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February 2010
Contents
Introduction
Overview................................................................................................................................... 1-1
iii
Audit Trail
Define Tables to be Audited..................................................................................................... 4-1
Functional Setup...................................................................................................................... 4-11
Audit Trail Report .................................................................................................................. 4-12
Reconciliation Process
Cash Management..................................................................................................................... 5-1
Payables..................................................................................................................................... 5-4
Receivables.............................................................................................................................. 5-10
Assets....................................................................................................................................... 5-18
General Ledger........................................................................................................................ 5-23
Reconciliation Reports
Cash Management..................................................................................................................... 6-1
Payables..................................................................................................................................... 6-5
Receivables.............................................................................................................................. 6-16
Assets....................................................................................................................................... 6-28
General Ledger........................................................................................................................ 6-57
VAT Reconciliation................................................................................................................. 6-71
Index
iv
Send Us Your Comments
Oracle E-Business Suite Implementation Recommendations for Germany, Release 12
Part No. E15627-01
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Preface
Intended Audience
Welcome to Release 12 of the Oracle E-Business Suite Implementation Recommendations for
Germany.
It is intended for a customer in Germany.
See Related Information Sources on page viii for more Oracle E-Business Suite product
information.
Documentation Accessibility
Our goal is to make Oracle products, services, and supporting documentation accessible
to all users, including users that are disabled. To that end, our documentation includes
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For more information, visit the Oracle Accessibility Program Web site at
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vii
Structure
1 Introduction
2 Setup Related Recommendations and Considerations
3 Process Related Recommendations and Considerations
4 Audit Trail
5 Reconciliation Process
6 Reconciliation Reports
Integration Repository
The Oracle Integration Repository is a compilation of information about the service
endpoints exposed by the Oracle E-Business Suite of applications. It provides a
complete catalog of Oracle E-Business Suite's business service interfaces. The tool lets
users easily discover and deploy the appropriate business service interface for
integration with any system, application, or business partner.
The Oracle Integration Repository is shipped as part of the E-Business Suite. As your
instance is patched, the repository is automatically updated with content appropriate
for the precise revisions of interfaces in your environment.
viii
maintain information in an Oracle database. But if you use Oracle tools such as
SQL*Plus to modify Oracle E-Business Suite data, you risk destroying the integrity of
your data and you lose the ability to audit changes to your data.
Because Oracle E-Business Suite tables are interrelated, any change you make using an
Oracle E-Business Suite form can update many tables at once. But when you modify
Oracle E-Business Suite data using anything other than Oracle E-Business Suite, you
may change a row in one table without making corresponding changes in related tables.
If your tables get out of synchronization with each other, you risk retrieving erroneous
information and you risk unpredictable results throughout Oracle E-Business Suite.
When you use Oracle E-Business Suite to modify your data, Oracle E-Business Suite
automatically checks that your changes are valid. Oracle E-Business Suite also keeps
track of who changes information. If you enter information into database tables using
database tools, you may store invalid information. You also lose the ability to track who
has changed your information because SQL*Plus and other database tools do not keep a
record of changes.
ix
1
Introduction
Overview
When implementing Oracle E-Business Suite R12 in Germany there are several local
legal requirements and good business practices, which need to be taken into
consideration when implementing the software.
This document reflects project results of current Oracle E-Business Suite R12
implementations in Germany as well as findings during an Oracle internal project to
achieve product certification for the financial modules of the suite.
The following four sections are covered by the document:
Setup
Process
Audit Trail
Reconciliation
Each of the four sections covers the most common Oracle E-Business Suite modules.
The sections will give additional advice on the base and country-specific setup as well
as recommendations for daily business practice. Screen-shots are used to illustrate the
topics where appropriate.
The focus has been set on the following modules:
General Ledger
Payables
Receivables
Payments
Introduction 1-1
Fixed Assets
E-Business Tax
Oracle E-Business Suite Advanced Collections is also mentioned here, as much of the
former Receivables functionality has been moved to Advanced Collections.
This document only gives additional advice on some specific implementation topics for
Germany. Therefore it is strongly recommended also to refer to the existing Oracle
standard documentation e.g. Oracle Implementation and User Guides for further
reference.
2
Setup Related Recommendations and
Considerations
Introduction
An IT-Governance framework should be implemented to control the following
procedures:
From an auditing perspective it is crucial, that all setup documentation is created and
maintained properly.
For additional information on how to monitor change of master data, please have a look
at the chapter Audit Trail.
The following section addresses some additional system administration and setup
recommendations, which should be taken into consideration when implementing
Oracle E-Business Suite in Germany.
System Administration
Changing APPS Password
Oracle Applications offers a function to access the data on the table level from the
application by using Diagnostic/Examine from the menu bar.
In order to prevent users from changing table entries using this feature the password of
the "Apps" user should be changed from the standard value to a specific password.
This account should be used by the technical support group and/or database
administration only.
It is also recommended to set the profile option: "Utilities: Diagnostics" to No; this will
require the user to enter a password.
Responsibilities
The Oracle E-Business suite offers the possibility to have individual user management
and individual responsibilities to restrict the access to the data a user can see, and to the
functions a specific user has available. These responsibilities can be either attached
directly to a user, or to a role, which is than assigned to a user. When setting up user
management, the implementation team can choose to use either a seeded responsibility
or to create new responsibilities, which can be created to the individual needs. With
roles and responsibilities it is also possible to achieve a segregation of duties.
Document Sequencing
Document sequencing must be setup. Create the document sequences for all Oracle
Applications modules that are implemented, and assign them to the appropriate
document categories.
It is recommended to setup the document sequences as gapless.
Furthermore, it is recommended to renew the sequence definition and sequence
assignments on a fiscal year basis.
Set the profile option Sequential Numbering to "Always used" in order to be sure, that
no accounting entries are created without a document sequence number.
General Ledger
Accounting Sequencing
To ensure that gapless sequential numbering is assigned to journal entries the
accounting sequencing should be setup.
Accounting sequencing is set up with the option "GL Period Close GL Journal Entry".
With accounting sequences, gapless numbering, and continued numbering can be
achieved.
The initiation for the accounting sequence is done during the accounting event.
Sequence definition
Sequence assignments
Ledger Architecture
Ledgers
With Oracle E-Business Suite R12, a new ledger architecture has been introduced:
Ledgers can be defined as:
Primary ledger
Secondary ledger
Reporting Ledger
In addition to a secondary ledger, a primary ledger can also have a reporting ledger
assigned.
The primary / secondary ledger architecture is often being used to accommodate
different Accounting Standards in parallel. (e.g. HGB and IFRS).
Reporting ledgers are used to reflect accounting in a different (reporting) currency.
Primary ledgers can be linked to one or more legal entities. For a German
implementation it is mandatory to have a 1:1 relationship between the defined legal
entity and the corresponding primary ledger.
Ledger Sets
In R12, Ledger Sets is a new functionality to create a list of ledgers, which are using the
same:
Accounting Flexfield
Calendar
Journal entry
Recurring journals
Allocations
Period close
Reports
In addition a Data Access Set, with enhanced security options needs to be defined in
order to use Ledger Sets.
Ledger Sets are assigned to a user responsibility by the profile option: GL: Data Access
Set.
Security Profile
A security profile is a list of operating units, which can be assigned on user or
responsibility level by using the appropriate profile option.
After defining your Security Profile (in HR),run the concurrent request:
Profile Options
The MOAC Architecture uses the following profile options, which can be set on
different levels (including user) :
No summarization
Summarized by GL Period
In order to have a complete drill down from the General Ledger to the Subledger select
the "No summarization" option.
It is also recommended to set the parameter "Post in GL" to "Yes" to get the process of
accounting completed at once.
This task has to be performed for every module within Financials, which is part of the
implementation.
Furthermore this setup is required to get complete General Ledger Journals. This also
facilitates compliance with the regulation GDPdU
Payables
Setup Payables Options (in extracts)
Payables System Setup
It is suggested to setup the following values using
(Resp) Payables (M) Setup/Options/ Payables System Setup
Description
Value
Supplier Number
Automatic
Type
Numeric Terms
Date Basis
Invoice
Description
Value
Discount Method
System Account
Prorate Expense
Prorate Tax
Value
Yes
Realized Gains
Realized Loss
Rounding
Value
GL-Date Basis
Invoice Date
Value
No
Value
No
Receivables
System Profile Options
To setup these options, navigate to System Profile Options within the System
Administrator Responsibility
Value
Yes
No
Yes
Yes
Yes
Yes
Yes
No
System Options
To setup System Options navigate to System Options within the Receivables Manager
Responsibility
(Resp) Receivables (M) Setup/Options/ Reeivables System Options System Options, Tab:
Accounting:
These receivables system options should be set up as follows:
Form Field
Value
Yes
Realized Gains
Realized Losses
Tax
Header Rounding
Unallocated Revenue
Value
No
No
Yes
When Completed
Value
Invoice amount
Yes
Yes
Source of territory
None
Prorate all
Adjustment
GL Account Source
Invoice
Allocate the net portion using the Expense/Revenue accounts specified by the tax rate
code on the invoice. Distribute the tax amount to the tax accounts specified by the tax
rate code on the invoice.
