Interviw Quetion Answer

Below is a list of 25 Important questions that is asked in almost every financials technical
interview question. I have also included some of the functional questions that are
asked.Answers are included.
Qns: What is Flex field? What are different types of Flex field?
Ans: Flex field is used to capture information of your Organisations.
Qns: Difference between KFF and DFF.
KFF
Unique identifier
Stored in segment Column
DFF
Is used to capture additional information
Stored in attribute Column
Qns: How many KFF are in GL. AP , AR.
Ans:
Module KFF
GL Accounting FF
AP No KFF
AR Sales tax Location FF
Territory Flexfield.
Qns: What is symbol of DFF in the Forms?
Ans: Square Bracket [ ].
Qns: What is structure of KFF in the Accounting Flexfields.
Ans: Company
Cost center
Account
Product
Future use.
Qns: How many segments are in AFF.
Ans: max 30 segments and min two.
Qns: What are flexfield Qualifiers.
Ans: Flexfield Qualifiers is used to identify the segments. Various types of flexfield qualifiers
are listed below:
a) Balancing Segment Qualifier.
b) Cost Center segment Qualifier.
c) Natural Account Segment Qualifier.
d) Intercompany Segment Qualifier.
Qns: What is Dynamic Insertions?
Ans: u can create Code Combinations at run time.
Qns: In which table Code Cominations id is stored.
Ans: GL_CODE_COMBINATIONS.
Qns: In which table flex values are stored.
Ans: 1. fnd_ flex_Values
2. fnd_ flex_Values_tl
Qns: What is set of Books and in which table set of book is stored.
Ans : Set of Books is a Financial Reporting entity which Consist of three C.
a) Chart Of Accounts
b) Currency
c) Calendar.
Set of Books is stored in GL_SETS_OF_BOOKS
Qns: In which table Currency and Period Type Name are stored.
Currency – FND_CURRENCIES
Period – GL_PERIOD_STATUSES
Qns: In which table Segment Values are stored and concatenated values are stored.
Ans: 1. GL_CODE_COMBINATIONS
2. GL_CODE_COMBINATIONS_KFV.
Qns: What are different types of Currency.
Ans: Functional Currency
Foreign currency.
Qns: What are different types of Calendars .
Ans: Different types of Calendars are listed below
a) Fiscal
b) Accounting
Qns: How will you attach set of Books to the Responsibility?
Ans: through Profile. GL SETS OF Books Name.
Qns: What is Profile and what are different types of Profiles.
Ans: Profile: Profile is the changeable option that affects the way your application runs.
There are two types of profile.
1. System defined
2. User defined
Qns: What are different Profiles Level available in oracle apps.
Ans: Below are the Profiles Level available in oracle apps
1. Site(Lowest level)
2. Application
3. Responsibility
4. User.
Qns: Write Name of some Profile options.
Ans:
1. GL Sets of Books Name

2. GL sets of Books id
3. MO:Operating unit (multi org).
4. HR:User type.
Qns: What is cycle of GL.?
Ans: In simple and layman words-
1. Open the period
2. Create Journal Enteries
3. Post the Journals.
Qns: In Which tables Journal entries created.
Ans: Important tables are-
1. Batch: GL_JE_BATCHES
2. Header: GL_JE_HEADERS
3. Lines : GL_JE_LINES
Qns: After Posting data goes in which tables.
Ans: GL_BALANCES.( Column Period_net_cr, period_net_dr).
Qns: What are Important tables in GL.
Ans:
1. GL_JE_BATCHES
2. GL_JE_HEADERS
3. GL_JE_LINES
4. GL_BALANCES
5. GL_SETS_OF_BOOKS
6. GL_CODE_COMBINATIONS
7. GL_PERIOD_STATUES
8. GL_INTERFACE
Qns: In which table Supplier information’s is stored.
Ans: Supplier information can be found in following tables
1. PO_VENDORS
2. PO_VENDOR_SITES_ALL
3. PO_VENDOR_CONTACTS
Qns: What is difference org_id and Organization_id.
Ans: Org_id is for operating unit and organization_id is for inventory organization.
Mahmoud Maher on January 1, 2011
Goal
1. You have defined Sequencing- reporting for both subledger and GL journal entry - event
GL period
close.
After closing the period in GL, the ‘Create Reporting Sequence Number’ program is
automatically launched and completed normally but when checking the reporting sequence
number for Subledger journals and GL journal entries – only the reporting sequence
numbers for GL journal entries are shown and no reporting sequences for Subledger journals
are available.
How to view the reporting sequence created and assigned to subledger journals?
Solution
This is the intended functionality.
For subledger journals you can see the reporting sequence in SLA level not in GL. For
subledger journals GL can’t transfer the reporting sequence. Only manual journals which are
created in GL will get the reporting sequence. For subledger journals you can see the
reporting sequence in SLA level only .If however a subledger journal is reversed user will not
get a reporting sequence because the reversals do not populate the xla_seq_je_headers_gt
table that gets the sequence
In order to see the reporting sequences for subledger journals in SLA:
- Log in with your SLA responsibility;
- Check your setup according to ‘Oracle Subledger Accounting Implementation Guide

Release 12′ – Chapter 7 ‘Reporting Sequence’- page 7-4 ‘Reporting Sequence Process Steps’
and following.
- Navigate to Subledger Journal Entries > Lines > make your query and see the transactions
retrieved.
- In the ‘Transaction information’ area note the ‘ + Show additional information’ : unhide the
information ; at this step you can see your accounting and reporting sequences numbers.
Note: In order to have the assigned reporting sequences used you have to:
- Check the ‘journal entry status’ of ‘Final’; draft entries are not assigned a reporting
sequence;
- Check that the transactions are posted in GL;
- Check that the GL period has been closed and the automatically launched process ‘Create
Reporting Sequence Number’ has completed normally;
- At the time you check your SLA reporting sequences numbers the period in GL has not
been re-opened (the program erases the sequences that are assigned to the journal entries that
belong to the reopened period).
Posted in General Ledger, Oracle E-Business Applications, Oracle Financial, Subledger

Accounting | Leave a Comment »
R12 What are the Differences Between Accounting

Sequencing and Reporting Sequencing?
Posted by Mahmoud Maher on January 1, 2011
The accounting sequence is assigned to Subledger Accounting journal entries at the time that
the journal entry is completed. The sequence is assigned in the completion date order using
the GL date as the date criterion for determining the sequence to be used.
The reporting sequence is assigned to both Subledger Accounting journal entries and General
Ledger journal entries when the General Ledger period is closed. This sequence is used by
most of the legal reports required in some countries as the main sorting criterion to display
the journal entries.Reporting sequence is optional.
These two sequences are not mutually exclusive and can coexist in the same journal entry.
Note: for more details

-Oracle� Financials Implementation Guide (Part No. B16386-01) contains a
separate chapter on Accounting and Reporting Sequencing;
-Oracle� Subledger Accounting Implementation Guide chapter on Reporting Sequencing;
Setup:
1 Go to Setup > Financials > Sequences >.Assign
2.Select your General Ledger
3.Select Sequence Entity : ‘Subledger Journal Entry’
4.Select Sequence Event : ‘GL Period Close’: for fiscal reporting during accounting period
close./
‘Accounting’: for fiscal accounting of journal entries originating in the subledgers.
5 .Select Sequence Entity : ‘GL Journal Entry’
6. Select Sequence Event: ‘GL Period Close’: for fiscal reporting during accounting period
close./
‘Posting’ : for fiscal accounting of journal entries originating in the general ledger.

A Case Study on R12 SLA

Posted by Mahmoud Maher on October 7, 2010
A Case Study on R12 SLA

Download
Posted in Oracle E-Business Applications, Oracle Financial, Subledger Accounting | Leave a

Comment »
Account Generator in Oracle Assets

Posted by Mahmoud Maher on September 14, 2010
Oracle Assets uses the Account Generator to generate accounting flexfield combinations for
journal entries. The Account Generator allows you to designate a specific source for each
segment in the account for which Oracle Assets creates a journal entry. The Account
Generator gives you the flexibility to create journal entries according to your requirements.
You can specify to what detail to create journal entries, and you can specify the detail level
for each book and account type.
For example, when creating journal entries for asset cost, you can specify that the cost center
segment comes from the depreciation expense account of the distribution line you entered for
the asset in the Assignments window. Or, you can specify that the cost center comes from the
default value you defined for the depreciation book.
Oracle Assets provides two seeded Account Generator processes.
 Generate Default Account process

 Generate Distribution Detail Account process
The Generate Default Account process creates journal entries without cost center level detail,
except for depreciation expense. Using the default assignments, it creates journal entries
using the balancing segment from the distribution line in the Assignments window and the
natural account segment from the asset category or book, depending on the account type. The
Account Generator gets the other segments from the default segment values you entered for
the book. You can modify the default Account Generator processes so that Oracle Assets
creates journal entries to a different detail level.
The Generate Distribution Detail Account process creates journal entries with cost center
level detail. It creates journal entries using the distribution expense account for all segment
values, except the natural account segment. The natural account segment is created from the
asset category or book, depending on the account type. You can modify the default Account
Generator processes so that Oracle Assets creates journal entries to a different detail level.
Posted in Asset, General Ledger, Oracle E-Business Applications, Oracle Financial,

Subledger Accounting | Leave a Comment »
Oracle General Ledger Integration

Oracle General Ledger is one of the core product of EBS suite, and this is Integrated with
almost every segment within EBS.Here is a list of just some of the Financial ,manufacturing
and Human Resource Management products that integrate with General Ledger. Typically the
integration of General ledger in EBS can be best understood as:
Oracle Financial
 Oracle Payables sends invoices, payments, realized gain and loss on foreign
currency, and invoice price variance to GL.
 Oracle Receivables sends invoices, payments, adjustments, debit memos, credit
memos, cash, chargebacks, and realized gain and loss on foreign currency to GL.
 Oracle Assets sends capital and construction in process asset additions, cost
adjustments, transfers, retirements, depreciation, and reclassifications to GL.
 Oracle Purchasing sends accruals or receipts not invoiced, purchase orders, final
closes, and cancellations to GL.
 Oracle Projects sends cost distribution of labor and non-labor costs, and project
revenue to GL.
 Oracle Treasury sends revaluation and accrual entries to GL.
 Oracle Property Manager sends revenues and expenses related to real estate to GL.
 Oracle Lease Management sends accounting distributions related to leases, such as
bookings of contracts, accruals, asset dispositions, terminations, and adjustments for
multi-GAAP contracts to GL.
Oracle HRMS and Payroll
 Oracle HR shares employee information with GL.

 Oracle Payroll sends salary, deductions, and tax information to GL.
Oracle Manufacturing:
In terms of manufacturing this is Integrated as:
 Oracle Inventory sends cycle counts, physical inventory adjustments, receiving

transactions, delivery transactions, intercompany transfers, sales order issues, internal
requisitions, sub-inventory transfers, and Cost of Goods Sold (COGS) to GL.
 Work In Process(WIP) sends material issues or backflush from WIP to GL, along
with completions, returns, resource and overhead transactions, and cost updates.
 Oracle Labor Distribution normally sends salary costs to GL.
Posted in General Ledger, Oracle E-Business Applications, Subledger Accounting | Leave a

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Part III : Impact of SLA on Journal Import in General

Ledger – Setups related to Journal Import
Posted by Mahmoud Maher on August 31, 2010
Part III : Impact of SLA on Journal Import in General Ledger – Setups related to Journal
Import
1. Journal Import can be run in Summary or Detail mode. This can be set for each
application, as per the requirement. By default this is set to “Summarize by GL Period”, but
can be changed as per the requirement. The setup can be changed from:
• General Ledger responsibility
• Financials -> Accounting Setup Manager -> Accounting Setups
• Query for the Ledger being used
• Update Accounting Options
• Select update for “Subledger Accounting Options”
• “Update Accounting Options” for the Application
• Here there is an option “General Ledger Journal Entry Summarization”, which can be set
to following values:
i. Summarize by GL Date (Journal Import will create summary journals based
on Acccounting Date)
ii. No Summarization (Journal Import will create journals in Detail mode)
iii. Summarize by GL Period (Journal Import will create summary journals based on Period
to which the Accounting Date falls)
Thus the option “General Ledger Journal Entry Summarization” will determine if the Import
for the application is being done in Detail or Summary mode.
2. Prior to Release 12, it was needed that the Journal Import should be run in the same
language as the language, which was used to transfer data to GL_INTERFACE. Though this
is not much relevant now (the transfer and journal import are triggered together); still Journal
Import can be made independent of the language. This can be achieved by running journal
import using the Source and Category Key. Generally the columns user_je_source_name
and user_je_category_name in gl_interface, correspond to the columns
GL_JE_SOURCES.user_je_source_name
and GL_JE_CATEGORIES.user_je_category_name respectively. These values change for
the different language and thus making journal import language-dependent. However while
defining the sources (General Ledger Responsibility : Setup -> Journal -> Source), if the
option “Import Using Key” is selected, then import refers
to GL_JE_SOURCES.je_source_key and GL_JE_CATEGORIES.je_category_key. These
being the Key values are common across languages and hence journal import becomes
language independent.
3. While running Journal Import from General Ledger responsibility, the LOV of Ledger
appears provided there is data in the table GL_INTERFACE for the ledger and the Data
Access Set attached to the responsibility has either Full or Read/Write access to the Ledger.
Journal -> Import -> Run
LOV for Ledger.
In case a different Interface table is being used, the LOV will check for the data in
GL_INTERFACE_CONTROL instead of GL_INTERFACE.
4. Data Access Sets do apply to Journal Import too. To be able to import data, one should
have either Full or Read/Write Access to the ledger and all the Balancing Segment Values for
which data is populated in GL_INTERFACE.
In case one does not have access to the Ledger at all, the LOV for Ledger will not appear in
Journal -> Import -> Run screen and hence he will not be able to submit Journal Import.
If there are multiple balancing segments in the data in GL_INTERFACE, and the
responsibility has access to a few and not to others, then you will be able to run
Journal Import but it will complete in Warning and data will not be imported. Error shown in
the Journal Import Execution report would be:
EM29 : You do not have access to this ledger and account
combination.
Posted in Accounts Payables, Accounts Receivables, General Ledger, Oracle E-Business

Applications, Oracle Financial, Subledger Accounting | Leave a Comment »
Part II : Impact of SLA on Journal Import in

General Ledger
Part II : Impact of SLA on Journal Import in General Ledger

The way Journal Import is triggered from the subledgers has undergone a major change in
Release 12. Execution of Journal Import from the Subledgers depends on the setting of the
Profile option “SLA: Disable Journal Import”.
The profile option “SLA: Disable Journal Import” can be set only at the Site level and hence
will be applicable to all the subledgers/modules. The default value for this profile option
is ‘No’ and this should NEVER be changed, unless suggested by Support or Development.
Setting this profile option to ‘Yes’ breaks the link between SLA and GL, so GL no longer
knows which journals came from SLA. This may cause problems with inquiry and drilldown
on these journals in the future. This option is set to ‘Yes’ only in cases where GL is on a
separate instance than SLA.
SLA: Disable Journal Import set to No.
Value ‘No’ for this profile option indicates that Journal Importwill ALWAYS accompany the
transfer of data from Subledger.Another main implication of this value is that, on failure
of Journal Import, the data will be rolled back to SLA tables and hence we will not have any
data in GL_INTERFACE. Note that for this setting of the profile option, General Ledger will
have very little part to play, as any error in Journal Import will take the data back to SLA
tables and GL_INTERFACE will not have any data in it. This will also mean that “Journal ->
Import -> Run” and “Journal -> Import -> Correct” forms will not be used for the Subledger
data as GL_INTERFACE will never have any data for them. However, these forms will
continue to be used for the data, which is being transferred from some other sources such
as Legacy or some user defined sources for which data is populated in GL_INTERFACE
table, and then Import is run in General Ledger.
Whenever data is transferred from the subledgers, the request doing so, will also trigger the
Journal Import program. The name of the program to transfer data to GL, will change as per
the subledger; we have explained the behavior below with respect to the Payables module. In
Payables, there are three options for transferring data to GL:
1. When Online Accounting is done for Payables transactions, there are three options
available:
a. Draft
b. Final
c. Final Post
For any value of the profile option, Draft and Final optionswork in the same way i.e draft
mode creates the SLA journalsin Draft mode which can be modified afterwards; Final
modecreates SLA journals and the transaction can not be modified after this. The SLA
journal can then be transferred to General Ledger.
Transfer of the journals created in Final Mode is done using ‘Transfer to General Ledger’
concurrent request. However “Final Post” works differently for the two values of the Profile
option. If profile option is set to No, then “Final Post” creates the SLA journals in Final
mode, transfers the data to GL_INTERFACE, runs Journal Import and triggers the General
Ledger Posting program too.
2. When Accounting is done from Submit request form i.e by running the request “Create
Accounting”, it gives the following options:
a. Mode: Draft or Final
b. Transfer to General Ledger
c. Post in General Ledger
If “Transfer to General Ledger” is selected as Yes, then the data is transferred to
GL_INTERFACE and immediately after that Journal Import request is also triggered. In case
of any errors, the data is rolled back to SLA tables.
3. If Accounting is done in Final Mode and we are transferring the data by running the
request “Transfer Journal Entries to GL” request, it gives the option of “Post in General
Ledger” which refers to the Posting program in General Ledger.
Thus there is no option for Journal Import as Journal Import will always be triggered by the
Transfer program. From points 1, 2 and 3, it is evident that Journal Import has become an
inbuilt part of the Transfer Journal Entries program of SLA in Release 12. Thus when the
profile option “SLA: Disable Journal Import” is set to “No”, GL_INTERFACE table will
never have data for Subledgers.
”SLA: Disable Journal Import” set to Yes
This setting for the profile option indicates that the transferring of data from Subledgers will
take place in the same manner as it happens in Release 11i. However changing the value of
the Profile option to Yes is strictly not suppported and should NEVER be used as this may
lead to issues related to the linking between SLA and GL journals. For this value of profile,
the Transfer to GL programs of the subledgers, populates the data in GL_INTERFACE and
then Import needs to be run manually from GL. In case the subledger is providing the option
of running the journal import too along with the transfer to GL, then the request will fire the
Journal Import also. However in case of a Journal Import error, the data will remain in
GL_INTERFACE table.

Part I : Impact of SLA on Drilldown in General Ledger

Part I : Impact of SLA on Drilldown in General Ledger

Drilldown functionality enables users to navigate from a Journal in General Ledger to the
Subledger Journal Entry in SLA and from there to the transaction which has resulted into that
journal.
To enable Journal drilldown from General Ledger, the “Import Journal References” option
should be enabled for the Source.
This can be checked under General Ledger Responsibility at Setup -> Journal -> Sources ->
Define.
Only when this is enabled, the reference data is populated by SLA engine.
The Drilldown in Release 12 is different from the prior releases of the Application. R12
drilldown is Web based and not in the Forms.
1- Navigation to perform Drilldown is the same as in Release 11i.
Journals -> Enter -> Review Journal
Select the journal line and click on “Lines Drilldown”.
2- Drilldown can also be performed from:
Tools -> Drilldown
As mentioned above, Drilldown opens the Web Page instead of Form.
The SLA Page for Drilldown shows the following:
• GL Journal Line information
• Subledger Journal Line information
There are two Options available on this SLA page:
• View Transaction
• View Journal Entry
‘View Transaction’ will take us to the Subledger Transaction form.
E.g for the current journal line, since the Source was Payables, it opens Invoice Workbench.
‘View Journal Entry’ will take to the Subledger Journal Entry details
View Journal Entry has three parts to it.
1. Transaction Information
2. Additional Information (this is hidden by default)
3. Line Details
Apart from this there are some extra details shown at the top of the page, which is the header
level information for the Subledger Transaction.
Some of the important fields in header part of the Subledger Transaction Journal are:
• Ledger Name
• Journal Entry Status
• Balance Type
• GL Date
This is the ‘Additional Information’ section of Subledger Transaction Entry page.
This section shows the details of
• Event
• General Ledger
• Sequences
• Application Accounting Definition
Note that Event and Application Accounting Definition are important from SLA side.
However, from GL perspective the relevant details are Period, Transfer to GL Date and
Transfer to GL status.
This is the last section, ‘Lines’ of the Subledger Journal Entry page.
The important details in this section are:
• Code Combination
• Currency
• Entered Debits and Credits
• Accounted Debits and Credits
Select the link ‘Show’ for any of the lines to view additional details for the transaction line
Profile Options related to Drilldown:
SLA: Enable Subledger Transaction Security in GL
This profile option controls whether the drilldown to SLA will enforce the transaction
security of the application owning the Transaction. For example, if one drills down to
Payables, he will only be able to see Journals for transactions belonging to operating units to
which he has access (based on your MO: Security Profile.) Thus drilldown can be restricted
to the Operating Units to which the responsibility has access. In case the GL responsibility
does not have access to a particular Operating Unit, the Drilldown will not show any data.

