Professional Documents
Culture Documents
D49193GC20
Edition 2.0
May 2009
D59780
Authors
Brent Bosin, Marilyn Crawford, Shivranjini Krishnamurthy, Stacey Tucker-Blosch
Technical Contributors and Reviewers
Ivy Farren, Joe Gum, Theresa Hickman, Suzanne Miller, Vidya Nagaraj, Cynthia Prier, Pam
Rietz, Mei Siauw, Lata Sundar, Kathy Wohnoutka
This book was published using:
oracletutor
If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the United
States Government, the following notice is applicable:
Table of Contents
Summary Accounts..........................................................................................................................................6-1
Summary Accounts........................................................................................................................................6-3
Objectives ......................................................................................................................................................6-4
Overview .......................................................................................................................................................6-5
Defining Summary Accounts ........................................................................................................................6-7
Summary Account Examples ........................................................................................................................6-8
Detail Versus Summary Accounts.................................................................................................................6-10
Summary Accounts Versus Parent Values ....................................................................................................6-11
Parent Values and Rollup Groups..................................................................................................................6-12
Rollup Groups ...............................................................................................................................................6-13
Summary Account Templates........................................................................................................................6-14
Template Values ............................................................................................................................................6-15
Defining Summary Accounts ........................................................................................................................6-16
Summary Account Creation Example ...........................................................................................................6-17
Maintain Summary Accounts Overview........................................................................................................6-18
Maintaining Summary Templates..................................................................................................................6-19
Setting Budgetary Control .............................................................................................................................6-21
Incremental Add/Delete Summary Templates Program ................................................................................6-24
Planning Summary Accounts ........................................................................................................................6-26
Determine Summary Account Needs ............................................................................................................6-27
Plan Summary Account Structure .................................................................................................................6-29
Plan Values and Groups ................................................................................................................................6-35
Plan Summary Account Templates................................................................................................................6-37
Summary........................................................................................................................................................6-38
Advanced Journal Entries ..............................................................................................................................7-1
Advanced Journal Entries ..............................................................................................................................7-3
Objectives ......................................................................................................................................................7-4
About Recurring Journals ..............................................................................................................................7-5
Recurring Journal Types................................................................................................................................7-6
Creating Recurring Journals ..........................................................................................................................7-7
Copyright Oracle, 2009. All rights reserved.
Advanced Security...........................................................................................................................................8-1
Advanced Security.........................................................................................................................................8-3
Objectives ......................................................................................................................................................8-4
Data Access Security for Legal Entities and Ledgers....................................................................................8-5
Setup and Process ..........................................................................................................................................8-12
Data Access Security for Legal Entities and Ledgers Setup and Process......................................................8-13
Data Access Security for Legal Entities and Ledgers Setup - Define Data Access Set.................................8-14
Management Reporting and Security ............................................................................................................8-15
Management Reporting and Security Setup ..................................................................................................8-19
Summary........................................................................................................................................................8-20
Financial Budgeting.........................................................................................................................................9-1
Financial Budgeting.......................................................................................................................................9-3
Objectives ......................................................................................................................................................9-4
What Is a Budget?..........................................................................................................................................9-6
Copyright Oracle, 2009. All rights reserved.
Multi-Currency................................................................................................................................................10-1
Multi-Currency ..............................................................................................................................................10-3
Objectives ......................................................................................................................................................10-4
Overview of Multi-Currency .........................................................................................................................10-5
Foreign Currency Concepts ...........................................................................................................................10-6
Copyright Oracle, 2009. All rights reserved.
Consolidations..................................................................................................................................................11-1
Consolidations ...............................................................................................................................................11-3
Objectives ......................................................................................................................................................11-4
Overview of Consolidations ..........................................................................................................................11-5
Consolidation Tools.......................................................................................................................................11-6
Consolidating Multiple Companies Sharing a Single Ledger........................................................................11-7
Consolidating Multiple Companies with Multiple Ledgers...........................................................................11-8
Global Consolidation System (GCS) Features and Benefits .........................................................................11-9
Global Consolidation System (GCS) Features and Benefits (continued) ......................................................11-10
Consolidating Data in Multiple Instances......................................................................................................11-12
Interface Data Transformer (IDT) Description..............................................................................................11-14
Interface Data Transformer (IDT) Benefits ...................................................................................................11-15
Interface Data Transformer (IDT) Rule Set Description ..............................................................................11-16
Interface Data Transformer String Function Example...................................................................................11-17
Interface Data Transformer PL/SQL Function Example ...............................................................................11-18
Interface Data Transformer Lookup Table Example ....................................................................................11-19
Interface Data Transformer Steps ..................................................................................................................11-20
Other Uses for Global Consolidation System................................................................................................11-21
Consolidation Workbench .............................................................................................................................11-23
Consolidation Workbench (continued)..........................................................................................................11-24
Using the State Controller .............................................................................................................................11-26
State Controller Button Colors ......................................................................................................................11-28
Defining a Consolidation Mapping ...............................................................................................................11-29
Copyright Oracle, 2009. All rights reserved.
