D59687GC10 sg2

Oracle Internal & Oracle Academy Use Only
R12.x Oracle General Ledger

Management Fundamentals
Volume 2 - Student Guide
D59687GC10
Edition 1.0
January 2010
D63157
Copyright © 2010, Oracle. All rights reserved.
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Author
Stacey Tucker-Blosch
Contributing Author
Brent Bosin, Marilyn Crawford, Shivranjini Krishnamurthy
Technical Contributors and Reviewers
Ivy Farren, Joe Gum, Rohit Kathuria, Theresa Hickman, Bruce Ingram, Suzanne Miller, Vidya
Nagaraj, Cynthia Prier, Pam Rietz, Christine Rudd, Prescilla Sadepalli, Reema.Saravanan,
Deepak Seth, Mei Siauw, Lata Sundar, Kathy Wohnoutka, Theresa Wong, Michael Wurtzel
This book was published using: oracletutor

Table of Contents
Oracle General Ledger Process ......................................................................................................................1-1

Oracle General Ledger Process .....................................................................................................................1-3
Objectives ......................................................................................................................................................1-4
Oracle General Ledger Overview ..................................................................................................................1-5
General Ledger Overview..............................................................................................................................1-6
Functions and Features ..................................................................................................................................1-7
General Ledger Accounting Cycle ................................................................................................................1-8
Critical Implementation Issues ......................................................................................................................1-9
Oracle General Ledger Integrates with … .....................................................................................................1-10
Also Integrates with …..................................................................................................................................1-13
Integrating with Subledgers...........................................................................................................................1-14
Importing to General Ledger from Non-Oracle Applications........................................................................1-15

Overview of Accounting Setup Manager ......................................................................................................1-16
Foreign Currency Concepts ...........................................................................................................................1-17
Multiple Currency Support ............................................................................................................................1-18
Budgeting ......................................................................................................................................................1-20
Reporting and Analysis .................................................................................................................................1-21
Standard Reports and Listings .......................................................................................................................1-23
Financial Statement Generator Reports (FSG) ..............................................................................................1-24
Summary........................................................................................................................................................1-25
Quiz ...............................................................................................................................................................1-26
Ledger...............................................................................................................................................................2-1
Ledger............................................................................................................................................................2-3
Objectives ......................................................................................................................................................2-4
Ledgers Defined ............................................................................................................................................2-5
Quiz ...............................................................................................................................................................2-6
Secondary Ledgers ........................................................................................................................................2-7
Secondary Ledger Conversion Levels ...........................................................................................................2-8
Reporting Currencies.....................................................................................................................................2-10
Reporting Currency (RC) Conversion Levels................................................................................................2-11
Accounting Setup Steps.................................................................................................................................2-12
Quiz ...............................................................................................................................................................2-14
Accounting Setup Manager Create Accounting Setup ..................................................................................2-15
Unlimited Currencies.....................................................................................................................................2-17
Sharing Ledgers Across Oracle Applications ................................................................................................2-18
Building the Chart of Accounts Structure......................................................................................................2-19
Identifying Business Requirements ...............................................................................................................2-20
Identifying Segment Requirements ...............................................................................................................2-21
Analyzing Reporting Requirements...............................................................................................................2-23
Creating a Worldwide Chart of Accounts......................................................................................................2-24
Worldwide Chart of Accounts Example........................................................................................................2-25
Creating Vertical Structures ..........................................................................................................................2-26
Validation and Value Sets .............................................................................................................................2-27
Using Independent and Dependent Segments................................................................................................2-28
Designing Size and Numbering Systems.......................................................................................................2-30
Creating Accounting Flexfields.....................................................................................................................2-32
Defining Value Sets.......................................................................................................................................2-33
Defining the Accounting Flexfield Structure.................................................................................................2-35
Defining Segment Values ..............................................................................................................................2-38
Populating Segment Value Attributes............................................................................................................2-39
Segment Qualifiers ........................................................................................................................................2-40
Control Accounts...........................................................................................................................................2-42
Copyright © Oracle, 2010. All rights reserved.
R12.x Oracle General Ledger Management Fundamentals Table of Contents

i
Control Accounts Setup and Process .............................................................................................................2-43
Defining Hierarchies......................................................................................................................................2-44
Working with Ranges ....................................................................................................................................2-46
Account Hierarchies ......................................................................................................................................2-47
Quiz ...............................................................................................................................................................2-48
Defining an Accounting Calendar .................................................................................................................2-49
Defining Period Types...................................................................................................................................2-51
Defining Your First Accounting Period.........................................................................................................2-52
Accounting Period Statuses ...........................................................................................................................2-53
Accounting Calendar .....................................................................................................................................2-54
Calendar Auditing..........................................................................................................................................2-55
Enabling Currencies ......................................................................................................................................2-56
Quiz ...............................................................................................................................................................2-57
Enabling Account Combinations...................................................................................................................2-58
Segment Value Inheritance............................................................................................................................2-59
Chart of Accounts..........................................................................................................................................2-61

Troubleshooting Segment Value Inheritance.................................................................................................2-62
Defining Flexfield Security Rules .................................................................................................................2-64
Using Dynamic Insertion...............................................................................................................................2-66
Defining Cross-Validation Rules...................................................................................................................2-67
Defining Shorthand Aliases...........................................................................................................................2-69
Overview of Account Hierarchy Manager.....................................................................................................2-71
Integrating with Oracle General Ledger ........................................................................................................2-73
Using the Account Hierarchy Toolbar...........................................................................................................2-74
Account Hierarchy Manager Segment Symbols............................................................................................2-75
Account Hierarchy Manager—Security ........................................................................................................2-77
Parent Levels in an Account Hierarchy .........................................................................................................2-79
Creating New Child Values ...........................................................................................................................2-80
Ledger Sets ....................................................................................................................................................2-81
Data Access Sets............................................................................................................................................2-82
Quiz ...............................................................................................................................................................2-83
Summary........................................................................................................................................................2-84
Accounting Setup Manager ............................................................................................................................3-1
Using Accounting Setup Manager.................................................................................................................3-3
Objectives ......................................................................................................................................................3-4
Accounting Setups.........................................................................................................................................3-6
Accounting Setup Manager Overview...........................................................................................................3-8
Creating Accounting Setups ..........................................................................................................................3-10
Accounting Setup Prerequisites.....................................................................................................................3-11
Legal Entities Pages.......................................................................................................................................3-12
Accounting Setups Pages...............................................................................................................................3-13
Quiz ...............................................................................................................................................................3-14
Accounting Setup Manager Checklist ...........................................................................................................3-15
Accounting Setup Manager Checklist (continued) ........................................................................................3-16
Legal Entities Overview ................................................................................................................................3-17
Accounting Setup Considerations..................................................................................................................3-18
Accounting Setups with One Legal Entity ....................................................................................................3-19
Accounting Setups with Multiple Legal Entities ...........................................................................................3-21
Accounting Setups with No Legal Entities....................................................................................................3-22
Balancing Segment Value Assignments ........................................................................................................3-23
Using Balancing Segment Values for Transaction Processing ......................................................................3-24
Completing Accounting Setups .....................................................................................................................3-25
Designating the Balancing Segment for a Chart of Accounts .......................................................................3-26
Defining Legal Entities Using Accounting Setup Manager...........................................................................3-27
Updating Balancing Segment Values ............................................................................................................3-29
Creating Accounting Setup Structures...........................................................................................................3-31

ii
Creating Accounting Setup Structures (continued) .......................................................................................3-32
Creating an Accounting Setup .......................................................................................................................3-34
Completing Accounting Options ...................................................................................................................3-36
Updating Legal Entities .................................................................................................................................3-37
Primary Ledger Setup Steps ..........................................................................................................................3-39
Ledger Options ..............................................................................................................................................3-40
Ledger Balancing Segment Value Assignments............................................................................................3-42
Subledger Accounting Options......................................................................................................................3-44
Operating Units .............................................................................................................................................3-45
Quiz ...............................................................................................................................................................3-47
Intracompany Balancing Rules......................................................................................................................3-48
Sequencing ....................................................................................................................................................3-49
Secondary Ledgers ........................................................................................................................................3-50
Using Secondary Ledgers for Consolidated Reporting..................................................................................3-60
Using Ledgers for Consolidation...................................................................................................................3-64

Quiz ...............................................................................................................................................................3-66
Completing Accounting Setup.......................................................................................................................3-67
Adding, Deleting, Disabling Secondary Ledgers ..........................................................................................3-69
Quiz ...............................................................................................................................................................3-71
Basic Journal Entries ......................................................................................................................................4-1
Basic Journal Entries .....................................................................................................................................4-3
Objectives ......................................................................................................................................................4-4
Journal Entries and the Accounting Cycle.....................................................................................................4-7
Integrating Journal Entries in Oracle eBusiness ............................................................................................4-8
Performing Journal Entry Functions..............................................................................................................4-9
Journal Entry Types.......................................................................................................................................4-10
Journal Creation Methods..............................................................................................................................4-11
Journal Components ......................................................................................................................................4-13
Quiz ...............................................................................................................................................................4-15
Grouping Journals into Batches.....................................................................................................................4-16
Manual Journal Entries..................................................................................................................................4-18
Performing Additional Journal Actions.........................................................................................................4-20
Posting Journals.............................................................................................................................................4-21
Data Access Set (DAS) Impact to Posting.....................................................................................................4-23
Posting to a Prior Period................................................................................................................................4-24
Quiz ...............................................................................................................................................................4-26
Overview of AutoPost ...................................................................................................................................4-27
Defining AutoPost Criteria Sets ....................................................................................................................4-28
Running AutoPost..........................................................................................................................................4-30
Performing Online Inquiries for Accounts and Journal Entries.....................................................................4-31
Performing Account Inquiry..........................................................................................................................4-32
Reviewing Balances with Account Inquiry ...................................................................................................4-34
Reviewing Variances Between Account Balance Types ...............................................................................4-35
Drilling Down to Subledger Details ..............................................................................................................4-36
T Accounts and Drilldown.............................................................................................................................4-38
Display Options Available While Viewing ...................................................................................................4-40
T Accounts.....................................................................................................................................................4-41
Activity Summary..........................................................................................................................................4-43
Reversing Journal Entries ..............................................................................................................................4-44
Creating Reversing Journals ..........................................................................................................................4-45
Reversing Journals Automatically .................................................................................................................4-46
Journal Reversal Prerequisites.......................................................................................................................4-48
Quiz ...............................................................................................................................................................4-49
Running Journal Entries Report.....................................................................................................................4-50
Integrating with Oracle General Ledger ........................................................................................................4-51

iii
Web Applications Desktop Integrator Overview...........................................................................................4-52
Web ADI Core Functionality.........................................................................................................................4-54
Desktop Integration Via Web ADI ................................................................................................................4-56
Administering Web ADI ...............................................................................................................................4-58
Creating Web ADI Spreadsheets ...................................................................................................................4-59
Working With Web ADI Spreadsheets..........................................................................................................4-60
Defining Web ADI Layouts...........................................................................................................................4-61
Defining Web ADI Mappings .......................................................................................................................4-62
Defining Web ADI Style Sheets....................................................................................................................4-63
Defining Web ADI Setup Options for Key Flexfields...................................................................................4-64
Uploading and Downloading Data from Web ADI Spreadsheets .................................................................4-65
Identifying Web ADI Profile Options ...........................................................................................................4-67
Identifying Form Functions, Menus, and Responsibilities in Web ADI........................................................4-68
Quiz ...............................................................................................................................................................4-69
Overview of Importing Journal Entries .........................................................................................................4-70
Importing Descriptive Flexfields ...................................................................................................................4-72

Importing Journals.........................................................................................................................................4-73
Multi-Table Journal Import ...........................................................................................................................4-75
Journal Import Group By Effective Dates Description..................................................................................4-77
Journal Import Group By Effective Dates Benefits .......................................................................................4-78
How to Set Up Journal Import Group By Effective Dates ............................................................................4-79
Using Journal Import Group By Effective Dates...........................................................................................4-80
Importing Journal References........................................................................................................................4-81
Reviewing Journal Import Data.....................................................................................................................4-83
Journal Import Verification Process ..............................................................................................................4-84
Quiz ...............................................................................................................................................................4-86
Using Journal Entry Sources and Categories.................................................................................................4-87
Setting Profile Options ..................................................................................................................................4-89
Summary........................................................................................................................................................4-90
Summary Accounts..........................................................................................................................................5-1
Summary Accounts........................................................................................................................................5-3
Objectives ......................................................................................................................................................5-4
Overview .......................................................................................................................................................5-5
Defining Summary Accounts ........................................................................................................................5-7
Summary Account Examples ........................................................................................................................5-8
Detail Versus Summary Accounts.................................................................................................................5-10
Summary Accounts Versus Parent Values ....................................................................................................5-11
Quiz ...............................................................................................................................................................5-12
Parent Values and Rollup Groups..................................................................................................................5-13
Rollup Groups ...............................................................................................................................................5-14
Summary Account Templates........................................................................................................................5-15
Template Values ............................................................................................................................................5-16
Defining Summary Accounts ........................................................................................................................5-17
Summary Account Creation Example ...........................................................................................................5-18
Quiz ...............................................................................................................................................................5-19
Maintain Summary Accounts Overview........................................................................................................5-20
Maintaining Summary Templates..................................................................................................................5-21
Setting Budgetary Control .............................................................................................................................5-23
Incremental Add/Delete Summary Templates Program ................................................................................5-26
Planning Summary Accounts ........................................................................................................................5-28
Determine Summary Account Needs ............................................................................................................5-29
Plan Summary Account Structure .................................................................................................................5-31
Plan Values and Groups ................................................................................................................................5-37
Plan Summary Account Templates................................................................................................................5-39
Quiz ...............................................................................................................................................................5-40
Summary........................................................................................................................................................5-41

iv
Advanced Journal Entries ..............................................................................................................................6-1
Advanced Journal Entries ..............................................................................................................................6-3
Objectives ......................................................................................................................................................6-4
About Recurring Journals ..............................................................................................................................6-5
Recurring Journal Types................................................................................................................................6-6
Creating Recurring Journals ..........................................................................................................................6-7
Recurring Journal Entry Lines.......................................................................................................................6-9
Automatic Offset Example ............................................................................................................................6-10
Formula Recurring Journals ..........................................................................................................................6-11
Generating Recurring Journals ......................................................................................................................6-12
Quiz ...............................................................................................................................................................6-13
MassAllocations Overview............................................................................................................................6-14
MassAllocations versus Recurring Journals ..................................................................................................6-15
Steps to Create MassAllocation Journals.......................................................................................................6-16
Defining MassAllocation Journals ................................................................................................................6-17
Defining MassAllocation Formulas...............................................................................................................6-19

Account Segment Types................................................................................................................................6-21
Target and Offset Accounts ...........................................................................................................................6-22
MassAllocation Journal Example ..................................................................................................................6-23
Rent Expense Example ..................................................................................................................................6-25
Generating Mass Allocation Journals ............................................................................................................6-26
Quiz ...............................................................................................................................................................6-27
AutoAllocations Overview ............................................................................................................................6-28
AutoAllocation Workbench...........................................................................................................................6-29
Business Benefits of AutoAllocation Workbench .........................................................................................6-30
AutoAllocation Set Types..............................................................................................................................6-31
Step-Down AutoAllocations..........................................................................................................................6-32
Parallel AutoAllocations................................................................................................................................6-33
Additional Workbench Functionality ............................................................................................................6-34
AutoAllocation Sets and Oracle Workflow ...................................................................................................6-35
AutoAllocations and Oracle Workflow .........................................................................................................6-36
AutoAllocations Constraints..........................................................................................................................6-37
Submitting AutoAllocation Set Requests ......................................................................................................6-38
Reviewing the Status of AutoAllocations......................................................................................................6-39
Implementation Considerations for AutoAllocation Workbench ..................................................................6-40
Quiz ...............................................................................................................................................................6-41
AutoScheduling Overview.............................................................................................................................6-42
AutoScheduling Process ................................................................................................................................6-43
Financial Schedules .......................................................................................................................................6-44
Scheduling Journals.......................................................................................................................................6-46
Scheduling a Request Using a Financial Schedule ........................................................................................6-47
Periodic Submissions.....................................................................................................................................6-48
Incremental Submissions ...............................................................................................................................6-49
Implementation Considerations for Journal Entry Automations ...................................................................6-50
Quiz ...............................................................................................................................................................6-51
GL Journal Approval Process Overview .......................................................................................................6-52
Journal Approval Features.............................................................................................................................6-53
Journal Approval Process ..............................................................................................................................6-54
Approval Methods .........................................................................................................................................6-59
Journal Approval Prerequisites......................................................................................................................6-60
Setting Up Journal Approval .........................................................................................................................6-61
Quiz ...............................................................................................................................................................6-63
Summary........................................................................................................................................................6-64
Advanced Security...........................................................................................................................................7-1
Advanced Security.........................................................................................................................................7-3
Objectives ......................................................................................................................................................7-4

v
Security with Data Access Sets .....................................................................................................................7-5
Setup and Process ..........................................................................................................................................7-14
Data Access Sets - Setup and Process ...........................................................................................................7-15
Setup - Define Data Access Set .....................................................................................................................7-16
Management Reporting and Security ............................................................................................................7-17
Management Reporting and Security Setup ..................................................................................................7-21
Summary........................................................................................................................................................7-22
Quiz ...............................................................................................................................................................7-23
Financial Budgeting.........................................................................................................................................8-1
Financial Budgeting.......................................................................................................................................8-3
Objectives ......................................................................................................................................................8-4
What Is a Budget?..........................................................................................................................................8-6
What Is an Oracle Budget? ............................................................................................................................8-7
Available Budget Methods ............................................................................................................................8-8
Anatomy of a Budget—Overview .................................................................................................................8-9
Budget Accounting Cycle..............................................................................................................................8-10

Creating a Budget ..........................................................................................................................................8-12
Budget Definition Steps.................................................................................................................................8-13
Budget Hierarchies ........................................................................................................................................8-14
Define a Budget .............................................................................................................................................8-15
Open Budget Year .........................................................................................................................................8-16
Master-Detail Budgets...................................................................................................................................8-17
Budgets Using FSG Reports..........................................................................................................................8-18
Multiple Versions of a Budget.......................................................................................................................8-19
Define Budget Organizations ........................................................................................................................8-20
Quiz ...............................................................................................................................................................8-22
Features of Budget Organizations .................................................................................................................8-23
Budget Organization Window .......................................................................................................................8-24
AutoCopy Budget Organizations...................................................................................................................8-25
Assign Account Ranges.................................................................................................................................8-26
Add/Change Account Ranges........................................................................................................................8-27
Removing Account Ranges ...........................................................................................................................8-28
Delete a Budget Organization........................................................................................................................8-29
Budget Entry Methods...................................................................................................................................8-30
Journals Created?...........................................................................................................................................8-32
Budget Entry Modes......................................................................................................................................8-33
Entering Budget Amounts .............................................................................................................................8-34
Budget Rules .................................................................................................................................................8-35
Budget Rules and Your Calendar ..................................................................................................................8-36
Budget Journals Process ................................................................................................................................8-37
Entering Budget Journals...............................................................................................................................8-38
Budget Journal Features ................................................................................................................................8-39
Quiz ...............................................................................................................................................................8-40
Calculating and Translating Budget Amounts...............................................................................................8-41
Budget Translation Overview........................................................................................................................8-42
Transfer Budget Overview ............................................................................................................................8-43
Transfer Budget Process ................................................................................................................................8-44
Transfer Budget Amounts Example ..............................................................................................................8-45
Transfer Budget Percentage Example............................................................................................................8-46
Transfer with Budgetary Control...................................................................................................................8-47
Finalize Budgets ............................................................................................................................................8-49
Quiz ...............................................................................................................................................................8-50
Correcting Budgets ........................................................................................................................................8-51
Budget Journal Entries?.................................................................................................................................8-52
No Budget Journal Entries? ...........................................................................................................................8-53
Freeze Budgets ..............................................................................................................................................8-54

vi
Budget Inquiry Overview ..............................................................................................................................8-55
Reviewing Variances Between Account Balance Types ...............................................................................8-57
Budget Inquiry Window ................................................................................................................................8-58
Drilldown This Budget ..................................................................................................................................8-59
Query Detail Budgets and Violations Only ...................................................................................................8-60
Two Wizards - Overview ..............................................................................................................................8-61
Budget Wizard: Overview .............................................................................................................................8-62
Budget Wizard Key Benefits .........................................................................................................................8-63
Quiz ...............................................................................................................................................................8-64
Summary........................................................................................................................................................8-65
Multi-Currency................................................................................................................................................9-1
Multi-Currency ..............................................................................................................................................9-3
Objectives ......................................................................................................................................................9-4
Overview of Multi-Currency .........................................................................................................................9-5
Foreign Currency Concepts ...........................................................................................................................9-6

Integrating with Subledgers...........................................................................................................................9-7
Quiz ...............................................................................................................................................................9-10
Defining Currencies.......................................................................................................................................9-11
Conversion Overview ....................................................................................................................................9-13
Conversion Example......................................................................................................................................9-14
Defining Conversion Rate Types...................................................................................................................9-15
Entering Daily Rates......................................................................................................................................9-17
Quiz ...............................................................................................................................................................9-18
Revaluation Overview ...................................................................................................................................9-19
Revaluation Process.......................................................................................................................................9-20
Running Revaluation .....................................................................................................................................9-21
Revaluation Example.....................................................................................................................................9-23
Currency Rates Manager Description............................................................................................................9-24
Currency Rates Manager Description (continued) ........................................................................................9-25
Currency Rates Manager Benefits .................................................................................................................9-26
Using Cross Rate Rules .................................................................................................................................9-27
Quiz ...............................................................................................................................................................9-28
Translation Overview ....................................................................................................................................9-29
Translation.....................................................................................................................................................9-30
Balances and Rates Used for Translation ......................................................................................................9-31
Cumulative Translation Adjustment Account ...............................................................................................9-32
Historical Rates .............................................................................................................................................9-33
Translation with Historical Rates and Amounts ............................................................................................9-34
Translating Owners' Equity Accounts ...........................................................................................................9-36
Secondary Tracking Segment Description.....................................................................................................9-38
Secondary Tracking Segment Description (continued) .................................................................................9-39
Secondary Tracking Segment Benefits..........................................................................................................9-40
How to Activate Tracking by Secondary Segment........................................................................................9-41
Using Secondary Tracking Segment..............................................................................................................9-43
Secondary Tracking Segment Closing and Translation Example.................................................................9-44
Secondary Tracking Segment Revaluation Example....................................................................................9-45
Quiz ...............................................................................................................................................................9-46
Automatically Assigned Rate Types..............................................................................................................9-47
Foreign Currency Listings .............................................................................................................................9-49
Multi-Currency Profile Options.....................................................................................................................9-50
Quiz ...............................................................................................................................................................9-52
Summary........................................................................................................................................................9-53
Consolidations..................................................................................................................................................10-1
Consolidations ...............................................................................................................................................10-3

vii
Objectives ......................................................................................................................................................10-4
Overview of Consolidations ..........................................................................................................................10-5
Consolidation Tools.......................................................................................................................................10-6
Consolidating Multiple Companies Sharing a Single Ledger........................................................................10-7
Consolidating Multiple Companies with Multiple Ledgers...........................................................................10-8
Global Consolidation System (GCS) Features and Benefits .........................................................................10-9
Global Consolidation System (GCS) Features and Benefits (continued) ......................................................10-10
Consolidating Data in Multiple Instances......................................................................................................10-12
Interface Data Transformer (IDT) Description..............................................................................................10-14
Interface Data Transformer (IDT) Benefits ...................................................................................................10-15
Interface Data Transformer (IDT) Rule Set Description ..............................................................................10-16
Interface Data Transformer String Function Example...................................................................................10-17
Interface Data Transformer PL/SQL Function Example ...............................................................................10-18
Interface Data Transformer Lookup Table Example ....................................................................................10-19
Interface Data Transformer Steps ..................................................................................................................10-20
Other Uses for Global Consolidation System................................................................................................10-21

Consolidation Workbench .............................................................................................................................10-23
Consolidation Workbench (continued)..........................................................................................................10-24
Quiz ...............................................................................................................................................................10-26
Using the State Controller .............................................................................................................................10-27
State Controller Button Colors ......................................................................................................................10-29
Defining a Consolidation Mapping ...............................................................................................................10-30
Mapping Rules...............................................................................................................................................10-32
Using Account Mapping Rules......................................................................................................................10-33
Using Segment Mapping Rules .....................................................................................................................10-34
Using Segment Rollup Rules.........................................................................................................................10-35
Defining a Consolidation Mapping Set .........................................................................................................10-37
Consolidation Hierarchy Viewer ...................................................................................................................10-38
Preparing Subsidiary Data .............................................................................................................................10-40
Revaluation Process.......................................................................................................................................10-42
Translation.....................................................................................................................................................10-43
Transferring Subsidiary Data to Parent Ledger .............................................................................................10-44
Consolidation Tracking and Reversals ..........................................................................................................10-46
Posting Consolidation Journal Entries...........................................................................................................10-47
Global Consolidation System Cross Instance Data Transfer .........................................................................10-48
Cross Instance Data Transfer Security...........................................................................................................10-50
Global Consolidation System Parallel Consolidation....................................................................................10-51
Creating Eliminating Entries .........................................................................................................................10-52
Formula-Based Eliminations .........................................................................................................................10-54
Automatic Intercompany Eliminations Program ...........................................................................................10-55
Quiz ...............................................................................................................................................................10-56
Defining an Elimination Set ..........................................................................................................................10-57
Source and Target Account Examples...........................................................................................................10-59
Balancing Options for Eliminations ..............................................................................................................10-60
Allow Out of Balance Journal .......................................................................................................................10-62
Balance with Net Difference .........................................................................................................................10-63
Consolidated Balances Inquiry ......................................................................................................................10-64
Performing Consolidated Balances Inquiry ..................................................................................................10-66
Running Consolidation Reports.....................................................................................................................10-67
Creating Custom Consolidation Reports .......................................................................................................10-69
Quiz ...............................................................................................................................................................10-70
Summary........................................................................................................................................................10-71
Period Close .....................................................................................................................................................11-1
Period Close...................................................................................................................................................11-3
Objectives ......................................................................................................................................................11-4
The Accounting Cycle ...................................................................................................................................11-5

viii
Period Close Checklist...................................................................................................................................11-6
Overview of Importing Journal Entries .........................................................................................................11-7
Journal Import Verification Process ..............................................................................................................11-8
Posting Journals.............................................................................................................................................11-10
Reconciling Subledger Data ..........................................................................................................................11-12
Close the Subledgers .....................................................................................................................................11-13
P2P Close Processes ......................................................................................................................................11-15
Overview of the P2P Period Close ................................................................................................................11-17
Reconcile AP to GL.......................................................................................................................................11-18
Reports...........................................................................................................................................................11-19
Reports (continued) .......................................................................................................................................11-21
Quiz ...............................................................................................................................................................11-24
O2C Period Close Process .............................................................................................................................11-25
Overview of O2C Period Close Process ........................................................................................................11-26
Transferring to General Ledger .....................................................................................................................11-27
O2C Standard Reports ...................................................................................................................................11-28

Reconciling Receivables Transactions, Receipts, and Customer Balances ...................................................11-29
Mapping Receivables Transactions to General Ledger Categories ...............................................................11-31
GL Reconciliation Report for Cash Management .........................................................................................11-32
Project Close Cycle .......................................................................................................................................11-33
Overview of Project Closing Cycles..............................................................................................................11-34
Closing a PA Period ......................................................................................................................................11-37
Period-Closing Exception Reports.................................................................................................................11-38
Foreign Currency Translation........................................................................................................................11-39
Running Revaluation .....................................................................................................................................11-40
Revaluation Example.....................................................................................................................................11-42
Accounting Period Status ..............................................................................................................................11-43
Balance Sheet Close ......................................................................................................................................11-44
Income Statement Close ................................................................................................................................11-46
Historical Rates .............................................................................................................................................11-48
Foreign Currency Translation........................................................................................................................11-49
Quiz ...............................................................................................................................................................11-50
Overview of Consolidations ..........................................................................................................................11-51
Global Consolidation System (GCS) Features and Benefits .........................................................................11-53
Consolidating Ledgers...................................................................................................................................11-55
Reporting Options .........................................................................................................................................11-56
Helpful Closing Reports ................................................................................................................................11-58
Quiz ...............................................................................................................................................................11-60
Summary........................................................................................................................................................11-61
Financial Reporting.........................................................................................................................................12-1
Financial Reporting .......................................................................................................................................12-3
Objectives ......................................................................................................................................................12-4
Objectives (continued)...................................................................................................................................12-5
Reporting Options .........................................................................................................................................12-6
Online Inquiry ...............................................................................................................................................12-7
When to Use Online Inquiry..........................................................................................................................12-9
Standard Reports and Listings .......................................................................................................................12-10
When to Use Standard Reports......................................................................................................................12-11
Financial Statement Generator Features ........................................................................................................12-12
FSG Hierarchical Security.............................................................................................................................12-14
Defining Row Sets.........................................................................................................................................12-15
Define Column Sets.......................................................................................................................................12-16
When to Use FSG Reports.............................................................................................................................12-17
Using Ledger Sets in FSG Reports ................................................................................................................12-18
Business Intelligence Publisher and Templates.............................................................................................12-20

ix
Publishing FSG Reports with BI Publisher ...................................................................................................12-21
Quiz ...............................................................................................................................................................12-23
When To Use Report Manager ......................................................................................................................12-24
Business Intelligence .....................................................................................................................................12-26
When to Use E-Business Intelligence............................................................................................................12-28
Oracle Discoverer ..........................................................................................................................................12-29
When to Use Oracle Discoverer ....................................................................................................................12-30
Preparing Your FSG Report ..........................................................................................................................12-31
Building Basic Reports..................................................................................................................................12-32
Financial Statement Generator ......................................................................................................................12-33
Steps for FSG Financial Reports ...................................................................................................................12-35
Defining Row Sets.........................................................................................................................................12-36
Assigning Accounts.......................................................................................................................................12-38
Defining Calculations in Row Sets................................................................................................................12-40
Reviewing Your Row Set Definitions ...........................................................................................................12-41
Defining Ad Hoc Reports ..............................................................................................................................12-42