R12 Subledger Accounting (SLA)

R12 Subledger Accounting (SLA)
Oracle Subledger Accounting (SLA) is a new module in R12. This document is intended as a
summary
of some of the new features included in this module and an overview at how to access this
information
through the E-business UI and through the database.
SLA is an enhancement to the Global Accounting Engine seen in previously released

versions of the
Oracle E-business Suite. All Global Accounting Engine Features are supported by Oracle
Subledger
Accounting (SLA).
SLA stores complete and balanced journal entries for each Subledger Transaction and GL
Date. This
means that SLA captures detailed drilldown for each captured journal entry line and becomes
a single
source of truth for all accounting, reconciliation and analytical reporting.
SLA offers the ability to create multiple accounting representations for the same Subledger
Transactions each to be stored in a separate ledger.
SLA also offers the ability to substitute new accounts for old ones using mapping
functionality. This is
useful when Accounts become redundant. The redundant account can simply have a mapping
to a new
account. Subledger Accounting will then generate any accounting with the new account code
saving
time having to manually updating entries with redundant codes.
Accounting entries are generated in SLA by running Create Accounting. This can be done at
different
levels in each Subledger. For Receivables, Create Accounting can either be run at
Transaction Level
through a Tools menu option in AR or at Ledger Level through the Concurrent Requests
Screen. For
Payables, it can be run through the Actions Button or at Ledger Level through the Concurrent
Requests
Screen.
When we Create Accounting for Transactions, we can run them in 3 ways:
1 Draft This allows users of the Subledger to review and amend the accounting created
2 Final This is the final version of the accounting for the Subledger
3 Final and Post to

GL
Create a final version of the accounting, transfer to GL and Post in GL
Users have the ability to view accounting creating for each transaction. This is available from
the Tools
menu option within the Transactions screen in Receivables and the Invoices screen in
Payables.
Viewing SLA Data through the User Interface (UI)
An example of the Accounting for a Receivables Transaction is below. We first look at the
transaction
through the Forms UI.
Go to Tool => View Accounting
We can see the Ledger and also the Accounts that the accounting applies to.
Viewing data through the Tables
We now turn our attention to finding where this data is stored in the database. For this we use
the
Oracle Diagnostics Tool for Receivables .
We run the diagnostics for the invoice we looked at above. The accounting for this invoice
can be seen
below:
This also allows us to get at the individual queries used to generate this data, by using the See
SQL
hyperlinks. For this example these are:
XLA_EVENTS:
SELECT *
FROM xla_events xe
WHERE xe.application_id = 222
AND xe.entity_id IN (
SELECT xte.entity_id
FROM xla.xla_transaction_entities xte
WHERE xte.application_id = 222
AND xte.entity_code = ‘TRANSACTIONS’
AND xte.source_id_int_1 = 10066)
XLA_AE_HEADERS:
SELECT *
FROM xla_ae_headers xah
WHERE xah.application_id = 222
AND xah.entity_id IN (
XLA_AE_LINES:
SELECT xal.*
FROM xla_ae_lines xal, xla_ae_headers xah
WHERE xal.application_id = xah.application_id
AND xal.ae_header_id = xah.ae_header_id
AND xah.application_id = 222

XLA_DISTRIBUTION_LINES:
SELECT xdl.*
FROM xla_distribution_links xdl, xla_ae_headers xah
WHERE xdl.application_id = xah.application_id
AND xdl.ae_header_id = xah.ae_header_id
AND xah.application_id = 222
It is obvious that the driving table and link for all SLA transaction queries is the
XLA_TRANSACTION_ENTITIES table. A possible but not complete list of Entity Codes

are:
TRANSACTIONS, RECEIPTS, ADJUSTMENTS, PURCHASE_ORDER, AP_INVOICES,
AP_PAYMENTS. This demonstrates that this is a common table for linking Subledger
Transaction
such as AR Transactions through to their accounting entries.
Subledger Accounting Setup
This is performed for each Subledger such as Receivables or Payables by navigating to Setup
=>
Accounting.
Each Subledger has its own Journal Sources, Entities (remember we saw these above in the
table
XLA_TRANSACTION_ENTITIES), Mapping Sets (for mapping redundant accounts), … .

Please
review the Oracle Subledger Accounting User Guide for an in depth explanation of the setup
required
for each Subledger.
Posted in Oracle Financial, Subledger Accounting | 8 Comments »

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Oracle Application Financial

Setting Up Intracompany And Intercompany Accounting
– An Example
Setting Up Intracompany And Intercompany Accounting

– An Example
Intracompany Balancing Rules
Intracompany balancing rules are used for creation of balancing lines on journals between
balancing segment values either within the same legal entity, or where there is no legal entity
context.
Intracompany balancing rules are used when more than one balancing segment value exists
on a transaction or journal entry, as long as you have selected the Balance Intracompany
Journals option for the ledger. You cannot post a journal in general ledger when the debit and
credit amounts for each balancing segment value do not net to zero. These journals can be
balanced automatically if you setup balancing rules and enable the option to balance cross-
entity journals.
You must define intracompany balancing rules if you want to balance journals automatically.
You may define as many or as few balancing rules as you choose, and each balancing rule
may have many accounting rules. Because balancing is an automated process, there should be
at least one balancing rule with at least one accounting rule to proceed. This default balancing
rule should be defined for the journal source Other and journal category Other for the ledger
and legal entity you wish to balance. The default accounting rule on each balancing rule is
defined for the debit balancing segment value All Other and credit balancing segment value
All Other.
With intracompany accounting, you can define both a debit (due from) and credit (due to)
balancing segment, which gives you more control over each balancing relationship. You can
specify different debit and credit accounts for each different intracompany trading partner,
which is represented by a specific balancing segment value.
All Other is also available as a balancing segment value if you want the balancing segment
value to use the same due to / due from accounts for every intracompany trading relationship
that has not been specifically defined.
If you set up a specific debit and credit balancing segment value, then the exact debit and
credit accounts are used. If you use All Other, the appropriate trading partner balancing
segment value replaces the balancing segment of the account combination.
For balancing many-to-many journals there are several balancing segment values with net
debits and net credits on a transaction and it is not possible to determine which balancing
segment value is trading with which balancing segment value. You can decide whether to use
a clearing balancing segment value or a default rule to handle these transactions.
Evaluation Order
Intracompany balancing allows you to define as much flexibility as your business dictates.
When there are many balancing rules defined, the Balancing API uses an evaluation order to
pick the appropriate rule. Once the balancing rule is selected, there may also be several
accounting rules that must be evaluated on the balancing rule. The Balancing API uses the
same order for evaluating accounting rules, and understanding this evaluation order will help
you define your balancing rules and your accounting rules.
1. Explicitly defined rules are checked first, and they take precedence over all other rules.
a. For balancing rules, this means a specific combination of journal source and journal
category exists for the ledger and legal entity. For example, a balancing rule for the journal
source Adjustment and the journal category Assets.
b. For accounting rules, this means a specific combination of debit balancing segment value
and credit balancing segment value. For example, debit balancing value ’01′ and credit
balancing segment value ’02′.
2. If the Balancing API finds no explicit match, then it next searches for a rule with explicitly
defined combined with a default value.
a. For balancing rules, this means a combination of a specific journal source and the default
journal category for the ledger and legal entity. For example, a balancing rule for the journal
source Adjustment and the journal category Other.
b. For accounting rules, this means a combination of a specific debit balancing segment value
and the default credit balancing segment value. For example, debit balancing value ’01′ and
credit balancing segment value All Other.
3. If the Balancing API finds no match, then it next searches for a rule with a default value
combined with an explicitly defined value.
a. For balancing rules, this means a combination of the default journal source and a specific
source Other and the journal category Assets.
b. For accounting rules, this means a combination of the default debit balancing segment
value and a specific credit balancing segment value. For example, debit balancing value All
Other and credit balancing segment value ’02′.
4. Finally, if the Balancing API finds no match after checking for all three previous steps,
then the default value should be used.
a. For balancing rules, this means a combination of the default journal source and the default
source Other and the journal category Other.
b. For accounting rules, this means a combination of the default debit balancing segment
value and the default credit balancing segment value. For example, debit balancing value All
Other and credit balancing segment value All Other.
Summary Net and Detail Mode
You determine the level that the Balancing API uses when balancing journals by selecting
either Summary Net or Detail. If you select Detail, each line on the journal is balanced
individually and a balancing line is generated for each line on the journal. If you select
Summary Net, the Balancing API summarizes the debits and credits for each balancing
segment value on the journal, determines the overall net debit or net credit for each balancing
segment value, balances using the net amounts for each balancing segment value, and
produces a summary balancing line for each balancing segment value.
When processing in Summary Net mode, the Balancing API retains the differences in
exchange rates for lines with the same balancing segment value. Also note that for lines with
negative amounts (debits or credits), if the Balancing API is set to process in Detail mode, the
sign of each original line is retained in the balancing line. If the Balancing API is set to
process in Summary Net mode, negative debits are interpreted as positive credits and
negative credits as positive debits, because each balancing segment value is summarized.
Journal Mode
In order to balance a journal, the journal type must be determined. A journal may be one-to-
one, one-to-many, many-to-one, and many-to-many. The type of journal is determined by
netting the debit and credit amounts for each balancing segment value and examining the
trading relationship.
Below are examples of each journal mode.
One to One
In a one-to-one journal, there is only one balancing segment value with a net debit, and only
one balancing segment value with a net credit.
This example uses a chart of accounts with three segments: balancing, natural account, and
intercompany. Assume you define the accounts shown in the table below for a specific legal
entity, source, category, and the balancing level is set to Summary Net.

Dr BSV Cr BSV Debit Account Credit Account

All Other All Other XX-4000-XX XX-2000-XX
02 01 02-4001-01 01-2002-02

You create the following journal, shown in the table below, which the Balancing API must
balance:
Line Account Dr Cr
1 01-5200-00 6600.00
2 02-5555-00 2300.00
3 01-1122-00 1000.00
4 02-1280-00 7900.00

The Balancing API sums the debits and credit for each balancing segment value to determine
the type of journal. In the example shown in the table below, the journal is one-to-one (01 to
02) and 01 is trading with 02.
BSV Net Dr Net Cr

01 5600.00
02 5600.00

The Balance By option is set to Summary Net, so the each balancing segment is netted and
balanced with one line. The Balancing API creates the balanced journal shown in the table
below:
Line Account Dr Cr Description

1 01-5200-00 6600.00 Original line
2 02-5555-00 2300.00 Original line
3 01-1122-00 1000.00 Original line
4 02-1280-00 7900.00 Original line
5 01-2002-02 5600.00 Net credit 02-01
6 02-4001-01 5600.00 Net debit 02-01
The result is now each balancing segment value balances.

One to Many
In a one-to-many journal, there is only one balancing segment value with a net debit and
many balancing segment values with a net credit. All credit balancing segment values are
assumed to be trading with the single debit balancing segment value (the driving segment),
and all credit balancing segment values balance with the single debit balancing segment
value.
entity, source, category, and the balancing level is set to Summary Net.

02 01 02-4001-01 01-2002-02
03 01 03-4003-01 01-2003-03

You create the following journal, shown in the table below, that the Balancing API must
balance:
Line Account Dr Cr
1 01-5200-00 5600.00
2 02-5000-00 1200.00
3 01-1111-00 1200.00
4 02-1280-00 2400.00
5 03-1450-00 3200.00

the type of journal. In the example shown in the table below, the journal is one-to-many with
01 on the debit side, 02 and 03 on the credit side, and 01 being the driving segment.
BSV Net Dr Net Cr

01 4400.00
02 1200.00
03 3200.00

The Balance By option is set to Summary Net, so each credit balancing segment is netted and
balanced with one line against the single debit balancing segment. The Balancing API creates
the balanced journal shown in the table below:

1 01-5200-00 5600.00 Original line
2 02-5000-00 1200.00 Original line
3 01-1111-00 1200.00 Original line
4 02-1280-00 2400.00 Original line
5 03-1450-00 3200.00 Original line
6 02-4001-01 1200.00 Net debit 02-01
7 01-2002-02 1200.00 Net credit 02-01
8 03-4003-01 3200.00 Net debit 03-01
9 01-2003-03 3200.00 Net credit 03-01
Many to One
In a many-to-one journal, there are many balancing segment values with a net debit and only
one balancing segment value with a net credit. All debit balancing segment values are
assumed to be trading with the single credit balancing segment value (the driving segment),
and all debit balancing segment values balance with the single credit balancing segment
values.
entity, source, category, and assume the balancing level is set to Detail.

01 03 01-4001-03 03-2001-01
02 03 02-4002-03 03-2002-02
03 All Other 03-4003-XX XX-2003-03

balance:
Line Account Dr Cr
1 01-5200-00 5600.00
2 02-5000-00 3200.00
3 01-1111-00 3200.00
4 02-1280-00 2400.00
5 03-1450-00 3200.00

the type of journal. In the example shown in the table below, the journal is one-to-many with
01 and 02 on the debit side, and 03 on the credit side, and 03 being the driving segment.

BSV Net Dr Net Cr

01 2400.00
02 800.00
03 3200.00

The Balance By option is set to Detail, so the Balancing API begins processing with the first
line and skips all the lines of the driving segment (03). The Balancing API creates the
balanced journal shown in the table below:

1 01-5200-00 5600.00 Original line
2 02-5000-00 3200.00 Original line
3 01-1111-00 3200.00 Original line
4 02-1280-00 2400.00 Original line
5 03-1450-00 3200.00 Original line
6 01-2003-03 3600.00 Net credit 03-01
7 03-4003-01 5600.00 Net debit 03-01
8 02-2003-03 3200.00 Net credit 03-02
9 03-4003-02 3200.00 Net debit 03-02
10 01-4001-03 3200.00 Net debit 01-03
11 03-2001-01 3200.00 Net credit 01-03
12 02-4002-03 2400.00 Net debit 02-03
13 03-2002-02 2400.00 Net credit 02-03
Many to Many
In a many-to-many journal, there are many balancing segment values with a net debit and
many balancing segment values with a net credit. With a many-to many journal, there is no
automated way to determine which balancing segment values should balance against each
other, so you must use a default rule or clearing company.
Note: If you need more detail and do not want to use

a default rule or clearing company, use Oracle
Intercompany for complex many-to-many transactions.
entity, source, and category. The many-to-many balancing option is set to Use Clearing
Balancing Segment Value and the balancing level is set to Summary Net. The clearing
balancing segment value is 99.


02 99 02-4099-99 99-2002-02
04 99 04-4099-99 99-2004-04
99 01 99-4001-01 01-2099-99
99 03 99-4003-03 03-2099-99
balance:
Line Account Dr Cr
1 01-5200-00 1800.00
2 02-5000-00 1200.00
3 03-1220-00 4700.00
4 04-1870-00 1000.00
5 01-1111-00 1200.00
6 02-1280-00 2400.00
7 03-1450-00 3200.00
8 04-1110-00 1900.00
the type of journal. In the example in the table below, the journal is many-to-many with 01
and 03 on the debit side, 02 and 04 on the credit side.
BSV Net Dr Net Cr

01 600.00
03 1500.00
02 1200.00
04 900.00
The Balance By option is set to Summary Net, so each balancing segment is netted and
balanced with one line against the clearing balancing segment value.


1 01-5200-00 1800.00 Original line
2 02-5000-00 1200.00 Original line
3 03-1220-00 4700.00 Original line
4 04-1870-00 1000.00 Original line
5 01-1111-00 1200.00 Original line
6 02-1280-00 2400.00 Original line
7 03-1450-00 3200.00 Original line
8 04-1110-00 1900.00 Original line
9 03-2099-99 1500.00 Net credit 99-03
10 99-4003-03 1500.00 Net debit 99-03
11 01-2099-99 600.00 Net credit 99-01
12 99-4001-01 600.00 Net debit 99-01
13 04-4099-99 900.00 Net debit 04-99
14 99-2004-04 900.00 Net credit 04-99
15 02-4099-99 1200.00 Net debit 02-99
16 99-2002-02 1200.00 Net credit 02-99
The result is now each balancing segment value balances, as does the clearing balancing
segment value.
Balancing API for Intercompany Journals
If each balancing segment value represents a different legal entity, intercompany accounts are
used to balance a journal with these balancing segment values. The intercompany payables
and intercompany receivables accounts are used, rather than intracompany balancing rules.
The Balancing API is used by general ledger and subledger accounting to build accounting
lines automatically. The Balancing API uses Intracompany Balancing Rules for balancing
segment values in the same legal entity, or those with no legal entity context. The Balancing
API uses intercompany payables and receivables accounts when each balancing segment
value represents a different legal entity.
If there are both intercompany and intracompany lines in the same transaction, the Balancing
API will first perform intercompany balancing across legal entities, and then intracompany
balancing across balancing segment values within each legal entity. Intercompany balancing
results in debits and credits balanced for each legal entity. Afterwards, intracompany
balancing results in debits and credits balanced for each balancing segment within each legal
entity. The Balancing API is called when posting journals in general ledger, or when
accounting for transactions in the subledgers
Intercompany Balancing
Intercompany journals are the journals that involve balancing segment values that map to
different legal entities. These journals are balanced for each legal entity by using their
intercompany accounts. The Balancing API uses the intercompany accounts defined for the
relevant effective date range. Since multiple accounts may be defined for the same date
range, Balancing API will pick the accounts flagged with the Use for Balancing indicator (see
Set Up Intercompany Accounting) . The offsetting debit for a legal entity goes into its
intercompany receivables account. The offsetting credit goes into the legal entity’s
intercompany payables account.
Intercompany accounts may be defined at the legal entity level. That is, each transacting legal
entity has different intercompany accounts defined for different trading partner legal entities
regardless of which specific balancing segment values of those legal entities are used in the
journals. The transacting and trading partner balancing segment values are then not explicitly
specified in the definition and are set to All.
Intercompany accounts may be defined at the balancing segment level of the legal entities. In
other words, a transacting legal entity can use different accounts for different transacting
balancing segment values depending on what the trading partner legal entity and trading
partner balancing segment value are. In that case, transacting or trading partner balancing
segment values may be explicitly specified in the intercompany account definitions.
There are several types of intercompany journals possible. The Balancing API will first
determine the type of the intercompany journal (one-to-one, one-to-many, many-to-one, or
many-to-many) with respect to the legal entities. For intercompany balancing there is no
Clearing Company usage and all legal entities are balanced by summary net with respect to
each other.
The following examples consider these types journals and how they are balanced. Since it is
easier to follow the process when the intercompany accounts are defined at the legal entity
level, those scenarios are considered first. The way the journals are balanced for
intercompany account definitions at the balancing segment value level is explained
afterwards. For the scenarios below assume that the ledger is assigned to a Shared accounting
configuration and has a chart of accounts with three segments: balancing, natural account,
and intercompany segments.
Intercompany Accounts at the Legal Entity Level
One Legal Entity to One Legal Entity
Suppose that legal entity LE1 maps to balancing segment values 10 and 11, while LE2 maps
to balancing segment values 20 and 21. Consider the following intercompany account setup:
Trading Trading
Transacting Transacting Intercompany
Partner Partner Account
LE BSV Account Type
LE BSV
LE1 All LE2 All 10-4020-00 Receivables
LE1 All LE2 All 10-2020-00 Payables
LE2 All LE1 All 20-4010-00 Receivables
LE2 All LE1 All 20-2010-00 Payables
Journal 1:
1 10-5200-00 1800.00
2 20-5000-00 1800.00

Since Journal 1 is between two balancing segment values (BSV’s) that belong to different
legal entities (LE’s) then intercompany accounts will be used to balance it. First the After the
balancing entries are added, the journal is shown below:
Journal 1 – Balanced by legal entity:
1 10-5200-00 1800.00 Original

2 20-5000-00 1800.00 Original
3 10-2020-00 1800.00 Balancing
4 20-4010-00 1800.00 Balancing
Next, consider the following journal that contains more balancing segment values:
Journal 2:
1 10-5200-00 1800.00
2 11-5200-00 600.00
3 10-5300-00 600.00
4 20-5000-00 1800.00

This is a one legal entity to one legal entity journal between legal entities LE1 and LE2. After
the summary net balancing entries are added, the journal is shown below:
Journal 2 – Balanced by legal entity:

1 10-5200-00 1800.00 Original
2 11-5200-00 600.00 Original
3 10-5300-00 600.00 Original
4 20-5000-00 1800.00 Original
5 10-2020-00 1800.00 Balancing
6 20-4010-00 1800.00 Balancing

Notice that Balancing API adds lines 5 and 6 to make the journal balanced for each legal
entity. In other words, the debits and credits net to zero for both LE1 and LE2. However,
notice that for LE1 we still need to perform intracompany balancing since the entries are not
balanced by balancing segment values (10 or 11). Intracompany balancing within LE1 will be
performed using the relevant intracompany balancing rules. Suppose that the relevant
intracompany balancing rule (summary net, no clearing company) is as follows:


Then intracompany balancing lines 7 and 8 are added to Journal 2. Journal 2 thus shows the
results of both intercompany and then intracompany balancing.
Journal 2 – balanced by legal entity and balancing segment value:
1 10-5200-00 1800.00 Original

2 11-5200-00 600.00 Original
3 10-5300-00 600.00 Original
4 20-5000-00 1800.00 Original
5 10-2020-00 1800.00 Balancing
6 20-4010-00 1800.00 Balancing
7 10-4000-11 600.00 Balancing
8 11-2000-10 600.00 Balancing

Many legal entity to One legal entity and One legal entity to Many legal entity types of
journals are balanced similar to the One-to-One type. That is, each legal entity on the “Many”
side is balanced against the legal entity on the “One” side.
Many Legal Entities to Many Legal Entities
For Many-to-Many intercompany journal type, it is not possible to determine which legal
entity is trading with which trading partner. The Balancing API uses the intercompany
accounts defined for the All Other legal entity trading partner.
BSV 10 maps to LE 1. BSV 20 maps to LE 2. BSV 30 maps to LE 3. BSV 40 maps to LE 4.
Consider the following intercompany account setup:
Trading Trading
Transacting Transacting Intercompany
Partner Partner Account
LE BSV Account Type
LE BSV
LE1 All All Other All 10-2001-00 Payables
LE2 All All Other All 20-4002-00 Receivables
LE3 All All Other All 30-4003-00 Receivables
LE4 All All Other All 40-2004-00 Payables

Consider the following journal.
Journal 3:
1 10-5200-00 1600.00
2 40-5111-00 1200.00
3 20-5000-00 1000.00
4 30-1400-00 1800.00

This journal is a Many-to-Many journal since multiple legal entities are present on both the
debit and the credit side. Since the Balancing API cannot determine the explicit trading
partners for each legal entity, the intercompany accounts set up for All Other trading partner
legal entity are used:
Journal 3 – balanced by legal entity:
1 10-5200-00 1600.00 Original

2 40-5111-00 1200.00 Original
3 20-5000-00 1000.00 Original
4 30-1400-00 1800.00 Original
5 10-2001-00 1600.00 Balancing
6 40-2004-00 1200.00 Balancing
7 20-4002-00 1000.00 Balancing
8 30-4003-00 1800.00 Balancing
Intercompany Accounts at the Balancing Segment Value Level

Previous examples demonstrated how intercompany accounts can be defined and used at the
legal entity level. Intercompany accounts can also be defined in the context of balancing
segment values, or at the balancing segment value level. So the account definition could
explicitly refer to the transacting balancing segment value and the trading partner balancing
segment value. This way, different accounts can be used for the same two trading legal
entities depending on which balancing segment values both entities are using. In general,
each combination of transacting legal entity, transacting balancing segment value, trading
partner legal entity, and trading partner balancing segment value may have its own
intercompany account definition.
The journal entries for each legal entity can be composed of several balancing segment values
belonging to this legal entity. The intercompany balancing procedure in case of intercompany
accounts defined for various combinations of transacting and trading partner balancing
segment values is very similar to the way the journals are balanced with account definitions
at the legal entity level. Just like in the case of account definitions at the legal entity level,
intracompany balancing may take place after intercompany balancing entries are added for
each legal entity.
Balancing API will proceed according to the steps outlined below for intercompany balancing
in the general case (when some accounts are defined at the balancing segment value level):
1. Group all debits and credits by legal entity. Determine the number of legal entities
involved in the journal. There are 4 possibilities:
2. One legal entity to One legal entity journal: the journal is between two legal entities. For a
journal between two legal entities, determine the balancing segment values involved on the
side of each legal entity. There are 4 possibilities:
a. One balancing segment value to One balancing segment value: for each legal entity
determine what intercompany accounts will be used to do intercompany balancing. We will
look for and use an intercompany receivables account to create an offsetting debit. We will
look for and use an intercompany payables account to create an offsetting credit. The Use for
Balancing flag in Intercompany Accounts UI tells us which account should be used in
balancing when multiple accounts are defined. The determination of the intercompany
accounts is performed according to the Hierarchy Table below starting with rule 1 (From LE,
From balancing segment value, To LE, To balancing segment value) and stopping when an
account is found.
b. One balancing segment value to Many balancing segment values: same as for One
balancing segment value to One balancing segment value case except the Hierarchy Table
rules checked are 2, 4, and 5.
c. Many balancing segment value to One balancing segment value: same as for One to One
balancing segment value case except the Hierarchy Table rules checked are 3, 4, and 5.
d. Many balancing segment value to Many balancing segment value: same as for One
balancing segment value to One balancing segment value case except the Hierarchy Table
rules checked are 4 and 5.