Receivable activities for adjustments (option 2)
Type
Adjustment
GL Account Source
Activity GL Account
Invoice
Allocate the expense or revenue to the General Ledger account that is specified for this
Receivables Activity. Distribute the tax amount to the tax accounts specified by the tax
rate code on the invoice.
Receivable Activities for Adjustments (option 3)
Type
Adjustment
GL Account Source
Revenue on Invoice
Invoice
Allocate the expense or revenue net of any tax to the revenue account(s) specified on the
invoice. Distribute the tax amount to the tax accounts specified by the tax rate code on
the invoice.
Receivable Activities for Discount Type
Type
Adjustment
GL Account Source
Invoice
These Receivables Activities for earned and unearned discounts have to be referenced
when defining receipt method accounts and will be used for account derivation when
discounts are calculated during the receipt application process.
Therefore, the corresponding accounts have to be defined when the respective tax rates
are defined:
Banking Model
Banking Setup - Overview
Since the release of Ebusiness Suite R12, banking setup is part of the Trading
Community Architecture (TCA). Bank accounts can be defined as external and internal.
External bank accounts are part of the setup process within suppliers / customers in the
corresponding Payables / Receivables Financials application modules. Internal and
external bank accounts setup prerequisites are:
Banks
Bank branches
Banks and bank branches are shared between legal entities, suppliers and customers.
Internal bank accounts need additional setup as:
Define a bank
In order to define a bank, use the Cash Management responsibility and navigate to:
(Resp) Cash Management (M) Setup/Banks
The "Manage Banks and Branches" page will be found here. When clicking the Banks
tab, all necessary fields will be displayed to start with the bank definition:
Click on the "Create" button. On the next page additional bank information can be
entered:
Click the "Create Branch" button to start the bank branch definition.
The following popup is displayed:
By pressing the "Continue" button the bank branch details form will be opened:
Branch Name
Mandatory field. Branch names are only unique within the bank / bank branch
combination.
Branch Number
In some countries this field is mandatory and a validation is done on the number being
entered (France, Switzerland). For German payment format this field must be entered
with the bank code (BLZ).
BIC Code
Branch Type
For using SEPA Payments the value SWIFT is required. For German standard payment
format the value OTHER is correct.
After saving the information the bank branch address page will be shown. Bank branch
address fields are not mandatory. Click finish to complete bank branch definition.
Click the "Create" button, and the following information will be derived:
Click on "Continue", and the legal entity selector page opens up.
When the "Bank Account Owner" field is opened, the system will allow selection of a
legal entity:
Select the relevant legal entity, which owns the bank account.
Note: If the legal entity cannot be derived, the cash management
Important: Note that the country of the bank determines the validation
Check digits
For German payment formats this field can be left empty. For some other countries (e.g.
France), this check digit field is mandatory, as it is a component of the total account
number (French RIB).
IBAN code
For SEPA payments, the IBAN (International Bank Account Number) code is necessary.
There is also a validation on this field. If it is planned to use SEPA in the future, it is
recommended to setup the IBAN number from the start.
Click "Save and Next".
The last step can be repeated to allow the usage of the bank account within several
operating units within the same ledger.
After pressing "Finish", the bank account definition has been completed.
Click on "Create".
Enter a name for the payment document:
Navigate to "Banking Details" from the menu at the left side of the screen.
Click "Apply".
After searching the supplier again the following details can be found within the bank
account details form:
To create the correct format, the direct debit bank instruction has to be set to the
appropriate value, which has been contractually agreed with the customer.
Payments
Payments Setup - Overview
Oracle E-Business Suite introduces with R12 a new Module: "Payments", which
interacts with:
Oracle Receivables
Oracle Payables
Oracle Loans
Shared Setup
The majority of the objects are delivered as seeded values with the product. The
following payments setup is focusing on the key elements and how to set them up.
Transmission Configuration
Payment Systems
Transmission Configuration
There are several transmission mechanisms, which can be used:
Payment Systems
German payment formats can be found in the "German Payment System" as well as in
the "Global Payment System".
To use a payment system, a payment system account needs to be set up.
Payment Methods
Payment methods such as "Electronic" and "Wire" can be found as pre-seeded data. If
required new payment methods can be created and duplicated:
Payment Process
Profiles Payment process profiles are also seeded but can be customized or duplicated
for specific usage:
After defining the setups for funds disbursement, payments manager within the
payables function can be used to define detailed setups based on individual
requirements:
Payment Methods
Payment methods are seeded, but can also be created on request.
Profiles For a German implementation direct debit payment methods with the type
"Lastschriftverfahren" and "Einzugsermchtigung" are key requirements.
A direct debit funds capturing profile can be found as seeded data for duplication:
Seeded Profiles cannot be used but they can be duplicated and tailored. The important
field to be assigned in the duplicated versions is the transmission configuration.
Payee
The definition of a payee completes the funds capturing setup. Payees have to be
created including:
Using multiple Operating Units would assume that they are all part of the same
ledger
Collections
With Oracle e-Business Suite R12, much of the AR Collections functionality is replaced
by Advanced Collections functionality. Advanced Collections supports a number of
innovative processes and concepts that are different from traditional collections
practices. It's important to understand these concepts and to know how Advanced
Collections uses them. For additional information refer to the Oracle Advanced
Collections Implementation Guide and Oracle Advanced Collections User Guide
available on OracleMetaLink.
Transactions
In Receivables, an invoice, debit memo, credit memo, chargeback, or bill receivable.
Receivables maintains transaction tables which Advanced Collections accesses. Invoices
can include one or more payment schedules.
Delinquency
In Advanced Collections, this is a transaction that is overdue. The criteria used to
determine which transactions are delinquent are configurable. The seeded delinquency
configuration uses a payment schedule for which the dispute amount is less than the
total amount overdue and the due date is prior to the current date to determine
delinquency. Delinquencies are identified from invoices, charge backs and debit
memos. Advanced Collections identifies delinquencies by running a 'delinquency status
determination' concurrent program and maintains this information in delinquency
tables.
Collector's Work Queue
The Universal Work Queue provides a high-level list of all actionable work assigned to,
or owned by, a collections agent. This work is automatically 'pushed' to the agent as
part of the automated collections management flow provided by Oracle Advanced
Collections.
Scoring Engines and Scoring Components
Scoring engines consist of one or more scoring components and they can be configured
to provide a score at the customer, account, and bill to level. Advanced Collections uses
configurable scoring engines for two purposes: to determine whether a transaction is
delinquent and to determine the business value - or collections score - of customers.
Collections scores are similar to a customer's credit score but they generally guide how
seriously the customer is treated during collection activities.
Dunning Plan
The traditional method used to notify a delinquent customer about an unpaid balance.
Advanced Collections provides the ability to send dunning letters via fax, e-mail or
printed letter. Additionally, Collections can use the customer's collections score and the
oldest aged invoice to determine the content and delivery method of the dunning
notice. If payment is not made within a specified period of time, Advanced Collections
can automatically assign a 'dunning callback' to a collector who will then see that action
on their Task node in the Collector Work Queue.
Collections Strategy
Compared to Dunning Plans, this collections method supports more complex means to
contact and manage customers about their receivables situation. Collections strategies
consist of one or more work items, which are actions performed by either the system
(send a reminder letter) or the collector (call this customer). Work items are timed to be
executed serially. Strategies are based on collections scores so different strategies can be
used for customers with 'good' or 'bad' value scores. Collections strategies can also be
used to alert pre-delinquent customers about a pending payment. Unless a deploying
organization has no need to do anything more complex than simple dunning, the best
practice recommendation is to use collections strategies. This allows for flexibility as the
organization changes in the future.
Assets
Setting up Asset Books
Allow Amortized Adjustments
Activate this option using the (Resp) FA Super User (M) Setup/ Asset System/ Book
Controls (Tab) Accounting Rules in order to ease the reconciliation of the depreciation
amount (recalculating the depreciation).