Mapping Rules...............................................................................................................................................11-31
Using Account Mapping Rules......................................................................................................................11-32
Using Segment Mapping Rules .....................................................................................................................11-33
Using Segment Rollup Rules.........................................................................................................................11-34
Defining a Consolidation Mapping Set .........................................................................................................11-36
Consolidation Hierarchy Viewer ...................................................................................................................11-37
Preparing Subsidiary Data .............................................................................................................................11-39
Revaluation Process.......................................................................................................................................11-41
Translation.....................................................................................................................................................11-43
Transferring Subsidiary Data to Parent Ledger .............................................................................................11-44
Consolidation Tracking and Reversals ..........................................................................................................11-46
Posting Consolidation Journal Entries...........................................................................................................11-47
Global Consolidation System Cross Instance Data Transfer .........................................................................11-48
Cross Instance Data Transfer Security...........................................................................................................11-50
Global Consolidation System Parallel Consolidation....................................................................................11-51
Creating Eliminating Entries .........................................................................................................................11-52
Formula-Based Eliminations .........................................................................................................................11-54
Automatic Intercompany Eliminations Program ...........................................................................................11-55
Defining an Elimination Set ..........................................................................................................................11-56
Source and Target Account Examples...........................................................................................................11-58
Balancing Options for Eliminations ..............................................................................................................11-59
Allow Out of Balance Journal .......................................................................................................................11-61
Balance with Net Difference .........................................................................................................................11-62
Consolidated Balances Inquiry ......................................................................................................................11-63
Performing Consolidated Balances Inquiry ..................................................................................................11-65
Running Consolidation Reports.....................................................................................................................11-66
Creating Custom Consolidation Reports .......................................................................................................11-68
Summary........................................................................................................................................................11-69
Financial Reporting.........................................................................................................................................13-1
Financial Reporting .......................................................................................................................................13-3
Objectives ......................................................................................................................................................13-4
Objectives (continued)...................................................................................................................................13-5
Reporting Options .........................................................................................................................................13-6
Online Inquiry ...............................................................................................................................................13-7
When to Use Online Inquiry..........................................................................................................................13-9
Standard Reports and Listings .......................................................................................................................13-10
When to Use Standard Reports......................................................................................................................13-11
Financial Statement Generator Features ........................................................................................................13-12
FSG Hierarchical Security.............................................................................................................................13-14
Defining Row Sets.........................................................................................................................................13-15
Define Column Sets.......................................................................................................................................13-16
When to Use FSG Reports.............................................................................................................................13-17
Using Ledger Sets in FSG Reports ................................................................................................................13-18
XML Publisher and Templates......................................................................................................................13-20
Publishing FSG Reports with XML Publisher...............................................................................................13-21
When To Use Report Manager ......................................................................................................................13-23
E-Business Intelligence .................................................................................................................................13-25
When to Use E-Business Intelligence............................................................................................................13-27
Oracle Discoverer ..........................................................................................................................................13-28
When to Use Oracle Discoverer ....................................................................................................................13-29
Preparing Your FSG Report ..........................................................................................................................13-30
Building Basic Reports..................................................................................................................................13-31
Financial Statement Generator ......................................................................................................................13-32
Steps for FSG Financial Reports ...................................................................................................................13-34
Defining Row Sets.........................................................................................................................................13-35
Assigning Accounts.......................................................................................................................................13-37
Defining Calculations in Row Sets................................................................................................................13-39
Reviewing Your Row Set Definitions ...........................................................................................................13-40
Defining Ad Hoc Reports ..............................................................................................................................13-41
Defining Column Sets ...................................................................................................................................13-42
Applying Column Set Relative Headings......................................................................................................13-44
Standard Column Sets ...................................................................................................................................13-46
Reviewing Your Column Set Definitions......................................................................................................13-47
Row Set and Column Overrides ....................................................................................................................13-48
Defining and Requesting Financial Reports ..................................................................................................13-50
Handling Rounding Problems........................................................................................................................13-52
Specifying Control Values.............................................................................................................................13-53
Defining Content Sets....................................................................................................................................13-55
Selecting Display Options .............................................................................................................................13-56
Reviewing Your Content Set Definitions ......................................................................................................13-58
Defining Row Orders.....................................................................................................................................13-59
Copyright Oracle, 2009. All rights reserved.
Revaluation Example.....................................................................................................................................12-42
Accounting Period Status ..............................................................................................................................12-43
Balance Sheet Close ......................................................................................................................................12-44
Income Statement Close ................................................................................................................................12-46
Historical Rates .............................................................................................................................................12-48
Foreign Currency Translation........................................................................................................................12-49
Overview of Consolidations ..........................................................................................................................12-50
Global Consolidation System (GCS) Features and Benefits .........................................................................12-52
Consolidating Ledgers...................................................................................................................................12-54
Reporting Options .........................................................................................................................................12-55
Performing Account Inquiry..........................................................................................................................12-56
Helpful Closing Reports ................................................................................................................................12-57
Summary........................................................................................................................................................12-59
Ranking Methods...........................................................................................................................................13-60
Order by Ranking - Display Description .......................................................................................................13-61
Order by Description - Display Description ..................................................................................................13-62
Order by Value - Display Value ....................................................................................................................13-63
Order by Value - Display Description ...........................................................................................................13-64
Reviewing Your Row Order Detail Listing Report .......................................................................................13-65
Copying Reports and Components ................................................................................................................13-66
FSG Report Prerequisites ..............................................................................................................................13-67
Enabling FSG Security ..................................................................................................................................13-68
Run FSG Reports from Standard Request Submission..................................................................................13-69
Downloading Financial Reports ....................................................................................................................13-70
Running Financial Report Sets ......................................................................................................................13-71
Different Output Options for FSG Using XML Publisher.............................................................................13-72
FSG Tips and Techniques..............................................................................................................................13-73
Setting FSG Options for General Ledger ......................................................................................................13-74
Working with the Attribute Set Window.......................................................................................................13-76
Modifying Attribute Sets ...............................................................................................................................13-77
Defining Summary Details ............................................................................................................................13-79
Summary........................................................................................................................................................13-80
Summary (continued) ....................................................................................................................................13-81
Intercompany Transactions............................................................................................................................14-47
Intercompany Home Page..............................................................................................................................14-48
Intercompany Transactions Page ...................................................................................................................14-49
Intercompany Transactions Outbound........................................................................................................14-50
Intercompany Transactions Outbound (contd) .......................................................................................14-52
Intercompany Transactions Inbound ..........................................................................................................14-54
Intercompany Transactions Workflow Notifications..................................................................................14-55
Intercompany Transactions Transfer Transactions .....................................................................................14-56
Transferring Transactions to General Ledger ................................................................................................14-57
Intercompany Transactions Transfer Transactions to Subledgers (Online Mode)......................................14-59
Intercompany Transactions Transfer Transactions to Subledgers (Batch Mode) .......................................14-61
Intercompany Transactions Reverse Transactions......................................................................................14-63
Importing Intercompany Transactions Using Open Interface........................................................................14-65
Importing Intercompany Transactions Using WebADI.................................................................................14-67
Intercompany Reporting ................................................................................................................................14-69
Intercompany Transaction Summary Report .................................................................................................14-70
Intercompany Account Details Report ..........................................................................................................14-72
Intercompany Reconciliation Report .............................................................................................................14-74
Summary........................................................................................................................................................14-75
Preface
Profile
Prerequisites
Related Publications
System release bulletins
Read-me files
Oracle Magazine
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Click the Executable button.