Rule Number Intercompany Accounts Defined for
1 Transacting LE, Transacting BSV, Trading Partner LE, Trading Partner BSV
2 Transacting LE, Transacting BSV, Trading Partner LE
3 Transacting LE, Trading Partner LE, Trading Partner BSV
4 Transacting LE, Trading Partner LE
5 Transacting LE, Trading Partner All Other Legal Entities
Table 1 Hierarchy Table
3. One legal entity to Many legal entity journal: the balancing procedure for this case is to
break down the journal into One LE to One LE journals and perform intercompany balancing
within each journal (each journal then is One to One and be balanced as shown in step 2).
4. Many legal entity to One legal entity journal: same as One legal entity to Many legal entity
journal.
5. Many legal entity to Many legal entity journal: this journal is balanced for each legal entity
by using the Transacting Legal Entity and Trading Partner All Other Legal Entities accounts.
Consider the following setup. The COA for this example has two segments: balancing, and
natural account. Assume that balancing segment values 10 and 50 map to legal entity LE1,
balancing segment values 20 and 60 map to legal entity LE2, and balancing segment values
30 and 70 map to legal entity LE3. The intercompany accounts are set up as follows:
Transacting Transacting Trading TradingPartner Intercompany

Account
LE BSV Partner LE BSV Account Type
LE1 All LE2 20 10-2022 Receivables
LE1 All LE2 20 10-4022 Payables
LE1 50 LE2 All 50-2025 Receivables
LE1 50 LE2 All 50-4025 Payables
LE1 All LE2 All 10-2020 Receivables
LE1 All LE2 All 10-4020 Payables
LE1 All LE3 30 10-2030 Receivables
LE1 All LE3 30 10-4030 Payables
LE3 30 LE1 50 30-9977 Receivables
LE3 30 LE1 50 30-9987 Payables
Now consider Journal 4:
1 10-5200 2800.00
2 50-5200 1000.00
3 20-5000 500.00
4 60-5000 300.00
5 30-1400 1000.00
With respect to legal entities, we can represent it as follows:
LE1 1800.00
LE2 800.00
LE3 1000.00
So this journal is a one legal entity to many legal entity journal. We will only show how
INTERCOMPANY balancing will be performed. Note that INTRACOMPANY balancing
within each LE will be performed after the entries are balanced for each LE.
This journal with respect to legal entities is composed of LE1 on the “One” side and LE2 and
LE3 on the “Many” side.
Consider LE1 to LE2 entries. Notice that on the side of LE1 we have two BSV’s: 10 and 50.
Also note that on the side of LE2 we have two BSV’s: 20 and 60. So our LE1 to LE2 journal
is a Many balancing segment value to Many balancing segment value journal. So the
offsetting entry for LE1 is a credit to the Payables account from the rule Transacting
LE=LE1, Trading Partner LE=LE2: 10-4020. The offsetting entry for the LE2 is a debit to the
Receivables account from the rule Transacting LE=LE2, Trading Partner LE=LE1: 20-2011.
Next consider the LE1 to LE3 entries. On the side of LE1 we still have two balancing
segment values (10 and 50). On the side of LE3 we have one balancing segment value (30).
For LE1 the offsetting entry is a credit to the Payables account from the rule
Transacting LE=LE1, Trading Partner LE=LE3, Trading Partner BSV=30: 10-4030. For LE3
the offsetting entry is a debit to the Receivables account from the rule Transacting LE=LE3,
Transacting BSV=30, Trading Partner LE=LE1: 30-2077.
Journal 4 – balanced by legal entity:

1 10-5200 2800.00 Original
2 50-5200 1000.00 Original
3 20-5000 500.00 Original
4 60-5000 300.00 Original
5 30-1400 1000.00 Original
6 20-2011 800.00 Balancing
7 10-4020 800.00 Balancing
8 30-2077 1000.00 Balancing
9 10-4030 1000.00 Balancing
Setting Up Balancing
To set up intercompany and intracompany balancing, you must set up legal entities, ledgers,
enable the Balance Intracompany Journals ledger option, and define intercompany accounts
and intracompany balancing rules. If the Balance Intracompany Journals option is not
enabled, no intracompany balancing rules can be defined.
Set up Legal Entities and Ledgers
To set up ledgers and legal entities:
1. Navigate to the Accounting Setup page.

2. Define your legal entity. For more information, see Legal Entities in Accounting Setup.
3. Define your ledger. For more information, see Ledgers in Accounting Setup.
a. Enable the Balance Intracompany Journals option.
4. Define your accounting configuration by assigning legal entities and ledgers.
5. Proceed to define Intracompany Balancing Rules and Intercompany Accounts.
Set up Intracompany Balancing Rules
To set up intracompany balancing rules:
1. Navigate to the Intracompany Balancing Rules page for the relevant configuration ledger
in Accounting Setup Manager.
2. In the Intracompany Balancing Rules Summary page, select the legal entity for which the
balancing rules will be defined. Note that you may also select a special value of No Legal
Entity if you want to associate the rule with the ledger. Click on Define Rules.
3. Observe various source-category combinations for which balancing rules have already
been defined. Click the Create Rule button to create balancing rules for a new source-
category combination.
4. In the Create Intracompany Balancing Rules page, select a source and category for which
you want to define the rules.
5. You may add descriptive flexfield information at the balancing rule level with
Intracompany Rule Descriptive Flexfield. You may also use the Intracompany Accounts
Descriptive Flexfield at the accounting rule level.
6. Enter a debit (due from) and credit (due to) balancing segment value for each debit and
credit intracompany account. You can choose All Other to have each balancing segment
value use the same due to and due from accounts for every intracompany trading relationship
that has not been explicitly defined.
7. In the Options subtab specify:
a. if you want Summary Net or Detail level of summarization;
b. if you want the Clearing Balancing Segment Value to be used for All Journals or only for
Many to
Many journals;
c. how to proceed if the clearing company is necessary yet unspecified:
i. use the Default Clearing Balancing Segment Value (you have to specify that value in the
field below
the dropdown list)
ii. use the Manually Entered Balancing Segment Value. This option should not be used for
journals
coming from subledgers since there is no way to specify a clearing company for them.
iii. use the Default Rule. The Default Rule is the All Other-All Other rule. It can only be used
if the
Clearing Balancing Segment Value is used for Many to Many journals.
8. Click Apply to save your changes.
Set up Intercompany Accounting
To set up intercompany accounting:
1. Navigate to the Intercompany Accounts page for the relevant configuration ledger in
Accounting Setup Manager.
2. Click on the Define Relationships icon for the relevant legal entity.
3. In the Intercompany Accounts table, select the Transacting Balancing Segment Value for
the intercompany accounts. Select the Trading Partner Legal Entity and the Trading Partner
Balancing Segment Value. For both the Transacting Balancing Segment Value and Trading
Partner Balancing Segment Value you can select the special value All to define accounts at
the legal entity level. Note that if you have mapped your balancing segment values to legal
entities, only the relevant balancing segment values will be available for selection. For
example, only balancing segment values that are mapped to the transacting legal entity can be
selected as the Transacting Balancing Segment Values.
4. The Trading Partner Ledger will be selected automatically and cannot be changed. If the
accounts are defined for the primary transacting ledger, then the primary ledger of the trading
partner legal entity will be selected. If the accounts are defined for the secondary transacting
ledger, then only the same secondary ledger can be used as the trading partner ledger.
5. Click on the Define Accounts icon for the relevant trading partner.
6. In the Define Accounts page, specify intercompany receivables and payables accounts you
want to use with the trading partner. Specify the effective date ranges for your accounts.
7. You may also enter descriptive flexfield information using the Intercompany Receivables
Accounts and Intercompany Payables Accounts descriptive flexfields.
Note: If the intercompany accounts are being defined between two legal entities that share
the same
ledger, a Use For Balancing radio button allows you to specify which of these accounts is to
be used
for balancing intercompany journals in General Ledger and Subledger Accounting
Architecture.
Attention: You may choose “All Other” in the Trading Partner Legal Entity allows you to
define the
same accounts for all trading partners. This approach is not recommended since it will be
challenging
to reconcile intercompany balances.
8. Click Apply and save your work.
Posted in General Ledger, Oracle E-Business Applications, Oracle Financial | Leave a

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R12: What are Ledger Sets, when they are used and how
to define them?
What are Ledger sets?

Ledgers sets allow you to group multiple ledgers together to achieve processing efficiencies.
For example, you can open or close periods for multiple ledgers simultaneously, translate
balances for all ledgers in a ledger set, run recurring journals that update balances for
multiple ledgers, or run consolidated financial reports that summarize balances across
multiple ledgers in a ledger set.
All ledgers in a ledger set must share the same chart of accounts and accounting
calendar/period type combination. They do not have to share the same currency. This allows
you to group the primary or secondary ledgers with their associated reporting currencies to
reduce maintenance efforts and streamline processing.
Note: Both the source ledger and its reporting currency (Journal and Subledger level) must
have the same open periods to prevent problems during posting in General Ledger.
When Ledger Sets are used?

Some of the General Ledger features that benefit from the use of ledger sets are as follows:
• Translation and Revaluation: Translate balances and run revaluation across multiple ledgers
in a ledger set.
• Open and Close Periods: Open and close periods for multiple ledgers within a ledger set
from a single operation.
• Reporting: Submit standard reports and Financial Statement Generator (FSG) reports across
multiple ledgers in a ledger set.
The added benefit of using ledger sets in FSG reports is to aggregate data and create
summarized balances across multiple ledgers in a ledger set.
• Inquiry: Perform online inquiry on account balances or journals across multiple ledgers in a
ledger set from a single view; drill down to the journal details and subledger transaction for
each ledger.
How to define Ledger Sets?

To define a ledger set:
1. Navigate to the Ledger Set window.
2. Enter a name for the Ledger Set, a Short Name for the ledger set,(Optional) Enter a
Description for the ledger set.
3. Choose a Chart of Accounts.
4. Choose a Calendar and Period Type.
5. (Optional) Specify a default ledger. The default ledger automatically defaults in all
windows where the Ledger field is required.
Note: A Default Ledger is required for Financial Statement Generator (FSG).
6. (Optional) Select the Enable Security checkbox to secure the Ledger Set definition. If you
do not enable security, all users who have access to this definition will be able to use, view,
and modify the ledger set definition.
If the Assign Access function is available for your responsibility, the Assign Access button
will be enabled once you select the Enable Security checkbox. Choose the Assign Access
button to assign the definition to one or more Definition Access Sets with the desired
privileges. For more information, see Definition Access Sets, page 1-136.
If the Assign Access function has been excluded from your responsibility, you will be unable
to view the Assign Access button in the Ledger Sets window. You can still secure the Ledger
Set definition by selecting the Enable Security checkbox, but only Definition Access Sets that
are AutoAssigned will be automatically assigned to this Ledger Set. See your System
Administrator for more information on Function Security.
7. In the Ledger/Ledger Set column, choose the ledgers and/or ledger sets to be included in
the ledger set. Only those ledgers and ledger sets that share the same chart of accounts,
calendar, and period type specified for the ledger set definition will be available.
If you use reporting currencies (journal or subledger level), you can choose reporting
currencies to be included in the ledger set. Only those reporting currencies that share the
same chart of accounts, calendar, and period type specified for the ledger set definition will
be available
8. Save your work. The General Ledger Accounting Setup Program will be submitted.
Ensure this program completes successfully. Once saved, a ledger set cannot be deleted. You
can only add or remove ledgers and ledger sets from ledger sets.
Note: You must have at least one ledger or ledger set assigned to a ledger

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Helpful Tips for a Successful R12 Oracle

Payables Implementation
Helpful Tips for a Successful R12 Oracle Payables Implementation

Please read the entire list before starting your R12 implementation or upgrade.
1. Create a realistic schedule for your R12 implementation or upgrade.

2. Conduct your implementation or upgrade on a parallel system.
3. Allow yourself sufficient time to implement and perform user acceptance testing
(UAT). This will give you time to assure that your system has been designed and
setup to meet your business needs.
4. Assure that as much data as possible is accounted and ALL accounting is transferred.
5. Clear up any data issues in 11i before upgrading (i.e., Run the Accounting Health
Check),
6. Use the Maintenance Wizard for the upgrade.
7. If possible, implement the most current version of R12 (i.e., R12.0.4 — see
Metalink Note: 465776.1 / Patch 6435000. In addition, apply the Oracle Financials
and Oracle HRMS Release Update Packs 12.0.5 (RUP5) — see Metalink Note:
565898.1 / Patch 6836355
8. Review the Oracle Financials Critical Patches Alert, see Note:557869.1. The alert
includes the links to the R12 Known Issues documents, which list the critical patches
for Oracle Payables, Subledger Accounting, E-Business Tax, and other Financials
applications. Apply the critical patches to prevent encountering issues that have
already been addressed.
9. Apply the pre-upgrade patches BEFORE upgrading to R12.
10. Apply the post-upgrade patches ASAP after completing the upgrade.
11. Perform several month-end closes before considering a Go-Live date.
Posted in Accounts Payables, Oracle E-Business Applications, Oracle Financial | Leave a

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Cash Management Overview
Cash Management Overview
————————–
Cash Management is designed to manage and control cash cycle.
This allows you to enter bank statements and reconcile the statement transactions against
payments in Accounts Payable (AP), receipts in Accounts Receivable (AR), and journal
entries in General Ledger. Cash Management (CE) can also reconcile payments and receipts
from external/legacy systems. CE can also create and reconcile misc. transactions to record
bank transaction entries not entered in AP or AR.
Integration with AR and AP
—————————
You use CE to reverse, clear, reconcile receipts,and create misc transactions for bank
transactions not entered in AP or AR.
All these functions are shared and integrated with AR.
You can only use all the CE functions when AP and AR are fully installed.
You must have AR fully installed if you want to record MISC payments.
If you use CE with AP and AR, you must define the system parameters, such as banks, cash
clearing, bank charges, and bank errors in AP.
Then define system parameters, such as remittance and cash accounts for each bank, and
create misc transactions in AR. When this is done all the functionality in CE can be utilised.
Miscellaneous transactions are misc receipts and misc payments.
Misc payments are handled as negative misc receipts in AR, rather than as payments in AP.
The Allow Reconciliation Accounting option must be enabled if you want to use a cash
clearing account and create accounting entries for bank charges, errors, gain/losses. If not
enabled, you can still reconcile payments in CE, but accounting entries will not be created in
GL.
Cash Management System Parameters
———————————-
Select Set of Books and enter a date for the begin date.
Then check the following if required:
· Check Add Lines to Automatic Statements checkbox if you want to add lines to
automatically loaded bank statements.
· Check Show Cleared Transactions checkbox if you want CE to display the cleared
transactions that are available for reconciliation.
· Check Use Reconciliation Open Interface checkbox if you plan to use the
open.
interface to reconcile bank statement lines to transactions in external systems.
The following steps show you how to set up CE system parameters using the system
parameters setup function. This is an example of a typical setup and options available:
· Select Setup. Then the System Parameters option.
· In the Set of Books field, specify the Set of Books name for CE transactions.
· In the Begin Date field, specify the date of the first bank statement entered.
· Check Show Cleared Transactions checkbox to display cleared transactions
available for reconciliation. Optional.
· Check Add Lines to Automatic Statements checkbox to add lines to automatically loaded
bank statements. Optional.
· Check Use Reconciliation Open Interface checkbox to reconcile transactions in external

systems. Optional .
· In the General region*, specify a tax code that applies to misc payments in the Liability
field.
· Specify a tax code that applies to misc receipts in the Asset field.
· The Receivable Activity field is the default for the Misc Receipts window and the default
receivable activity to which Auto-Reconciliation charges differences between the amount
cleared and the original amount for remittance batches.
· In the Float Handling field, select Ignore if you want to reconcile statement lines with the
effective dates later than the current date.
· Access the Automatic Reconciliation* region from the drop down list.
The Automatic Reconciliation region screen appears. You can accept the defaults if you wish.
· Then commit..
* The General parameters options are also used in the manual reconciliation windows and
can be overridden.
* The Automatic reconciliation region has no effect when doing manual reconciliation.
Defining Bank Transaction Codes
——————————–
Auto-Reconciliation being used to load electronic bank statements.
CE requires transaction codes to be defined that are used by the bank.
This allows CE to identify the different transaction types on the statement, such as receipts,
and payments. i.e:
· Misc Receipt
· Misc Payment
· NSF
· Payment
· Receipt
· Rejected
· Stopped
If you use a transaction code for both misc transactions and correcting statement errors, you
can specify the sequence of matching.
Choose from the LOV to indicate how to use the bank transaction code.
· Misc
· Stmt
· Misc, Stmt
· Stmt, Misc
The following shows you how to define bank account transaction codes :
· Select Setup. Then: Bank Transaction Codes.
· Select the bank you require. Click the OK button.
· The Bank Transaction Codes window appears. In Type field select a transaction type for the
transaction code you are defining.
· In Code Field, specify the code used by the bank. I.e. 100.
· In the Description field, specify a description for the transaction code you are defining. i.e.
payment.
· Enter start and end dates.
· In the Float Days field, enter the number of days that CE will add to the statement date to
create an effective date for the transactions.
· Optional, select a transaction source for payments and receipts transactions.
· Use the Matching Against field to determine the order of matching and the type of
transactions to match if the transaction Type is Misc Receipt or Misc Payment.
· In the Correction Method field, select the correction method your bank uses when
correcting errors.
· Select the Create checkbox if you want to create misc transactions for any payments or
receipts reported on the bank statement when no transaction code is provided. If you select
the Create checkbox, specify the activity type and the payment method you want to assign to
misc transactions.
· Commit.
Defining Automatic Reconciliation Parameters
——————————————–
The automatic reconciliation parameters controls several aspects of Auto-Reconciliation,

this allows reconciliation of bank statements automatically. These options have no effect on
manual reconciliations.
The tolerances region includes a variance amount and a variance percent,they are used by
Auto-Reconciliation to match bank statement lines from AR and AP. If a transaction amount
falls within ranges defined in the tolerance region, plus or minus the reconciliation
tolerance, a match is made.
The Tolerance Differences – AP field controls whether the Auto-Reconciliation posts