Retirement Accounts
While setting up the accounts for the Retirement transaction in the Asset Book Form, it
should be considered to use different accounts per transaction. There is no need to
setup different accounts for "Gain" and "Loss". For the Retirement it is recommended to
use a different Clearing Account than the Clearing Account used for Mass Additions.
This helps with the reconciliation of the transactions in the GL.
EBusiness Tax
Introduction / Remarks
It is common business practice in Germany to enter and post manual journals with taxes
directly in the General Ledger instead of using the subledger modules.
The following setup will not share the tax statuses across Payables and Receivables. Tax
Status has been setup separately for Payables and Receivables. This has been achieved
by setting up specific Tax Rules.
Tax regimes
Set up tax regimes for the taxes in each country and geographic region where you do
business and where a separate tax applies. A tax regime associates a common set of
default information, regulations, fiscal classifications and registrations to one or more
taxes with the same tax requirement.
The tax regime provides these functions:
Defaults the settings and values you define to each tax in the regime.
Optionally provides a single registration for all taxes associated with the regime.
The common tax regime setup is one tax regime per country per tax type, with the tax
requirements administered by a government tax authority for the entire country.
The main region requires the following information:
Taxes
Each separate tax in a tax regime includes records for the statuses, rates, and rules that
are used to calculate and report on the tax. E-Business Tax defaults tax information
from the tax regime to each tax that you create under a regime.
You can only enable a tax for use on transactions after you have completed all of the
related setup required. This is achieved by enabling the option: "Make Tax Available for
Transactions" in the last step of your setup.
Status
A tax status is the taxable nature of a product in the context of a transaction and a
specific tax on the transaction. Every tax status in Oracle E-Business Tax is defined
under a tax and contains one or more tax rates.
For example, one tax can have separate tax statuses for standard, zero, exemption, and
reduced rates. A zero rate tax status may have multiple zero rates associated with it in
order to handle different reporting requirements for zero rate usage, such as Intra EU,
zero-rated products, or zero-rated exports.
You define a tax status under a tax and a configuration owner, and define all applicable
tax rates and their effective periods under the tax status. The tax status controls the
defaulting of values to its tax rates.
In principal a tax status can be used for Payables and Receivables transactions.
Jurisdictions
A tax jurisdiction is a geographic region or tax zone where a specific tax authority levies
a tax. A tax jurisdiction specifies the association between a tax and a geographic
location.
At transaction time E-Business Tax derives the jurisdiction or jurisdictions that apply to
a transaction line based on the place of supply. The place of supply is the location where a
transaction is determined to take place for a specific tax. E-Business Tax either uses a
default place of supply or derives a place of supply based on tax rules.
You must set up at least one tax jurisdiction for a tax before you can make the tax
available on transactions.
Jurisdiction Setup for Germany:
Tax Rates
Set up tax rates for the tax statuses and tax jurisdictions. For tax statuses, set up a tax
rate record for each applicable tax rate that a tax status identifies. For tax jurisdictions,
set up tax rate records to identify the tax rate variations for a specific tax within
different tax jurisdictions. For example, a city sales tax for a state or province may
contain separate city tax jurisdictions, each with a specific rate for the same tax.
You can also define tax recovery rates to claim full or partial recovery of taxes paid.
You define tax rate codes and rate detail information per rate period. Rate periods
account for changes in tax rates over time. A tax rate code can also identify a
corresponding General Ledger taxable journal entry.
Rate Details
Tax Accounts
Rules
The E-Business Tax determination process uses your tax configuration setup and the
details on the transaction to determine:
How to calculate the tax amount for each tax that applies to the transaction.
With E-Business Tax rules there will be a tax determination model created to reflect the
tax regulations of different tax regimes and the tax requirements of your business. To
create a simple tax model that makes use of default values without extensive
processing, or a complex tax model that considers each tax requirement related to a
transaction before making the final calculation.
During execution of the tax determination process, E-Business Tax evaluates, in order of
priority, the tax rules that have defined against the tax configuration setup and the
details on the transaction. If the first rule is successfully evaluated, the result associated
with the rule is used. If not, the next rule is evaluated until either a successful
evaluation or default value is found.
The E-Business Tax determination process is organized into rule types. Each rule type
identifies a particular step in the determination and calculation of taxes on transactions.
The tax line determination process uses the information of the transaction header and
transaction line to determine the tax lines.
The rule types and related processes used for tax line determination and tax calculation
are:
1.
2.
3.
Determine Tax Registration - Determines the party whose tax registration status is
considered for an applicable tax on the transaction.
4.
Determine Tax Status - Determines the tax status of each applicable tax on the
transaction.
5.
Determine Tax Rate - Determines the tax rate for each applicable tax on the
transaction.
6.
Determine Taxable Basis - Determines the amount upon which to apply the tax
rate.
7.
Calculate Tax Amounts - Calculates the tax amount for each applicable tax on the
transaction.
Determine Tax Status in Tax Rules setup to restrict a tax status to be used only in
payables:
3
Process Related Recommendations and
Considerations
Over All
The following section will give some further recommendations on the several business
processes.
Patch Level
It is recommended to use latest available patch levels.
General Ledger
Manual Journal entries with VAT
Postings on Tax accounts are only shown in the localized VAT reports, if they are
generated by the standard feature for tax within the journal entry form.
Postings directly to the VAT-Account will not be shown in tax reporting because the tax
code is not referenced. .
Closing Periods within General Ledger
It is possible to close periods in General Ledger while there are still unposted journals.
An organizational process should be put in place, which ensures that all journals are
posted before closing the period. It is not recommended to close a period permanently
until after the auditors have completed the year-end certification.
Freeze Journals
Payables
Invoice GL-Date Mechanism
Entering the invoice header includes the field GL-Date and represents the liability
accounting. If this GL-Date is changed a warning-message is shown.
The GL-Date on invoice line level represents the expense accounting and is defaulted
from the invoice header level. It is recommended to ensure that GL-Dates on line level
are accurate, because they impact the accounting.
Supplier duplications
To prevent supplier duplications it is recommended to use naming conventions as well
as internal controls.
Internal control procedures should evaluate, if the supplier to be added exists already in
the system.
Receivables
Customer Duplications
To prevent customer duplications it is recommended to use naming conventions as well
as internal controls.
Internal control procedures should evaluate, if the customer to be added, exists already
in the system
Process (Step3): The final invoice will be entered as standard invoice, but with the
manual entry of the "prepayment invoice"(+ tax) as a negative amount.
Accounting of the final invoice must net off the interim accounting of the
"prepayment invoice".
Freight
Freight generation should be done based on Item, to calculate tax on top of the freight
amount.
The standard freight calculation delivered in the AR Workbench by pressing the freight
button should not be used, because it does not create tax on the freight.
Optionally, the freight button can be disabled by unchecking the allow freight option in
the transaction types definition.
Invoice Printing
It is recommended to use the standard invoice printing process.
If using the online button in the invoice workbench it must be ensured by
organizational measures that the data will not be changed anymore.
Receipt Overapplication
If the overapplication feature is used, organizational measures should be in place to
ensure the correct application of the receipts.
Cross Payables/Receivables
AP/AR-Netting
Based on netting agreements, netting batches can be generated for netting of liabilities
and receivables within the trading partners defined in the netting agreement.
Netting agreements can be defined even if the trading partners are not the same legal
entity. Therefore it has to be ensured that netting agreements includes only those
trading partners, which are in line with legislation to net off transactions.
Local legal requirements determine which single transactions can be netted. So, it is
suggested to setup netting batch creation with a manual review step, before finally
approving and generating the netting transactions.
Refunds
Since the introduction of Oracle Payments in R12 the refund feature can be used to pay
credit memos to a customer. This function will create a refund invoice in Payables,
which can be paid by using the payment manager within Payables. In parallel, the
refund is applied to close the credit memo:
Payments
Payments - Overview
With the introduction of Oracle Payments as an integrated platform for inbound and
outbound payments, core processes to create payments has changed accordingly.
The following chapter describes the funds disbursement and the funds capturing
process as an example only.
Funds disbursement
From the Payables responsibility, navigate to "Payments/Entry/Payments Manager".
You can also navigate within the funds disbursement process manager.
Templates
Templates can be setup to be used during the payment process request during the
payment run. Within the template definition a lot of information can be defaulted or left
blank to be entered during the payment process request. Key elements to design a
template are the following:
Payment attributes:
Bank Account, Payment Document, Payment Process Profile, and Exchange Rate
etc.