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Open the Master Schedule window.
Code output: debug.set (I, 300);
Directory: bin (DOS), $FMHOME (UNIX)
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Copyright Oracle, 2009. All rights reserved.
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4.
Review the Enter Journals topic that appears in the document frame of the help system
window.
Chapter 8
Advanced Security
Chapter 8 - Page 1
Advanced Security
Advanced Security
Chapter 8 - Page 2
Advanced Security
Advanced Security
Chapter 8 - Page 3
Objectives
Advanced Security
Chapter 8 - Page 4
Advanced Security
Chapter 8 - Page 5
Segment Value (Flexfield) Security Rules provide similar functionality. A key feature of
Segment Value Security is general data access restriction within a responsibility.
Data Access Sets provide more advanced configurations within a responsibility, because
you can now have tailored access rules to multiple ledgers within the same responsibility.
- For example, you can block access to one segment for one ledger and allow access for
the same segment in another ledger in the same responsibility for balancing and
management segments.
Advanced Security
Chapter 8 - Page 6
Advanced Security
Chapter 8 - Page 7
Advanced Security
Chapter 8 - Page 8
Advanced Security
Chapter 8 - Page 9
Advanced Security
Chapter 8 - Page 10
Advanced Security
Chapter 8 - Page 11
Advanced Security
Chapter 8 - Page 12
Advanced Security
Chapter 8 - Page 13
Data Access Security for Legal Entities and Ledgers Setup and
Process
Advanced Security
Chapter 8 - Page 14
Data Access Security for Legal Entities and Ledgers Setup Define Data Access Set
Advanced Security
Chapter 8 - Page 15
Advanced Security
Chapter 8 - Page 16
Advanced Security
Chapter 8 - Page 17
Advanced Security
Chapter 8 - Page 18
Advanced Security
Chapter 8 - Page 19
Summary
Advanced Security
Chapter 8 - Page 20
Chapter 9
Financial Budgeting
Chapter 9 - Page 1
Financial Budgeting
Financial Budgeting
Chapter 9 - Page 2
Financial Budgeting
Financial Budgeting
Chapter 9 - Page 3
Objectives
Financial Budgeting
Chapter 9 - Page 4
Objectives
Financial Budgeting
Chapter 9 - Page 5
What Is a Budget?
Budgets help you manage your business by projecting revenues and expenses:
Estimate account balances for a specified range of periods
Compare estimated amounts with actual balances and determine variances
Financial Budgeting
Chapter 9 - Page 6
What Is a Budget?
Financial Budgeting
Chapter 9 - Page 7
Financial Budgeting
Chapter 9 - Page 8
Anatomy of a BudgetOverview
Financial Budgeting
Chapter 9 - Page 9
Financial Budgeting
Chapter 9 - Page 10
Financial Budgeting
Chapter 9 - Page 11
Creating a Budget
1. In Oracle General Ledger, you create a budget by designating Amounts to a combination
of an Account and a Period.
2. Use the Define Budget window to specify the accounting periods that you want to include
in your budget.
3. Use the Define Budget Organization window to specify accounts by defining a budget
organization, then assigning appropriate accounts to that organization.
Financial Budgeting
Chapter 9 - Page 12
Creating a Budget
Financial Budgeting
Chapter 9 - Page 13
Budget Hierarchies
You can use the following methods to structure budgets:
Top-down budgeting: Enter budget amounts at the top level, then distribute to lower
levels.
Bottom-up budgeting: Enter budget amounts at lowest level, then inquire and report on
upper levels.
Middle-out budgeting: Enter budget amounts at lowest level, then inquire and report on
upper levels.
Financial Budgeting
Chapter 9 - Page 14
Budget Hierarchies
Define a Budget
Enter the budget Name and Description.
Enter the status of your budget.
- Open: The budget is available for update and budget entry.
- Current: The budget is open, and is the default budget for most budgeting and inquiry
forms.
- Frozen: The budget is unavailable for update or budget entry.