differences to bank charges or errors account.
The Tolerance Differences – Foreign field controls how Auto-Reconciliation handles bank
errors or differences that are caused by exchange rates from foreign currency transactions in
a multi-currency bank account.
There are 3 ways to treat the tolerances:
Gain/Loss: which takes the difference as exchange rate gain or loss;
Charges/Errors: which handles differences as bank charges or a bank errors, and No Action:
in this case no reconciliation will occur and the statement line will have a status of error.
Automatic document sequence numbers. CE creates the document number for the statement
automatically. You can’t change an automatically assigned document number.
Loading Bank Statement Info
—————————
To load bank statement information, including header information and line information, into
CE select the Bank Statement Interface window and the Bank Statement Lines Interface
window to load the information.
The table used is called :- CE_STATEMENT_HEADERS_INT_ALL
Validating payment information. The information loaded, including the bank statement
header validation, control total validation, statement line validation, and multi-currency
validation, go into the bank statement open interface tables.
If the data does not pass the validations and cannot be imported into the main tables the
totals can modified, and then reconciled successfully.
The data can be imported and automatically reconciled at the same time.
It is just a case of navigating to the SRS window and submit a request for the Bank
Statements Import and Auto-Reconciliation program.
The system generates the result and prints an Auto-Reconciliation Execution Report.
The following steps show you how to import a bank statement without Auto-Reconciliation in
CE.
· Click the Bank Statement Import* option to request the report in SRS.
Click the OK button.
· The Parameters window appears. Specify the bank account number for the statement you
want to import in the Bank Account Number field. Specify the range of statement numbers in
the Statement Number From and To fields.
Enter dates for the Statement Date From and Statement Date To fields.
In the GL Date field, enter the GL date. Click the OK button.
* If Auto Reconciliation is required then select the Bank Statements Import and Auto-
Reconciliation program
Interface errors occur for various reasons.
There are 3 common causes of bank statement interface errors:
Erroneous information in setup of CE, errors in bank transmission file, and more commonly
problems with the SQL* Loader file.
Reviewing Bank Statement Errors
——————————–
The following steps show you how to review bank statement interface errors.
· Select Bank Reconciliation. Click the Bank Statement Interface option.
· Query the bank statement with the interface errors you want to review.
The applicable fields populate according to the account number you have specified. Click the
Lines button to see the statement line detail.
· The Bank Statement Interface Lines window appears. Select the line with the error(s)
review. Click the Errors button.
· The Bank Statement Interface Line Errors window appears, displaying the error message
for the line selected. When finished reviewing the error messages, click the Done button.
Modifying the Statement Interface Table
—————————————-
The following explains how to modify the bank statement interface tables.
· Select Bank Statement. Click Bank Statement Interface. Query the bank statement that
requires modification. Edit the bank statement and header transaction information as
necessary, including the control balances, in the Opening field.
· Edit the receipts in the Receipts field. Edit the payments in the Payments field. Edit the
closing number in the Closing field. Click the Lines button.
· Bank Statement Interface Lines window appears. Edit the bank statement transaction
information. CE allows the editing of the line number, transaction code, transaction number,
and date.
· In the Amounts region, CE allows the editing of the transaction amount, bank charges, and
original amount.
· In the Exchange region, CE allows the editing of the exchange rate information, including
currency code, exchange rate type, date, and exchange rate.
· In the Reference region, CE allows the editing of the agent (customer or supplier), invoice
number, and the agent bank account associated with each line.
· In the Description region, CE allows the editing of the effective date and description for
each line.
· Commit.
Auto-Reconciliation and Manual Reconciliation
———————————————-
The Auto Reconciliation program fully matches AP AR GL and MISC transactions against
bank statement lines if the transactions meet the following criteria:
· AR Remittance batches such as direct debit batches, the remittance batch deposit number or
receipt batch name matches statement line transaction number, and the amount is within the
tolerance.
· MISC Reversal corrections, the statement line has the same transaction number, same
amount, and opposite transaction type (for example, misc receipt and misc payment)
· MISC Adjustment corrections, the statement line has the same transaction number, and has
a transaction type of payment, receipt, misc payment, or misc receipt, and the net amount is
within tolerance.
· AR Detail remittance transactions, NSF, and rejected transactions, the matching sequence
is the same; match is against the invoice number and customer bank account, and then just
the invoice number, and finally the
receipt number; the amount is within the tolerance.
· AR NSF or rejected transactions, the receipt must first be reversed in AR
· MISC Receipt number matches the statement line transaction number
· AR GL AP MISC Transaction currency is the same as the bank statement line currency
· AP Payment batches, such as EFT batches, the reference or payment batch name matches
the statement line transaction number, and the amount is within tolerance.
· AP Detail payment transactions and stopped transactions, the matching sequence is the
same; the program tries to match against the invoice number and supplier bank account,
then just the invoice number, and finally the payment number; the amount is within the
tolerance
· AP For stopped transactions, the payment must first be stopped or voided.
· GL Journal line is posted
· GL Journal line accounting flexfield matches the bank account Asset Accounting flexfield
· GL Journal line description matches the statement line transaction number
*Bank statements can be entered Manually see the CE manuals.
*Bank statements can also be updated even if they are reconciled by
using the review button The Auto-Reconciliation program does four validations, bank
statement header validation, control total validation, statement line validation, and multi-
currency validation. The program requires the imported bank statement header information
has the bank account defined as an internal bank account. If a currency code is in the
header, it must be the same as the currency code defined for the bank account in AP or AR.
There is an Auto-Reconciliation execution report.
It is printed automatically when the Auto-Reconciliation program is ran, and can be

reviewed for all import validation errors for a statement or a specific statement line.
*After reconciling a payment, CE will generate journal entries as debit cash clearing
accounts and credit cash accounts.
Bank statement lines must include an exchange rate when the transaction currency is foreign.
Depending on the bank account currency, the Auto Reconciliation program handles
statement line matching to transactions differently. If the bank account currency is foreign,
the bank statement line amount must match the transaction line amount within the tolerance
limit for automatic validation to be successful. If the difference exceeds the tolerance
amount, CE displays an error message and manual reconciliation must take place.
The tolerance validation is done in two stages, firstly it converts the tolerance into the bank
account currency using the bank statement exchange rate, and it verifies the difference
between the statement line amount and the transaction amount is within the tolerance.
The second stage uses the original tolerance amount to compare the bank statement line
amount with the transaction amount (functional currency), verifying again that the difference
is within the tolerance.
The Auto Reconciliation program references the tolerances that have been defined for
example.
The tolerances defined are: amount = GBP £70 and percent = 10%.
Run the Auto Reconciliation program, and it encounters a statement line with an amount of
GBP £1,000. The program firstly calculates the tolerance percentage amount (10% of GBP
£1,000 = GBP £100). The program selects the smallest of the amounts and the defined
tolerance amount which is GBP £70.
The program then matches the statement line against a payment or receipt transaction in the
range GBP £930 to GBP £1,070, which is GBP £1,000 plus or minus GBP £70.
Regardless of bank account and transaction currency, the tolerance amount in the system
parameters is always in the functional currency.
NOTE : Reconciled transactions can also be unreconciled as can statement lines.
Control Total Validation
————————–
Some banks supply statements that have control totals in the statement or account header for
error checking . The bank statement header interface table has 7 control total columns. If
you enter values in any of these, the Auto-Reconciliation uses the values for validation,
except for CONTROL_BEGIN_BALANCE, which is the statement opening balance.
Other control total validations are:
· CONTROL_END_BALANCE the statement closing balance.
· CONTROL_TOTAL_DR the payment control total in the statement header this must match
the total payment amount on the statement lines.
· CONTROL_TOTAL_CR the receipt control total in the statement header must match the
total receipt amount on the statement lines.
· CONTROL_DR_LINE_COUNT the number of payment lines in the statement must match

the payment line control total in the statement header.
· CONTROL_CR_LINE_COUNT the number of receipt lines in the statement must match the
receipt line control total in the statement header
· CONTROL_LINE_COUNT the number of lines in the statement must match the line control
total in the statement header
Statement Line Validation
————————-
Auto-Reconciliation needs the imported bank statement line to pass these checks.
The currency code on the statement line must be defined in the system.
The bank transactions code must be defined.
The exchange rate type must be of a valid type defined.
The amount must be entered for the statement.
Multi-Currency Validation
————————-
Auto-Reconciliation checks each statement line for valid currency, and exchange rate type.
When a matching transaction is found during reconciliation several checks are made.
For transactions, the bank statement line currency must be the same as the transaction
currency (the bank statement currency can differ).
For batches, all transactions in the batch must use the same currency and statement line
currency as the batch currency.
For both transactions and batches, if User exchange rates, each transaction must include the
exchange rate, and the rate type must be User.
If it is for predefined rates, such as Corporate or Spot, each transaction must include the rate
type and exchange rate date.
Incorrect CE setup information can include wrong transaction codes, currency, or bank
account information. The solution is update CE setup information and then run the Auto-
Reconciliation Import program again.
For bank transmission errors, the solution is to obtain a correct transmission file from the
bank or alternatively update the statement using the Bank Statement Interface window. For
SQL Loader file problems, modify Loader file and then rerun the Auto-Reconciliation Import
program.
In CE you can also create AR transactions and AP transactions and you can also reverse
these transactions.
When NSF or rejected receipts appear you can handle them manually by reversing the
receipt manually and then reconciling the reversed receipt.
When a stopped or voided payment is done then void the payment in AP to mark the supplier
invoice as unpaid then reconcile the stopped/voided payment statement line to the voided
payment
Automatic Clearing
——————-
You can use CE or Automatic Clearing to clear receipts, as well as payments using the
future-dated payment method. If you use Automatic Clearing within AR, you can choose to
clear remitted receipts after they have matured.
If you use Automatic Clearing to clear payments and receipts rather than using CE, the GL
balance may not match CE reports.
In AP, a future dated payment instructs the bank to disburse funds to the supplier’s bank on
specific dates. If you use the AP Automatic Clearing for Future Payments utility to clear
future-dated payments
made with the future-dated payment method, AP performs the accounting for cash clearing.
You can match payments cleared in this manner with bank statement lines.
CE and Multi-Org
—————-
For each operating unit you must set up a CE responsibility very similar to what is setup in
AP.
Each responsibility is tied to a SOB and an operating unit.
FAQ
—–
Q. How do we treat a BAC’s payment that has been reconciled and then voided
AP three payments: £10,£20, £30

Bank statement1 £60
It has been reconciled in full.
Now need to void an amount of £10 therefore unreconcile £60 and reconcile £50 leaving
£10 as unreconciled/available. Void payment of 10 ok.
Bank statement states the -£10 amount for the voided payment they have this as stopped and
reconcile the voided amount in AP to the -£10.
Problem is cannot have the original unreconciled as stopped as it is part of the £60 how can
this be reconciled ? There are lines on two statements so cannot contra each other?
A. The correct way this should have been dealt with in this situation is:
The voided element of -£10 on the bank statement should in fact be treated as an misc
receipt. Then create a no tax invoice for £10 in AR and match this to the receipt of £10. The
distribution can go to e.g. pay on a/c or suspense. Then in AP create an invoice for £10 use
the same distribution as used for the AR invoice so they nett off to each other. Pay the invoice
in AP as you would normally.
In this case as they voided the payment create a dummy statement.
It can then be reconciled using the stopped functionality.
Q Why are there no entries going to GL?
A Check they are using reconcilition accounting . Accounting entries below With
Reconcilitaion Accounting enabled:-
One set of entries for the unreconciled transaction
DR liability
CR cash clearing
One set of entries for the reconciled transactions
DR cash clearing
CR cash
If Allow Reconciliation is not enabled, only one entry is created:
DR Accounts Payable
CR cash
Q Unable to select available Journal Entries to reconcile a bank Statement.

A You must define a bank account with default GL account codes.
One of which must be your cash account.
CE will only look for journals with the GL account code that matches
the cash account of the b
Posted in Cash Management, Oracle E-Business Applications, Oracle Financial | Leave a

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Segment Security Rules FAQ

Questions and Answers

1. I have defined a security rule and assigned it to my responsibilty, but is still
does not work, why?
Make sure that you have enabled security at both the segemnt and value set levels, it must be
enabled at both these levels to work. Also make sure you have switched out and back into the
responsibility.
2. My security rules don’t work for the Account Analysis and General Ledger
reports in Release 11.0.3.
This functionality is available starting in Release 11i. In Releases 11 and lower, one cannot
set security for standard reports. Security Rules will only limit users from a few functions
(e.g. Account Inquiry, Budgets, Journal Entries, and FSGs). In addition,in Release 11i there is
limited
use of the security rule functionality for running standard reports.
It appears that your goal is to restrict users from submitting reports for a particular company,
this cannot be accomplished using security rules.
3. In Rel 11i with the intercompany segment being used, is it possible to have a
security rule on the balancing segment (company) without it affecting the
intercompany segment, since they share the same value set?
Yes it is possible. You would enable security on the value set, but then on the flexfield
segment (intercompany) you would not enable security.
4. Is there a way to assign different security rules to a responsibility based on

the User ID?
You cannot apply different security rules to the same responsibility for different users based
on the user ID. You will have to create a new responsibility and define its own security rules.
Then you can assign the new responsibility to one of the users.
5. Can security rules be used to control the posting of journal entries?
Security rules apply only with regards to creation/modification of lines within a journal. They
do not apply when the journal is posted.
6. Security rules don’t seem to work on all forms when performing a query.
Flexfield Value Security gives you the capability to restrict the set of values a user can use
during data entry. With easy-to-define security rules and responsibility level control, you can
quickly set up data entry security on your flexfield segments and report parameters.
Flexfield Value Security lets you determine who can use flexfield segment values and report
parameter values. Based on your responsibility and access rules that you define, Flexfield
Value Security limits what values you can enter in flexfield pop-up windows and report
parameters.
Security rules for the Accounting Flexfield also restrict query access to segment values in the
Account Inquiry, Funds Available, and Summary Account Inquiry windows. In these
windows, you cannot query up any combination that contains a secure value. However in all
other forms,
you will be able to query up a value even if it is restricted to the user.
Reference : Oracle Applications Flexfield Guide Release 11, page 5-10.
7. Can Security Rules prevent users in one organization in the same set of
books from adding Cross Validation Rules to another organization?
There is no way in the same set of books, to prevent users from one operating unit via
security rules, from changing cross validation rules for another operating unit. The only way
to do this would to be create a separate set of books for each operating unit. Since security
rules prevent users from either viewing data or entering data in general, they do not pertain to
set up issues such as creating cross validation rules.
Therefore, the only other way to prevent one user from one organization from creating cross-
validation rules to the other organization, when in the same set of books, would be to
completely remove that menu function from the user.
8. Every Country has a Global Manager or User Responsibility to access

Global SOB but it is supposed to limit users to their own Legal Entities.
However, an Argentian journal can be posted by the Chilian user. How is this
possible?
This is working as intended. Security rules will prohibit a responsibility from being able to
ente certain values as well as prohibit the viewing of those values. However security rules
will not prohibit the actions above because they are in the same set of books. The system does
not determine if a journal has values in it that are blocked by security rules. If it did that, the
journal would appear as unbalanced.
There would have to be an incredible amount of logic involved, which would further reduce
performance, for the posting program to scan the journal for security rules first before
posting. Posting does not take into consideration the rules, this is done at the time of journal
entry.
9. Forgot to check the security enabled flag for each segment and it is not
updateable. How do I correct this?
Check your Accounting Flexfield structure to see if it is frozen. Unfreeze the structure, then
you should be able to enable Security for the Segment.
10. In General Ledger, a security rule of a parent with children was set up to
include the parent and assigned to a responsibility. However it is not
functioning properly.
The system allows the account the customer wanted but doesn’t disallow the ones that are
children of the parent values excluded. Review note:175555.1 Key Flexfield Rollup
Hierarchical Security not Working Properly.
11. Is it feasible to delete an Exclude statement in order to resolve a Security

Rule issue?
The Security rule should not be modified by deleting an exclude or include as it may corrupt
the rule. Instead, delete all rule lines (include and excludes), save and redefine the include
and excludes. If the rule still doesn’t work, create a new rule and assign it to the
responsibilities in place of the original rule.
12. What standard reports have security enabled in Release 11i?
Trial Balance, Account Analysis and General Ledger are the only standard reports in Release
11i for which security rules apply.
13. Is it recommended to use a universal Include when setting up rules?
It is recommended to start each security rule with a universal Include statement and then
eliminate each value using Exclude statements.
14. What functions do security rules apply to?
Security rules apply to Account Inquiry, budgets, FSG’s and journal entry functions. In
Release 11i, this also applies to several standard reports (listed previously). Please note, they
do not apply to the posting of journals or the review of journals. When reviewing a journal
with
security rules, the totals are still displayed, it is only the individual lines that are not visible.
This is standard functionality.
15. What is Hierarchical Security?

When using ‘Heirarchical Security’. ‘a flex value is secured if one of it’s parent value is
secured’.
This feature combines Flex Value Security and Flex Value Hierarchy.

Comment »
FSG Functional FAQ

1. How do I find the latest FSG patch that is available?
For the General Ledger Patch List, on MetaLink, click on Knowledge…From The
Knowledge Browser tab, quick find Note:159239.1.
2. Is there a way to suppress zero amounts on the FSG Report?
You cannot suppress individual zero amounts in FSG. However, when all the values in a row
or column are zero, you can have FSG suppress them all. To do this, make sure the Display
Zero option is unchecked on the appropriate Rows or Columns window.
3. How do you print credit amounts on the FSG Report as positive instead of
negative numbers?
For a related row or column definition, check the Change Sign checkbox. Credit amounts for
this row or column will now print as positive numbers. Negative credits will print as negative
numbers. Note that this changes the sign for display purposes only.
4. Can I display account descriptions on the FSG Report in addition to the

account segment values?
Yes. You simply have to define a Row Order, then, assign it to your report. In your Row
Order, set the Account Display options of the account segments for which you want to print
descriptions. Select Value and Description as your segment display method. Also, make sure
that you set the printing width, so there is enough room to print both the segment value and
the description.
5. Is there a limit on how large a FSG Report can be?
Yes. The column set width of an FSG report cannot exceed 255 characters. In release 11i, the
column set width can exceed 255 characters. (However, while printing, there is still a limit of
255 characters.)
6. What is the profile option ‘FSG: Expand parent value’ used for?
This profile option controls the expansion of parent values when requesting summary
balances. The following values are available to you:
Yes: FSG uses the rollup group to determine whether to expand a parent value into its child
ranges. If the parent value belongs to a rollup group, FSG does not expand the parent value
into its child ranges. If the parent value does not belong to a rollup group, FSG expands the
parent value into its child ranges.
No: FSG uses the summary flag associated with the flexfield assignment to determine
whether to expand a parent value into its child ranges. If the summary flag is set to Yes, FSG
does not expand the parent value into its child ranges. If the summary flag is set to No, FSG
expands the parent value into its child ranges.
The default value for this profile option is No.
Note:1012620.102 provides more information regarding this profile option.
7. I am trying to display budget amounts in my reports but they are not

showing up or are incorrect. What is wrong?
Since Oracle GL allows you to define multiple budgets, you must indicate what budget you
want displayed in the row or column. You do this by first assigning a Control Value in the
Balance Control section of the Row or Column window. The control value is any numeric
value. Next, you must tell FSG what budget relates to the Control Value. You do this in the
Define Report form. When you define a control value for either your Row
Set or Column Set in your report, the Control Value button will be activated. By selecting the
Control Value button you can assign budgets to your control values.
Another reason you may not be seeing your amounts is if you are using the YTD-Budget (FY
End) amount type, but have not budgeted to every period in the fiscal year.
See Note:1036437.6.
Also, make sure you have defined your Amount Types, Offsets and Control Values in the
Column Set or Row Set, but not both. Typically these are specified in the Column Set.
8. How do you enable Flexfield Security Rules for FSG?
First, you define security rules for specific account segment values. Then, you assign your
security rules to specific responsibilities. Lastly, you set the profile option ‘FSG: Enforce
Segment Value Security’ to YES.
Flexfield value security has been enhanced in Release 11.5, with hierarchical security.
Instead of having to create security rules for a range of segment values, you can assign
security rules at the parent level and have the rules automatically apply to all of the child
values within the parent hierarchy. To use this, choose the Security Type of Hierarchical for
the value set, on the Value Sets form. See Note:138143.1 for more information.
9. How can you add/define/create your own new amount types in FSG
reporting?
Oracle comes with seeded amount types, which can be specified in the Balance control region
of a FSG row or column definition. You cannot create your own.
10. Where should the period offset and the amount type be specified?
The period offset and amount type must both be specified in the row set or both be specified
in the column set. You cannot have a period offset in the row set and an amount type in the
column set, or vice versa.
11. On a calculation column, can I enter an amount type?
You should not define rows or columns that contain both calculation information and an
amount type. If you do, the amount type will override and this may cause errors.
12. Is there a quick and supported method of transferring FSGs between

environments, so that users do not have to key them in twice?
Run the FSG Transfer program (under Report/Request/Standard) to copy report objects from
one General Ledger database (or instance) to another. You can copy row sets, column sets,
reports, report sets, content sets, row orders, display sets, and display groups.
Prerequisites
- You or your System Administrator must define database links.
- The chart of accounts in the set of books in your source database must be identical to the
chart of accounts in the set of books in your target database.
- Any currencies and sets of books referred to by the row sets and column sets being copied
must exist in the target database.
- Report details, such as budgets and encumbrance types, referred to by copied reports must
exist in the target database.
- You must be logged into General Ledger and connected to the target database.
- The target and source apps releases must be the same. See Note <<1083689.6>> for more
information.
If any of the prerequisites are nt met, you will not be able to use FSG Transfer to copy the
report objects. You will have to enter them manually in the target set of books.
13. What FSG enhancements are introduced in Release 11i ?
Unlimited Width Reports.