Defining Column Sets ...................................................................................................................................12-43
Applying Column Set Relative Headings......................................................................................................12-45
Standard Column Sets ...................................................................................................................................12-47
Reviewing Your Column Set Definitions......................................................................................................12-48
Row Set and Column Overrides ....................................................................................................................12-49
Defining and Requesting Financial Reports ..................................................................................................12-51
Handling Rounding Problems........................................................................................................................12-53
Specifying Control Values.............................................................................................................................12-54
Defining Content Sets....................................................................................................................................12-56
Selecting Display Options .............................................................................................................................12-57
Reviewing Your Content Set Definitions ......................................................................................................12-59
Defining Row Orders.....................................................................................................................................12-60
Ranking Methods...........................................................................................................................................12-61
Order by Ranking - Display Description .......................................................................................................12-62
Order by Description - Display Description ..................................................................................................12-63
Order by Value - Display Value ....................................................................................................................12-64
Order by Value - Display Description ...........................................................................................................12-65
Reviewing Your Row Order Detail Listing Report .......................................................................................12-66
Copying Reports and Components ................................................................................................................12-67
FSG Report Prerequisites ..............................................................................................................................12-68
Enabling FSG Security ..................................................................................................................................12-69
Run FSG Reports from Standard Request Submission..................................................................................12-70
Downloading Financial Reports ....................................................................................................................12-71
Running Financial Report Sets ......................................................................................................................12-72
Different Output Options for FSG Using Business Intelligence Publisher....................................................12-73
FSG Tips and Techniques..............................................................................................................................12-74
Setting FSG Options for General Ledger ......................................................................................................12-75
Working with the Attribute Set Window.......................................................................................................12-77
Modifying Attribute Sets ...............................................................................................................................12-78
Defining Summary Details ............................................................................................................................12-80
Quiz ...............................................................................................................................................................12-81
Summary........................................................................................................................................................12-82
Summary (continued) ....................................................................................................................................12-83
Appendix: Oracle Advanced Global Intercompany System ........................................................................13-1
Appendix: Oracle Advanced Global Intercompany System ..........................................................................13-3
Objectives ......................................................................................................................................................13-4
Intercompany Transactions............................................................................................................................13-5
Intracompany Transactions............................................................................................................................13-6
Importance of Intercompany Transactions ....................................................................................................13-7
Importance of Intercompany Transactions (continued..) ...............................................................................13-8

x
Intercompany and Intracompany Balancing – Overview ..............................................................................13-9
Intercompany and Intracompany Balancing – Benefits .............................................................................13-10
Intercompany Balancing – Define Intercompany Accounts ..........................................................................13-12
Intracompany Balancing Rules......................................................................................................................13-13
Balancing API ...............................................................................................................................................13-14
Setting Up Intercompany and Intracompany Balancing ................................................................................13-15
Intercompany and Intracompany Balancing Process .....................................................................................13-16
Balancing Rules Precedence..........................................................................................................................13-18
Intercompany and Intracompany Balancing Process – Example 1 ................................................................13-19
Intercompany and Intracompany Balancing Process – Example 2 ................................................................13-20
Setting Up Advanced Global Intercompany System .....................................................................................13-21
Define Intercompany Accounts .....................................................................................................................13-22
Enable Intracompany Balancing....................................................................................................................13-24
Set Up Intercompany Accounts .....................................................................................................................13-25
Create Intracompany Balancing Rules ..........................................................................................................13-27
Create Intracompany Balancing Rules – Options Tab...................................................................................13-28

Creating Intercompany Organizations ...........................................................................................................13-30
Setting up Intercompany Security .................................................................................................................13-31
Define Intercompany Transaction Types.......................................................................................................13-32
Controlling Intercompany Periods Statuses...................................................................................................13-34
Defining Intercompany Invoicing Options ....................................................................................................13-35
Intercompany Invoicing Options – Receivables Assignments Page..............................................................13-36
Intercompany Invoicing Options – Customer and Supplier Associations Page.............................................13-37
Intercompany Invoicing Options – Trading Partners Page............................................................................13-39
Specifying Intercompany System Options ....................................................................................................13-40
Specifying Intercompany System Options (continued…) .............................................................................13-41
Quiz ...............................................................................................................................................................13-43
Setting up Approvals Management................................................................................................................13-44
Setting Up the Default Accounts Rules in Subledger Accounting ................................................................13-45
Setting Up the Default Accounts Rules in Subledger Accounting (continued…) .........................................13-46
Quiz ...............................................................................................................................................................13-48
Intercompany Transactions............................................................................................................................13-49
Intercompany Home Page..............................................................................................................................13-50
Intercompany Transactions Page ...................................................................................................................13-51
Intercompany Transactions – Outbound........................................................................................................13-52
Intercompany Transactions – Outbound (continued…).................................................................................13-54
Intercompany Transactions – Inbound ..........................................................................................................13-56
Intercompany Transactions – Workflow Notifications..................................................................................13-57
Intercompany Transactions – Transfer Transactions .....................................................................................13-58
Quiz ...............................................................................................................................................................13-59
Transferring Transactions to General Ledger ................................................................................................13-60
Intercompany Transactions – Transfer Transactions to Subledgers (Online Mode)......................................13-62
Intercompany Transactions – Transfer Transactions to Subledgers (Batch Mode) .......................................13-64
Intercompany Transactions – Reverse Transactions......................................................................................13-66
Importing Intercompany Transactions Using Open Interface........................................................................13-68
Importing Intercompany Transactions Using WebADI.................................................................................13-70
Intercompany Reporting ................................................................................................................................13-72
Intercompany Transaction Summary Report .................................................................................................13-73
Intercompany Account Details Report ..........................................................................................................13-75
Intercompany Reconciliation Report .............................................................................................................13-77
Summary........................................................................................................................................................13-78

xi
Preface
Profile
Prerequisites
• Navigating Oracle Applications
How This Course Is Organized
Oracle General Ledger Management Fundamentals is an instructor-led course featuring lecture

and hands-on exercises. Online demonstrations and written practice sessions reinforce the
concepts and skills introduced.

xi ii
Related Publications
• System release bulletins
• Installation and user’s guides
• Read-me files
• International Oracle User’s Group (IOUG) articles
• Oracle Magazine

xiv
Typographic Conventions
Typographic Conventions in Text
Convention Element Example
Bold italic Glossary term (if The algorithm inserts the new key.
there is a glossary)
Caps and Buttons, Click the Executable button.
lowercase check boxes, Select the Can’t Delete Card check box.
triggers, Assign a When-Validate-Item trigger to the ORD block.
windows Open the Master Schedule window.
Courier new, Code output, Code output: debug.set (‘I”, 300);
case sensitive directory names, Directory: bin (DOS), $FMHOME (UNIX)

(default is filenames, Filename: Locate the init.ora file.
lowercase) passwords, Password: User tiger as your password.
pathnames, Pathname: Open c:\my_docs\projects
URLs, URL: Go to http://www.oracle.com
user input,
User input: Enter 300
usernames
Username: Log on as scott
Initial cap Graphics labels Customer address (but Oracle Payables)
(unless the term is a
proper noun)
Italic Emphasized words Do not save changes to the database.
and phrases, For further information, see Oracle7 Server SQL Language
titles of books and Reference Manual.
courses, Enter user_id@us.oracle.com, where user_id is the
variables name of the user.
Quotation Interface elements Select “Include a reusable module component” and click Finish.
marks with long names
that have only This subject is covered in Unit II, Lesson 3, “Working with
initial caps; Objects.”
lesson and chapter
titles in cross-
references
Uppercase SQL column Use the SELECT command to view information stored in the
names, commands, LAST_NAME
functions, schemas, column of the EMP table.
table names
Arrow Menu paths Select File > Save.
Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:
[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

xv
Typographic Conventions in Code
Convention Element Example
Caps and Oracle Forms When-Validate-Item
lowercase triggers
Lowercase Column names, SELECT last_name
table names FROM s_emp;
Passwords DROP USER scott

IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (‘prod_pie_layer’))
Lowercase Syntax variables CREATE ROLE role

italic
Uppercase SQL commands and SELECT userid
functions FROM emp;
Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
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.
Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab

xv i
Typographical Conventions in Oracle Application 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.

xv ii

xvi ii
Financial Budgeting
Chapter 8
Copyright © Oracle Corporation, 2010. All rights reserved.
Financial Budgeting
Chapter 8 - Page 1
Financial Budgeting
Chapter 8 - Page 2
Financial Budgeting
Financial Budgeting
Chapter 8 - Page 3
Objectives
Financial Budgeting
Chapter 8 - Page 4
Objectives
Financial Budgeting
Chapter 8 - Page 5
What Is a Budget?

What Is a Budget?
Budgets help you manage your business by projecting revenues and expenses:
• Estimate account balances for a specified range of periods
• Compare estimated amounts with actual balances and determine variances
Financial Budgeting
Chapter 8 - Page 6
What Is an Oracle Budget?

What Is an Oracle Budget?
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.
Financial Budgeting
Chapter 8 - Page 7
Available Budget Methods

Available Budget Methods
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 company's organization and to
control user access to budget information.
• Structure your budget into an unlimited number of levels.
• Create master-detail budgets.
• The following applications can be used:
- Manual budgets created in the Oracle General Ledger Application
- Uploaded budgets created in the Application Desktop Integrator's Budget Wizard
- Uploaded budgets from non Oracle systems or applications
Financial Budgeting
Chapter 8 - Page 8
Anatomy of a Budget—Overview
Financial Budgeting
Chapter 8 - Page 9
Budget Accounting Cycle

Budget Accounting Cycle
Defining Budgets and Budget Organizations
• Define budget periods, up to a maximum of sixty.
• Define budget organizations at any level: cost center, division, sector, and so on. Control
access to budget data by assigning passwords to those organizations. Create subsequent
budget organizations quickly by copying existing budget organizations.
Entering Budgets
• Enter budget data using standard entry, formula-based entry, and automatic allocations.
• Enter budget amounts using annual spread, fixed amounts, and calculated methods.
• Enter budget amounts using either an individual account or a worksheet-type screen
layout.
• Transfer budget amounts from one account to another. You can transfer a fixed amount or
a percentage; you can transfer multiple periods at one time.
Reviewing and Correcting Budgets
• Review budget amounts by period and account combination. Check for budget variances
and violations.
Financial Budgeting
Chapter 8 - Page 10
• Perform online review of master/detail budgets. Compare summary balances between
master/detail budgets.
Freezing Budgets
• Freeze budgets to prevent further update to completed budgets.
Reporting on Budgets
• Run standard or customized budget reports.
Financial Budgeting
Chapter 8 - Page 11
Creating a Budget

Creating a Budget
1. In Oracle General Ledger, you create a budget by designating Amounts to a combination
of an Account and a Period.
2. Use the Define Budget window to specify the accounting periods that you want to include
in your budget.
3. Use the Define Budget Organization window to specify accounts by defining a budget
organization, then assigning appropriate accounts to that organization.
Financial Budgeting
Chapter 8 - Page 12
Budget Definition Steps

Budget Definition Steps
1. Plan how to set up the budgets, e.g. top-down, bottom-up, middle-out.
2. Other decisions include whether or not you need Budgetary control and encumbrances,
multiple versions of a budget, multiple currency budgeting.
3. Next, create budgets. Define master and detail budgets.
4. Create budget organizations that contain unique ranges of accounts for each unit that
requires a budget.
Financial Budgeting
Chapter 8 - Page 13
Budget Hierarchies

Budget Hierarchies
You can use the following methods to structure budgets:
• Top-down budgeting: Enter budget amounts at the top level, then distribute to lower
levels.
• Bottom-up budgeting: Enter budget amounts at lowest level, then inquire and report on
upper levels.
• Middle-out budgeting: Enter budget amounts at lowest level, then inquire and report on
upper levels.
Financial Budgeting
Chapter 8 - Page 14
Define a Budget

Define a Budget
• Enter the budget Name and Description.
• Enter the status of your budget.
- Open: The budget is available for update and budget entry.
- Current: The budget is open, and is the default budget for most budgeting and inquiry
forms.
- Frozen: The budget is unavailable for update or budget entry.
• (Optional) Choose to create journals to maintain an audit trail.
• Enter the First and Last periods of your budget. You can enter a range of up to 60 periods.
Financial Budgeting
Chapter 8 - Page 15
Open Budget Year
Financial Budgeting
Chapter 8 - Page 16
Master-Detail Budgets

Master-Detail Budgets
Budgeting hierarchies enable you to control budgeting authority, and easily identify budgets
that exceed control limits. They also allow you to perform top down budgeting and identify
where the discrepancies are.
Define master budgets using the Define Budget window.
• Enter a name and period range, then open the budget year.
• Master budget organizations:
- The master budget organization should include only the accounts that represent
higher-level budgeting.
- If you have master budgets at different hierarchy levels, define a separate
organization for each level of master budgets.
Financial Budgeting
Chapter 8 - Page 17
Budgets Using FSG Reports

Budgets Using FSG Reports
Note: You cannot reference reporting hierarchies in formulas, allocations, or online inquiries.
Financial Budgeting
Chapter 8 - Page 18
Multiple Versions of a Budget
Financial Budgeting
Chapter 8 - Page 19
Define Budget Organizations

Define Budget Organizations
• Budgeting hierarchies enable you to control budgeting authority, and easily identify
budgets that exceed control limits. They also allow you to perform top down budgeting
and identify where the discrepancies are.
• 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 organizations: If you have one or more budget organizations defined
already, then you can create a budget organization named ALL that automatically
includes all accounts that are assigned to any budget organization. To do this, enter
ALL as the budget organization name.
- Restrict access: Definition access sets are an optional security feature that allows you
to control access to your General Ledger definitions. For example, you can prevent
certain users from viewing, making changes, or using your Budget Organization for
budget entry. To apply a definition access set to enable security to your Budget
Financial Budgeting
Chapter 8 - Page 20
Organization, select the Enable Security checkbox. If you do not enable security, all
users will be able to use, view, modify, and delete your Budget Organization.
Note: Definition Access Security is in addition to the
organization security password.
Financial Budgeting
Chapter 8 - Page 21
Quiz

Answers: 3
Quiz Specifications
• This quiz should be polled after slide 17.
• The correct answer is the Frozen budget status indicates the budget is unavailable for
update or budget entry.
Financial Budgeting
Chapter 8 - Page 22
Features of Budget Organizations

Features of Budget Organizations
• Inquire and report on data for a budget organization.
• Freeze the budget for a budget organization, while still working on the data for other
budget organizations.
• Set up security for a budget organization to restrict access.
• Set up an ALL budget organization to include all account ranges.
Financial Budgeting
Chapter 8 - Page 23
Budget Organization Window

Budget Organization Window
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.
• You can run this program periodically to remove disabled accounts or add new account
combinations.
Financial Budgeting
Chapter 8 - Page 24
AutoCopy Budget Organizations

AutoCopy Budget Organizations
• Open the Define Budget Organization window, and select the budget organization you
want to copy from.
• Enter Segment Overrides to select the account segment values you want to change for the
new budget organization.
- You must designate at least one segment override because you cannot assign identical
accounts to multiple budget organizations.
• Enter the Override Segment Value next to the segments you wish to override.
- For example, if you want to copy the accounts in CC #100 (the source budget
organization) to CC #300, enter the value 300 as the CC segment override. Oracle
General Ledger will then copy all of the account ranges for cost center #100, but will
change all CC values to 300.
- If you specify a segment override for a dependent segment, you must enter an
override segment for the segments on which it depends.
• When you save your work, a concurrent process is automatically submitted.
Financial Budgeting
Chapter 8 - Page 25
Assign Account Ranges

Assign Account Ranges
• Enter the Account Ranges: Ranges cannot overlap other account ranges with the same
currency and type for any budget organization in that ledger.
• Select the budget entry type for each range.
- Use "Entered" to enter budget amounts and journals, upload budgets, or transfer
budget amounts.
- Use "Calculated" to enter budget formulas or use MassBudget journals to enter
budget amounts.
• Enter the Currency for each account range.
- If you selected the "Entered" budget entry type, you can enter any enabled currency.
- If you selected the "Calculated" budget entry type, you must enter the functional
currency for your ledger or STAT.
• Save your work. A concurrent process is automatically submitted to search the GL
combinations table for existing code combinations within the range specified. Wait for the
process to finish before entering specific accounts.
Financial Budgeting
Chapter 8 - Page 26
Add/Change Account Ranges

Add/Change Account Ranges
• Navigate to the Range Assignments window.
• Change the account ranges.
- Specific accounts must be within the designated account range.
- Existing combinations within the range will be automatically added to an
organization.
- New combinations must be added in the Range Assignments window.
• When you save your work, the Maintain Budget Organization program is run.
Financial Budgeting
Chapter 8 - Page 27
Removing Account Ranges

Removing Account Ranges
• Navigate to the Range Assignments window.
- To remove an account temporarily, delete its row. The range will still exist for
temporarily deleted accounts. It will be recreated when the Maintain Budget
Organization program is run.
- To delete accounts permanently, open the Account Ranges window and delete the
range that includes the accounts you want to delete.
• When you save your work, the Maintain Budget Organization program is run.
Financial Budgeting
Chapter 8 - Page 28
Delete a Budget Organization
Financial Budgeting
Chapter 8 - Page 29
Budget Entry Methods

Budget Entry Methods
Enter Budget Amounts
• Use a quick, manual approach for adjustments; use budget rules to base amounts on prior
actuals or budgets.
Enter Budget Journals
• Create an audit trail of amounts entered.
Use the Desktop Integrator Budget Wizard
• Create a new budget in an Excel spreadsheet or download an existing budget to an Excel
spreadsheet for modification, then upload the revised budget to Oracle General Ledger.
Upload Budgets
• Upload budget data from an external source.
Create Budget Formulas
• Create standard or formula recurring entries.
• Use for complex allocations.
Create MassBudget Journals
Financial Budgeting
Chapter 8 - Page 30
• Quickly create budget allocation entries from a single formula to match your actual
allocations.
Transfer Budget Amounts
• Transfer fixed amounts or a portion of a budget balance from one account to another.
Financial Budgeting
Chapter 8 - Page 31
Journals Created?

Journals Created?
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 ledger, 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 Integrator's Journal Wizard.
Financial Budgeting
Chapter 8 - Page 32
Budget Entry Modes

Budget Entry Modes
Enter budget amounts to replace any existing budget balances.
You can:
• Use Single Row Mode to enter budget amounts for each account in the budget
organization one-by-one.
• Use Worksheet Mode to enter budgets for several accounts at once.
• Use budget rules to distribute budget amounts for all periods.
• Enter statistical budget amounts.
Financial Budgeting
Chapter 8 - Page 33
Entering Budget Amounts

Entering Budget Amounts
You can apply budget rules for up to 13 periods at a time; if your calendar contains more than
13 periods, each year is automatically divided into several period ranges.
Financial Budgeting
Chapter 8 - Page 34
Budget Rules

Budget Rules
• Divide Evenly: Evenly distribute the amount you enter across all accounting periods. You
can set rounding options to handle any undistributed amount resulting from rounding
calculations.
• Repeat Per period: Repeat the amount you enter in each accounting period.
• Prior Year Budget Monetary* and Prior Year Budget Statistical*: Multiply the amount
you enter by the prior year budget balance.
• Current Year Budget Monetary* and Current Year Budget Statistical*: Multiply the
amount you enter by the current year budget balance.
• Prior Year Actual Monetary* and Current Year Budget Statistical*: Multiply the amount
you enter by the prior year actual balance.
• Current Year Actual Monetary* and Current Year Actual Statistical*: Multiply the amount
you enter by the current year actual balance.
Financial Budgeting
Chapter 8 - Page 35
Budget Rules and Your Calendar

Budget Rules and Your Calendar
If your calendar uses 12 or 13 periods per year, you can set rounding options to handle any
undistributed amount resulting from rounding calculations. Use a 4/5/5, a 4/5/4, or a 5/4/4
configuration for spreading amounts throughout each quarter.
Set rounding options to handle differences resulting from amounts that cannot be divided
evenly.
You can specify these rounding options:
• Ignore rounding errors
• Post the rounding differences to a specific budget period
Financial Budgeting
Chapter 8 - Page 36
Budget Journals Process

Budget Journals Process
• Enter accounts and amounts in budget journals.
• Run Journal Import to create unposted journals based on the accounts and amounts you
entered.
• Post the journals created to update budget balances.
Financial Budgeting
Chapter 8 - Page 37
Entering Budget Journals
Financial Budgeting
Chapter 8 - Page 38
Budget Journal Features

Budget Journal Features
• Use budget rules to calculate budget journal amounts.
• Enter statistical budget journals for accounts that are assigned a currency of STAT.
• Review and change your budget journals before posting them.
• Post the journal amounts to update existing budget balances
Financial Budgeting
Chapter 8 - Page 39
Quiz

Answers: 2
Quiz Specifications
• The correct answer is the Oracle General Ledger does create journal entries when you
enter budget journals.
Financial Budgeting
Chapter 8 - Page 40
Calculating and Translating Budget Amounts

Calculating and Translating Budget Amounts
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.
Financial Budgeting
Chapter 8 - Page 41
Budget Translation Overview

Budget Translation Overview
(N) Currency > Translation
Use the Translate Balances window to translate your budget account balances from your
functional currency to another currency.
• Enter the Source budget whose account balances you want to translate
• Ensure that the budget year containing the period you are translating is open in your
source budget
• Enter the Target budget that you want to calculate translated account balances for (you can
translate one source into one or more target budgets)
• You should not translate more than one source budget into the same target budget for the
same period and currency, because each source budget translation overrides the balances
in the target budget.
• If you use reporting currencies, budget amounts and budget journals are not converted to
the reporting currencies.
Financial Budgeting
Chapter 8 - Page 42
Transfer Budget Overview
Financial Budgeting
Chapter 8 - Page 43
Transfer Budget Process

Transfer Budget Process
• You can transfer budget amounts from one account to another within any budget
• The accounts may belong to the same or different budget organizations
• You can transfer fixed amounts or a percentage of an account's balance
• When you leave the Budget Transfer window, Oracle General Ledger automatically runs
Journal Import to create an unposted budget journal batch
• To update your budget balances, post the budget journal batch
Financial Budgeting
Chapter 8 - Page 44
Transfer Budget Amounts Example
Financial Budgeting
Chapter 8 - Page 45
Transfer Budget Percentage Example
Financial Budgeting
Chapter 8 - Page 46
Transfer with Budgetary Control

Transfer with Budgetary Control
• Budgetary control refers to the process of recording budget data and tracking encumbrance
and actual data against a budget. You can track budget or encumbrance data using one of
two methods: encumbrance accounting or budgetary accounts.
• Funds checking is the feature of budgetary control that helps prevent overspending
budgets by verifying available funds online before processing a transaction. With funds
checking, you can verify transactions online against available budget, immediately update
funds available for approved transactions, and control expenditures at the detail or
summary level.
• If you use funds checking, you must use either encumbrance accounting or the budgetary
accounts method of tracking budget data.
• Additional Steps with Budgetary Control
- Choose the Check Funds button to verify available funds for your budget journal
batch.
- Choose the Reserve Funds button to reserve funds for your budget journal batch.
- Review the Funds Status for your batch:
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Chapter 8 - Page 47
- Choose View Results to review the budgetary control transactions resulting from your
funds action request.
- Leave the window. General Ledger automatically runs the Create Journals program to
create an approved budget journal after a successful funds reservation.
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Finalize Budgets
Financial Budgeting
Chapter 8 - Page 49
Quiz

Answers: 4
Quiz Specifications
• The correct answer is the steps required for finalizing budgets are review budget
information, correct budget information, and freeze budgets.
Financial Budgeting
Chapter 8 - Page 50
Correcting Budgets
Financial Budgeting
Chapter 8 - Page 51
Budget Journal Entries?
Financial Budgeting
Chapter 8 - Page 52
No Budget Journal Entries?
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Chapter 8 - Page 53
Freeze Budgets

Freeze Budgets
Use the Freeze Budget window to freeze a budget, budget organization, budget formula batch,
or range of budget account combinations to prevent accidental or unauthorized changes
• You can also freeze or unfreeze an entire budget by changing the budget status in the
Define Budget window
• You can unfreeze any budget or budget element that is currently frozen
• When you freeze budget organizations, you cannot budget to the account combinations
belonging to that budget organization for the budget specified.
• When you freeze formulas or ranges of account combinations, you cannot use those
formulas or budget to those account combinations for the budget specified.
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Chapter 8 - Page 54
Budget Inquiry Overview

Budget Inquiry Overview
You can review your budget data online with these two methods:
• Account Inquiry—Use this method when you want to view specific account balances
• Budget Inquiry—Use this method when you want to review master and detail budgets
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Performing Account Inquiry

(N) Inquiry > Account
Use the account inquiry feature to view actual, budget, and encumbrance account balances for
a specific period or periods in either entered or balance level reporting currencies.
You can select one of three buttons to access the type of account information you want to view:
• Show Balances: Displays PTD and YTD account balances by period for both detail and
summary accounts.
• Show Journal Details: Lists all the journal batches and entries that affect the account
balance. From here you can drill down to the full journal entry and subledger transaction.
• Show Variance: Displays actual vs. budget or encumbrance amounts and the variance for
PTD, QTD, YTD, and PJTD (project-to-date) time periods. Variance goes from Summary
to Detail to Journal Details.
Note: The Account Inquiry window displays balances from posted budget journal entries and
entered budget amounts. To get the most up-to-date account balance information, be sure all
budget journal entries are posted. Drill down from an account inquiry to review your budget
journal detail (only if budget amount was entered using a budget journal).
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Reviewing Variances Between Account Balance Types

Reviewing Variances Between Account Balance Types
(N) Inquiry > Account > (B) Show Variance
• You can compare balances between any primary and secondary account type, such as:
- Actual and budget
- Budget and budget
- Actual and encumbrance
• You must specify a primary and secondary balance type and select a budget or
encumbrance type in order to compare balance amounts.
Note: You cannot include variances in your Account Inquiry if you choose to inquire on all
currencies.
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Chapter 8 - Page 57
Budget Inquiry Window

Budget Inquiry Window
When you perform an inquiry on a master budget, you can choose any of these Inquiry Types:
• Drilldown this Budget
- View master budgets, then drill down to the detail accounts
• Query Detail Budgets
- View master and detail budgets together, then drill down to the detail accounts
• Query Budget Violations Only
- View only those periods for which the sum of the detail budget balances exceeds the
master budget balance
• When you perform an inquiry on a detail budget, you can choose only the Drilldown this
Budget Inquiry Type, and then drill down to the detail accounts.
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Chapter 8 - Page 58
Drilldown This Budget

Drilldown This Budget
• Must enter Summary Accounts or use Summary account templates to start finding
balances.
• Can be done on all budgets.
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Query Detail Budgets and Violations Only

Query Detail Budgets and Violations Only
• Query Detail Budgets only works on Master budgets
• Query Budget Violations Only
- Only works on Master budgets
- Review only those periods for which the sum of the detail budget balances exceeds
the master budget balance.
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Chapter 8 - Page 60
Two Wizards - Overview

Two Wizards - Overview
Web ADI includes the Budget Wizard and Journal Wizard to simplify your budgeting work
with Oracle General Ledger.
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Chapter 8 - Page 61
Budget Wizard: Overview

Budget Wizard: Overview
Use the Budget Wizard within Web ADI to automatically build a budget spreadsheet based on
the budgets and budget organizations you set up within Oracle General Ledger.
The Budget Wizard provides an Excel spreadsheet-based budget entry screen which facilitates
simple data entry and modeling in a disconnected environment.
With the Budget Wizard, you can
• Download existing budget balances from Oracle General Ledger or create a new budget.
• Enter your new budget balances manually, use budget rules, or use formulas and models.
• Automatically graph your budgets and compare budget and actual balances using a variety
of graph styles.
• Save a budget spreadsheet on your PC and work on it at any time, including using it for
future years.
When you are satisfied with your budget, you can automatically upload your new budget
balances into Oracle General Ledger.
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Chapter 8 - Page 62
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 8 - Page 63
Quiz

Answers: 1
Quiz Specifications
• The correct answer is you can compare balances between any primary and secondary
account type.
Financial Budgeting
Chapter 8 - Page 64
Summary
Financial Budgeting
Chapter 8 - Page 65
Summary
Financial Budgeting
Chapter 8 - Page 66
Multi-Currency
Chapter 9
Multi-Currency
Chapter 9 - Page 1
Multi-Currency
Chapter 9 - Page 2
Multi-Currency
Multi-Currency
Chapter 9 - Page 3
Objectives
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Chapter 9 - Page 4
Overview of Multi-Currency

Overview of Multi-Currency
Oracle General Ledger has full multi-currency functionality to meet the needs of global
companies in a global economy. In line with ISO Standard #4217, Oracle General Ledger
comes with all ISO currencies predefined. Simply enable the currencies you need to begin
using the Multi-Currency Accounting features.
Using Multi-Currency Accounting
• Enter transactions and report in any currency.
• Enter exchange rates online or automatically.
• Perform currency conversion online and in real time.
• Perform remeasurement and revaluation.
• Calculate realized and unrealized gains and losses.
• Translate actual and budget balances.
• Use daily, period end, average, and historical rates.
• Comply with Generally Accepted Accounting Principles.
• Review entered, converted, and translated balances.
• Produce foreign currency financial statements and reports.
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Chapter 9 - Page 5
Foreign Currency Concepts

Foreign Currency Concepts
Conversion
• Conversion refers to foreign currency transactions that are immediately converted at the
time of entry to the functional currency of the ledger in which the transaction takes place.
Revaluation
• Revaluation adjusts asset or liability accounts that may be materially 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.
Translation
• Translation restates an entire ledger or balances for a company from the functional
currency to a foreign currency.
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Chapter 9 - Page 6
Integrating with Subledgers

Integrating with Subledgers
Many foreign-denominated transactions are originally entered and then settled in feeder
systems such as Oracle Payables and Oracle Receivables.
Oracle subledgers share the same General Ledger rate table.
Different conversion rate types provide each subledger the opportunity to convert transactions
at different rates daily.
It is important to implement procedures for entering and maintaining exchange rates to avoid
inconsistencies.
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Chapter 9 - Page 7
Reporting Currencies