(Optional) Choose to create journals to maintain an audit trail.
Enter the First and Last periods of your budget. You can enter a range of up to 60 periods.
Financial Budgeting
Chapter 9 - Page 15
Define a Budget
Financial Budgeting
Chapter 9 - Page 16
Master-Detail Budgets
Budgeting hierarchies enable you to control budgeting authority, and easily identify budgets
that exceed control limits. They also allow you to perform top down budgeting and identify
where the discrepancies are.
Define master budgets using the Define Budget window.
Enter a name and period range, then open the budget year.
Master budget organizations:
- The master budget organization should include only the accounts that represent
higher-level budgeting.
- If you have master budgets at different hierarchy levels, define a separate
organization for each level of master budgets.
Financial Budgeting
Chapter 9 - Page 17
Master-Detail Budgets
Financial Budgeting
Chapter 9 - Page 18
Financial Budgeting
Chapter 9 - Page 19
Financial Budgeting
Chapter 9 - Page 20
Financial Budgeting
Chapter 9 - Page 21
Financial Budgeting
Chapter 9 - Page 22
Financial Budgeting
Chapter 9 - Page 23
Financial Budgeting
Chapter 9 - Page 24
Financial Budgeting
Chapter 9 - Page 25
Financial Budgeting
Chapter 9 - Page 26
Financial Budgeting
Chapter 9 - Page 27
Financial Budgeting
Chapter 9 - Page 28
Quickly create budget allocation entries from a single formula to match your actual
allocations.
Transfer Budget Amounts
Transfer fixed amounts or a portion of a budget balance from one account to another.
Financial Budgeting
Chapter 9 - Page 29
Journals Created?
When you define a budget, you choose whether to require budget journals for your budget. If
you enabled the Require Budget Journals flag for your ledger, this option will already be
selected and cannot be changed.
When you require budget journals, you can only use budget entry methods that create journals,
namely budget journals, MassBudgets, budget transfers, consolidation of budget balances, and
the Applications Desktop Integrator's Journal Wizard.
Financial Budgeting
Chapter 9 - Page 30
Journals Created?
Financial Budgeting
Chapter 9 - Page 31
Financial Budgeting
Chapter 9 - Page 32
Budget Rules
Divide Evenly: Evenly distribute the amount you enter across all accounting periods. You
can set rounding options to handle any undistributed amount resulting from rounding
calculations.
Repeat Per period: Repeat the amount you enter in each accounting period.
Prior Year Budget Monetary* and Prior Year Budget Statistical*: Multiply the amount
you enter by the prior year budget balance.
Current Year Budget Monetary* and Current Year Budget Statistical*: Multiply the
amount you enter by the current year budget balance.
Prior Year Actual Monetary* and Current Year Budget Statistical*: Multiply the amount
you enter by the prior year actual balance.
Current Year Actual Monetary* and Current Year Actual Statistical*: Multiply the amount
you enter by the current year actual balance.
Financial Budgeting
Chapter 9 - Page 33
Budget Rules
Financial Budgeting
Chapter 9 - Page 34
Financial Budgeting
Chapter 9 - Page 35
Financial Budgeting
Chapter 9 - Page 36
Financial Budgeting
Chapter 9 - Page 37
Financial Budgeting
Chapter 9 - Page 38
Financial Budgeting
Chapter 9 - Page 39
Financial Budgeting
Chapter 9 - Page 40
Financial Budgeting
Chapter 9 - Page 41
Financial Budgeting
Chapter 9 - Page 42
Financial Budgeting
Chapter 9 - Page 43
Financial Budgeting
Chapter 9 - Page 44
- Choose View Results to review the budgetary control transactions resulting from your
funds action request.
- Leave the window. General Ledger automatically runs the Create Journals program to
create an approved budget journal after a successful funds reservation.
Financial Budgeting
Chapter 9 - Page 45
Finalize Budgets
Financial Budgeting
Chapter 9 - Page 46
Correcting Budgets
Financial Budgeting
Chapter 9 - Page 47
Financial Budgeting
Chapter 9 - Page 48
Financial Budgeting
Chapter 9 - Page 49
Freeze Budgets
Use the Freeze Budget window to freeze a budget, budget organization, budget formula batch,
or range of budget account combinations to prevent accidental or unauthorized changes
You can also freeze or unfreeze an entire budget by changing the budget status in the
Define Budget window
You can unfreeze any budget or budget element that is currently frozen
When you freeze budget organizations, you cannot budget to the account combinations
belonging to that budget organization for the budget specified.
When you freeze formulas or ranges of account combinations, you cannot use those
formulas or budget to those account combinations for the budget specified.
Financial Budgeting
Chapter 9 - Page 50
Freeze Budgets
Financial Budgeting
Chapter 9 - Page 51
Financial Budgeting
Chapter 9 - Page 52
Financial Budgeting
Chapter 9 - Page 53
Financial Budgeting
Chapter 9 - Page 54
Financial Budgeting
Chapter 9 - Page 55
Financial Budgeting
Chapter 9 - Page 56
Financial Budgeting
Chapter 9 - Page 57
Financial Budgeting
Chapter 9 - Page 58
Financial Budgeting
Chapter 9 - Page 59
Summary
Financial Budgeting
Chapter 9 - Page 60
Summary
Financial Budgeting
Chapter 9 - Page 61
Financial Budgeting
Chapter 9 - Page 62
Chapter 10
Multi-Currency
Chapter 10 - Page 1
Multi-Currency
Multi-Currency
Chapter 10 - Page 2
Multi-Currency
Multi-Currency
Chapter 10 - Page 3
Objectives
Multi-Currency
Chapter 10 - Page 4
Overview of Multi-Currency
Oracle General Ledger has full multi-currency functionality to meet the needs of global
companies in a global economy. In line with ISO Standard #4217, Oracle General Ledger
comes with all ISO currencies predefined. Simply enable the currencies you need to begin
using the Multi-Currency Accounting features.