Additional Information
Based on the process automation options the payment process request can be reviewed,
edited and finally submitted:
The "Payment Dashboard" indicates the actual status of the payment process request:
Scrolling down in the completed payment process request will enable all information:
Within the concurrent requests form, the formatting request has been created.
Fund Capturing
Creating a direct debit run (Lastschriftlauf/Einzugsermchtigung) would consist from
the following steps:
Before running the new step "Create Settlement", it is recommended to check whether
authorized transactions are available in payments. These can be found in the
"Authorizations" tab on the funds capturing process manager home page:
Transactions which are found here, are transmitted by the remittance batch procedure:
The create settlement process can be started from the standard view -> request form or
directly on the Funds Capturing Process Manager Homepage.
Assets
Asset Numbering
If the option to use "automatic numbering" is activated in FA, all assets will have a
gapless number. But, it is possible to enter an alphanumeric number, which will lead to
a "non-gapless" sequence.
Users should take measures to endure that this is not happening
VAT Reporting
There are four reports available, which help the user to reconcile their VAT.
4
Audit Trail
GL
GL Period (Periodenstatus)
TABLE
COLUMNS
GL_PERIOD_STATUSES
APPLICATION_ID (PK)
CLOSING_STATUS
PERIOD_NAME (PK)
SET_OF_BOOKS_ID (PK)
COLUMNS
FND_FLEX_VALUES_TL
FLEX_VALUE_ID (PK)
LANGUAGE (PK)
DESCRIPTION
FLEX_VALUE_MEANING
COLUMNS
GL_DAILY_RATES
FROM_CURRENCY (PK)
TO_CURRENCY (PK)
CONVERSION_DATE (PK)
CONVERSION_TYPE (PK)
CONVERSION_RATE
COLUMNS
GL_LEDGERS
LEDGER_ID (PK)
NAME
SHORT_NAME
DESCRIPTION
LEDGER_CATEGORY_CODE
OBJECT_TYPE_CODE
COMPLETION_STATUS_CODE
CHART_OF_ACCOUNTS_ID
CURRENCY_CODE
PERIOD_SET_NAME
GL_LEDGER_SET_NORM_ASSIGN
LEDGER_ID (PK)
LEDGER_SET_ID (PK)
START_DATE
STATUS_CODE
AP
AP Period (Periodenstatus)
TABLE
COLUMNS
GL_PERIOD_STATUSES
APPLICATION_ID (PK)
CLOSING_STATUS
PERIOD_NAME (PK)
SET_OF_BOOKS_ID (PK)
COLUMNS
HZ_PARTIES
PARTY_ID (PK)
PARTY_NAME
PARTY_NUMBER
PARTY_TYPE
PERSON_IDENTIFIER
PERSON_FIRST_NAME
PERSON_LAST_NAME
HZ_PARTY_SITES
PARTY_SITE_ID (PK)
LOCATION_ID
REGION
PARTY_SITE_NUMBER
PARTY_SITE_NAME
PARTY_ID
COLUMNS
IBY_EXT_BANK_ACCOUNTS
EXT_BANK_ACCOUNT_ID (PK)
BANK_ACCOUNT_NAME
BANK_ACCOUNT_NUM
BANK_ACCOUNT_TYPE
BANK_ID
BRANCH_ID
AR
AR Period (Periodenstatus)
TABLE
COLUMNS
GL_PERIOD_STATUSES
APPLICATION_ID (PK)
CLOSING_STATUS
PERIOD_NAME (PK)
SET_OF_BOOKS_ID (PK)
COLUMNS
AR_SYSTEM_PARAMETERS_ALL
ORG_ID (PK)
SET_OF_BOOKS_ID
ACCOUNTING_METHOD
RUN_GL_JOURNAL_IMPORT_FLAG
CER_SPLIT_AMOUNT
CER_DSO_DAYS
POSTING_DAYS_PER_CYCLE
INVOICE_DELETION_FLAG
GENERATE_CUSTOMER_NUMBER
TABLE
COLUMNS
HZ_PARTIES
PARTY_ID (PK)
PARTY_NAME
PARTY_NUMBER
PARTY_TYPE
PERSON_IDENTIFIER
PERSON_FIRST_NAME
PERSON_LAST_NAME
HZ_PARTY_SITES
PARTY_SITE_ID (PK)
LOCATION_ID
REGION
PARTY_SITE_NUMBER
PARTY_SITE_NAME
COLUMNS
IBY_EXT_BANK_ACCOUNTS
EXT_BANK_ACCOUNT_ID (PK)
BANK_ACCOUNT_NAME
BANK_ACCOUNT_NUM
BANK_ACCOUNT_TYPE
BANK_ID
BRANCH_ID
Party Merge
TABLE
COLUMNS
HZ_MERGE_PARTIES
BATCH_PARTY_ID (PK)
BATCH_ID
FROM_PARTY_ID
TO_PARTY_ID
MERGE_STATUS
Account Merge
TABLE
COLUMNS
RA_CUSTOMER_MERGE_HEADERS
CUSTOMER_MERGE_HEADER_ID(PK)
CUSTOMER_ID
MERGE_REASON_CODE
MERGE_FAIL_MSG
FA
Asset Book Setup (Afa Buch Setup)
TABLE
COLUMNS
FA_BOOK_CONTROLS
BOOK_TYPE_CODE (PK)
BOOK_CLASS
AMORTIZE_FLAG
INITIAL_DATE
LAST_DEPRN_RUN_DATE
SET_OF_BOOKS_ID
DEPRN_CALENDAR
COLUMNS
FA_CATEGORIES_TL
CATEGORY_ID (PK)
LANGUAGE
DESCRIPTION
COLUMNS
FA_METHODS
METHOD_CODE (PK)
METHOD_ID (PK)
NAME
DEPRN_BASIS_RULE
DEPRN_BASIS_FORMULA
DEPRN_BASIS_RULE_ID
COLUMNS
FA_CONVENTION_TYPES
PRORATE_CONVENTION_CODE (PK)
DESCRIPTION
CREATION_DATE
FA_CONVENTIONS
PRORATE_CONVENTION_CODE (PK)
START_DATE (PK)
PRORATE_DATE
COLUMNS
FA_BOOKS
BOOK_TYPE_CODE
ASSET_ID,
DATE_EFFECTIVE
LIFE_IN_MONTHS
DEPRN_START_DATE
DEPRN_METHOD_CODE
LIFE_IN_MONTHS
ADJUSTED_COST
ORIGINAL_COST
PRORATE_CONVENTION_CODE
PRORATE_DATE
CAPITALIZE_FLAG
DEPRECIATE_FLAG
LAST_UPDATE_DATE
LAST_UPDATED_BY
DATE_INEFFECTIVE
RETIREMENT_ID
RECOVERABLE_COST
LAST_UPDATE_LOGIN
COLUMNS
FA_ADDITIONS_TL
ASSET_ID
LANGUAGE
DESCRIPTION
LAST_UPDATE_DATE
LAST_UPDATED_BY
CREATED_BY
CREATION_DATE
COLUMNS
FA_ADDITIONS
ASSET_ID
ASSET_NUMBER
ASSET_KEY_CCID
CURRENT_UNITS
ASSET_TYPE
ASSET_CATEGORY_ID
PARENT_ASSET_ID
SERIAL_NUMBER
MODEL_NUMBER
IN_USE_FLAG
OWNED_LEASED
NEW_USED
ATTRIBUTE_CATEGORY_CODE
CONTEXT
LEASE_ID
INVENTORIAL
LAST_UPDATE_DATE
LAST_UPDATED_BY
CREATED_BY
CREATION_DATE
LAST_UPDATE_LOGIN
COLUMNS
FA_DISTRIBUTION_HISTORY
DISTRIBUTION_ID
BOOK_TYPE_CODE
ASSET_IDUNITS_ASSIGNED
DATE_EFFECTIVE
CODE_COMBINATION_ID
LOCATION_ID
LAST_UPDATE_DATE
LAST_UPDATED_BY
DATE_INEFFECTIVE
ASSIGNED_TORETIREMENT_ID
TRANSACTION_HEADER_ID_OUT
LAST_UPDATE_LOGIN
Functional Setup
Configure the Profile Options
Profile option 'Sign-On: Audit Level' set to 'FORM'
Profile Option 'Audit Trail: Activate' set to 'YES'
GL
AR
IBY
FA
Create Data Definition with same Code as Concurrent Program Short Name
5
Reconciliation Process
Cash Management
This chapter describes the procedures for performing period-end processing in Oracle
Cash Management Release 12.