If you only need a different currency representation of the primary or secondary ledgers, assign
reporting currencies to them. Unlike secondary ledgers, reporting currencies must share the
same chart of accounts, accounting calendar/period type combination, subledger accounting
method, and ledger processing options as their source ledger.
As a general rule, always use reporting currencies instead of secondary ledgers if you only
need to maintain an accounting representation that differs in currency alone.
You can assign reporting currencies to both primary and secondary ledgers. Reporting
currencies are maintained at one of the following currency conversion levels:
• The subledger level reporting currency maintains a complete currency representation of
your subledger journals, General Ledger journals entries, and balances.
- When using the subledger level reporting currency, define currency conversion rules.
These rules provide instructions on how to convert subledger and general ledger data
to one or more subledger level reporting currencies.
- Subledger level reporting currencies are maintained using both Subledger Accounting
and the General Ledger Posting program to create the necessary subledger journals
and General Ledger journals in both the primary and secondary ledgers
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Chapter 9 - Page 8
simultaneously. Subledger Accounting creates the journal entries from subledger
transactions if the subledger integrates with Subledger Accounting. General Ledger
Posting creates the journal entries for all other transactions that do not integrate with
Subledger Accounting, including manual journal entries.
• The journal level reporting currency maintains General Ledger journal entries and
balances in another currency representation.
- Journal level reporting currencies are maintained using the General Ledger Posting
program. Every time a journal is posted in the source ledger, such as the primary or
secondary ledger, the journal is automatically converted to the respective currency of
the journal level reporting currency.
• The balance level reporting currency only maintains balances in another currency.
- It maintains the translated balances of the source ledger. Every time general ledger
translation is run in the source ledger, such as the primary or secondary ledger, the

translated balances are reflected in the balance level reporting currency.
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Chapter 9 - Page 9
Quiz

Answers: 2
Quiz Specifications
• The correct answer is that if you need a different currency representation of the primary or
secondary ledgers, you can assign reporting currencies to them. Unlike secondary ledgers,
reporting currencies must share the same chart of accounts, accounting calendar/period
type combination, subledger accounting method, and ledger processing options as their
source ledger
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Chapter 9 - Page 10
Defining Currencies

Defining Currencies
Fields in the Currencies Window
Code, Name, and Description:
• Enter your own unique identifiers.
Issuing Territory:
• (Optional) Select among predefined country names (per ISO Standard #3166).
Symbol:
• (Optional) Enter the symbol for the currency.
Precision:
• Designate the number of digits to the right of the decimal point used in regular currency
transactions.
Extended Precision:
• Designate the number of digits to the right of the decimal point used in calculations. You
must specify a number greater than or equal to the Precision.
Minimum Accountable Unit:
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Chapter 9 - Page 11
• (Optional) Enter the smallest denomination used.
Currency Derivation Fields:
• (Optional) This field is used for defining the national currency and Euro relationship and
is only applicable for new EU member states during their transition period.
Effective Dates:
• (Optional) Specify a date range for your currency. You can only enter transactions
denominated in this currency for dates that fall within the range.
Enable:
• Select the Enable check box to use the currency.
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Chapter 9 - Page 12
Conversion Overview

Conversion Overview
You can enter foreign currency journal entries directly in the Enter Journals window or you can
enter foreign currency journals in a Microsoft Excel worksheet created in the Journal Wizard
and take advantage of the spreadsheet's functionality.
If you specify a foreign currency, conversion date, and conversion rate type when entering
journals, General Ledger automatically displays the daily rate. Daily rates are defined to
convert the entered foreign currency to your functional currency for the specified date and rate
type. General Ledger calculates functional debit and credit equivalents by multiplying the
debits and credits entered in a foreign currency by the retrieved daily rate.
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Chapter 9 - Page 13
Conversion Example

Conversion Example
Conversion uses a daily rate that you enter at the time of journal entry or that is derived from
the rates that have been entered in the Daily Rates table in Oracle General Ledger.
When you post foreign currency transactions, Oracle General Ledger maintains a separate
balance for accounts entered in a foreign currency and their equivalent balances in the
functional currency.
The conversion functionality allows you to:
• Segregate portions of an account balance by the different currencies used in each
transaction.
• Specifically identify the source currencies of transactions, a key component of performing
proper revaluation of the balance.
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Chapter 9 - Page 14
Defining Conversion Rate Types

Defining Conversion Rate Types
Use conversion rate types to assign a rate when you convert foreign currency journal amounts
to functional currency equivalents. When you enter a foreign currency journal, General Ledger
displays the predefined exchange rate based on the currency, rate type (unless you are using the
User rate type where you must enter the rate), and conversion date you enter.
General Ledger Predefined Rate Types
• Spot:
- An exchange rate based on the rate for a specific date. It applies to the immediate
delivery of a currency.
• Corporate:
- An exchange rate that standardize rates for your company. This rate is generally a
standard market rate determined by senior financial management for use throughout
the organization.
• User:
- An exchange rate that you enter during foreign currency journal entry.
• EMU Fixed:
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Chapter 9 - Page 15
- An exchange rate that is used by countries joining the EU during the transition period
to the Euro currency. For more information, refer to Euro Currency in the Oracle
General Ledger User Guide.
• User Defined:
- A rate type defined by your company to meet special needs.
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Chapter 9 - Page 16
Entering Daily Rates

Entering Daily Rates
After you define your conversion rate types, you can enter daily rates. You can maintain daily
conversion rates between any two currencies that you have enabled in your applications
instance, regardless of your functional currency. These rates are also available when entering
cross-currency transactions in Payables and Receivables. In addition, you can enter inverse
rates independently rather than have General Ledger calculate them from the entered rate.
Rates Shared Across Ledgers
Daily conversion rates are now shared across all ledgers within an Applications instance. You
no longer need to maintain the same rates in multiple ledgers.
Loading Daily Rates Automatically
General Ledger provides the GL_DAILY_RATES_INTERFACE table to use to automatically
insert, update, or delete daily rates in the GL_DAILY_RATES table. General Ledger validates
the rows in the interface table before making changes in the GL_DAILY_RATES table.
Warning: Always use the interface table to load your daily rates into General Ledger. Do not
load rates directly into the GL_DAILY_RATES table. This can corrupt your daily rates data.
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Chapter 9 - Page 17
Quiz

Answers: 2
Quiz Specifications
• The correct answer is there are three key concepts in Oracle General Ledger that pertain to
foreign currency: conversion, revaluation, and translation.
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Chapter 9 - Page 18
Revaluation Overview

Revaluation Overview
Revalue balance sheet account balances denominated in a foreign currency to reflect the
change in the foreign currency rate from the date a transaction is entered and the reporting date
in compliance with SFAS 52 (U.S.).
Revaluation Example
• In this example, the value of the receivable in Euro never changed. The original receivable
transaction was entered in Euro and converted to 550 U.S. Dollars.
• Upon revaluation, the exchange rate changed. The original receivable still stands at 1000
Euro. The converted amount changes to 600 U.S. Dollars. The difference, 50 U.S. Dollars
is posted to the Unrealized Gain/Loss Account.
• At the beginning of the following period, the revaluation journal is reversed.
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Chapter 9 - Page 19
Revaluation Process

Revaluation Process
Finds defined accounts in which all or a portion of the balance is derived from foreign currency
transactions.
Revalues the foreign currency portion of the account balance using the Revaluation Rate from
the Daily Rates table. The Revaluation Rate is the inverse of the Period End Rate (expressed as
1/Period End Rate).
Calculates the difference between the current cumulative functional balance of these foreign
transactions and the revalued functional currency balance calculated using the Revaluation
Rate.
Creates an unposted journal batch to adjust the account balance to the new revalued balance.
The offset account is the Unrealized Gain/Loss account specified when you run the revaluation
process.
Note: After the revaluation process is completed, post the journal entry and then, at the
beginning of the next period, reverse the journal.
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Chapter 9 - Page 20
Running Revaluation

Running Revaluation
Prerequisites
Before you run revaluation, you should do the following:
• Define an unrealized gain/loss account.
• Define a period end rate type and create a period end rate for each currency if required.
Running Revaluation
• Revaluation is run at the end of each accounting period as part of the close process to
revalue balance sheet accounts that are denominated in a foreign currency in accordance
with SFAS 52 (US). The journal is then reversed at the beginning of the next period. The
process is repeated until the transactions are settled. The Realized Gain/Loss is recorded in
the appropriate subledger (Payables or Receivables) and transferred to the General Ledger
at the time the obligation is settled.
Currencies
• Revaluation can be run for a single foreign currency or for All currencies. When you run
revaluation, General Ledger creates a revaluation batch containing a separate journal entry
for each revalued foreign currency. Note that General Ledger creates the revaluation
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Chapter 9 - Page 21
adjustments in your functional currency. General Ledger will automatically define the
reversal period for your Revaluation Journals if the Category has been set to automatically
reverse.
Average Balance Ledgers
• When you revalue balances in an average balance ledger, General Ledger only revalues
standard balances. When you post the revaluation journal entries to update your standard
balances, the system recalculates your average balances automatically. For more
information, refer to Average Balance Processing in the Oracle General Ledger User
Guide or the General Ledger Financial Management Advanced Topic Average Balance
Processing.
• Under the SFAS 52 remeasurement (the temporal method translation), it is necessary to
remeasure foreign currency gains or losses recorded in your primary ledger currency and

recorded them in the reporting ledger currency.
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Chapter 9 - Page 22
Revaluation Example

Revaluation Example
At the end of the accounting period, the revaluation process creates an unposted journal to
record the change in the converted balances to the Unrealized Gain/Loss Account. The journal
is posted, and then reversed at the beginning of the next reporting period.
In this example:
• The original journal amount entered in Euro remains the same.
• At period end, the exchange rate has changed to .81 US Dollars.
• The receivable is still 10,000 Euro, but is now $8,100 US Dollars.
• The offset of $100 US Dollars is recorded in the Unrealized Gain account.
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Chapter 9 - Page 23
Currency Rates Manager Description

Currency Rates Manager Description
The Currency Rates Manager is a new tool that allows you to easily manage your daily and
historical rates inside a new interface.
The Currency Rates Manager benefits global companies that maintain multiple currencies and
conversion rates by:
• Helping to maintain consistency among different currency conversion rates.
• Minimizing intercompany imbalances that could occur during intercompany eliminations
of foreign currency transactions due to exchange rate differences.
• Easing the maintenance of daily rates and historical rates by providing a spreadsheet
interface.
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Chapter 9 - Page 24
Currency Rates Manager Description (continued)

Currency Rates Manager Description (continued)
When maintaining Daily Rates, you can automatically upload daily rates from a spreadsheet or
manage daily rates within the web-based interface. This allows you to quickly upload multiple
rates at once.
You can even use Cross Rate Rules to automatically calculate the cross rates between 2 or
more currencies. Cross Rate Rules use pivot currencies and contra currencies. A pivot currency
is the central currency used in a cross rate rule definition. Contra currencies are additional
currencies that have a rate relationship with the pivot currency.
For example, if you assign a pivot currency of USD with contra currencies of EUR and Yen,
when you define rates for any two currencies, such as USD to Euros and USD to Yen, the
Cross Rate Rules will automatically calculate the rate between Euros and Yen and the inverse,
Yen to Euros. This helps maintain consistency between different currency combinations and
reduces having to create every currency combination manually.
For Historical Rates, you can upload and download both historical rates via a spreadsheet
interface.
Added security is provided to ensure that historical rates are only uploaded to open periods.
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Chapter 9 - Page 25
Currency Rates Manager Benefits

Currency Rates Manager Benefits
One of the benefits of using Currency Rates Manager is its new easy-to-use interface. The
web-based interface is written using OA Framework, the same tool used for Oracle Self-
Service Applications to provide a browser look-and-feel. The spreadsheet interface enables you
to manipulate conversion rates within a familiar desktop environment.
The spreadsheet interface enables you to quickly upload a large volume of daily and historical
rates more efficiently. The ability to download historical rates to a spreadsheet allows you to
modify the rates, if necessary, and copy them from one ledger to another for ease of
maintenance.
Cross Rate Rules enforce consistency across currency rates. Because Cross Rate Rules
automatically calculate the cross rates between two or more currencies, it reduces the
likelihood of currency rate discrepancies. This ensures that intercompany transactions across
multiple currencies are accounted for with consistent rates, minimizing the effect of exchange
rate differences.
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Chapter 9 - Page 26
Using Cross Rate Rules

Using Cross Rate Rules
In the example above, assume the following currency rates have been defined from USD to
euros and USD to Japanese Yen.
Instead of having to manually define the rate between Euro and Yen, the Currency Rates
Manager will automatically perform the calculation for you between Euro and Yen based on
your Cross Rate Rule.
It will also calculate the inverse, from Yen to Euros.
This is particularly beneficial for intercompany transactions across multiple currencies because
it ensures consistency among rates, thereby minimizing the effect of exchange rate difference
during the intercompany elimination process.
Multi-Currency
Chapter 9 - Page 27
Quiz

Answers: 1
Quiz Specifications
• The correct answer is when maintaining Daily Rates, you can automatically upload daily
rates from a spreadsheet or manage daily rates within the web-based interface.
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Chapter 9 - Page 28
Translation Overview

Translation Overview
Translate actual and budget balances from functional currency to foreign currencies for online
inquiries, reports, and consolidations.
If you have average balance processing enabled, you can translate average balances as well as
standard balances.
Run translation after you have completed all journal activity for an accounting period. If you
post additional journal entries or change your translation rates after running translation for a
period, you must retranslate.
Note: Additionally, if you change the account type for an account segment value and want to
retranslate your actual account balances, you must reenter or change the period end and period
average exchange rates for the periods that you want to retranslate.
Foreign Currency Translation Versus Reporting Currencies (RC)
• RC is specifically intended for use by organizations that must regularly and routinely
report their financial results in multiple currencies. At the balance segment value level RC
is an equivalent of the foreign currency translation.
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Chapter 9 - Page 29
Translation
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Chapter 9 - Page 30
Balances and Rates Used for Translation

Balances and Rates Used for Translation
According to accounting standards (FASB 8 and FASB 52 in the United States), Oracle
General Ledger translates your balances from one currency to another, using the conventions
shown in the figure above.
Period End Rates:
• The daily rate on the last day of your accounting period.
Period Average Rates:
• The average of your daily rates throughout your accounting period.
Historical Rates:
• The weighted average rate for transactions that occur at different points in time.
Note: Because you translate your Balance Sheet and Income Statement accounts at different
rate types, you need to specify a Cumulative Translation Adjustment (CTA) account in the
Ledger window to ensure that your books remain in balance. Oracle General Ledger
automatically posts the translation adjustment to this account.
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Chapter 9 - Page 31
Cumulative Translation Adjustment Account

Cumulative Translation Adjustment Account
When you translate your actual balances into another currency, General Ledger automatically
adjusts the balance of the Cumulative Translation Adjustment account to the net difference
needed to balance your translated chart of accounts. If you have multiple companies or
balancing entities within a ledger, General Ledger automatically adjusts the balance of the
translation adjustment accounts of each company or balancing entity. General Ledger does not
make balancing adjustments to this account when you translate budget balances.
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Chapter 9 - Page 32
Historical Rates

Historical Rates
• More precise than period end rates with respect to equity accounts.
• Defined before running translation to avoid having to retranslate your balances.
• Stabilize the translated balances for long-term accounts.
• Used with highly inflationary currencies to remeasure specific historical account balances
in accordance with U.S. FASB 8.
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Chapter 9 - Page 33
Translation with Historical Rates and Amounts

Translation with Historical Rates and Amounts
Account Balance:
• You can assign historical rates or amounts to accounts, either individually or by range.
The resulting amount is a Year to Date translated account balance. Generally, you enter
historical rates only for specific balance sheet accounts. For example, you can use
historical rates to translate non-monetary and selected equity account balances.
Net Activity:
• General Ledger uses the historical amount or rate to translate the net period activity for the
account. The amount is added to the previous period's translated balance to arrive at the
current period's translated balance.
Revenue/Expense:
• The amount is treated as translated net activity for the period.
Asset/Liability:
• The amount becomes the Year to Date translated balance for the account.
Owner's Equity:
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Chapter 9 - Page 34
• If the profile option GL: Owners Equity Translation Rule is set to PTD (Period to Date),
the amount is treated as translated net activity for the period. If the profile option is set to
YTD (Year to Date), the amount becomes the Year to Date translated balance.
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Chapter 9 - Page 35
Translating Owners' Equity Accounts

Translating Owners' Equity Accounts
Historical rates are more precise than period-end rates for owners' equity accounts. If you
translate your owners' equity account without defining a historical rate, General Ledger warns
you that it used a calculated or period-end rate to perform translation. If you receive such a
warning, we suggest that you define a historical rate and retranslate your balances using the
newly entered rate.
The Owners' Equity Translation rule is enabled by the profile option GL: Owners Equity
Translation Rule. The default value is PTD (Period to Date).
Owners' Equity Translation Rules
• Period-to-Date Rule (PTD) for Revenue and Expense accounts
- PTD (xlt) = Rate X PTD (func)
• Year-to-Date Rule (YTD) for Asset and Liability accounts
- YTD (xlt) = Rate X YTD (func)
- Where (xlt) = balance level reporting currency
- (func) = functional currency
- Example: Translating Owner's Equity Rules from Euro functional currency to USD.
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Chapter 9 - Page 36
- PTD balance for Revenue or Expense in USD = Historic Rate X PTD Euro Balance
- YTD balance for Assets or Liabilities in USD = Historic Rate X YTD Euro Balance
Restating Balances Previously Translated with the Year-to-Date Rule
• Older versions of General Ledger always translated owners' equity accounts using the
Year-to-Date rule.
• If you subsequently switch to the Period-to-Date rule, your owners' equity accounts are
translated using this rule for new translations only.
• Previously translated owners' equity balances do not change.
• If you wish, you can restate your previously translated owners' equity balances.
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Chapter 9 - Page 37
Secondary Tracking Segment Description

Secondary Tracking Segment Description
A flexfield qualifier enables you to nominate a segment in your chart of accounts to act as your
secondary tracking segment.
This segment will identify a secondary tracking segment in your chart of accounts. General
Ledger will track retained earnings, cumulative translation adjustments, and revaluation
gains/losses by both the primary balancing segment and the secondary segment to provide you
with more accounting detail.
The balancing, intercompany, and natural account segments cannot be used as the secondary
tracking segment.
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Chapter 9 - Page 38
Secondary Tracking Segment Description (continued)

Secondary Tracking Segment Description (continued)
• If you specified to use a Secondary Tracking Segment for Revaluation, the Unrealized
Gains/Losses account will be tracked by the balancing segment and secondary tracking
segment.
• If you specified to use a Secondary Tracking Segment for Closing and Translation, the
Retained Earnings account and the Cumulative Translation Adjustment (CTA) accounts
will be tracked by both the balancing segment and secondary tracking segment.
• This allows you to maintain accounting data at a finer level of detail for these accounts.
Note: Year-End Close refers to the standard process of closing out the year-to-date balances
for your revenue and expense accounts to retained earnings when you open the first period of a
new year. This does not apply to the Year-End Closing Journals feature. However, you can
achieve the same result using Income Statement Closing Journals by specifying different
retained earnings accounts for a range of revenue and expense accounts.
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Chapter 9 - Page 39
Secondary Tracking Segment Benefits

Secondary Tracking Segment Benefits
Secondary tracking segments provide better audit and analysis capabilities. You now have
more visibility into the detailed components of Retained Earnings, Cumulative Translation
Adjustment, and Unrealized Gains and Losses. Instead of tracking these accounts by a
balancing segment alone, you can track them by the balancing segment and another segment of
your choice, such as Department, Line of Business, or Cost Center.
A secondary tracking segment also provides better control and consistency of similar
transactions because this option is set at the ledger level instead of through a profile option.
By being able to nominate any segment other than your primary balancing segment or natural
account segment to act as your secondary tracking segment, you have greater flexibility in
tracking accounts by pairs of segments.
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Chapter 9 - Page 40
How to Activate Tracking by Secondary Segment

How to Activate Tracking by Secondary Segment:
1. Assign the Flexfield Qualifier, Secondary Segment, to a segment in your chart of accounts.
Note: Identify one flexfield segment (cannot be the balancing, intercompany, or natural
account segment) from your chart of accounts as the secondary tracking segment.
2. Update the Ledger in Accounting Setup Manager and open the Ledger Options page.
Enable the Track by Secondary Segment option.
Note: Secondary tracking segment support is not available for average daily balance enabled
ledgers. To track revaluation using the cost center segment as the secondary tracking
segment in an average balance enabled ledger, set the profile option GL Revaluation:
Tracking by Cost Center to Yes.
Warning: If secondary segment tracking support is enabled for your ledger and the profile
option GL: Revaluation by Cost Center Tracking is set to Yes or No, the profile option may
produce unexpected results and your revaluation process will end with a warning. To
properly use the secondary tracking segment functionality, ensure that no value is set for
this profile option at every profile option security level.
Additional notes on enabling tracking revaluation gain and losses by the cost center segment:
Multi-Currency
Chapter 9 - Page 41
• Once enabled for a ledger, the Track by Secondary Segment option cannot be disabled.
• To enable the Track by Secondary Segment option, it is recommended that you enable the
option when you create a new ledger.
Multi-Currency
Chapter 9 - Page 42
Using Secondary Tracking Segment

Using Secondary Tracking Segment
• Here is an example of how the Secondary Tracking Segment works.
In this chart of accounts, the Department segment acts as both the Cost Center Segment
and Secondary Tracking Segment.
• We will assume the Secondary Tracking Segment option was enabled for both the
Translation/Closing and Revaluation options.
Multi-Currency
Chapter 9 - Page 43
Secondary Tracking Segment Closing and Translation Example

Secondary Tracking Segment Closing and Translation Example
Here is an example of how the Secondary Tracking Segment works for Closing and
Translation.
• When you close the fiscal year or run translation, Oracle General Ledger will group the
pair of balancing segment and secondary tracking segment values to generate the retained
earnings account for you.
• Thus, the pair of values for the company and department segments, such as "01.100" and
"01.200", are maintained when making the entries to Retained Earnings.
• If you did NOT enable this option for this ledger, then you would only have one retained
earnings account created for balancing segment 01. The value used for the department
segment would have been the one specified for the Retained Earnings Account in the
ledger form. By specifying a secondary tracking segment, the retained earnings account
will always be tracked by the combination of two segments.
Multi-Currency
Chapter 9 - Page 44
Secondary Tracking Segment Revaluation Example

Secondary Tracking Segment Revaluation Example
Revaluation using a Secondary tracking Segment works similarly.
• When you run revaluation, Oracle General Ledger will group the pair of values for the
balancing segment and secondary tracking segment to generate the Unrealized Gain or
Loss accounts for you.
• This allows you to report on Unrealized Gains and Losses by company, by department, or
by a combination of company and department.
Multi-Currency
Chapter 9 - Page 45
Quiz

Answers: 1
Quiz Specifications
• The correct answer is there is a flexfield that enables you to nominate a segment in your
chart of accounts to act as your secondary tracking segment.
Multi-Currency
Chapter 9 - Page 46
Automatically Assigned Rate Types

Automatically Assigned Rate Types
If no historical rate was assigned to an owner's equity account or to an account which had an
entered historical rate, General Ledger automatically creates a historical rate and assigns one of
the rate types listed below.
Prior
• General Ledger uses the most recently entered historical rate or amount for your balance
sheet accounts, and assigns it the rate type Prior. If you have average balance processing
enabled, General Ledger rolls this historical rate or amount forward using the rate type
Prior.
Period
• If you have never defined a historical rate or amount for an owner's equity account,
General Ledger creates historical rates using:
- The period-average rate if the profile option GL: Owners Equity Translation Rule is
set to PTD (Period to Date).
- The period-end rate if the profile option GL: Owners Equity Translation Rule is set to
YTD (Year to Date).
Multi-Currency
Chapter 9 - Page 47
Calculated
• This rate type is only used when the profile option GL: Owners Equity Translation Rule is
set to YTD (Year to Date). It is only applicable to the first period of your fiscal year. If
you have never defined a historical rate or amount for your retained earnings account,
General Ledger calculates a rate and assigns it the rate type Calculated.
Multi-Currency
Chapter 9 - Page 48
Foreign Currency Listings

Foreign Currency Listings
Daily Conversion Rates Listing:
• Lists the daily conversion rates defined for a specific foreign currency and accounting
period.
Historical Rates Listing:
• Lists defined historical translation rates and amounts.
Period Rates Listing:
• Lists defined exchange rates for any accounting period, including the period-average and
period-end translation rates and revaluation rates.
Multi-Currency
Chapter 9 - Page 49
Multi-Currency Profile Options

Multi-Currency Profile Options
GL: Income Statement Revaluation Rule:
• Use this profile option to select either period-to-date (PTD) or year-to-date (YTD) income
statement balances for revaluation. The default value is YTD.
GL: Revaluation: Autoquery Last Run Ranges:
• This profile option allows the Revalue Balances window to retain the GL account number
ranges last entered, re-populating the window account number ranges each time it is
opened. The default value is No.
GL: Owners Equity Translation Rule:
• Specify the rule General Ledger follows to translate owners' equity account when you
have not entered historical rates or amounts. You can choose period-to-date (PTD) or
year-to-date (YTD). The default value is PTD.
Journals: Allow Multiple Exchange Rates:
• Specify whether you want to allow multiple conversion rates within a journal entry. The
default value is No.
Journals: Display Inverse Rate:
Multi-Currency
Chapter 9 - Page 50
• Specify Yes to enter and display conversion rates in the functional-to-foreign format, that
is, the rate by which you multiply a functional amount to determine a foreign amounts.
Specify No to enter and display conversion rates in the foreign-to-functional format, that
is, the rate by which you multiply a foreign amount to determine a functional amount. The
default value is No.
Multi-Currency
Chapter 9 - Page 51
Quiz

Answers: 2
Quiz Specifications
• The correct answer is GL: Income Statement Revaluation Rule
Multi-Currency
Chapter 9 - Page 52
Summary
Multi-Currency
Chapter 9 - Page 53
Multi-Currency
Chapter 9 - Page 54
Consolidations
Chapter 10
Consolidations
Chapter 10 - Page 1
Consolidations
Chapter 10 - Page 2
Consolidations
Consolidations
Chapter 10 - Page 3
Objectives
Consolidations
Chapter 10 - Page 4
Overview of Consolidations

The consolidation process combines the financial results of different companies, typically
combining subsidiary accounting information into a parent company for reporting purposes.
Consolidations
Chapter 10 - Page 5
Consolidation Tools

Consolidation Tools
Financial Statement Generator (FSG)
• Use Financial Statement Generator (FSG) to consolidate financial information for
businesses using a single ledger or businesses using different ledgers that share the same
calendar and chart of accounts.
• Use recurring journals, mass allocation journals, and standard journals to create
intercompany elimination journal entries for multiple companies sharing the same ledger.
Global Consolidation System (GCS)
• Use Global Consolidation System (GCS) to consolidate financial information for multiple
ledgers, diverse financial systems, and geographic locations, including both Oracle and
non-Oracle applications.
• Use the Consolidation Workbench in GCS to:
- Access windows used to perform each consolidation activity.
- Monitor the status of your consolidation.
- View history of past consolidations.
Consolidations
Chapter 10 - Page 6
Consolidating Multiple Companies Sharing a Single Ledger

Consolidating Multiple Companies Sharing a Single Ledger
Use the Financial Statement Generator (FSG) to create consolidated financial statements at the
parent level if:
• Your companies share the same ledger. Because all of your companies' information is
already contained in the same ledger, you do not need to create mapping rules or transfer
data. You simply need to enter the elimination journal entries to eliminate any
intercompany transactions, then run FSG reports.
• Your companies use different ledgers on the same database instance, that share the same
chart of accounts and accounting calendar, but have different currencies. Because FSG
reports can be defined across ledgers, you can still use FSGs to create consolidated
statements. Simply run translation in the subsidiaries' ledger, then define FSGs across
ledgers using the "Translated" currency type.
• You can segregate eliminating entries by creating an elimination company and using
parent/child hierarchies to address FSG consolidations.
For more information, refer to the Oracle General Ledger User Guide or 11i General Ledger
Financial Management Fundamental Financial Reporting.
Consolidations
Chapter 10 - Page 7
Consolidating Multiple Companies with Multiple Ledgers

Consolidating Multiple Companies with Multiple Ledgers
Companies do not share the same currency, calendar, or chart of accounts reside in separate
ledgers, and, possibly, separate instances, or non-Oracle applications. With the Global
Consolidation System, you can:
• Consolidate the results of multiple organizations, with different ledgers that use different
currencies, calendars, and charts of accounts.
• Initiate consolidations from your parent ledger or subsidiary ledger.
• Consolidate actual amounts as well as budget amounts.
• Consolidate account balances or transactions.
• Create automatic intercompany eliminations.
Note: You may use the Advanced Global Intercompany System (AGIS) to enter intercompany
transactions. Then, you use GCS to create your eliminating entries.
• Consolidate the results of multiple organizations on multiple database instances.
Note: If you want to consolidate budgets, your parent and subsidiary ledgers must share the
same calendar and functional currency.
Consolidations
Chapter 10 - Page 8
Global Consolidation System (GCS) Features and Benefits

Consolidation Workbench:
• View the status of your consolidation and monitor subsidiary account balances for any
changes that occur after the subsidiary data has been transferred.
Mapping Rules:
• Determine how your subsidiary account balances roll up into the parent.
State Controller:
• Access to every form you need for consolidations and guides you through the
consolidation process.
Consolidation Hierarchy Viewer:
• View the multilevel structure of your consolidation mapping in a graphical format to see
relationships and analyze ledger information.
Interface Data Transformer:
• The Interface Data Transformer (IDT) is a user-friendly tool that makes importing of data
from external feeder systems into Oracle General Ledger or Oracle Global Consolidation
System much easier and less time-consuming.
Consolidations
Chapter 10 - Page 9
(continued)

Automatic Elimination Entries:
• Automatically generate journal entries to eliminate intercompany balances based on rules
you define.
Multilevel Drilldown:
• Drill down to access account balances, journal entries, and subledger transactions.
Reporting:
• Generate standard or custom reports that can be published to a text file, spreadsheet, or
web site for review and analysis.
Integrated Analysis:
• Perform multidimensional analysis of consolidated financial data using Oracle Enterprise
Planning and Budgeting.
- Oracle Enterprise Planning and Budgeting is tightly integrated with Oracle General
Ledger.
Consolidations
Chapter 10 - Page 10
- After consolidating your companies' information, you can analyze the data using
multiple scenarios.
Consolidations
Consolidating Data in Multiple Instances