Using Multi-Currency Accounting
Enter transactions and report in any currency.
Enter exchange rates online or automatically.
Perform currency conversion online and in real time.
Perform remeasurement and revaluation.
Calculate realized and unrealized gains and losses.
Translate actual and budget balances.
Use daily, period end, average, and historical rates.
Comply with Generally Accepted Accounting Principles.
Review entered, converted, and translated balances.
Produce foreign currency financial statements and reports.
Copyright Oracle Corporation, 2009. All rights reserved.
Multi-Currency
Chapter 10 - Page 5
Overview of Multi-Currency
Multi-Currency
Chapter 10 - Page 6
Multi-Currency
Chapter 10 - Page 7
Reporting Currencies
If you only need a different currency representation of the primary or secondary ledgers, assign
reporting currencies to them. Unlike secondary ledgers, reporting currencies must share the
same chart of accounts, accounting calendar/period type combination, subledger accounting
method, and ledger processing options as their source ledger.
As a general rule, always use reporting currencies instead of secondary ledgers if you only
need to maintain an accounting representation that differs in currency alone.
You can assign reporting currencies to both primary and secondary ledgers. Reporting
currencies are maintained at one of the following currency conversion levels:
The subledger level reporting currency maintains a complete currency representation of
your subledger journals, General Ledger journals entries, and balances.
- When using the subledger level reporting currency, define currency conversion rules.
These rules provide instructions on how to convert subledger and general ledger data
to one or more subledger level reporting currencies.
- Subledger level reporting currencies are maintained using both Subledger Accounting
and the General Ledger Posting program to create the necessary subledger journals
and General Ledger journals in both the primary and secondary ledgers
Copyright Oracle Corporation, 2009. All rights reserved.
Multi-Currency
Chapter 10 - Page 8
Reporting Currencies
Multi-Currency
Chapter 10 - Page 9
Defining Currencies
Fields in the Currencies Window
Code, Name, and Description:
Enter your own unique identifiers.
Issuing Territory:
(Optional) Select among predefined country names (per ISO Standard #3166).
Symbol:
(Optional) Enter the symbol for the currency.
Precision:
Designate the number of digits to the right of the decimal point used in regular currency
transactions.
Extended Precision:
Designate the number of digits to the right of the decimal point used in calculations. You
must specify a number greater than or equal to the Precision.
Minimum Accountable Unit:
Copyright Oracle Corporation, 2009. All rights reserved.
Multi-Currency
Chapter 10 - Page 10
Defining Currencies
Multi-Currency
Chapter 10 - Page 11
Conversion Overview
You can enter foreign currency journal entries directly in the Enter Journals window or you can
enter foreign currency journals in a Microsoft Excel worksheet created in the Journal Wizard
and take advantage of the spreadsheet's functionality.
If you specify a foreign currency, conversion date, and conversion rate type when entering
journals, General Ledger automatically displays the daily rate. Daily rates are defined to
convert the entered foreign currency to your functional currency for the specified date and rate
type. General Ledger calculates functional debit and credit equivalents by multiplying the
debits and credits entered in a foreign currency by the retrieved daily rate.
Multi-Currency
Chapter 10 - Page 12
Conversion Overview
Conversion Example
Conversion uses a daily rate that you enter at the time of journal entry or that is derived from
the rates that have been entered in the Daily Rates table in Oracle General Ledger.
When you post foreign currency transactions, Oracle General Ledger maintains a separate
balance for accounts entered in a foreign currency and their equivalent balances in the
functional currency.
The conversion functionality allows you to:
Segregate portions of an account balance by the different currencies used in each
transaction.
Specifically identify the source currencies of transactions, a key component of performing
proper revaluation of the balance.
Multi-Currency
Chapter 10 - Page 13
Conversion Example
Multi-Currency
Chapter 10 - Page 14
- An exchange rate that is used by countries joining the EU during the transition period
to the Euro currency. For more information, refer to Euro Currency in the Oracle
General Ledger User Guide.
User Defined:
- A rate type defined by your company to meet special needs.
Multi-Currency
Chapter 10 - Page 15
Multi-Currency
Chapter 10 - Page 16
Revaluation Overview
Revalue balance sheet account balances denominated in a foreign currency to reflect the
change in the foreign currency rate from the date a transaction is entered and the reporting date
in compliance with SFAS 52 (U.S.).
Revaluation Example
In this example, the value of the receivable in Euro never changed. The original receivable
transaction was entered in Euro and converted to 550 U.S. Dollars.
Upon revaluation, the exchange rate changed. The original receivable still stands at 1000
Euro. The converted amount changes to 600 U.S. Dollars. The difference, 50 U.S. Dollars
is posted to the Unrealized Gain/Loss Account.
At the beginning of the following period, the revaluation journal is reversed.
Multi-Currency
Chapter 10 - Page 17
Revaluation Overview
Revaluation Process
Finds defined accounts in which all or a portion of the balance is derived from foreign currency
transactions.
Revalues the foreign currency portion of the account balance using the Revaluation Rate from
the Daily Rates table. The Revaluation Rate is the inverse of the Period End Rate (expressed as
1/Period End Rate).
