following transaction:
debit credit
02.000.1725.000
300
03.000.1725.000
400
01.00.1725.000
700
General Ledger creates the following journal lines:
debit credit
01.000.1602.000
300
01.000.1603.000
400
02.000.2601.000
300
03.000.2601.000
400
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This method illustrates that:

Company 01 has intercompany receivables of 700
300 from company 02
400 from company 03
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Chapter 2 - Page 83
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Intercompany Segment Balancing - use the
intercompany segment in your chart of accounts to
record the same detail as enhanced intercompany
accounting.
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Chapter 2 - Page 84
Intercompany Segment Balancing Example

Intercompany Segment Balancing
Example
Assume your chart of accounts has the following
structure:
CO-CC-ACCT-IC where:
CO is the balancing segment
CC is the cost center segment
ACCT is the natural account segment
IC is the intercompany segment
xx.000.1600.00 intercompany receivables
xx.000.2600.00 intercompany payables
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Chapter 2 - Page 85
Intercompany Segment Balancing Example (continued)

Intercompany Segment Balancing
Example (continued)
You post the following transactions:
debit credit
02.000.1725.00
300
03.000.1725.00
400
01.000.1725.00
700
debit credit
01.000.1600.02
300
01.000.1600.03
400
02.000.2600.01
300
03.000.2600.01
400
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The results of this transaction indicate:

300 from company 02
400 from company 03
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Chapter 2 - Page 86
O
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Clearing companies - designate one company to act
as the trading partner for all subsidiary companies
in the organization for certain types of
intercompany transactions.
You can set up clearing companies using enhanced
intercompany accounting or using the
Intercompany Segment.
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Chapter 2 - Page 87
Clearing Company Example Enhanced Intercompany

Balancing
Clearing Company Example
Receivables xx.000.1601.000
due
xx.000.1602.000
due
xx.000.1603.000
due
xx.000.1604.000
due
xx.000.1600.000
due
Payables
xx.000.2601.000
xx.000.2602.000
xx.000.2603.000
xx.000.2604.000
xx.000.2600.000
due
due
due
due
due
from comp 01
from comp 02
from comp 03
from comp 04
from All Other
to comp 01
to comp 02
to comp 03
to comp 04
to All Other
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Chapter 2 - Page 88

Balancing (cont)
Enhanced Intercompany Balancing (cont)
Complete the following in the Intercompany Accounts
window:
Source: Accounts Payable
Category: Your choice
Clearing Company Usage tab: Always Use Clearing
Company
Default Options tab: Use Default Clearing Company
Enter 04 as the default clearing company.
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Chapter 2 - Page 89

Balancing (cont)
Enhanced Intercompany Balancing (cont)
You post the following transaction:
debit
02.000.1725.000
300
03.000.1725.000
400
01.000.1725.000
credit
700

04.000.1602.000
debit
300
04.000.1603.000
400
01.000.1604.000
700
02.000.2604.000
03.000.2604.400
04.000.2601.000
credit
300
400
700
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The results tell us that:

300 from company 2
400 from company 3
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Chapter 2 - Page 90
Clearing Company Example using the Intercompany

Segment
using the Intercompany Segment
The intercompany balancing segment is enabled in
your chart of accounts.
Complete the following in the Intercompany Accounts
window:
Source: Accounts Payable
Category: Your choice
Balance by Detail: Balance by journal line
Clearing Company Usage tab: Many to Many
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Chapter 2 - Page 91
Clearing Company Example Using the Intercompany

Segment (cont)
Using the Intercompany Segment (cont)
Default Options tab: Use Default Clearing Company
Specify Default Clearing Company as Company 06.
Balancing Segment Column: Press the tab key. All
Other is displayed. All Other includes all balancing
segments not defined in this column.
Due To and Due From columns:
Due From: 01.000.1600.00 to specify a debit entry
Due To:
01.000.2600.00 to specify a credit entry
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Chapter 2 - Page 92

Segment (cont)
You create and post the following entries:
debit credit
02.000.5300.00
500
03.000.2400.00
100
04.000.3500.00
300
01.000.1000.00
700
05.000.1000.00
200
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Chapter 2 - Page 93

Segment (cont)
General Ledger automatically creates these additional
balancing entries with the following account code
combinations:
debit credit
06.000.1600.02
06.000.1600.03
06.000.1600.04
01.000.1600.06
05.000.1600.06
02.000.2600.06
03.000.2600.06
04.000.2600.06
06.000.2600.01
06.000.2600.05
500
100
300
700
200
500
100
300
700
200
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Chapter 2 - Page 94
Implementation Considerations for Intercompany

Balancing
Implementation Considerations for
Intercompany Balancing
Can you take advantage of using an intercompany
segment in your chart of accounts and maximize the
benefit of using enhanced intercompany balancing?
Which one of the intercompany balancing options
would work in your organization?
Can you use a clearing company to clear
intercompany transactions?
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Chapter 2 - Page 95
Overview of Global Intercompany System

Overview of Global Intercompany System
With Global Intercompany System (GIS), you can
monitor manual and automated intercompany
transactions centrally.
Ensure that both parties to an intercompany
transaction review the transaction details.
Ensure that intercompany journal entries are made
in both subsidiarys sets of books, to the correct
intercompany accounts.
Simplify the intercompany reconciliation process by
ensuring that transaction amounts made to
reciprocal intercompany accounts are the same.
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Chapter 2 - Page 96
Global Intercompany System (GIS)

Global Intercompany System (GIS)
GIS provides a controlled, central location for
subsidiaries to conduct intercompany transactions
throughout a global organization.
Transactions between subsidiary companies are
entered, exchanged, and resolved (if disagreements
occur) within GIS.
Oracle Workflow operates in conjunction with GIS to
notify parties of entered transactions, rejections,
approvals, and transaction results.
Once all parties are satisfied with GIS transactions,
the transactions are transferred to each subsidiary
companys set of books and posted.
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Chapter 2 - Page 97
GIS Implementation
GIS Implementation
Consider the following for your imple mentation:
Remote instances using a Corporate Standard Chart
of Accounts.
If your subsidiaries use a uniform chart of accounts
for reporting and consolidating financial data, apply
the same chart of accounts to GIS. Subsidiaries, the
parent and GIS can operate from a variety of remote
instance configurations.
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It is recommended that you set up a Corporate Standard Chart of Accounts.

Each subsidiary uses the same chart of accounts within GIS to exchange
transactions. Subsidiaries can simply transfer and post transaction results to
their set of books outside of GIS.
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Chapter 2 - Page 98
Agenda
Agenda

Set of Books
Journal Entries
Consolidations
Budgeting
Reporting
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Chapter 2 - Page 99
Concepts You Should Know

Concepts You Should Know
Multiple Sets of Books
MRC Sets of Books

Enter
transactions in
primary book
Reporting
books
Transactions must be
entered, revalued, and
translated separately in
each set of books.
Transactions entered in
primary books are
automatically converted to
each reporting set of books.
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(Help) Oracle Applications Help > Oracle Financial Applications >

Oracle General Ledger > Multi-Currency
Set of Books
Before you begin this unit, you should be aware of some concepts regarding sets
of books. A set of books consists of the following elements: an accounting
calendar, an account structure, and currency. If one of these elements is
different, you must create a separate set of books.
Multiple Reporting Set of Books
Multiple Reporting Currencies (MRC). MRC is beneficial for companies who
must regularly and routinely report its transactions and financial results in
multiple currencies, other than its primary functional currency. With MRC, you
create a primary set of books and then associate one or more reporting sets of
books (with different currencies) to that primary set of books. Day-to-day
transactions are entered in the primary set of books where they are converted to
the designated currencies for the reporting sets of books.
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Chapter 2 - Page 100
Working with Multiple Currencies

JE 126
Update Daily
Conversion Rates
11 USD
USD == 7.1
7.1 BEF
BEF
11 USD
USD == 20
20 ITL
ITL
11 USD
USD == 1.5
1.5 AUD
AUD
Revalue Asset and

Liability Accounts
JE 125
Foreig
n
Currency
Foreig n
____
____
Currency
____
____
____ ____
____
__
_______ ____
____ __ __
Enter, Import and Post

Foreign Currency J Es
Translate Foreign
Currency Account
Balances
JE 126
ForeigJE
n 125
Currency
DR. AR 1000
____ ____
Post
Revaluation
Journals
CR. GA IN/LO S S
____ ____
1000
____ __ ___
DR. AP 500
CR GAIN /LO SS
500
Review Entered,
Converted, and
Translated Currency
Balances
Run Foreign Currency Trial

Balance Reports and
Produce Foreign Currency
Financial Statements
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Update your daily conversion rates regularly.
Enter, import, and post foreign currency journals.
Revalue asset and liability accounts whose balances are denominated in a
foreign currency.
Post the revaluation journal batch to adjust your unrealized gain/loss
account for exchange rate fluctuations.
Translate account balances before consolidating sets of books with different
functional currencies, or to report account balances in an alternate currency.
Review entered, converted, and translated currency balances.
Run foreign currency Trial Balance reports.
Produce foreign currency financial statements.
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Foreign Currency Concepts

Foreign Currency Concepts
There are three key concepts in Oracle General Ledger
that pertain to foreign currency:
Conversion
Revaluation
Translation
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Conversion
Conversion refers to foreign currency transactions that are immediately
converted at the time of entry to the functional currency of the set of books in
which the transaction takes place.
Revaluation
Revaluation adjusts liability or asset accounts that may be understated or
overstated at the end of a period due to a significant fluctuation in the exchange
rate between the time the transaction was entered and the end of the period. It
restates balances using proper period end rate.
Translation
Translation refers to the act of restating an entire set of books or balances for a
company from the functional currency to a foreign currency.
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Many foreign-denominated transactions are originally
entered in feeder systems such as Oracle Payables
and Oracle Receivables, then settled in the feeder
system.
Foreign currency
obligation is
entered in Oracle
Payables.
Foreign currency
obligation is paid
in Oracle Payables.
Payables journal
entry is recorded in
Oracle General Ledger.
Foreign currency
conversion,
revaluation, and
unrealized gain or
loss is recorded.
Realized foreign
currency
gain or loss is
calculated.
Payables journal
entry is recorded
in Oracle General
Ledger.
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Foreign Currency Transactions from Subledgers

Each subledger handles foreign currency conversion differently, depending
upon the applications system options and the rate type.
Companies should implement procedures for users entering exchange rates
online to avoid inconsistencies in rates between applications. The procedures for
entry and maintenance of exchange rates should be addressed by a joint team of
all affected applications.
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Defining and Enabling Currencies

Defining and Enabling Currencies
Oracle Applications has predefined all currencies
specified in ISO standard #4217.
U.S. Dollars (USD) is the only currency that is
enabled initially.
To use a currency other than U.S. Dollars (USD), you
must enable the currency.
Use the Currencies window to define non-ISO
(International Standards Organization) currencies,
and to enable/disable currencies.
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Oracle General Ledger > Multi-Currency > Defining Currencies
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Predefined Daily Conversion Rate Types

Predefined Daily Conversion Rate Types
RateType
Description
Spot
An exchange rate used to perform

conversion based on the rate on a specific
date.
Corporate
An exchange rate used to standardize rates

for your company.
User
An exchange rate you specify when you

enter a foreign currency journal entry.
EMU Fixed
Rate
An exchange rate General Ledger provides

automatically when you enter journals (after
the EMU effective starting date) when
translating values from one EMU currency to
another.
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Oracle General Ledger > Multi-Currency > Defining Conversion Rate
Types
You can use these predefined rate types to enter exchange rates, or you can
define additional conversion rate types. After defining a conversion rate type,
enter daily rates using that rate type.
Use conversion rate types to automatically assign a rate when you convert
foreign currency journal amounts to functional currency equivalents. When you
enter a foreign currency journal, General Ledger automatically displays the
predefined exchange rate based on the currency, rate type (unless you are using
the User rate type), and conversion date you enter.
The only rate type reserved for use by Oracle Financials is the User Rate Type.
User rates are directly entered by the user at the time transactions are entered.
Corporate and Spot Rate Types have no specific meaning within the system and
are provided as seed data because they are terms commonly used in the
workplace. Spot and Corporate rates are generated from a table.
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What is Multiple Reporting Currencies?

What is Multiple Reporting Currencies?
A set of unique features in Oracle Applications that
allow organizations to report and maintain
accounting records:
At the transaction level
In more than one functional currency
Multiple Reporting Currencies (MRC) benefits those

organizations that must routinely report their
transactions and financial results in multiple
currencies, other than their primary functional
currency.
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(Help) Applications Help Library > Oracle Financial Applications >

Multiple Reporting Currencies > Overview
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Products Supporting MRC

Products Supporting MRC

Oracle Receivables
Oracle Payables
Oracle Projects
Oracle Assets
Oracle Purchasing
Oracle Global Accounting Engine
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Multiple Reporting Currencies > Overview
Oracle Inventory and Oracle Cash Management also support MRC, though
indirectly, through their interaction with Oracle Receivables and Oracle
Payables.
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When Do You Use MRC?

When Do You Use MRC?
When your organization must regularly and
routinely support statutory and legal reporting of
both transactions and GL account balances in
multiple reporting currencies, other than the primary
functional currency
When any of these conditions exist:
operate in a country that is part of the European
Economic and Monetary Union
operate in a country whose unstable currency makes it
unsuitable for managing your business
need to report in a common functional currency other
than the transaction currency or your primary
functional currency
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Multiple Reporting Currencies > Overview > When to Use MRC
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Multiple Sets of Books Primary and Reporting

Multiple Sets of Books
Primary and Reporting
One primary set of books (PSOB)
Use s your primary functional currency
One or more reporting sets of books (RSOB)

Each using a reporting functional currency
Each assigned to the primary set of books
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Multiple Reporting Currencies > Overview > MRC Features
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Planning Your MRC Implementation

Planning Your MRC Implementation
Effort varies by installation type
Fresh Install & Upgrade Scenario One: moderate
planning and preparation effort
Upgrade scenario two: extensive planning,
preparation, and coordination effort
Important consideration for all installation types

Choosing your MRC starting dates
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Agenda
Agenda

Set of Books
Journal Entries
Consolidations
Budgeting
Reporting
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Overview of Consolidations
Overview of Consolidations
With Oracle General Ledger, you can consolidate any
number of subsidiaries into parents represented by
different sets of bookseven those with different
charts of accounts, currencies and calendars.
Subsidiary 1:
Company A
Company B
Subsidiary 2:
Company C
Subsidiary 3:
Company D
Company E
Company F
Run Consolidation
Parent:
Company A
Company B
Company C
Company D
Company E
Company F
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Global Consolidation System > What You Can Consolidate
With Oracle General Ledger, you can:
Consolidate the results of multiple organizations, with different sets of
books, currencies, calendars, and charts of accounts
Initiate consolidations from your parent or subsidiary General Ledgers.
Consolidate actual amounts as well as budget amounts.
Consolidate account balances or transactions.
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Consolidation Workbench
Consolidation Workbench
The Consolidation Workbench and State Controller
provide a central point of control for consolidating an
unlimited number of subsidiaries to your parent.
Use the State Controller to:
Access parent and subsidiary consolidation steps
from one window
Monitor the state of the consolidation process
View consolidation mappings and hierarchies
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The Consolidation Workbench allows you to control several discrete

consolidation steps from a single window. From the Consolidation Workbench
you can access the State Controller, which is a navigation tool to guide you
through the consolidation process and access the windows you need to complete
the consolidation.
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Steps to Perform Consolidations

Steps to Perform Consolidations
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Step 7:
Map consolidation data.

Prepare consolidation data.
Transfer consolidation data.
Review and post consolidation journal
entries.
Generate and review eliminating entries.
Report on consolidated balances.
Analyze consolidated results.
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Global Consolidation System > Consolidation Process Steps
Before you can run a consolidation, you must create consolidation mappings
and elimination sets. These are set up steps that are only completed when the
consolidation is initially set up and to maintain the consolidations. Defining
these is covered in another module.
You will concentrate on the steps to run a consolidation using the Global
Consolidation System (GCS) in this module. These steps are completed
whenever you need to generate consolidated data.
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Consolidation Implementation Considerations

Consolidation Implementation
Considerations
Do you need multiple sets of books?
If you have multiple sets of books, can your
consolidation needs be met by using FSG reports or
will you need to use the Global Consolidation
System (GCS)?
Do all businesses use Oracle General Ledger?
Do all businesse s re side in the same instance?
Will you need a separate set of books for
consolidation, or can you consolidate in the parent?
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Global Consolidation System > What You Can Consolidate
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Agenda
Agenda

Set of Books
Journal Entries
Consolidations
Budgeting
Reporting
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What is an Oracle Budget?