Consolidating Data in Multiple Instances
If you have companies that do not share the same instance, you can do the following:
• Revalue and translate subsidiary amounts if you want to normalize the currency to the
parent's functional currency.
• Run a trial balance in the subsidiary ledger and use the trial balance to create journal
entries in a spreadsheet.
• Use Web ADI to upload the journal entry created in the spreadsheet data to a dummy
ledger defined in the parent company's instance.
Note: The dummy ledger is defined like any other ledger. The structure should match that of
the original ledger in the other instance.
As an alternative to the Web ADI extract, you can also use SQL*Plus and load the contents of
the flat file into the GL_INTERFACE table. You can then upload the data into the GCS
instance using journal import. This method requires support from your MIS department.
After you have all the data in a single instance, you can:
• Use GCS to map accounts from your dummy ledger to your parent ledger.
• Transfer data.
Consolidations
• Create eliminating entries.
• Consolidate results.
Note: The same concepts apply for non-Oracle Instances. If you have subsidiary data using
non-Oracle systems, you can map and load the data through Web ADI or SQL*Plus into the
GL Interface table.
Consolidations
Interface Data Transformer (IDT) Description

Interface Data Transformer (IDT) Description
The Interface Data Transformer (IDT) is a user-friendly tool that makes importing of data from
external feeder systems into Oracle General Ledger or Oracle Global Consolidation System
much easier and less time-consuming.
IDT takes data from external feeder systems that have been loaded into the GL_INTERFACE
table and transforms it into the proper format for import into Oracle General Ledger based on
rules you define. Instead of having to manually map the values from the external system into a
format acceptable by the target system, you can create Transformation Rules and apply them to
the external data to have them automatically mapped for you. Each time you import data, you
can simply reapply the same rules.
Consolidations
Interface Data Transformer (IDT) Benefits

Interface Data Transformer (IDT) Benefits
The following benefits can be achieved by using the Interface Data Transformer:
• Interface Data Transformer makes importing data from Non-Oracle Systems much easier
because it reduces the manual effort required to convert disparate data formats into a
format Oracle recognizes and accepts.
• By defining reusable rules, you can reapply the same rules each time you transfer data
from external systems into Oracle General Ledger or Global Consolidation System.
• You can feel safe that the data is valid and will not corrupt your existing data because IDT
validates the imported data for you every time.
• IDT is very flexible. By applying conditions, you can address those special circumstances
and control when the Transformation Rules should be applied.
Consolidations
Interface Data Transformer (IDT) Rule Set Description

Interface Data Transformer (IDT) Rule Set Description
Rule Sets control how your data in the GL_INTERFACE table is transformed.
• A rule set is composed of a stage, which is a grouping of rules.
• The output of a stage in a rule set is used as an input in the subsequent stage.
• Rules are composed of conditions, derivations, and a validation.
• Conditions determine when a derivation should be applied.
• A derivation can be performed either through string manipulation, a PL/SQL function, or
through a Lookup Table.
• Validation can be performed to check the results of a rule. You can use a value set or a
lookup table to validate the results of a rule.
Users must first define a Ledger in Oracle GL to act as the target for mapping. The new
Transformation Rule Set feature will allow users to transform data from a source to a target,
regardless of the table structure of the source or target table.
Consolidations
Interface Data Transformer String Function Example

Interface Data Transformer String Function Example
String functions enable you to parse and concatenate substrings. For example, you can take
values from multiple columns in the external system and combine them into a concatenated
value in the target system.
Consolidations
Interface Data Transformer PL/SQL Function Example

Interface Data Transformer PL/SQL Function Example
PL/SQL Functions perform more sophisticated transformations, such as calculations. You can
calculate amounts stored in separate columns in the external system and store the result in the
target system.
Consolidations
Interface Data Transformer Lookup Table Example

Interface Data Transformer Lookup Table Example
Lookup Tables convert one value into another. Thus if value "B" is specified in the external
system, you can convert that value to "Budget" in the target system.
Consolidations
Interface Data Transformer Steps

Interface Data Transformer Steps
(N) Interface Data Transformer > Define
The first step is to define a Transformation Rule Set. Here, you specify how you want to
transform the data using Lookup Tables, PL/SQL Functions, or String Functions.
Then you need to load your raw external data into the GL_INTERFACE table using SQL
Loader or some other loader program.
Be sure to specify a Source and Group ID in your flat file. This information will be referenced
when you apply the Transformation Rule Set to this data.
The last step is to run the program called GL Interface Data Transformer.
(N) Interface Data Transformer > Run
The GL Interface Data Transformer program takes the data in the GL_INTERFACE table and
transforms it into the correct format based on your Transformation Rule Set.
Here, you can also choose to submit the Journal Import program. You can also run Journal
Import separately after the transformation has occurred.
If there are any errors, you can correct them in the Correct Journal Import form and rerun
Journal Import.
Consolidations
Other Uses for Global Consolidation System

Other Uses for Global Consolidation System
You can use the Global Consolidation System for other activities besides consolidation.
Changing Charts of Accounts
If you decide to change your chart of accounts after it has been implemented, you can use GCS
to map account values from the old chart of accounts to the new chart of accounts.
To do this, you must:
• Create a new ledger with the desired chart of accounts structure.
• Use GCS to map account values from the old ledger' chart of accounts to the new ledger.
• Transfer historical balances or transactions from the old ledger into the new ledger.
Changing the Accounting Calendar
If you change your accounting calendar after it has been implemented, you can use GCS to
map account balances from the periods in the old ledger into the new periods in the new ledger.
This is similar to the previous process used when changing your chart of accounts.:
• Create a new ledger with the desired accounting calendar.
• Use GCS to copy account values from the old ledger’s chart of accounts to the new ledger.
Consolidations
• Transfer historical balances or transactions from the period in the old ledger to the period
in the new ledger.
Considerations for Using GCS When Making Changes
GCS is particularly useful during implementations after you have uploaded historical balances
into Oracle General Ledger. If the accounting calendar or chart of accounts changes, you can
use GCS to perform account mapping and then transfer balances period by period into a new
ledger.
Caution: If you decide to change your ledger after you have turned on Multi-Org for your
subledgers and entered transactions using your subledgers, you should take additional
precautions. Switching your ledger under these conditions may have serious ramifications to
your data integrity because all historical subledger transactions point to the old ledger and all
new subledger transactions point to a new ledger.
Using GCS with the Subledger Accounting

Companies using the Subledger Accounting Dual Posting solution can use Global
Consolidation System (GCS) to transfer subledger transactions, other than Payables and
Receivables transactions, to another ledger to create alternative accounting representations of
their accounting data.
The Subledger Accounting Dual Posting solution enables you to transfer a single Payables or
Receivables transaction to two ledgers that use different accounting rules. Subledger
Accounting Dual Posting only addresses transactions from Payables and Receivables. Other
transactions that require a second accounting representation can be transferred to the second
ledger using GCS. Global Consolidation System (GCS) allows you to synchronize transactions
between the source and target ledgers by allowing you to retain journal batch names and
descriptions and allowing you to exclude the transfer of journals by journal category.
Consolidations
Consolidation Workbench

Consolidation Workbench
The Consolidation Workbench provides a central point of control for consolidating an
unlimited number of subsidiaries to your parent. This window provides feedback on the state of
the consolidation process, keeping you informed about each subsidiary's consolidation status.
The workbench also monitors subsidiary account balances for any changes that occur after the
subsidiary data has been transferred to your parent ledger.
Consolidation Sets
You can even create consolidation sets which launch multiple consolidations in a single step
for overall streamlining of the consolidation process.
Consolidation Hierarchies
Finally, you can create consolidation hierarchies, or multilevel hierarchies, and view your
consolidation hierarchies using a graphical Consolidation Hierarchy Viewer.
State Controller
From the Consolidation Workbench you can access the State Controller, which is a color-
coded navigation tool to guide you through the consolidation process.
Consolidations
Consolidation Workbench (continued)

Consolidation Workbench (continued)
(N) Consolidation > Workbench
When you navigate to the Consolidation Workbench, the Find Consolidation Processes
window opens. This window works with the Consolidation Workbench to help you find
consolidation and elimination processes. Enter a query in the Find Consolidation Processes
window. The results are displayed in the Consolidation Workbench.
Using the Find Consolidation Processes Window
To narrow the search for a consolidation process, enter search criteria in as many of the
following fields as you like:
• Parent: Parent ledger.
• Parent Period: Consolidation period.
• Balance Type: Actual, Balance, or Any.
• Consolidation Set: Group of mappings.
• Mapping: Single mapping.
• Subsidiary: Subsidiary ledger.
• Status: Consolidation status.
Consolidations
• Elimination Set: Fully reciprocal elimination entries.
• Elimination Status: List of eleven different status of eliminations.
Note: Using the Find Consolidation Processes window refreshes data displayed in the
Consolidation Workbench. When you generate, post, or reverse consolidation journals,
navigate to the Find Consolidation Processes window and select the Find button to refresh the
data displayed. Alternatively, you can choose View > Find All from the menu bar.
Consolidations
Quiz

Answers: 2
Quiz Specifications
• The correct answer is the Interface Data Transformer (IDT) is a user-friendly tool that
makes importing of data from external feeder systems into Oracle General Ledger or
Oracle Global Consolidation System much easier and less time-consuming.
Consolidations
Using the State Controller

Using the State Controller
Use the State Controller as a short cut to navigate directly to consolidation mapping and
elimination definition windows.
The State Controller buttons correspond to one of the functional steps of a consolidation so you
can quickly access the consolidation step you want to perform.
When you select a subsidiary from the Consolidation Workbench, the State Controller buttons
change color based on which steps you have performed or need to perform for the subsidiary.
Each button on the State Controller opens the related General Ledger window.
(N) Consolidation > Define > Consolidation
There are navigation paths corresponding to the buttons that open General Ledger forms and
windows:
• Button—Mapping
• General Ledger Window—Consolidation Mappings
• Navigation—(N) Consolidation > Define > Consolidation
• Button—Mapping Sets
Consolidations
• General Ledger Window—Consolidation Sets
• Navigation—(N) Consolidation > Define > Consolidation Sets
• Button—Translation Status
• General Ledger Window—Translation Statuses
• Navigation—This is available only with the State Controller
• Button—Transfer
• General Ledger Window—Transfer Consolidation Data
• Navigation—(N) Consolidation > Transfer > Data

• Button—Transfer Set
• General Ledger Window—Transfer Consolidation Data Set
• Navigation—(N) Consolidation > Transfer > Data Set
• Button—Review Journal
• General Ledger Window—Enter Journals
• Navigation—(N) Journals > Enter
• Button—Post
• General Ledger Window—Post Journals
• Navigation—(N) Journals > Post
• Button—Elimination Set
• General Ledger Window—Elimination Set
• Navigation—(N) Consolidation > Elimination > Define
• Button—Eliminate
• General Ledger Window—Generate Eliminations
• Navigation—(N) Consolidation > Elimination > Generate
• Button—Report (Standard)
• General Ledger Window—Submit Request
• Navigation—Reports > Request > Standard
• Button—Report (Financial)
• General Ledger Window—Run Financial Report
• Navigation—Reports > Request > Financial
Consolidations
State Controller Button Colors

State Controller Button Colors
Selecting a State Controller button accesses the General Ledger window to complete that step.
To help guide you in completing your consolidation steps, the State Controller buttons are
displayed in one of three colors:
• Blue - Recommended
• Gray - Not recommended
• Red - Warning
When you select a subsidiary from the Consolidation Workbench, the State Controller's
buttons change color based on which steps you have performed or need to perform for that
subsidiary. After you successfully complete a consolidation step, the State Controller buttons
may change color to reflect the current status.
For example, the Review Journal button is light gray until data has been transferred. After the
consolidation journal entry is generated, it appears in blue, to indicate that reviewing the
consolidation journal is now a recommended step. If previously translated data has changed
since the transfer, or the translation rate has changed, the translation status button turns red to
warn you that you need to re-run translation.
Consolidations
Defining a Consolidation Mapping

Defining a Consolidation Mapping
To map the chart of accounts: (N) Setup > Account > Chart of Account Mapping
To define consolidation: (N) Consolidation > Define > Consolidation
You must define or modify a consolidation mapping for each subsidiary ledger you want to
consolidate. The mapping identifies the parent and subsidiary ledgers. The mapping rules
control the consolidation of data into the parent ledger.
• Consolidation mappings include identifying the parent and subsidiary, the method,
currency, effective dates, consolidation run options, segment mapping rules, account
mapping rules and usage type.
Selecting a Consolidation Method
• When the consolidation is run, consolidation journal entries are created in the parent
ledger.
Balances:
• Select Balances to consolidate actual, average, translated, budget, or statistical balances.
This method does not include journal entry detail. If you choose the Balances method, the
resulting consolidation journal entries includes the account balances for all the subsidiaries
Consolidations
that were run. For example, if a subsidiary had five transactions that made up the balance
of the sales account, the consolidation journal entry includes the balance of the sales
account, not the individual transactions.
Note: You must use this method if you want to consolidate balances from your subsidiaries'
summary accounts.
Transactions:
• Select Transactions to consolidate actual journal entry detail from a subsidiary ledger.
This method allows you to selectively consolidate individual journal entries. This method
is particularly useful if you want to make incremental updates if new journals are entered
after you run consolidation. Instead of reversing the original consolidation batch, which is
the case for the Balances consolidation method, you can transfer the additional journal
entry and post it to update the consolidated balances. If you choose the Transactions
method, the resulting consolidation journal entries include the transactions for all the

subsidiaries that are run. For example, if a subsidiary has five transactions booked to the
sales account, the consolidation journal entry includes the summation of all five
transactions. If you want each transaction to be listed in the parent ledger as five separate
transactions, you need to run the transfer five separate times.
Note: You can only use this method if both ledgers have the same functional currency.
• If you have average balance processing enabled, your parent should be defined as a non-
consolidation ledger with average balances enabled.
Entering a Currency
• Enter the currency to use for the consolidation. This is the same as the functional currency
for the parent. You can also select STAT.
• Consolidating Books with Average Balance Processing Enabled
• For average balance processing, optionally select a default Usage type such as standard,
average, or both to transfer standard, average, or both balances to the parent ledger.
• Hint: You can create separate consolidation mappings for standard and average balances.
This is helpful if you want to use different mapping rules to get different levels of detail.
For example, you might map standard balances to view consolidated totals for each cost
center or average balances to view consolidated totals for each company.
Note: Standard defaults if you choose Transactions as the consolidation method. For more
information, refer to the Oracle General Ledger User Guide or the 11i General Ledger
Financial Management Advanced Topic Average Balance Processing.
Consolidations
Mapping Rules

Mapping Rules
Selecting a Mapping Rule
Select a Mapping Rule to specify how to consolidate balances or transactions from your
subsidiary to your parent. Your choices include segment rules, account rules, or a combination
of both.
Segment rules are preferable to account rules because:
• Defining consolidation mapping is quicker and easier. For example, if your parent account
has only three segments, you can map an entire subsidiary's chart of accounts with just
three segment rules.
• Running consolidations based on segment rules is faster than those based on account rules.
Changing Mapping Rules
Save your work after you have set up your consolidation mapping. Once saved, you cannot
modify your rollup rules, except to change the parent and subsidiary segment detail values. To
change a rollup rule, delete it and create a new one.
Consolidations
Using Account Mapping Rules

Using Account Mapping Rules
Account Rules: Enter the Subsidiary Accounts and the Parent Account to which you want to
map each subsidiary account range.
• Example 1: Map subsidiary account 02.300.5410.100 to account 01.5000.100 in your
parent ledger.
• Example 2: Map the entire range of subsidiary accounts 02.400.5400.100 through
02.400.6999.100 to account 01.5200.100 in your parent ledger.
Note: Run new consolidations in audit mode to ensure that your account mappings are correct.
The audit mode allows you to run several audit reports to help you verify that your mappings
are set up correctly.
Consolidations
Using Segment Mapping Rules

Using Segment Mapping Rules
Segment Rules
Enter the parent segment name to which each subsidiary is mapped, an Action, and the
Subsidiary segment name. For example, you can map your subsidiary's Department segment to
your parent's Cost Center segment. You can use only one action for each parent segment.
Mapping Rule Actions Rule Description
Copy Value From Copies all values in your subsidiary segment to the same
values in your parent segment. The segments do not have to
use the same value set, but must use the same segment
values.
Assign Single Value Assigns one specific value that is used for the parent
segment. You must enter the value that the parent chart of
accounts uses. Use this rule when your parent account has
more segments than your subsidiary account.
Use Rollup Rules From Maps values from your subsidiary segments to your parent
segments using the rules specified in the Rollup Rules
region.
Consolidations
Using Segment Rollup Rules

Using Segment Rollup Rules
You must define a rollup rule for any segment value mapping rules that are assigned the action
Use Rollup Rules From.
A rollup rule tells General Ledger what detail level of information to transfer and how to roll
that information up into the parent. There are four rollup rules possible:
• Transfer Level—Detail
• Using—Detail Ranges
• Results—Maps a range of detail values from subsidiary ledger into one detail value in
parent ledger.
• Transfer Level—Detail
• Using—Parent
• Results—Maps a parent value from subsidiary ledger into a detail value in parent ledger.
• Transfer Level—Summary
• Using—Parent
Consolidations
• Results—Maps a subsidiary segment parent value into a segment value in parent ledger to
consolidate balances from the summary account associated with the subsidiary segment
parent value. This rollup rule can only be used with the Balances consolidation method.
• Transfer Level—Summary
• Using—Parent Ranges
• Results—Maps one or more ranges of subsidiary segment parent values into a segment
value in parent ledger. This consolidates balances from the summary accounts associated
with the subsidiary segment parent values. This rollup rule can only be used with the
balances consolidation method.
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Defining a Consolidation Mapping Set

Defining a Consolidation Mapping Set
(N) Consolidation > Define > Mapping Set
Mapping Sets are created to transfer data for multiple subsidiaries simultaneously. After the
Mapping Set is created the results can be viewed in the Consolidation Hierarchy Viewer.
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Consolidation Hierarchy Viewer

Consolidation Hierarchy Viewer
(N) Consolidation > Workbench (B) State Controller (B) Mapping Set
(B) View Consolidation Hierarchy
The Consolidation Hierarchy Viewer displays your consolidation structure in a graphical
format. You can easily access your consolidation structure, mapping, parent/subsidiary
relationship, and ledger information, even for complex, multilevel consolidations that include
intermediary parents.
You launch the Consolidation Hierarchy Viewer from the Consolidation Mapping Set window
to display your multilevel consolidation structure in a graphical format. You can expand or
collapse the hierarchy
There are three ways you can review consolidation hierarchies:
• Ledger Only: Displays your hierarchy using only the company's ledger name plus the
three components that make up that ledger: the currency, calendar, and chart of accounts
structure.
• Sets and Mappings Only: Displays your hierarchy using only the consolidation mapping
rules name that comprises the mapping set.
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• Both: Displays your hierarchy using both the company's ledger name and components and
the mapping rules name.
Note: You can only view consolidation hierarchies for consolidations in a mapping set.
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Preparing Subsidiary Data

Preparing Subsidiary Data
Prepare your subsidiary data by revaluing and translating balances before you transfer the
balances to your parent.
Revalue Balances:
• If any of your ledgers have balance sheet accounts that have foreign currency balances,
revalue the balances to reflect the impact of any changes in exchange rates. Post the
resulting revaluation journal.
Translate Balances:
• Select the State Controller's Translation Status button to check the current status of your
subsidiary translations. If any of your subsidiary ledgers uses a functional currency
different from your parent, you should translate the account balances before you transfer
the subsidiary data to your parent ledger.
Note: Translation must be run in the subsidiary ledger the first time. Subsequent runs can be
done from the Translation Status window.
Run Reports:
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• Run a trial balance report for each subsidiary ledger, using the parent ledger' functional
currency.
- Run after revaluation and translation have been processed in the consolidation
currency.
- Review the trial balance to ensure the data is accurate.
- Use these reports to reconcile subsidiaries to the parent.
- If subsidiary data has been translated, review the trial balance to ensure the data is
accurate.
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Revaluation Process

Revaluation Process
Revaluation should be completed before translation so the values are correct before they are
translated. The revaluation process performs the following:
• Locates all accounts (within a range of specified accounts) in which all or a portion of the
balance is derived from foreign currency transactions.
• Revalues the foreign currency portion of the account balance using the revaluation rate
defined in the Period Rates table. The Revaluation Rate is the inverse of the Period End
Rate (expressed as 1/Period End Rate).
• Calculates the difference between the current cumulative functional currency balance of
these foreign transactions and the revalued functional currency balance calculated using
the Revaluation Rate.
• Creates an unposted journal batch to adjust the account balance to the new revalued
balance. The offset account is the Unrealized Gain/Loss account specified when you run
the revaluation process.
You must post the revaluation journal entries. Optionally, at the beginning of the next period,
you can reverse the journal entries and revalue the balances again at the end of the next period.
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Translation

Translation
If any subsidiary's ledger uses a functional currency different from the currency of the parent
ledger, translate the account balances to the parent's functional currency before transferring
them to the parent ledger.
The first time translation is run for a period, it should be initiated from the subsidiary.
However, subsequent translations, if they are needed, can be initiated from the parent, using
the State Controller Translate button.
Notes:
• When running consolidation for the first time, it is best to consolidate Year-to-Date (YTD)
amounts for balance sheet accounts to capture the subsidiary book's beginning balances.
Period-to-Date (PTD) consolidation lacks the historical information needed to distinguish
the translated beginning balances from the translation adjustment for the new rate.
• For income statement account balances, run period-to-date (PTD) consolidation.
If the period rate changes, or additional data is posted to a subsidiary after translation has been
run, the translation becomes obsolete. This is indicated by the red color of the Translation
button. You need to retranslate the data, delete the previous transfer, then run the transfer
again.
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Transferring Subsidiary Data to Parent Ledger

Transferring Subsidiary Data to Parent Ledger
(N) Consolidation > Workbench
To transfer consolidation data to your parent ledger, use the Transfer button on the State
Controller to launch a concurrent process.
You can optionally select the following Run Options:
• Run Journal Import: Automatically creates journal entries in your parent ledger.
• Create Summary Journals: Summarizes all journals lines for the same account into a single
debit line and credit line.
• Audit Mode: Creates an audit trail of transferred data that can be reviewed in
Consolidation Audit Report, Unmapped Subsidiary Account Report, and the Disabled
Parent Accounts Report.
Consolidating Balances
• The mapping selected for consolidation must use the balances consolidation method in
order to transfer balance data. When you submit the transfer process with the Run Journal
Import option enabled, General Ledger creates an unposted consolidation journal batch in
your parent ledger that includes all the valid accounts with the range selected for the
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transfer. If your consolidation range excludes some accounts from your subsidiary ledger,
and consolidation is run in audit mode, you can review any excluded accounts in the
Unmapped Subsidiary Accounts Report.
• If you do not select the Run Journal Import option for your transfer, you must manually
import the journal using the Import Journals window from your parent ledger.
Note: When running consolidation for the first time, you need to run a year-to-date (YTD)
consolidation for balance sheet accounts. This allows you to consolidate the subsidiary's
beginning balances. For each subsequent consolidation, run consolidation using PTD
balances to get the net change for the period.
Consolidating Transactions
• You can consolidate transactions only if the mapping you want to transfer uses the
transactions consolidation method. In addition, you must use the Balance Type of Actual.
For average balance processing books, you should consolidate into a non-consolidations

ledger with average balances enabled.
• In the Consolidation Workbench, select the consolidation mapping you want to run.
General Ledger automatically enters Actual for the Balance Type, Standard for the Usage
type, and PTD for the Amount Type. Then select the journal batches you want to
consolidate. You can search subsidiary ledgers for all unconsolidated journal batches,
previously consolidated batches or both.
Transferring Consolidation Set Data
• If you have numerous subsidiaries, you can group them into a consolidation mapping set
and then transfer the set to the parent ledger. You can use the Query Mappings button to
review the mappings contained in a specific mapping set, the subsidiary period and date.
Select the mappings you want to transfer by selecting the check box to the left of each
mapping name. Then select the Transfer button to launch the transfer program.
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Consolidation Tracking and Reversals

Consolidation Tracking and Reversals
(N) Consolidation > Workbench (B) Find
Consolidation Tracking: The Transferred Balances column on the Consolidation Workbench
indicates whether the balances for a mapping are current or obsolete. The workbench monitors
subsidiary account balances for any changes that occur after the subsidiary data has been
transferred to the parent ledger.
Consolidation Reversals: If you reverse a subsidiary consolidation process, the Status column
displays Reversed for that process if all the following conditions have been met:
• The original consolidation journal is posted.
• A reversal of the original consolidation journal is generated and posted.
• The order of the operations is not important. A reversal can be performed before posting
the original consolidation journal, but all three operations must all be complete for a status
display of Reversed.
Note: If you need to rerun consolidation or re-transfer data from your subsidiaries, be sure to
reverse the original consolidation journal entries to avoid double-counting balances.
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Posting Consolidation Journal Entries

Posting Consolidation Journal Entries
After you have transferred subsidiary data to the parent ledger:
• Run Journal Import, if not chosen as a consolidation run option.
• Review the unposted consolidation.
• Post the consolidation journal entries in the parent ledger. This launches a concurrent
process.
• Request standard or FSG reports to review the consolidated results.
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Global Consolidation System Cross Instance Data Transfer

Global Consolidation System Cross Instance Data Transfer
Enterprises that manage their business operations in multiple database instances need an
automated way to transfer data from remote subsidiary database instances to a central
consolidation database instance.
The Global Consolidation System Cross Instance Data Transfer features the following:
• Automatic transfer of consolidation data from one instance to another using database links
• Import and post consolidation journals in one step
• Notify users of the transfer status using Workflow Notifications
The Global Consolidation System facilitates the consolidation of data from remote subsidiary
ledger database instances to a central consolidation database instance. Using database links,
Global Consolidation System allows you to automatically transfer consolidation data from one
instance to another, as well as optionally import and post the data automatically in the
consolidation database instance. You no longer have to manually transfer consolidation data
files from the remote subsidiary instances to the consolidation database instance and manually
import and post the data into the parent ledger.
This feature automates the entire process and also includes workflow notifications providing
notification of the cross instance consolidation status. Global companies with operations on
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multiple database instances can use this feature to consolidate their subsidiaries in a more
efficient and automated manner.
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Cross Instance Data Transfer Security

Cross Instance Data Transfer Security
Global companies with operations on multiple database instances require security of database
objects from unauthorized users to do the following:
• Prevent users from modifying tables and other objects in the parent consolidation instance
• Limit users to only transferring, importing, and posting consolidation data
Using this security, there is no need to re-enter your username and password every time you
transfer consolidation data, saving time and redundancy. And, the username/password is now
validated at the time you sign on to Oracle Applications.
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Global Consolidation System Parallel Consolidation

Global Consolidation System Parallel Consolidation
Global companies who transfer data for a large number of subsidiaries want to:
• Improve the performance of consolidation transfers from different subsidiaries
• Speed the close process by running consolidation transfers in parallel
Global Consolidation System Parallel Consolidation allows users to run multiple concurrent
consolidation transfer processes in parallel for different subsidiaries and to consolidate a high
volume of detail. The Global Consolidation System Parallel Consolidation feature takes
advantage of using separate GL_INTERFACE tables to speed up the transfer and import of
consolidation data into the target ledgers using multiple parallel processes. This allows global
companies, who often need to transfer data for a large number of subsidiaries, to increase
processing efficiency and save time during the critical close process.
To use Global Consolidation System Parallel Consolidation, you must select the Run Journal
Import option in the Transfer Consolidation Data or Transfer Consolidation Data Set forms.
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Creating Eliminating Entries

Creating Eliminating Entries
There are several methods you can use to create eliminating entries in your consolidated parent
or elimination ledger.
Use the Automatic Intercompany Eliminations to create elimination sets. Elimination sets are
used for fully reciprocating eliminations. For example, use elimination sets to fully offset each
subsidiary's Intercompany Payables and Intercompany Receivables accounts.
Other options for eliminating entries are to use Oracle General Ledger's journaling features to
do the following:
• Create recurring journal entries for eliminations that are not fully reciprocated. Recurring
journals allow you to create formula-based eliminations that only partially offset
intercompany transactions, such as minority interest eliminations.
• Create standard journal entries to eliminate intercompany balances.
• Create elimination journal entries in Web ADI. Use the power of Excel to enter
elimination entries, link worksheets and create complex calculations. You can upload
them from Web ADI, then post them in Oracle General Ledger.
Note: If you want to segregate elimination entries from operational accounting entries, you
should create a single elimination company. For example, if you have Company 01, 02, and 03,
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create a fourth elimination company, such as Company 99. Enter all eliminating entries using
the elimination company. Then you can report consolidated results before and after
eliminations.
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Formula-Based Eliminations

Formula-Based Eliminations
Recurring journals must be used to eliminate average daily balances. For more information,
refer to the Oracle General Ledger User Guide or the 11i General Ledger Financial
Management Advanced Topic Average Balance Processing.
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Automatic Intercompany Eliminations Program

Automatic Intercompany Eliminations Program
The Automatic Intercompany Eliminations program eliminates intercompany balances. It is
used only for fully reciprocating eliminations that repeat every accounting period.
To use this program create an elimination set. An elimination set is a batch of one or more
related elimination entries. If an elimination company is used as the target company when
booking elimination entries, you must specify the balancing segment value for the elimination
company.
The Automatic Intercompany Eliminations program automatically generates eliminating
entries per the rules specified in the Define Elimination Accounts window.
• An elimination set is defined with a source account to eliminate, and a target account to
eliminate it into.
• When the elimination is run, journal entries are created for all values in the source account
to zero them out and post them to the target account.
• You can use the Consolidation Workbench and State Controller to track the elimination
status of elimination sets and post any generated elimination sets.
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Quiz

Answers: 2
Quiz Specifications
• The correct answer is you cannot use the Automatic Intercompany Eliminations program
to eliminate formula–based eliminations or average balances.
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Defining an Elimination Set