Calculates the difference between the current cumulative functional balance of these foreign
transactions and the revalued functional currency balance calculated using the Revaluation
Rate.
Creates an unposted journal batch to adjust the account balance to the new revalued balance.
The offset account is the Unrealized Gain/Loss account specified when you run the revaluation
process.
Note: After the revaluation process is completed, post the journal entry and then, at the
beginning of the next period, reverse the journal.
Multi-Currency
Chapter 10 - Page 18
Revaluation Process
Running Revaluation
Prerequisites
Before you run revaluation, you should do the following:
Define an unrealized gain/loss account.
Define a revaluation rate for each currency by period.
Running Revaluation
Revaluation is run at the end of each accounting period as part of the close process to
revalue balance sheet accounts that are denominated in a foreign currency in accordance
with SFAS 52 (US). The journal is then reversed at the beginning of the next period. The
process is repeated until the transactions are settled. The Realized Gain/Loss is recorded in
the appropriate subledger (Payables or Receivables) and transferred to the General Ledger
at the time the obligation is settled.
Currencies
Revaluation can be run for a single foreign currency, the Euro and EMU currencies
(during the transition period), or for All currencies. When you run revaluation, General
Ledger creates a revaluation batch containing a separate journal entry for each revalued
Copyright Oracle Corporation, 2009. All rights reserved.
Multi-Currency
Chapter 10 - Page 19
Running Revaluation
Multi-Currency
Chapter 10 - Page 20
foreign currency. Note that General Ledger creates the revaluation adjustments in your
functional currency. General Ledger automatically defines the reversal period as the next
accounting period.
Average Balance Ledgers
When you revalue balances in an average balance ledger, General Ledger only revalues
standard balances. When you post the revaluation journal entries to update your standard
balances, the system recalculates your average balances automatically. For more
information, refer to Average Balance Processing in the Oracle General Ledger User
Guide or the General Ledger Financial Management Advanced Topic Average Balance
Processing.
Reporting Currencies
Under the SFAS 52 remeasurement (the temporal method translation), it is necessary to
remeasure foreign currency gains or losses recorded in your primary ledger currency and
recorded them in the reporting ledger currency.
Revaluation Example
At the end of the accounting period, the revaluation process creates an unposted journal to
record the change in the converted balances to the Unrealized Gain/Loss Account. The journal
is posted, and then reversed at the beginning of the next reporting period.
In this example:
The original journal amount entered in Euro remains the same.
At period end, the exchange rate has changed to .81 US Dollars.
The receivable is still 10,000 Euro, but is now $8,100 US Dollars.
The offset of $100 US Dollars is recorded in the Unrealized Gain account.
Multi-Currency
Chapter 10 - Page 21
Revaluation Example
Multi-Currency
Chapter 10 - Page 22
Multi-Currency
Chapter 10 - Page 23
Multi-Currency
Chapter 10 - Page 24
Multi-Currency
Chapter 10 - Page 25
Translation Overview
Translate actual and budget balances from functional currency to foreign currencies for online
inquiries, reports, and consolidations.
If you have average balance processing enabled, you can translate average balances as well as
standard balances.
Run translation after you have completed all journal activity for an accounting period. If you
post additional journal entries or change your translation rates after running translation for a
period, you must retranslate.
Note: Additionally, if you change the account type for an account segment value and want to
retranslate your actual account balances, you must reenter or change the period end and period
average exchange rates for the periods that you want to retranslate.
Foreign Currency Translation Versus Reporting Currencies (RC)
RC is specifically intended for use by organizations that must regularly and routinely
report their financial results in multiple currencies. At the balance segment value level RC
is an equivalent of the foreign currency translation.
Multi-Currency
Chapter 10 - Page 26
Translation Overview
Translation
Multi-Currency
Chapter 10 - Page 27
Multi-Currency
Chapter 10 - Page 28
Multi-Currency
Chapter 10 - Page 29
Historical Rates
More precise than period end rates with respect to equity accounts.
Defined before running translation to avoid having to retranslate your balances.
Stabilize the translated balances for long-term accounts.
Used with highly inflationary currencies to remeasure specific historical account balances
in accordance with U.S. FASB 8.
Multi-Currency
Chapter 10 - Page 30
Historical Rates
Multi-Currency
Chapter 10 - Page 31
If the profile option GL: Owners Equity Translation Rule is set to PTD (Period to Date),
the amount is treated as translated net activity for the period. If the profile option is set to
YTD (Year to Date), the amount becomes the Year to Date translated balance.
Multi-Currency
Chapter 10 - Page 32
Multi-Currency
Chapter 10 - Page 33
- PTD balance for Revenue or Expense in USD = Historic Rate X PTD Euro Balance
- YTD balance for Assets or Liabilities in USD = Historic Rate X YTD Euro Balance
Restating Balances Previously Translated with the Year-to-Date Rule
Older versions of General Ledger always translated owners' equity accounts using the
Year-to-Date rule.
If you subsequently switch to the Period-to-Date rule, your owners' equity accounts are
translated using this rule for new translations only.
Previously translated owners' equity balances do not change.
If you wish, you can restate your previously translated owners' equity balances.
Multi-Currency
Chapter 10 - Page 34
Multi-Currency
Chapter 10 - Page 35
Multi-Currency
Chapter 10 - Page 36
Multi-Currency
Chapter 10 - Page 37
Multi-Currency
Chapter 10 - Page 38
There is a new Secondary Segment Tracking region in the ledger form. Enable the Closing
and Translation option to maintain account balances generated from the Closing and
Translation process. Enable the Revaluation option to track account balances generated
from the Revaluation process at a finer level of detail.