Procedures
The following steps are taken for running the period-end processing for Oracle Cash
Management.
1. Complete Daily Cash Management Activities
Complete bank account transfers for the day, validate them, if necessary, and send
payment instructions to the bank.
2. Load Bank Statements
Detailed information from each bank statement, including bank account information,
deposits received by the bank, and checks cleared needs to be entered into Cash
Management. Bank statements can be either manually entered or loaded electronically
from information received directly from the bank.
For organizations with high transaction volumes, bank statements should be loaded
and reconciled on a daily basis.
Refer to: Entering Bank Statements Manually and Loading Bank Statement Open
Interface.
3. Generate Sweep Transactions
To use target balance or zero balance accounts (ZBA) with the banks, the system can
automatically generate transactions to match banking information once the bank posts
the sweeps. Once the bank statements are imported, run the Sweep Transaction
Generation concurrent program. The program will scan the bank statement for sweep
lines and, based on the cash pool setup in the system, create sweep transactions
between the internal bank accounts, which can be accounted for and subsequently
reconciled.
4. Create Bank Statement Cash flows
To handle recurring items such as bank fees and interest on the bank statements use the
Bank Statement Cash Flow Creation program to create system transactions (cash flows)
to match banking information.
Once the bank statements are imported, run the Bank Statement Creation concurrent
program. This program will scan the bank statement for specific codes, as defined in the
Bank Statement Cash Flow Mapping, and create cash flows, which can be accounted for
and subsequently reconciled.
5. Reconcile Bank Statements
Once detailed bank statement information has been entered into Cash Management, the
information must be reconciled with the subledger transactions.
Cash Management provides two methods to undertake reconciliation:
a) Automatic
Bank statement details are automatically matched and reconciled with subledger
transactions. This method is ideally suited for bank accounts that have a high volume of
transactions.
(Refer to Reconciling Bank Statements Automatically)
b) Manual
This method requires a manual match of bank statement details with subledger
transactions. This method is ideally suited to reconciling bank accounts that have a
small volume of monthly transactions. The manual reconciliation method can also be
used to reconcile any bank statement details, which could not be reconciled
automatically.
(Refer to Reconciling Bank Statements Manually)
6. Create Miscellaneous Transactions
During the reconciliation process, miscellaneous transactions for bank-originated
entries, such as bank charges and errors can be created. Oracle Payables payments or
Oracle Receivables receipts can also be manually created.
Important: The automatic reconciliation process can be set up to create
Complete the bank account transfer whether it is manual or automatic and record the
validation if required before completing the transfer.
7. Run Bank Statement Detail Report
This report shows statement and transaction information for a specific bank account
statement, including bank statement header information, statement line detail, and
reconciled transaction detail.
This report lists any un-reconciled transactions separately with their current status, and
the statement totals for each type of transaction, including the amount entered,
reconciled, un-reconciled, over-reconciled and under-reconciled, and gives the option to
select only un-reconciled statement lines.
8. Run Transactions Available for Reconciliation Report
This report shows all transactions available for reconciliation for a specific bank
account. It lists detailed transaction information for Available Receipts, Available
Payment and Available Journal Entries for reconciliation. Detailed information includes
the Customer, Supplier or Batch Name, Transaction Date, Payment Method,
Transaction Number, Currency, and Amount.
This report only lists void payments if the Show Void Payments option on the Systems
Parameters window is checked. It does not list reversed receipts due to user error nor
does it list the associated original receipts that were not reconciled. This report groups
transactions by status so that void or reversed transactions are separate from other
transactions.
9. Resolve Un-reconciled Statement Lines
Resolve the un-reconciled statement lines by manually reconciling the statement lines to
the available transactions.
10. Post to General Ledger
Create journal entries for eligible accounting events generated by Bank Account
Transfers and Bank Statement Cash Flows by submitting the "Create Accounting"
concurrent program. The program creates and optionally transfers and posts journal
entries to General Ledger.
If the transfer of Journal Entries to General Ledger is not generated immediately, the
"Transfer Journal Entries to GL" concurrent program has to be submitted. Please make
sure you are satisfied with the draft journal entries before creating final accounting.
In addition to creating final accounting entries, the program can be run in a draft mode,
in which case draft journal entries will be created. Such journals cannot be transferred
or posted to General Ledger.
11. Run the GL Reconciliation Report
Use this report to reconcile the General Ledger cash account to a bank statement
balance.
This report lists a balance and an adjusted balance for the bank statement. It also lists a
separate adjustment amount for un-reconciled receipts, payments, and journal entries,
tasks:
12. Run the Account Analysis Report for the General Ledger Cash Account
Run the Account Analysis Report from General Ledger for the General Ledger Cash
Account Flexfield and sort by Source. 13. Review the Account Analysis Report
Review the Account Analysis Report to ensure that only bank account related
transactions have been posted to the General Ledger Cash Account by checking the
Source of the transactions. Valid sources will include Payables and Receivables.
Transactions entered directly via General Ledger will have a Source of Manual or
possibly Spreadsheet if ADI is used.
14. Correct any Invalid Entries to the General Ledger Cash Account
(Optional)
Reverse or amend any journals incorrectly posted to the General Ledger Cash Account,
which were highlighted during the review of the Account Analysis Report.
Payables
Procedures
This chapter describes the procedures for performing period-end processing in Oracle
Payables Release 12.
1. Complete All Transactions for the Period Being Closed
Ensure that all transactions have been entered for the period being closed. Completing
all transactions for Oracle Payables:
Complete Prepayments
Complete Payments
distributions.
total and then compare this calculated amount to the total displayed on
the Payments Register Report.
The journal batch will be automatically posted in General Ledger if the mode of
accounting was 'FINAL' and Post in GL was set to 'Yes'.
6. Review the Payables to General Ledger Posting process After Completion.
The following reports can be run to review the invoices and payments that were posted
to Oracle General Ledger, from Oracle Payables, for the period that is to be closed, i.e.
the current accounting period.
posted for the invoice and payment activity for the period, prior to running the report.
For reconciliation of Oracle Payables and Oracle General Ledger when posting is only
performed at period end, the following reconciliation method can be used:
Use the following reports to reconcile transferred invoices and payments to the Open
Account AP Balance Listing Report to ensure that the Trial Balance accurately reflects
the Accounts Payable liability:
Open Account AP Balance Listing Report (for last day of prior period). This is run
to generate the trial balance as of last day of prior period.
Open Account AP Balance Listing Report (for last day of current period). This is run
to generate the trial balance as of last day of current period)
This balancing process will help to ensure that all liabilities recorded in Payables are
reflected in the General Ledger AP liability accounts. If the balance reported by the
Open Account AP Balance Listing Report does not equal the balance in the AP liability
account, use the Account Analysis report and the General Ledger reports to determine
which journals are being posted to that account. Before running the reports, run the
Transfer Journal Entries to GL Program for all transactions in the period that will be
reconciled. Also, be sure to post the transactions in the General Ledger.
Important: Typical AP/GL Reconciliation Example
Ledger journal entries imported from SLA are not included in the
report.
Any additional invoicing will become part of the next periods invoice and asset
processing period.
Tip: If the volume of transactions in Accounts Payable requiring Assets
Receivables
This chapter describes the procedures for performing period-end processing in Oracle
Receivables Release 12.
Procedures
The following steps are taken in performing period-end processing for Oracle
Receivables.
1. Complete All Transactions for the Period Being Closed
Ensure that all transactions have been entered for the period being closed.
To import transactions from an external system or Oracle Projects, ensure that all
transactions and master files have been imported, and review all audit trails for
completeness.
2. Reconcile Transaction Activity for the Period
Reconcile the transaction activity in Oracle Receivables, before posting to the General
Ledger using SLA. This reconciliation process checks that Oracle Receivables
transactions are balanced, ensuring that all items eligible for posting are reflected on the
Sales Journal. Run the following reports for the same accounting period date range:
a. Transaction Register
This report lists all the transactions (i.e. invoices, debit memos, credit memos, deposits,
guarantees and charge backs) entered with a GL date between the period start and
period end dates specified for the period being reconciled. This report shows
transactions, which were entered and completed.
b. Sales Journal by Customer Report and the Sales Journal by GL Account Report
This report enables the review of all transactions for the specified period. The summary
totals for the sales journal are by Posting Status, Company, and Transaction Currency.