Defining an Elimination Set
Elimination sets can contain a single eliminating journal entry, or a group of related
elimination entries.
Elimination entries are comprised of individual lines mapped to fully eliminate balances from
source accounts to target accounts.
Note: You cannot use the Automatic Intercompany Eliminations program to eliminate average
balances.
Elimination Set Components
• Elimination Company:
- Choose a balancing segment value to represent the elimination company. This
company is used as the target company when booking elimination entries and the
value cannot be overridden. You can leave this field blank if you do not wish to use
an elimination company. If you leave this field blank, the balancing segment value of
the target account is used.
• Track Elimination Sets:
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- If you want the elimination set to be part of the checklist for determining which
eliminations are completed for the period, select the Track Elimination Status check
box.
• Period Last Run:
- General Ledger populates this field to indicate the period in which you last executed
an elimination set.
• Effective From and To dates:
- Enter a range of effective dates that includes only those periods for which you want
the eliminating entry to be used. Oracle General Ledger generates eliminating journal
entries only when you choose a date that falls within the Effective Dates range.
• Currency:
- Select the functional currency of the parent ledger or STAT. The currency you

specify is for both source and target accounts.
• Amount Type:
- Enter period-to-date, (PTD), quarter-to-date (QTD), year-to-date (YTD), or project-
to-date (PJTD). Average Balances cannot be used.
• Source Account:
- The Source Account balance is fully eliminated into the target account. The
elimination program takes the negative balance of the source account and places the
balance in the target account. For each account segment, choose a detail account
value, a parent value, or leave the segment blank.
Note: Use parent values to reduce account maintenance because the elimination set
automatically accommodates changes in the child values associated with a particular
parent value. Parent values save you time in defining elimination sets because you
can specify one elimination line which includes the parent value, instead of multiple
lines for each child value. If you use parent values, the elimination functionality
automatically loops through each of the child values for those segments and creates
its detailed or summarized offset in your elimination journal.
• Target Account:
- Specify a target account for your elimination entry. For each account segment, choose
a detail account value or leave the segment blank.
Note: If you specify an elimination company in the Elimination Sets window, the
balancing segment value for the target account is set for you. You cannot override
this default. If you do not specify an elimination company in the Elimination Sets
window, the source account balancing segment value defaults as the target balancing
segment value and you can override this value.
Specifying an Elimination Company
• If you specify an elimination company in the Elimination Sets window, the balancing
segment value for the target account is set for you. You cannot override this default.
• If you do not specify an elimination company in the Elimination Sets window, the source
account balancing segment value defaults as the target balancing segment value and you
can override this value.
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Source and Target Account Examples

Source and Target Account Examples
The examples above illustrate how various mapping rules work based on the account structure
shown above for a single account segment, in this case, the cost center segment. The same
concepts apply to all segments in your chart of accounts.
The parent cost center 999 has three child accounts, 100, 200, and 300. Cost center 400 does
not have a parent.
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Balancing Options for Eliminations

Balancing Options for Eliminations
If elimination journals are out of balance, you can specify balancing options to either allow out
of balance journals to be created or to post the net difference to an alternative account.
Balancing options apply to all journals created for the elimination set.
Allow Out of Balance Journal: Allows the creation of an unbalanced journal entry to be
reviewed and corrected before posting.
Balance with Net Difference Account: Specifies an account template to use if the difference is
a net debit or credit.
In addition, threshold rules can be applied to prevent the automatic balancing of elimination
journals if the net difference exceeds a specific amount, a percentage of a particular account, or
a percentage of the journal.
Enter one of the following parameters to specify the threshold amount:
• Constant amount: Specify a fixed amount
• Percentage of account: Enter a number and an account. The number represents a
percentage of the period-to-date (PTD) balance of the selected account. This account must
be a detail account.
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• Percentage of journal: Enter a number that represents the percentage of the lesser total
debit or total credit of the unbalanced journal.
If multiple balancing segments are involved, General Ledger creates specific balancing
accounts by balancing segment value.
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Allow Out of Balance Journal
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Balance with Net Difference

Balance with Net Difference
If you use the Balance with Net Difference option, you can select different net difference
accounts for debit differences and credit differences.
You can also enter threshold rules with the Balance with Net Difference option:
• If the difference does not exceed the amount specified in the threshold rule, the
elimination journal is automatically balanced.
• If the difference exceeds the amount specified in the threshold rule, you can examine the
difference in the out of balance journal entry and decide what needs to be done.
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Consolidated Balances Inquiry

Consolidated Balances Inquiry
With General Ledger's drill down functionality, you can view any subsidiary, account, journal,
or subledger transaction. From your parent ledger, you can drill between:
• Consolidated and subsidiary entities
• Detail accounts and journal entries
• Summary and detail account balances
• Journals and subledger transactions
Note: To be able to use drill down, select the Import Journal References check box in the
Journal Sources window, in the parent ledger, for the consolidation journal source. To
drilldown to subledger transactions, you must also select the Import Journal References check
box for each subledger source.
Drilldown Example
Suppose while analyzing total consolidated sales in your parent ledger, you want to determine
how much each subsidiary contributed to the total amount. You drill down from the
consolidated sales balance to any subsidiary sales account balance. From there, you can view
account details and journal entries. If you need further information, drill down further to the
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Accounts Receivable subledger transactions that contributed to your total consolidated sales
balance.
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Performing Consolidated Balances Inquiry

Performing Consolidated Balances Inquiry
Perform an account inquiry in your consolidated parent ledger.
Select the Show Journal Details button to drill down to the Journals window.
Search for journal batches with a journal source of Consolidation to locate your consolidation
journal entries.
Select the Drilldown button to open the Consolidation Drilldown window.
• Select Detail Translated Balances button to view the translated balance amounts.
• To view amounts in original currency entered, select the Entered Balances button.
• To change the amount type to Year-to-Date (YTD), Period-to-Date (PTD), Quarter-to-
Date (QTD), or Project-to-Date (PJTD), select the Switch Amount Type button.
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Running Consolidation Reports

Running Consolidation Reports
Select the Report button on the State Controller to submit standard consolidation reports.
Consolidation Audit Report:
• Use this report to review the mapping of account balances from your subsidiary ledger
into accounts in your parent ledger for a specific consolidation mapping. It reports the
total of all subsidiary account balances that were consolidated into each account in your
parent ledger.
Consolidation Exception Reports
Unmapped Subsidiary Report—Use this report to determine if your consolidation is complete
prior to posting. It reports any subsidiary accounts, included in the account range you specified
for your consolidation transfer, with non-zero balances that were not consolidated into your
parent ledger because the accounts were not mapped.
Disabled Parent Account Report—Use this report to review all disabled accounts in your
parent ledger for which you tried to consolidate balances or transactions.
Consolidation Rules Report—This report prints the segment and account rules defined for a
specific consolidation mapping.
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Consolidation Journals Report—This report lists subsidiary journal lines and the parent
accounts used for your consolidation. Use this report to review journal batches consolidated
across multiple ledgers. You must run this report from your parent ledger. You can only run
this report if your consolidation uses the Transactions method and you do not select the Create
Summary Journals option.
Notes:
• The Consolidation Audit Report, Unmapped Subsidiary Report, and Disabled Parent
Account Report are available only if you select the audit mode run option when
transferring your subsidiary data.
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Creating Custom Consolidation Reports

Creating Custom Consolidation Reports
You can use Financial Statement Generator (FSG) or Web Applications Desktop Integrator
(Web ADI) to define custom consolidation reports for your parent ledger. You can report on
multiple ledgers in the same report as long as each ledger shares the same account structure
and calendar.
Consolidations
Quiz

Answers: 1
Quiz Specifications
• The correct answer is Consolidation Audit Report.
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Summary
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Consolidations
Period Close
Chapter 11
Period Close
Chapter 11 - Page 1
Period Close
Chapter 11 - Page 2
Period Close
Period Close
Chapter 11 - Page 3
Objectives
Period Close
Chapter 11 - Page 4
The Accounting Cycle

The Accounting Cycle
The following are steps in the General Ledger Accounting Cycle:
• Open period
• Create functional and foreign journal entries.
• Reverse journal entries
• Convert journal amounts
• Post and review balances
• Revalue and translate foreign currency balances
• Consolidate ledgers
• Review and correct balances
• Run accounting reports
• Close the accounting period
Period Close
Chapter 11 - Page 5
Period Close Checklist
Period Close
Chapter 11 - Page 6
Overview of Importing Journal Entries

Overview of Importing Journal Entries
Importing information from Oracle subledgers is done from Oracle Subledger Accounting
(SLA)
Data is pushed into the GL_INTERFACE table from the subledger from Subledger
Accounting, Journal Import pulls the information from the Interface table to create valid,
postable journal entries in General Ledger.
When you initiate the Create Accounting program from Oracle subledgers, such as Oracle
Payables or Oracle Receivables, you can choose to transfer to GL and post in GL. If you do not
choose to transfer to GL from the subledger, then you must run the Transfer Journal Entries to
GL separately in the subledger. The Journal Import loads the data from the GL_INTERFACE
table into the GL_JE_BATCHES, GL_JE_HEADERS, and GL_JE_LINES tables of General
Ledger. Data can also be imported from non-Oracle feeder systems from the GL_INTERFACE
table. Journal information can be transferred in detail or summary.
Note: Journal Entries can be transferred anytime during the period. Before closing each
subledger, a final transfer should be performed.
Period Close
Chapter 11 - Page 7
Journal Import Verification Process

Journal Import Verification Process
(N) > Journals > Import > Run
Journal Import validates all of your data before it creates journal entries in General Ledger. If
you allow suspense posting for your ledger, Journal Import assigns lines with invalid accounts
to the suspense account. Journal Import rejects all other invalid lines, and they remain in the
GL_INTERFACE table. Journal Import also prints your error lines in the Journal Import
Execution report.
Journal Import validates the following attributes to ensure that your journals contain the
appropriate accounting data:
• Account combinations
• Unbalanced journal entries
• Periods
• Foreign currency errors
• Budget information
• Encumbrance information
• Other miscellaneous items
Period Close
Chapter 11 - Page 8
Before closing the General Ledger, verify that all journal entries have been imported from the
GL_Interface table. If not, troubleshoot the remaining entries.
Caution: Do not correct or delete journal import data from Oracle subledgers such as Oracle
Payables or Oracle Receivables. Corrections do not update the Oracle subledger data causing a
permanent out of balance between the General Ledger and the subledger. The Oracle
subledgers set flags to indicate the transactions have been sent to Oracle General Ledger. If the
import is deleted, these flags must be reset before the transactions can be resent.
For more information on Journal Import, see the previous chapter on Journal Entries.
Period Close
Chapter 11 - Page 9
Posting Journals

Posting Journals
To post journal import batches, you can:
• Batch Posting: Navigate to the Post Journals window to post a group of journal batches.
- (N) Journals > Post
• (N) Journals > Enter (B) Post
• Automatic Posting: Run the AutoPost program to post journal batches automatically based
on a schedule you define.
- (N) Setup > Journals > AutoPost
Correcting Batch Posting Errors: Review the batch to identify the posting error. Common
explanations for unpostable batches include:
• Control total violations
• Posting to unopened periods
• Unbalanced journal entries
Posting Statuses are:
• Unposted
Period Close
• Pending
• Processing
• Selected for posting
• Posted
• Error
For more information on Posting Journals, see the previous chapter on Journal Entries.
Period Close
Reconciling Subledger Data

Reconciling Subledger Data
Before closing the General Ledger, reconcile the subledger data to the General Ledger to be
sure that all transactions have been transferred and accounted for correctly in the General
Ledger. This can be done using reports and on line account analysis.
Period Close
Close the Subledgers

Close the Subledgers
Once the data is reconciled, close the subledgers. A suggested order for closing the subledgers
is as follows:
• Projects: Receives and sends information on expenses from and to Payables. Also receives
outstanding purchase orders from Purchasing. Sends Asset lines to Assets. Sends
information to General Ledger.
• Payables: Transfers information to Assets, Projects, and General Ledger.
• Purchasing: Calculates period end accruals for expense items received but not yet
invoiced. If Purchasing closes before Payables, more invoices could be entered causing an
out of balance situation.
• Assets: Receives asset invoice lines from Payables after they have been transferred to the
General Ledger.
• Receivables: Can be closed at anytime in the process. It is not depended on the other
modules.
• Inventory: Transfers inventory cost information. Close after Purchasing and Receivables
to ensure that all receiving and shipping transactions have been processed.
Period Close
Note: Order Management updates Inventory during Ship Confirm which precedes the
AutoInvoice Process. Therefore, verify that all orders have been processed in Order
Management before closing Inventory.
Period Close
P2P Close Processes

P2P Close Processes
Submit the Payables Transfer to General Ledger process to transfer accounting information to
the GL Interface. After the Payables Transfer to General Ledger process completes, run the
Journal Import process to create unposted journals in General Ledger.
Subledgers communicate with Oracle General Ledger through Oracle Subledger Accounting.
Note: The Payable Transfer can now be run as part of a set of programs called the Payables
Accounting Process that creates the payables accounting entries, transfers the data into the GL
Interface table, and runs Journal import.
• Purchasing Receipt Accruals - Period End: Use the Receipt Accruals - Period-End process
to create period-end accruals for your uninvoiced receipts. This process only generates
receipt accruals for items you purchase and receive that are set to accrue at period end.
Receipt accruals for items set to accrue on receipt are automatically sent to the GL
Interface. In either case, use the Journal Import program with a source of Purchasing to
transfer receipt accruals from the GL Interface to the General Ledger Journal tables.
• Inventory Transfer Transactions to GL: Use the Transfer Transactions to GL process to
transfer summary or detail accounting activity for any open inventory period into the
General Ledger Interface, including both inventory and work in process entries. When
Period Close
more than one period is open, the transfer selects transactions from the first open period
up to the entered transfer date, and passes the correct accounting date and financial
information into the General Ledger Interface. Use the Journal Import program with a
source of Inventory to transfer accounting information from the GL Interface to the
General Ledger. Run this process for each inventory organization.
• For Assets, run the following processes:
- Mass Additions Create: Run the Mass Additions Create program to transfer capital
invoice line distributions from Payables to Assets. This process creates no accounting
entries. After the program completes, invoice distributions may be processed.
- Post Mass Additions: Once your mass additions are processed, use the Post Mass
Additions program to place the assets in service.
- Run Depreciation: This process calculates depreciation, gain/losses on retirements,
and (optionally) closes the period.

- Create Journal Entries: Use the Create Journal Entries process to create accounting
and transfer it directly to the General Ledger. The accounting clears the asset clearing
account and charges the asset cost account. Assets does not use the GL Interface.
Period Close
Overview of the P2P Period Close
Period Close
Reconcile AP to GL

Reconcile AP to GL
Use the following Payables reports to reconcile your transferred invoices and payments to your
Accounts Payable Trial Balance to ensure that your Trial Balance accurately reflects the
Accounts Payable Liability:
• Accounts Payable Trial Balance (for last day of prior period)
• Posted Invoice Register - Invoice journals must be posted in General Ledger to appear on
this report.
• Posted Payment Register - Payment journals must be posted in General Ledger to appear
on this report.
• Accounts Payables Trial Balance (for last day of current period)
This balancing process will help you ensure that all liabilities recorded in Payables are
reflected in the General Ledger AP Liability accounts. If the balance reported by the Accounts
Payables Trial Balance does not equal the balance in the AP Liability account, you can use the
Account Analysis report and the General Ledger reports to determine what journals are being
posted to that account. Before running your reports, run the Payables Accounting Process with
the Transfer to General Ledger Program and Journal Import for all transactions in the period
that you are reconciling. Also, be sure to post the transactions in the General Ledger.
Period Close
Reports

Reports
Accounts Payable Trial Balance: Verify that total Accounts Payable liabilities in Payables
equal those in the General Ledger. To reconcile these balances you can compare the
cumulative total liability provided by this report with the total liability provided by your
General Ledger.
Accrual Rebuild Reconciliation Report: Analyze the balance of the Accounts Payable (A/P)
accrual accounts. You can accrue both expense and inventory purchases as you receive them.
When this happens, you temporarily record an Accounts Payable Liability to your Expense or
Inventory A/P Accrual accounts. When Payables creates the accounting for the matched and
validated invoice, Payables clears the A/P accrual accounts and records the liability from the
supplier site. Run this report at period end.
Accrual Reconciliation Report: The same report as the Accrual Rebuild Reconciliation Report
with one key difference. The Accrual Rebuild Reconciliation Report creates records in a
temporary table which are used as the basis for the report. The Accrual Reconciliation Report
simply uses the records created by the Accrual Rebuild Reconciliation Report as a basis for the
report. Run this report during the accounting period.
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Accrual Write-Off Report: Provide supporting detail for your write-off journal entries. The
process is as follows:
• Analyze the Accrual Reconciliation Report for transactions that you should expense out of
the accrual accounts.
• Researched the reported accrual balances.
• Use the Accrual Write-Off window to indicate which entries you wish to remove and
write off from this report.
• Use the Accrual Write-Off Report as supporting detail for your manual journal entry.
Matched and Modified Receipts Report: After you automatically create invoice distributions by
matching an invoice for goods to a receipt, that receipt can be modified in Purchasing. For
example, you might need to adjust a receipt because the quantity received was incorrectly
recorded, or the product was defective and returned to the supplier. Use this report to identify
receipts that have been changed after invoice matching, and for which no users have seen

modifications.
Payables Account Analysis Report: Review and analyze accounting entries in Payables. You
can use the report parameters to limit the report to just the accounting information you want to
review. The Payables Account Analysis report is helpful when you reconcile your accounts
with your General Ledger. For example, you can reconcile the prepaid expense account
between Payables and your General Ledger. You can submit this report in detail and compare
it to an account analysis report in your General Ledger.
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Reports (continued)

Reports (continued)
Payables Accounting Entries Report: Use this report to review and analyze accounting entries
in the Payables subledger. You can request the report for a specific run of the Payables
Accounting Process or the Payables Transfer to General Ledger program. Using the report
parameters, you can produce a detailed or summary listing of the accounting information you
want to review. The report also lists in detail any transactions that have been accounted with
error and all entries that could not be transferred to the General Ledger Interface. When a
transaction is accounted with errors, use the Update Accounting Entries window to update any
invalid accounts.
Posted Invoice Register: Use the Posted Invoice Register to review accounting lines,
summarized by invoice, that have been transferred to the General Ledger. Because it presents
amounts that have been charged to liability accounts, this report is valid only for an accrual
ledger. The Posted Invoice Register is primarily a reconciliation tool. Use this report along
with the Posted Payment Register and the Accounts Payables Trial Balance Report to reconcile
balances between Payables and your General Ledger.
Posted Payment Register: Use the Posted Payment Register to review accounting lines,
summarized by payments that have been transferred to the General Ledger. Because it presents
amounts that have been charged to liability accounts, this report is valid only for an accrual
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ledger. You can submit the Posted Payment Register for one payment journal entry batch or all
payment journal entry batches. The Posted Payment Register is primarily a reconciliation tool.
Use this report along with the Posted Invoice Register and the Accounts Payables Trial
Balance Report to reconcile balances between Payables and your General Ledger.
Receipt Accruals - Period End: Use the Receipt Accruals - Period-End process to create
period-end accruals for your uninvoiced receipts for expense distributions. Purchasing creates
an accrual journal entry in the General Ledger for each uninvoiced receipt you choose using
this window.
Receiving Account Distribution Report: The Receiving Account Distribution Report lists the
accounting distributions for your receiving transactions. This report supports the distributions
created for the following transactions:
• Purchase Order Receipts
• Purchase Order Receipt Adjustments

• Purchase Order Returns to Supplier
• Deliver to Expense Destinations
• Return to Receiving from Expense Destinations
• Match Unordered Receipts
This report helps you reconcile your receiving accounting to the General Ledger.
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Reports (continued)

Reports (continued)
Unaccounted Transactions Report: Identify and review all unaccounted invoice and payment
transactions and see the reason that Payables cannot account for a transaction. Run this report
after you have run the Payables Accounting Process. The report will then show only
transactions that had problems that prevented accounting. You can then correct the problems
and resubmit the accounting process. Note that this report does not include invoices that have
no distributions.
Uninvoiced Receipts Report: Run before the Receipt Accrual - Period-End process. With this
report, you can review all or specific uninvoiced receipts for both period end and online
accruals. Uninvoiced receipts are goods and services you have received that your supplier did
not invoice yet. This report indicates exactly what you have to accrue and for what amount,
and helps you analyze your receipt accrual entries. The accrual amount is the difference
between the quantity received and the quantity billed multiplied by the unit price of the item.
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Quiz

Answers: 1
Quiz Specifications
• The correct answer is before closing the General Ledger, reconcile the subledger data to
the General Ledger to be sure that all transactions have been transferred and accounted for
correctly in the General Ledger.
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O2C Period Close Process

O2C Period Close Process
Subledgers communicate with Oracle General Ledger through Oracle Subledger Accounting.
Period Close
Overview of O2C Period Close Process

Overview of O2C Period Closing Process
As part of the Order to Cash (O2C) process, accounting information is transferred from
Inventory and Receivables to the General Ledger. The Order Management and Cash
Management applications send transactions to Receivables and Inventory rather than directly to
the General Ledger.
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Transferring to General Ledger

Transferring to General Ledger
For more information on the Create Accounting program, refer to the Oracle Receivables User
Guide and the Oracle Subledger Accounting Implementation Guide.
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O2C Standard Reports

O2C Standard Reports
Inventory, Vision Operations (USA)
(N) Reports
• Use the Material Account Distribution Detail or Summary Report to:
• View the accounts charged for inventory transactions
• Reconcile to the inventory accounting transferred to the General Ledger
Receivables, Vision Operations (USA)
(N) Reports
• Reports can be run as a concurrent process from the Submit Requests window.
• Use these reports when needed to review activity at any time during the month.
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Reconciling Receivables Transactions, Receipts, and Customer
Balances

Reconciling Receivables Transactions, Receipts, and Customer Balances
Receivables, Vision Operations (USA)
(N) > Reports > Accounting
Use the AR Reconciliation Report to start the reconciliation process. It will provide a summary
of your customer, transaction, receipt, and account balances for the period that you specify. It
can give you a starting point to identify areas that need research. Use these reports to get the
detailed information:
• Sales Journal By Customer – Review all transactions.
• Transaction Register: Check that all items that can be posted are reflected on the Sales
Journal. The Sales Journal balance should match the total of the transactions here after
adding the credit memo total twice (because it is a negative on the Transaction Register
and a positive on the Sales Journal).
• Receipts Register: Review a list of receipts.
• Sales Journal By GL Account: Ensure that the Transaction Register matches the Sales
Journal.
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• Journal Entries Report: Review the details that make up the General Ledger journal
entries.
• Receipts Journal Report: Review details of receipts that appear in the Journal Entries
report.
• Aging Report: Use the last day of the prior month to get the outstanding opening balance.
• Transaction Detail Report: Identify transactions that increase the outstanding opening
balance.
• Adjustments Register: Identify any adjustments that affect the transactions for the month.
• Unapplied Receipts Register: Determine customer balance after taking into account all on-
account and unapplied amounts
• Applied Receipts Register: Identify receipts that reduce the outstanding opening balance.
• Invoice Exceptions Report: Identify transactions that reduce the outstanding opening

balance. This report shows all transactions where the Open Receivables flag is set to No.
Therefore, the transactions do not display on the aging but do show in the Transaction
Register. This can occur when an item can be ordered in Order Management but not
invoiced, such as an internal ordered item.
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Mapping Receivables Transactions to General Ledger Categories

Mapping Receivables Transactions to General Ledger Categories
If you experience reconciliation issues between transactions and categories use this map to
check your setup information.
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GL Reconciliation Report for Cash Management
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Project Close Cycle

Project Close Cycle
• Subledgers communicate with Oracle General Ledger through Oracle Subledger
Accounting.
• Interface costs to General Ledger: PA periods cannot be closed until all labor and usage
costs are successfully interfaced to Oracle General Ledger or Oracle Payables.
• Interface CIP Assets to Oracle Assets: Asset lines can be interfaced to Oracle Assets only
after the underlying expenditure items have been interfaced to General Ledger.
• Interface to Oracle Payables: Ensure that Oracle Payables has not closed its month until all
Oracle Projects expenditures have been interfaced, including:
- Supplier invoice adjustments
- Expense reports
- Intercompany and inter-project transactions
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Overview of Project Closing Cycles

Overview of Project Closing Cycles
Project Periodic cycles group and summarize accounting transactions for reporting and
reconciliation. Most Oracle financial subledgers use the General Ledger (GL) fiscal cycles.
Use PA period end dates to determine which GL period to assign to the transactions.
• PA periods in Oracle Projects do not have to match the General Ledger calendar period.
- PA periods typically are defined in terms of a week.
- PA periods may cross over multiple GL periods.
• To record all accounting transactions for a given period of time in Oracle Projects to
facilitate summarizing time-defined costs for review and analysis using the online and
reporting functions in Oracle Projects.
• To complete interfacing all accounting transactions for the period to the other integrated
financial systems, such as General Ledger and Accounts Payable.
• To close the current reporting period and advance to the new period for cost tracking.
Closing Cycle Preparation Tasks are:
• Verify that all preapproved batches are released or approved for the current reporting PA
period.
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• For preapproved batches, do a wildcard search from the Preapproved Expenditure Entry
window on the status field or expenditure date as appropriate.
• If Oracle Projects is the direct data source for payroll or for reconciling labor costs to
payroll, verify that all time cards are entered or accounted for.
• Run the AUD: Missing Timecards report.
• Import all transaction import batches and try to resolve any rejected expenditures from the
transaction import file.
• Run the PRC: Transaction Import process and review exception section.
• One rejected expenditure item causes an entire expenditure to be rejected. Many cost-
based tasks can affect the revenue production processes if you do them during the closing
cycle.
• Most revenue accrual relies on cost distribution being completed before generating project

revenue. Before accrual can occur, you must:
- Interface supplier invoices from Oracle Payables.
- Distribute labor, usages, and expense reports.
Closing Cycle Tasks
• Once you have verified that all transactions have been accounted for during the closing
cycle preparation activities, you should place limits on general transaction processing by
users.
• Creating new or adjusting existing expenditures during the final cost distribution processes
may cause reconciliation problems if not controlled (particularly in a geographically
dispersed user community).
• The closing process includes the following tasks, listed in chronological order:
- Run final cost distribution processes. Optionally, run the PRC: Update Project
Summary Amounts process.
- Generate project allocations.
- Run final management reports.
- Interface cost transactions with General Ledger or Accounts Payable.
- Generate draft revenue for all projects.
- Distribute Borrowed and Lent Amounts. Can be run earlier if transfer price is not
dependent on revenue.
- Generate draft intercompany invoices and (optionally) provider cost reclassification
entries.
- Interface cross charge distributions to General Ledger.
- Run final management reports for revenue.
- Run processing for inter-project billing.
- Change current PA period status to Pending Close.
- Open new PA period. Allow new expenditure entry. Adjust expenditures and perform
cost distribution processes as necessary.
Post Closing Tasks: Post-closing tasks include the following items in chronological order:
• Update project summary amount.
Period Close
• Open access to user maintenance tasks.
• Interface revenue with General Ledger (for Oracle Project Billing only).
• Set a new current reporting PA period.
• Permanently close the old PA period.
Note: You can not close the PA period until all transactions have been transferred to the
General Ledger.
Period Close
Closing a PA Period

Closing a PA Period
PA periods involve six statuses. The statuses are listed in order of life cycle:
• Never Opened: No processing
• Future: Allows new transactions to be entered but not processed
• Open: Allows all entry and processing activity
• Pending Close: Same as open but does not allow any new cost distribution lines to be
created
• Closed: Stops all processing (A PA period can be closed only when all cost distribution
lines have been interfaced with General or Accounts Payable.)
• Permanently Closed: Period cannot be reopened
Period Close
Period-Closing Exception Reports

Period-Closing Exception Reports
(N) Others > Requests > Run (B) Submit Requests
From the Submit Requests window, you can select and submit each of the exception reports.
The report is sorted by:
• PA period
• Exception category
• Exception reason
If you leave the exception category and exception reason blank, the report lists the total amount
and the total number of items.
Period Close
Foreign Currency Translation

You must define and enable your currencies.
General Ledger uses the following rates to perform foreign currency translation in accordance
with SFAS #52 (U.S.).
• Period-Average Rate – Used to translate income statement accounts.
• Period-End Rate – Used to translate balance sheet accounts.
Revaluation Rate: General Ledger enters the inverse of the period-end rate as the revaluation
rate. Revaluations are performed on accounts that have foreign currency balances at the end of
the period to properly state the balances to the current converted functional currency amount.
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Running Revaluation

Running Revaluation
Prerequisites
Before you run revaluation, you should do the following:
• Define an unrealized gain/loss account.
• Define a period end rate type and create a period end rate for each currency if required.
Running Revaluation
• Revaluation is run at the end of each accounting period as part of the close process to
revalue balance sheet accounts that are denominated in a foreign currency in accordance
with SFAS 52 (US). The journal is then reversed at the beginning of the next period. The
process is repeated until the transactions are settled. The Realized Gain/Loss is recorded in
the appropriate subledger (Payables or Receivables) and transferred to the General Ledger
at the time the obligation is settled.
Currencies
• Revaluation can be run for a single foreign currency or for All currencies. When you run
revaluation, General Ledger creates a revaluation batch containing a separate journal entry
for each revalued foreign currency. Note that General Ledger creates the revaluation
Period Close
adjustments in your functional currency. General Ledger will automatically define the
reversal period for your Revaluation Journals if the Category has been set to automatically
reverse.
Average Balance Ledgers
• When you revalue balances in an average balance ledger, General Ledger only revalues
standard balances. When you post the revaluation journal entries to update your standard
balances, the system recalculates your average balances automatically. For more
information, refer to Average Balance Processing in the Oracle General Ledger User
Guide or the General Ledger Financial Management Advanced Topic Average Balance
Processing.
• Under the SFAS 52 remeasurement (the temporal method translation), it is necessary to
remeasure foreign currency gains or losses recorded in your primary ledger currency and

recorded them in the reporting ledger currency.
Period Close
Revaluation Example

Revaluation Example
At the end of the accounting period, the revaluation process creates an unposted journal to
record the change in the converted balances to the Unrealized Gain/Loss Account. The journal
is posed, and then reversed at the beginning of the next reporting period.
In this example:
• The original journal entry in Euro remains the same.
• At period end, the exchange rate has changed to .81.
• The receivable is still 10,000 Euro, but is now $8,100 US Dollars.
• The offset of $100 is recorded in the Unrealized Gain account.
For more information on Revaluation, see the previous chapter on Multi Currency.
Period Close
Accounting Period Status

Accounting Period Status
Each accounting period has one of the following statuses:
• Future Enterable: You can enter journals, but you cannot post. The number of future
enterable periods is a fixed number defined in the Ledger window. You can change the
number of Future Enterable periods at any time.
• Open: 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.
• Closed: You must reopen Closed periods before you can post journals. You should
manually close periods after finishing your month-end processing.
• Permanently Closed: Permanently Closed periods cannot be reopened. This status is
required to archive and purge data.
Period Close
Balance Sheet Close

Balance Sheet Close
When you run Create Balance Sheet Closing Journals, journal entries are created to reverse
debits and credits of ending year-to-date actual balances for the period you want to close. The
balance, which is the net of the reversed asset and liability accounts, is transferred to the
closing account you specify. Before running this program, review the following activities:
• Create an accounting calendar that includes two adjusting periods: one for the last day of
the fiscal year you are closing, and one for the first day of the new fiscal year. This does
not affect account balances in periods used for reporting.
• Post any adjustment entries to the appropriate periods.
• Print General Ledger accounting and analysis reports.
• Ensure the period you are closing is an Open period.
• Run the close process, Create Balance Sheet Closing Journals in the last adjusting period
of the fiscal year you want to close.
• Post the balance sheet closing journals to zero-out balance sheet account balances.
Period Close
Note: Should you need to make adjustments after the balance sheet closing journals are
posted, reverse and post the original closing entries, make your adjustments, then rerun the
closing process to capture the new adjustments.
• In the first adjusting period of the new fiscal year, reverse the balance sheet closing
journals to repopulate the balance sheet accounts.
• Post the generated reversing journals.
Balance Sheet Closing Journal Attributes: The journal entry that closes the balance sheet has
the following attributes:
• Only actual balance types are closed out. Budget or encumbrance balances are ignored.
• The effective date of your closing entries is the last day of the period you select in the
Parameters window, typically an adjusting period representing the last day of the fiscal
year.