Oracle budgets can be set up to calculate the same
way actuals are calculated.
For example, if you allocate total benefit costs to
cost centers based on headcount, you can budget
headcount and total benefit costs, and let Oracle
General Ledger created detailed cost center
budgets for you.
Oracle budget balances can be translated to create
budget versus actual reports in reporting
currencies.
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Oracle General Ledger provides a variety of tools to
create, maintain, and track your budgets:
Upload budget amounts from an Excel spreadsheet.
Create an unlimited number of budgets or
forecasts.
Control user access to budgets.
Create budget organizations to mirror the levels of
your companys organization and to control user
access to budget information.
Structure your budget into an unlimited number of
levels.
Create master-detail budgets.
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Anatomy of an Oracle Budget

Anatomy of an Oracle Budget
A budget consists of periods, accounts, and amounts.
Name: FY2001
Periods
Jan-2001 to Dec-2001
Accounts
001-010
002-200
..
..
$3000
$1500
Amounts
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You can define a maximum of sixty budget periods.
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Demonstration
Demonstration
This demonstration shows you how to define a budget.
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Budget Organizations
Budget organizations can be set up for each entity that
maintains a budget.
Maintenance
CC #100
Administration
CC #200
Engineering
CC #300
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Budgeting > Defining Budget Organizations
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Budget organizations:
Contain ranges of accounts that make up the
budget.
Represent departments, cost centers, divisions, or
other groups for which you enter and maintain
budget data.
Options:
ALL budget organization
Password to re strict acce ss
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Account ranges cannot overlap for the same currency within the same set of
books.
The following are reasons for defining budget organizations:
- Security
- Displaying budget information
- Freezing budgets by organization
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Defining Budget Accounts

Defining Budget Accounts
From the Define Budget Organization window, select
the appropriate action.
AutoCopy
Ranges
Assignments
Assign ranges of
accounts, currency,
and entry type.
Copy accounts from

an existing budget
organization.
Review, delete, or
add accounts within
a given range.
Review or delete
accounts. Cannot
add or modify.
Assign budgetary
control options.
Range
assignments
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Oracle General Ledger > Budgeting > Defining Budget Organizations
> Assigning Account Ranges to a Budget
You can use the Define Budget Organization window to perform the AutoCopy,
Ranges, and Assignments actions as well as the following functions:
Delete: Choose Delete to launch the delete budget organization program for
the current organization. Note that you do not have to delete all account
assignments from a budget organization before deleting that budget
organization.
Maintain: Choose Maintain to launch a concurrent process that adds newly
created account combinations or deletes recently disabled account
combinations for a budget organization.
Oracle General Ledger only assigns account combinations that fall within
the account ranges associated with a budget organization.
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AutoCopying Budget Organizations

AutoCopying Budget Organizations
Copy accounts and corresponding ranges from an
existing budget organization to a new budget
organization. Specify an override for at least one
Accounting Flexfield segment.
Source budget
organization
Maintenance
CC #100
Segment override
Balancing Segment
Cost Center
Account
New budget
organization
Administration
CC #200
___
200
___
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Oracle General Ledger > Budgeting > Defining Budget Organizations
> Copy Acct Ranges from an Existing Budget
If you have not assigned account ranges to a budget organization, you can
copy the range assignments from another budget organization using
AutoCopy.
After using AutoCopy, you can add other account ranges to the budget
organization, or delete copied ranges from your budget organization.
Autocopy submits a concurrent process that copies the account ranges
overriding the specific segment(s) indicated. When this process finishes, it
submits a second concurrent request that takes these new ranges and finds
all account combinations that fall within the range and assigns them to the
organization.
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Entering Budget Amounts

Budget amounts can be entered in many ways:
Journal mode
Worksheet mode
Individual account mode
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Budgeting > Entering Budget Amounts
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Finalizing Budgets
Finalizing Budgets
Use a three-step process to ensure the accuracy of
your budgets.
Step 1:
Review budget
information.
Step 2:
Correct budget
information.
Step 3:
Freeze budgets.
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Budgeting > Performing a Budget Inquiry
Budgeting > Freezing Budgets
Review budget amounts by period and account combination. Check for budget
variances and violations.
Perform online review of master/detail budgets. Compare summary balances
between master/detail budgets.
Freeze budgets to prevent further update to completed budgets.
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Types of Budget Entry Methods

Types of Budget Entry Methods
Budget Entry
Method
Journal Entry
Created?
Budget Amounts
No
Budget Journals
Budget Formulas
No
MassBudget Journals
Transferred Budget
Amounts
Budget Wizard
No
Journal Wizard
Upload Budgets
No
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Oracle General Ledger > Budgeting > Defining Budgets
Oracle General Ledger > Setting Up General Ledger >
Defining Sets of Books > Defining Sets of Books
When you define a budget, you choose whether to require budget journals for
your budget. If you enabled the Require Budget Journals flag for your set of
books, this option will already be selected and cannot be changed.
When you require budget journals, you can only use budget entry methods that
create journals, namely budget journals, MassBudgets, budget transfers,
consolidation of budget balances, and the Applications Desktop Integrators
Journal Wizard.
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Budgetary Control
Budgetary Control
Budgetary control is the process of recording
budget data and tracking encumbrance and actual
data against the budget.
You can track budget or encumbrance data using
one of the following methods:
encumbrance accounting
budgetary amounts
Funds checking is the feature of budgetary control

that helps prevent overspending budgets by
verifying available funds online before processing a
transaction.
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Oracle General Ledger > Budgeting > Funds Checking
Enabling budgetary control is the first step in setting up funds checking.
You can elect to perform funds checking with Budgetary control and
encumbrances. You can post encumbrances to individual line items accounts
and summary accounts. However, used alone, Budgetary control and
encumbrances does not automatically verify that there is sufficient funding in
the accounts.
Suggestion: to use funds checking, enable budgetary control when you create a
set of books. If you enable budgetary control later, you might overspend
budgets, because Oracles does not retroactively create encumbrances for
transactions approved before you enabled the budgetary control flag.
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Encumbrances
Encumbrances
Use encumbrances to track pre-expenditures
(encumbrances) and avoid overspending on a
project.
For full capabilities, use budgetary controls, which
are set up when you define a set of books.
If you choose thi s option, encumbrances are created
automatically for your transactions in General Ledger,
Oracle Purchasing and Oracle Payables.
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If you do not enable budgetary control, you can still enter manual encumbrances
via journal entry, but you cannot generate encumbrances from requisitions and
purchase orders.
There are two options for using encumbrance data to monitor over-expenditure
of a budget:
After actuals and encumbrances have been posted, you can generate reports
to show over-expenditures.
You can also use funds checking to prevent over-expenditures before they
occur.
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Agenda
Agenda

Set of Books
Journal Entries
Consolidations
Budgeting
Reporting
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Reporting and Analysis Capabilities

Reporting and Analysis Capabilities
Standard reports and listings
Financial Statement Generator (FSG)
Applications Desktop Integrator (ADI)

Report Wizard
Request Center
Analysi s Wizard
Oracle Financial Analyzer (OFA)
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The primary difference between standard reports and FSG reports is that
standard reports come predefined with Oracle General Ledger; standard reports
can be both financial in nature (journal listings, GL reports, trial balances,
account analysis and others) and non-financial in nature (chart of accounts,
consolidations, report definition, massallocation definition, and other reports).
FSG reports are customizable to meet the customers business needs.
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Standard Reports and Listings

Standard Reports and Listings
Oracle General Ledger gives you a complete set of
standard reports. Categories of standard reports and
listings include
Account Analysis: Accumulated balances of a range
of accounts and all journal entry lines that affect
that range.
Budget: Information about your budgets and budget
organizations, including account assignments and
budget hierarchies.
Chart of Accounts: Information about the accounts
in your chart of accounts, including segment
values, rollup ranges, and suspense accounts.
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Standard Reports and Listings (continued)

Multi-Company Accounting and Consolidation:
Information about your multi-company accounting
and consolidation activities. Intercompany
transactions made can be viewed using GLs GIS
feature.
Currency: Daily, period, and historical rates that
you defined for foreign currencies.
Financial Statement Generator: Summary or detail
information about the definitions of your Financial
Statement Generator report components, reports,
and report sets.
General Ledger: Beginning and ending account
balances, and all journal entry lines affecting each
account balance in your functional and foreign
currencies.
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Journals: Journal information in functional and
foreign currencies, including posted, unposted, and
error journals. You can also review journal activity
for particular periods and balancing segments.
Trial Balance: Account balances and activity for
functional and foreign currencies, budgets,
encumbrances, and actuals.
Execution: Automatically generated after
concurrent processes have completed.
Other: Information about
MassAllocation/MassBudget definitions, recurring
journal formulas, statistical units of measure, and
value-added taxes received and paid.
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Demonstration
Demonstration
This demonstration shows you how to run a standard
report.
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Oracle General Ledgers Financial Statement
Generator (FSG) is a powerful and flexible financial
report building tool you can use to build your own
custom financial reports without programming.
FSG Report
Rows
Columns
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Customized Financial Reports

Customized Financial Reports
Use a four-step process to define and run your FSG
reports.
1. Define row sets.
2. Define column sets.
3. Define financial reports and report sets.
4. Request financial reports and report sets.
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Before you define a report in Oracle General Ledger, draft your report on paper.
Sketching the report in advance helps you plan the format and content of the
report and saves you time later.
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Summary
Summary
In this module, you should have learned how to:
Describe the process flow of Oracle General Ledger
Identify the setup steps and implementation
considerations for Oracle General Ledger
Describe reporting options that can be used when
implementing Oracle applications
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Practice: Create a Journal Entry Batch

Task
Create a Journal Entry Batch
Business Situation
A memo from your controller informs you that the Consulting Department (#420)
has purchased computers in the latest open period. The computers are valued at
$85,000, of which the office is paying $5,000 cash and the remainder will be
covered as a liability over the following year. An additional memo from your
controller informs you of $135,000 of one-time sales revenues earned by selling
these computers on credit. Record the journals for the memos in one batch using
a batch control total.
Solution
In the Oracle Vision Demonstration Database
Use Responsibility General Ledger, Vision Operations (USA)
(N) Journals > Enter (B) New Batch
Line
10
20
30
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Batch: XX Computer Purchases and Sales (where XX is your student

number)
Control Total: 220000 (optional)
Select the Journals button
Journal: XX Computer Purchases (where XX is your student number)
Period: Current Period
Category: Addition
Currency: USD
Enter the following (where XX is your student number):
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Account
01-000-1560-21XX-000
01-000-1110-21XX-000
01-000-2210-21XX-000
Description
Computers and Software
Cash
Accounts Payable
Save

Debit
85000
Credit
5000
80000
Select Yes in the Decision window
At the Header level of XX Computer Purchases, press the New icon to

create a second journal entry within this batch
Name: XX Computer Sales (where XX is your student number)
Category: Revenue
Currency: USD
Line
10
20
Account
01-000-1210-21XX-000
01-420-4110-21XX-000
Description
Accounts Receivable
Revenue
Save
Return to the Navigator window
Debit
135000
135000
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Credit
Practice: Statistical Journal Entry

Task
Statistical Journal Entry
Business Situation
The controller wants to keep track of debit headcount statistics for Departments
410, 420 and 430 starting in the latest open period.
Solution
Responsibility > General Ledger, Vision Operations (USA)
(N) Journals > Enter (B) New Journal
Journal: XX Employee Statistics (where XX is your student number)
Category: Headcount
Currency: STAT
Description: Headcount
Line
10
20
30
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Account
01-410-9110-21XX-000
01-420-9110-21XX-000
01-430-9110-21XX-000
Debit
100
150
100
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Practice: Journal Posting

Task
Journal Posting
There are two methods to Post Journals:
More Actions button
Journals/Post form.
This Practice will cover both methods when you post the journal entries you
previously created in Practices Create a Journal Entry Batch and Statistical
Journal Entry.
Solution
(N) Journals >Enter
Find Batch: XX Computer Purchases and Sales (where XX is your

student number)
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(Tip: use wildcard. Ex: XX Com%)
Click the Find button
Select the More Actions button
Select the Post button
Click OK in the Note window
(N) Journals > Post
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Find Batch: XX Employee Statistics <Date> <Time> (where XX is

your student number)
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Click the Find button
Click in the check box to the left of the Period field to select XX
Employee Statistics for posting
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Select the Post button
Click OK in the Note window
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Practice: Reviewing Account Balances

Task
Reviewing Account Balances
Find the current period account balance for account 01-000-1210-21XX-000 and
review the journal entries that created the balance.
Solution
(N) Inquiry > Account
Click mouse in the Accounts row
Company
Department
Account
Sub-Account
Product
Low
01
000
1210
21XX
000
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1210
21XX
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Select the Show Balances button
Verify PTD as $135,000
Select the Journal Details button
Select the Show Full Journal button
From the top Menu Bar choose Tools >T Accounts
Click on the T Accounts Button
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Practice: Defining a Budget

Task
Defining a Budget
In this practice you will define a budget for the 12 periods January 2000 through
December 2000.
Solution
Responsibility >General Ledger, Vision Operations (USA)
(N) Budgets > Define > Budget
Name: XX Budget 2000 (where XX is your student number)
Status: Open
First: Jan-00
Last: Dec-00
Select the Open Next Year button
Select Yes in the Decision window
Select OK in the Note window
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Practice: Define a Budget Organization

Task
Define a Budget Organization
In this practice you will create a budget organization named XX Territory to be
associated with the XX Budget 2000 budget created in Practice Defining a
Budget.
Solution
Responsibility >General Ledger, Vision Operations (USA)
(N) Budgets > Define > Organization
Name: XX Territory (where XX is your student number)
Display Sequence:
Company
1
Department
Account
3
Sub-Account
Product
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Select the Ranges button
Enter the following information (where XX is your student number)
Line
10
20
Low
01-420-7120-21XX-000
01-410-9110-21XX-000
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High
01-420-7740-21XX-000
01-430-9110-21XX-000
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Save and select OK in the Note window
Task
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Verify that the process has completed.
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Solution
Select (M) View > Requests

Type
Entered
Entered
Currency
USD
STAT
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Practice: Assigning Budget Accounts

Task
Assigning Budget Accounts
In this practice you will assign new accounts to your previously defined XX
Territory budget organization (Practice: Define a Budget Organization)
Solution
(N) Budgets > Define > Organization
Query your budget organization:
[F11] XX Territory [Crtl + F11]
Select the Ranges button
Select the range 01-420-7120-21XX-000 through 01-420-7740-21XX000
Select the Range Assignments button
Enter the following (where XX is your student number) for Line 10:
Account Number:
01-420-7120-21XX-000
01-420-7640-21XX-000
01-420-7650-21XX-000
01-420-7740-21XX-000
Save
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Practice: Entering Budget Amounts

Task
In this practice you will use budget rules to enter amounts for your previously
defined budget and budget organization (Practices Defining a Budget and Define
a Budget Organization)
Solution
(N) Budgets > Enter > Amounts
Budget Organization: XX Territory
Budget: XX BUDGET 2000
Accounting Periods From To: <List of Values>
Currency: STAT
Select OK in the Find Accounts window
Description
Headcount
Account
01-420-9110-21XX-000
Select Account 01-420-9110-21XX-000
Select the Budget Rules button
Rule: Repeat per Period
Amount: 40
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Select the OK button
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Save
Change Currency to USD
Low
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Budget Amount
40 persons per month
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High

Budget Rule to Use

Repeat per Period
01
420
7640
21XX
000
01
420
7740
21XX
000
Select OK in the Find Accounts window
Select Account 01-420-76500-21XX-000
Select the Budget Rules button
Rule: Divide Evenly
Amount: 36000
Save
Choose the Post button
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Practice: Running Standard Reports

Task
Running Standard Reports
Business Situation
Your manager has asked you to run a Chart of Accounts-Account Hierarchy
Listing. After you have submitted the report, view your request and report output
online
Solution
(N) Reports > Request > Standard
Select OK to submit a Single Request in the Submit a New Request

window
Request Name: Chart of Accounts-Account Hierarchy <List of Values>
Select the Submit Request button
Select No in the Decision window
Task
View the Request online
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Solution
(M) View > Request
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Select Find to find All My Requests
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If the Request has not completed, select the Refresh Data button until the request
has Completed
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Select the View Output button
Close window
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Practice: Creating and Submitting a Request Set

Task
Creating and Submitting a Request Set
Business Situation
Your manager has asked you to create a Request Set containing Journals-General
(180 Char) and General Ledger-(180 Char). Some of the Parameters for the
request Journals-General (180 Char) will be predefined. Each request will be
submitted upon the completion of the previous request, and the processing will be
aborted should a request fail.
Solution
(N) Other > Report > Set
Part A: Define the Request Set
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Select the Request Set Wizard button
Select Next to run the requests Sequentially in the Request Set Wizard
window
Select Next to Abort Processing in the Request Set Wizard window
Set: XX Request Set (where XX is your student number)
Application: Oracle General Ledger <List of Values>
Description: XX Journal and General Ledger Set (where XX is your

student number)
Select the Next button
Select Next to print each request As Each Request in the Set Completes
in the Request Set Wizard window
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Program: Journals-General (180 Char) <List of Values>
Program: General Ledger-(180 Char) <List of Values>

Select the Finish button
Select OK in the Note window
Part B: Define the Parameters for Journals-General (180Char)
Select the Define Stages button in the Request Set window
Select the Requests button to define the Parameters for Journals-General

(180Char)
Select the Parameters button
Enter the following:
Save
Set
15
20
30
40
50
60
70
80
Prompt
Type
Posting Status
Currency
Period
Start Date
End Date
Source
Batch Name
Type
Constant
Constant
Constant
Value
Line Item
Posted Journals
USD
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Task
Submitting the Request Set
Submit the Request Set you just created
Solution
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(N) Reports > Request > Standard
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Select Request Set by click mouse in the Option Button, and select OK
Request Set: XXRequest Set <List of Values>
Enter the following Parameters for Journals-General(180 Char)
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Posting Status
Period
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Posted Journals
May-97
Enter the following Parameters for General Ledger-(180 Char)


Type
Line Item
Currency
USD
Balance Type
A
Starting Period
May-97
Ending Period
May-97
Accounting Flexfield
Low
01
410
5800
0000
000
High
01
430
5800
0000
000
Select the OK button (twice)
Select the Submit Request button
Select No in the Decision window
Task
View the output online
Solution
(M) View > Requests
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Select Find to find All My Requests
If the Request has not completed, select the Refresh Data button until the
request has Completed
Notice that 5 requests have been submitted

Request Set
Journals-General (180 Char) Submission
Journals-General (180 Char) Output
General Ledger (180 Char) Submission
General Ledger (180 Char) Output
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Applications Desktop
Integrator
Chapter 3
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Applications Desktop Integrator

Chapter 3 - Page 1
Module 3
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Chapter 3 - Page 2
Objectives
Objectives
After completing this module, you should be able to
describe the features of the Application Desktop
Integrator.
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Chapter 3 - Page 3
Agenda
Agenda
ADI Family
Journal Wizard
Budget Wizard
Report Wizard
Analysis Wizard
Request Center
Account Hierarchy Editor
Assets Integrator
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Chapter 3 - Page 4
ADI Family
ADI Family
General
General
Ledger
Ledger
Integration
Integration
Request
Request
Center
Center
Submit reports
and programs
Publishing
Use themes
Monitor requests
Assets
Assets
Integration
Integration
Journals
Record physical
Budgets
inventor y
Reports
Create assets
Analysis
Account Hierarchy Import text files
Editor
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Chapter 3 - Page 5
General Ledger Functionality

General Ledger Functionality
Enter Journals
Enter Budgets
Account Hierarchy Editor Budgets
Define Report
Request Center
Analyze Report
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(Help) Oracle Financial Applications > Applications Desktop

Integrator > Introduction > General Ledger
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Chapter 3 - Page 6
Assets Functionality
Assets Functionality
Create Assets
Import Text Files
Record Physical Inventor y
Request Center
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Integrator > Introduction > Oracle Assets
Integrator > Introduction > Oracle Applications
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Chapter 3 - Page 7
Agenda
Agenda
ADI Family
Journal Wizard
Budget Wizard
Report Wizard
Analysis Wizard
Request Center
Assets Integrator
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Chapter 3 - Page 8
ADI Journal Wizard Features

ADI Journal Wizard Features
ADI Journal Wizard lets you:
Use all the features of Microsoft Excel to assist with
data entry such as cut, copy, and paste
Link two or more journal worksheets together to
save time and data entry
Save your journal worksheet as an Excel file to use
again
Check whether converted amounts are within a
specified threshold
Allow only balanced journals to upload to General
Ledger
Enforce fixed conversion rates between the EURO
and National Currency Units
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(Help) Oracle Financial Applications > Oracle Applications Desktop

Integrator > Journal Wizard
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Chapter 3 - Page 9
Integrating with Oracle General Ledger

Integrating with Oracle General Ledger
You create your journal entry in a spreadsheet,
using all of the Microsoft Excel features that you are
familiar with. When you are ready, upload your
journal entry from ADI to the GL_INTERFACE table.
Import your journal from the GL_INTERFACE table
into Oracle GL to create a journal entry. When your
journal entries have been validated by General
Ledger, unposted journal entries are created.
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Chapter 3 - Page 10
Create Journal Worksheet

Create Journal Worksheet
Complete two regions in the Create Journal Worksheet
window:
Journal Type
Functional Actuals - Journal entries using the
functional currency of your set of books
Foreign Actuals - Journal entries using a foreign
currency
Budgets - Journal entries that will be posted against a
budget (choose a budget org from the poplist)
Encumbrances - Journal entries to update
encumbrance balances
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If a company requires budget journals (predominantly used by the public sector),

it cannot use ADI Budget Wizard to upload budgets. Use the Journal Wizard
functionality instead. See the module on Budget Wizard for more information.
If you need to enter a statistical journal, select Functional Actuals and change the
currency to STAT once you have created the Journal worksheet.
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Chapter 3 - Page 11
Number of Journals
Number of Journals
You can use a journal worksheet to enter one journal
entry or a journal batch. You must specify the number
of journal entries you are going to enter before the
Journal Wizard will create a journal worksheet.
or
Single
Multiple
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Number of Journals
Single: Use to prepare an individual journal entry. Information common to
all lines in your journal entry will be reflected in the journal worksheet
header.
Multiple: Use to prepare multiple journal entries. All information pertaining
to a journal entry, even that which is common to more than one line, is
entered on each line of a multiple journal entry.
With multiple journal entries, you can combine journal entries which have
different categories, sources, and currencies on a single journal worksheet.
You can then upload these different journal entries at the same time. When
Oracle General Ledger imports the entries from the GL Interface table, it
will separate the lines into appropriate entries and batches.
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Chapter 3 - Page 12
Results
Results
Choose OK in the Define Worksheet Layout window
and the Create Journal Worksheet window.
ADI launches Excel, and displays your journal
worksheet according the definitions you chose.
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Chapter 3 - Page 13
Entering Flexfield Combinations

