Slide 1
INDEXKey Flex Fields -------------------------------000Flex
Field Qualifiers-------------------------000Segment
Qualifiers--------------------------000Compile
Structure---------------------------0004
Cs---------------------------------------------000Value
sets--------------------------------------000Currency---------------------------------------000Calendar---------------------------------------000Primary
Ledger-------------------------------000Create
Responsibility-----------------------000Open / Close
Periods-----------------------000Journal
Source-------------------------------000Journal
Category----------------------------000Enter
Journals-------------------------------000Post Journal
16. Reverse Journal 17. Suspense Journal 18. Recurring
Journal19. Foreign Currency Journal20. Auto post 21. Auto
Reversal
R12 GL Setup12R12 GL Setup3R12 GL SetupKey Flex FieldsFLEX FIELD
QUALIFIERS & Segment Qualifiers IN GLFlex Field Qualifiers
(Assign to Segments)
Balancing Segment FFQ2. Cost Center Segment FFQNatural Accounts
Segment FFQInter Company Segment FFQSecondary Tracking Segment
FFQManagement FFQ
Segment Qualifiers (Assign to Segment values)Allow
BudgetingAllow PostingAccount type (Assets / Liability / Expenses /
Revenue / Ownership)Third party controlReconcile
4R12 GL SetupAssignment of FFQ to SegmentsCompanyBalancing
Segment FFQInter company Segment FFQ
DepartmentCost Center Segment
AccountsNatural Accounts Segment FFQ
Note:
One FFQ we can use only one time.One segment we can assign to
more than one FFQ.We can create maximum 30 segments apart from
General Ledger Segment (Total 31).5R12 GL SetupCompile
StructureSegment separator is used to separate the segments in the
code combination. (Dash, Period, Pipe and Custom).
Allow Dynamic Inserts: If we enable Allow Dynamic inserts, then
we are able to enter the all possible code combinations at the time
of transaction entry. If we want to know how many code combinations
in our structure, multiply the number of values across the
segments.If we disable allow dynamic inserts, we can not enter all
possible code combinations at the time of transaction entry.
Enable Freeze Flex Field Definition and click on Compile
button.The structure information will get stored in a tabular form
GL_Code_Combinations_KFV. R12 GL Setup6Primary Ledger (Set of
Books) 4 Cs 4 Cs
Chart of Accounts (Structure, Segments & Segment
values)CurrencyCalendarAccounting Convention Method (Accrual /
Cash)
Pre requisites for Chart of Accounts
Value SetStructure and SegmentsSegment Values
Value Set:
Value set is Set of rules or properties which are going to
enforce or attach to segments.Upon enforcing or attaching value set
to the Segment, your segment will behave or act according to the
value set.
7R12 GL SetupContents of Value SetList TypeSecurity TypeFormat
typeValidation Type3 Types3 Types7 Types8 Types1. List of Values1.
No Security1. Char1. Dependent2. Long List of Values2.
Hierarchical2. Date2. Independent3. Pop List3. Non Hierarchical 3.
Date Time3. None4. Number4. Pair5. Standard date5. Special6.
Standard date time6. Table7. Time7. Translatable Independent8.
Translatable DependentR12 GL Setup8Validation Types in Value
SetIndependent: If validation type is independent, we can define
values for the value set and we can use at the time of transaction
time.
Dependent: If validation type is dependent, then we cannot
define values for value set. Dependent values are always depending
on the independent value set.
None: If validation type is None, we can not define values for
the value set. User can enter desire value at the time of
transactions entry.
Pair & Special: Used in the programs to add additional pop
up window for parameters.
Table: If validation type is table, then we can not define
values but we can use values from tables.
Translate dependent & Independent: We use to translate the
segment values into desire language.R12 GL Setup9R12 GL
Setup10CalendarR12 GL Setup11Period TypePeriod types are used in
defining Accounting Calendar.
Each ledger has an associated period type.
When you assign a calendar to a ledger using Accounting Setup
Manager, the ledger only accesses the periods with the appropriate
period type.
You can assign up to 366 accounting periods per fiscal year for
any period type, and maintain actual balances for those periods.