Oracle General Ledger now allows you to create FSG reports with an unlimited number of
columns. FSG will pick the widest of the column set header or the total width of all the
columns to determine the width of the report. However, while printing, there is still a limit of
255 characters.
Absolute Value Function in Reports
To ease reporting, you can now use the absolute value function in row set definitions to
display amounts as positive numbers, regardless of their debit or credit balances. This
function is helpful for defining income statements, balance sheets, and other financial reports
in which amounts are generally displayed as positive numbers.
14. Can I remove the ‘No specific Company requested’ text from the FSG
heading?
The text ‘No specific Company requested’ will appear as long as no content set is used for
the report. A content set must be specified for this text not to appear. Depending on the
content set parameters the actual segment value description or the text ‘No specific Company
requested’ will appear. For example, when Display is set to ‘PE’ a separate report is
generated for each value and the specific value’s description is displayed, rather than ‘No
specific Company requested’.
This text will also change if you enter a Segment Override for Company (segment) at runtime
on the Run Financial Reports form. By doing this, you are running the FSG for only the
Company value you specified.
15. Can I remove the segment header descriptions from the top of the FSG
reports?
The accounting flexfield segment headings (CO, REG, etc.) can be removed with the use of a
Row Order. See Note:1037253.6 for instructions on how to do this.
16. Can I customize or move the 3 heading lines that appear at the top of the
FSG (set of books, report name, period)?
The first line of the FSG report heading contains the set of books name. This information can
not be changed.
The second line of the FSG report heading contains the report name. For Release 10, this is
the Row Set name that is used in the FSG. For Release 11 and 11i, this report name is defined
in the Report definition (Navigation = Reports/Define/Report).
The third line contains the period that the FSG is being run for. This can not be changed.
The date and time in the upper right corner indicates when the report was created. The page
number appears here also. This can not be changed.
ADI can be used to publish the FSG report, using a theme that you customize to make some
of these changes. See the Application Desktop Integrator User’s Guide for more information.
17. How can I display USD and STAT amounts on the same FSG report?
On the Define Rowset form:

Make sure you have the following set up:
STAT Accounts
– Set the ‘Currency’ field to STAT for accounts that are STAT only.
– Set the ‘Control Value’ field to 1 for accounts that are STAT.
USD Accounts
– Set the ‘Currency’ field to USD.
– Leave the ‘Control Value’ field blank for USD accounts.
On the Define Column Set form:
Under Balance Control Option – Do not input any Currency or Control values (i.e. leave
fields blank). (If you enter a Currency on the Column also, FSG will report 0 in intersection
of the row and column.)
Note that the currency entered at runtime (specified at the report level) is used only for rows
and columns to which you did not assign a currency when you defined your row and column
sets.
18. How can I report on a multiple level account hierarchy in an FSG?
To report on Multiple Hierarchy levels (child, parent, grandparent, etc.) in FSGs you have to
have as many sequences in the row set as the number of parents/grandparents/great-
grandparents that you wish to report on.
You can not report on all levels by defining a single row sequence. See Note:1014255.102 for
more information on how to do this.
19. How can I define an FSG percentage calculation Column such as percent
of sales?
When defining a row, you can enter a value in the ‘Percent of Row’ field. The value entered
in this field is the sequence number of the row, that will be used as the denominator in the
calculation of the percentage column.
See Note:1014921.6 for detailed instructions.
20. Can an FSG output be created in PDF format?
This functionality is available in 11.5.10 but not earlier versions. Please see note:220761.1
for more information.
>
21. What is the meaning of ‘n/m’ on my FSG?
The means ‘no meaning’. FSG displays this when there is a calculation that is attempting a
divide by zero. You cannot remove this, or change it to any other value (other than changing
the calculation itself so it doesn’t result in a divide by zero).
22. I used column set builder to set the width of the last column in my report.
After saving and requerying the column set, the width has changed. Why?
The width of the last column can only be controlled through the format mask. Define the
format mask of the last column to be as wide as the desired width of the column.
23. Can FSG reports and components be secured/protected so only certain

people can modify or run them?
No. You can only restrict/protect the data that is reported on in the report. You cannot restrict
access to the reports and components themselves.
24. How do segment overrides, content sets, account assignment ranges and
display types work together?
For a detailed explanation, see Note:207779.1.
25. When hiding data using a Display Group/Set in FSG the underline under
that data still appears.
The underline character is part of the format option and is not affected by the display set
definition, which only hides the actual data. The work around is to remove the underline from
the row definition prior to running the report.
26. I’m using a Content Set with a range of cost centers. There are some
inactive cost centers within that range. How can I suppress the creation or
printing of the reports for those inactive cost centers, or for disabled or
inactive accounts?
There is no way to exclude particular values that are included in the range you defined in the
content set, or in an account assignment range in a row or column set. You must define new
ranges that do not include those inactive cost centers or accounts.
27. How can I define a column to be for a specific or constant period, such as
January of the current year, or dynamically change the period?
This functionality is not available.

FSG uses the period Offset, and the runtime period you enter, to determine which periods to
report on. Use a negative number to report on periods prior to your runtime period, and a
positive number to report on periods after your runtime period. For example, a column with
an offset of 0 will contain amounts for the period you entered at runtime. A column with a -1
offset will contain amounts for the prior period, a -2 will contain amounts for a period 2
earlier than the runtime period. An offset of 1 will give you amounts for the period following
the runtime period (providing that period has been opened before).
28. Why can some column sets be viewed/used with different sets of books and
others cannot?
If account assignments have been defined in the column set, then that column set is only
available to sets of books that use that same chart of accounts. If there are no account
assignments in them, and the same chart of accounts (accounting flexfield structure) is used
between sets of books, then they should be available to all of those sets of books.
29. How do I see the SQL code behind the FSG report?
The FSG reports are created from a program written in ‘C’ code, not from Oracle Reports, as
is the case with standard reports. Many modules and tables are used to create reports based on
the definition and component of a particular FSG. This would make looking at code for an
FSG report (as you would a standard report) almost impossible. One approach is to turn the
profile FSG: Message Detail to FULL and run the report. The logfile will contain some of the
SQL. A session level trace will provide all of the SQL. See Note:141278.1 for information on
how to get the trace.
30. How do I show the YTD amount for the end of the fiscal year on an FSG?
In Release 11i, there is a patch available (2650861) that will allow you to use an amount type
called YTD-Actual (FY End). Used without a period offset, FSG will give you the YTD
balance for the fiscal year the report is run for. This amount type only pertains to the very last
period of the current fiscal year and the status of that period must be Open or Closed. Current
fiscal year means the year the period you are running the FSG for falls into.
If you use a period offset with the YTD-Actual (FY-End) amount type, and the resulting
period falls into another fiscal year, it will get the year to date balance for that year. The
offset is in whole year chunks so for example: -12 would be last year -24 the year before.
In release 11.0 and 10.7, you must still use the YTD-Actual amount type and the offset for
the last period of the year.
31. Can I create an FSG in html format?
Not from the standard application. In the applications you have a choice of 3 output options:
1) Text, 2) Tab-delimited – for importing into a spreadsheet, or 3) Spreadsheet – for
downloading to ADI.
You can create an FSG in html format in ADI (Applications Desktop Integrator). In 11.5.10
FSG’s can now be published using xml formatting. Please see note:220761.1 for further
information.
32. How can I run an FSG from the Standard Request Submission form?
Add the program ‘Program – Run Financial Statement Generator’ to your Request Group.
See Note:1060806.6 for detailed instructions.
>
33. When using a content set, sometimes the amounts are duplicated (doubled
or tripled).
The values defined in a content set override the values defined in the row set account
assignments. Depending on how your account assignments are structured, this may result in
duplication of the account assignment ranges. See Note:147218.1 for an explanation and
workaround.
34. How Can You Print A Parent Account Description In The Row Set ?
A Row Name has been specified but this is not printed on the report. This becomes the row
identifier in the row calculations window. To display a parent account description, enter your
description in the LINE ITEM field. This will be the description that is printed on the report
output.
35. Can I make the same FSG report work for both my sets of books ?
No, currently this functionality does not exist. Enhancement request bug:812503 has been
raised requesting this functionality. The workaround is to copy and modify the FSG report for
each Set of books.
36. How do I find which FSG patches I have applied. ?
See Note:549289.1 How To Determine Which FSG Patches Have Been Applied
37. How can I increase the size of the description displayed on the report ?
>There are two ways you can increase the display size of the account description.
- increase the size of the display width in the row order.
- increase the POSITION of the description column in the column set.
You will need to change the POSITION on all the other columns to allow for the increase.
See also the size limitations in question 5 and question 20 above.
38. (R12) The Ledger List of Values on the Run Financial Reports form shows
all possible ledgers. How can this be limited to only ledgers the responsibility
should access?
The Data Access Set assigned to the Responsibility (via the profile GL: Data Access Set)
controls which ledgers you can actually update or view data for.
Even if there is a ledger name in a LOV, you should not be able to see the data for that ledger
in the FSG if the Data Access Set does not have that access.
39. (R12) How can you report on a budget entered in a foreign currency?
Assign a control value to each of the Budget, Variance and Variance % columns. In the FSG
Report Definition, assign the control value to the appropriate budget and currency.
Posted in FSG, General Ledger, Oracle E-Business Applications, Oracle Financial | Leave a
Comment »
R12: How To View Reporting Sequences For

Subledger Journals?
Goal
1. You have defined Sequencing- reporting for both subledger and GL journal entry - event
GL period
close.
After closing the period in GL, the ‘Create Reporting Sequence Number’ program is
automatically launched and completed normally but when checking the reporting sequence
number for Subledger journals and GL journal entries – only the reporting sequence
numbers for GL journal entries are shown and no reporting sequences for Subledger journals
are available.
How to view the reporting sequence created and assigned to subledger journals?
Solution
This is the intended functionality.
For subledger journals you can see the reporting sequence in SLA level not in GL. For
subledger journals GL can’t transfer the reporting sequence. Only manual journals which are
created in GL will get the reporting sequence. For subledger journals you can see the
reporting sequence in SLA level only .If however a subledger journal is reversed user will not
get a reporting sequence because the reversals do not populate the xla_seq_je_headers_gt
table that gets the sequence
In order to see the reporting sequences for subledger journals in SLA:
- Log in with your SLA responsibility;
- Check your setup according to ‘Oracle Subledger Accounting Implementation Guide

Release 12′ – Chapter 7 ‘Reporting Sequence’- page 7-4 ‘Reporting Sequence Process Steps’
and following.
- Navigate to Subledger Journal Entries > Lines > make your query and see the transactions
retrieved.
- In the ‘Transaction information’ area note the ‘ + Show additional information’ : unhide the
information ; at this step you can see your accounting and reporting sequences numbers.
Note: In order to have the assigned reporting sequences used you have to:
- Check the ‘journal entry status’ of ‘Final’; draft entries are not assigned a reporting
sequence;
- Check that the transactions are posted in GL;
- Check that the GL period has been closed and the automatically launched process ‘Create
Reporting Sequence Number’ has completed normally;
- At the time you check your SLA reporting sequences numbers the period in GL has not
been re-opened (the program erases the sequences that are assigned to the journal entries that
belong to the reopened period).

R12 What are the Differences Between Accounting

Sequencing and Reporting Sequencing?
The accounting sequence is assigned to Subledger Accounting journal entries at the time that
the journal entry is completed. The sequence is assigned in the completion date order using
the GL date as the date criterion for determining the sequence to be used.
The reporting sequence is assigned to both Subledger Accounting journal entries and General
Ledger journal entries when the General Ledger period is closed. This sequence is used by
most of the legal reports required in some countries as the main sorting criterion to display
the journal entries.Reporting sequence is optional.
These two sequences are not mutually exclusive and can coexist in the same journal entry.
Note: for more details

-Oracle� Financials Implementation Guide (Part No. B16386-01) contains a
separate chapter on Accounting and Reporting Sequencing;
-Oracle� Subledger Accounting Implementation Guide chapter on Reporting Sequencing;
Setup:
1 Go to Setup > Financials > Sequences >.Assign

2.Select your General Ledger
3.Select Sequence Entity : ‘Subledger Journal Entry’
4.Select Sequence Event : ‘GL Period Close’: for fiscal reporting during accounting period
close./
‘Accounting’: for fiscal accounting of journal entries originating in the subledgers.
5 .Select Sequence Entity : ‘GL Journal Entry’
6. Select Sequence Event: ‘GL Period Close’: for fiscal reporting during accounting period
close./
‘Posting’ : for fiscal accounting of journal entries originating in the general ledger.

How Payables Payment Terms Logic Works ?

Posted by Mahmoud Maher on December 8, 2010
How Payment Terms Work And What Is The Functionality Of Payment Terms When ?
The Payment Terms defined works on three basic fields on which you have
entered/defined information.
The below combinations along with Invoice date defaults your Invoice Due
Date.
In the Define Payment terms screen
Method 1)
---------
Invoice Date and No of Days entered in Payment term Days field
a)Days
Say, Invoice date is 28-Nov-2001 then if you enter 60 days then due date
will
be 27-Jan-2001. It means it calculates no of days from the Invoice date.
Method 2)
---------
Invoice Date + Cut Off day + Day of month with Months ahead.
1) Cut-off Day
2) Day of Month with Months ahead
For example :
If you enter Payment Terms like this:

Cut of day 31 (Last day of a Month) Means even though invoice is 28th 1st
what so ever, it calculates from the last day of month.
Day of a month 29
Months ahead 2 ( Two Months)
If invoice is dated 28-Nov-2001, with the above setup you get Due date as
29-Jan-2001 as due date.
It will always calculate from the End of Nov ie 30th Nov and Then it takes
Two Months here it gives you always 29th of Second month from Invoice date.
ie
Invoice Date Due Date
28-Nov-2001 29-Jan-2002
28-Dec-2001 28-Feb-2002
28-Jan-2002 29-Mar-2002
So on and so forth.
Either you give 29th or 30th what so ever, once you give the Day of Month
you will get only that day as due date after Months specified in the Months
ahead field.
This is how application works and desinged to work.
Please refer documentation for the following terms
Cutoff Day.
Days.
Day of Month
Months Ahead.
Further,
In case, you have two invoice payment terms which you are not able to
define in AP and the due dates are not defaulting as expected;
The two terms are:-
(1) 60 DAYS END OF MONTH go to month end and add 60 days

E.G: invoice dated 28 NOV, due date is 29 JAN

E.G: invoice dated 28 NOV, due date is 28 FEB
How would you define these?
The Payment Terms functionality does not support the above example

Comment »
R12 How to get Payment Method Defaulted In Supplier

Creation page?
1. To ensure correct Setup, please perform the following:
a) Go to Setup > Payment > Payment Administrator > Payment Methods
b) Choose Payment Methods and then press Go To Task
c) Query for your Payment Method which you want to be defaulted and then press Go Button
d) Press Update (Not Update Usage Rules)
e) Under (Usage Rules) region you will find (Automatically assign Payment Method to all
Payees) Check Box,Click on this Check Box to enable that option and then press Apply
Button
2)Also follow the following setup steps in
a (1):
a) Go to Setup> Payment> Payment Administrator > Disbursement System Options and then
press Go To Task
b) Under (Enterprise Level) region press View Settings
c) Under (Disbursement System Options: Enterprise-wide) you will find the option (Default
Payment Method), press Update Button
d) There are two Options:

> Based Only on Payment Method Defaulting Rules Setup
> Override Defaulting Rules when Default Method Set for Payee
> Please choose the first option (Based Only on Payment Method Defaulting Rules Setup)
and then press Apply Button 3) Retest your issue again and feed us back if your issue is
resolved.
Archive for the ‘Multi-Org’ Category

Multi-Org Advantages
Posted by Mahmoud Maher on May 20, 2010
Product Integration
Single installation improves integration between products that required multiple
installations and those that did not. Two integration examples are Oracle General
Ledger’s drill down to Oracle Receivables and Oracle Payables mass addition to
Oracle Assets. In a multiple installation environment (MSOBA), these features
often worked only for one installation.
Global Enterprise Management and Visibility
A core benefit of a single-instance is the ability to improve global enterprise
management and visibility to global enterprise conditions. Implementing global
business processes through Oracle Applications and integrating information in a
consolidated manner enables organizations to provide a single, consistent face to
customers. Moving to this architecture also positions organizations to take
advantage of eBusiness initiatives like iProcurement, iStore and other eCommerce
features of Release 11i.
Oracle Applications Release 11i provides new features and functionality that
specifically support global enterprise operations from a single instance of Oracle
Applications. Using multi-org features, plus functionality to meet legal
requirements in most countries around the world, a single installation and database
instance can support a company’s global needs. This advantage is specifically not
available using MSOBA architecture and represents a major reason to migrate to
Release 11i.
Cross-Organization Features
Single installation enables a global view of enterprise information. Single
installation also allows for more sharing of setup data. When a product was
installed multiple times, some setup data were duplicated in each installation.
Oracle Applications supports many cross-organization features that leverage the
single installation architecture, including:
· Automatically generate intercompany invoices with transfer pricing when you
sell from one organization and ship from another.
· Run selected reports at the operating unit, legal entity, or set of books level.
· Define customers and suppliers in a global registry and secure customer and
supplier addresses by operating unit.
· Purchase products through one legal entity and receive them in another legal
entity
· Support any number of legal entities within a single installation of Oracle
Applications
Strategic Planning for an Oracle Applications Instance Consolidation Project Page 2
· Secure access to data so that users can access only the information that is
relevant to them
Multiple Sets of Accounting Books
Multi-Org is designed to support many sets of books for accounting. A Set of
Books is the highest level at which the financial reporting entities are segregated.
Any entity that requires a unique chart of accounts, functional currency, or fiscal
calendar should utilize a different Set of Books. (This is a functional distinction,
not a technical one) Prior to Multi-Org, the Set of Books was set at the site level
and this restriction drove companies to have multiple installations of the
Applications looking at the same database instance to cover different reporting and
transaction needs.
Application Administration
Single installation reduces the total time required to install and upgrade Oracle
Applications. It also simplifies the administration of grants and synonyms. Since
each product installation required grants and synonyms to link to other products,
multiple installations meant maintenance of multiple sets of grants and synonyms.
Use a single installation of any Oracle Applications product to support any number
of organizations, even if those organization use different sets of books
Reduction in support and maintenance costs
A consolidated environment reduces the total cost of ownership for your Oracle
Applications. This is achieved through the reduction in technical resources. If you
have several installations on one or many boxes there is an opportunity to reduce
maintenance costs by consolidating. A consolidated model would eliminate the
task of keeping the installations in sync, thus improving quality of data, while
reducing hardware and support costs.
It also reduces the cost for any subsequent upgrades. A consolidated instance
would thus enable a reduction of people and time needed to apply duplicate patches
and run AutoUpgrade. This would also accelerate the time it takes to complete the
upgrade and reduce the number of resources involved.
Data Security
You can limit users to information relevant to their organization. Multi-org offers
the ability to store all data under one database instance, while keeping the
transaction data separate and secure. It is like having one database with the
convenience of many logical databases embedded within it. As an example, you
can limit access for order administration clerks to sales orders associated
exclusively with their sales office.
Inventory Organization Security by Responsibility
You can specify which inventory organizations are available to users in each
responsibility. The Choose Inventory Organization window automatically limits
Strategic Planning for an Oracle Applications Instance Consolidation Project Page 3
available inventory organizations to those authorized for the current responsibility.
Thus there is no change from older MSOBA architecture to multi-org in security terms.
Reporting
One specific benefit of multi-org is the ability to perform consolidated reporting
across the enterprise, allowing you to look at information with a global perspective.
A consolidated instance saves time in collecting information to support business
decision-making. A consolidated instance provides consistent and better quality
information. It is faster so that an organization can be more responsive to the needs
of the business. Greater flexibility for making financial adjustments can be
achieved in a consolidated position with the ability to instantly impact global
decisions throughout the company.
Product IntegrationSingle installation improves integration between products that required