Entering Flexfield Combinations
You can enter flexfield combinations in a variety of
methods:
Directly
Using the list of values
Using account aliases
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Chapter 3 - Page 14
Cross Validation Rules

Cross Validation Rules
When you use the list of values, all segment values
and combinations are validated.
If you have the profile option Flexfields: Validate On
Server set to Yes, any combinations that were
entered directly are cross-validated during upload,
forcing you to correct any errors before a journal
reaches the interface table.
If the profile option Flexfields: Validate On Server is
set to No, any combinations you enter directly are
validated when you import.
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Chapter 3 - Page 15
Uploading Journal Entries to Oracle General Ledger

Uploading Journal Entries to Oracle
General Ledger
After creating journal entries in a journal worksheet,
you must upload them to Oracle General Ledger for
posting.
Journal Import
Upload to interface
GL_INTERFACE
Table
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Chapter 3 - Page 16
Using Journal Upload Options

When you choose the Upload to Interface icon from
the Ledger poplist of the ADI toolbar, the Upload
Journals to Interface window appears:
Select to upload flagged rows or all rows
Select a prevalidation type
Full: validates all journal data and performs crossvalidation
Partial: validates all journal data except accounts
None: perform s segment security checking only
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Chapter 3 - Page 17

Start Journal Import: to make your journal upload
and import to General Ledger a one-step process.
Post Account Errors to Suspense: to post journal
lines with errors to a predefined suspense account
(set in General Ledger).
Create Summary Journals: to summarize all journal
lines that share the same account combination.
Descriptive Flex: to import descriptive flexfields
with or without validation (use when you have
defined a descriptive flexfield in General Ledger
Enter Journals window).
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Chapter 3 - Page 18
Using Journal Import Options

Using Journal Import Options
If you choose to upload and import your journals in
two steps, you can submit journal import from the ADI
toolbar. The Request Center monitors your request.
Choose Submit Process from the Ledger poplist of the
ADI toolbar and complete the Select Process Type
window.
You can continue creating more journal entries in
Excel because the concurrent process runs in the
background.
If you enabled the Show Upload Success Indicator
in the ADI General Options window, the messages
column of the worksheet displays a green success
indicator in each row you have uploaded.
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Chapter 3 - Page 19
Troubleshooting the Import Process

Troubleshooting the Import Process
You must have a valid accounting date before you
can upload.
You must have a value in either the debit or credit
fields.
You must have a balanced journal entry if the profile
option GLDI: Force Journal to Balance is set to yes.
If you specify a reversal period but leave the
Reverse Journal field blank, the journal upload
process will fail for that journal.
ADI interprets three adjoining blank rows as the end
of the journal entry. Any lines that appear after three
blank lines will be ignored.
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Chapter 3 - Page 20
Agenda
Agenda
ADI Family
Journal Wizard
Budget Wizard
Report Wizard
Analysis Wizard
Request Center
Assets Integrator
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Chapter 3 - Page 21
Overview of the Applications Desktop Integrator

Overview of the Applications Desktop
Integrator
ADI includes the Budget Wizard and Journal Wizard
to simplify your budgeting work with Oracle General
Ledger.
A/C
A/C
01.100.1120.000.000.000
01.100.1120.000.000.000
01.100.4160.000.000.000
01.100.4160.000.000.000
01.100.4199.000.000.000
01.100.4199.000.000.000
Debit
Credit
Debit
Credit
$100
$100
$75
$75
$25
$25
Budget Worksheet/
Journal Worksheet
GL_BUDGET_INTERFACE
General Ledger
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Oracle General Ledger > Budgeting > Entering Budgets Using ADI
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Chapter 3 - Page 22
Audit Trail Implications

Audit Trail Implications
When you use the Budget Wizard, Oracle General
Ledger does not create an audit trail
When you use the Journal Wizard, Oracle General
Ledger does create an audit trail
Use this ADI feature...
Instead of this Oracle General

Ledger window ...
Budget Wizard
Enter Budget Amounts window
Journal Wizard
Enter Budget Journals window
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Chapter 3 - Page 23
Overview of Budget Wizard

Overview of Budget Wizard
The Budget Wizard:
Automatically builds a budget worksheet based on
the budgets and budget organizations that you set
up within Oracle General Ledger
Downloads all of the account combinations that are
assigned to your budget organization, along with
any existing budget amounts
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Applications Desktop Integrator > Budget Wizard
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Chapter 3 - Page 24
Budget Wizard Possibilities

Budget Wizard Possibilities
With Budget Wizard, you can:
Download or modify existing budget balances from
Oracle General Ledger, or create a new budget
Create and update balances manually, using budget
rules, or using formulas and models
Graph the budget values in your worksheet as area
charts, bar graphs, column graphs, line graphs, or
pie charts
Analyze and compare actual and budget values
Save a budget worksheet to your PC
Upload new budget balances to Oracle General
Ledger
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Chapter 3 - Page 25
Budget Wizard Key Benefits

Budget Wizard Key Benefits
Eliminates double maintenance by combining a
spreadsheet with the budget elements that you
define in Oracle General Ledger
Automatically calculates your budget amounts
using any type of formula
Provides a clear picture of how your budget and
actual amounts compare for a wide range of
accounts
Allows you to justify or explain your budget using
budget notes; no external documentation or
paperwork is required
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Chapter 3 - Page 26
Agenda
Agenda
ADI Family
Journal Wizard
Budget Wizard
Report Wizard
Analysis Wizard
Request Center
Assets Integrator
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Chapter 3 - Page 27
Overview
Overview
ADI Define Report is a graphical front-end
alternative used to define new Financial Statement
Generator (FSG) reports or create them from
existing report components. The same terminology
and logic is used for both Define Report and Oracle
General Ledger FSG.
After defining your report components, you must
save them to Oracle General Ledger (GL) as FSG
report objects in order to publish reports.
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If you want users to just submit reports and not create or modify report
components, give them access to Request Center only.
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Chapter 3 - Page 28
Overview (continued)
Overview (continued)
You can download existing FSG reports or report
components, modify them in Define Report, and
then save the modified definition back to the
database.
When you are ready to publish your report, use the
Request Center to submit and publish your report.
You can choose to publish your report output as a
spreadsheet, Web (HTML), or text file. The Request
Center is discussed in the lesson on submitting and
publishing reports.
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Chapter 3 - Page 29
Define Report Features

Define Report Features
Provides a spreadsheet-based interface to the GL
financial reporting engine, FSG
Includes a wizard-driven interface that decreases
the number of keystrokes required to define a report
Expands upon the familiar spreadsheet interface by
adding menu choices, including right mouse button
support to quickly invoke a special Define Report
menu
Supports report definitions for all user levels; which
method you choose depends on how comfortable
you are with writing financial reports
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Chapter 3 - Page 30
Define Report Features (continued)

Define Report Features (continued)
Includes a Report Navigator that gives you a clear
understanding of the structure of even the most
complex report
Includes a new Content Set Generator that enables
you to easily create new content sets or modify
existing ones
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Chapter 3 - Page 31
Integrating with Oracle GL

Integrating with Oracle GL
In Oracle GL, a report is made up of a row set and a
column set. A financial report is the intersection of a
row set and column set.
Defining a Row Set - Generally, when you define a
row set you define the account assignments. You
also define the format of the rows, such as
descriptions, indentations, and lines. A row can be a
descriptive row or text only, composed of account
assignments, or a calculation.
Defining a Column Set - Generally, when you define
a column set you define attributes of your report
such as the format mask, factor, balance type, and
relative period. You can define calculations,
exceptions, and control values (for budgets and
currency). You must also define column headings.
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Integrator > Getting Started with ADI
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Chapter 3 - Page 32
Agenda
Agenda
ADI Family
Journal Wizard
Budget Wizard
Report Wizard
Analysis Wizard
Request Center
Assets Integrator
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Chapter 3 - Page 33
Analyze Report Features

Analyze Report Features
Analyze Report offers full support for average
balances and cross-set of books drilldown
Segment security is enforced using the Oracle
General Ledger (GL) profile option FSG: Enforce
Segment Value Security
With multidimensional data analysis, you can drag
account segments, periods, and other dimensions
to different areas of your drill window. Analyze
Report reorganizes the displayed information to
reflect your new dimensions
Data can be exported to Microsoft Excel or the
Windows clipboard
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Integrator > Analysis Wizard > Analysis Wizard Features
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Chapter 3 - Page 34
Analyze Report Features (continued)

Analyze Report Features (continued)
You can drill down to summary accounts, detail
accounts, journal details, and subledger details.
Note: Before you can use Analyze Report, you must
use Request Center to publish a financial report to a
Microsoft Excel spreadsheet.
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Integrator > Analysis Wizard > Analysis Wizard Features
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Chapter 3 - Page 35
How to Start Analyze Report

How to Start Analyze Report
1. Publish a financial report to a Microsoft Excel
spreadsheet and select a specific financial amount
(not a calculated amount).
2. Click Analyze Report on the Applications Desktop
Integrator (ADI) toolbar or double-click on the amount.
Note: You must enable the double-click analysis
functionality in the Environment region of the Default
Drill Options window for Analyze Report.
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Chapter 3 - Page 36
How to Start Analyze Report (continued)

How to Start Analyze Report (continued)
3. The Context window opens, displaying information
about the amount on which you have chosen to drill
down. Included is the amount, what the amount
includes (Detail, Summary, or Both balances), the
period, the currency, and the amount type.
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Chapter 3 - Page 37
About the Analyze Report Toolbar

About the Analyze Report Toolbar
From the Analyze Report toolbar, you can access all
the features of Analyze Report for drilling down to
detail accounts and balances.
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Integrator > Analysis Wizard > Analysis Wizard Toolbar
Make sure that you have chosen a cell from the financial report that is a balance,
not a calculation. Test each of the buttons to better understand each of the
functions. Export to Excel is a very useful feature.
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Chapter 3 - Page 38
Possible Drilldown Flows

Possible Drilldown Flows
Context 1
Summary
Amount $7,000
T.199 2,000
T.299 4,000
T.399 1,000
Detail for T.299

01.200 2,000
01.201 500
01.202 1,500
Journal Details
Line 10 01.202 800
Line 20 01.202 450
Line 30 01.202 250
Subledger Details
BusinessWorld Inv#1923 7/15/98 800
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The Show Summary Accounts button is only available when summary ranges are
defined for the context amount.
The Show Detail Accounts button is only available when detail account ranges are
defined for the context amount.
Subledger details are only available for journals originating from Oracle
Receivables, Payables, Assets, Projects, Purchasing, Inventory, and Work in
Process (WIP).
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Chapter 3 - Page 39
Using Dimensions and Display Options

Using Dimensions and Display Options
You can use the online analytical processing (OLAP)
capabilities of Analyze Report to pivot your report
dimensionsyour individual account segmentsin
real time.
This enables you to work through various
scenarios, rather than writing several custom
reports
Analyze Report creates a matrix showing the
detailed accounts by period. The matrix has three
dimensions: page, row, and column
Note: The row dimension values are the flexfield
segment values, and the column dimension values
are time
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Integrator > Analysis Wizard > Drilling Down to Summary and Detail
Accounts
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Chapter 3 - Page 40
How to Change Your View

Simply drag one segment (such as the account
segment) from one dimension (the row dimension)
and drop it into another dimension (such as the
column dimension)
Use your right mouse button to quickly move
segments to the row dimension or the page
dimension
The right mouse button also enables you to show all
values or to limit the values to view by filtering the
values
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Integrator > Analysis Wizard > Drilling Down to Summary and Detail
Accounts
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Chapter 3 - Page 41
Agenda
Agenda
ADI Family
Journal Wizard
Budget Wizard
Report Wizard
Analysis Wizard
Request Center
Assets Integrator
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Chapter 3 - Page 42
Overview
Overview
The Request Center provides a central location for
submitting, publishing, and monitoring reports and
concurrent programs for any Oracle Application
Some of the benefits of Request Center include:
Publishing reports automatically to a Web page or
spreadsheet
Using themes to format reports
Formatting at the cell level
Monitoring any concurrent request submitted from any
Oracle application across multiple database s
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Cell level formatting pertains to the financial reports used in Oracle General
Ledger (GL). Variable reports are used in Oracle Assets. These reports are similar
to standard reports, except that you can choose the columns and order of the
columns in the report. Variable reports used to be known as Report eXchange.
Some reports submitted from the Request Center do not contain a list of values
and require you to enter their criteria manually.
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Chapter 3 - Page 43
Use Request Center

Use Request Center
Submit any standard fixed, variable format, or
financial report from a central location.
Publish the output to a spreadsheet or Web page
automatically.
Format reports by applying themes.
Use cell level formatting to enhance the appearance
of your reports.
Monitor your concurrent requests.
Create a hotlist to mark important requests for quick
reference.
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Chapter 3 - Page 44
Using the Request Center

Using the Request Center
Use the Request Center to:
Submit financial reports or any Oracle Applications
standard report or listing
Submit variable format reports
Automatically publish the report to spreadsheets or
a Web page
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Chapter 3 - Page 45
Toolbar Icons
Toolbar Icons
From the Request Center toolbar, you can access all of
the Request Center features for submitting,
monitoring, and publishing your reports.
Submit Report - Submit standard or financial reports
to be run on your server
Show Request Details - Show submission details,
such as phase, status, and request date, for a
selected request
Cancel Request - Cancel a concurrent request
View Output/Log - Download the report output or
log file of a selected request and view it in the
default output viewer
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Integrator > Getting Started with ADI > ADI Toolbar
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Chapter 3 - Page 46
Toolbar Icons (continued)

Publish Report - Download and publish the report
output of a selected request to a Web page,
Microsoft Excel worksheet, or text viewer
Publish Sets - Download and publish report and
request sets, created in Oracle Applications, using
the Request Center. You can apply publishing
templates (themes and publishing options) to each
report in the set then publish all reports in a
Financial or Standard Report set. Publishing
Templates can be saved and reused.
Report Manager Tools - Set the formatting options
for your report output (You can select from
predefined report themes or define your own)
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Chapter 3 - Page 47

Print Output/Log - Download a report output or log
file and print it to a local or network printer
Monitor Request - Select a request to monitor (The
request is added to the Pending or Completed tab in
the Request Center window)
Add Request to Hotlist - Place a completed request
in a special hotlist holding area (Deleting requests
from the Completed tab does not affect the entries
in the hotlist)
Stop Monitoring Selected Request - Remove a
selected request from either the Pending,
completed, or Hotlist tabs of the Request Center
window
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Chapter 3 - Page 48

Stop Monitoring ALL Requests - Remove all
requests from the Pending, Completed, or Hotlist
tabs of the Request Center window
Signon - Sign on to an Oracle Applications database
(You must sign on before you can monitor requests
for a specific database)
Disconnect - Disconnect from the selected Oracle
Applications database
Change Responsibility - Select a different
responsibility when you have signed on to the
database
ADI - Start ADI if it is installed on your PC
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Chapter 3 - Page 49

Oracle Applications - Start Oracle Applications if
they are installed on your PC (When you click this
button, you will be asked to select an applications
database. If you select the same database that you
are using for your Request Center session, you will
not have to enter your username and password in
Oracle Applications)
Options - Set the Request Center options
Help - Access the Request Center online Help
features
Minimize - Minimize the Request Center window
Exit - Close and exit the Request Center
Pending Request - Indicates that a request is
currently pending
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Chapter 3 - Page 50
Selecting a Report Type

Selecting a Report Type
When you click the Submit icon in the Request Center
toolbar, you open the Report Submission and
Publishing window. You can select from the following
reports in the Report Type region:
Standard (Fixed Format) - Submit any standard
reports that are available in Oracle Applications if
they are available to your responsibility
Standard (Variable Format) - Submit any variable
format report that enables the user to define the
content and order of the report (variable reports are
used only in Oracle Assets)
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Integrator > The Request Center > Submitting Reports
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Chapter 3 - Page 51
Selecting a Report Type (continued)

Selecting a Report Type (continued)
Financial Statement - Submit any financial report
that has been defined if your responsibility enables
you to access the reports (Financial reports are
used only in Oracle GL)
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Chapter 3 - Page 52
Selecting Publishing Options

Selecting Publishing Options
You can publish report outputs to Web pages, a
spreadsheet, or a text file. You can also choose to
have the report published automatically after
processing.
Publish Report - If you select this, ADI will publish
your report
Prompt - If you select Prompt, a dialog box appears
before the system publishes the report.
Output Type - Select how you want to publish your
report output
Themes - Select a theme to apply formatting to your
report (themes are covered later in the lesson)
Options region - Select options based on the output
type that you have selected
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Integrator > The Request Center > Setting Report Publishing Options
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Chapter 3 - Page 53
Overview of Web Publishing

Overview of Web Publishing
Web publishing eliminates printing reports for
manual distribution. You can publish reports
directly to a Web site by linking output to an HTML
Web page on a corporate intranet or on the Internet
Interested users log in to the Web site to subscribe
to or view selected reports. Those users who need
to analyze the report further can download a
spreadsheet version of the report from the Web site
You can apply report themes or custom formatting,
such as colors, fonts, and a corporate logo, to make
your outputs look more professional
Each time you run the report, you have the option of
automatically updating the Web page
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Chapter 3 - Page 54
Using Themes
Using Themes
You can format any report request that you submit
through the Request Center by applying a report
output theme when you publish the report
You can create new themes or customize existing
themes in a spreadsheet environment by using a
combination of ADI and Microsoft Excel formatting
features
You can fine-tune your themes by using tokens and
cell level formatting to control the appearance of
your financial reports down to the cell level; that is,
the intersection of a row and a column
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Integrator > The Request Center > Setting Report Submission
Options > Formatting Report Output > Using Report Output Themes
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Chapter 3 - Page 55
Agenda
Agenda
ADI Family
Journal Wizard
Budget Wizard
Report Wizard
Analysis Wizard
Request Center
Assets Integrator
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Chapter 3 - Page 56
Overview
Overview
With the Account Hierarchy Editor, you can create,
maintain, simulate, view, and print hypothetical
account hierarchy structures in a variety of formats.
Your changes are directly reflected in General
Ledger programs, windows and reports. The
Account Hierarchy Editor interface is intuitive and
easy to use. You can drag and drop segments and
hierarchies to modify existing structures or to build
new ones.
You can simulate hierarchies, for example, to
predict the outcome of reorganizations.
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Integrator > The Account Hierarchy Editor
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Chapter 3 - Page 57
Integrating with General Ledger

In General Ledger, segment values comprise your
accounting flexfield to create account
combinations. GL account combinations are used to
store balances for all your transactions and journal
entries.
Parent values are nonpostable and nonbudgetable
segments that have child values assigned to them.
Child values can be other lower-level parent values
or standard child segment values.
Parent values are used in General Ledger for
financial reporting, the MassAllocation feature, and
in conjunction with summary accounts.
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Chapter 3 - Page 58