This report details, by account type (i.e. receivables, revenue, freight, tax), the General
Ledger distributions for posted and/or un-posted invoices for the specified period.
The total on the Sales Journal by GL Account should equal the total of items eligible for
posting as listed on the Transaction Register. If any discrepancies are evident, research
the customer balances to find out which balance does not tally, using the Sales Journal
by Customer report.
By using the following formula, ensure that the Transaction Register matches the Sales
Journal:
Transaction Register (Items eligible for posting + 2 * Credit Memo Total = Sales Journal
(Debits plus Credits)
Example
$100 + (2 * $20) = Debits $120 + Credits $20
($120 Debits - $20 Credits)
Important: The Transaction Register total for any credits must be
d. AR to GL Reconciliation Report
The AR to GL Reconciliation report compares the account balances in Oracle
Receivables to those in Oracle General Ledger, and highlights journal sources where
discrepancies might exist. This report simplifies the reconciliation process by comparing
Receivables and General Ledger account balances in a single place.
Run the AR to GL Reconciliation report:
Review the Unposted Items report to confirm that all journal entries have posted
Use the posting execution reports to confirm that the Journal Entries exported from
Receivables match those posted in General Ledger.
This report will show a difference between Receivables and GL account balances only if
items did not successfully post to GL accounts. The Difference column indicates how
the activity in Receivables compares to the journal source of Receivables in the General
Ledger. If the actual balance of a specific account is different in Receivables than in GL,
then the following columns highlight the type of journals that affect the account
balances:
GL Subledgers Not AR - Journal entries posted to the General Ledger from other
subledgers, such as Oracle Payables or a legacy feeder system.
During the internal reconciliation process, use the AR Reconciliation report to confirm
that the transactional and accounting data match. However, even if the data matches,
the journals could still post to incorrect GL accounts. The Potential Reconciling Items
report addresses this issue by suggesting journal items that might potentially post to GL
accounts with unexpected account types, thus creating reconciliation issues in Oracle
General Ledger.
Important: Where there are multiple operating units within the same
ledger all operating units must be ready to close at the same time. All of
the operating units that share a ledger also share the same period
status. When the period status is updated to 'Open' in one operating
unit, that period is opened for all operating units within the ledger.
Transactions
Adjustments
Invoice Exceptions
Applied Receipts
Unapplied Receipts
The following list represents the various components that affect a customer's balance
and the reports, which can be run and reviewed to reconcile these components:
Component
Report
Beginning Balance
Aging reports
Transactions
Transaction Register
Adjustments
Adjustment Register
Exceptions
Applied Receipts
Unapplied Receipts
Unapplied Receipts
Register for any transactions, which are not open in Receivables, and
therefore do not show up in the aging reports
Use this report to review a list of receipts for a specified date range.
Important: Normally the total of the Receipts Journal report should
equal the total of all the receipts in the Receipt Register for the same GL
date range
Create Accounting
This request, owned by SLA, can be submitted from the transactions screen or even
from the SRS screen. The accounting is done at the ledger level and the program has the
ability to transfer and import into the General Ledger based on the parameters
specified.
If Create Accounting is submitted in the 'Final' mode without transferring it to the
General Ledger, the entries will have to be transferred separately.
8. Reconcile the General Ledger Transfer Process
The Create Accounting program produces the Subledger Accounting Program report
that shows the subledger journal entries created for successful accounting events.
Compare this report to the Journal Entries Report (run in Posted status mode) and
verify that they match. Use the same General Ledger date ranges for the Journal Entries
Report and the Create Accounting program.
Create Accounting will generate a report which details the transferred transactions,
transactions in error etc.
Once transactions and receipts have been transferred to the GL tables, Oracle
Receivables regards these items as having been 'posted' within the sub-ledger. Account
balances for transactions and receipts can be reconciled by generating the Sales Journal
by GL Account Report, the Receipts Journal Report (in 'transaction' mode) and the
Journal Entries Report for posted items. The account totals in the Sales and Receipt
journals should match the corresponding account balances in the Journal Entries
Report.
Important: The 'Detail by Account' version of the Journal Entries Report
When running any Oracle Receivables reports that display accounting involving
transactions that have been posted to GL, the following statements apply:
If SLA final accounting lines exist, then SLA accounting is displayed. If SLA accounting
lines do not exist, then AR distribution accounting is displayed.
9. Reconcile the Journal Import Process
The Create Accounting program submits Journal Import automatically when launched
in 'Mode = Final' and 'Transfer to GL = Yes'. Reconcile the Journal Import by manually
reviewing the transactions in the Subledger Accounting Program Report, and
comparing them with the Journal Entries Report output.
The Journal Entries Report is a new Subledger Accounting BI Publisher report which is
available from the subledger applications and can be run with parameter Posted = Yes,
No or ALL, which users can copy and modify the report template according to their
needs.
Important: If the customer is using Reporting/Accounting sequences,
they can run the Journal Entries Report using Sequence Ranges created
by the Create Accounting program, and compare the sum total with the
Journal Import Execution Report. 10. Close the Current Oracle
Receivables Period Close the current period in Oracle Receivables using
the Open/Close Accounting Periods window.
Assets
This chapter describes the procedures for performing period-end processing in Oracle
Assets Release 12.
Procedures
The following steps are taken in performing period-end processing for Oracle Assets.
1. Complete All Transactions for the Period Being Closed
Ensure that all transactions have been entered for the period being closed.
Once a depreciation period in Oracle Assets has been closed, it cannot be re-opened.
Check that transactions are not being entered, as Oracle Assets prevents transaction
data entry while the Depreciation Run Process is running.
Completing all transactions for Oracle Assets:
Complete Adjustments
Complete Retirements
Complete Transfers
Complete Reinstatements
Tip: Ensure that all transactions have been entered for the period
before depreciation is run. Once the program closes the period, there is
no possibility to reopen.
The Run Depreciation process is performed independently for each asset book. The
asset book and depreciation period are selected on the Run Depreciation window.
When the process is run, Oracle Assets automatically calculates depreciation for all
assets, calculates gains and losses for all retirements, and then runs the appropriate
Reserve Ledger Report.
If an asset has not been assigned to a distribution line, the Run Depreciation process
will end with an error status. By using the depreciation log file the unassigned assets
will be shown, or review the Depreciation Program Report via the Requests window.
The unassigned assets can then be assigned to distribution lines and the Depreciation
process resubmitted. The Depreciation process only processes assets that have not
already been processed.
The Run Depreciation process will close the current depreciation period and open the
next only if the Close Period checkbox is selected.
This process submits concurrent requests to run the calculate gains and losses,
depreciation, and reporting programs off-line.
When the depreciation program is run for an Asset Corporate Book, the Journal Entry
Reserve Ledger Report will be generated. However, if the depreciation program is run
for a Tax book, then the Tax Reserve Ledger Report is generated. Both Reserve Ledger
Reports can also be run at any time, using the Submit Requests window.
5. Create Accounting
Submit the Create Accounting process from SRS screen. This process generates
accounting and also enables transfer to and posting in GL. This program is owned by
SLA. The program can be run in 3 modes: Draft, Final and Final Post. This program
replaces the 'Create Journal Entries' in Oracle Assets. If the program is run in FINAL
mode with POST as yes, then the entries will be automatically posted to the General
Ledger. If the program is run in FINAL mode with 'Transfer to General Ledger' as NO,
then run Transfer Journal Entries to GL Assets later on. For more details, please refer
to the Oracle Assets User Guide.
The depreciation expense journal entries can be created from an Asset Corporate or an
Asset Tax book and transferred to the General Ledger.
There is no need to run depreciation before creating accounting transactions. Run the
Create Accounting process as many times as necessary within a period.
This program creates adjusting journal entries to depreciation expense, bonus expense,
accumulated depreciation accounts, and bonus reserve accounts when entering prior
period additions, transfers, or retirements.
Warning: Journal entries cannot be created from asset budgeting books.
Journal entries can be created for any period in the current fiscal year for which journal
entries have not already been created. The GL period for which journal entries are to be
6. Rollback Depreciation
There is no separate program as in Release 11i to perform the rollback. Any alteration
on a depreciated asset will result in an automatic rollback.
Important: Rollback happens at Asset Level in Release 12, unlike at
each journal entry batch using the Post Journals window in Oracle General Ledger to
update the account balances.
Optionally, use the More Actions button to post each journal individually or, if the
source of Assets has been included in the Auto Post options, the Assets Journals will be
posted automatically in the next scheduled posting run.