For example, you could define a Week period type and specify 52
periods per year.
However, for budgets you can only use the first 60 periods.
General ledger have 3 standard period types:1. Month2. Quarter3.
Year
R12 GL Setup12Calendar StatusCalendar Status:
OpenClosedPermanently ClosedFuture EntryNever Opened
Year Types
1. Calendar2. FiscalR12 GL Setup13Define Accounting
CalendarAccounting Calendar Determines the accounting periods for
General ledger application where we enter transactions.
Step: 1Define Period TypeNavigation:Setup Financials Calendars
Type
Step:2Define Accounting CalendarNavigation:Setup Financials
Calendars Accounting
Enter Name and Description your accounting CalendarEnter the
periods as per period types you chooseChoose period typeEnter from
To datesEnable adjusting Check box for Adjusting periodValidate
your current calendar
R12 GL Setup14Mandatory Accounts for Set of Books1. Retained
Earnings Account (Ownership)2. Translation Adjustment Account
(Expenses)3. Suspense Account (Assets / Liabilities)4. Rounding
Difference Account (Expenses)5. Reserve for Encumbrance
(Ownership)6. Net Income (Expenses / revenue)
Note:
From the above Retained Earnings account is mandatory to create
primary ledger. Remaining 5 accounts are optionally mandatory based
on the requirement.R12 GL Setup15Define Primary LedgerLedger is a
reporting entity in which we will record the all our organization
transactions and also it will determine Chart of accounts,
Currency, Calendar and Accounting Convention method.
Step:1Define Retained Earnings Account.
(Ownership)Navigation:Setup Financials Flex Fields Key Values
Step:2Define LedgerNavigation:Setup Financials Accounting Setup
Manager Accounting Setup R12 GL Setup16R12 GL Setup17Click on
Create Accounting Setup tab
Enter your desired Primary Ledger NameChoose Chart of Accounts,
Calendar, currency and Sub ledger accounting method
Click on Update accounting options
Update ledger options by choosing Retained earnings account,
then it will turn as with your Primary ledger name.And also update
: 1) Balance segment values 2) Reporting Currency 3) Sequencing 4)
Sub ledger accounting options
Step: 3Create Legal Entity
You will find one more legal entity as Establishment
Query your primary ledger and add legal entity to assign LE to
Ledger.
Define Primary Ledger
Now you will find 6th option as Operating unitBy following this
legal entity registration which companies are using this legal
entity registration we have to assign them.Add balancing segment
values to Legal entity level.Now system will add one more option
Inter company accountsAt this point you can remove some legal
entitiesSay CompleteNow you can not remove any information.Update
operating unit option and also inter company option.
Note: Structure created under Accounting Flex Field will added
to GL Ledger KFF. It will adding one more segment called as Ledger
as a mirror. This is used at mass allocation purpose.
R12 GL Setup18Create ResponsibilityNavigation:System
Administrator Security Responsibility Define
Menu: Menu will determine what are all the windows we are going
to having access under the particular responsibility.
2) Request Group:It will determine which are all programs will
be available under particular responsibility.
3) Profile option:Profile option is a security feature to
restrict the access into application. By using profile option we
will assign ledger to the responsibility.Navigation: System
administrator Profile System.
R12 GL Setup19Open / Close periods in GLStep: 1Open the
periodsNavigation:Setup Other Open / CloseTo change the status of
period select and change.
There are 5 types of period status:StatusEntryPostingNever
openedXXOpen ClosedXXFuture XPermanently ClosedXXR12 GL
Setup20Journal SourceIt is a Journal Component, it is used to
identify the ORIGIN of the journal.To define journal source: Setup
Journal Sources.
When we import data from legacy systems to GL we require source
names.
Importing journal Reference:To import detailed information from
summary journals we use this option.
Require Journal approval:This field is used to get the journal
approval by higher management for different journal sources.
Import using key: This is used to define whether journals will
be imported using source key or not.
Freeze Journals: To freeze the journal source, preventing users
from making changes to any un posted journals from that source, or
reversing journals for Sub ledger Accounting journal sources.R12 GL
Setup21Journal SourceEffective date Rule:1. Fail2. Leave alone3.