multipleinstallations and those that did not. Two integration examples are Oracle
GeneralLedger’s drill down to Oracle Receivables and Oracle Payables mass addition
toOracle Assets. In a multiple installation environment (MSOBA), these featuresoften
worked only for one installation.Global Enterprise Management and VisibilityA core benefit
of a single-instance is the ability to improve global enterprisemanagement and visibility to
global enterprise conditions. Implementing globalbusiness processes through Oracle
Applications and integrating information in aconsolidated manner enables organizations to
provide a single, consistent face tocustomers. Moving to this architecture also positions
organizations to takeadvantage of eBusiness initiatives like iProcurement, iStore and other
eCommercefeatures of Release 11i.Oracle Applications Release 11i provides new features
and functionality thatspecifically support global enterprise operations from a single instance
of OracleApplications. Using multi-org features, plus functionality to meet legalrequirements
in most countries around the world, a single installation and databaseinstance can support a
company’s global needs. This advantage is specifically notavailable using MSOBA
architecture and represents a major reason to migrate toRelease 11i.Cross-Organization
FeaturesSingle installation enables a global view of enterprise information. Singleinstallation
also allows for more sharing of setup data. When a product wasinstalled multiple times, some
setup data were duplicated in each installation.Oracle Applications supports many cross-
organization features that leverage thesingle installation architecture, including:·
Automatically generate intercompany invoices with transfer pricing when yousell from one
organization and ship from another.· Run selected reports at the operating unit, legal entity,
or set of books level.· Define customers and suppliers in a global registry and secure
customer andsupplier addresses by operating unit.· Purchase products through one legal
entity and receive them in another legalentity· Support any number of legal entities within a
single installation of OracleApplicationsStrategic Planning for an Oracle Applications
Instance Consolidation Project Page 2· Secure access to data so that users can access only
the information that isrelevant to themMultiple Sets of Accounting BooksMulti-Org is
designed to support many sets of books for accounting. A Set ofBooks is the highest level at
which the financial reporting entities are segregated.Any entity that requires a unique chart of
accounts, functional currency, or fiscalcalendar should utilize a different Set of Books. (This
is a functional distinction,not a technical one) Prior to Multi-Org, the Set of Books was set at
the site leveland this restriction drove companies to have multiple installations of
theApplications looking at the same database instance to cover different reporting
andtransaction needs.Application AdministrationSingle installation reduces the total time
required to install and upgrade OracleApplications. It also simplifies the administration of
grants and synonyms. Sinceeach product installation required grants and synonyms to link to
other products,multiple installations meant maintenance of multiple sets of grants and
synonyms.Use a single installation of any Oracle Applications product to support any
numberof organizations, even if those organization use different sets of booksReduction in
support and maintenance costsA consolidated environment reduces the total cost of
ownership for your OracleApplications. This is achieved through the reduction in technical
resources. If youhave several installations on one or many boxes there is an opportunity to
reducemaintenance costs by consolidating. A consolidated model would eliminate thetask of
keeping the installations in sync, thus improving quality of data, whilereducing hardware and
support costs.It also reduces the cost for any subsequent upgrades. A consolidated
instancewould thus enable a reduction of people and time needed to apply duplicate
patchesand run AutoUpgrade. This would also accelerate the time it takes to complete
theupgrade and reduce the number of resources involved.Data SecurityYou can limit users to
information relevant to their organization. Multi-org offersthe ability to store all data under
one database instance, while keeping thetransaction data separate and secure. It is like having
one database with theconvenience of many logical databases embedded within it. As an
example, youcan limit access for order administration clerks to sales orders
associatedexclusively with their sales office.Inventory Organization Security by
ResponsibilityYou can specify which inventory organizations are available to users in
eachresponsibility. The Choose Inventory Organization window automatically limitsStrategic
Planning for an Oracle Applications Instance Consolidation Project Page 3available inventory
organizations to those authorized for the current responsibility.Thus there is no change from
older MSOBA architecture to multi-org in securityterms.ReportingOne specific benefit of
multi-org is the ability to perform consolidated reportingacross the enterprise, allowing you
to look at information with a global perspective.A consolidated instance saves time in
collecting information to support businessdecision-making. A consolidated instance provides
consistent and better qualityinformation. It is faster so that an organization can be more
responsive to the needsof the business. Greater flexibility for making financial adjustments
can beachieved in a consolidated position with the ability to instantly impact globaldecisions
throughout the company.
Posted in Multi-Org, Oracle E-Business Applications | Leave a Comment »
Multi-Org in Release 12
Posted by Mahmoud Maher on May 17, 2010
In the Multi-Org model of E-Business Suite 11i, there is a one-to-one relation between a
responsibility and an operating unit. This approach has worked well over the years; however,
there are some limitations because organizations sometimes want the ability to allow
responsibilities to be able to access data from multiple operating units.
For example, a large global organization might have a common shared service center for
European operations where all European invoices are centrally processed.
Additionally, there might be another shared service center for American operations. Let us
presume all invoices received in Europe are scanned and placed in an electronic queue.
The payables clerk working for the European shared service center can enter invoices for any
operating unit within Europe. Each scanned image of the invoice will then be read by the
shared service center operator and entered into the
E-Business Suite using the Payables invoice screen.
Different scanned images of invoices might correspond to different operating units such as
France, the U.K., and
Austria. If the payables clerk working in a shared service center is using E-Business Suite
11i, he or she will have to switch the responsibility each time an invoice from a different
operating unit is keyed in, which is not ideal for efficient processing of transactions.
Additionally in R11i Multi-Org model, a large organization will have to maintain several
responsibilities. If a change has to be made to one responsibility, for example a menu
exclusion, then such changes may have to be replicated across all
related responsibilities for different operating units.
R12 overcomes these limitations by allowing you to attach multiple operating units to a
responsibility.
In R12, the new Multi-Org model is implemented using HRMS Organization Hierarchy and
Security Profiles. In Oracle HRMS, it is possible to create an organization hierarchy that
contains a tree-based nested structure of the organizations
and departments in a company.
After that, a security profile can be created in Oracle HRMS to which the organization
hierarchy can be attached. This security profile is then attached to a responsibility, which in
turn has access to all organizations in the hierarchy.
The diagram in Figure 4-2 illustrates this concept.
In the Multi-Org model of E-Business Suite 11i, there is a one-to-one relation betweena
responsibility and an operating unit. This approach has worked well over the years;however,
there are some limitations because organizations sometimes want the abilityto allow
responsibilities to be able to access data from multiple operating units.For example, a large
global organization might have a common shared servicecenter for European operations
where all European invoices are centrally processed.Additionally, there might be another
shared service center for American operations.Let us presume all invoices received in Europe
are scanned and placed in anelectronic queue. The payables clerk working for the European
shared service centercan enter invoices for any operating unit within Europe. Each scanned
image of theinvoice will then be read by the shared service center operator and entered into
theE-Business Suite using the Payables invoice screen. Different scanned images ofinvoices
might correspond to different operating units such as France, the U.K., and Austria. If the
payables clerk working in a shared service center is using E-BusinessSuite 11i, he or she will
have to switch the responsibility each time an invoice froma different operating unit is keyed
in, which is not ideal for efficient processing oftransactions.Additionally in R11i Multi-Org
model, a large organization will have to maintain several responsibilities. If a change has to
be made to one responsibility, forexample a menu exclusion, then such changes may have to
be replicated across allrelated responsibilities for different operating units. R12 overcomes
these limitations by allowing you to attach multiple operating units to a responsibility.In R12,
the new Multi-Org model is implemented using HRMS OrganizationHierarchy and Security
Profiles. In Oracle HRMS, it is possible to create anorganization hierarchy that contains a
tree-based nested structure of the organizationsand departments in a company.After that, a
security profile can be created in Oracle HRMS to which theorganization hierarchy can be
attached. This security profile is then attached toa responsibility, which in turn has access to
all organizations in the hierarchy.The diagram in Figure illustrates this concept.
Multi Org R12
Once the security profile has been defined, it can be attached to any responsibility using the
profile option MO: Security Profile. This design approach overcomes the restriction of a one-
to-one relationship between a responsibility and operating unit. If your implementation team
does not set the profile MO: Security Profile in R12, then Multi-Org in R12 can be made to
work exactly the same as in R11i by setting profile option Initialization SQL Statement –
Custom to mo_global.init(‘S’,null);.
This new design is also known as MOAC (Multi-Org Access Control). In MOAC, more than
one operating unit is accessible from a single responsibility. All the screens that operate on
Multi-Org tables have an Operating Unit field. This is applicable to screens developed using
both OA Framework and Oracle Forms. The value of the Operating Unit field is defaulted
using MO: Default Operating Unit.
Posted in Multi-Org, Oracle E-Business Applications | 1 Comment »
How to Set up MULTI-ORG in Oracle Applications?

Use a single installation of any Oracle Applications product to support any number of
organizations, even if those organizations use different sets of books.
Support any number of legal entities within a single installation
Secure Access: You can assign users to particular organizations. This ensures accurate
transactions in the correct operating unit.of Oracle Applications.
You can sell from one legal entity and ship from another, posting to each organization’s set
of books.
You can enter purchase orders and assign for receipt any inventory organization that uses the
same set of books.
You can support multiple organizations running any Oracle Applications product with a
single installation. When you run any Oracle Applications product, you first choose an
organization—either
implicitly by choosing a responsibility, or explicitly in a Choose Organization window. Each
window and report then displays information for your organization only.
Each legal entity can have one or more balancing entities. An operating unit is associated
with a legal entity. Information is secured by operating unit for these applications. Each user
sees information only for their operating unit. To run any of these applications, you choose a
responsibility associated with an
organization classified as an operating unit.
Legal Entities Post to a Set of Books Each organization classified as a legal entity identifies a
set of books to post accounting transactions.
Operating Units Are Part of a Legal Entity Each organization classified as an operating unit is
associated with a legal entity.
Inventory Organizations are Part of an Operating Unit Each organization classified as an

inventory organization references an operating unit.
Inventory Organization Determines Items Available to Order Management The OM:Item

Validation Organization profile option specifies the inventory organization that Order
Management uses to validate items. Some inventory item attributes for Receivables and
Order Management, including Tax Code and Sales Account, are specific to an operating unit
or an accounting flexfield structure. Therefore, you
should define an item validation organization for each operating unit.
Inventory Organization Determines Items Available to Purchasing The inventory

organization you specify in the financial options for each operating unit determines the items
available in Purchasing. You can only choose an inventory organization that uses the same
set of books as your operating unit.
Data Security You can limit users to information relevant to their organization. For example,
you can limit access for order administration clerks to sales orders associated exclusively
with their sales office.
Inventory Organization Security by Responsibility You can specify which inventory

organizations are available to users in each responsibility. The Choose Inventory
Organization window automatically limits available inventory organizations to those
authorized for the current responsibility.
Responsibility Determines Operating Unit Your responsibility determines which operating

unit you access when you use Oracle Applications. When you use Oracle Payables,
Receivables, Order Management and Shipping Execution, Purchasing, Projects, and Sales
Compensation you see information that is relevant to your operating unit. All transactions
you create are automatically assigned to your operating unit.
Purchase and Receive Products Between Organizations Your purchase order operating unit
and receiving inventory organization must share the same sets of books to receive against a
purchase order.
Automatic Intercompany Sales Recognition Sales orders created and shipped from one legal
entity to a different legal entity automatically generate an intercompany invoice to record a
sale between the two organizations.
Posting Intercompany Invoices to Different Accounts You can define different accounts for
Trade and Intercompany Cost of Goods Sold and Sales Revenue to eliminate intercompany
profit.
These are the steps to follow when implementing the Multiple Organization support feature
in Oracle Applications.
1. Develop the Organization Structure
2. Define Sets of Books
3. Define Locations
4. Define Business Groups (optional)
5. Associate Responsibilities with Business Groups
6. Define Organizations
7. Define Organization Relationships
8. Define Responsibilities
9. Set MO: Operating Unit Profile Option
10. Convert to Multiple Organization Architecture
11. Change Order Management Profile Option
12. Set Profile Options Specific to Operating Units
13. Define Inventory Organization Security (optional)
14. Implement the Applications Products
15. Secure Balancing Segment Values by Legal Entity (optional)
16. Run the Multi–Org Setup Validation Report (recommended)
17. Implement Document Sequencing (optional)
18. Define Intercompany Relations (optional)
19. Set Top Reporting Level Profile Option (optional)
20. Set Conflict Domains (optional)
Step 1 Develop the Organization Structure A successful implementation of Multiple
Organization support in Oracle Applications depends primarily on defining your
organizational structure in the multi–level hierarchy used by Oracle Applications. The levels
are:
• Business groups
• Accounting sets of books
• Legal entities
• Operating units
• Inventory organizations
If your enterprise structure requires that you define a business group, you should define sets
of books before business groups.
Step 3 Define Locations Oracle Applications products use locations for requisitions,
receiving, shipping, billing, and employee assignments.
Step 4 Define Business Groups (optional) If you define a new business group instead of
modifying the pre–defined business group, you need to set the Business Group profile option
at the responsibility level for the new business group. Oracle Human Resources automatically
creates a security profile with the business group name when you define a new business
group.
You should define all your business groups before defining any other type of organization.
To define additional business groups:
1. Set the responsibility from which you define the organizations in the profile option HR:
User Type to HR User, to get access to the Define Organizations window. This profile must
be set for all responsibilities that use tables from Oracle Human Resources (for example,
responsibilities used to define employees and
organizations).
2. Define all of your business groups at this step from a responsibility. Do not define any new
organizations or organization hierarchies until you have associated each business group with
a responsibility. You do this by setting the HR: Business Group profile option to the business
groups for each responsibility.
3. After you have correctly associated business groups to responsibilities, you enter business
group setup information, such as additional organization information and business group
classifications, to create the organization structure.
4. After you have correctly associated your business groups with a responsibility, sign off and
sign on again using the correct responsibility for the business group you want to define. For
example, if you have a U.S. business group and a U.K. business group, select the
responsibility attached to the U.S. business group to define the U.S. organization structure.
Note: Oracle Human Resources automatically creates a view all security profile with the
business group name. This enables you to view all records for your business group.
Note: Oracle Human Resources allows you to use a single responsibility security model by
enabling the Security Group. This allows you to access more than one business group from a
responsibility. You should not use the single responsibility model in Multiple Organization
products.
Step 5 Associate Responsibilities with Business Groups (optional)

Note: This section applies to you if you have multiple business groups, or if you do not
choose to use the default business group provided by Oracle Applications.
If you have multiple business groups, you must associate each responsibility to one and only
one business group. You associate a business group with a responsibility via the HR:Business
Group system profile option. If you are upgrading to Multiple Organizations, you must also
associate previously created responsibilities to the appropriate business group.
Step 6 Define Organizations
Use the Define Organization window to define all your organizations. You can perform this
step and the next step (Define Organization Relationships) at the same time. The steps are
presented separately to emphasize the difference between the organizational entity and the
role it plays in your organizational structure.
_ To define legal entities, operating units, and inventory organizations:

1. Log in to the responsibility associated with the business group for which you are defining
an organization.
2. Define a legal entity. It is then automatically attached to the correct business group.
3. Define operating units.
4. Define your inventory organizations for each operating unit that will have an inventory
organization.
Note: Do not define the inventory parameters at this point.
5. If you have more than one business group, switch to the responsibility associated with the
other business group and continue to define your organization structure.
Step 7 Define Organization Relationships Use the Define Organization window to define
organization
relationships by assigning classifications to each organization. Attributes of certain
classifications relate organizations and the roles they play. You can classify an organization
as any combination of legal entity, operating unit, and inventory organization. Specify your
organization classifications in the following order:
1. Legal Entities Attach organizations designated as legal entities to a set of books. You must
also specify a location in the Define Organization window. Use the Define Location window
to define locations for
your legal entities.
2. Operating units Attach the operating units to the correct set of books and legal entity.
3. Inventory organizations Attach the inventory organizations to the correct operating unit,
legal entity, and set of books. If you have more than one business group, change to the
responsibility
associated with the other business group and continue defining your organization
classification.
Classification Information Type Required Attributes

Business Group Business group information if Human Resources is installed. Otherwise,
None.
Short Name, Employee/Applicant Numbering, Key Flexfield Structures, Default Legislation
Code, and Currency
GRE/Legal Entity Legal Entity Accounting Set of Books, Location
Operating Unit Operating Unit Information Legal Entity, Set of Books
Inventory Organization Accounting Information Set of Books, Legal Entity, Operating Unit
Special Considerations for Inventory Organizations All the inventory organizations in the
above chart have been set up with the minimal amount of information to enable them in the
Multiple Organization environment. This minimal amount is detailed in the table below. If
you plan to implement Oracle Inventory, you need to follow the setup procedures for that
product.
For a standalone Oracle Purchasing installation (without Oracle

Inventory), you must specify the following minimum information:
1 Accounting information : Set of books, legal entity, operating unit
2 Receiving information : Three–character organization code,prefix serial (no dummy)
3 Inventory information : All required accounts
You must define the control options and account defaults for one inventory organization, the
item master organization. Then you can easily assign items to other inventory organization
without recreating all the item information. Use the Organization Parameter window to assign
inventory organizations to the item master. The item master organization uses itself as the
item master.
There is no functional or technical difference between the item master organization and other
inventory organizations. However, we recommend that you limit the item master to just an
item definition organization. If you set up new inventory organizations in the future, you can
assign the new items to only the item master and the new inventory organization.
Step 8 Define Responsibilities Use the Define Responsibility window to define

responsibilities for each operating unit by application. When you sign on to Oracle
Applications, the responsibility you choose determines the data, forms, menus, reports, and
concurrent programs you can access.
Step 9 Set MO: Operating Unit Profile Option Oracle Applications uses the profile option
MO: Operating Unit to link an operating unit to a responsibility. You must set this profile
option for
each responsibility.
After you choose your responsibility, there is an initialization routine that reads the values for
all profile options assigned to that responsibility,
Posted


Check),
565898.1 / Patch 6836355

Comment »
How Payables Payment Terms Logic Works ?

How Payment Terms Work And What Is The Functionality Of Payment Terms When ?
The Payment Terms defined works on three basic fields on which you have
entered/defined information.
The below combinations along with Invoice date defaults your Invoice Due
Date.
In the Define Payment terms screen
Method 1)
---------
Invoice Date and No of Days entered in Payment term Days field
a)Days
Say, Invoice date is 28-Nov-2001 then if you enter 60 days then due date
will
be 27-Jan-2001. It means it calculates no of days from the Invoice date.
Method 2)
---------
Invoice Date + Cut Off day + Day of month with Months ahead.
1) Cut-off Day
2) Day of Month with Months ahead
For example :
If you enter Payment Terms like this:

Cut of day 31 (Last day of a Month) Means even though invoice is 28th 1st
what so ever, it calculates from the last day of month.
Day of a month 29
Months ahead 2 ( Two Months)
If invoice is dated 28-Nov-2001, with the above setup you get Due date as
29-Jan-2001 as due date.
It will always calculate from the End of Nov ie 30th Nov and Then it takes
Two Months here it gives you always 29th of Second month from Invoice date.
ie
Invoice Date Due Date
28-Nov-2001 29-Jan-2002
28-Dec-2001 28-Feb-2002
28-Jan-2002 29-Mar-2002
So on and so forth.
Either you give 29th or 30th what so ever, once you give the Day of Month
you will get only that day as due date after Months specified in the Months
ahead field.
This is how application works and desinged to work.
Please refer documentation for the following terms
Cutoff Day.
Days.
Day of Month
Months Ahead.
Further,
In case, you have two invoice payment terms which you are not able to
define in AP and the due dates are not defaulting as expected;
The two terms are:-

E.G: invoice dated 28 NOV, due date is 29 JAN

E.G: invoice dated 28 NOV, due date is 28 FEB
How would you define these?
The Payment Terms functionality does not support the above example

Comment »
R12 How to get Payment Method Defaulted In Supplier

Creation page?
1. To ensure correct Setup, please perform the following:

a) Go to Setup > Payment > Payment Administrator > Payment Methods
b) Choose Payment Methods and then press Go To Task
c) Query for your Payment Method which you want to be defaulted and then press Go Button
d) Press Update (Not Update Usage Rules)
e) Under (Usage Rules) region you will find (Automatically assign Payment Method to all
Payees) Check Box,Click on this Check Box to enable that option and then press Apply
Button
2)Also follow the following setup steps in
a (1):
a) Go to Setup> Payment> Payment Administrator > Disbursement System Options and then
press Go To Task
b) Under (Enterprise Level) region press View Settings
c) Under (Disbursement System Options: Enterprise-wide) you will find the option (Default
Payment Method), press Update Button
d) There are two Options:
> Based Only on Payment Method Defaulting Rules Setup
> Override Defaulting Rules when Default Method Set for Payee
> Please choose the first option (Based Only on Payment Method Defaulting Rules Setup)
and then press Apply Button 3) Retest your issue again and feed us back if your issue is
resolved.

Comment »
iRececivables Uptake Of Oracle Payment

About the Integration:

Oracle Payments is a new product in release 12. The product known as iPayment will no
longer exist in release 12, however all functionality that existed in it is contained within
Oracle Payments.
The objective of the new product is to give any deploying company a highly configurable and
robust solution to disburse and receive payments. Oracle Payments is a fundamental part of
the Oracle Applications architecture, and is provided with multiple products that require
support for payment processing services.
Oracle Payments provides the infrastructure needed to connect other products with third party
payment systems and financial institutions. The product supports a number of payment
features. Some features support just disbursement, some just capture, and other features are
common to both.
In iReceivables we can pay for the customers invoices . After selecting the payment method (
Bank Transfer / Credit Card Payment) a receipt would be created in AR . In earlier releases
for the capture of funds the iPayments extensions were used .
iReceivables would now call the Oracle Payment API’s for the funds capture. This is entirely
in the background and there are no visible changes in the iReceivables user interface because
of this integration.

1) What has changed?
1. The receipt class set up (in AR) has changed requiring the Oracle Payments ‘Payment
Method’ to be attached to this kind of payments.
2. Payment attributes of transactions will be stored in a centralized transaction payment-
extension entity owned by Oracle Payments.
3. In release 12, Oracle Payments owns the data model where all third party payment
instruments are stored (these are instruments like customer credit cards and supplier
bank accounts).
2) What happens during the Transaction Entry and Authorization ?
A) During the Transaction Entry

The following are captured in iReceivables during the transaction entry ( paying the Invoice
in iReceivables) for the funds capture.
 Payment method
 Payment instrument
 Payment attributes
These values are passed on to Oracle Payments before the Authorization & Settlement API’s
are
Called.The transaction authorization information is stored in Payments and linked with the
extension entity, this is
no longer stored in AR tables.
B) During Authorization
Oracle Payments mandates that authorization is invoked before a transaction can be settled in
Oracle Receivables. Oracle Payments will enforce that the settled amount is equal to or less
than the authorized amount.
Based on the payment method passed to the Authorize API, Oracle Payments will perform
different functions that depend on the nature of that payment method. For example, for
payment methods in the credit card category, Oracle Payments will attempt to validate the
credit card and reserve the transaction amounts for settlement. For payment methods in the
bank account transfer category, Oracle Payments will not attempt to reserve the funds, but
will try to validate the bank account information.
Flow Chart :
1.Create 2.Create
3.Authorize 4.Settle
Payee —> Transaction —>
—- Transaction Transaction
(Customer) (Pay the Invoice)
> Oracle Payments
Receivables / iReceivables
3) What is the set up required ?
In Oracle Payments:
A (funds capture) payment method may be set up or a seeded payment method used. It is
required for funds capture within Oracle Payments to set up a funds capture process profile, a
payment system, and a payee (the definition of the internal organization that will receive the
funds, also known as the first party payee).
Set up Oracle Payments, if you intend to use the Pay Invoice function for credit
cards or for bank account transfers using the ACH network.
In Receivables:
Define Receipt Class and Payment Method
If you are using the Pay Invoice function, define at least one receipt class and payment
method for each iReceivables payment instrument that you intend to use:
• Bank account transfers using Receivables direct debit.
• Credit card payments using Payments.
• ACH bank account transfers using Payments.
In iReceivables:
Go the iReceivable Setup Responcibility > System Parameters and select the ‘Credit Card
Receipt Method’ and
‘Bank Account Payment Method’ defined above . These would default to the receipts created
from iReceivables.
Note:
iReceivables does not support cross-currency payments. Though a user can still pay invoices
with a credit card
or bank account that has a different currency from that of the invoice, the receipt created in
iReceivables
will have the same currency as the invoice.
4) What are the Oracle Payment API’s used ?