The following diagram illustrates the concept of
parent levels in an account hierarchy.
Note: a parent level contains a parent segment
value that has one or more child segment values
associated with it.
When you select a parent level in the Account
Hierarchy Editor, you are selecting the parent
segment value plus all of its child values, which
include lower level parents and their associated
child values.
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Integrator > The Account Hierarchy Editor > Parent Levels in an
Account Hierarchy
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Chapter 3 - Page 59
Parent Levels in an Account Hierarchy

Parent Levels in an Account Hierarchy
Topmost Parent
Lower Level Par ents
Lev el 1
Lev el 2
Lev el 3
3000
3000
3100
3100
3110
3110
3111
3111
3150
3150
3115
3115
3180
3180
3200
3200
3220
3220
3250
3250
3300
3300
3310
3310
3311
3311
3350
3350
3312
3312
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Chapter 3 - Page 60
Agenda
Agenda
ADI Family
Journal Wizard
Budget Wizard
Report Wizard
Analysis Wizard
Request Center
Assets Integrator
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Chapter 3 - Page 61
ADI Integration
ADI Integration
Run ADI as a stand-alone application.
You can create worksheets, which you save and
work on later.
You can create assets and enter physical inventory
at any location, without being connected to your
server.
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Chapter 3 - Page 62
ADI Features
ADI Features
Create Assets: Uploads assets from a spreadsheet
Import Text Files: Imports text files to an asset or
inventory worksheet
Record Physical Inventory: Uploads physical
inventory amounts
Request Center: Submits and publishes reports
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Chapter 3 - Page 63
Create Assets
Create Assets
Generate a worksheet based on the users
requirements
Create manual asset additions in a spreadsheet
Populate Mass Additions table from a spreadsheet
Select poplists to aid in the asset addition process
Validate data before it is loaded into Oracle Assets
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Chapter 3 - Page 64
Creating Assets
Creating Assets
Use the Create Assets feature to:

Create assets in a disconnected environment
Build customized asset worksheets
Enter asset data manually
Upload the data automatically into Oracle Assets
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Chapter 3 - Page 65
Import Text Files

Import Text Files
Map flat data files into asset or physical inventory
spreadsheets
Create reusable templates
Define a template to map between Oracle Assets
and third party applications
Use a barcode scanner to gather physical inventory
information and map the scanner output file into a
physical inventory spreadsheet
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Chapter 3 - Page 66
Importing Text Files

Importing Text Files
The Import Text File feature enables you to import data
from:
Legacy systems
Third party payables applications
Barcode scanners
Any flat data file source
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Chapter 3 - Page 67
Record Physical Inventory

Record Physical Inventory
Generate an inventory worksheet to be completed
offline
Customize the layout to the users requirements
Upload data from a barcode scanner
Validate data before it is uploaded
View comparison reports to determine if assets are
missing or in the wrong location
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Chapter 3 - Page 68
Recording Physical Inventory

Recording Physical Inventory
Use the Record Physical Inventory feature to:
Build personalized inventory spreadsheets
Enter inventory data while disconnected from the
server
Map files created from scanned barcode data
Generate comparison reports
Upload data automatically into Oracle Assets
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Chapter 3 - Page 69
Summary
Summary
In this module, you should have learned how to
describe the features of the Applications Desktop
Integrator.
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Chapter 3 - Page 70
Practice: Using the Journal Wizard

Tasks
In this practice, you will create a customized journal worksheet.
Step 1: Create a Worksheet
Create a single journal worksheet with a type of functional actuals.
Step 2: Modify the Worksheet Layout

1 Modify the worksheet by moving the Category field to the very
bottom of the header.
2 Include batch and journal name as well as line description.
Step 3: Enter a Journal Entry

1 Enter a journal entry for the latest open period. The category is
Reclass.
2 Verify the context information.
3 Name your batch and journal Unique Identifier Salary Reclass. Use
your two-digit student number as your unique identifier.
Hint: Use the same unique identifier in all of the practices.

Write the batch and journal name
here:________________________________.
4 Enter the following journal entry:
Note: XX = your student number
Account
Debit Credit
01 410 5800 21XX 000

01 420 5800 21XX 000
01 430 5800 21XX 000
01 000 2210 21XX 000
1800
900
900
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Upload your journal entry. Accept the defaults.
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Solution
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Step 1: Create a Worksheet

1. Click the Enter Journals icon on the toolbar.

Chapter 3 - Page 71
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2. Select Functional Actuals and single journal entry for a new workbook.
Step 2: Modify the Worksheet Layout
1. Click the Edit the Layout button.
2. Use the second down arrow button to move the Category field to the end,
and select the Journal Name and Batch Name check boxes.
3. Select the Lines tab and add the description field.
4. Click OK to close the Define Worksheet Layout window.
5. Click OK again to close the Create Journal Worksheet window and open
the Excel spreadsheet.
Step 3: Enter a Journal Entry
1. Select the latest open period designated by the instructor as the date. To
do this, double-click to the right of the Date field to open the list of values
from which to make your selection. Make sure that the toolbar is invoked.
This date determines the effective date and General Ledger period.
2. Select the Reclass category by double-clicking to the right of the ListText field.You can also click the List of Values icon on the ADI toolbar.
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Button.
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4. Name your batch and journal Unique Identifier Salary Reclass. Use your
initials or your two-digit student number as your unique identifier.
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Write the batch and journal name

here:________________________________.
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5. Enter the journal information.
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Step 4: Upload Your Journal Entry
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is interfaced. You should receive a message notifying you that your
upload was successful and that journal import has been initiated. Click
OK.
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Chapter 3 - Page 72
Practice: Using the Report Wizard

Task
Create a New Trend Report
Your supervisor has asked you to create a new trend report. The report should
display the actual balances for the current and previous three months. It should
also display six rows. Name your report XX Trend Report where XX represents
your student number
Solution
1. Click the Define Report icon on the toolbar.
2. Select the Define Report option.
3. Click the Next button to open the Report Wizard Step 2 window.
4. Select the Blank Report option.
6. In the Report Name field enter XX - Trend Report.
7. In the Number of Rows field, enter 6.
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8. In the Number of Columns field, enter 4. Accept the remaining default

values.
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to create a trend report.
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12. For the Balance Type, select Actual.
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Chapter 3 - Page 73
Practice: Using the Request Center

Task
In this practice, you will submit a financial report that is published to text.
Business Situation
You need to include a financial report for the month of January 1998 within a
document, so you decide to publish to text.
Step 1: Select a Financial Report
Select the Company Balance Sheet report from the list of values and run the
report for the period Jan-98.
Step 2: Publish to Text
Publish the output to text.
Solution
Step 1: Select a Financial Report
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1. Select the Request Center on the task bar at the bottom of your screen.
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2. Click the Submit Request icon on the Request Center toolbar.

3. Select a Financial Statement report type.
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4. In the Existing Report field, select Company Balance Sheet from the list
of values.
5. In the Period field, select Jan-98 from the list of values.
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Step 2: Publish to Text
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1. Select the Text (Plain) output type.
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2. Select the options shown in the following screenshot:
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3. Click the Options button. Accept the defaults.

4. Click the green check mark to submit the report.
5. Click OK to acknowledge the submission of the report.

Chapter 3 - Page 74
6. Your request will be in the Pending tab of the Request Center window.
When the Request Center window appears, click Yes.
7. View the output.
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Chapter 3 - Page 75
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Chapter 3 - Page 76
Suppliers
Chapter 4
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Suppliers
Chapter 4 - Page 1
Suppliers
Suppliers
Module 4
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Suppliers
Chapter 4 - Page 2
Objectives
Objectives
identify the setup steps and considerations that are
required for Supplier management.
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Suppliers
Chapter 4 - Page 3
Agenda
Agenda
Supplier information
Supplier setup considerations
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Chapter 4 - Page 4
Supplier and Supplier Site Settings

Supplier and Supplier Site Settings
Supplier
Tokyo
Paris
New York
Purchasing site
RFQ Only site
Purchasing site
Pay site
Pay site
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A site could be made RFQ Only in the beginning of negotiations with a

supplier. Once the decision has been made to use the supplier, then the supplier
could become both an RFQ Only and Purchasing site.
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Chapter 4 - Page 5
Entering Supplier Information

Oracle Payables Supplier Information
Information
Type
General
Enter at
Supplier
Enter at
Supplier Site
Yes
Yes
Classification
Yes
No
Contacts
No
Yes
Accounting
Yes
Yes
Control
Yes
Yes
Payment
Yes
Yes
Bank Accounts
Yes
Yes
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Chapter 4 - Page 6

Oracle Payables Supplier Information
Information
Type
EDI
Enter at
Supplier
Enter at
Supplier Site
Yes
Yes
Invoice Tax
Yes
Yes
Withholding Tax
Yes
Yes
Tax Reporting
Yes
Yes
Purchasing
Yes
Yes
Receiving
Yes
No
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Chapter 4 - Page 7
Overview of Entering Information at the Supplier Site

Level
Overview of Entering Information at the
Supplier Site Level
Except for the Receiving and Classification categories,
all categories of information that are entered at the
supplier level can also be entered at the supplier site
level. If an option exists at the supplier level, the value
you enter there defaults to new supplier sites.
Note: Contacts information is entered only at the
supplier site level.
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Chapter 4 - Page 8
Demonstration
Demonstration
This demonstration shows you how to enter a
supplier.
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Chapter 4 - Page 9
Entering Flexible Address Format Information

Entering Flexible Address Format
Information
Oracle applications enable you to enter customer,
supplier, bank, check, and remit-to addresses in
country-specific formats. For example, if you have
customers in the United Kingdom, you can enter
British addresses in the format recommended by
the Royal Mail.
Use descriptive flexfields to enter and display
address information in the appropriate formats. The
flexfield window is then displayed if the country you
enter has a flexible address style assigned to it.
If no address style is associated with the country,
the standard format is used.
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Chapter 4 - Page 10
Entering Employees as Suppliers

Entering Employees as Suppliers
You must enter an employee as a supplier before you
can pay the employees expense reports. You can
enable the Automatically Create Employee as Supplier
Payables option to automatically enter an employee as
a supplier during Invoice Import, or you can enter the
employee manually as a supplier in the Suppliers
window.
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(Help) Oracle Financial Applications > Oracle Payables > Suppliers

> About Suppliers > Entering Employees as Suppliers
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Chapter 4 - Page 11
Maintaining Supplier and Supplier Site Information

Maintaining Supplier and Supplier Site
Information
When you make changes to values that default to
Oracle Payables documents, the changed value
defaults only to new documents that you subsequently
enter or create. For example, if you change the Pay
Group for a supplier site, the new Pay Group defaults
to new invoices that you enter, but the change does
not affect existing invoices.
Also, if you change a supplier value that defaults to
supplier sites, the change affects only new supplier
sites that you create, not existing supplier sites.
If you want a change to affect documents that you
enter or create for an existing supplier site, be sure to
make the changes at the supplier site level.
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> Adjusting Suppliers
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Chapter 4 - Page 12
Supplier Reports
Supplier Reports
Oracle Payables Supplier Reports
Report Name
Description
Suppliers Report
Review supplier, supplier site, and

supplier site contacts information
Supplier Audit Report
Review supplier names that

are similar, to help identify potential
duplicate suppliers
New Supplier/New
Supplier Site Listing
Review new supplier sites
Supplier Payment
History
Review the pa yment histor y,

including void payments, for a
supplier or a group of suppliers
Supplier Paid
Invoice History
Review the pa yment histor y,

including discount and partial
payment information, for a supplier
or group of suppliers
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> Supplier Reports
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Chapter 4 - Page 13
Supplier Reports
Supplier Reports
Oracle Payables Supplier Reports
Report Name
Description
Supplier Mailing
Labels
Use this report to create mailing

labels for supplier sites
Purchase Order Header Review purchase orders updated

Updates Report
by the Supplier Merge Program
Supplier Merge Report
Review the suppliers, sites, and

invoices updated by the Supplier
Merge Process
Supplier Balance
Revaluation Report
Identify suppliers with credit

(negative) balances
Supplier Customer
Netting Report
Review the net balance in Oracle

Payables and Oracle Receivables
for any suppliers or customers who
have the same NIF or VAT code
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Chapter 4 - Page 14
Merging Suppliers
Merging Suppliers
Run supplier
audit report
ABC
Identify duplicate
Corporation
suppliers
ABC
Corp
Merge suppliers
Maintain audit
trail
Review merge
results
ABC
Corporation
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Chapter 4 - Page 15
Merging Suppliers
Merging Suppliers
When you merge suppliers, you transfer invoices,
purchase orders, or both from one supplier and site to
another supplier and site. You can transfer to a new
supplier and site unpaid invoices only or all invoices
(including paid and partially paid invoices).
Oracle Payables will not transfer invoices if the merge
process would create a duplicate invoice for a
supplier.
Note: The merge process cannot be undone.
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> Supplier Merge Program
The transfer process moves the information from the old supplier to the new
supplier. If you choose to transfer all invoices, there will not be any invoices
under the old supplier.
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Chapter 4 - Page 16
Agenda
Agenda
Supplier information
Supplier setup considerations
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Chapter 4 - Page 17
Relationship to Release 11i Applications

Relationship to Release 11i Applications
The Supplier Management Process facilitates the flow
of supplier information to and from:
Oracle Payables System
Oracle Purchasing System
Oracle Inventory System
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Note: Supplier setup is performed in Payables and Purchasing;

Inventory sends and receives supplier and other information to
Payables and Purchasing.
Payables System
Define the financial options in the Financial Options window; see: Defining
Financials Options, Oracle Payables Users Guide (Required) Supplier
numbering
Define Suppliers (Required): You may not need to perform this step if you have
already installed and set up Oracle Payables or performed a common
applications setup. See: Entering Suppliers, Oracle Payables Users Guide.
Purchasing System
Set Up Automatic Sourcing (Optional): You can set up Purchasing to
automatically default source document information from a blanket purchase
agreement or catalog quotation onto a requisition or purchase order line for a
particular item and supplier. Or you can default just a supplier and optionally a
supplier site. See: Setting Up Automatic Sourcing: page 5 32 of the Oracle
Purchasing Users Guide.
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Chapter 4 - Page 18
Inventory System
Define Freight Carriers (Optional): If youre also setting up Oracle Inventory,
you may already have performed this step when you set up Inventory. Define
freight carriers if you want to specify on a purchase order the freight carrier that
a supplier should use. See: Defining Freight Carriers, Oracle Inventory Users
Guide. Context: You must perform this step for each inventory organization.
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Chapter 4 - Page 19
Oracle Purchasing
Oracle Purchasing
Oracle Purchasing enables you to:
Set up the Supplier Base
Regulate document access and controls
Control purchasing activity and utilize accurate,
automatic pricing using approved suppliers and
supplier lists
Consolidate purchase requirements from multiple
warehouses, plants, or locations
Negotiate from a position of strength based on easy
access to purchase volume statistics and supplier
performance reports
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Chapter 4 - Page 20
Oracle Purchasing Overview
Oracle Purchasing Overview
Purchase
requisition
Request for
quote (RFQ)
Quotation
Supplier
Purchase
order
Receipts
Returns
Payment
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Using Supplier Information

Supplier information is a vital component of Oracle Internet Procurement. The
following examples list the areas in which you use suppliers.
A recommended supplier is optionally entered on a requisition.
A supplier is needed to send a request for quote.
That same supplier is used when entering a quotation.
Purchase orders need supplier information.
You receive goods or services from a supplier.
You return goods to a supplier.
You must pay the supplier for the goods or services purchased.
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Chapter 4 - Page 21
Integrating with Oracle Applications

Integrating with Oracle Applications
Shared information
Locations & organizations
Accounting & financial codes
Freight codes & items
Supplier
Management
Oracle
Applications
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All Applications
When any Oracle Applications and Oracle Internet Procurement are used in
conjunction, they share many different pieces of information.
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Chapter 4 - Page 22
Implementing Supplier Management

Implementing Supplier Management
Considerations:
Modeling your organizational structure in Oracle
Internet Procurement
Supplier set up issues
Defining approved suppliers
Creating rules to specify preferred suppliers
Determine supplier rating criteria
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Chapter 4 - Page 23
Multiple Organization Overview

Your busine ss environment
may require multiple
organizations. An
organization allows you to
segment your busine ss in a
logical way to facilitate
planning, purchasing,
receiving, and other
business requirements.
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Chapter 4 - Page 24

An organization has a set of books, a costing method,
and a valid list of items. Organizations can have
multiple classifications and multiple locations.
Reasons for multiple organizations include:
Use of different costing methods within your
business
Need for different item usage and attribute control
for items not used in all organizations
Separation of inventory records among the
organizations
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Chapter 4 - Page 25
Defining Approved Suppliers

Defining Approved Suppliers
An Authorized Supplier List (ASL) is:
A repository of information that links items and
commodities to the suppliers/supplier sites
Assigns and stores statuses to item/supplier site
combinations
Defines attributes for an ASL entry that control
Purchasing and Supplier Scheduling functions
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Chapter 4 - Page 26
Approved Suppliers List Overview

Approved Suppliers List Overview
Approved
Supplier List
Commodity
Ship-to
organization or
global organizations
Items
Supplier site
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ASL Overview
The Approved Supplier List is a repository of information that links items and
commodities to the supplier and supplier sites that supply them, for a specific
ship-to organization or the entire enterprise.
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Chapter 4 - Page 27
Rules to Specify Preferred Suppliers: Sourcing Rules

Rules to Specify Preferred Suppliers:
Sourcing Rules
Used to specify preferred suppliers, distributors,
and manufacturers Link the primary supplier item
number with your internal item number
Define replenishment sources for an organization
May be defined in Oracle Planning, Oracle
Purchasing, Oracle Supply Chain Planning, or
Oracle Supplier Scheduling
Use allocation percentages and rankings for
multiple sources
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Chapter 4 - Page 28
For More Information

For More Information
Oracle Internet Procurement:
http://www.oracle.com/applications/internet
procurement/index.html
Oracle Web Supplier Portal:

(Click on Promote And Leverage Supplier Efficiencies)
Oracle Purchasing Intelligence:

(Click on Reduce and Control Procurement Costs)
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Chapter 4 - Page 29
Summary
Summary
In this module, you should have learned how to
identify the setup steps and considerations that are
required for Supplier management.
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Chapter 4 - Page 30
Practice: Creating a New Supplier

Task
Creating a New Supplier
Solution
In the Oracle Vision Demonstration Database,
Responsibility > Purchasing, Vision Operations (USA) or Payables,
Vision Operations (USA)
(N) Supplier Entry
Supplier Header -
Supplier Name: XX My Supplier (NOTE: XX= your student number)
In the Classification Tab set the Supplier Type: Supplier (this field is for
reporting only)
Select the Classification Tab select the small business check box.
In the Payment Tab set the Payment Terms: Immediate
In the Payment Tab enter a payment priority equal to your student

number
In the Control Tab set the Invoice Match Option to Purchase Order
Supplier Site -
Click on the Sites button. Enter a unique site name and address( the
address fields are important and will be required in class). Record your
site name below.
Within the site, select the Contact Tab and enter the name of the person
you would like to talk to when ordering from your site (i.e. John Smith,
Heather Locklear)
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Enter a second site by placing your cursor in the supplier SITE NAME
field and by hitting the down arrow on the keyboard. Then enter the
address and contact information for this additional site. Record your site
name below.
Save your work.
Suppliers
Chapter 4 - Page 31
Site Name #1 _______________________

Site Name #2 _______________________
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Chapter 4 - Page 32
Oracle Purchasing
Chapter 5
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Chapter 5 - Page 1
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Oracle Purchasing
Oracle Purchasing
Module 5
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Chapter 5 - Page 2
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Objectives
Objectives
the following:
Describe the process flow of Oracle Purchasing
Identify the implementation considerations of
Oracle Purchasing
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Chapter 5 - Page 3
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Agenda
Agenda
Purchasing integration
Requisitions
RFQs and sourcing rules
Purchase orders
Receiving
Setup
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Chapter 5 - Page 4
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Product Integration Overview
Product Integration Overview

e-Commerce Gatew ay
Oracle Self Service

Purchasing
Oracle
Inventory
Oracle
Payables
Oracle
Master Scheduling/MRP
Oracle
General Ledger
Oracle
Order Management
Oracle
Supplier Scheduling
Oracle
Work in Process
Oracle
Assets
Oracle
Purchasing
Oracle
Hum an Resources
Oracle
Project Accounting
Oracle
Bill of Material
Oracle
Cost Management
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Chapter 5 - Page 5
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Agenda
Agenda
Requisitions
Purchase orders
Receiving
Setup
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Chapter 5 - Page 6
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Why Purchase Requisitions?
Why Purchase Requisitions?