Roll Date
Fail: Journal Import will reject transactions when the effective
date is not a valid business day. No posting takes place.Leave
Alone: Journal import will accept all transactions regardless of
the effective date.Roll Date: Journal Import will accept the
transaction, but roll the effective date back to the nearest valid
business day within the same period. If there is no prior valid
business day within the same period, the effective date is rolled
forward.
Note: The Effective Date Rule field will not appear unless you
have average balance processing enabled for at least one
ledger.
R12 GL Setup22R12 GL Setup23
Journal categoryJournal Category determines the purpose or type
of the journal entry.When you enter a journal you specify a journal
category.
Examples:AP InvoicesAP
PaymentsAdjustmentBudgetIntercompanyInventoryPaymentsPayrollReceiptsYear
end close.
R12 GL Setup24Enter JournalsIt is used to record the day to day
business transactions. It contain Dr and Cr lines. Always debit
must be equal to credit.You can enter several types of journal
entries, including foreign currency journals, statistical journals,
and intercompany journals.
Journals can be created in two ways:1. Manual 2. Import
manual: Enter journals manually by using navigator Navigation to
enter Journal:Journals EnterManual journals can be enter in 2
ways:1. individual Journal 2. batch Journal.
R12 GL Setup25Enter JournalsJournal body contains two areas:1.
Header 2. LinesWe have 2 types of methods: 1. Standard Journal 2.
Average JournalsWe have 3 types of balances: 1. Actual 2. Budget 3.
Encumbrance.
R12 GL Setup26Post JournalNavigation:Journals PostUse Post
button available in Journal windowThrough Navigator (Journal
Post)
R12 GL Setup27Reverse JournalWe generally reverse that journal,
which got entered also got posted, where you find there is an error
in the posted entry.Once the journal is got posted it wouldnt allow
the user to make any changes.The only solution or remedy is to
reverse the journal.In order to reverse the journal, first review
the journal, use reverse button available in the journal window,
also indicate the period where the reversal entry should get
created.
Navigation:Journal EntryOnce we reverse the journal system will
create one un posted journal, showing the earlier debit balance to
credit side & earlier credit balance to debit side.Post this un
posted journal.After the journal reversal the particular account in
the journal will show the balance Zero.
Reverse is of two types:Change sign (Profile option is
required)Switch Dr/Cr.
R12 GL Setup28Suspense JournalAs per Accounting principles Debit
amount should always equal to Credit amount for the same Company
Value.If both amounts are not equal, the difference amount will go
to Suspense Account.
Setup required for Suspense Journal:
Create Suspense Account (Expenses / Revenue)Navigation:Setup
Financials Flex Fields Key Values.
Enable suspense account feature at ledger level under journal
processing tabNavigation: Setup Financials Accounting setup manager
Accounting setup
Define Suspense account RulesNavigation:Setup Accounts
Suspense
Create Journal / Review JournalNavigation: Journal Enter.
R12 GL Setup29R12 GL Setup30
Recurring JournalJournals which are repeating every accounting
period is called a recurring journal.
Recurring journals are 3 types:Standard Recurring
JournalSkeleton Recurring JournalFormula Recurring Journal
Standard Recurring Journal: Under standard recurring journal
method same accounts with the same amounts will be effected with
the each accounting period. We know account and amount already.
Skeleton Recurring Journal:Under skeleton journal method partial
information will be entered at the time of recurring journal
creation. We know the account but do not know the amount.
Formula Recurring Journal:Using formula recurring method,
journal lines amounts will be calculated by recurring journal
program based on simple formula.
R12 GL Setup31Recurring Journal SetupStep:1Define Recurring
JournalNavigation:Journals Define Recurring.
Line:1 Enter Expenses account (Debit Account) and the amount for
Standard Recurring JournalEnter only Debit account for Skeleton
recurring, do not enter amountEnter debit account & enter the
formula for the amount for Formula recurring journal
Line: 2Enter the credit accountWe can enter 9999 lines in a
recurring journal. In which 9998 lines are for debit lines and only
one line is for credit line. We call this line as offset account
line. Hence we have to enter line 2 as a offset line and key in the
number 9999 in line 2.Do not enter amount for line 2. System will
add all the debit lines amount and consider the credit amount as
offset account.If you wish to enter more credit lines, we have to
give negative sign for the lines, for example -9998, -9997 etc.