Name Function
IBY_FNDCPT_COMMON_PUB Common structures and constants for all funds capture APIs
Set-up APIs for funds capture entities- payer, payment channels, instrumen
IBY_FNDCPT_SETUP_PUB
assignments, etc.
IBY_FNDCPT_TRXN_PUB Funds capture transactional APIs
IBY_EXT_BANKACCT_PUB External bank account APIs
IBY_CREDITCARD_PKG Create, Update, Check if it exists and Querying attributes.
Posted in Accounts Payables, Accounts Receivables, Oracle E-Business Applications, Oracle

Financial | Leave a Comment »
How to disable Create Online Accounting in Payables

Posted by Mahmoud Maher on November 2, 2010
(1) Log on to System Administrator Responsibility

(2) Navigate Applications->Menu
(3) Query up Menu “AP_APXINWKB_MENU”
(4) In the child records of AP_APXINWKB_MENU, you should see “Invoice Accounting”
(5) Uncheck the grant checkbox for “Invoice Accounting”.
(6) Log on to Payables Responsibility
(7) Create a invoice and approve it.
(8) Click on the Actions button.
(9) You should see “Online Accounting” checkbox disabled.
Posted in Accounts Payables, General Ledger, Oracle E-Business Applications, Oracle

Financial | 3 Comments »
R12 Internet Expenses FAQs

Internet Expenses
1. Why isn’t the Tax Code Defaulting on the Details Page in Internet
Expenses?
– To implement the solution, please execute the following steps: 1. Login to a payables
manager responsibility for the Operating Unit with this issue. -Navigate: Setup -> Tax -> E-
Business Tax Home 2. For Task Name ‘Create Application Tax Options’, click ‘Go To Task’
-Click ‘Create’ -Enter the Operating Unit -Enter Application Name ‘Internet Expenses’ 3.
Enter the Defaulting Order -Defaulting Order 1 should be ‘Expense Report Template’ -Apply
4. Ensure Defaulting Order Use Status is ‘Active’ 5. Bounce the Apache server
2. Why is the Expense Report Rejected by Expense Report Export Due to the
Error ‘Supplier Type Is Invalid’?
– To implement the solution, please execute the following steps:: 1. Login to a Payables
Manager responsibility 2. Navigate: Setup -> Lookups -> Purchasing 3. Query Type
‘VENDOR TYPE’ 4. Ensure Code ‘EMPLOYEE’ is not end-dated and is enabled.
3. Why is the Employee Created Automatically as Supplier Even Though the

Option is Unchecked?
Cause: Bug 6632886 R12: AUTOMATIC CREATION OF EMPLOYEE AS SUPPLIER

OPTION IS IGNORED — To implement the solution, please execute the following steps::
One-off patch 6745049 includes the fix for Bug 6632886 R12: AUTOMATIC CREATION
OF EMPLOYEE AS SUPPLIER OPTION IS IGNORED. Refer to the patch readme for
complete pre-requisite information. (This patch is available through controlled release.
Please contact support for assistance with obtaining the patch.) Alternately apply the latest
Rup patch identified in Note 423541.1.
4. Why does Expense Report Export Program Fail Due to Ora-06510:

Apps.Ap_web_export_er?
Cause: The issue is caused because one expense report was rejected with “No Exchange
Rate”. To implement the solution, please execute the following steps: 1. Define a valid
exchange rate for the rejected expense report date and currency. 2. Re-run Expense Report
Export program. 3. Migrate the solution as appropriate to other environments.
5. Why isn’t the Custom Calculate Amount Called when Returning to Cash
and Other Expenses Page?
Cause: Bug 6862323 12.0.4 – CALCULATE AMOUNT CLIENT EXTENSION WITH

POLICY SCHEDULE NOT WORKING — To implement the solution, please execute the
following steps: 1. The fix for this bug is included in one-off Patch 6862323 R12.OIE.A:
Calculate Amount client extension with policy schedule not working. Refer to the patch
readme for pre-requisite information. (This patch is available through controlled release.
Please contact support for assistance with obtaining the patch.) 2. Bounce the Apache server
after the patch is applied.
6. Why is the APXXXEER GL Account on First Line Nulled when Moving to

Second Line?
Cause: Bug 6153249 Account is spacing out after first entry in manual expense report. The
fix for this bug is included in APXXXEER.fmb 120.106 / 120.101.12000000.5, available in
the latest Rup patch identified in Note 423541.1.
7. Why does the Oie-Allocations Project Expenditure Org Field Appear to be
Limited to 30 Char?
Cause: Bug 6135815 R12 OIE-ALLOCATIONS. PROJECT EXPENDITURE

ORGANIZATION FIELD LIMITED TO 30 CHARS The fix for this bug is included
in Patch 6251856.
8. Why isn’t the Pay Group from the Expense Reports Tab of Payables
Options used for Automatically Created Suppliers?
Cause: Bug 5890829 ISSUE WITH EXPENSE REPORT SUPPLIER SETUP. Due to bug
5890829, when a Supplier is created automatically for an Employee by the Expense Report
Export program, the Supplier is being created with the Pay Group from ‘Payables System
Setup’ instead of from the Expense Reports tab of the Payables Options form. — To
implement the solution, please execute the following steps: The fix for this bug is included in
one-off Patch 5890829 12.OIE.A: PAYGROUP AND PAYMENT TERMS ARE NOT
BEING DEFAULTED CORRECTLY DURING AUTOMATIC CREATION OF
SUPPLIER. Please review the patch readme for complete information.
9. Why isn’t Definition Taxcodeid Of Type Attribute Found In

Cashandotherlinesvo?
Cause: unpublished Bug 6147311 Error Page Upon Press Next To Cash And Other Expenses
Page The fix for this bug is included in CashAndOtherListCO.java 120.63.12000000.2 and
CashAndOtherListCO.java 120.64 This bug fixed in R12.OIE.A.delta.3, patch 6250306.
(Please contact support for assistance with obtaining the patch.) Workaround: Do not
personalize Tax related items in the personalization page. Disable self service
personalization, log into application and remove all personalization related to Tax code.
Posted in iExpense, Oracle E-Business Applications, Oracle Financial | Leave a Comment »
Difference between Match and Quick Match

PO Default :
Enter PO Default as the invoice type if you know th purchase order you want to match to, but
you do not know to which purchase order shipments or distributions you want to match.
When you enter a PO Default invoice in the Invoice Workbench, Payables prompts you to
enter the purchase order number and automatically enters the supplier name, supplier number,
supplier site, and the purchase order currency for the invoice currency. When you choose the
Match button,Payables will retrieve all purchase order shipments associated with the
specified purchase order. You can then match to any shipment or distribution.
Quick Match:
Enter Quick Match as the invoice type if you want to match an invoice to all shipments on a
purchase order. When you enter a Quick Match invoice in the Invoice Workbench, Payables
prompts you to enter the purchase order number and automatically enters the supplier name,
supplier number,supplier site, and the purchase order currency for the invoice currency.
When you choose the Match button, Payables automatically matches to each shipment. You
can choose to complete the match or override the matching information. Read the rest of this
entry »

Comment »
How Does the Landed Cost Management Impacts the

Accounting Flow in a Procure To Pay Cycle
What are the accounting entries in a Procure to Pay cycle when the PO shipment is enabled
for Landed Cost Management?
1. Receive the PO with estimated landed cost calculated

- Receiving Inspection a/c DR @ Estimated Landed Cost
- AP Accrual a/c CR @ PO Price inclusive of Non-Recoverable tax
- Landed Cost Absorption a/c CR @ (Estimated Landed cost – PO Price inclusive of Non-
Recoverable tax) (This a/c is defined in Receiving options)
 These accounting entries can be viewed from Receiving Transaction summary >

Transactions > Tools > View Accounting
 These entries get created in rcv_receiving_sub_ledger
2. Deliver the PO to Inventory destination
For Standard Costing organization

- Material Valuation a/c DR @ Std Cost
- Receiving Inspection a/c CR @ Estimated Landed Cost
- Purchase Price Variance a/c DR @ difference between Std Cost and Estimated Landed Cost
For Average Costing organization

– Material Valuation a/c DR @ Estimated Landed Cost
- Receiving Inspection a/c CR @ Estimated Landed Cost
 These entries can be viewed from Inventory > Material Transactions > Distributions
 These entries get created in mtl_transaction_accounts
3. Invoice validated and actual landed cost calculated
Once the Actual Landed Cost is calculated, LCM will populate this information in
cst_lc_adj_interface with rcv_transaction_id corresponding to the receipt to which the invoice
is matched. Then the adjustment entries would get created as given below on running the
Landed Cost Adjustment Processor
Landed cost Adjustment – Receiving
- Receiving Inspection a/c DR @ difference between Actual LC and Estimated LC
- Landed Cost Absorption a/c CR @ difference between Actual LC and Estimated LC
Landed cost Adjustment – Delivery (Standard Costing)

- Receiving Inspection a/c CR @ difference between Actual LC and Estimated LC
- Purchase Price Variance a/c DR @ difference between Actual LC and Estimated LC
Landed cost Adjustment – Delivery (Average Costing)

- Receiving Inspection a/c CR @ difference between Actual LC and Estimated LC
- Landed Cost Absorption a/c DR @ difference between Actual LC and Estimated LC
Average Cost Update (Average Costing)

- Material Valuation a/c DR @ difference between Actual LC and Estimated LC
If this Average cost update happens for updating the item cost with the difference between
Actual and Estimated landed cost for an item which has 0 or negative on-hand quantity, then
the accounting entries would be as follows:
- Material Valuation a/c DR @ 0

- Landed Cost Variance a/c DR @ difference between Actual LC and Estimated LC (This a/c
is defined inventory > Set up > Organization > Parameters)
 The link between the Receiving transaction and Average Cost update is done through
txn_source_line_id. Rcv_transaction_id of deliver transaction is stamped as
txn_source_line_id in mtl_material_transactions for the LCM adjustment transaction
which has the transaction type as Average Cost Update.
4. Create accounting for item invoice
- AP Accrual a/c DR @ PO Price

- Tax a/c DR @ tax rate
- Liability a/c CR @ Invoice Price including tax
- LCM:Invoice Price Variance a/c DR @ difference between PO Price and Invoice Price
(This IPV a/c is defined in Receiving options)
- LCM:Exchange Rate Variance a/c DR @ difference between receipt exchange rate and
Invoice exchange rate (This ERV a/c is defined in Receiving options)
5. Create accounting for charge invoice
- Default Charge a/c DR @ invoice price (This charge a/c is defined in Receiving options)
- Liability a/c CR @ invoice price
6. Perform Return transaction or negative correction after invoice is accounted and actual
landed cost is calculated
Return to Vendor /Negative Correction

- Receiving Inspection a/c CR @ Actual Landed Cost
- AP Accrual a/c DR @ PO Price + Non-Recoverable Tax
- Landed Cost Absorption a/c DR (Actual Landed Cost – {PO Price+Non-Recoverable Tax})
Return to Receiving/Negative Correction (Standard Costing)

- Material Valuation a/c CR @ Std Cost
- Receiving Inspection a/c DR @ Actual Landed Cost
- Purchase Price Variance a/c CR @ difference between Std cost and Actual Landed Cost
Return to Receiving/Negative Correction (Average Costing)

- Material Valuation a/c CR @ Actual Landed Cost
- Receiving Inspection a/c DR @ Actual Landed Cost
7. Raise a Debit Note
- AP Accrual a/c CR @ PO Price

- Tax CR @ tax rate
- Liability a/c DR @ Invoice Price including tax
- Invoice Price Variance a/c CR @ difference between PO price and Invoice Price
Note:
1. Estimated and Actual Landed Cost are always inclusive of PO price and Non-Recoverable
tax.
2. Landed Cost Absorption account need not be having zero balance at the end of this procure
to pay cycle in LCM enabled organization. It will be zero only if default charge a/c defined in
Receiving options is same as the landed cost absorption a/c and Actual landed cost is same as
the Estimated landed cost.
3. Accounting entries for Expense POs and Shopfloor destination POs has no impact as
Landed Cost Management is not applicable for Purchase Orders with Expense and Shopfloor
destination.
4. Landed Cost Management has no impact on the Encumbrance Accounting as the PO gets
reserved at PO price and it gets reversed at PO price only even though the actual charge
account get hit at landed cost.
5. Retroactive Pricing is not supported in LCM enabled organization and hence retroactive
price update program will not create the retroactive price adjustment entries in Receiving
subledger for the receiving transactions created.
Posted in Accounts Payables, General Ledger, Landed Cost, Oracle E-Business Applications,
Oracle Financial, Oracle Inventory, Oracle Purchasing | Leave a Comment »
Release 12.1.1 New Features in Oracle Landed

Cost Management
Overview
Oracle’s Landed Cost Management application is a new product released on EBS r.12.1.
Landed Cost Management enables organizations to gain insight into all of the “real”costs
associated with acquiring products including broker, terminal, insurance, and transportation
fees as well as duties and taxes. These costs are initially estimated and updated with actual
amounts as they become known allocating them to shipments, orders, and products. Cost
methods and inventory valuations are accurately maintained providing better visibility into an
individual product’s profitability and an organization’s outstanding exposure. This data
provides better insight for product forecasting and budgeting and provides clear evidence of
the detailed accumulation of expenses for regulatory requirements and reporting.
Features
1. Charge Management
Many of the charges that apply to landed costs can be complicated in their application,
maintenance, and ongoing tracking. These charges are received in a variety of formats at
different points during a fulfillment process. These points include product creation, sourcing,
order creation, shipping, receiving, and invoicing. Organizing and tracking these charges as
soon as they are incurred is key to a company fully understanding their outstanding liabilities.
Oracle Landed Cost Management collects an unlimited number of estimated charges and
allows users to configure how charges should be applied to a shipment line, a group of lines
within a shipment, or an entire shipment. It applies these charges based on weight, volume,
quantity, or the value of the items being traded. These charges can be categorized by different
cost factors, which will ultimately govern the behavior in how they are included in a total
landed cost calculation. Once actual amounts are received, Charge Management records the
new value for comparison with the earlier estimates and sends adjustments to backoffice
applications.
2. Advanced Pricing for Charge Templates

When organizations try to obtain estimates for a particular charge, they can typically identify
standard business rules for when these charges should apply. Oracle’s Landed Cost
Management application allows users to enter lists of estimated charges and conditions as to
when these charges should apply by using Advanced Pricing. This enables a template of
charges to automatically be applied to a receipt. It removes the need for a charge reference
spreadsheet or document often found in organizations dealing with complex supply chains
and minimizes error prone steps of manually entering charges during a transaction. Once
these estimated costs are applied by Advanced Pricing, users have the ability to verify and
update them via Oracle Landed
Cost Management’s Charge Management functionality. Ultimately, Oracle Landed Cost
Management uses these components to calculate the estimated landed cost.
3. Landed Cost Calculation

Most organizations struggle to find the “real” costs required to take a product to market, to
source a product overseas, or to do business with a particular vendor or customer.
Knowing the total actual landed cost of goods provides powerful insight in today’s
competitive global markets. When companies use this landed cost information strategically,
they can control overall product margin and optimize profitability. Some companies can only
estimate this landed cost at best, while others can calculate estimated or actual costs. Often
times, this is done in a semi-automated fashion in different places, making it difficult to
compare estimates with actuals.
The Oracle Landed Cost Management engine provides the ability to calculate the estimated
landed cost based on charges manually assigned and automatically allocated based on the
configuration in the charge management repository. It recalculates applicable taxes and can
be configured to exclude recoverable tax amounts. It also calculates the actual landed costs
by prorating the actual invoices and proportional taxes to obtain the variances between what
was estimated and what was charged. Cost components summed in the calculation remain
stored at the most granular level for detailed tracking of charge amounts while variances are
updated to the appropriate accounts.
4. Product Cost Dashboard

Financial flows do not mirror physical supply chain transactional flows. Landed cost
management helps to link these two flows together and provides visibility and traceability
from one to the other. With Landed Cost Management’s dashboard pages, companies can see
the real time accrual updates for a particular receipt or shipment.
They can validate the accuracy of a supplier’s estimate by comparing estimated and actual
costs and can see the percentage of a particular cost component for a particular item.
Additionally, users can make use of all the flexible Oracle and E-Business Suite tools in order
to meet their own customized reporting requirements.
5. Tax Recovery
Many countries impose high tariffs on items as they pass through the supply chain. This can
sometimes reach into the double digits. As a result, tax recoverability becomes extremely
important when organizations are making sourcing decisions and automating inbound flows.
Oracle Landed Cost Management factors in tax recoverable amounts in the landed cost
calculation, so that estimated and actual landed cost calculations do not overstate the true tax
costs.
6. Integration to EBS Supply Chain and Backoffice

Almost all organizations struggle to provide their backoffice systems visibility into estimates
of accrued liabilities that are then updated with actual amounts when they become known.
This is particularly the case when organizations have a large portion of their trade done
across borders or have a complex supply chain. Oracle’s Landed Cost Management is
integrated with Oracle E-Business Suite’s financial and supply chain applications to provide
this visibility and make implementation straightforward. Oracle Landed Cost Management
provides the estimated landed cost to E-Business Suite Inventory Receiving, which then
automatically forwards it on to E-Business Suite Cost Management module. Once actual
costs are obtained and shared with Accounts Payable, variances are effectively communicated
to E-Business Suite Cost Management module.
6.1. Procurement Integration
Procurement Information is often the baseline information used to itemize expected shipment
or receiving lines on which extended supply chain charges will be applied. Landed Cost
Management provides visibility into E-Business Suite Procurement data in order to build
expected shipments for charge application and subsequent landed cost estimation
calculations. When manually entering expected shipments the reference information provided
by Procurement saves time and decreases errors that might occur without automated access to
this information. Once available in Landed Cost Management, expected values received from
procurement such as quantity and price can be edited for estimated cost calculation purposes.
Furthermore, all the necessary data is provided to help arrive at an accurate three way match
once an
invoice for a PO line or charge is entered into Accounts Payable.
6.2. Receiving Integration

It is difficult to gain insight into charges associated with the acquisition of items through an
extended supply chain. Often, organizations are not aware of them until an invoice is
received. Companies need better visibility into these charges. Additionally, many regions
require that all expenses be accounted for at an
item/product level upon receipt. In order to comply with these requirements and provide an
accurate calculation of product related expenses, these extended costs need to be estimated
and applied to an item at the time of receipt.
Oracle’s Landed Cost Management’s integration with EBS Inventory’s Receiving module
enables Receiving to view LCM’s estimated shipments and receive against them. It further
calls LCM for a total cost estimation calculation for all receipts whether they originate in
LCM or in Receiving itself. These estimations are then forwarded to E-Business Suite Cost
Management module in order to update inventory valuations and accounting.
6.3. Cost Management Integration

When organizations are able to estimate landed costs, they often do not communicate those
estimates to their backoffice system. This is because they lack an automated method to
update these estimates with actual values once they are received. This prevents them from
fully utilizing the estimated information in their reporting and decision making processes.
After actual values are received and the true landed cost is calculated in Landed Cost
Management, any variances between the actual and the estimate are determined.
Those variances are updated to E-Business Suite Cost Management module which in turn
updates the proper accounts and valuation.
6.4. Accounts Payable Integration

Few Accounts Payable applications provide a mechanism to apply and match an unlimited
number of charges to a particular procured item line or group of lines.
This means that accurate actual landed cost calculations might be difficult to automatically
calculate. Additionally, this prevents tying an actual charge back to any record of an earlier
estimated landed cost calculation.
Oracle Accounts Payable allows for unlimited numbers of charges to be entered and applied
to procured line items and allows line items to be applied and associate to recovered line
items. This information is forwarded to Landed Cost Management which in turn calculates
the Actual Landed Cost. These values are compared with earlier estimates to determine if a
variance should be communicated to Costing and ultimately to the General Ledger.
Posted in Accounts Payables, Landed Cost, Oracle E-Business Applications, Oracle
Financial, Oracle Inventory, Oracle Purchasing | Leave a Comment »
Part III : Impact of SLA on Journal Import in General

Ledger – Setups related to Journal Import
Part III : Impact of SLA on Journal Import in General Ledger – Setups related to Journal
Import
1. Journal Import can be run in Summary or Detail mode. This can be set for each
application, as per the requirement. By default this is set to “Summarize by GL Period”, but
can be changed as per the requirement. The setup can be changed from:
• General Ledger responsibility
• Financials -> Accounting Setup Manager -> Accounting Setups
• Query for the Ledger being used
• Update Accounting Options
• Select update for “Subledger Accounting Options”
• “Update Accounting Options” for the Application
• Here there is an option “General Ledger Journal Entry Summarization”, which can be set
to following values:
i. Summarize by GL Date (Journal Import will create summary journals based
on Acccounting Date)
ii. No Summarization (Journal Import will create journals in Detail mode)
iii. Summarize by GL Period (Journal Import will create summary journals based on Period
to which the Accounting Date falls)
Thus the option “General Ledger Journal Entry Summarization” will determine if the Import
for the application is being done in Detail or Summary mode.
2. Prior to Release 12, it was needed that the Journal Import should be run in the same
language as the language, which was used to transfer data to GL_INTERFACE. Though this
is not much relevant now (the transfer and journal import are triggered together); still Journal
Import can be made independent of the language. This can be achieved by running journal
import using the Source and Category Key. Generally the columns user_je_source_name
and user_je_category_name in gl_interface, correspond to the columns
GL_JE_SOURCES.user_je_source_name
and GL_JE_CATEGORIES.user_je_category_name respectively. These values change for
the different language and thus making journal import language-dependent. However while
defining the sources (General Ledger Responsibility : Setup -> Journal -> Source), if the
option “Import Using Key” is selected, then import refers
to GL_JE_SOURCES.je_source_key and GL_JE_CATEGORIES.je_category_key. These
being the Key values are common across languages and hence journal import becomes
language independent.
3. While running Journal Import from General Ledger responsibility, the LOV of Ledger
appears provided there is data in the table GL_INTERFACE for the ledger and the Data
Access Set attached to the responsibility has either Full or Read/Write access to the Ledger.
Journal -> Import -> Run
LOV for Ledger.
In case a different Interface table is being used, the LOV will check for the data in
GL_INTERFACE_CONTROL instead of GL_INTERFACE.
4. Data Access Sets do apply to Journal Import too. To be able to import data, one should
have either Full or Read/Write Access to the ledger and all the Balancing Segment Values for
which data is populated in GL_INTERFACE.
In case one does not have access to the Ledger at all, the LOV for Ledger will not appear in
Journal -> Import -> Run screen and hence he will not be able to submit Journal Import.
If there are multiple balancing segments in the data in GL_INTERFACE, and the
responsibility has access to a few and not to others, then you will be able to run
Journal Import but it will complete in Warning and data will not be imported. Error shown in
the Journal Import Execution report would be:
EM29 : You do not have access to this ledger and account
combination.