Purchase requisitions allow you to decentralize
your purchasing department by having requesters
Purchase requisitions allow you to source your
requisition with the best suppliers and at the lowest
cost
Purchase requisitions ensure that the appropriate
manage ment approval is given before purchase
orders are created.
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Chapter 5 - Page 7
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Where Purchase Requisitions Fit
Where Purchase Requisitions Fit

Demand
Inventory
WIP
MRP
Order Mgmt
Import/reschedule
requisitions
Internal
sales order
Order entry
Supplier
Manually
create
Approval
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Requisition
pool
Requisition
Oracle Purchasing
Chapter 5 - Page 8
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Oracle Purchasing Purchase Requisitions
Oracle Purchasing Purchase Requisitions

The Oracle Purchasing enables you to:
Create, edit and review requisitions online.
Review status and action history of your
requisitions.
Automatically source requisitions from open
blanket purchase agreements and quotations.
Utilize requisition templates for items you purchase
frequently.
Create internal requisitions.
Distribute expenses across multiple cost centers.
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Chapter 5 - Page 9
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Information Flow for Purchase Requisitions
Information Flow for Purchase

Requisitions
Oracle MRP
Requirements
Suppliers
Oracle Inventor y
Subinventory
Replenishment
Oracle WIP
Outside Processing
Purchase
Requisition
Process
Purchase
Orders
Oracle Order Mgmt
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Chapter 5 - Page 10
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Access Levels
Access Levels
Action
Quotation
Purchase
Order
Requisition
View Only
View
Modify
Change
View
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Change
View
Cancel or Final Close
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Chapter 5 - Page 11
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Options for Security, Approval Limits, and Approval Routing
Options for Security, Approval Limits, and

Approval Routing
Security by document type and action
Approvals by position or job and then:
Document type
Document total
Charge account number range
Items, categories, locations
Can use either employee-to-supervisor routing or

hierarchy routing
Document security and approval to meet your
business needs
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Chapter 5 - Page 12
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Agenda
Agenda
Requisitions
Purchase orders
Receiving
Setup
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Chapter 5 - Page 13
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Overview of a Request for Quotation
Overview of a Request for Quotation

Request for Quotation
Suppliers from
supplier list
Header information
Supplier 1
Doc. type, ship-to, bill-to

Quote effective date
Line information
Quantity
Supplier 2
Unit of measure
Enter
RFQ
Target price
Min/max quantities
Terms and conditions
Supplier 3
Hazardous materials
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Request for Quotation

A request for quotation (RFQ) is a document you use to solicit supplier quotations for those
goods or services. Not all purchase requisitions require an RFQ, and you do not need a
purchase requisition to create an RFQ. However, if the RFQ required check box is selected on
a requisition, an RFQ is required for that requisition.
Supplier Lists
Although you may send an RFQ to one supplier, usually you will want to send a request for
quotation to many suppliers to ensure that you get the best price and terms possible. With
Oracle Purchasing you create supplier lists so that you can predefine groups of suppliers to
whom you want to send RFQs. You can establish supplier list according to criteria you define,
such as item, manufacturing category, geographic location or more.
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Chapter 5 - Page 14
Sourcing Rules Overview

Effective : 01-JAN-9731-DEC-03
Supplier A
60 %
Rank 1
Supplier B
40 %
Rank 1
Supplier C
100 %
Rank 2
Effective : 01-JAN-04
Supplier C
100 %
Rank 2
Supplier A
100 %
Rank 1
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Sourcing Rules let you define relationships between the ASL and your business rules for
sourcing items and commodities. Sourcing defaults can dramatically increase operational
efficiency.
Automatically allocate planned orders across different suppliers using percentage splits.
Define global or local rules for individual items and entire commodities.
Maintain sourcing details at supplier and/or site.
Define effectivity dates for each rule.
Assign sourcing rules at different levels using an assignment set.
Classify and rank multiple sources.
Sourcing rules define replenishment sources for an organization or a groups of organizations
which can then be applied to specific items. Sourcing rules that are made up of multiple
suppliers, allow you to assign allocation percentages to each supplier and rank them if the
percentages are equal.
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Oracle Purchasing
Chapter 5 - Page 15
Agenda
Agenda
Requisitions
Purchase orders
Receiving
Setup
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Chapter 5 - Page 16
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Purchase Order Process
Purchase Order Process

Create
Purchase Orders
Automatic
Purchase Orders
Manage & Approve
Purchase Orders
Review PO
Information
Purchase
Orders
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Purchasing
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Chapter 5 - Page 17
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Process Inputs and Outputs
Process Inputs and Outputs
Process
Key Inputs
Key Outputs
Overall
Internal demand
Fulfilled order
External demand
Ordering Requisition
Purchase order
Supplier catalog
Blanket order release
Engineering specifications
Customer specifications
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Chapter 5 - Page 18
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Where Purchase Orders Come From
Where Purchase Orders Come From

Oracle
MRP
Demand
Oracle
Inventory
Oracle
WIP
Other
systems
Import/reschedule
requisitions
Manually create
Approve
Requester
Source?
Create internal
sales order
Order
Management
Create supplier purchase order
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Chapter 5 - Page 19
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Information Flow for Purchase Orders
Information Flow for Purchase Orders
Oracle MRP
Suppliers
Oracle Inventor y
Oracle WIP
Purchase
Order
Process
Purchase
Orders
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External systems
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Chapter 5 - Page 20
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Purchase Order Management Interfaces
Purchase Order Management Interfaces
Requisition import
E-commerce gateway
Purchase release
Open document interface
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Chapter 5 - Page 21
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E-Commerce Capabilities
E-Commerce Capabilities
Order import enhancements:
Error correction form s
Import of returns
Price and payment terms validation
New EDI transactions:

Inbound order changes (860/ORDCHG)
Outbound order acknowledgments (855/865/ORDRSP)
XML enabled
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Chapter 5 - Page 22
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Overview of Purchase Order Creation
Overview of Purchase Order Creation

You select the appropriate purchase order document
type for your needs:
Standard purchase order
Contract purchase order
Blanket purchase agreement
Planned purchase order
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Chapter 5 - Page 23
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Overview of Purchase Order Maintenance
Overview of Purchase Order Maintenance

To maintain your purchasing documents, you can:
Print purcha se orders

Archi ve purcha se orders
Modify purcha se orders
Enter and view purchase order acceptances
When you change a purchase order, Purchasing

automatically increments the revision and in many
cases requires document reapproval
You can modify the purchase order status (cancel,
close, hold, delete, and so on)
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Chapter 5 - Page 24
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Demonstration
Demonstration
This demonstration shows you how to enter a
purchase order.
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Chapter 5 - Page 25
s
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Agenda
Agenda
Requisitions
Purchase orders
Receiving
Setup
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Chapter 5 - Page 26
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Receiving in Oracle Purchasing
Receiving in Oracle Purchasing

Receiving is a transaction that signals that the
goods ordered on a purchase order have arrived.
Oracle Purchasing allows the following methods of
receiving:
Standard receipt
Direct receipt
Inspection required
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Chapter 5 - Page 27
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Agenda
Agenda
Requisitions
Purchase orders
Receiving
Setup
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Chapter 5 - Page 28
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Required Setup Steps for Oracle Purchasing
Required Setup Steps for

Oracle Purchasing
Set Up Approval
Information
Define Lookups
Define Purchasing
Options
Define Buyers
Define Line Types
Purcha sing Database
Admini stration
Define Financial Options
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Chapter 5 - Page 29
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Purchasing Accounting Considerations
Purchasing Accounting Considerations

Journal
entries
Purchase
Order
Purcha sing transactions

that create journal entries
Transfer of purcha sing
journal entries to General
Ledger
Controlling transaction
accounting periods
Using multiple currencies
Foreign currency journal
entries
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Using foreign
currency
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Chapter 5 - Page 30
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Overview of Purchasing Period-End Accrual Cycle
Overview of Purchasing Period-End

Accrual Cycle
Receiving transactions
Invoices matched and entered
Accounts pa yable period closed
Close the
purchasing period
1. Run Receipt
AccrualPeriod End 2. Run Oracle
Process
General Ledger 3. Run Accrual
Journal Import
Rebuild
Process
Reconciliation
Report
5-30
Analyze and
write-off
discrepancies
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An important example of interaction between Oracle Purchasing and Oracle General Ledge
that may influence accrual setup decisions during implementation.
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Oracle Purchasing
Chapter 5 - Page 31
Accounting Implementation Considerations
Accounting Implementation
Considerations
Issues to consider:
Interface processing
Integration issues
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How often will your general ledger and Oracle Purchasing interface?
How will currency exchange rates be updated?
Integration issues
What requirements of the Purchasing, Treasury, and Finance departments must be
considered?
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Oracle Purchasing
Chapter 5 - Page 32
Inventory Setup Requirements
Inventory Setup Requirements
Defining inventory organizations

Defining locations
Units of measure
Item setup
Item attribute controls
Defining item attributes
Status codes
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Organizational Management Overview is an Using Oracle HRMS - The Fundamentals topic

or available as a Help topic available from:
(Help) Oracle HRMS > Organizational Management > Organizational
Management Overview
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Also see Organization Parameters Window is an Oracle Inventory Users Guide topic or
available as a Help topic available from:
(Help) Oracle Inventory > Setting Up > Organization Parameters Window
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Chapter 5 - Page 33
Inventory Implementation Considerations
Inventory Implementation Considerations

Issues to consider:
Numbering conventions
Item conversion
Data mapping
Data cleanup
Item maintenance
Integration issues
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Numbering conventions
- What numbering conventions will be used to create items? To avoid duplicate item
entries, the naming convention style must be congruent.
- What will be your Key Flexfield definitions?
- Will you use single or multiple segments?
- Will you use value sets for certain segments?
Item conversion
- What methodology will be used to convert your current item data into Oracle
Purchasing?
- Will you have automated conversion, manual data entry, or both?
Data mapping
- How will your data mapping be done?
- What data in legacy system will determine values in Oracle Purchasing tables?
- How will additional fields be derived and loaded?
Data clean up
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Chapter 5 - Page 34
How will current item descriptions be standardized?

How will duplicate or inactive items be eliminated during the conversion?
Item maintenance
- Who will maintain item data?
- Delays could occur if items are not established promptly.
- How will engineering, costing, planning, order entry, and other data be gathered and
input?
Integration issues
- What are the requirements of the Inventory, Purchasing Engineering, Internal Auditing,
and Planning and Accounting departments which must be considered?
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Oracle Purchasing
Chapter 5 - Page 35
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Purchasing Options
Purchasing Options
Default Options
Accrual Options
Control Options
Internal Requisition Options
Numbering Options
Tax Defaults Options
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(N) Setup > Organization > Purchasing Options

Defining Purchasing Options is an Oracle Purchasing Users Guide topic or available as a
Help topic available from:
(Help) Oracle Purchasing > Setting Up > Defining Purchasing Options
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Chapter 5 - Page 36
Financial Options
Financial Options
Accounting
Supplier - Purchasing
Tax defaults in Tax region
Other tabbed regions may also be required
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Financial Options
(N) Setup > Organization > Financial Options
Defining Financial Options is an Oracle Payables Users Guide topic or available as a Help
topic available from:
(Help) Oracle Payables > Payables Setup > Financial Options > Defining
Financial Options
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Oracle Purchasing
Chapter 5 - Page 37
Requisition Implementation Considerations
Requisition Implementation
Considerations
Requisition sources
Requisition usage
Requisition conversion
Data mapping
Integration issues
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Requisition sources
- What sources will provide requisitions? Examples include: Self Service entry, online
entry, Oracle Inventory, Oracle MRP, Oracle WIP, External Systems..
Requisition usage
- Will requisitions be required for all procurements?
Requisition conversion
- Will conversion occur or will open requests be completed on the legacy system?
Data mapping
- How often will ReqImport be processed for each interface?
- What controls will exist to ensure data accuracy and completeness?
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Chapter 5 - Page 38
Integration issues
- What are the requirements of the Planning and Inventory Control, and Purchasing
departments which must be considered?
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Chapter 5 - Page 39
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Purchase Order Implementation Considerations
Purchase Order Implementation

Considerations
Use of purchase orders

Conversion of purchase orders
Data mapping
Data cleanup
Integration issues
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Purchase order usage

- What types of purchase orders will be used in the procurement strategy?
Purchase order conversion
- Will conversion occur or will open purchase orders be completed on the legacy system?
Data mapping
Data cleanup
- Will closed purchase orders be converted?
Integration issues
- What are the requirements of the Purchasing, Payables, Planning, Auditing, Accounting
and Receiving departments which must be considered?
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Oracle Purchasing
Chapter 5 - Page 40
Receiving Implementation Considerations
Receiving Implementation Considerations

Issues to consider:
Advanced shipment notices (ASN)
Payment on receipt
Lot and serial number tracking
RMAs
Receipt conversion
Integration issues
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Advanced shipment notices (ASN), Payment on receipt, Lot and serial number tracking, RMAs
Will they be used?
Receipt conversion
How will conversion of goods received but not yet delivered be conversion occur?
Will you have automated conversion, manual data entry, or both?
Will receiving transactions be initiated from an external system? Example: Data entry from
a scanning device.
Integration issues
What are the requirements of the Purchasing, Payables, Inventory Control, Auditing,
Planning, and Quality Control departments which must be considered?
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Oracle Purchasing
Chapter 5 - Page 41
Summary
Summary
Describe the process flow of Oracle Purchasing
Oracle Purchasing
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Oracle Purchasing
Chapter 5 - Page 42
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Practice: Create a Purchase Order

Task
Create a Purchase Order
Solution
Responsibility > Purchasing, Vision Operations USA
(N) Purchase Orders > Purchase Orders
PO _____________, Amount = _____________
Supplier = XX My Supplier (From the create a Supplier practice 4-1)
Site = Second Site
Ship To = Seattle
Tab to the Item block and enter MS21662 as the item you are purchasing. The system
will default in the MISC.MISC category and Pens description.
Quantity = 50
Change the Price to $100.00
Select the Shipment button, enter the following shipments:

Ship to
Seattle
Seattle
Seattle
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18
12
20
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Need By Date
One week from today
Two weeks from today
Three weeks from today
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The 20 units for the third shipment line have been ordered by two different departments. The
quantity ordered by each department and charge account are:
Destination Type
Expense
Expense
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Quantity
12
8
Charge Account
01-402-7520-0000-000
01-404-7520-0000-000
After shipment line 3, Choose Distribution.
Oracle Purchasing
Chapter 5 - Page 43
Enter the distribution line for this PO line.
Save your work and close the windows until the Purchase Order Header is displayed.
Approve the PO
Note PO Number and amount _______________________________
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Chapter 5 - Page 44
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Oracle Payables
Chapter 6
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Oracle Payables
Chapter 6 - Page 1
Oracle Payables
Oracle Payables
Module 6
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Oracle Payables
Chapter 6 - Page 2
Objectives
Objectives
the following:
Describe the process flow of Oracle Payables
Oracle Payables
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Chapter 6 - Page 3
Agenda
Agenda
Overview of Oracle Payables

Invoice processing
Payment processing
Period closing
Tax accounting
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Oracle Payables
Chapter 6 - Page 4

Oracle Payables is a high-productivity accounting
solution that helps you maintain strong financial
controls. You can:
Maximize supplier discounts
Prevent duplicate payments
Pay for only the goods and service s that you order and
receive
Oracle Payables also helps you resolve business

issues quickly by providing accurate responses to
your inquiries.
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Chapter 6 - Page 5
Oracle Product Integration

Oracle Product Integration
Human
Resources
Cash
Management
Projects
e-Commerce
Gateway
Workflow
Payables
Property
Manager
iExpense
Purchasing
Assets
General Ledger
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Chapter 6 - Page 6
Oracle Payables Integration

Oracle Human Resources shares locations and
employees with Oracle Payables.
Oracle Projects imports invoice information from
Payables to track project costs and exports expense
report information to Oracle Payables.
Oracle Cash Management reconciles payments
created in Oracle Payables to your bank statements.
Oracle e-Commerce Gateway transfers electronic
invoices and EDI payments to Oracle Payables.
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Chapter 6 - Page 7

Oracle Property Manager exports lease payment
information to Oracle Payables where you can pay
the lease invoices.
Oracle iExpenses can be used by employees to
enter their own expense reports.
Oracle Workflow can be set up to process invoice
records before you import them from the Payables
Open Interface.
Oracle General Ledger and other general ledger
systems receive invoice and payment accounting
entries from Oracle Payables.
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Chapter 6 - Page 8

Oracle Assets and other fixed assets systems
record Payables invoice distributions for asset
purchases.
Oracle Purchasing and other purchasing systems
share purchase orders and suppliers with Payables.
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Chapter 6 - Page 9
Five Major Processes

Five Major Processes
Oracle Payables contains five major processes:
1. Setting up suppliers
2. Entering and approving invoices
3. Paying invoices
4. Creating accounting entries
5. Sending transactions to the general ledger
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Oracle Payables
Chapter 6 - Page 10
Oracle Payables Processes

Oracle Payables Processes
Enter
supplier
Approve
invoice
Enter
invoice
Pay invoice
A/ P
100,000
60,000
10,000
30,000
Transfer
information to
General Ledger
Create
accounting
entries
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There are two processes in Payables that you must complete for the data to be
sent to Oracle General Ledger:
1. The Payables Accounting process creates the accounting entries in Oracle
Payables.
2. The Payables Transfer to General Ledger sends the accounting transactions to
the GL Interface.
The Journal Import process moves the information from the GL Interface table
to the General Ledger tables. You can submit this program from Payables or
General Ledger.
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Oracle Payables
Chapter 6 - Page 11
Flow of Default Values

Flow of Default Values
Financials options
Payables options
Supplier
Supplier site
Invoice
Invoice distribution line
Invoice scheduled payment line
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Oracle Payables contains a hierarchy of options and defaults to expedite and

control data entry.
Options and defaults set at one level automatically cascade down to the next
lower level in the hierarchy for any new transactions.
Although you need to define these options and defaults only once, you can
update them at any time to change controls and defaults for future transactions.
You can override options and defaults at lower levels in the hierarchy.
This hierarchy is not always used. For example, with the tax defaults hierarchy,
you can decide the order in which tax values default.
See: Invoices>Taxes on Invoices>Defaulting Tax in Payables
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Chapter 6 - Page 12
Agenda
Agenda

Invoice processing
Payment processing
Period closing
Tax accounting
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Chapter 6 - Page 13
Entering Invoices: Overview