R12 GL Setup32Recurring Journal SetupStep: 2Generate the
recurring journal = Click on Generate buttonSay SubmitSchedule the
journals for recurring.Enter parameters Run program.Step: 3Ensure
Concurrent program completed NormalView Request
Step: 4Query the recurring journal and post.Journal Enter.With
the above report system will generate un posted journals in GL.,
with the source : recurring.Post the journals after review.R12 GL
Setup33Foreign Currency JournalStep: 1Define Conversion Rate
TypeNavigation:Setup Currencies Rates Types.Enter currency types
which you want conversionChoose conversion rate typeEnter the daily
rates by choosing Enter by date range
Step: 2Define foreign currency rates.Navigation:Setup Currencies
Rates Daily (USD to INR)
Step : 3Enter JournalNavigationJournal EnterChoose Currency as
foreign currencyChoose Exchange rate typePost the journal
R12 GL Setup34R12 GL Setup35
Auto PostWe Can post the journals automatically by specifying
the some criteria in Auto post criteria set.
Criteria could be : combinations of ledger or ledger set,
journal source, journal category, balance type, and period.
Once you define an Auto Post criteria set, run the Auto Post
program to select and post any journal batches that meet the
criteria defined by the criteria set.
You can also schedule the Auto Post program to run at specific
times and submission intervals.
You can submit the Auto Post program or schedule Auto Post runs
directly from the Auto Post Criteria Sets window. Alternatively,
you can use the Submit Request window.R12 GL Setup36Auto Post =
SetupStep:1Define Auto post Criteria SetNavigation:Setup Journal
Auto postName your auto post criteria setSelect Submit all
priorities in orderChoose:Ledger or ledger SetSourceCategoryBalance
typePeriod
Step: 2submit or Schedule the Program Automatic
PostingNavigation:View Request
R12 GL Setup37Auto ReversalIf you routinely generate and post
large numbers of journal reversals as part of your month end
closing and opening procedures, you can save time and reduce entry
errors by using Automatic Journal Reversal to automatically
generate and post your journal reversals.
Prerequisites for Auto Reversal:The journal balance type is
Actual.The journal category is enabled to be Auto reversed.The
journal is posted but not yet reversed.The journal reversal period
is open or future enterable.
Note: Automatic Journal Reversal reverses posted journals of the
balance type Actual. You cannot use this feature to automate budget
or encumbrance journal reversals.
R12 GL Setup38Auto Reversal = StepsStep: 1Define Reversal
CriteriaNav:Setup Journal Auto reverseName your Auto Criteria
SetChoose CategoryChoose Reversal PeriodReversal DateMethodEnable
Auto ReverseEnable Auto post reversal
Step: 2 Enter JournalJournal EnterStep: 3 Run Program Automatic
Reversal View Request.R12 GL Setup39R12 GL Setup40
Mass AllocationMass allocation means: Allocation of Revenues and
cost expenses across any cost center, department or division by
using of parent values by using simple formula.
Example: Rent paid based on square feet used.
Formula: T = A x B/C
A = Cost pool AmountB = Usage factorC = Total UsageT = Target
AccountO = Off set account
Segment types in mass allocation:Constant2. Looping3.
Summing
Mass Allocation Methods:1. Full type allocation2. Incremental
Allocation
R12 GL Setup41Mass Allocation = StepsStep: 1Create Usage factor
account and Cost pool accountNav:Setup Financials Flex fields key
Values
Step: 2Define Parent and child values for departmentsNav: Setup
Financials Flex fields key Values
Step: 3Create cost pool journal and post.Nav:Journal Enter
Step: 4Create and Post Statistical Journal Nav:Journal Enter
Step: 5Define and Generate Mass allocation formulaNav:Journals
Define Allocation
Step: 6Query mass allocation journalNav:Journals EnterR12 GL
Setup42