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1 Votes

Check),
565898.1 / Patch 6836355
————————–
Cash Management is designed to manage and control cash cycle.
This allows you to enter bank statements and reconcile the statement transactions against
payments in Accounts Payable (AP), receipts in Accounts Receivable (AR), and journal
entries in General Ledger. Cash Management (CE) can also reconcile payments and receipts
from external/legacy systems. CE can also create and reconcile misc. transactions to record
bank transaction entries not entered in AP or AR.
Integration with AR and AP
—————————
You use CE to reverse, clear, reconcile receipts,and create misc transactions for bank
transactions not entered in AP or AR.
All these functions are shared and integrated with AR.
You can only use all the CE functions when AP and AR are fully installed.
You must have AR fully installed if you want to record MISC payments.
If you use CE with AP and AR, you must define the system parameters, such as banks, cash
clearing, bank charges, and bank errors in AP.
Then define system parameters, such as remittance and cash accounts for each bank, and
create misc transactions in AR. When this is done all the functionality in CE can be utilised.
Miscellaneous transactions are misc receipts and misc payments.
Misc payments are handled as negative misc receipts in AR, rather than as payments in AP.
The Allow Reconciliation Accounting option must be enabled if you want to use a cash
clearing account and create accounting entries for bank charges, errors, gain/losses. If not
enabled, you can still reconcile payments in CE, but accounting entries will not be created in
GL.
Cash Management System Parameters
———————————-
Select Set of Books and enter a date for the begin date.
Then check the following if required:
· Check Add Lines to Automatic Statements checkbox if you want to add lines to
automatically loaded bank statements.
· Check Show Cleared Transactions checkbox if you want CE to display the cleared
transactions that are available for reconciliation.
· Check Use Reconciliation Open Interface checkbox if you plan to use the
open.
interface to reconcile bank statement lines to transactions in external systems.
The following steps show you how to set up CE system parameters using the system
parameters setup function. This is an example of a typical setup and options available:
· Select Setup. Then the System Parameters option.
· In the Set of Books field, specify the Set of Books name for CE transactions.
· In the Begin Date field, specify the date of the first bank statement entered.
· Check Show Cleared Transactions checkbox to display cleared transactions
available for reconciliation. Optional.
· Check Add Lines to Automatic Statements checkbox to add lines to automatically loaded
bank statements. Optional.
· Check Use Reconciliation Open Interface checkbox to reconcile transactions in external

systems. Optional .
· In the General region*, specify a tax code that applies to misc payments in the Liability
field.
· Specify a tax code that applies to misc receipts in the Asset field.
· The Receivable Activity field is the default for the Misc Receipts window and the default
receivable activity to which Auto-Reconciliation charges differences between the amount
cleared and the original amount for remittance batches.
· In the Float Handling field, select Ignore if you want to reconcile statement lines with the
effective dates later than the current date.
· Access the Automatic Reconciliation* region from the drop down list.
The Automatic Reconciliation region screen appears. You can accept the defaults if you wish.
· Then commit..
* The General parameters options are also used in the manual reconciliation windows and
can be overridden.
* The Automatic reconciliation region has no effect when doing manual reconciliation.
Defining Bank Transaction Codes
——————————–
Auto-Reconciliation being used to load electronic bank statements.
CE requires transaction codes to be defined that are used by the bank.
This allows CE to identify the different transaction types on the statement, such as receipts,
and payments. i.e:
· Misc Receipt
· Misc Payment
· NSF
· Payment
· Receipt
· Rejected
· Stopped
If you use a transaction code for both misc transactions and correcting statement errors, you
can specify the sequence of matching.
Choose from the LOV to indicate how to use the bank transaction code.
· Misc
· Stmt
· Misc, Stmt
· Stmt, Misc
The following shows you how to define bank account transaction codes :
· Select Setup. Then: Bank Transaction Codes.
· Select the bank you require. Click the OK button.
· The Bank Transaction Codes window appears. In Type field select a transaction type for the
transaction code you are defining.
· In Code Field, specify the code used by the bank. I.e. 100.
· In the Description field, specify a description for the transaction code you are defining. i.e.
payment.
· Enter start and end dates.
· In the Float Days field, enter the number of days that CE will add to the statement date to
create an effective date for the transactions.
· Optional, select a transaction source for payments and receipts transactions.
· Use the Matching Against field to determine the order of matching and the type of
transactions to match if the transaction Type is Misc Receipt or Misc Payment.
· In the Correction Method field, select the correction method your bank uses when
correcting errors.
· Select the Create checkbox if you want to create misc transactions for any payments or
receipts reported on the bank statement when no transaction code is provided. If you select
the Create checkbox, specify the activity type and the payment method you want to assign to
misc transactions.
· Commit.
Defining Automatic Reconciliation Parameters
——————————————–
The automatic reconciliation parameters controls several aspects of Auto-Reconciliation,

this allows reconciliation of bank statements automatically. These options have no effect on
manual reconciliations.
The tolerances region includes a variance amount and a variance percent,they are used by
Auto-Reconciliation to match bank statement lines from AR and AP. If a transaction amount
falls within ranges defined in the tolerance region, plus or minus the reconciliation
tolerance, a match is made.
The Tolerance Differences – AP field controls whether the Auto-Reconciliation posts
differences to bank charges or errors account.
The Tolerance Differences – Foreign field controls how Auto-Reconciliation handles bank
errors or differences that are caused by exchange rates from foreign currency transactions in
a multi-currency bank account.
There are 3 ways to treat the tolerances:
Gain/Loss: which takes the difference as exchange rate gain or loss;
Charges/Errors: which handles differences as bank charges or a bank errors, and No Action:
in this case no reconciliation will occur and the statement line will have a status of error.
Automatic document sequence numbers. CE creates the document number for the statement
automatically. You can’t change an automatically assigned document number.
Loading Bank Statement Info
—————————
To load bank statement information, including header information and line information, into
CE select the Bank Statement Interface window and the Bank Statement Lines Interface
window to load the information.
The table used is called :- CE_STATEMENT_HEADERS_INT_ALL
Validating payment information. The information loaded, including the bank statement
header validation, control total validation, statement line validation, and multi-currency
validation, go into the bank statement open interface tables.
If the data does not pass the validations and cannot be imported into the main tables the
totals can modified, and then reconciled successfully.
The data can be imported and automatically reconciled at the same time.
It is just a case of navigating to the SRS window and submit a request for the Bank
Statements Import and Auto-Reconciliation program.
The system generates the result and prints an Auto-Reconciliation Execution Report.
The following steps show you how to import a bank statement without Auto-Reconciliation in
CE.
· Click the Bank Statement Import* option to request the report in SRS.
Click the OK button.

· The Parameters window appears. Specify the bank account number for the statement you
want to import in the Bank Account Number field. Specify the range of statement numbers in
the Statement Number From and To fields.
Enter dates for the Statement Date From and Statement Date To fields.
In the GL Date field, enter the GL date. Click the OK button.
* If Auto Reconciliation is required then select the Bank Statements Import and Auto-
Reconciliation program
Interface errors occur for various reasons.
There are 3 common causes of bank statement interface errors:
Erroneous information in setup of CE, errors in bank transmission file, and more commonly
problems with the SQL* Loader file.
Reviewing Bank Statement Errors
——————————–
The following steps show you how to review bank statement interface errors.
· Select Bank Reconciliation. Click the Bank Statement Interface option.
· Query the bank statement with the interface errors you want to review.
The applicable fields populate according to the account number you have specified. Click the
Lines button to see the statement line detail.
· The Bank Statement Interface Lines window appears. Select the line with the error(s)
review. Click the Errors button.
· The Bank Statement Interface Line Errors window appears, displaying the error message
for the line selected. When finished reviewing the error messages, click the Done button.
Modifying the Statement Interface Table
—————————————-
The following explains how to modify the bank statement interface tables.
· Select Bank Statement. Click Bank Statement Interface. Query the bank statement that
requires modification. Edit the bank statement and header transaction information as
necessary, including the control balances, in the Opening field.
· Edit the receipts in the Receipts field. Edit the payments in the Payments field. Edit the
closing number in the Closing field. Click the Lines button.
· Bank Statement Interface Lines window appears. Edit the bank statement transaction
information. CE allows the editing of the line number, transaction code, transaction number,
and date.
· In the Amounts region, CE allows the editing of the transaction amount, bank charges, and
original amount.
· In the Exchange region, CE allows the editing of the exchange rate information, including
currency code, exchange rate type, date, and exchange rate.
· In the Reference region, CE allows the editing of the agent (customer or supplier), invoice
number, and the agent bank account associated with each line.
· In the Description region, CE allows the editing of the effective date and description for
each line.
· Commit.
Auto-Reconciliation and Manual Reconciliation
———————————————-
The Auto Reconciliation program fully matches AP AR GL and MISC transactions against
bank statement lines if the transactions meet the following criteria:
· AR Remittance batches such as direct debit batches, the remittance batch deposit number or
receipt batch name matches statement line transaction number, and the amount is within the
tolerance.
· MISC Reversal corrections, the statement line has the same transaction number, same
amount, and opposite transaction type (for example, misc receipt and misc payment)
· MISC Adjustment corrections, the statement line has the same transaction number, and has
a transaction type of payment, receipt, misc payment, or misc receipt, and the net amount is
within tolerance.
· AR Detail remittance transactions, NSF, and rejected transactions, the matching sequence
is the same; match is against the invoice number and customer bank account, and then just
the invoice number, and finally the
receipt number; the amount is within the tolerance.
· AR NSF or rejected transactions, the receipt must first be reversed in AR
· MISC Receipt number matches the statement line transaction number
· AR GL AP MISC Transaction currency is the same as the bank statement line currency
· AP Payment batches, such as EFT batches, the reference or payment batch name matches
the statement line transaction number, and the amount is within tolerance.
· AP Detail payment transactions and stopped transactions, the matching sequence is the
same; the program tries to match against the invoice number and supplier bank account,
then just the invoice number, and finally the payment number; the amount is within the
tolerance
· AP For stopped transactions, the payment must first be stopped or voided.
· GL Journal line is posted
· GL Journal line accounting flexfield matches the bank account Asset Accounting flexfield
· GL Journal line description matches the statement line transaction number
*Bank statements can be entered Manually see the CE manuals.
*Bank statements can also be updated even if they are reconciled by
using the review button The Auto-Reconciliation program does four validations, bank
statement header validation, control total validation, statement line validation, and multi-
currency validation. The program requires the imported bank statement header information
has the bank account defined as an internal bank account. If a currency code is in the
header, it must be the same as the currency code defined for the bank account in AP or AR.
There is an Auto-Reconciliation execution report.
It is printed automatically when the Auto-Reconciliation program is ran, and can be

reviewed for all import validation errors for a statement or a specific statement line.
*After reconciling a payment, CE will generate journal entries as debit cash clearing
accounts and credit cash accounts.
Bank statement lines must include an exchange rate when the transaction currency is foreign.
Depending on the bank account currency, the Auto Reconciliation program handles
statement line matching to transactions differently. If the bank account currency is foreign,
the bank statement line amount must match the transaction line amount within the tolerance
limit for automatic validation to be successful. If the difference exceeds the tolerance
amount, CE displays an error message and manual reconciliation must take place.
The tolerance validation is done in two stages, firstly it converts the tolerance into the bank
account currency using the bank statement exchange rate, and it verifies the difference
between the statement line amount and the transaction amount is within the tolerance.
The second stage uses the original tolerance amount to compare the bank statement line
amount with the transaction amount (functional currency), verifying again that the difference
is within the tolerance.
The Auto Reconciliation program references the tolerances that have been defined for
example.
The tolerances defined are: amount = GBP £70 and percent = 10%.
Run the Auto Reconciliation program, and it encounters a statement line with an amount of
GBP £1,000. The program firstly calculates the tolerance percentage amount (10% of GBP
£1,000 = GBP £100). The program selects the smallest of the amounts and the defined
tolerance amount which is GBP £70.
The program then matches the statement line against a payment or receipt transaction in the
range GBP £930 to GBP £1,070, which is GBP £1,000 plus or minus GBP £70.
Regardless of bank account and transaction currency, the tolerance amount in the system
parameters is always in the functional currency.
NOTE : Reconciled transactions can also be unreconciled as can statement lines.
Control Total Validation
————————–
Some banks supply statements that have control totals in the statement or account header for
error checking . The bank statement header interface table has 7 control total columns. If
you enter values in any of these, the Auto-Reconciliation uses the values for validation,
except for CONTROL_BEGIN_BALANCE, which is the statement opening balance.
Other control total validations are:
· CONTROL_END_BALANCE the statement closing balance.
· CONTROL_TOTAL_DR the payment control total in the statement header this must match
the total payment amount on the statement lines.
· CONTROL_TOTAL_CR the receipt control total in the statement header must match the
total receipt amount on the statement lines.
· CONTROL_DR_LINE_COUNT the number of payment lines in the statement must match

the payment line control total in the statement header.
· CONTROL_CR_LINE_COUNT the number of receipt lines in the statement must match the
receipt line control total in the statement header
· CONTROL_LINE_COUNT the number of lines in the statement must match the line control
total in the statement header
Statement Line Validation
————————-
Auto-Reconciliation needs the imported bank statement line to pass these checks.
The currency code on the statement line must be defined in the system.
The bank transactions code must be defined.

The exchange rate type must be of a valid type defined.
The amount must be entered for the statement.
Multi-Currency Validation
————————-
Auto-Reconciliation checks each statement line for valid currency, and exchange rate type.
When a matching transaction is found during reconciliation several checks are made.
For transactions, the bank statement line currency must be the same as the transaction
currency (the bank statement currency can differ).
For batches, all transactions in the batch must use the same currency and statement line
currency as the batch currency.
For both transactions and batches, if User exchange rates, each transaction must include the
exchange rate, and the rate type must be User.
If it is for predefined rates, such as Corporate or Spot, each transaction must include the rate
type and exchange rate date.
Incorrect CE setup information can include wrong transaction codes, currency, or bank
account information. The solution is update CE setup information and then run the Auto-
Reconciliation Import program again.
For bank transmission errors, the solution is to obtain a correct transmission file from the
bank or alternatively update the statement using the Bank Statement Interface window. For
SQL Loader file problems, modify Loader file and then rerun the Auto-Reconciliation Import
program.
In CE you can also create AR transactions and AP transactions and you can also reverse
these transactions.
When NSF or rejected receipts appear you can handle them manually by reversing the
receipt manually and then reconciling the reversed receipt.
When a stopped or voided payment is done then void the payment in AP to mark the supplier
invoice as unpaid then reconcile the stopped/voided payment statement line to the voided
payment
Automatic Clearing
——————-
You can use CE or Automatic Clearing to clear receipts, as well as payments using the
future-dated payment method. If you use Automatic Clearing within AR, you can choose to
clear remitted receipts after they have matured.
If you use Automatic Clearing to clear payments and receipts rather than using CE, the GL
balance may not match CE reports.
In AP, a future dated payment instructs the bank to disburse funds to the supplier’s bank on
specific dates. If you use the AP Automatic Clearing for Future Payments utility to clear
future-dated payments
made with the future-dated payment method, AP performs the accounting for cash clearing.
You can match payments cleared in this manner with bank statement lines.
CE and Multi-Org
—————-
For each operating unit you must set up a CE responsibility very similar to what is setup in
AP.
Each responsibility is tied to a SOB and an operating unit.
FAQ
—–
Q. How do we treat a BAC’s payment that has been reconciled and then voided
AP three payments: £10,£20, £30
Bank statement1 £60
It has been reconciled in full.
Now need to void an amount of £10 therefore unreconcile £60 and reconcile £50 leaving
£10 as unreconciled/available. Void payment of 10 ok.
Bank statement states the -£10 amount for the voided payment they have this as stopped and
reconcile the voided amount in AP to the -£10.
Problem is cannot have the original unreconciled as stopped as it is part of the £60 how can
this be reconciled ? There are lines on two statements so cannot contra each other?
A. The correct way this should have been dealt with in this situation is:
The voided element of -£10 on the bank statement should in fact be treated as an misc
receipt. Then create a no tax invoice for £10 in AR and match this to the receipt of £10. The
distribution can go to e.g. pay on a/c or suspense. Then in AP create an invoice for £10 use
the same distribution as used for the AR invoice so they nett off to each other. Pay the invoice
in AP as you would normally.
In this case as they voided the payment create a dummy statement.

It can then be reconciled using the stopped functionality.
Q Why are there no entries going to GL?
A Check they are using reconcilition accounting . Accounting entries below With
Reconcilitaion Accounting enabled:-
One set of entries for the unreconciled transaction
DR liability
CR cash clearing
One set of entries for the reconciled transactions
DR cash clearing
CR cash
If Allow Reconciliation is not enabled, only one entry is created:
DR Accounts Payable
CR cash
Q Unable to select available Journal Entries to reconcile a bank Statement.
A You must define a bank account with default GL account codes.
One of which must be your cash account.
CE will only look for journals with the GL account code that matches
the cash account of the b
ned a security rule and assigned it to my responsibilty, but is still does not
work, why?
responsibility.
limited

the User ID?
parameters.
other forms,

possible?
entry.

Rule issue?
with
secured’.
This entry was posted on January 2, 2011 at 10:36 PM and is filed under General Ledger,
Oracle E-Business Applications, Oracle Financial. You can follow any responses to this entry
through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. I have defined a security rule and assigned it to my responsibilty, but is still
does not work, why?
responsibility.
limited

the User ID?
parameters.
other forms,
possible?
entry.

Rule issue?

with
secured’.

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Below is a list of 25 Important questions that is asked in almost every financials technical

Ans: Flex field is used to capture information of your Organisations.

Qns: Difference between KFF and DFF.

Stored in segment Column

Is used to capture additional information

Stored in attribute Column

Qns: How many KFF are in GL. AP , AR.

AR Sales tax Location FF

Qns: What is symbol of DFF in the Forms?

Ans: Square Bracket [ ].

Qns: What is structure of KFF in the Accounting Flexfields.

Qns: How many segments are in AFF.

Ans: max 30 segments and min two.

Qns: What are flexfield Qualifiers.

a) Balancing Segment Qualifier.

b) Cost Center segment Qualifier.

c) Natural Account Segment Qualifier.

d) Intercompany Segment Qualifier.

Qns: What is Dynamic Insertions?

Ans: u can create Code Combinations at run time.

Qns: In which table Code Cominations id is stored.

Qns: In which table flex values are stored.

Ans: 1. fnd_ flex_Values

Ans : Set of Books is a Financial Reporting entity which Consist of three C.

Set of Books is stored in GL_SETS_OF_BOOKS

Qns: What are different types of Currency.

Ans: Functional Currency

Qns: What are different types of Calendars .

Ans: Different types of Calendars are listed below

Qns: How will you attach set of Books to the Responsibility?

Ans: through Profile. GL SETS OF Books Name.

Qns: What is Profile and what are different types of Profiles.

Qns: What are different Profiles Level available in oracle apps.

Ans: Below are the Profiles Level available in oracle apps

Qns: Write Name of some Profile options.

1. GL Sets of Books Name

3. MO:Operating unit (multi org).

Qns: What is cycle of GL.?

Ans: In simple and layman words-

1. Open the period

2. Create Journal Enteries

3. Post the Journals.

Qns: In Which tables Journal entries created.

Ans: Important tables are-

Qns: After Posting data goes in which tables.

Ans: GL_BALANCES.( Column Period_net_cr, period_net_dr).

Qns: What are Important tables in GL.

Ans: Supplier information can be found in following tables

Qns: What is difference org_id and Organization_id.

Mahmoud Maher on January 1, 2011

In order to see the reporting sequences for subledger journals in SLA:

- Log in with your SLA responsibility;

- Check your setup according to ‘Oracle Subledger Accounting Implementation Guide

- Check that the transactions are posted in GL;

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R12 What are the Differences Between Accounting

Note: for more details

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A Case Study on R12 SLA

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Account Generator in Oracle Assets