Entering Invoices: Overview
Enter
supplier
Approve
invoice
Enter
invoice
Pay invoices
Optionally
match to PO
or receipt
A/ P
100,000
60,000
10,000
30,000
Transfer
information to
General Ledger
Create
accounting
entries
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There are two processes in Payables that you must complete for the data to be
sent to Oracle General Ledger:
1. The Payables Accounting process creates the accounting entries in Oracle
Payables.
2. The Payables Transfer to General Ledger sends the accounting transactions to
the GL Interface.
The Journal Import process moves the information from the GL Interface table
to the General Ledger tables. You can submit this program from Payables or
General Ledger.
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Chapter 6 - Page 14
Oracle Payables Invoice Types

Type
Standard
Description
An invoice from a supplier representing an
amount due for goods or services purchased
(standard invoices can be matched to either a
PO or receipt, or not matched)
Credit Memo
A memo from a supplier representing a credit

amount toward goods or services for which you
have already been invoiced
Debit Memo
An invoice you enter to record a credit for a

supplier who does not send you a credit memo
Expense
Report
An invoice representing an amount due to an

employee for business-related expenses
PO Default
An invoice you enter for matching to a purchase

order (you enter a PO number, and Oracle
Payables automatically provides supplier
information)
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Chapter 6 - Page 15

Type
Prepayment
Description
A type of invoice you enter to pay an advance
payment for expenses to a supplier
or employee
An invoice you enter for matching to a purchase
order (you enter a PO number, and Oracle
Payables automatically provides supplier
information and matches to each shipment on
the purchase order)
QuickMatch
Withholding
Tax
Mixed
An invoice you enter to remit taxes withheld to

the appropriate tax authority
An invoice for which you can perform both
positive and negative matching to
purchase orders and to other invoices
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Chapter 6 - Page 16
Invoice Distribution Types

Type
Description
Item
Records the amount a supplier charges for

goods or services purchased
Tax
Records the sales or other tax amount due

on goods or services purchased
Freight
Records the amount a supplier charges for

shipping and handling
Miscellaneous
Records the amount for miscellaneous

expenses on an invoice
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Chapter 6 - Page 17

Type
Description
Withholding
Records the amount of taxes withheld from

an invoice
Prepayment
Records the amount of a prepayment

applied to an invoice
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Chapter 6 - Page 18
Approving Invoices: Overview

Approving Invoices: Overview
Batch invoices
Enter invoice
Approve invoice
Optionally
match to PO
or receipt
View invoice
Receive invoices
in the mail
Create
accounting
A/P
100,000
Pay invoice
File invoice
60,000
10,000
30,000
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Chapter 6 - Page 19
Approving Invoices
Approving Invoices
Before you can pay or account for an invoice
(including prepayments), you must submit approval
for the invoice in one of three ways:
Online by using the Actions window of the Invoice
Workbench
Online by using the Approve button in the Invoice
Batches window
Batch by submitting the Payables Approval program
from the Submit Request window
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(Help) Oracle Financial Applications > Oracle Payables > Invoices >
Approval > Approval
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Chapter 6 - Page 20
Accounting for Invoices

Accounting for Invoices
You submit the Payables Accounting process to
create accounting entries in Payables. Submit this
batch process from the Submit Request window.
You can also create accounting entries for an
invoice from the related Actions window.
Select the invoice.
Click the Actions button.
Select the Create Accounting check box, and click OK.
To account for an invoice batch, query the batch in

the Invoice Batches window, and then click the
Create Accounting button.
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Chapter 6 - Page 21
Demonstration
Demonstration
This demonstration shows you how to Process an
invoice
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Chapter 6 - Page 22
Overview of Expense Reporting

Overview of Expense Reporting
Approved: Create
Payment and
Notify Employee
Employee Creates Manager Reviews
Expense Report
Expense Report
Online
Manager Approved:
Accounts Payable
Reviews Report
Report Rejected: Workflow

Notifies Employee
Adjusted: Create
Payment and
Notify Employee
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1. Employee creates and submits expense report using either the standard (web
browser) or disconnected (Excel spreadsheet) expense reporting methods.
2. Workflow notifies the employees manager (or the overriding approver, if
specified). Manager/approver reviews the expense report online.
3. If rejected: Employee is notified via email. Depending on the rejection
reason, employee may be able to modify report and resubmit using the Modify
Expense Reports option on the Internet Expenses main menu.
If approved: Report is sent for review by the Accounts Payable department
(only required if the report contains expenses that require original receipts
and/or justification; if not, the report receives AP approval automatically and
payment is created). If required receipts are missing or policy is violated, AP
clerk adjusts the report using the AP Expense Reports window and employee is
notified of the adjustment.
4. Once approved by management and (if required) the accounts payable
department, the AP Invoice Import program converts the expense report into an
invoice, and payment is created in Oracle Payables.
5. Employee receives payment via check or direct deposit, depending on
company policy/setup.
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Chapter 6 - Page 23
Setting Up Invoice Payables Options

Setting Up Invoice Payables Options
Invoice Payables options include the following:
Use Batch Controls
Confirm Date as Invoice Number
Allow Online Approval
Allow Adjustments to Paid Invoices
Recalculate Scheduled Payment
Allow Document Category Override
Automatically Create Freight Distribution
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(Help) Oracle Financial Applications > Oracle Payables > Setup >
Payables Options > Payables Options Window Reference > Invoice
Payables Options
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Chapter 6 - Page 24
Invoice-Matching Considerations
Invoice-Matching Considerations
The Invoice Match Option exists at the following
levels: supplier, supplier site, and purchase order
shipment lines. Ensure that the matching option,
Purchase Order or Receipt, is set at the appropriate
level.
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Payables Options > Payables Options Window Reference >
Matching Payables Options
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Chapter 6 - Page 25
Demonstration
Demonstration
This demonstration shows you how to match a
vendor invoice to a purchase order
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Chapter 6 - Page 26
Prepayment Considerations
Prepayment Considerations
You need to determine if any additional payment
terms are needed for prepayments.
You can optionally set up default payment terms to
be specified for prepayments during the Payables
Options setup.
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Matching Payables Options
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Chapter 6 - Page 27
Agenda
Agenda

Invoice processing
Payment processing
Period closing
Tax accounting
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Chapter 6 - Page 28
Issuing Payments: Overview

Issuing Payments: Overview
Enter supplier
Enter invoice
Approve invoice
Pay
invoice
A/P
100,000
Transfer
information
to general ledger
60,000
10,000
30,000
Create accounting
entries
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Chapter 6 - Page 29
Payment Features
Payment Features
Oracle Payables provides a variety of features for fast,
controlled payment processing. With Oracle Payables,
you can:
Use different payment methods to disburse funds
Ensure that duplicate invoice payments never occur
Pay only invoices that are due, and automatically
take the maximum discount available
Automatically create groups of payments for
invoices that meet the criteria you select
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Chapter 6 - Page 30
Payment Features
Payment Features
Use custom payment formats
Choose from different payment method options,
including checks, electronic data interchange (EDI),
electronic funds transfer (EFT), and wires
Record stop payments
Void payments
Review payment status and payment information
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Chapter 6 - Page 31
Oracle Payables Payment Methods

Oracle Payables Payment Methods
Payment
Method
Definition
Check
A printed paper remittance document that is

sent to a supplier
Clearing
A record of payment for invoices transferred

from another entity within the company without
creating a payment document
Electronic
An electronic funds transfer to a suppliers bank
Wire
A funds transfer initiated by contacting your

bank and requesting a wire payment to a
suppliers bank
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Chapter 6 - Page 32
Future-Dated Payments
Future-Dated Payments
Future-dated payments (also known as bills of
exchange or notes payable) are payment documents
that instruct your bank to disburse funds on a
specific datethe maturity date.
The difference between future-dated payments and
standard payments is that on standard payments
the payment date, the creation date, and the date
when funds are available are usually all the same.
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(Help) Oracle Financial Applications > Oracle Payables > Payments

> Future Dated Payments > Future Dated Payments
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Chapter 6 - Page 33
Payment Batches: Overview of the Steps

Payment Batches: Overview of the Steps
Select invoices
-------------------------(Build payments)
Format
payments
Print checks or
create electronic
payments
Confirm
payments
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You follow a series of steps to create your payment batches , and you initiate
each step from the Payment Batch Actions window.
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Chapter 6 - Page 34
Demonstration
Demonstration
This demonstration shows you how to process a
payment batch.
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Chapter 6 - Page 35
Accounting for Payments

Accounting for Payments
You submit the Payables Accounting Process to
create accounting entries in Oracle Payables. Submit
this batch process from the Submit Request window.
You can also create accounting entries for a payment
or payment batch from the related Actions window.
1. Select the payment or payment batch.
2. Click the Actions button.
3. Select the Create Accounting check box, and
click OK.
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Chapter 6 - Page 36
Cash Control Features

Cash Control Features
Business Needs Features
Prioritize and categorize
payments
Pay Group
Payment Priority
Control pa yment of invoices
Holds
Reduce cash outla ys
Discount
Credit and debit invoices
Forecast cash needs
Cash Requirements Report
Require special handling for an

invoice payment
Pay- alone
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Chapter 6 - Page 37
Defining Pay Groups

Defining Pay Groups
A pay group is a feature you use to select invoices
for payment in a payment batch. You can define a
pay group and assign it to one or more suppliers.
Define a pay group with a descriptive name, for
example, Utilities or Employees.
Define a default pay group for all suppliers, for an
individual supplier, or for a supplier site.
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Chapter 6 - Page 38
Defining Payment Terms

Defining Payment Terms
Assign payment terms to an invoice to automatically
create scheduled payments for the invoice with due
dates and any discounts.
You can set up payment terms to default from the
Financials Options, supplier, and supplier site
levels.
You can assign a payment term name that helps
identify the payment term.
You can assign up to three discounts for each
payment line.
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Payment Terms > Payment Terms
The system does not have any predefined payment terms.
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Chapter 6 - Page 39
Taking Invoice Discounts

Taking Invoice Discounts
Payables uses payment terms you assign to an
invoice to pay invoices at a discounted rate.
You can define discount payment terms that have
Payables vary the discount amount depending on
how old the invoice is. You also define the payment
terms to pay the full invoice amount if you have
missed the discount date.
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(Help) Oracle Financial Applications > Oracle Payables > Invoices >
Discounts
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Chapter 6 - Page 40
Discount Reports
Discount Reports
Oracle Payables Discount Reports
Name
Description
Discounts Available
Report
Review invoice discount details for a

supplier or group of suppliers.
Use this report to identify payments
where you can take advantageous
discounts.
Discounts Taken
and Lost Report
Review discounts taken and lost for a

supplier or a group of suppliers for a
specified period of time
Review this report to determine whether
to modify s ystem and supplier defaults
to ensure that discounts are taken
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Chapter 6 - Page 41
Defining Banks
Defining Banks
Use the Banks window to enter bank information for
banks with which you do business. Oracle Receivables
and Oracle Payables share bank definitions, although
not all bank information is shared. Bank branches can
have multiple accounts, and each account you define
can be associated with Payables payment documents
and Receivables payment methods.
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Banks > Banks
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Chapter 6 - Page 42
Defining Banks
Defining Banks
You define payment documents for each internal bank
account. These payment documents have payment
formats associated with them which specify a payment
method of:
Check
Electronic
Wire
Clearing
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Chapter 6 - Page 43
Demonstration
Demonstration
This demonstration shows you how to setup a bank.
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Chapter 6 - Page 44
Setting Up Financials Options for Payments

Setting Up Financials Options for
Payments
The options that you define in the Supplier-Payables
tabbed region, except for the Receipt Acceptance
Days option, are used as default values for the
Payment region of the Suppliers window. The
supplier values default to new supplier sites for the
supplier, which default to new invoices for the
supplier site.
You can override these values during entry of the
supplier, supplier site, and invoice.
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Financial Options > Defining Financials Options > SupplierPayables
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Chapter 6 - Page 45
Setting Up Payables Options for Payments

In the Payment tabbed region, you can set the
following defaults and options that will simplify
automatic payment processing:
Bank Account
Payment Batch Limit
EFT User Number
Additional Pay Through Days
Allow Document Category Override
Exclude Tax From Discount Calculation
Discount Method
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Payment Payables Options
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Chapter 6 - Page 46

Allow Print
Allow Pre-Date
Allow Void and Reissue
Allow Address Change
Allow Remit-To Account Override
Use Bank Charges
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Chapter 6 - Page 47
Agenda
Agenda

Invoice processing
Payment processing
Period closing
Tax accounting
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Chapter 6 - Page 48

Review and
resolve AP issues
Reconcile AP
activity for
the period
Transfer to
General Ledger
Close the
period in AP
Review transfer
results, and resolve
transfer issues
Post journal
entries in GL
Move unresolved
issues to the
next period
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Chapter 6 - Page 49
Transferring Accounting Details to the General Ledger

Transferring Accounting Details to the
General Ledger
Submit the Payables Transfer to General Ledger
program to transfer the accounting entries from
Payables to the GL Interface table.
GL Interface table
Oracle Payables
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(Help) Oracle Financial Applications > Oracle Payables >

Accounting > Transferring Accounting Entries to Your General
Ledger > Payables Transfer to General Ledger Program
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Chapter 6 - Page 50
Accounting and Reconciliation Reports

Accounting and Reconciliation Reports
Payables provides the following accounting and
reconciliation reports:
Accounts Payable Trial Balance Report
Payables Account Analysis Report
Payables Accounting Entries Report
Payables Accounting Process Report
Posted Invoice Register
Posted Payment Register
Unaccounted Transactions Report
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(Help) Oracle Financial Applications > Oracle Payables > Reports

and Programs > Accounting and Posting Reports > Posted Invoice
Register
(Help) Oracle Financial Applications > Oracle Payables > Reports
and Programs > Accounting and Posting Reports > Posted
Payment Register
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Chapter 6 - Page 51
Agenda
Agenda

Invoice processing
Payment processing
Period closing
Tax accounting
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Chapter 6 - Page 52
Overview of Tax in Oracle Applications

Oracle Applications support the following types of tax:
Value Added Tax
Recoverable and Non-Recoverable Input Taxes
EU Acquisition and Reverse Charge Taxes
Deferred Output Taxes
Withholding Taxes
US State and Local Taxes
Goods and Service Tax
Canadian Government, Provincial and Harmonized
Sales Tax
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Chapter 6 - Page 53

Oracle Applications support the following types of tax:
Sales Equalization Taxes
Investment Taxes
Excise Duties
Latin American Tax regimes (Brazilian ICMS, IPI,
Tributary Substitutions; Argentine VAT perception,
Turnover perception; Colombian VAT)
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Chapter 6 - Page 54
Global Taxes Overview

Global Taxes Overview
Tax regimes around the world differ in their
requirements. For example:
Value Added Tax (VAT) - Imposed on the value
added to goods or services at each stage of their
supply
Goods and Services Tax (GST) - Sales tax levied on
many consumer products and professional services
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Chapter 6 - Page 55
Tax/VAT Overview
Tax/VAT Overview
Output Tax
Input Tax
Tax paid out on

supplier invoices
Tax collected on
customer invoices
Amount Due to Tax Authority = Output Tax Recoverable Input Tax
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(Help) Oracle Payables > Invoices > Taxes on Invoices > Entering
Taxes on Invoices
(Help) Oracle Receivables > Tax > Implementing Value Added Tax
- Input tax - What you pay your tax authority via supplier invoices.
- Output tax - What you receive from customers and then turn over to
your tax authority.
Oracle Order Management and Oracle Receivables process output tax,
which is charged on the supply of taxable goods and services, for example,
on customer invoices or revenue items. You should report output tax
whenever you account for sales.
Oracle Purchasing and Oracle Payables process input tax, which is charged
on the receipt of taxable goods and services, such as tax on supplier invoices
or expense items. You should report input tax whenever you account for
expenditures. Input tax is usually deductible.
Recoverable input tax is the portion of paid tax that you can recover against
the total charged tax.
- For most commercial/manufacturing organizations, the recovery rate is
usually 100%.
- For VAT-exempt organizations in fields such as public sector, health
care, and charity, the recovery rate can be 0%.
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Chapter 6 - Page 56
- For other cases, partial recovery can be determined by the usage of the
goods. Oracle Application automates the selection of recovery rates for
the procure to pay process based on the asset/expense account, supplier
classification, tax code, and so on.
If your organization is VAT-registered and you receive an invoice from a
VAT-registered supplier site, you are required to pay VAT charges to the
supplier. There are situations in which you do not pay VAT but need to
report the charges to your tax authorities.
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Chapter 6 - Page 57
Summary
Summary
Describe the process flow of Oracle Payables
Oracle Payables
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Chapter 6 - Page 58
Practice: Invoice Matching to Purchase Order

Task
Invoice Matching to Purchase Order
You have now received the invoices for these Purchase Orders created in Practice
Define a Budget in the Purchasing module. Refer to that practice for applicable
P.O. numbers.
(N) Invoices > Invoices
Enter the following invoices:
Your supplier has shipped 26 units of the item you ordered and therefore has
billed you for them. The shipments were for the first and second shipment lines.
The rest of the PO is on back order and will be shipped and billed at a later date.
Solution
Responsibility > Payables, Vision Operations (USA)
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Invoice # PO111-XX
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Type = PO Default
Enter the PO number
Date = Today
Amount = $2,600
Select the Match button. (Please verify that you are matching to a
Purchase Order)
When the Find window appears, click Find button.
You are now at the matching form. Verify that the shipment line 1 is for
18 units at $100.00 per box. Click on the far left checkbox to open the
shipment line.
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In the next shipment line, enter the quantity invoiced for 8.