Both of these options are optional and can be turned on together or separately.
It is recommended that the Closing/Translation option be enabled when the ledger is first
defined. This option cannot be disabled in the future.
The Revaluation option can be turned on and off at any time, but for consistency in
processing, the setting should remain consistent throughout the life of your ledger.
Multi-Currency
Chapter 10 - Page 39
Multi-Currency
Chapter 10 - Page 40
Multi-Currency
Chapter 10 - Page 41
Multi-Currency
Chapter 10 - Page 42
Multi-Currency
Chapter 10 - Page 43
Multi-Currency
Chapter 10 - Page 44
Multi-Currency
Chapter 10 - Page 45
Multi-Currency
Chapter 10 - Page 46
Specify Yes to enter and display conversion rates in the functional-to-foreign format, that
is, the rate by which you multiply a functional amount to determine a foreign amounts.
Specify No to enter and display conversion rates in the foreign-to-functional format, that
is, the rate by which you multiply a foreign amount to determine a functional amount. The
default value is No.
Multi-Currency
Chapter 10 - Page 47
Summary
Multi-Currency
Chapter 10 - Page 48
Chapter 11
Consolidations
Chapter 11 - Page 1
Consolidations
Consolidations
Chapter 11 - Page 2
Consolidations
Consolidations
Chapter 11 - Page 3
Consolidations
Objectives
Consolidations
Chapter 11 - Page 4
Objectives
Overview of Consolidations
Overview of Consolidations
Subsidiary 1
Subsidiary 2
Subsidiary 3
Run Consolidation
Parent
Overview of Consolidations
The consolidation process combines the financial results of different companies, typically
combining subsidiary accounting information into a parent company for reporting purposes.
Consolidations
Chapter 11 - Page 5
Consolidation Tools
You can use the method that best suits your needs to
consolidate financial information.
Financial Statement Generator (FSG)
Global Consolidation System (GCS)
GCS
FSG
Consolidation Tools
Financial Statement Generator (FSG)
Use Financial Statement Generator (FSG) to consolidate financial information for
businesses using a single ledger or businesses using different ledgers that share the same
calendar and chart of accounts.
Use recurring journals, mass allocation journals, and standard journals to create
intercompany elimination journal entries for multiple companies sharing the same ledger.
Global Consolidation System (GCS)
Use Global Consolidation System (GCS) to consolidate financial information for multiple
ledgers, diverse financial systems, and geographic locations, including both Oracle and
non-Oracle applications.
Use the Consolidation Workbench in GCS to:
- Access windows used to perform each consolidation activity.
- Monitor the status of your consolidation.
- View history of past consolidations.
Consolidations
Chapter 11 - Page 6
Consolidation Tools
Parent
company
Structure:
Calendar:
Currency:
Co - CC - Acct
Monthly
USD
Subsidiary 1
Subsidiary 2
Subsidiary 3
Co-CC-Acct
Monthly
USD
Co-CC-Acct
Monthly
USD
Co-CC-Acct
Monthly
USD
Use FSG to
consolidate
data
Consolidations
Chapter 11 - Page 7
Parent
company
Structure:
Calendar:
Currency:
Co - CC - Acct - Prd
Monthly
USD
Use GCS to
map and
consolidate
Subsidiary 1
Subsidiary 2
Subsidiary 3
Co-CC-Acct
Quarterly
USD
Co-Acct-Prd
Monthly
Euro
Co-Acct-CC-Prd
Weekly
AUD
Consolidations
Chapter 11 - Page 8
Consolidations
Chapter 11 - Page 9
Consolidations
Chapter 11 - Page 10
- After consolidating your companies' information, you can analyze the data using
multiple scenarios.
Consolidations
Chapter 11 - Page 11
Subsidiary 1
Ledger
"Subsidiary 1"
Web ADI
Journal Entry
Spreadsheet
Consolidate
Parent
company
ledger
Consolidations
Chapter 11 - Page 12
Oracle
Instance A
Consolidations
Chapter 11 - Page 13
External Data
IDT Rules
Transform Data
GL_INTERFACE Table
Reformatted Data
Imported to GL
GL Journals
Consolidations
Chapter 11 - Page 14
Consolidations
Chapter 11 - Page 15
Consolidations
Chapter 11 - Page 16
100C
540
20%
100CB
Budget
108
20%
Consolidations
Chapter 11 - Page 17
Column1
100C
540
20%
100CB
Budget
108
20%
Consolidations
Chapter 11 - Page 18
Column1
100C
540
20%
Target
100CB
Budget
108
20%
Consolidations
Chapter 11 - Page 19
Column1
L
SQ
Consolidations
Chapter 11 - Page 20
Consolidations
Chapter 11 - Page 21
Consolidations
Chapter 11 - Page 22
Transfer historical balances or transactions from the period in the old ledger to the period
in the new ledger.
Considerations for Using GCS When Making Changes
GCS is particularly useful during implementations after you have uploaded historical balances
into Oracle General Ledger. If the accounting calendar or chart of accounts changes, you can
use GCS to perform account mapping and then transfer balances period by period into a new
ledger.
Caution: If you decide to change your ledger after you have turned on Multi-Org for your
subledgers and entered transactions using your subledgers, you should take additional
precautions. Switching your ledger under these conditions may have serious ramifications to
your data integrity because all historical subledger transactions point to the old ledger and all
new subledger transactions point to a new ledger.