• General Ledger automatically creates a separate closing account for each balancing
segment if you specify an account range that includes multiple balancing segments.
• Closing journals are marked for reversal in the period following the period the closing
journals were generated. To change the reversal method default, see Changing The Default
Reversal Method, below.
• General Ledger closes functional currency balances only. Foreign currency balances are
ignored.
Period Close
Income Statement Close

Income Statement Close
The Income Statement Closing Journals program generates journals to close out the year-to-
date (YTD) actual balances of a range of revenue and expense accounts. This program can be
submitted for any open period.
The Income Statement Closing Journals program can accept two account templates as
parameters for the closing journal.
• The Retained Earnings account template
• The Income Statement Offset account template
The Retained Earnings account template is a required parameter. The Income Offset account
template is an optional parameter.
• Option 1: Income Statement Close: When you run the process, Create Income Statement
Closing Journals, and you enter an account for the field, Closing Account in the
Parameters window, entries are posted against each revenue and expense account in the
account range processed. It is the reciprocal of the account's YTD balance and zeroes out
each account. The amount posted to the retained earnings account is effectively the net
sum of the revenue and expense accounts' YTD balances. If there are income statement
balances in both functional and foreign currencies, the closing process produces a journal
Period Close
batch that contains separate journals for each currency processed. For the functional
currency, the journal will only have entered amounts as converted amounts do not apply.
For foreign currencies, the journal will have both entered and converted amounts. Stat
account balances are not processed by the program.
• Option 2: Income Statement Offset: When you run the process, Create Income Statement
Closing Journals, and you enter an account for the fields, Closing Account and Income
Offset Account in the Parameters window, the journal generated will be similar to that
described above except for the following:
• The revenue and expense accounts included in the specified account range will not be
zeroed out. Instead, the program will take the net sum of the revenue and expense
accounts. This sum includes the balance in the income statement offset account. It will
then post the reciprocal of the net sum to the income offset account, in the appropriate
debit (DR) or credit (CR) column. The amount posted to the retained earnings account will

be the reciprocal of the amount posted to the income offset account. This retained earnings
amount will then also be equal to the net sum of the revenue and expense accounts
processed.
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Historical Rates

Historical Rates
Historical rates are:
• More precise than pre-owned rates with respect to equity accounts.
• Defined before running translation to avoid having to retranslate your balances.
• Can stabilize the translate balances by defining fixed historical rates for long-term
accounts.
• Used with highly inflationary currencies to remeasure specific historical account balances
in accordance with U.S. FASB 8.
Period Close

Foreign currency translation lets you restate your functional currency account balances into a
reporting currency.
• Translate actual and budget balances from functional currency to foreign currencies for
online inquiries, reports, and consolidations.
• If you have average balance processing enabled, you can translate average balances as
well as standard balances.
• If you want to report financial results in Euro, you can use General Ledger's translation
feature to translate your account balances from your functional currency to Euro.
• Run translation after you have completed all journal activity for an accounting period. If
you post additional journal entries or change your translation rates after running
translation for a period, you must retranslate.
Note: Additionally, if you change the account type for an account segment value and want to
retranslate your actual account balances, you must reenter or change the period-end and
average exchange rates for the periods that you want to retranslate.
Period Close
Quiz

Answers: 2
Quiz Specifications
• The correct answer is each accounting period has one of the following statuses:
- Future Enterable: You can enter journals, but you cannot post. The number of future
enterable periods is a fixed number defined in the Ledger window. You can change
the number of Future Enterable periods at any time.
- Open: 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.
- Closed: You must reopen Closed periods before you can post journals. You should
manually close periods after finishing your month-end processing.
- Permanently Closed: Permanently Closed periods cannot be reopened. This status is
required to archive and purge data.
Period Close

The consolidation process combines the financial results of different companies, typically
combining subsidiary accounting information into a parent company for reporting purposes.
You can use the method that best suits your needs to consolidate financial information.
• Financial Statement Generator (FSG):
- Use to consolidate financial information for businesses using a single ledger or
businesses using different ledgers that share the same calendar and chart of accounts.
- Use recurring journals, mass allocation journals, and standard journals to create
intercompany elimination journal entries for multiple companies sharing the same
ledger.
• Global Consolidation System (GCS):
- Use to consolidate financial information for multiple ledgers, diverse financial
systems, and geographic locations, including both Oracle and non-Oracle
applications.
- Use the Consolidation Workbench in GCS to:
Access windows used to perform each consolidation activity
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Monitor the status of your consolidation
View history of past consolidations
Period Close

Consolidation Workbench: View the status of your consolidation and monitor subsidiary
account balances for any changes that occur after the subsidiary data has been transferred.
Mapping Rules: Determine how your subsidiary account balances roll up into the parent.
State Controller: Access to every form you need for consolidations and guides you through the
consolidation process.
Consolidation Hierarchy Viewer: View the multilevel structure of your consolidation mapping
in a graphical format to see relationships and analyze ledger information.
Automatic Elimination Entries: Automatically generate journal entries to eliminate
intercompany balances based on rules you define.
Multilevel Drilldown: Drill down to access account balances, journal entries, and subledger
transactions.
Reporting: Generate standard or custom reports that can be published to a text file, spreadsheet,
or web site for review and analysis.
Integrated Analysis: Perform multidimensional analysis of consolidated financial data using
Oracle Enterprise Planning and Budgeting. Oracle Enterprise Planning and Budgeting is tightly
Period Close
integrated with Oracle General Ledger. After consolidating your companies' information, you
can analyze the data using multiple scenarios.
Period Close
Consolidating Ledgers

Consolidating Ledgers
After defining a consolidation to map accounting information from a subsidiary ledger into a
parent ledger, you must run the consolidation to generate the consolidated information.
When a consolidation is run, Oracle General Ledger submits a concurrent process that
populates the GL_INTERFACE table with consolidation data.
You must run Journal Import to create an unposted consolidation journal batch in your parent
ledger, either at the time you run consolidation or later using the Import Journals window.
For more information on Consolidation, see the previous chapter on Consolidations.
Period Close
Reporting Options

Reporting Options
Reporting Function Legend
• OI - Online Inquiry
• Std - Standard Reporting
• FSG - Financial Statement Generator
• Report Manager – Report Manager
• EPB - Oracle Enterprise Planning and Budgeting
• BIS - Business Intelligence System
• Disc - Discoverer
• RXi - RXi Report Administration Tool
Period Close

Use the account inquiry feature to view actual, budget, and encumbrance account balances for
a specific period or periods in either entered or balance level reporting currencies.
You can select one of three buttons to access the type of account information you want to view:
• Show Balances: Displays PTD and YTD account balances by period for both detail and
summary accounts.
• Show Journal Details: Lists all the journal batches and entries that affect the account
balance. From here you can drill down to the full journal entry and subledger transaction.
• Show Variance: Displays actual vs. budget or encumbrance amounts and the variance for
PTD, QTD, YTD, and PJTD (project-to-date) time periods.
Note: The Account Inquiry window displays balances from posted journal entries. To get the
most up-to-date account balance information, be sure all journal entries are posted.
Period Close
Helpful Closing Reports

Helpful Closing Reports
Select the Report button on the State Controller to submit standard consolidation reports or (N)
Others > Reports > Run (B) Submit Requests
• Consolidation Audit Report: Use this report to review the mapping of account balances
from your subsidiary ledger into accounts in your parent ledger for a specific
consolidation mapping. It reports the total of all subsidiary account balances that were
consolidated into each account in your parent ledger.
• Consolidation Exception Reports:
- Unmapped Subsidiary Report: Use this report to determine if your consolidation is
complete prior to posting. It reports any subsidiary accounts, included in the account
range you specified for your consolidation transfer, with non-zero balances that were
not consolidated into your parent ledger because the accounts were not mapped.
- Disabled Parent Account Report: Use this report to review all disabled accounts in
your parent ledger for which you tried to consolidate balances or transactions.
Consolidation Rules Report: This report prints the segment and account rules defined
for a specific consolidation mapping.
Period Close
• Consolidation Journals Report: This report lists subsidiary journal lines and the parent
accounts used for your consolidation. Use this report to review journal batches
consolidated across multiple ledgers.
Note: The Consolidation Audit Report, Unmapped Subsidiary Report, and Disabled Parent
Account Report are available only if you select the audit mode run option when transferring
your subsidiary data.
Select (N) Others > Reports > Run (B) Submit Requests to run standard trial balance reports:
• Detail Trial Balance Report: Review your general ledger actual account balances and
activity in detail. You can run this report for balances and activity entered in your
functional currency or STAT, or translated to a foreign currency. The report prints a line
for each of your accounts and lists them in ascending order by account segment value. For
each account, the report prints the account segment value, account segment value
description, beginning balance, period activity, and ending balance for the period you

specify. General Ledger reports debits as positive amounts and credits as negative
amounts.
• Summary Trial Balance Report: Review general ledger actual account balances and
activity summarized by account segment value. You can run this report for balances and
activity entered in your functional currency or STAT, or translated to a foreign currency.
The report prints a line for each account segment value and lists them in ascending order.
For each account segment value, the report prints the value, description, beginning
balance, net of all debit or credit transactions, and ending balance for the period you
request.
• Translation Trial Balance Report: Review your account balances and period activity after
running translation. General Ledger prints a separate page, including totals, for each
balancing segment value, listing accounts in ascending order by account segment value.
For each translated account, the report prints the description of the account segment value,
account type, beginning balance, debits and credits, rate adjustment, and ending balance.
Period Close
Quiz

Answers: 5
Quiz Specifications
• The correct answer is Consolidation Journals Report: This report lists subsidiary journal
lines and the parent accounts used for your consolidation. Use this report to review journal
batches consolidated across multiple ledgers.
Period Close
Summary
Period Close
Period Close
Financial Reporting
Chapter 12
Financial Reporting
Chapter 12 - Page 1
Financial Reporting
Chapter 12 - Page 2
Financial Reporting
Financial Reporting
Chapter 12 - Page 3
Objectives
Financial Reporting
Chapter 12 - Page 4
Objectives (continued)
Financial Reporting
Chapter 12 - Page 5
Reporting Options

Reporting Options
Reporting Function Legend
OI - Online Inquiry
Std - Standard Reporting
FSG - Financial Statement Generator
Report Manager
EPB - Oracle Enterprise Planning and Budgeting
BIS - Business Intelligence System
Disc - Discoverer
RXi - RXi Report Administration Tool
Additional details about each of the reporting options are available in the following pages.
Financial Reporting
Chapter 12 - Page 6
Online Inquiry

Online Inquiry
Oracle Applications provide broad online inquiry and analysis capabilities. With Oracle
General Ledger, you can use Oracle's inquiry functionality to drill from summary account
balances to detail balances, and to complete journal entries. You can drill to complete views of
any underlying Oracle subledger transactions for further accounting entry analysis, including
transactions from Receivables, Payables, Projects, Assets (except depreciation), Purchasing,
Inventory, and Work in Process.
Drilling Down to Detail Balances
• You can drill down to detail account balances, review journal entries, then drill down
further to your subsidiary ledgers, review subsidiary account balances, then drill down
even further to subsidiary journal entries and even to your subsidiaries' subledger details.
• For example, while analyzing total consolidated sales, you may want to determine how
much each subsidiary contributed to the total amount. Simply drill down from the
consolidated sales balance to any subsidiary sales account balance. From there, you can
view account details and journals. If you still require more information, drill down further
to the subledger transactions that contributed to your total consolidated sales balance.
Financial Reporting
Chapter 12 - Page 7
• During the drill down process, you can view your accounting entries in a T-Account
format or a Summary Activity format. The T-Account format eases accounting analysis by
graphically displaying your accounting entry in T-Accounts for both summary and detail
financial information. The Summary Activity format displays your accounting entries in a
trial balance layout.
• For more information, refer to Oracle General Ledger User Guide or General Ledger
Financial Management Fundamental Topic Journal Entries on Performing Account
Inquiry and Drill Down to Oracle Subledgers.
Financial Reporting
Chapter 12 - Page 8
When to Use Online Inquiry
Financial Reporting
Chapter 12 - Page 9
Standard Reports and Listings

Standard Reports and Listings
Oracle General Ledger provides several types of reports and listings to meet your business
needs. All of the information in these reports and listings is also available online.
You can obtain account analysis information, budget information, chart of accounts listing, and
many other types of data without customization.
• Run in the background while working online
• Group reports into report sets
• Schedule reports to run at regularly scheduled intervals
• Secure access using segment values
Financial Reporting
When to Use Standard Reports
Financial Reporting
Financial Statement Generator Features

Financial Statement Generator Features
Oracle General Ledger's Financial Statement Generator empowers you to do the following:
• Generate financial reports, such as income statements and balance sheets, based upon data
in your general ledger.
• Apply security rules to control what financial information can be printed by specific users
and responsibilities in any reports they run using FSG.
• Define your reports with reusable report objects, making it easy to create new reports from
the components of reports you've already defined.
• Design custom financial reports to meet specific business needs.
• Print as many reports as you need, simultaneously.
• Print the same report for multiple companies, cost centers, departments, or any other
segment of your account structure, in the same report request.
• Schedule reports to run automatically.
• Produce ad hoc reports whenever you need them.
• Print reports to tab-delimited files for easy import into client-based spreadsheet programs.
Financial Reporting
You can define custom financial reports, such as income statements and balance sheets, online
with complete control over the rows, columns, and content of your report. You can control
headings, descriptions, format, and calculations in addition to the actual content. The reusable
report components make building reports quick and easy. You can copy a report component,
make minor edits, then apply the report component to a new report without having to create a
new report from scratch.
Financial Reporting
FSG Hierarchical Security

FSG Hierarchical Security
• Uses the same segment value security rules based on parent hierarchies as those defined
for online inquiries and most major general ledger standard reports.
- This allows you to protect sensitive financial information from being viewed in FSG
reports by any responsibility that has security rules assigned.
• Significantly simplifies the definition and maintenance of complex security rules.
- When you add new segment values, you do not have to update the security rules if
that value is assigned to a parent value with security rules already defined.
- If you define a security rule to include or exclude a parent segment value, any FSG
report that you run from the responsibility to which you assigned this rule will include
or exclude data for the parent segment value and its child values accordingly.
- Any additions or changes to your organization rollup structures will be reflected in
both your reporting and security hierarchies simultaneously.
Financial Reporting
Defining Row Sets

Defining Row Sets
A single row set can be used for many different reports. For example, Row Set A above is used
for an Income Statement with current information for Company 1. It can also be used to
produce an Income Statement by Division, such as in the second example above, or for any
other entity (company, group, or cost center), or for the same entity with a yearly comparison
column.
Financial Reporting
Define Column Sets

Define Column Sets
• Column sets define the format and content of columns in your financial reports. Column
sets include headings and subheadings, currency assignments, amount types, exception
conditions, and calculation columns for totals.
• You can define columns one by one as you do for row sets, or you can build a column set
graphically.
• When you define a column set, you indicate which Oracle General Ledger balance type
you want to include in the column.
• Although you normally assign accounts to your rows, you can also assign an individual
account combination or range of account combinations to each column.
• You can define calculations to perform a variety of complex computations in your report
• The calculations can reference other columns in the report.
• You can define a new column set, copy information from an existing column set, or use
one of the standard column sets provided by Oracle General Ledger.
Financial Reporting
When to Use FSG Reports
Financial Reporting
Using Ledger Sets in FSG Reports

Using Ledger Sets in FSG Reports
To achieve processing efficiencies, such as opening periods for multiple ledgers or
summarizing balances across ledgers using FSGs, you can group multiple ledgers into a
ledger set. All ledgers in a ledger set must share the same chart of accounts and accounting
calendar/period type combination. This includes reporting currencies at the Journal and
Subledger levels that you may want to combine with the primary ledger to allow you to
synchronize accounting periods or view data across ledgers.
The same ledger can belong to multiple ledger sets, and ledger sets can contain other ledger
sets.
Note: When you define a ledger set, you must specify a default ledger for Financial
Statement Generator (FSG).
You can define FSG reports to be reusable for different ledger sets by specifying the ledger
set at report generation time as opposed to in the report definition.
Display Types
The display type controls the level of detail FSG will show on your report for individual
report lines.
Financial Reporting
• Expand: If you choose Expand for the ledger segment and the ledger segment value is a
ledger set, the FSG report displays individual rows for the ledgers of the ledger set and
shows the ledger short names. The ledgers are listed in order of their ledger short name.
• Total: This display type controls the level of detail FSG will show on your report for
individual report lines. If you choose Total for the ledger segment and the ledger segment
value is a ledger set, the FSG report totals the ledgers in the ledger set and displays rows
for the totals without displaying the individual ledgers.
• Both: If you choose Both, your report will include both the expanded detail and the total.
If you choose Both for the ledger segment and the ledger segment is a ledger set or ledger,
the FSG report displays both the expanded detail and total rows for the ledger and ledger
set.
Note: You must use a display type of T (Total) for each segment if you assign a
ledger/ledger set or accounts to a column.

Note: FSG does not support expanding across a ledger set within a single column. If you
want to report on a ledger set across columns, you must explicitly specify the ledger or
reporting currency to report on in each column.
Assigning Accounts
You assign accounts by entering one or more account ranges. Optionally, enter a ledger set in
the ledger segment of the account assignments. You can also provide the ledger segment
value at runtime.
Financial Reporting
Business Intelligence Publisher and Templates

BI Publisher and Templates
Business Intelligence Publisher Basic Report Template
General Ledger provides a basic report template, FSG: Basic Template, for you to use for
your FSG reports. You may use the formatting provided in this report template for your
FSG reports or you can modify the template and save it as a new template or create a
completely new one. The FSG: Basic Template is formatted for a dynamic number of
columns, since the number of columns will vary for every FSG report.
Note: The FSG: Basic Template uses the Arial font. If your FSG reports use the Arial font
and they use row orders or the display types of Expand or Both, the row descriptions may
be misaligned. To avoid misalignment, create a template that uses a fixed width font, such
as Courier.
XML Output Files
XML output files are composed of elements. Each tag set is an element. When a report
template is designed, you define placeholders for the elements. The placeholder maps the data
field to an element in the XML output file.
Financial Reporting
Publishing FSG Reports with BI Publisher

Publishing FSG Reports with BI Publisher
To publish a FSG report, perform the following high-level steps:
1. If you do not use an existing RTF template, design your rich text format (RTF) report
template in your word processing application. A basic report template is
provided for you to use or modify as a new report template.
2. For new report templates, register the template using the Business Intelligence Publisher
Administrator responsibility so the designed layout can be applied to a FSG report.
3. Define your FSG report. You can select the XML output option as the default or you can
select it when you generate the FSG report.
4. Generate your FSG report using the XML output option.
5. Use Business Intelligence Publisher to publish your FSG report using the formatting of
your report template to feed the XML output into Business Intelligence Publisher.
Note: Alternatively, publish your FSG report with a single submission request that generates
your XML output and publishes your FSG report from one request.
Options for Publishing Your FSG Reports
Financial Reporting
To generate financial reports with Business Intelligence Publisher, you have several options
for publishing your FSG report:
• Publish your FSG report with Business Intelligence Publisher in one step. This
automatically creates your FSG report in XML output and uses that output to publish your
FSG report from a single submission request. You do this through the Submit Requests
window.
• Generate your FSG XML output from the Run Financial Reports window or from the
Submit Requests window. Then separately run the Business Intelligence Publisher
program from the Submit Requests window against that request to apply the layout and
formatting of a report template to your FSG report.
• After the XML output of your FSG report has been generated the first time, you can
republish the FSG report against a different report template to obtain a different report
layout and format without having to run the FSG program again.
Financial Reporting
Quiz

Answers: 2
Quiz Specifications
• The correct answer is to publish a FSG report:
- Design your RTF report template
- Register the new template using the Business Intelligence Publisher Administrator
responsibility
- Define your FSG report
- Generate your FSG report
- Use Business Intelligence Publisher to publish your FSG report
Financial Reporting
When To Use Report Manager

When To Use Report Manager
Use Oracle Report Manager when you need to:
• Provide a centralized report distribution system for point-in-time reports.
• Submit and publish Financial Statement Generator (FSG), Ad Hoc FSG, Variable Format,
and Standard reports to a central repository.
• Present reports in the repository to information consumers via menu items on the Oracle
E-Business Suite Home page or portal.
• Approve reports before making them available for general viewing.
• Permit report availability in a future timeframe.
• View spreadsheets or PDF files for further analysis.
• Secure reports by utilizing three security paradigms: User to Value, custom, and flexfield
segment.
• Archive reports for future reference that no longer needs to be displayed to report
consumers.
• Publish reports that have been submitted as part of request sets or report sets.
Financial Reporting
• Upload any type of file and publish it to a central repository. Reports in the repository can
then distributed to the Oracle E-Business Suite home page.
Financial Reporting
Business Intelligence

Business Intelligence
Oracle Business Intelligence (BI) is an executive information system which provides a
framework for corporate performance management and continuous process improvement. By
delivering timely and accurate information, BI enables managers to make better decisions,
faster. Oracle Business Intelligence System is part of the Oracle eBusiness Suite, an integrated
suite of e-business applications for the enterprise, which is designed to transform your business
into an e-business.
Oracle Business Intelligence can analyze the back office and front office data provided by the
Oracle eBusiness Suite. This includes ERP applications such as Financials, Human Resources,
Purchasing, Operations, and Manufacturing, and CRM applications supporting Sales, Service,
Customer, Marketing, and Interaction Center (Call Center). Users can set targets to meet their
strategic objectives, monitor performance in all areas of the company, receive notifications
when performance is out of tolerance, and respond immediately by taking corrective actions.
One of the many components in BI are the reports, performance measures, and workbooks
delivered by Oracle General Ledger.
These BI components are integrated with an alert and workflow mechanism to proactively
communicate operational performance to the management team. Management can then drill
Financial Reporting
from high level financial information into more detail level data based on the dimensions they
choose; including ledgers, operating units, cost centers, and product groups.
General Ledger provides the following seven informative reports in BI:
1. Revenues Report
2. Expenses Report
3. Profit Margin Report
4. Contribution Margin Report
5. Current Ratio Report
6. Earnings Per Share (EPS) Report
7. Summary Analyst Report
Financial Reporting
When to Use E-Business Intelligence
Financial Reporting
Oracle Discoverer

Oracle Discoverer
Oracle Discoverer is an intuitive ad-hoc query, reporting, analysis, and Web-publishing tool
that empowers business users at all levels of the organization to gain access to information
from data marts, data warehouses, and online transaction processing systems.
Report builders and analysts can create, modify, and execute ad hoc queries and reports. More
casual users can view and navigate through pre-defined reports and graphs. Discoverer
provides a business view to hide the complexity of the underlying data structure. It enables
users to focus on solving business problems instead of data access issues.
Discoverer Key Characteristics
• Works on Oracle 8i and 9i
• Built-in structure for BIS
• Can include operations data
• Security rules already defined apply
• Non multi-dimensional table - uses rows and columns
Financial Reporting
When to Use Oracle Discoverer
Financial Reporting
Preparing Your FSG Report

Preparing Your FSG Report
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.
Financial Reporting
Building Basic Reports

Building Basic Reports
Basic reports consist of a few headings to describe the information in the report, followed by
the report data, which is often presented in tabular form as a series of intersecting rows and
columns. Basic reports are two dimensional, similar to what you might create in a spreadsheet.
Financial Reporting
Financial Statement Generator

Financial Statement Generator
You can define custom financial reports, such as income statements and balance sheets, online
with complete control over the rows, columns, and content of your report. You can control
headings, descriptions, format, and calculations in addition to the actual content. The reusable
report components make building reports quick and easy. You can copy a report component
from one report, make minor edits, then apply the report component to a new report without
having to create a new report from scratch.
Row Set
• A required report component that defines the rows of your report. Typically, accounts are
assigned to row set definitions. For each row, you control the format and content,
including line descriptions, indentations, spacing, page breaks, calculations, units of
measure, and precision.
Column Set
• The second required report component that defines the columns of your report. Typically,
amount types are assigned to column set definitions. You control the format and content of
each column.
Report
Financial Reporting
• You build a report by defining then combining up to five reusable report components. At a
minimum, you must have a row set and column set for every report. Before you define a
report using the Financial Statement Generator (FSG), 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.
Financial Reporting
Steps for FSG Financial Reports

Steps for FSG Financial Reports
All reports require a row set and a column set. There are three other optional report
components that are used to apply special formatting to your reports. For example, you can
hide specific rows, rearrange the sort order of your rows, display the account value and/or
description, or print reports by any accounting flexfield segment, such as department, on
separate pages.
Report Sets
• A report set is a group of FSG reports. Typically, report sets are used to group reports you
run together frequently. For example, you can create a month-end report set that includes a
balance sheet, an income statement by department, an income statement by company, and
a budget vs. actual income statement in a single submission without having to run each
report separately.
Financial Reporting
Defining Row Sets

Defining Row Sets
• A single row set can be used for many different reports. For example, Row Set A above is
used for an Income Statement with current information. It can also be used to produce an
Income Statement for any other entity (company, division, group, or cost center), or for
the same entity with a yearly comparison column.
• A Row Set defines the format and content of the rows in an FSG report. In FSG, the
commonly assumed attribute for a row definition is an account assignment, whereas the
attribute for a column definition is a time period or amount type. When you define a row
set, you can:
Assign accounts:
• To indicate which general ledger account balances you want to include in the row. You
can assign an individual account, parent account, or range of accounts to each row.
Define calculations:
• To perform a variety of complex computations in your report. The calculations can refer to
any previous rows in a report, including rows you choose not to display.
Specify formatting:
Financial Reporting
• To control page breaks, indentation, line spacing, and underline characters. You can define
a new row set, or use FSG's AutoCopy feature to copy an existing row set, which you can
then modify as needed.
Note: If you have average balance processing enabled in your ledger, you can report on
functional, foreign, and translated average balances.
Implementation Note
Row Set:
• When creating a balance sheet, you must include your entire income statement account
range for the Current Period Retained Earnings amount. Oracle General Ledger never
posts the monthly net income amount to an actual current period retained earnings
account. This only happens when the first period of a new fiscal year is opened. Thus, to
achieve the figure for current period retained earnings, it is a reporting solution where you
enter your Profit and Loss account range in the account assignment.