The invoice amount equals the PO amount
Oracle Payables
Chapter 6 - Page 59
Select Match
Close the window
Verify the distribution total equals to the invoice amount.
Save your work.
Task
Invoice #PO222 -XX
Your supplier has shipped 5 more units of the item you ordered and therefore has
billed you for them. The shipments were for the second and third lines. The
remainder of the PO is back ordered and will be shipped and billed at a later date.
Solution
Type = Standard
Amount = $500
Select the Match button. (Please verify that you are matching to a
Purchase Order)
Select the Find button when the Find window is displayed
In the second shipment line, select the appropriate check box.
Enter the Quantity Invoiced as 2.
In the third shipment line, select the appropriate check box.
Enter the Quantity Invoiced as 3.
Note that the Distributions button is enabled, because the third shipment
line had multiple distributions.
Click Distribute.
In the Match to PO Distribution window, select the first distribution line

and enter the quantity invoiced as 2.
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In the second distribution line, again select the appropriate check box.
Enter the quantity invoiced as 1 to cost center 404.
Choose OK. This will save your work and update the quantity billed
information.
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Oracle Payables
Chapter 6 - Page 60
Close the windows and verify that the distributions total equals the
invoice amount.
Task
Invoice # PO333-XX
Your supplier has finally shipped the remaining 19 units and therefore has billed
you for them. The shipment was for the balance of the second and third shipment
lines.
Solution
Type = Quickmatch
Your Supplier
Second Site (from B)
Todays Date
Amount = $1,900
Select the Match button.
You should be in the Match screen. The second shipment should have
12 ordered and 10 billed. The third line should have 20 ordered and 3
billed. On the second shipment line, you are now being invoiced for 2.
On the third shipment line, you are now being invoiced for 17.
Click the Match button.
Save your work.
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Oracle Payables
Chapter 6 - Page 61
Practice: Defining a Bank

Task
Defining a Bank
Solution
Responsibility > Payables, Vision Operations USA
(N) Setup >Payment > Banks
(XX = your student number)
Bank
Name:
XX Your Bank
Institution: Bank
Address: Make one up
If you do not enter a bank branch number, the system will not allow you
to create a positive Pay File.
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Bank Accounts
Name:
Number:
Acct. Use:
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01-000-1110-0000-000
01-000-1250-0000-000
01-740-7870-0000-000
01-740-7870-0000-000
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XX Disbursements
XX452
Internal
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Go to the GL Accounts Tab
GL Accounts
Cash:
Cash Clearing:
Bank Charges:
Bank Errors:
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Bank Branch
Name: XX Your Branch
Number: XX 34
Press the PAYABLES DOCUMENTS button and fill in the fields listed
below:
Oracle Payables
Chapter 6 - Page 62
(Please read this section DOWN rather than across)

XXChecking
Combined
Long Check Format
999
999999
0
Name
Disbursement Type
Payment Format
Last Used
Last Available
Set-up Checks
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Oracle Payables
Chapter 6 - Page 63
Practice: Creating a Payment Batch

Task
Creating a Payment Batch
You are now ready to set up a payment check in a payment batch. You need to
select the parameters of your batch and build the payment batch. Use the
following steps:
Solution
Responsibility > Payables, Vision Operations USA
Payments Entry Payment Batches
Batch Name = Your initials and todays date
Bank = Your checking account (from the Define a Bank practice 6-2)
Document = Your document name (your check name) (from the Define a
Bank practice 6-2)
Leave the paygroup field blank
SELECT YOUR STUDENT ID AS THE PAYMENT PRIORITIES

(i.e. 12 to 12). If you do not change this, you will pay everyones
invoices.
Select the Actions button and accept defaults of Select Invoices and
Build Payments.
Request to print the Preliminary Report
Oracle Payables generated three requests; select the invoices, build the
payments, print the preliminary report.
View your Preliminary report
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Task
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Modify Batch
After reviewing the preliminary report, you realize you will need to modify this
batch
Oracle Payables
Chapter 6 - Page 64
Solution
Requery your payment batch
Select the Actions button and uncheck the Format selection
Select the Modify Option
You will now be in the Modify Payment Batch form. Review the
invoices selected and remove one of your invoices from the batch ( you
decide which one)
Select the Done button
The system will now rebuild your payment batch to reflect the invoice
being removed
Monitor the concurrent requests window until the rebuild process is

completed.
Return to your Payment Batch and requery it.
Once you are satisfied with your payment batch you are ready to format
and print the checks. Select the Actions button and select Format and
Print.
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Monitor the concurrent requests and once completed view the Format
Requests to see your printed checks
Note the last check number here ____________
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Chapter 6 - Page 65
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Oracle Payables
Chapter 6 - Page 66
Customers
Chapter 7
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Chapter 7 - Page 1
Customers
Customers
Module 7
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Chapter 7 - Page 2
Objectives
Objectives
do the following:
Describe the process of creating and maintaining
customers in Oracle Applications
creating customers
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Chapter 7 - Page 3
Agenda
Agenda
Overview of customers
Profile classes
Customer entry
Customer relationships
Customer merge
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Chapter 7 - Page 4
Managing Customers
Managing Customers
Create customer
profile classes
Enter customer
information
Assign
customers to
profile classes
Review customer
information
Eliminate duplicate
information
Create customer
relationships
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You can:
Create customer profile classes and assign them to customers
Create and maintain customer information
Enter multiple ship-to sites for each customer
Enable related customers to establish reciprocal payment and contract terms
Review customer information online and in reports
The system will perform a search for your customer before it allows you to
enter a new customer.
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Chapter 7 - Page 5
What is the New Customer Model?
What is the New Customer Model?
Receivables
AR
Customer
Master
Customer
Form
Order Entr y
Customer
interface
Projects
Customer
merge
Customer Model Tables

(store Customers, Addresses, Bank Accounts, etc.)
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The customer model is part of Oracle Receivables. It has tables that store
customer relationships and information about the people, organizations, and
locations involved in those relationships.
You interact with the customer model through the following modules:
Customer form: Online entry and query of customer information.
Customer interface: Batch load of customer information.
Customer merge: Merge customer accounts, usually after youve entered a
customer incorrectly or in duplicate or due to a business consolidation.
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Chapter 7 - Page 6
New Customer Model Benefit

New Customer Model Benefit
You do not have to duplicate customer addresses
across operating units:
Create then once
Reference them across all operating units
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Chapter 7 - Page 7
Entities of the New Customer Model

Entities of the New Customer Model
Organization or person customer: A unique set of
truths about a person, organization, group, or
relationship.
Account: The financial rollup point from which to
track the monetary portion of a customers
purchases and payments.
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Chapter 7 - Page 8
New Customer Model
New Customer Model

Location
Contact Point
O.C.P
relationship type
O.C.P. site
O.C.P.
Group
External
Organization
Person
O.C.P
relationship
O.C.P. role in
relationship
Customer
relationship
O.C.P. =
Organization or
person customer
Customer
relationship
site
Internal
Organization
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Chapter 7 - Page 9
Organization or Person Customer Registry

Organization or Person Customer
Registry
An organization or person customer is anything that
an enter into business relationships with another
organization or person customer.
You can store information about your relationships
in one source of truth representation of people
and businesses.
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Chapter 7 - Page 10
Organization or Person Customer Relationships

Relationships
The registry stores information about relationships
between organizations or person customers:
Organizational hierarchies
Business relationships, for example, partnerships
Personal relationships, for example,
marriage/partnership and parenthood
Organization contacts
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Chapter 7 - Page 11
Customer Accounts
Customer Accounts
Customer accounts model relationships between an
organization deploying Oracle Applications and an
organization or person customer stored in the new
customer model registry.
Additional organizations or person customers can
play roles in accounts. The new account model
retains release 11i customer model features
including:
Credit profiles
Terms of relationship (for example, discount term s)
Customer bank accounts
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Chapter 7 - Page 12
Customer Accounts Link with Organization or Person

Customer
Customer Accounts Link with

Attributes at organization or person
customer registry level:
Name
Street address
Taxpayer identification
Industrial classifications
DUNS number
Parent/subsidiary relationships
External credit ratings
Big H
Denver, Colorado
Customer Account #A-123
Customer Account #B-123
Attributes at customer account level:

Payment terms
Shipping preferences
Billing preferences
Internal credit rating
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In Release 11i, information about a customer is not separated from information

about the relationship with the customer. The new customer model separates
information about the organization or person customer from the terms of the
relationship.
Additionally, the new customer model allows you to establish multiple
relationships (also known as customer accounts) with the same organization or
person customer.
Addresses work in a similar fashion. You record an address for an organization
or person once, then reference it within the customer account layer, through the
Customer Account Site entity.
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Chapter 7 - Page 13
Agenda
Agenda
Profile classes
Customer entry
Customer merge
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Chapter 7 - Page 14
Profile Classes
Profile Classes
You can use profile classes to describe and group
customers with similar financial characteristics
Use profile classes to enter new customers quickly
and consistently
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Chapter 7 - Page 15
Customer Profile Class Characteristics
Customer Profile Class Characteristics

Credit/collections
Invoices and
Statements
Payment
promptness
Credit check
Collector
Payment
application
Dunning letters
Finance charges
Invoice line
and tax printing
Statement cycle
Consolidated
invoices
Payment terms
Discounts
Grace days
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Creating Customer Profile Classes

To make the creation of new customers in Oracle Order Entry/Shipping/Oracle
Receivables efficient, every customer must be assigned to a profile class. A
profile class defines several default values for customers with similar credit
terms and invoicing requirements. After a customer has been created, the default
values can be modified based on the specific characteristics of that customer.
For example, you may want to create a profile class for small manufacturers,
called Small MFG. Customers assigned to this profile class might require credit
checks before orders will be fulfilled, given Net 30 payment terms, and receive
quarterly statements. When creating a specific new customer, you could assign
that customer to the Small MFG profile class. If the customer develops credit
problems in the future, you might then modify that customers payment terms to
Cash On Delivery.
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Chapter 7 - Page 16
Agenda
Agenda
Profile classes
Customer entry
Customer merge
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Chapter 7 - Page 17
Customer Entry Methods
Customer Entry Methods

Enter complete
details
Enter limited
information
Import from
other systems
Standard
customer entry
Quick customer
entry
Customer
interface
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Standard Customer Entry: Enter detail customer information such as contact

roles, telephone numbers, customers shipping preferences, taxing requirements,
financial information and addresses
Quick Customer Entry: Enter minimal customer information.
Customer Interfaces:
EDI transactions
External Systems
Order Import
Use the Quick Customer Entry to enter minimal customer information.
Note: You do not have the ability to specify a location code, a primary bill-to
or a primary ship-to.
All data added on the Quick Customer form is associated with the single address
only.
You can add more detailed information later using the Standard Customer entry.
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Chapter 7 - Page 18
Business Issues
Business Issues
Before entering customer information, consider the
following:
Naming conventions
Entry method
Automatic or manual numbering
Profile classes
Centralized or decentralized address structures
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Before Entering Customer Information:

Specify naming conventions such as capitalization and abbreviations.
Select the appropriate data entry method: Standard Customer Entry, Quick
Customer Entry, or Customer Interface.
Select the Automatic Customer Numbering and Site Numbering system
options and the Automatic Contact Numbering profile option to automatically
number customers, sites, and contacts; or select the manual numbering option.
Use the Allow Payment of Unrelated Invoices system option to permit
payment of unrelated customers invoices.
Decide how to set up decentralized customers with multiple sites: as one
customer with multiple sites, or as multiple customers with one site.
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Chapter 7 - Page 19
Using Standard and Quick Customer Entry
Using Standard and Quick Customer

Entry
Customer
Addresses
Business Contacts Profile Characteristics

purpose
class
Telephone Bank Payment

numbers accounts method
Order
Management
information
Details
Accounting
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Consider the following issues when setting up multiple business purposes:

Oracle Receivables/Order Management permits only one site to be designated
as the primary site for any particular business use.
The primary site becomes the default site when orders are entered in the Sales
Order window.
When you override the default site, the secondary sites appear in the list of
values.
Linking Bill To and Ship To Locations
A Ship To address can have an associated Bill To address.
The associated Bill To address becomes the default during invoice entry when
the Ship To location is selected.
If the Order Management Defaulting Rules refer to customer as a source, the
Bill To address defaults during order entry in the Orders window.
Identifying an Address for a Customer Business Purpose
The Location attribute in the Business Purposes alternative region of the
Customer Addresses window provides a simple way to name or identify an
address. Location is used in transaction entry, receipts entry, create/approve/
confirm automatic receipts and remittances, orders, and returns windows.
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Chapter 7 - Page 20
To have Order Management automatically number locations, you can use the
Automatic Site Numbering system option. If you select the system option check
box, Order Management will uniquely number all the customer locations.
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Chapter 7 - Page 21
Demonstration
Demonstration
This demonstration shows you how to:
Define a new customer profile class
Enter a new customer
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Chapter 7 - Page 22
Agenda
Agenda
Profile classes
Customer entry
Customer merge
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Chapter 7 - Page 23
Customer Relationships
Create customer relationships to control:
Payment of unrelated invoices
Sharing of pricing entitlements
Consolidation of business addresses
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Control Application of Payment Receipts

In the System Options window, if the Allow Payment of Unrelated Invoices
check box is clear, Order Management permits application of one customers
receipt to another customers invoice, only if the customer who owns the
invoice is related to the customer who owns the receipt. If Allow Payment of
Unrelated Invoices is selected, a relationship does not have to be defined.
Control Creation of Invoices Against Agreements and Commitments
Order Management permits creation of invoices for the related customer against
previously entered commitments for the primary customer, if there is a
relationship between the primary and related customers.
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Chapter 7 - Page 24
Link one customer to another.

Enforce invoicing and receipt-application controls.
Can only exist between two customers.
Are not transitive: If A is related to B and B is
related to C, A and C are not related.
Can be reciprocal or nonreciprocal.
Allow you to select a related customers ship-to
address during order entry.
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(N) Customers > Quick or Standard > (T) Relationships
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(Help) (N) Oracle Receivables > Customers > Creating Customer

Relationships
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Create customer relationships to control:

Payment of unrelated invoices
Sharing of pricing entitlements
Consolidation of business addresses
System Options:
Select check box Allow Payment of Unrelated Transactions if you want to
permit application of funds from one customer to another unrelated customer.
If you do not select this checkbox, a customer relationship must be setup to
apply payments from one customer to another.
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Chapter 7 - Page 25
Customer Relationship Examples
Customer Relationship Examples

Primary
Related
Related
Reciprocal
Primary
Nonreciprocal
Primary
(parent)
Related
(child)
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Reciprocal and Nonreciprocal

A reciprocal relationship allows two customers to apply payments to each
others invoices and to match invoices against each others commitments. For
example, in the case of a parent company and a subsidiary, payments made by
either the parent company or the subsidiary could be applied to invoices issued
to the subsidiary or the parent.
A nonreciprocal relationship implies that only the primary customer can apply
payments or commitments to the related customers invoices. For example, in a
situation where a parent company is the primary customer and a subsidiary is a
related customer, payments made by the parent can be applied to invoices issued
to the subsidiary, but payments made by the subsidiary cannot be used to pay
invoices issued to the parent.
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Chapter 7 - Page 26
Agenda
Agenda
Profile classes
Customer entry
Customer merge
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Chapter 7 - Page 27
Merge Overview
Merge Overview
Merging customer information combines all
information for two customer accounts or account
sites, striped by operating unit.
You can delete or inactivate the merge-from
customer account and account sites uses.
Before merging customers, consider archiving the
historical data for the absorbed customer account
or account site.
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Chapter 7 - Page 28
Controlling the Merge Process

Controlling the Merge Process
1. Navigate to the Merge Customers window.
2. You can save your selection without performing the
merge.
3. If you click Merge, you submit the Customer Merge
concurrent process and receive a request ID. The
merge process is irreversible after you click Merge.
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(N) Customers > Merge
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(Help) Oracle Receivables > Customers > Merging Customers

Control the Merge Process
If the From (previous) customer had a site use that does not exist for the To
(new) customer, the system leaves the To address blank. You must assign this
site use to the new customer before you complete the merge (Ship To, Bill To,
and Marketing only).
After entering the details of the merge, you can save your work to review the
merge before the transactions of the customer or sites are transferred. Or you
can immediately submit the merge for processing by clicking the Merge button.
After the customers are merged, the From (previous) customers transactions are
linked to the To (new) customer in Order Management and in any other Oracle
applications that use customer tables.
When merge processing is complete, Order Management automatically
generates a Customer Merge Execution report which can be printed or reviewed
online.
After customer data has been merged, there are no links between the previous
customer and its transaction records. These transactions appear as if they had
always belonged to the succeeding customer.
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Customers
Chapter 7 - Page 29
To automatically copy from addresses as to addresses, select Create Same Site.
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Chapter 7 - Page 30
Summary
Summary
Describe the process of creating and maintaining
customers in Oracle Applications
Identify the implementation consideratons of
creating customers
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Chapter 7 - Page 31
Practice: Define a Customer Profile Class

Task
Define a Customer Profile Class
Solution
Responsibility > Order Management Super User, Vision Operations
(USA ) or Receivables, Vision Operations (USA)
Define a customer profile class that represents customers that are very good credit
risks.
(Example: Your Initials-VGCR)
(N) Customers > Profile Class
Name your profile class your initials -VGCR (ie . . . XXX-VGCR).
Click or tab to the Collector field and display a LOV and choose Jamie.
Set Credit Check = Yes. Tolerance = 0 . Payment Terms =

Net15. Override Terms = Yes
These customers will receive Statements on a Monthly basis and

Dunning Letters using the Standard Dunning Letter Set.
At times your customer remittances will not include invoices and you
prefer to have the system apply these receipts to the oldest item(s) on
your customers account, assign an AutoCash Rule Set of Standard.
Our company does not calculate interest (finance charges) on past due
amounts.
Assign any other values utilizing the LOV available.
Select Profile Class Amounts tab and assign limits for currency USD.
You will not be sending statements to this customer if their balance is

below $1,000. Type $1,000 in the Minimum Statement Amount.
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Assign a credit limit of $50,000 and an order limit of $35,000.
Save your profile class and record the name below:
Customers
Chapter 7 - Page 32
CUSTOMER PROFILE CLASS: _________________________________
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Customers
Chapter 7 - Page 33
Practice: Entering a New Customer

Task
Entering a New Customer
Solution
Responsibility > Order Management Super User, Vision Operations
(USA ) or Receivables, Vision Operations (USA)
PART I (General information)
Your company has acquired a new customer we will call "Your Name, Inc."
(you may name your customer whatever you would like). Add the customer.
(N) Customers > Standard
In the Find/Enter screen, type the name of your customer. Click the Find
Button. The system will return a message stating the customer you
specified does not exist. Click the OK button. The New Button will
now be available. Click the New Button to proceed to the Customer
Standard Form
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Assign the profile class you created in Practice 4-1. (Hint: Use
Classification Tab)
The category field should be High Technology.
Enter any of the other optional fields you want
Choose the tab named Profile: Transaction
Change the payment terms for this customer to Net 30.
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PART II (Entering Addresses and Contacts)
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The customer has 2 locations in Chicago for which they will be doing business
with you.
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Select the Address Tab and then go to the detail window (by choosing
the New button).
Add an address for this customer. Use any street information you would
like, the city is Chicago, County is Cook and the Postal Code is 60601.
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Customers
Chapter 7 - Page 34
Choose Contacts: Telephones Tab
Add at least one contact with at least one phone number.
Save.
Put your cursor in the Country field and use your down arrow key to
obtain a blank address form.
Enter another address, contact and phone number following the above
instructions (this will be your second location in Chicago).
Save.
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Customers
Chapter 7 - Page 35
PART III (Business Purpose)

You will send invoices and statements to one address and shipments to both. You
are assigning business reasons for these addresses. With the Customer Address
window still open:
Choose the Business Purpose Tab.
Establish the address displayed as both a primary Bill-To and a Ship-To

business purpose. For the Location field, type the street name so you
can identify it later.
Identify the other address you entered in Part II as a Ship-To business

purpose. For the location type the street name so you can identify it
later.
Save the record.
Whenever you ship to either of these addresses you will bill the primary
Bill-To Location. Establish this billing arrangement as the default for
both addresses you have entered. To do this, on the Ship to record
line, tab to the Bill To Location field and using the LOV, choose your
Bill-To Address.
Save the record
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Chapter 7 - Page 36

Chapter 8
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Chapter 8 - Page 1
Module 8
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Chapter 8 - Page 2
Objectives
Objectives
the following:
Describe the process flow of Oracle Order
Management
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Chapter 8 - Page 3
Agenda
Agenda
Overview of Order Management
Order processing
Customer returns
Implementation considerations
Shipping execution
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Chapter 8 - Page 4
Oracle Order Management Suite

Oracle Order Management Suite
Oracle Order Management (includes basic pricing)

Oracle Configurator
Oracle Advanced Pricing
Oracle Release Management and e-Commerce
Gateway
Customer, Carrier, Shipper, and Order Management
Portals
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Chapter 8 - Page 5
Basic Pricing (Part of OM)

Basic Pricing (Part of OM)
Basic pricing included in Order Management
enables you to:
Set up price lists and secondary li sts
Create static formula s
Di scount by percentage or amount
Apply freight charge s and surcharge s
Set up customer pricing agreements
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Chapter 8 - Page 6
(Packaged with OM)