9. Reconcile Oracle Assets to the General Ledger Using Reports
Reserve Ledger Reports
a) Journal Entry Reserve Ledger
Reconcile with the Account Analysis with Payables Details Report.
b) Tax Reserve Ledger Report
Additionally, the Account Reconciliation Reserve Ledger Report can be run.
Balances Reports
a) Cost Detail and Cost Summary Reports
b) CIP Detail and CIP Summary Reports
c) Reserve Detail and Reserve Summary Reports
d) Revaluation Reserve Detail and Revaluation Reserve Summary Reports
e) Account Analysis Report
Transaction Reports
a) Asset Additions Report
b) Cost Adjustments Report
c) Asset Reclassification Report
d) Asset Transfers Report
e) Asset Retirements Report
f) Reinstated Assets Report
g) Cost Clearing Reconciliation Report
General Ledger Reports
a) Unposted Journals Report
Run the General Journals Report for Posting Status = Unposted to reconcile with the
Drill Down reports.
b) Posted Journals Report
Run the General Journals Report for Posting Status = Posted.
c) Account Analysis Report with Payables Detail
The ending balance of this report reconciles with the Reserve Summary Report ending
balance.
General Ledger
This chapter describes the procedures for performing period-end processing in Oracle
General Ledger Release 12.
Important: The Period-End and Year-End processes are the same if
Procedures
The following steps are taken in performing period-end processing for Oracle General
Ledger.
1. Ensure the Next Accounting Period Status is set to Future Entry
Set the status of the next accounting period to 'Future Entry' if it is not already done,
except at year-end. (Future entry will enable automatic journals such as reversals to be
generated even if the period is not fully opened)
At year-end, it is recommended to complete all period-end processing, prior to opening
the first period of the new fiscal year.
Maintain period-end exchange rates for all foreign currencies, which should be
translated.
2. Complete Oracle Sub-ledger Interfaces to Oracle General Ledger
Journals are created to enter accounting information into Oracle General Ledger.
Journals are comprised of batch level, journal entry level, and journal entry line level,
information.
Ensure that the accounting information from the sub-ledgers (Oracle Payables,
Purchasing, Inventory, Order Management, Receivables, Cash Management, Assets,
Treasury and Projects) have been transferred to Oracle General Ledger. Run the Create
Accounting program or the appropriate program (based on previous runs of Create
Accounting) to transfer data from the subledgers into Oracle General Ledger. The
Create Accounting process of SLA submits the Journal Import Process (based on
appropriate parameters as discussed in previous sections). This process populates the
GL_JE_BATCHES, GL_JE_HEADERS, and GL_JE_LINES tables, and is run
automatically.
Important: The journal posting process, run in Oracle General Ledger,
Journal Import:
Delete any error journal entry batches. Determine the source(s) for these error
batches, and retrieve the run ID from the Journal Import Execution Report.
Re-import these corrected journal entry batches from the GL_INTERFACE table.
Simply re-enter the source from which journal entry batches are to be imported.
Important: If journal import fails when importing from the sub-ledger
modules, data will be rolled back to SLA tables, so that there would not
be any data left in the GL_INTERFACE table, when the profile option
'SLA: Disable Journal Import' is set to 'No'.
successfully imported from the feeder systems. Then update and post
them.
The Posting Execution Report facilitates review of the results of journal entry
posting. Oracle General Ledger generates this report every time posting of journal
entry batches occurs. This report indicates any errors in journal entries or journal
entry lines that were discovered during the posting process.
Run the Journals - General Report with a Posting Status of Error Journals to review
error journal entry batches and their journal entries.
Request accounting reports such as general ledgers, general journals, trial balances, and
account analysis reports to facilitate reconciliation of Oracle General Ledger with the
other Financials and Manufacturing modules.
a) General Ledger Reports General Ledger Reports facilitate tracing back each
transaction to the original source. These reports list beginning and ending account
balances and all journal entry lines affecting each account balance. The report provides
detailed information on each journal entry line including source, category and date.
b) Accounts Analysis Reports
These reports list the accumulated balances of a range of Accounting Flexfield and all
journal entries that affect that range. Detailed information is provided for each journal
entry line, which includes the source, batch name, and description.
c) Trial Balance Reports
Use trial balance reports to review account balances and activity in summary or detail.
d) Journal Reports
These reports print journal entry batches and include journal entry subtotals,
descriptions and reference information for each journal entry line. Report on foreign
currency, posted, unposted or error journal entries, and report on a specific batch or on
journal entries from a specific source.
Journal Reconciliation:
Other journal entry adjustments, for example, write-offs (refer to Accrual Write-Off
Report), and manual accruals can also be entered into Oracle General Ledger at this
point.
16. Perform Final Adjustments
Enter and Post any final adjustments as required by the organization.
17. Close the Current Oracle General Ledger Period
Close the current GL accounting period in the Open and Close Periods window. The
period can be 'soft closed', if later adjustments to the balances for that period may be
applicable, or 'permanently closed', which means that the period cannot be re-opened in
the future.
This step will need to be repeated for each ledger unless a data access set is setup to
give access to multiple ledgers. This is controlled by GL: Data Access Set profile option.
With a data access set across ledgers programs can be run for multiple ledgers from a
single responsibility. For more information please refer to the Oracle General Ledger
User Guide.
18. Open the Next Oracle General Ledger Period
Open the next General Ledger accounting period in the Open and Close Periods
window. This operation can be performed across ledgers provided the 'Data Access Set'
grants access.
Choose status 'Open' to open a new accounting period, or to re-open a previously soft
closed period to enable adjustments to be made.
Generate and post reversal journals that were entered in the prior period. For example
any Oracle Purchasing receipt accruals and manual accruals.
This step will need to be repeated for each ledger unless a data access set is setup to
give access to multiple ledgers. Any Journals entered into this period while it had a
status of Future Enterable, can now be posted as the period now has a status of Open.
This is controlled by GL: Data Access Set profile option. With a data access set across
ledgers programs can be run for multiple ledgers from a single responsibility.
Asset
Liabilities
6
Reconciliation Reports
Cash Management
Bank Statement Detail Report
Parameters:
Parameters:
Output:
Output:
Output:
Output:
Payables
Invoices on Hold Report
Parameters:
Output:
Output:
Output:
Payment Register
Parameters:
Output:
Parameters:
Output:
Output:
Output:
Output:
Receivables
Transaction Register
Parameters:
Output:
Output:
Output:
Output:
AR to GL Reconciliation Report
Parameters:
Output:
Output:
Receipts Journal
Parameters:
Output:
Receipt Register
Parameters:
Output:
Output:
Output:
Output:
Assets
Calculate Gains and Losses
Parameters:
Output:
Output:
Parameters:
Output:
Output:
Output
Parameters
Output
Output:
Output:
Output:
Output:
Output:
Output:
Output:
Output:
Output
Output
Output:
Output:
Output:
Output:
Output:
Output:
Output:
Output:
Output:
Output:
General Ledger
Journals Batch Summary
Parameters:
Output:
Output:
Journals - Entry
Parameters:
Output:
Journal - Lines
Parameters:
Output:
Output:
Output:
Output:
Trial Balance
Parameters:
Output:
Output:
Output:
Output:
Output:
Output:
Output:
VAT Reconciliation
The following section describes the reconciliation process for input taxes und output
taxes in the Oracle E-Business Suite R12.
Procedures
The following steps need to be performed before the reconciliation of the input /output
taxes can be done.
Important: Before starting the tax reconciliation all accounting entries
Parameters:
Output:
This report will show all input tax und output tax amounts, the tax accounts, and the
revenue and liability accounts.
To reconcile the output tax the tax amount from row "Tax Class Total" for Tax Class
"Output" needs to be compared with the actual output tax value booked in GL.
To reconcile the input tax, the tax amount from row "Tax Class Total" for Tax Class
"Input" needs to be compared with the actual input tax value booked in GL.
If the amounts are the same, then the report "CLE: Germany Preliminary VAT
Declaration Report" can be started. This report provides all the necessary information to
fill out the "VAT Declaration Form".
If the amounts are not the same, the following reports can be started for further
reconciliation analysis "CLE: VAT Transactions With Difference Report" and "CLE:
German VAT Detailed Transaction Report (1)" (section 3 and 4 of this chapter).