• When creating reports, it is a good idea to include check figures at the end of the report to
verify that all accounts were properly assigned in the reports. This is particularly useful if
you have had to enter account ranges with gaps because of the structure of your chart of
accounts.
• For example, when creating a Balance Sheet, add check figures at the end of the report
defined as follows:
- Total Assets 1000-1999
- Total Liabilities 2000-2999
- Total Stockholder's Equity 3000-9999.
Note: To derive the net income amount that is usually posted to current period retained
earnings, you must include your income statement account range.
Assigning Line Numbers to Rows:
• You should enter line numbers in increments of 10 to allow for space to add additional
rows for future modifications.
Account Assignment Display Option:
• Oracle General Ledger stores debit balances as positive numbers and credit balances as
negative numbers. If you want your credit balance accounts, such as liabilities, and
revenues to display as positive numbers, select the Change Sign check box. Doing so will
have no effect on your calculations.
Financial Reporting
Assigning Accounts

Assigning Accounts
Select the Account Assignments button to assign accounts for a row set.
Select a numeric operator (+ or -) to add or subtract the totals for the account range.
Enter a Low and High for the range of account combinations. To specify an individual account,
enter the same account as the Low and High. You can leave these fields blank to create generic
row sets with universal account assignments.
Enter a Display type for each account segment:
• Select "E" to expand the range and display one report line for each segment value.
• Select "T" to total the amounts in the range and display only one total line for the segment
values.
• Select "T" for each segment of the range if multiple account ranges are assigned to a row.
• Select "B" to display both the expanded detail and the Total. "B" combines the effects of
"E" and "T".
Implementation Note
Account Assignment:
Financial Reporting
• You should always enter a unique Row Name for every row. The Row Name does not
appear in any reports, but it does appear in lists of values when you perform calculations.
If the row is simply a label, for example, "Current Assets", that does not have any
accounts assigned to it, you should append the row name with the word "label" to let you
know that this row contains no accounts and you will not need to include it in your
calculations. Also be sure the row name is unique to ensure that calculations yield the
correct results. If you use the same row name for two different rows, FSG will not know
which row to use.
• Consider creating generic row sets by applying "T" display types for each account
segment. You can later define content sets to create more specific reports.
Financial Reporting
Defining Calculations in Row Sets

Defining Calculations in Row Sets
Median - The midpoint or the middle value.
Average - The value obtained by dividing the sum total by the number.
Standard Deviation - A value obtained by dividing by one less than the number of squares in
the sum of squares.
Absolute Value - Debit and credit values are both displayed as positive numbers.
Note: Because Balance Control and Display Options are usually defined for columns, they are
covered in the Defining Column Sets section. However, they may also be defined for rows.
Implementation Note
Row Set Calculations:
• Oracle General Ledger stores credit balances as negative numbers and debit balances as
positive numbers. For example, revenue accounts are stored as negative numbers and
expense accounts are stored as positive numbers. Therefore, you should define your
calculations accordingly. For example, to create a row called Gross Margin that calculates
revenues minus costs, you should add (not subtract) your costs row to your revenue row.
Financial Reporting
Reviewing Your Row Set Definitions

Reviewing Your Row Set Definitions
The main difference between these two reports is that the FSG - Row Set Summary Listing
summarizes all row sets while the FSG - Row Set Detail Listing details only one row set.
Financial Reporting
Defining Ad Hoc Reports

Defining Ad Hoc Reports
To run ad hoc reports, you select report objects and other report parameters during the report
submission process. With predefined report, you can run the report with the parameters you
saved in the report definition or you can change the parameters at runtime.
Note: If you change the parameters at runtime, FSG will not save them in the stored report
definition.
Financial Reporting
Defining Column Sets

Defining Column Sets
• Column sets define the format and content of columns in your financial reports. Column
sets include headings and subheadings, currency assignments, amount types, exception
conditions, and calculation columns for totals.
• You can define columns one by one as you do for row sets, or you can build a column set
graphically.
• When you define a column set, you indicate which Oracle General Ledger balance type
you want to include in the column.
• Although you normally assign accounts to your rows, you can also assign an individual
account combination or range of account combinations to each column.
• You can define calculations to perform a variety of complex computations in your report.
• The calculations can reference other columns in the report.
• You can define a new column set, copy information from an existing column set, or use
one of the standard column sets provided by Oracle General Ledger.
Implementation Note
Column Sets:
Financial Reporting
• When using the Quarter-To-Date (QTD) Amount Type in column sets to perform
quarterly reporting, you will need to create four different column sets if you are using a
non-standard calendar, such as a 13 period calendar because 13 does not divide evenly
into 4 and the period offsets will not give the desired results.
Column Set Amount Types:
• When creating column sets that will be coupled with Balance Sheet Row Sets, be sure to
use the Year-to-Date (YTD) amount type. Oracle General Ledger does not store YTD
balances. Thus, in order to achieve a cumulative total on balance sheet accounts, you must
have FSG calculate the amount for you using the YTD amount type.
Financial Reporting
Applying Column Set Relative Headings

Applying Column Set Relative Headings
&POI:
• Enter &POI, followed by a number from -999 to +999 that refers to the relative period
offset of your column.
- For example, enter &POI0 to display amounts for the period you specify at run time,
enter &POI-1 to display amounts one period before the period you specify at run
time.
&BUDGET:
• Enter &BUDGET, followed by a control value number to print the budget name assigned
to the control value number when you define or run your report.
&DOI:
• Date of interest, the date for which you want to run the report.
&ENCUMBRANCE:
• Enter &ENCUMBRANCE, followed by a control value number to print the encumbrance
type assigned to the control value number when you define your report.
&CURRENCY:
Financial Reporting
• Enter &CURRENCY, followed by a control value number to print the currency assigned
to the control value number when you define or run your report column.
Financial Reporting
Standard Column Sets

Standard Column Sets
• Columns containing actual amounts for multiple consecutive periods (trend reports)
• Actual, budget, and variance columns (control reports)
The generic column sets can be used for the following reports:
Income Statements
• Functional: Breaks out expenses by functional area
• Natural Account: Lists expenses by account or groups of related accounts
Balance Sheets
• Detail balance sheet accounts
• Summary balance sheet accounts
Other Reports
• Statement of changes to financial position
• Daily activity reports
You can define these reports at whatever level of detail is appropriate for your business.
Financial Reporting
Reviewing Your Column Set Definitions
Financial Reporting
Row Set and Column Overrides

Row Set and Column Overrides
Row Overrides Column
• Amount Type
• Period Offset
• Control Value (Must assign same currency or budget type at row and column level)
• Format Mask
• Factor
• Display Zero
• Level of Detail
Column Overrides Row
• Override Row/Column Calculations (Conflict exists only if the same value (Yes or No) is
entered at both the row and the column set levels)
• Activity
Other Conflicts
• Accounts: Report uses intersecting accounts.
Financial Reporting
• Summary: Must assign the same summary option at the row and column level.
• Currency: Must assign the same currency at the row and column level.
• Change Sign: Yes overrides No.
• Change Sign on Variance: Yes overrides No.
Financial Reporting
Defining and Requesting Financial Reports

Defining and Requesting Financial Reports
• Once you define a report, you can save it and use it whenever you run a financial report or
define a report set.
• You can copy a financial report you have already defined and modify the new report as
necessary.
• You can also define ad hoc financial reports as necessary to meet special reporting needs.
Caution: If the same Row Set is used in ten different reports and you later modify the Row Set,
the ten reports will be affected.
Implementation Note
Ad Hoc Reports:
• All ad hoc reports are saved by FSG to be rerun in the future. You can delete each report
individually in the Define Financial Report window or you can delete all of them at once
by running the Program Delete Ad Hoc Reports from the Submit Requests window.
Running Reports:
• If your FSG reports are not producing output or you are having trouble getting a
complicated report definition to work correctly, you should view the log file for the
Financial Reporting
Financial Statement Generator in the Requests window. If the error message in the log file
is not detailed enough, change the user profile option FSG: Message Detail to full.
Financial Reporting
Handling Rounding Problems
Financial Reporting
Specifying Control Values

Specifying Control Values
You can report on budgets, encumbrance types, and other currencies by using control values.
Control values are numbers that you specify in the Control Value field, of the Balance Control
options region, on row sets and column sets. When you define a financial report applying the
row set or column set containing a control value, you must specify what the control value or
number represents in the Define Financial Report window. There is a Control Value button
located on the Define Financial Report window which opens the Control Values window.
Here, you specify a number and a budget name, encumbrance type, currencies, and/or constant
periods of interest to those values. For currencies, you can specify entered currencies or
balance level reporting currencies.
For example, if you define a column set and specify a control value of "1", you refer to the
same number in the report definition and assign either a budget name, encumbrance type,
currency, and/or constant periods of interest to associate with the control value.
Notes:
• You must assign the same budget, encumbrance type, or currency to intersecting row and
column control values.
Financial Reporting
• You cannot enter currencies in the report definition if the report does not contain a row
and/or column set with a currency control value.
• You must specify a budget or encumbrance when your report includes rows or columns
which use related amount types, such as PTD-Budget or PTD-Encumbrance.
Financial Reporting
Defining Content Sets

Defining Content Sets
Even though content sets are optional, they are the most powerful component of all FSG
components.
By assigning a content set to a report request, you can generate hundreds of similar reports in a
single run. The content set controls how the numerous reports differ from each other. For
example, you can define a departmental content set which prints a separate report for each
department or you can apply a content set to an expand row set to print a total report.
Content sets work by overriding the row set definition of an existing report and replacing the
row set account assignments and/or display options.
Content sets can be saved as part of a report definition, or can be added dynamically at the time
you request an FSG report.
Hint: Consider using content sets exclusively to control the specific output for each report.
Financial Reporting
Selecting Display Options

Selecting Display Options
You can enter a display option for each account segment range to designate how you want to
display information in a report and whether to print single or multiple reports.
RE - Row/Expand:
• Select RE to expand the range and display a separate line for each segment value in the
range. If you are using parent values, enter the same value as the high and low. Oracle
General Ledger displays only the children (or grandchildren). This is the same as selecting
Expand for row sets.
RT - Row/Total:
• Select RT to total the amounts in the range and display only one line as the Total line. This
is the same as selecting Total for row sets.
RB - Row/Both:
• Select RB to expand and total the range. RB will display a separate line for each segment
value and display a total for all the segment values. This is the same as selecting Both
when defining row sets.
CT - Column/Total:
Financial Reporting
• Select CT to total the range and display only the total for the segment values. This has no
effect on the report display.
PE - Page Expand Report:
• Select PE to expand the range and create a separate report for each segment value in the
range. If you are using parent values, enter the same value as the high and low. Oracle
General Ledger displays only the children (or grandchildren).
PT - Report/Total:
• Select PT to total the segment value range and display the total on one page.
• N - No override: Select to use display options entered in the row set definition.
Implementation Note
Display Options:
• Page Expand (PE) Report is the most commonly used display option. It allows you to

perform consolidation within FSG.
Financial Reporting
Reviewing Your Content Set Definitions
Financial Reporting
Defining Row Orders

Defining Row Orders
You can use a row order with row expand row sets or content sets to control how expanded
detail rows are displayed in your report.
You can do the following:
• Display account descriptions in addition to or instead of segment values.
• Sort detail rows by amounts displayed in a column.
• Sort detail rows by account segment values or segment value descriptions.
• Rearrange the sequence of your account segments to fit specific reporting needs.
• Suppress descriptions for particular account segments.
Financial Reporting
Ranking Methods

Ranking Methods
Oracle General Ledger offers several ways to order and display expanded detail rows. Select a
ranking method and to display segment values, segment value descriptions, or both.
Alternatives include the following:
• Order by ranking, display description: For example, department number.
• Order by ranking, display both: For example, the name of the department.
• Order by description, display description: For example, department description.
• Order by description, display value
• Order by value, display description
• Order by value, display value
Financial Reporting
Order by Ranking - Display Description
Financial Reporting
Order by Description - Display Description
Financial Reporting
Order by Value - Display Value
Financial Reporting
Order by Value - Display Description

Order by Value - Display Description
In this example, the columns are order by the segment value unless a user was familiar with the
segment value, the report would appear to be in no particular order.
Financial Reporting
Reviewing Your Row Order Detail Listing Report
Financial Reporting
Copying Reports and Components

Copying Reports and Components
You can copy existing row sets, column sets, content sets, row orders, display sets, reports, and
report sets to create new report objects.
After you copy a report object, you can modify the new object instead of recreating a new
object from scratch.
Caution: Modifying a report object will affect all reports that use the report object. To avoid
affecting all reports that use a report object you want to modify, use AutoCopy to create a copy
of the report object, then apply the desired modifications to the copy of the report object.
Financial Reporting
FSG Report Prerequisites

FSG Report Prerequisites
• To control the print orientation of reports that are less than or equal to 80 characters wide,
set the user profile option FSG:Allow Portrait Print Style.
• To limit what financial information can be printed by specific users on their FSG reports,
define security rules and enable them for use with FSG.
• To run reports through standard request submission, your System Administrator must
assign Program - Run Financial Statement Generator to the report security group for your
responsibility.
Note: We recommend that you run the General Ledger Optimizer program before you run your
monthly reports. This will help your financial reporting processes run faster. Program
Optimizer is run from the standard report submission window.
Financial Reporting
Enabling FSG Security

Enabling FSG Security
If you have General Ledger Super User or System Administrator responsibility, you can define
security rules to control what financial information specific users can print when they run FSG
reports. For example, you can prevent Company 01 users from printing reports for Company
02 and vice versa.
Financial Reporting
Run FSG Reports from Standard Request Submission

Run FSG Reports from Standard Request Submission
You can request reports from the Run Financial Reports window or through standard request
submission (Submit Requests window). The advantage of requesting reports through standard
request submission is that you can schedule the reports to run automatically. You can also
combine FSG reports with standard reports, listings, and programs. The disadvantage is that
you cannot run report sets through standard request submission.
Financial Reporting
Downloading Financial Reports

Downloading Financial Reports
When you define the report, or when you run the report, choose Spreadsheet as the output
option. FSG produces the report in a tab-delimited format, which facilitates formatting when
you load the report information into a spreadsheet.
Financial Reporting
Running Financial Report Sets
Financial Reporting
Different Output Options for FSG Using Business Intelligence
Publisher

Different Output Options for FSG Using Business Intelligence Publisher
The flexibility of Business Intelligence Publisher is a result of the separation of the
presentation of the report from its data structure. The collection of the data is still handled by
the E-Business Suite, but now you can design and control how the report outputs will be
presented in separate template files. At runtime, Business Intelligence Publisher merges your
designed template files with the report data to create a variety of outputs to meet a variety of
business needs, including:
• Customer-ready PDF documents, such as financial statements, marketing materials, contracts,
invoices, and purchase orders utilizing colors, images, font styles, headers and footers, and
many other formatting and design options.
• HTML output for optimum online viewing.
• Excel output to create a spreadsheet of your report data.
• "Filled-out" third-party provided PDF documents. You can download a PDF document, such as
a government form, to use as a template for your report. At runtime, the data and template
produce a "filled-out" form.
Financial Reporting
FSG Tips and Techniques

FSG Tips and Techniques
To maximize your reporting flexibility and keep report maintenance to a minimum:
• Draft your reports on paper first
• Define a logical chart of accounts and make use of Parent accounts
• Define generic row sets and use existing column sets
• Use the Expand and Both options
• Select the rounding option for your calculations
• Change the order of detail rows
• Use content sets and display sets for your report
• Use AutoCopy
• Transfer report objects from one database to another
Financial Reporting
Setting FSG Options for General Ledger

Setting FSG Options for General Ledger
FSG: Accounting Flexfield:
• Select the General Ledger application reporting flexfield. The default value for this profile
option is account. You cannot view this profile option at the user level. Your System
Administrator must set this profile option at the site or application level.
FSG: Allow Portrait Print Style:
• Control the print orientation of your Financial Statement Generator reports that are less
than or equal to 80 characters wide. You can print these reports in either portrait style (80
character wide) or landscape style (132 character wide).
FSG: Enable Search Optimization:
• Enhance the performance of reports that contain account assignments with a large number
of parent segment values and child segment value ranges. When you set this profile option
to Yes, the FSG performance enhancement is applied.
FSG: Enforce Segment Value Security:
• Control whether your defined security rules will apply to reports produced using FSG.
FSG: Expand Parent Value:
Financial Reporting
• Control whether the rollup group or the summary flag associated with flexfield
assignments determine the expansion of parent values when requesting summary balances.
FSG: Message Detail:
• Specify the error message catalogue and level of detail in your error message log file when
you request your Financial Statement Generator reports.
FSG: String Comparison Mode:
• Do not change this profile option unless instructed to do so by Oracle World Wide
Support. This profile option affects the character language for text-based character sets.
Financial Reporting
Working with the Attribute Set Window

Working with the Attribute Set Window
Use the Attribute Set window to define attribute sets for RXi reports. The attribute set that you
associate with an RXi report determines the layout and data content of the report.
Each RXi report already has one default attribute set associated with it. If you have the proper
security access, you can use this attribute set to print a report. You cannot modify the default
attribute set. However, you can copy the default attribute set and then apply new layout
definitions to the copied attribute set. You can define as many attribute sets as you want for a
report.
Financial Reporting
Modifying Attribute Sets

Modifying Attribute Sets
Use the Attribute Set window to change a new attribute set that you have just copied or to
modify an existing attribute set that you previously defined.
Displayed Columns
• In the Displayed Columns tab, the Available list box displays all columns that are
available for this report but not currently included in the report output. The Displayed list
box displays the report columns that are included in the report output.
• Use the Default Format tab to define how date and time values should be displayed in the
report.
Column Details
• Use the Column Details window to define formatting attributes for individual columns in a
report. All changes are optional and depend on your reporting needs.
• The Level field displays the grouping level for each column.
• The Column Name field displays the interface table column name for each column.
• In the Attribute Name field, you can enter a new report heading for the column.
• In the Length field, you can change the display length in characters of a column.
Financial Reporting
• In the Ordering field, select one of these values for each column:
- Ascending: To sort column values in ascending order
- Descending: To sort column values in descending order
- None: To print without ordering column values
Page Formatting
• In the Report Title Field, enter the title you want to appear on the report.
• In the Group Display Type field, select Group Left if you want to place breaking columns
to the left of non-breaking columns, or select Group Above to place breaking columns
above non-breaking columns.
• In the Page Width and Page Height fields, enter the number of characters to designate the
page width and page height of the reports.
• In the Print Report Headings section, enter the headings that you want to print in the report

heading.
Financial Reporting
Defining Summary Details

Defining Summary Details
A summary column is a column whose values are either summed or counted. You can
designate what is summed and counted, and you can rename the default summary prompts.
The Summary Details window displays the report summary levels and the column grouping
levels for the column that you select in the Column Details window.
The report summary levels are:
• Page Total Sum: The sum or count of records on the current page printed at the bottom of
the page.
• Running Page Total: The sum or count of records up to and including the current page
printed at the bottom of the page.
• Previous Page Total Sum: The sum or count of records up to but not including the current
page printed at the top of the page.
• Report Total Sum: The sum or count of records in the entire report. The grouping levels
displayed in the Summary Details window are all grouping levels up to, but not including,
the grouping level for the selected column.
Financial Reporting
Quiz

Answers: 1
Quiz Specifications
• The correct answer is you can include multiple reports in a single financial report set.
Financial Reporting
Summary
Financial Reporting
Summary (continued)
Financial Reporting
Financial Reporting
Appendix: Oracle Advanced
Global Intercompany System
Chapter 13
Appendix: Oracle Advanced Global Intercompany System

Chapter 13 - Page 1

Chapter 13 - Page 2

Chapter 13 - Page 3
Objectives

Chapter 13 - Page 4
Intercompany Transactions

Intercompany transactions are transactions that occur between two or more legal entities
belonging to the same corporate enterprise. The legal entities can be assigned to one primary
ledger or assigned to different primary ledgers in the same corporate enterprise. Intercompany
transactions are normally allocations and charge-back transactions.
For example, Vision Operations (USA) is a corporate enterprise that has legal entities at
various places in the world. A transaction that occurs between the Vision France and Vision
Germany which are legal entities of Vision Operations is called an intercompany transaction.

Chapter 13 - Page 5
Intracompany Transactions

Intracompany Transactions
Intracompany transactions are transactions that occur between organizations represented by
balancing segment values in the same legal entity of a corporate enterprise.
Organizations could be a manufacturing plant, a warehouse, a cost center, or any other
organization.
Intracompany transactions often pass through a clearing organization, also represented by a
balancing segment value.
For example, Vision France is a legal entity which has Manufacturing and Operations as its
organizations or departments. A transaction that occurs between Manufacturing and Operations
organizations which are also called as balancing segment values is called an intracompany
transaction.

Chapter 13 - Page 6
Importance of Intercompany Transactions

Importance of Intercompany Transactions
Intercompany transactions must be balanced to net to zero so that they can be eliminated or
adjusted properly when the enterprise consolidates the financial results. This means that the
enterprise cannot show profit (or loss) from trading between different companies or
subsidiaries within the enterprise.
Failure to properly eliminate these intercompany transactions can result in erroneous and
overstated financial results and can lead to legal repercussions.

Chapter 13 - Page 7
Importance of Intercompany Transactions (continued..)

Importance of Intercompany Transactions (continued…)
To efficiently identify and eliminate intercompany transactions at the close of an accounting
period, most organizations use specific accounts to book these transactions. This facilitates the
consolidation process by segregating all intercompany accounting into specific accounts.
However, intracompany transactions are not controlled in the same manner as intercompany
transactions. Intracompany transactions are eliminated if the transaction occurs between a
balancing segment value in the same legal entity. The offset lines must be eliminated if a
clearing account is used.

Chapter 13 - Page 8
Intercompany and Intracompany Balancing – Overview

Intercompany and Intracompany Balancing
The intercompany and intracompany balancing feature generates balancing lines for journals
with more than one balancing segment value where the debits and credits for each balancing
segment do not net to zero.
You can generate the balancing entries when accounting the transactions in the subledgers,
before they are posted to general ledger.
To use this feature, you must define the following:
• Intercompany accounts for each legal entity to process transactions between the legal
entities in the same corporate enterprise.
• Intracompany balancing rules to balance the balancing segment values on a journal and to
automatically create balancing lines for the journal using Balancing API.

Chapter 13 - Page 9
Intercompany and Intracompany Balancing – Benefits

Intercompany and Intracompany Balancing – Benefits
Intercompany and Intracompany Balancing provides a streamlined mechanism for tracking and
balancing internal accounting.
Balancing determines whether a journal requires Intercompany accounting or Intracompany
balancing or both. Depending on the setup, balancing determines what each balancing segment
value represents and chooses the appropriate accounts. For example:
• A journal with balancing segment values representing different legal entities requires
intercompany balancing.
• A journal with balancing segment values representing factories within the same legal entity
requires intracompany balancing.
• A journal with balancing segment values representing business units belonging to different
legal entities may require both types of accounting.
Setup for intracompany balancing rules is centralized. You can define setup in one location,
and share the setup across products in the Oracle E-Business Suite.
The centralized setup generates consistent balancing lines when accounting and posting
subledger transactions across applications.

You can view the additional accounting lines in the subledgers. These lines are added to the
transactions when the journals are posted to the general ledger. This results in detailed
reporting and analysis.
Note: You can create intracompany transactions in General Ledger. You can also create
intercompany transactions in General Ledger provided the legal entities belong to the same
ledger.

Intercompany Balancing – Define Intercompany Accounts

Intercompany Balancing – Define Intercompany Accounts
You can define intercompany receivables and payables accounts for each pair of related legal
entities.
The accounts between any related legal entities speeds up the reconciliation and elimination of
intercompany transaction balances between them during consolidation and are used in
intracompany balancing.
You can define different receivables or payables accounts for a legal entity to track the
different types of intercompany transactions.
The intercompany accounts setup is flexible in allowing the set up of different accounts for
different date ranges, effective end date determines the periods in which intercompany
accounts are active.

Intracompany Balancing Rules

Intracompany Balancing Rules
Intracompany balancing refers to journals that involve different organizations in the same legal
entity, represented by balancing segment values.
Intracompany balancing rules allow you to define and use the accounts for balancing journal
lines that are automatically generated when unbalanced journals are created between balancing
segment values, and also to define the rules for generating the lines.

Balancing API

Balancing API
The Balancing API is used by Oracle General Ledger and Oracle Subledger Accounting to
provide the necessary balancing lines for a given combination of balancing segment values.
The API processes both intracompany lines (between balancing segment values in the same
legal entity) and intercompany lines (between balancing segment values belonging to different
legal entities) according to the setup defined in the Intracompany Balancing Rules pages and in
the Intercompany Accounts pages. If there are both intercompany and intracompany lines in
the same transaction, the Balancing API performs intercompany balancing across legal entities,
and then intracompany balancing across balancing segment values within each legal entity.
Previously, these balancing lines were not determined until posting to General Ledger.
The Balancing API is used by General Ledger and Oracle Subledger Accounting to build
journal lines automatically based on balancing rules that you have defined in the Intracompany
Balancing Rules page. The Balancing API is called by General Ledger prior to posting and by
Subledger Accounting at the time of subledger journal creation.

Setting Up Intercompany and Intracompany Balancing

Setting Up Intercompany and Intracompany Balancing
The key set up steps are as follows:
1. Set up legal entities and assign the legal entity to a ledger.
2. Enable intracompany balancing when setting up the ledger
3. Define intercompany accounts for the legal entities.
4. Define intracompany balancing rules to balance the journal entries for balancing segment
values that belong to the same legal entity.
Note: You can directly assign a balancing segment value to a ledger as balancing segment
values represent organizations with no legal entity context. You can assign balancing
segment values to a ledger, if required.

Intercompany and Intracompany Balancing Process

Intercompany and Intracompany Balancing Process
The Balancing API handles situations when there is a mix of intercompany and intracompany
lines in the transaction. The API balances the intercompany accounts first and then the
intracompany accounts. Intercompany and intracompany journals then balance depending on
the journal mode.
There are differences in intercompany and intracompany balancing:
• Different accounts
Intercompany uses Intercompany Accounts. The legal entity is determined based on the
balancing segment value assignment.
On the other hand, intracompany uses Intracompany Balancing Rules.
• Summary of balancing lines
Intercompany lines are always summarized for each legal entity, not just the balancing
segment value in the journal.
Intracompany lines are summarized for each balancing segment value in Summary Net
mode or are created for each journal in Detail mode. This is defined in the Options tab of
the Create Intracompany Balancing Rule page

• Using a balancing segment value
Intercompany journals never balance through a balancing segment value. This avoids
creating intercompany charges that do not represent actual intercompany movements and
violate accounting practices.
Intracompany optionally use a balancing segment value to balance against, depending on
the setup defined in the Create Intracompany Balancing Rule page.
• Processing many-to-many journals
Intercompany journals balance using the accounts defined for the Trading Partner Legal
Entity. Since, it is optional to define a many-to-many Intercompany journal relationship,
these accounts are not always defined.
Intracompany journals balance either using the default rule that is defined for Debit
Balancing Segment Value and Credit Balancing Segment Value or using a balancing
segment value.

Balancing Rules Precedence

Balancing Rules Precedence
When processing intracompany transactions the balancing rules the following precedence
applies:
1. BSV-BSV: A specific relationship is defined between the balancing segment values. For
example, balancing segment 01 is debited and balancing segment 02 is credited. This rule
takes precedence over the other rules.
2. BSV-All Other: A debit balancing segment is defined and credit balancing segment is
not defined.
3. All Other-BSV: A debit balancing segment is not defined and a credit balancing segment
is defined
4. All Other-All Other: These are the default debit and credit accounts. This is the default
rule.

Intercompany and Intracompany Balancing Process – Example 1

Here is an example of intercompany and intracompany balancing where the balancing segment
values are mapped to a single legal entity. Let’s consider a setup where we define balancing
rules for some balancing segment values. The All Other rule is used for balancing segment
values for which balancing rules are not defined. So, if the journal mode is one-to-one with a
debit to balancing segment 10 and a credit to balancing segment 03, then balancing segment 03
requires a debit to balance against the balancing segment 10 and balancing segment 10 requires
a credit to balance against balancing segment 03. The Balancing API uses the All Other-All
Other rule and substitutes the values for the balancing and intercompany segments.


Now, lets understand what happens when a transaction occurs between balancing segments that
are mapped to different legal entities. When the Balancing API encounters these journals, it
uses the accounts that are defined in the Intercompany Accounts page.
When balancing intercompany, a debit is an Intercompany Receivables account and a credit is
an Intercompany Payables Account. To find the correct accounts, the journal mode must be
determined, similar to Intracompany Balancing. However, Intercompany Balancing is only
performed at the Summary Net level, and the Clearing Balancing Segment Value is not used.
In this case, the API determines that that journal is one-to-one based on the balancing segment
10 and 20 that belong to different legal entities which are debited (10) and credited (20) entry
in the journal. The API begins with the debit legal entity and processes based on the balancing
and accounting rules in the same order of precedence.

Setting Up Advanced Global Intercompany System

Setting Up Advanced Global Intercompany System
Intercompany transactions must be processed in a consistent, systematic way across the
enterprise. Use the Intercompany Setup tab to define the processing rules at the enterprise
level. Setting up intercompany involves the following:
• Defining intercompany accounts
• Creating organizations and assign the organizations to legal entities to process
intercompany transactions.
• Assigning organizations to one or more contacts.
• Defining transaction types to manage intercompany transactions.
• Controlling period statuses independent of Receivables, Payables and General Ledger.
• Setting up Invoicing Options to define customer and supplier associations.
• Setting up system options to manage intercompany transactions.
• Setting up the Oracle Approvals Management System to derive the approvers and users to
whom transactions related notifications must be sent.
• Defining the default accounts rules setup in subledger accounting to consistently distribute
the expense amounts to the appropriate distribution accounts.

Define Intercompany Accounts

Define Intercompany Accounts
Defining intercompany accounts involves the following:
• Set up ledgers and legal entities
• Enable intracompany balancing
• Set up intercompany accounts
• Define intracompany balancing rules
Use the Accounting Setup Manager to set up a ledger and a legal entity. Use the Intercompany
Accounting page to drill-down and define Intercompany accounts and Intracompany balancing
rules for an accounting configuration.
In an exclusive accounting configuration, which refers to a ledger representing a single legal
entity, transactions with multiple balancing segment values are Intracompany transactions, they
are taking place within the same legal entity. The Balancing API creates balancing lines for
these transactions using Intracompany Balancing Rules.
In a shared accounting configuration, which refers to multiple legal entities sharing a single
ledger, legal entities are assigned to the ledger. This allows you to set up Balancing Segment
Value Assignments and also associate a legal entity to a specific balancing segment value, or

values, in the ledger. Transactions that happen between legal entities with multiple balancing
segment values can be either Intracompany or Intercompany transactions, depending on the
balancing segment value assignments. The Balancing API creates balancing lines for both
types of transactions, using the following accounting rules:
• Intracompany Balancing Rules for intracompany transactions.
• Intercompany Accounts for intercompany transactions

Enable Intracompany Balancing

Enable Intracompany Balancing
Navigate to the Update Ledger Options window and select Enable Intracompany Balancing
option to enable intracompany balancing.

Set Up Intercompany Accounts

Set Up Intercompany Accounts
Use the Intercompany Accounting page to set up intercompany accounts.
Click Define Accounts to define Intercompany Receivables Accounts and Intercompany
Payables Accounts for the trading partners, transacting legal entity and trading partner legal
entity.
Transacting Legal Entity is the legal entity from which the intercompany transaction is
initiated.
Trading Partner Legal Entity is the legal entity to which the intercompany transaction is sent by
the initiator. In other words, this legal entity is the recipient of the intercompany transaction.
You can choose the transacting balancing segment value intercompany accounts. Choose All
Other for this field if you do not want to define accounts for the specific balancing segment
value or if no balancing segment values are mapped to the legal entities.
Select Use for Balancing to select an account to be used as the balancing account in subledgers
and intercompany General Ledger journals.
Click View Reciprocal Accounts to display the accounts used by the Trading Partner (to) Legal
Entity and Trading Partner (to) Balancing Segment Value to book intercompany transactions
with the Transacting (from) Legal Entity and Transacting (from) Balancing Segment Value.

Note: This button is inactive if the Trading Partner Legal Entity or Balancing Segment Value
does not have reciprocal intercompany accounts defined, or if the Trading Partner Legal Entity
resides on another applications instance, or if the value is All Other.

Create Intracompany Balancing Rules

Create Intracompany Balancing Rules
Use the Create Intracompany Balancing Rules page to create a new intracompany balancing
rule.
Alternatively, you can also click Create Rule in the Balancing Accounts Search page.
Note: Before creating a new rule, query the rule to confirm that the rule does not exist.
You must define at least one rule for the seeded Source and Category All Other. All Other
refers to a source or category not explicitly defined in a rule. The Other-Other rule is the
default rule that is used for balancing if no rules are defined for a ledger-legal entity-source-
category combination. You must define this rule for each ledger-legal entity that is enabled
with balancing.
Use the Balancing Details tab to define the accounting rules for the specified ledger-legal
entity-source-category combination.