(Packaged with OM)
Offers flexible, extensive shipment planning
capabilities
Over and under shipments
Provides for capturing freight and special charges

Permits Oracle Shipping Integration to UPS Online
Systems
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Chapter 8 - Page 7
Oracle Order Management Features

Oracle Order Management Features
Offers comprehensive processing of:
Orders
Returns
Mixed orders and returns
Drop Shipments
Performs order capture from any source using

Oracle e-Commerce Gateway
Has order pricing, change, copy, cancel and
monitoring capabilities
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Chapter 8 - Page 8
Order Management Interfaces

Order Management Interfaces
Order Import
e-Commerce Gateway
Purchase Release
Invoice Interface
Inventory Interface
Shipping Interface
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Chapter 8 - Page 9
Overview: Order Management Integration Points
Overview: Order Management Integration Points

GL
Inventory
Interface
Invoice
Oracle
Receivables
Invoice Interface
Oracle
Inventory
Move Orders,
Pick Release,
Pick Confirm Pick/Ship
APIs
Scheduling/
Sourcing API
Process Order API
Customer
Order Import,
Process Order API
Standard
Order
Process
Book
Order
Inventory
Enter Order
Schedule
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Integration Points
Order Import: Brings in legacy orders, Inbound EDI, Internal Orders from
PO, note: validations are done by the Process Order API.
e-Commerce Gateway: Sends outbound EDI transactions 855 (Purchase
Order Acknowledgment) and 865 (PO Change Acknowledgment).
Purchase Release: Communicates externally sourced items from Order
Management to PO via Purchase Release API which feeds the Purchase
Release Interface.
Invoice Interface: Sends invoice and credit memo information.
Inventory Interface: Decrements inventory quantities at ship confirm.
Shipping Interface (External Systems): Accepts inbound disposition of
deliveries, transportation plans and more from other systems.
Shipping Execution: Communicates sales order line information.
Configurator: Inserts order lines from the configuration.
Customer Relationship Management: Accepts orders and order lines from
Order Capture for TeleSales, iService, and other modules. Order
Management calls Customer Relationship Management to pass installation
information.
Pricing: Inserts order lines for free goods and promotions.
Release Management: Processes orders and order lines.
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Chapter 8 - Page 10
Shipping Execution: Sends freight cost, quantities, ship method and other
information.
Configure to Order: Sends the configured item number.
c-Commerce Gateway: Accepts order information from Process Order API
via the Order Import. Sends order information through Order Import to the
Process Order API.
Pricing: Prices and reprices the order lines.
Shipping Execution: Sends information required to create the cost of goods
sold account.
Shipping Execution: Sends inbound and outbound requests for booked,
shippable lines.
Advanced Planning and Scheduling: Sends scheduling and sourcing
requests.
Configure to Order: Sends request to create configuration, create work
order.
Customer Relationship Management: Validates i-Payment information.
Configurator: Validates configurations.
Purchasing: Sends cost of goods sold for drop shipments.
Purchasing: Sends externally sourced line information via the Purchase
Release Interface.
Purchasing: Sends changes to internal orders.
Purchasing: Updates return material authorization quantities received.
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Chapter 8 - Page 11
Order Management Portal (Part of OM)

Order Management Portal (Part of OM)
The Internet Customer Portal is a self-service web
application. A customer can:
View existing orders with a web browser.
Query by criteria, for example, purchase order
number, project number, and sales representative.
View item availability
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Chapter 8 - Page 12
Credit Card Processing

Credit Card Processing
You can validate a customer credit card during
order entry and Oracle iPayment will validate and
return authorization information back to Order
Management.
You can mask sensitive credit card data through a
Profile Option.
Payment capture occurs in AR
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Chapter 8 - Page 13
Agenda
Agenda
Order processing
Customer returns
Shipping execution
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Chapter 8 - Page 14
Basic Order Process
Basic Order Process
Customer
Invoice
Order
Order
Shipping
Sales
Department
Inventory
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Chapter 8 - Page 15
Order Entry Methods
Order Entry Methods

Enter order
or return online
Copy an
order or return
Import from
other systems
EDI
Order or return
Enter
order or return
Order Import
Order or return
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Chapter 8 - Page 16
Basic Order Process Flows
Basic Order Process Flows

Invoice only
1
2
3
Standard shippable
Standard shippable
(Distributor)
(Manufacturer)
1
1
Customer requests order
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2
Enter order
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3
Book order
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Schedule
5
Release order to Manufacturing
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Ship product and update inventor y
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7
Invoice the customer
Complete
Complete
Complete
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Chapter 8 - Page 17
Demonstration
Demonstration
This demonstration shows you how to process a
sales order to invoice creation.
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Chapter 8 - Page 18
Returns
Returns
Order and return lines on same order
Common Receiving forms
Record expected Serial/Lot numbers for
informational purposes
Acknowledgments print for returns
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Chapter 8 - Page 19
Vendor Drop Shipments
Vendor Drop Shipments

Supports order
fulfillment of items
to be shipped to
your customers by
your suppliers
Supplier
Single point of
maintenance for
customer addresses
Invoice
and organization
ASN
locations
Purchase
order
Customer
Purchase
order
Invoice
Your
company
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Chapter 8 - Page 20
Vendor Drop Ship or Combination Standard with Drop

Ship Order Flow
Vendor Drop Ship or Combination

Standard with Drop Ship Order Flow
Enter order
Drop Ship: Yes or No?
Drop Ship Item
Internally Sourced Item
Send to Purchasing
Schedule
Supplier ship confirmation
Ship and update inventor y
Create invoice
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Close sales order

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Chapter 8 - Page 21
Pricing
Pricing
Through Order Order Management, you can:
Set up price lists
Define pricing attributes
Copy and adjust price lists
Set Government Service Administration
(GSA) pricing
Define pricing formulas
Set up modifiers so you can adjust prices, have
freight and special charges and surcharges
Set up limited qualifiers
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Chapter 8 - Page 22
Configurator
Configurator
The Oracle Configurator is an add-on product in OM
which enables you to use bills of material and
establish rules to configure-to-order (CTO) and
validate option choices.
Customers may select from these options when
ordering product.
You can select options with an assemble-to-order
(ATO) or a pick-to-order (PTO) bill of material (BOM)
even if you dont purchase the
Oracle Configurator.
Pricing and available to promise capabilities are
provided during the configuration process.
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Chapter 8 - Page 23
Agenda
Agenda
Order processing
Customer returns
Shipping execution
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Chapter 8 - Page 24
Standard Return
Standard Return
Create Return Order
Verify status header
Book RMA
and lines using workflow monitor
Single RMA, originating transaction

is unknown
From Oracle AR, run auto invoice
Check on hand quantity of item
Receive RMA using receipts
to create credit memo
in inventory to verify correct amount
from Oracle receiving module

Purchasing
Check the authorized and

accepted quantity on the RMA line
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Return Material Authorization Overview

Order Management provides sophisticated tracking of your Return Material
Authorizations (RMA). Returns from a customer occur for a variety of reasons
including damage, shipment error, or sampling. Return material processing
functionality enables you to manage the expectations of customers while
controlling inventory receipts and customer credit processing.
Major Features
Return Material Authorizations (RMA): Order Management enables you to accept
returns for credit, repair or replacement for any reason that you authorize. Order
processing controls enable you to establish the appropriate activity for your
different returned goods channels.
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Chapter 8 - Page 25
Agenda
Agenda
Order processing
Customer returns
Shipping execution
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Chapter 8 - Page 26
Setup and Implementation

Before you use Oracle Order Management, you must
define business policies, various features, and
defaults. You can do this by using:
Profile Options
Workflow
Processing Constraints
QuickCodes
Transaction Types
Attribute Controls
Defaulting Rules
Item Categories
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Chapter 8 - Page 27

You will also need to set up:
Inventory items and item relationships
Bills of Materials for ATO and PTO items
Customer Items
Catalog groups
Tax information
Price lists and pricing modifiers, qualifiers, and
formulas
Credit check processes
Any other options you require
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Chapter 8 - Page 28
Reports
Reports
There are many standard reports available in Oracle
Order Management.
You can use these reports to help you manage your
business requirements.
There are several categories of reports useful in
managing the order process.
Setup related
Order related
Credit order related
Exception
Administrative
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Chapter 8 - Page 29
Agenda
Agenda
Order processing
Customer returns
Shipping execution
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Chapter 8 - Page 30
Shipping Execution Concepts

Trips
Stop
Delivery
Delivery leg
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These are the key concepts behind the application. Becoming familiar with
these concepts will make learning the application much easier.
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Chapter 8 - Page 31

Trip
Is carrier-specific (such as UPS, DHL, FedEx)
Contains deliveries and departs from a particular
location
Must contain at least two stops (such as San
Francisco, New York, Miami, and Dallas)
San Francisco
Trip 1
Stop 2
NY
Stop 1
Trip 1
Stop 4
Dallas
Trip 1
Stop 3
Miami
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Trips
Trip 1
San Francisco to New York, New York to Miami, and Miami to Dallas.
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Chapter 8 - Page 32

Stop
Point along the route that a trip makes to its final
destination
Can consist of pick-ups, drop-offs, or both
San Francisco
Trip 1
Stop 2
NY
Stop 1
Trip 1
Stop 4
Dallas
Trip 1
Stop 3
Miami
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Stops
A Stop represents a point along the route that a trip makes to its final
destination e.g,. New York. This point may also have some activity associated
with it. The activity might include picking up a new delivery, dropping off a
delivery, or both.
Trip 1
San Francisco (stop 1) to New York (stop 2), New York to Miami (stop 3), and
Miami to Dallas (stop 4).
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Chapter 8 - Page 33

Delivery
Consolidation of sales order lines by attributes
Based on user defined criteria:
Mandatory grouping criteria consi sts of:
Customer
Ship from location
Ultimate ship to location
An optional grouping criteria include carrier, freight
terms, freight on board (FOB), intermediate ship to
location, freight terms, ship method, FOB code, and
carrier.
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Chapter 8 - Page 34

Delivery Leg
Consists of at least two stops and one leg or trip
Represented by the bill of lading
Trip 1
San Francisco
Stop 2
Delivery 1, Leg 1
NY
Stop 1
Leg 1 Delivery 2
Stop 4
Leg 1
Dallas
Stop 3
Miami
Delivery 3
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Delivery Leg
A delivery leg consists of two stops where the delivery is picked up and
dropped off respectively on the same trip. The delivery may travel through
several legs to get to its final destination. A delivery leg is synonymous with the
bill of lading.
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Chapter 8 - Page 35
Material Picking (Pick Release)

Material picking waves
Manage staging locations
Report inventory shortages
Take advantage of cross-docking opportuni ties
Configurable process (four steps)

1. Pick release
2. Move order line detailing*
3. Move order line pick confirmation*
4. Ship confirmation
* May be automated
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Oracle Shipping Execution enables you to use move orders transactions for
generating pick requests and reservations in Oracle Inventory.
With the new pick release engine, you can pick release all items together on a
trip or stop. You can also pick release items together on a delivery.
Using the new engine, pick release can be performed using a one-two-or threestep process.
The one-step process consists of select both the auto detail and auto pick
confirm check boxes on the Inventory tab when you run pick release, which
means that the pick recommendation is automatically created and pick
confirmed without any manual intervention.
The two-step process consists of selecting auto detail, but not auto pick confirm,
which creates a move order that is automatically detailed but enables you to
view the pick recommendation and provides the opportunity to change quantity,
location, and subinventory, and to report a missing quantity at the pick
confirmation step in the transact move orders window. Once you have made
your changes, you can transact the move order to pick confirm the inventory.
The three-step process consists of selecting neither the auto detail or auto pick
confirm check boxes, which creates a move order that you can manually or
automatically detail in the transact move orders window. Once detailed, you
can transact the move order to pick confirm the transaction.
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Chapter 8 - Page 36
Pick Confirmation
Pick Confirmation
The move order line details (transaction lines) created
by the detailing process must be transacted to confirm
the material drop-off in staging:
Transacts move order details to staging
subinventory
Transfers reservation to staging location:
Can report discrepancies
Can change detail
Auto pick confirm

Set as default in the Organization Parameters window
Can be overridden at pick release
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Pick Confirmation
The move order line details (transaction lines) created by the detailing process
must be transacted to confirm the material drop-off in staging. This process is
called pick confirmation.
Pick confirmation executes the subinventory transfer that moves the material
from its source location in the warehouse into the staging location. Pick
confirmation automatically transfers the high level reservation to a detailed
reservation (including lots, subinventory, revisions, and locators) in the staging
location. At pick confirmation, a user can report a missing quantity or change
the transaction line if the picker chose to use material from a different lot, serial,
locator, or subinventory. If an organizations picks rarely deviate from the
suggested picking lines and the overhead of requiring a pick confirmation is
unmanageable, the pick confirm transactions can occur immediately after the
lines are detailed. This option is called auto pick confirm. Users can set up a
default pick confirm policy in the Inventory organization parameters. This
default can be overridden at each pick release.
Note that even if an automatic pick confirm is employed, the material is only
transacted to the staging subinventory and reserved. A user can still manage
any discrepancies found by deleting the reservation and transacting the material
back to its original subinventory. If mobile devices such as bar code scanners
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Chapter 8 - Page 37
are used to perform inventory transactions, you should use manual pick
confirmation for greatest inventory accuracy and control.
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Chapter 8 - Page 38
Ship Confirmation Business Flow
Ship Confirmation Business Flow

Order
Management
OM
Ship
Confirmation
SE
Invoice
Information
Invoice
Information
Inventory
Information
IM
AR
Inventory
Receivables
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Chapter 8 - Page 39
Prerequisites for Ship Confirmation

Prerequisites for Ship Confirmation
The delivery lines must be released.
The delivery must be open or packed.
At least one delivery line must be assigned to the
delivery.
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(N) Shipping > Transactions (I) Flashlight Icon Search for the
Delivery (B) Find (B) Actions (M) Ship Confirm (B) Go
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(Help) Oracle Manufacturing Applications > Oracle Shipping

Execution > Managing Deliveries > Ship Confirming a Delivery
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Chapter 8 - Page 40
Summary
Summary
Describe the process flow of Oracle Order
Management
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Chapter 8 - Page 41
Practice: Create Sales Order and Invoice

Task
Create Sales Order and Invoice
Solution
Symbols Legend
(N) = Navigate
(T) = Tabbed Region
(I) = Icon on Toolbar
[B] = Button
Responsibility > Order Management, Super User (Vision Operations,
USA)
Step 1 Book the order
1. Orders, Returns > Sales Orders
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2. Order Information, (T) Main
Customer: Hilman & Associates

Order Type: Mixed
Price List: Corporate
Salesperson: Accept Default
3. (T) Line Items

Ordered Item
AS54888
Qty
5
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4. [B] Book Order and note the order number _______________.

Step 2 Pick Release and Auto Pick Confirm the Order
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1. (N) Shipping > Release Sales Orders > Release Sales Orders
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2. (T)
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Order
Order Number: From above
Scheduled Ship Dates: Accept Default
Requested Dates: Accept Default
3. (T) Inventory

Chapter 8 - Page 42
Warehouse: M1 (LOV)
Pick Slip Grouping Rule: Departure, Delivery (Default)
Auto Allocate: Yes (Default)
Auto Pick Confirm: Yes (Default)
[B] Concurrent. Note request number ______
[B] OK. Close the window.
4. (M) View > Requests.

Select View all my Requests
[B] Find
The request status for the Pick Selection List Generation and Pick
Slip Reports should be Completed, Normal. Close the form.
Step 3 Ship Confirm the Order
1. (N) Shipping > Transactions
2. Query Manager Form is displayed
Select the Lines Search button (Default)

Enter your order number.
[B] Find
3. (T)
Delivery
Actions. Select Ship Confirm
[B] Go.
[B] Select the checkbox to Ship All in the Confirm Delivery Form.
Leave remaining defaults
[B] OK
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4. A message will display to inform you that the inventory interface is triggered.
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Note the Request Number _____________.
5. Close the Shipping Transaction window.
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Step 4 Running the Workflow Background Process
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1. Navigate to Inventory > Workflow Background Engine

2. Parameters
Item Type: OM Order Line
Process Deferred: Yes
Process Timeout: NO
Click OK
Click Submit
View > Request
Select View all my Request
Click Find
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Chapter 8 - Page 43
Work flow Background Engine should be competed Normal. Close

the form.
Step 5 Running Autoinvoice - Depending on the patch level this step
may have been run automatically.
1. (N) > Receivables > Interfaces > Autoinvoice
2. Single Request
3. Name: Autoinvoice Master Program
4. Parameters
Number of Instances: 1
Invoice Source: Order Entry
Default Date: Current Date
(Low) Sales Order Number: Current Order Number (If it is not
available, the program has already run automatically)
(High) Sales Order Number: Current Order Number
Click OK
Click Submit
View > Request
Select View all my Request
Click Find
Work flow Background Engine should be competed Normal. Close
the form.
Step 6 Viewing the Invoice in Accounts Receivables
2. Click on the flashlight
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Responsibility > Receivables, (Vision Operations, USA)

1. (N) Transactions > Transactions
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3. Enter the Sales Order Number
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4. Click Find
5. This is the invoice that was created in Accounts Receivables
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6. Note the Number field in the upper left hand corner. This is your invoice
number for your order.
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Step 7 Invoice Viewing

Responsibility > Order Management, Super User (Vision Operations,
USA)

Chapter 8 - Page 44
1. (N) Order , Returns > Order Organizer
Order Number: From this practice

[B] Find
[B] Open
2. (T) Line Items
[B] Actions. Select Additional Line Information from the LOV.

(T) Deliveries: View the Delivery that the item was assigned to.
(T) Receivables: View the Invoice that was created for the item.
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Chapter 8 - Page 45
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Chapter 8 - Page 46

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11i Financial Applications Overview

Copyright Oracle Corporation, 2001. All rights reserved.

This book was published using:

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Sequencing the Segments.................................................................................................... 2-44

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

What is Multiple Reporting Currencies?............................................................................. 2-106

Applications Desktop Integrator.......................................................................................... 3-1

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Uploading Journal Entries to Oracle General Ledger ......................................................... 3-16

Suppliers ................................................................................................................................ 4-1

11i Financial Applications Overview Table of Contents

Objectives ........................................................................................................................... 4-3

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Accounting Implementation Considerations ....................................................................... 5-32

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Overview of Tax in Oracle Applications............................................................................. 6-53

Oracle Order Management .................................................................................................. 8-1

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Returns ................................................................................................................................ 8-19

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Automatic Receipts ............................................................................................................. 9-40

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Reporting, Reconciling, and Inventory Processing ............................................................. 10-37

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Setting Up Oracle Receivables for Oracle Cash Management ........................................... 11-27

Oracle System Administration ............................................................................................. 13-1

Oracle Flexfields.................................................................................................................... 14-1

11i Financial Applications Overview Table of Contents

Oracle Flexfields ................................................................................................................. 14-2

Appendix B: Oracle Self-Service Web Applications .......................................................... 16-1

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Oracle iStore, iPayment and iMarketing ............................................................................. 16-12

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Online Reporting and Hard Copy Reporting....................................................................... 18-42

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Working experience with a general financial environment.

There are no prerequisites for this course.

How This Course Is Organized

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

Click the Executable button.

Code output: debug.set (I, 300);

Customer address (but Oracle Payables)

Do not save changes to the database.

This subject is covered in Unit II, Lesson 3,

Use the SELECT command to view

Copyright Oracle Corporation, 2001. All rights reserved.

11i Financial Applications Overview Table of Contents

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