2. CLE: Germany Preliminary VAT Declaration Report
Parameters:
Output:
The report "CLE: Germany Preliminary VAT Declaration Report" provides all necessary
information to fill out the VAT Declaration Form. The row numbers, column numbers
and the column tax of the "CLE: Germany Preliminary VAT Declaration Report"
represent the row number, the base for tax and the tax amount of the VAT Declaration
form.
Output:
The report "CLE: VAT Transactions With Difference Report" shows differences on a
transactional level between the booked tax amount on the transaction and the
computed tax amount.
4. CLE: German VAT Detailed Transaction Report (1)
Parameters:
Output:
The report "CLE: German VAT Detailed Transaction Report (1)" shows all transactions
booked in AP, AR and GL. This report is used together with the Oracle standard report
"Account Analysis Report" for analysis and identification of possible differences.
CLE: German VAT Detailed Transaction Report (1)
Output:
Output:
Index
Symbols
General Controls/Cash Clearing, 2-23
A
Account Analysis (180 Char), 6-67
Account Analysis Report, 5-4, 6-4
Accounting Flexfield (Kontoflexfelddetails), 4-1
Accounting Sequencing, 2-2
Accounting Setup Manager: Subledger
Accounting Options, 2-6
Accounting Setup Manager: Suspense
Accounting , 2-7
Account Merge , 4-6
Adding Costs to an existing Asset, 3-17
Allow Amortized Adjustments, 2-36
AP, 4-2
AP/AR-Netting, 3-9
AP Period (Periodenstatus), 4-2
AR, 4-4
AR Period (Periodenstatus), 4-4
AR System Parameters (Debitorenoptionen), 4-4
AR to GL Reconciliation Report, 6-21
Asset Additions By Cost Centre Report, 6-48
Asset Additions Report, 6-39
Asset Additions Responsibility Report, 6-49
Asset Books, 2-37
Asset Book Setup (Afa Buch Setup), 4-6
Asset Categories Setup (Anlagegruppensetup), 46
Asset Disposals Responsibility Report, 6-50
Asset Inventory Report, 6-51
Asset not assigned to any Cost Centre Listing, 6-
29
Asset Numbering, 3-17
Asset Prorate Convention Rules, 4-7
Asset Reclassification Report, 6-41
Asset Retirements by Cost Centre Report, 6-52
Asset Retirements Report, 6-43
Assets, 2-36, 3-17, 5-18, 6-28
Assets, Asset numbers, Asset Categories, 4-9
Assets and Asset books , 4-7
Assets and Asset Description, 4-8
Assets Asset Distributions, 4-10
Asset Summary Report (Germany), 6-54
Asset Transfers Report, 6-42
Audit Trail, 4-1
Audit Trail Report , 4-12
B
Balance Sheet (example FSG report), 6-69
Balances Reports, 5-22
Bank Definition, 2-17
Banking Model, 2-16
Banking Setup, 2-16
Bank Statement Detail Report, 6-1
C
Calculate Gains and Losses, 6-28
Cash Management, 5-1, 6-1
Changing APPS Password, 2-1
Changing seeded asset details, 3-18
Check Digit, 2-23
CLE: German VAT Detailed Transaction Report
(1), 6-75, 6-77
Index-1
D
Define a bank branch, 2-18
Define Tables to be Audited, 4-1
Delinquency, 2-35
Depreciation calculation according to 7 II
Einkommenssteuergesetz (EStG), 3-17
Depreciation Methods of an Asset
(Abschreibungsmethoden einer Anlage), 4-7
Depreciation Projections, 5-21
Disbursement Options, 2-32
Discount Invoices/Credit Memo fully applied, 34
Discount Partial Payments, 3-4
Document Sequencing, 2-2
Dunning plan, 2-36
F
FA, 4-6
Format Payment Instructions , 3-15
Freeze Journals, 3-3
Functional Setup, 4-11
Fund Capturing, 3-16
Funds Capturing Process, 2-33
Funds Capturing Setup, 2-33
Funds disbursement, 3-10
Funds Disbursement Setup, 2-31
G
General Ledger, 2-2, 3-1, 5-23, 6-57
General Ledger - Entered Currency, 6-61
General Ledger Reconciliation Report, 6-3
General Ledger Reports, 5-22
Generate Sweep Transactions, 5-1
GL, 4-1
GL Period (Periodenstatus), 4-1
I
IBAN CODE, 2-23
Invoice GL-Date Mechanism, 3-4
Invoice Printing, 3-8
Invoices on Hold Report, 6-5
J
Journal Batches, 5-26
Journal Entries Report, 6-6
Journal Entry Report, 6-20
Journal Entry Reserve Ledger / Tax Reserve
Ledger Report, 6-29
Journal - Lines, 6-60
journal Reconciliation, 5-28
Journals - (180 Char), 6-58
Journals Batch Summary, 6-57
Journals - Document Number, 6-62
Journals - Entry, 6-59
Jurisdictions, 2-41
Index-2
Ledgers, 2-3
Ledger Sets, 2-3
Load Bank Statements, 5-1
Localized Asset Summary Report, 3-18
M
Manage Payment Documents, 2-24
Manual Journal entries with VAT, 3-1
MultiOrg Access Control, 2-5
N
New Localizations R12, 3-18
O
Open Account AP Balance Listing Report, 6-13
P
Party Merge , 4-5
Patch Level, 3-1
Payable Options, Single Payment, Allow
Pre-Date, 3-4
Payable Options Curreny, 2-10
Payable Options Invoice , 2-11
Payable Options Payment, 2-11
Payables, 2-9, 3-4, 5-4, 6-5
Payables Options - Discount, 2-9
Payables Options Interest , 2-11
Payables System Setup, 2-9
Payables to General Ledger Posting process, 5-7
Payee, 2-34
Payment File Accompanying Letter, 3-15
Payment Methods, 2-31, 2-33
Payment Process, 2-31
Payment Process Requests, 3-12
Payment Register, 6-8
payments, 2-28
Payments, 3-10
Payments Schedules Report, 3-14
Payments Setup - Overview, 2-28
Payment System, 2-30
Posted Invoices Register, 6-12
Posted Invoices Register , 5-8
Posted Payments Register, 5-8
Post to General Ledger , 5-3
Prepayments ISTversteuerung von
Anzahlungen, 3-6
Procedures, 5-1
Profile Options, 2-6
Profit and Loss (example FSG report), 6-68
Prorate Expense, 2-10
Prorate Tax, 2-10
R
Receipt Overapplication, 3-9
Receipt Register, 5-14, 6-24
Receipts Journal, 6-23
Receipts Journal Report , 5-14
Receivables, 2-11, 3-5, 5-10, 6-16
Recommendations , 2-1
Reconcile Bank Statements, 5-2
Reconcile Oracle Payables Activity , 5-8
Reconcile Receipts, 5-14
Reconcile the Journal Import Process, 5-16
Reconciliation Process, 5-1
Refunds, 3-9
Reinstated Assets Report, 6-44
Reserve Detail and Reserve Summary Reports, 635
Reserve Ledger Reports, 5-22
Resolve Un-reconciled Statement Lines, 5-3
Responsibility Reports, 5-23
Responsibility Reserve Ledger Report, 6-53
Retirement Accounts, 2-37
Revaluation Reserve Detail and Revaluation
Reserve Summary Reports, 6-34, 6-38
Rollback Depreciation , 5-21
Rules, 2-43
Run Bank Statement Detail Report, 5-3
Run Calculate Gains and Losses , 5-18
Run Depreciation, 5-19
Run the GL Reconciliation Report , 5-3
Run Transactions Available for Reconciliation
Report , 5-3
S
Sales Journal by Customer , 6-18
Sales Journal by Customer Report and the Sales
Journal by GL Account Report, 5-11
Sales Journal by GL Account Report, 6-19
Scoring Engines and Scoring Components, 2-35
Security Profile, 2-5
Index-3
T
Taxes, 2-39
Tax regimes, 2-38
tax reports, 5-30
Templates, 3-11
Third Party Control Accounts , 2-7
Transaction Register, 6-16
Transaction Register , 5-11
Transaction Reports , 5-22
Transactions, 2-35
Transactions Available for Reconciliation Report,
6-2
Transmission Configuration, 2-29
Trial Balance, 6-64
Trial Balance - Detail, 6-65
Trial Balance - Expanded, 6-66
U
Unaccounted Transactions Report, 6-7
Unapplied Receipts Journal, 6-22
Unplanned Depreciation and Cost Adjustments,
3-17
Index-4
V
VAT Declaration form, 6-74
VAT Reconciliation, 6-71
W
Web ADI Journal Entries, 2-8
Work Queue, 2-35