Create Intracompany Balancing Rules – Options Tab

Create Intracompany Balancing Rules (continued..)
Use the Options tab to specify the following:
• Summary level for balancing
• Clearing balancing segment value
• Default options if the clearing balancing segment value must be used but none can be
determined for the journal
• Default clearing balancing segment value (optional)
Choose the options in Level of Summarization as follows:
• Summary Net – The Balancing API should summarize the debits and credits for each
balancing segment value on the journal, determine the overall net debit or net credit for
each balancing segment value, balance using the net amounts for each BSV and summarize
the balancing line for each balancing segment value.
• Detail – Each line must be individually balanced and line must be generated for each line
in the journal.
Choose the options in Clearing Balancing Segment Value as follows:

• Use for All Journals – A clearing balancing segment value is used for all types of journals.
You can enter a clearing balancing segment value at the journal header level (only in
General Ledger), else the default balancing segment value is used.
• Use for Many-to-Many Journals Only - A clearing balancing segment value should only
be used to clear many-to-many journals. You can enter a clearing balancing segment value
at the journal header level (only in General Ledger), else the default balancing segment
value is used.
Choose the options in Default Options as follows:
• Default Clearing Balancing Segment Value – Use the default clearing company if no
clearing company is specified for the journal. Choosing this option displays the Default
Clearing Balancing Segment Value list of values restricted to balancing segment values
that are mapped to the legal entity.
• Manually Entered Clearing Balancing Segment Value – Choose if a clearing company

is not specified for the journal when an error occurs.
Note: Do not use this with the subledger journals as the clearing company may not be
specified in subledgers.
• Using Default Rule – Use this option only when you select the Summary Net or Detail
Level option under Level of Summarization.
Note: The Default Rule is the rule defined for All Other-All Other. Balancing lines are
generated based on this rule ignoring the rules defined in the Balancing Rules tab. You
cannot select this option if you select Use for All Journals in Clearing Balancing
Segment Value.

Creating Intercompany Organizations

Creating Intercompany Organizations
Intercompany allows you to define organizations for your diverse business needs. Define
organizations and assign them to the legal entities to process intercompany transactions. The
Trading Community Architecture (TCA) data model is used to define intercompany
organizations. Each organization created in Intercompany is classified as Intercompany in the
TCA model. Once defined, intercompany organizations represent the initiators and recipients
in Intercompany. An initiator is an organization that initiates a transaction event with another
organization. A recipient is an organization that receives a transaction from the initiator.
Use the Intercompany Organizations page to search for an existing organization or create a
new organization. You can either create a new organization or assign a legal entity as an
intercompany organization. You can disable intercompany organizations by searching for an
organization and updating the Enabled field to No.
Note: When you create a new organization, it must be assigned to a legal entity. When you
assign a legal entity as an organization, it must be assigned to itself.
You must associate the organizations with an operating unit if invoices are required for the
transactions.

Setting up Intercompany Security

Setting Up Intercompany Security
Intercompany has a flexible security model because users need to enter transactions for
different organizations that are assigned to numerous organizations belonging to different legal
entities.
Users can access organizations through a single responsibility.
The responsibilities available to intercompany users are the following:
• Intercompany Super User: Full access to intercompany transaction pages and setup pages.
• Intercompany User: Full access to intercompany transaction pages, but only view access to
setup pages.
Use the Security tab to assign a user to an organization. In the security tab, use the
Intercompany Organization Assignments page to search for and update an organization
assignment, or to create new assignments.

Define Intercompany Transaction Types

Define Intercompany Transaction Types
You can define transaction types to manage intercompany transactions, which are shared
across all the intercompany organizations.
Transaction types help you in setting up the processing rules for all transactions, which must be
processed in a systematic way following the same rules across the enterprise. Examples of
processing rules that can be set for a transaction type are transactions that require invoice and
transactions that must be auto approved or manually approved.
Tip: Create a transaction type only if the seeded transaction type is not sufficient for your
operations.
Intercompany Periods can be closed by Transaction Type, which gives user more control over
the processing of certain type of intercompany transactions and helps with period end
processing.
Use the Transaction Types page to search for and update a transaction type or create a new
transaction type.
• Select Required to create invoices. If a legal entity requires an invoice, an invoice is created
regardless of the option selected for a transaction type. If a legal entity does not require an
invoice, an invoice is created only when Required is selected.

• Select Required to specify transaction types that require recipients' approval.
Note: Recipients cannot reject transactions when Manual Approval is set to Not Required
because transactions submitted by the initiator are processed as approved.

Controlling Intercompany Periods Statuses

Controlling Intercompany Periods Statuses
The period status functionality provides you with a central point to control the timing of
intercompany transaction processing independent of the General Ledger, Receivables and
Payables through the Intercompany Periods page.
Intercompany transactions are recorded and accounted for in an open period.
You must define the intercompany calendar before changing Intercompany Periods.
Use Periods tab to control the period status per transaction type. Use the Open/Close
Intercompany Period Status pages to search for a period and open or close the period for a
transaction. Optionally, you can close a period for all transactions.
When you want to close a period with open transactions, you must sweep the transactions to
another period. In the Control Period Statuses page, click the number in Open Transactions to
navigate to the Review Open Transactions page. Use the Review Open Transactions page to
review and sweep the transactions to another period.

Defining Intercompany Invoicing Options

Defining Intercompany Invoicing Options
It is a legal requirement, in some countries, to create invoices when intercompany transactions
are transferred to Payables and Receivables. To create invoices in Payables and Receivables,
customers and suppliers must be set up and associated to the transacting organizations.
The Invoicing Options tab is a central point for setting up appropriate customer and supplier
information between legal entities, operating units, and organizations.
The Receivables Assignments and Customer and Supplier Associations subtabs in the
Invoicing Options tab are prerequisites for setting up intercompany invoicing options.

Intercompany Invoicing Options – Receivables Assignments Page

Intercompany Invoicing Options – Receivables Assignments Page
If invoices are required for intercompany transactions, you must associate intercompany
organizations with operating units and then assign the intercompany transaction types with
Receivables transaction types for each operating unit.
Use the Receivables Assignments page to search for operating units and update or create
assignments for operating units.
You can either select the seeded Receivables Transaction Type “Intercompany” or create a
Receivables Transaction Type, or choose existing Receivables Transaction Types.
You can either select the seeded Receivables Memo Line “Global Intercompany” or choose an
existing Receivables Standard Memo Line. Memo lines are required for non-inventory
transactions.

Intercompany Invoicing Options – Customer and Supplier
Associations Page

Intercompany Invoicing Options – Customer and Supplier Associations Page
Use the Customer and Supplier Association tab in the Legal Entity Customers and Suppliers
page to create the following associations:
• Customer association: When a legal entity is represented in another legal entity as a
customer, the represented legal entity has a customer association.
• Supplier association: When a legal entity is represented in another legal entity as a supplier,
the represented legal entity has a supplier association.
Setting up customer supplier associations between legal entities eliminates the need to create
duplicate entities for each organization within a legal entity.
You can set up an association at the legal entity, operating unit and organization levels.
It is better to establish an association at the legal entity level because the association assigned
at a legal entity level automatically defaults to the organization in it.
You can create an association by:
• Selecting the trading partners

• Adding a Customer or Supplier Name and a Bill-to or Pay-to Location to the organization
party or selecting an existing Customer or Supplier Account and Bill-to or Pay-to Location

Intercompany Invoicing Options – Trading Partners Page

Intercompany Invoicing Options – Trading Partners Page
A trading partner is an organization in a corporate enterprise wherein transactions are
processed.
Use the Trading Partners tab in the Legal Entity Customers and Suppliers page to determine if
an association exists between two organizations.
The Initiator/Recipient Organization can be a legal entity, an operating unit, or an organization.

Specifying Intercompany System Options

Specifying Intercompany System Options
Intercompany system options help you to manage intercompany transactions across the
enterprise. Use the Intercompany System Options page to set enterprise level settings to govern
the behavior of the Intercompany system and determine how transactions are processed.
By defining these options at the enterprise level, you can minimize disputes, decrease
processing time and cut administrative costs. For example, if the companies in an enterprise
use the same currency for all transactions, it ensures that the transactions are posted in the same
currency, which in turn, simplifies reconciliation.
Changing system options does not affect transactions already in progress. It affects new
transactions only.
Intercompany Batch Numbering: In intercompany, all transactions are numbered
sequentially. Use this option to manually or automatically number intercompany transactions.

Specifying Intercompany System Options (continued…)

Intercompany Transaction Currency: Use this option to specify a default currency on
transactions. If you do not specify a currency for this option, you can select a currency while
entering a transaction. However, if you specify a currency, it defaults in the Create Batch:
Header and Transactions page and cannot be changed.
Minimum Transaction Amount: Use this option to set the minimum intercompany
transaction amount. The minimum transaction amount affects all intercompany transactions.
The minimum transaction amount is validated against the amount in the transaction line.
Before setting the minimum transaction amount, you must first set the transaction currency.
Minimum Transaction Amount Currency: This option is required if you enter a minimum
transaction amount but do not define the intercompany transaction currency.
Intercompany Conversion Rate Type: Use this option to specify the conversion rate type for
converting foreign currency transactions to the equivalent functional currency. You cannot
have user defined conversion rates in intercompany transactions.


Allow Recipients to Reject Transactions: Use this option to specify whether the recipients of
intercompany transactions can reject transactions.
Transfer Transactions to General Ledger: You can transfer transactions to General Ledger
online (when they reach Approved status) or in batch mode. If batch mode is selected, you
must run the concurrent program.
Transferring Transactions to Payables and Receivables: You can transfer transactions to
Payables and Receivables online (when they reach Approved status) or in batch mode. If batch
mode is selected, you must run the concurrent program.
Intercompany Calendar: Use this option to define an intercompany calendar to control
intercompany periods.

Quiz

Answers: 1
Quiz Specifications
This quiz should be polled after slide 33.
The correct answer is you must define the intercompany calendar before
changing Intercompany Periods.

Setting up Approvals Management

Setting up Approvals Management
To derive approvers and users to whom transactions related notifications must be sent,
Intercompany uses Oracle Approvals Management System (AME).
There are two default rules seeded in AME that builds the list of approvers and users based on
the contacts defined for the intercompany organization. The default rules are:
• Default rule for Initiator Intercompany Transaction: Users who receive FYI notifications.
• Default rule for Recipient Intercompany Transaction: Users who are approvers.
You can use the default rules as is or change the setup by identifying the business rules that are
used to derive the approvers list and then implement the business rules using AME user
interfaces.

Setting Up the Default Accounts Rules in Subledger Accounting

AGIS transactions must be consistent in distributing the expense amounts to the appropriate
distribution accounts.
Distribution accounts are account combination that appears in the transaction entry pages when
you create an intercompany batch.
The distributed accounts must be defined for each ledger and are generated as defined in the
Subledger Accounting Transaction Account Builder (SLA TAB).

(continued…)

Setting Up the Default Accounts Rules in Subledger Accounting (continued…)
The following must be setup in the SLA TAB to generate the default distribution account
combination:
• Transaction Account Type: This classifies the distribution accounts that are generated for
intercompany transactions. The following are the seeded intercompany transaction account
types:
• AGIS Initiator Intercompany Distribution Account: For defaulting initiator distribution
accounts
• AGIS Recipient Distribution Account: For defaulting recipient distribution accounts
• Account Derivation Rules: Allows you to derive accounting flexfield combinations or
individual transactions, based on source, constants, mapping sets, and conditions.
• Transaction Account Definition: Allows you to assign the account derivation rules to the
transaction account types. For intercompany transactions the Transaction Account
Definition (TAD) is assigned to a ledger.

You cannot create a new transaction account type. You can only create a new Transaction
Account Definition in AGIS.
Before creating a new Transaction Account Definition, ensure that the following are defined:
• Legal entities and primary ledger
• Trading partners
• Intercompany accounts

Quiz

Answers: 3
Quiz Specifications
The correct answer is there are two default rules seeded in AME that build
the list of approvers and users based on the contacts defined for the
intercompany organization. The default rules are:
•Default rule for Initiator Intercompany Transaction: Users who receive FYI
notifications.
•Default rule for Recipient Intercompany Transaction: Users who are
approvers.


Intercompany transactions
Intercompany transactions can be entered through web-based user interface, imported from
Excel using WebADI, open interface or public API.
In Oracle Advanced Global Intercompany System the initiator creates an outbound batch with
one or more recipient lines, enters the initiator accounting information and submits the batch.
Each recipient receives the inbound transaction, enters the recipient accounting information
and approves transaction. Accounting is also created automatically in the outbound or inbound
batch in the transaction per the rules that are defined in Subledger Accounting’s Transaction
Account Builder.
The recipient approves or rejects the transaction in the Oracle Advanced Global Intercompany
System user interface or from the workflow notification or through e-mail. Rules are also set to
approve the transaction automatically. The transaction status is updated for the initiator and
recipient when the transaction is approved or rejected.
When the transaction is approved, Oracle Advanced Global Intercompany System determines
whether an invoice is required for the transaction or not. If the legal rules and transaction type
options determine an invoice is required, receivables and payables invoices are created else, the
transaction is transferred to initiator’s and recipient’s general ledger.

Intercompany Home Page

Intercompany Home Page
The Intercompany Home displays the most recent transactions that require your intervention.
This page displays a summary of your open notifications, and a list of five most recently
received transactions.
On the Home page, you can search transactions by Inbound or Outbound Batch Number, or
navigate to the Create Batch page to create an intercompany transaction.

Intercompany Transactions Page

Intercompany Transactions Page
Use the Intercompany Transactions page to receive, respond to, and initiate intercompany
transactions for multiple recipients. The transactions that you receive are inbound transactions
and the transactions that you initiate are outbound transactions.
The Intercompany Transactions pages enables you to enter transactions addressed to multiple
recipients thereby speeding up data entry and simplifying management of intercompany
allocations.
There are two distinct flows for the Intercompany transaction entry and processing: an
outbound transaction flow, and an inbound transaction flow. These flows are implemented in
the Transactions pages as tabs: Outbound and Inbound. The Outbound tab provides all the
functions an initiator of an intercompany transaction can perform. The inbound tab provides all
the functions a recipient of the transaction can perform.

Intercompany Transactions – Outbound

Intercompany Transactions – Outbound
Use the Outbound page to create intercompany transactions in batch mode and send them to
the recipients for approval.
You can also search, personalize views, create, and update batches. You can personalize and
create new views. You can create a batch for organizations you can access and include any
number of recipients in the batch. Creating a batch is a two-step process:
• Enter the batch header and transactions.
• Enter the batch expense or revenue distributions.
The batch number is automatically generated if automatic numbering option is selected in the
System Option tab of the Setup tab else, enter a unique batch number. The batch status reads
New if a new batch is created.
Create an intercompany batch for an initiator by selecting an organization from the list of
values. The list of values depend on the user security. When you select an organization as
initiator, the organization's legal entity is automatically displayed.
If there is an intercompany transaction currency defined in the System Options subtab of the
Setup tab, then the batch currency is displayed else, the currency defined in the primary ledger
of the initiator's legal entity is displayed. However, you can override the currency for the batch.

The distribution lines are entered depending on the option selected. You can manually enter the
distribution amounts or automatically generate the distributions amounts.
If you selected the Automatic distribution mode while entering the batch header and
transactions, then the distributions that you enter are prorated later across all transactions.
When submitting the batch, these distributions are prorated based on the number of recipient
transactions.
If Manual distribution mode is selected, then the initiator can enter the distributions manually
using the Initiator Accounting tab. Optionally, the initiator can also enter the recipient
accounting using the Recipient Accounting tab. The recipient accounting need not balance
since the recipients may make adjustments.
User can attach documents at the batch level and for each recipient transactions. When the
batch is submitted, the documents are transferred to individual recipients. You can select a
descriptive flexfield context to enter additional Information. Based on the context selected, the

descriptive flexfield segments are added as columns in the transactions table to enter additional
information for each transaction. Navigate to the next page to enter the initiator accounting by
clicking Continue.

Intercompany Transactions – Outbound (continued…)

Intercompany Transactions – Outbound (continued…)
Use the Initiator Accounting tab to enter expense accounts or revenue accounts that are debited
or credited in this intercompany transaction.
You can enter the distribution accounts manually in the Outbound Distribution page if these
rules are not set up in Subledger Accounting else, the accounting lines are automatically
created if the accounting rules are defined in Subledger Accounting.
The Transaction Account Builder in Subledger Accounting is called to default initiator and
recipient distribution accounts for each transaction when you navigate to the Create Batch:
Distributions page. Depending on the Subledger Accounting rules, you update the segments of
the accounting flexfield. You cannot update segments that are derived automatically such as
the balancing segment and natural account segments.
The amount entered for the recipients in the Create Batch: Header and Transactions page is
charged to intercompany accounts.
The initiator may optionally enter recipient accounting, subject to accounting rules defined in
Subledger Accounting. Even though the initiator enters the accounting lines for the recipient,
the recipient can later edit, delete, or add accounting lines before approving the transaction.

The Recipient Accounting tab is only be visible if the initiator also has access for that recipient
organization and to enter the recipient distributions.
Click Submit to submit the batch to the recipient for approval. The initiator receivables account
and the recipient payables account are generated automatically after the recipient approves the
batch.

Intercompany Transactions – Inbound

Intercompany Transactions – Inbound
Use the Inbound tab to view the initiator and recipient accounting, update recipient accounting,
and view or add attachments.
To approve the transaction, ensure that the accounting for inbound transaction is complete. A
confirmation message is displayed when the approval is successful, else an error message
appears explaining why the transaction failed.
Whether the recipient accounting is complete or not, you can reject the transaction by clicking
Reject. The transaction cannot be rejected if the Allow Recipient to Reject Transactions?
option is set to No in the Intercompany System Options page of the Intercompany Setup tab .
Transaction are approved or rejected from the notification page. Reassign and Request
information buttons are the standard workflow buttons. An e-mail is also sent to the initiator
and the initiator can also approve or reject transaction through e-mail.

Intercompany Transactions – Workflow Notifications

Intercompany Transactions – Workflow Notifications
The initiator and recipient workflow automate transaction processing by performing
validations and notifying the status of the transactions at intervals to the initiator and the
recipient.
When transactions do not pass the validations in the initiator and recipient workflow, the
application sends notifications to the appropriate users. You respond to the notification in the
Notification Details page.
A user must be set up as a contact of the Initiator or Recipient organization to receive
notifications.

Intercompany Transactions – Transfer Transactions

Intercompany Transactions – Transfer Transactions
Whether an intercompany transaction is transferred to the subledger or general ledger depends
on the invoicing requirements, which is defined when setting up in intercompany transaction
types.
You set the transfer options to Online or Batch in the System Options page of the
Intercompany Setup tab. The workflow process transfers the intercompany transactions
depending on the options set in the System Options page of the Intercompany Setup tab. If you
select Online mode, then no intervention is necessary, the initiator and recipient workflow
transfers transactions on approval. If you select Batch mode, then you must run the concurrent
request to transfer the transactions or schedule the concurrent request.
The transactions status changes after the transactions are transferred to the general ledger or
subledger.

Quiz

Answers: 2
Quiz Specifications
The correct answer is Use the Initiator Accounting tab to enter expense
accounts or revenue accounts that are debited or credited in this
intercompany transaction.

Transferring Transactions to General Ledger

Intercompany Transactions – Transfer Transactions to General Ledger
Intercompany transactions that do not need invoices are transferred directly to General Ledger
once approved.
If the transfer mode is Online mode, then no intervention is necessary.
If the transfer mode is Batch mode, then use the Transfer Intercompany Transactions To
General Ledger program in the Schedule Request page to transfer or schedule and transfer the
transactions to General Ledger in batch mode. The program transfers all transactions
irrespective of the intercompany organizations assigned to the user who schedules the request.
On successful transfer, the transaction status changes to Transferred to Initiator GL or
Transferred to Recipient GL respectively for the initiator and recipient workflows.
The Batch and Transaction status is set to Complete once the transactions are transferred to
both initiator and recipient ledgers. Intercompany only populates an interface table in General
Ledger for intercompany transactions.
After Intercompany transfers the transactions to the GL Interface tables, you must run the GL
Journal Import concurrent program to import these journals into General Ledger for both the
Online and Batch mode. The actual posting of the transactions into the appropriate General

Ledger accounting tables is performed separately by the GL Posting process after the journals
are imported into General Ledger.
After transferring the transactions, Intercompany generates a report displaying the transactions
that were transferred to General Ledger and their status.

Intercompany Transactions – Transfer Transactions to
Subledgers (Online Mode)

Intercompany Transactions – Transfer Transactions to Subledgers (Online Mode)
The initiator workflow transfers the intercompany transactions to Receivables to create
invoices as required by legal or business requirements. After creating the invoices, Receivables
updates the intercompany transactions with the invoice numbers and passes the number to the
recipient workflow, which updates and transfers the transaction to Payables.
To transfer transactions online:
1. Approve the transaction.
The initiator workflow transfers the intercompany transaction details to the Receivables
Interface tables and the transaction status changes to Transferred to Receivables.
2. Run the Receivables AutoInvoice Program.
On successful completion of the Receivables AutoInvoice Program, the invoice number is
updated on the Intercompany transaction and the recipient workflow transfers the
intercompany transaction details to Payables Interface tables and the transaction status changes
to Complete.
4. Run the Payables Open Interface Program.

After transferring the transactions, Intercompany generates a report displaying the transactions
that were transferred to Receivables and Payables and their status.

Intercompany Transactions – Transfer Transactions to
Subledgers (Batch Mode)

Intercompany Transactions – Transfer Transactions to Subledgers (Batch Mode)
To transfer transactions in a batch:
1. Approve the transaction.
2. Run the Transfer Intercompany Transactions to Receivables.
The transaction status changes to Transferred to Receivables
3. Run the Receivables AutoInvoice Program.
On successful completion of the Receivables AutoInvoice Program, the invoice number is
updated on the intercompany transaction.
4. Run the Transfer Intercompany Transactions to Payables
The transaction status changes to Complete.
5. Run the Payables Open Interface Program.
Use the Transfer Intercompany Transactions To Receivables and Transfer Intercompany
Transactions To Payables programs to transfer the transactions. The program transfers all
transactions irrespective of the intercompany organizations assigned to the user who schedules

the request. The value Yes in the Submit AR Auto Invoice and the Submit Payables Import
automatically runs the respective import processes.
After transferring the transactions, the application generates a report displaying the transactions
that were transferred to Receivables and Payables and their status.

Intercompany Transactions – Reverse Transactions

Intercompany Transactions – Reverse Transactions
The user can reverse a batch only when the status is Complete. When a batch is reversed, a
new batch is created, and the batch is cross-referenced using a number in the batch header.
This number defaults to all its transactions. You can reverse a batch only if you can access the
initiator organization.
When a batch is reversed, all the transactions in that batch are reversed.
In the Outbound transactions page, select Reverse to reverse a batch. In the Reverse Batch
Page, you can select the following reversal methods which are Switch Debit/Credit or Change
Sign.
In the Switch Debit/Credit method, the debit amounts are credited and vice versa, when
reversed. In the Change Sign method, the positive debit amounts are displayed as negative
debit amounts and positive credit amounts are displayed as negative credit amounts in the
reversal transaction.
If automatic batch numbering is selected, then Intercompany assigns a new batch number for
the reversal batch else, you must enter a unique batch number. In the reversal batch, the
original batch information is displayed in the Reversal Reference field.

The new batch is submitted automatically to the recipients after it is created and the status of
the transaction changes to Submitted.

Importing Intercompany Transactions Using Open Interface

Importing Intercompany Transactions Using Open Interface
You can import intercompany transactions from third party software or Oracle SQL Loaders
into Intercompany. Before you import, ensure the data format in the external source and the
Intercompany Interface tables are the same. The process is as follows:
1. Upload transactions into the Intercompany Interface tables.
2. Run the Intercompany Import Program.
Run the Intercompany Import Program in the Schedule Requests page to import the
Intercompany transactions from Interface tables to Intercompany tables. Before importing, the
transactions are validated by the Transaction API. On successful completion of the import
program, an import execution report is printed which lists the status of the transactions being
imported.
While uploading the transactions to the Intercompany Interface tables, ensure that:
• Columns specified Not Null contain data.
• Columns specified Required must contain data when importing the transactions to AGIS.
• Columns specified Conditionally Required must contain a value if a dependent column
has values.

• Columns specified Optional need not contain data. However, the transactions are rejected
if the data fails the validation.

Importing Intercompany Transactions Using WebADI

Importing Intercompany Transactions Using WebADI
WebADI enables you to enter transactions in a spreadsheet application and upload them into
Intercompany. To run WebADI, you only need a browser and spreadsheet application such as
Excel in your desktop. WebADI allows you to:
• Enter transactions in a transaction entry worksheet in a spreadsheet that is similar to the
transaction entry page in Intercompany.
• Define a spreadsheet specific to intercompany transactions and use powerful spreadsheet
features.
• Enter intercompany journal lines by copying and pasting journal lines, then performing
incremental modifications in the spreadsheet worksheet.
• Validate accounts by enforcing security and cross validation rules
• Use the Upload Journal and List of Values items in the WebADI menu in the spreadsheet.
To import transactions, you must first create the spreadsheet document in Oracle WebADI:
Create Document page and then upload the transactions. The spreadsheet document created
using WebADI has predefined formats for entering intercompany transactions.
To create a spreadsheet document:

1. Navigate to the WebADI page.
2. Select Create Document from the Navigation menu.
3. Specify the WebADI settings by selecting the Viewer. The Viewer is the spreadsheet
application you must choose to create the document.
4. Select the Intercompany - Single Batch Entry Integrator. WebADI Integrator is the
application that integrates with various Oracle Applications.
5. Select the Intercompany - Single Batch Entry Layout.
Note: You can create new layouts or modify the seeded layouts available in Intercompany.
6. Review the selections and click Create Document.
On clicking Create Document, the spreadsheet application opens with the defined spreadsheet
where you can enter transactions.
After entering the transactions, you must upload the transactions to Intercompany.

To upload the transactions:
1. Click Upload Journal on the WebADI menu and specify the upload parameters. The
transactions are uploaded into the Intercompany Interface tables.
2. Submit the Intercompany Open Interface program to import the transactions into
Intercompany.

Intercompany Reporting

Intercompany Reporting
Advanced Global Intercompany System provides extensive reports that help you in reviewing
and reconciling transactions reports. These reports are built using Oracle XML Publisher
technology. Oracle XML Publisher enables you to easily change the layout and publishing
format of the reports thus allowing you to customize the reports to suit your requirements. The
reports available in Intercompany are:
• Oracle Intercompany Transaction Summary Report
• Oracle Intercompany Account Details Report
• Intercompany Reconciliation Report
Navigate to the Schedule Requests page to run the reports. For each parameter, the list of
values displays the options associated with the user running the report. If no option is selected,
then the report is generated for all the options in the list of values.

Intercompany Transaction Summary Report

Intercompany Transaction Summary Report
The Intercompany Transaction Summary report shows detailed information about
intercompany transactions created in Oracle Advanced Global Intercompany System. Navigate
to Schedule Requests page and select Oracle Intercompany Transaction Summary Report from
the Program Name list of values.
The report gives a clear overview of intercompany transactions and their statuses. This
simplifies day-to-day tasks and speeds up period close activities. For example, run this report
to find all unapproved transactions that need to be processed before the period end. The report
also provides supporting documentation for intercompany reconciliation and helps keep
intercompany in balance by uncovering any potential discrepancies. For instance, you can find
recipients who do not approve their transactions on time, and resolve the issue before it causes
reconciliation differences.
You run the report to display all transactions initiated and received by organizations that you
can access. Your can choose to run the report only for outbound batches, inbound transactions,
or both. You can also run this report by transaction status to find out what transactions are
waiting for approval, or how many transactions remain to be processed before the end of the
period. You can choose to include parameters and columns for this report. For example, in the
Outbound Transactions section, you can add the columns such as Initiator Receivables

Accounts, Description, Invoice Number, etc. For inbound transactions, you can add the
columns such as Recipient Legal Entity, Transaction Date, Recipient Payables Accounts,
Description, Approver, Invoice Number, etc.

Intercompany Account Details Report

Intercompany Account Details Report
The Intercompany Account Detail report provides a detailed listing of all accounting lines for
intercompany batches, grouped by transaction. Navigate to Schedule Requests page and select
Oracle Intercompany Account Details Report from the Program Name list of values. This
report displays how intercompany transactions are accounted, thereby help you to ensure that
intercompany transactions are accounted to correct accounts. This also helps you to identify
out of balance conditions and supports audits that verify accounting of intercompany
transactions.
The report is divided into two sections: one section for the outbound batches, and the second
section for inbound transactions. The outbound section shows transactions initiated by the
organizations to which the user can access, the inbound section shows transactions received by
these organizations. You can choose to include inbound, outbound, or both sections in the
report. You can also run the report for the organizations that you can access.
You select the parameters to run the report by ranges of initiator and recipient accounts to see
the transactions that make up their balances. You can also choose the columns that must be
displayed in the report, including descriptive flexfield columns. Some examples of columns
that can be used included in the Outbound Transactions section are: Batch Status, Transaction

Type, and Description. Additional columns can be also included in the Inbound Transactions
section, some examples are Description, and Invoice Number.

Intercompany Reconciliation Report

Intercompany Reconciliation Report
Reconciliation is the process of ensuring an intercompany transaction is accounted in
Receivables for the initiator legal entity and Payables for the recipient legal entity. The
Intercompany reconciliation report enables you to check any discrepancies or missing
transactions. Navigate to Schedule Requests page and select Intercompany Reconciliation Data
Extract Program from the Program Name list of values.
Note: Setting up unique intercompany accounts for each relationship between a transacting and
trading legal entity simplifies the reconciliation.
To run the reconciliation report:
1. Submit the concurrent request Intercompany Reconciliation Data Extract Program. This
program gathers all the transactional data.
2. Navigate to the Reconciliation tab and select the ID of the concurrent request that was run in
step 1.
3. Choose the template to display the results.
4. Drill down using the links provided in the report for detailed information.

Summary


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R12.x Oracle General Ledger

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Brent Bosin, Marilyn Crawford, Shivranjini Krishnamurthy

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• Navigating Oracle Applications

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Passwords DROP USER scott

Lowercase Syntax variables CREATE ROLE role

Oracle Internal & Oracle Academy Use Only

Typographic Conventions in Oracle Application Navigation Paths

This simplified path translates to the following:

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.