Using GCS with the Subledger Accounting
Companies using the Subledger Accounting Dual Posting solution can use Global
Consolidation System (GCS) to transfer subledger transactions, other than Payables and
Receivables transactions, to another ledger to create alternative accounting representations of
their accounting data.
The Subledger Accounting Dual Posting solution enables you to transfer a single Payables or
Receivables transaction to two ledgers that use different accounting rules. Subledger
Accounting Dual Posting only addresses transactions from Payables and Receivables. Other
transactions that require a second accounting representation can be transferred to the second
ledger using GCS. Global Consolidation System (GCS) allows you to synchronize transactions
between the source and target ledgers by allowing you to retain journal batch names and
descriptions and allowing you to exclude the transfer of journals by journal category.
Consolidation Workbench
Access all
consolidation steps
Monitor consolidation
process
View mappings
and hierarchies
Consolidation Workbench
The Consolidation Workbench provides a central point of control for consolidating an
unlimited number of subsidiaries to your parent. This window provides feedback on the state of
the consolidation process, keeping you informed about each subsidiary's consolidation status.
The workbench also monitors subsidiary account balances for any changes that occur after the
subsidiary data has been transferred to your parent ledger.
Consolidation Sets
You can even create consolidation sets which launch multiple consolidations in a single step
for overall streamlining of the consolidation process.
Consolidation Hierarchies
Finally, you can create consolidation hierarchies, or multilevel hierarchies, and view your
consolidation hierarchies using a graphical Consolidation Hierarchy Viewer.
State Controller
From the Consolidation Workbench you can access the State Controller, which is a colorcoded navigation tool to guide you through the consolidation process.
Consolidations
Chapter 11 - Page 23
Consolidation Workbench
Consolidation Workbench
State Controller
Preparation/Transfer
Mapping
Consolidation Set
Translation Status
Transfer
Transfer Set
Review Journal
Post
Elimination Set
Elimination
Report
Elimination
Consolidations
Chapter 11 - Page 24
Consolidations
Chapter 11 - Page 25
Button Name
Consolidation Step
Consolidation
Consolidation Set
Translation Status
Transfer
Transfer Set
Review Journal
Post
Elimination Set
Eliminate
Report
Consolidations
Chapter 11 - Page 26
ButtonTransfer Set
General Ledger WindowTransfer Consolidation Data Set
Navigation(N) Consolidation > Transfer > Data Set
ButtonReview Journal
General Ledger WindowEnter Journals
Navigation(N) Journals > Enter
ButtonPost
General Ledger WindowPost Journals
Navigation(N) Journals > Post
ButtonElimination Set
General Ledger WindowElimination Set
Navigation(N) Consolidation > Elimination > Define
ButtonEliminate
General Ledger WindowGenerate Eliminations
Navigation(N) Consolidation > Elimination > Generate
ButtonReport (Standard)
General Ledger WindowSubmit Request
NavigationReports > Request > Standard
ButtonReport (Financial)
General Ledger WindowRun Financial Report
NavigationReports > Request > Financial
Consolidations
Chapter 11 - Page 27
ButtonTransfer
General Ledger WindowTransfer Consolidation Data
Navigation(N) Consolidation > Transfer > Data
Blue
Recommended
Gray
Not Recommended
Red
Warning
Transfer
Transfer Set
Review Journal
Post
Elimination Set
Eliminate
Report
Consolidations
Chapter 11 - Page 28
Translation Status
Mapping Rules
Subsidiary
Ledgers
Parent
Ledger
Consolidations
Chapter 11 - Page 29
Consolidations
Chapter 11 - Page 30
of the sales account, the consolidation journal entry includes the balance of the sales
account, not the individual transactions.
Note: You must use this method if you want to consolidate balances from your subsidiaries'
summary accounts.
Transactions:
Select Transactions to consolidate actual journal entry detail from a subsidiary ledger.
This method allows you to selectively consolidate individual journal entries. This method
is particularly useful if you want to make incremental updates if new journals are entered
after you run consolidation. Instead of reversing the original consolidation batch, which is
the case for the Balances consolidation method, you can transfer the additional journal
entry and post it to update the consolidated balances. If you choose the Transactions
method, the resulting consolidation journal entries include the transactions for all the
subsidiaries that are run. For example, if a subsidiary has five transactions booked to the
sales account, the consolidation journal entry includes the summation of all five
transactions. If you want each transaction to be listed in the parent ledger as five separate
transactions, you need to run the transfer five separate times.
Note: You can only use this method if both ledgers have the same functional currency.
If you have average balance processing enabled, your parent should be defined as a nonconsolidation ledger with average balances enabled.
Entering a Currency
Enter the currency to use for the consolidation. This is the same as the functional currency
for the parent. You can also select STAT.
Consolidating Books with Average Balance Processing Enabled
For average balance processing, optionally select a default Usage type such as standard,
average, or both to transfer standard, average, or both balances to the parent ledger.
Hint: You can create separate consolidation mappings for standard and average balances.
This is helpful if you want to use different mapping rules to get different levels of detail.
For example, you might map standard balances to view consolidated totals for each cost
center or average balances to view consolidated totals for each company.
Note: Standard defaults if you choose Transactions as the consolidation method. For more
information, refer to the Oracle General Ledger User Guide or the 11i General Ledger
Financial Management Advanced Topic Average Balance Processing.
Mapping Rules
Mapping Rules
Selecting a Mapping Rule
Select a Mapping Rule to specify how to consolidate balances or transactions from your
subsidiary to your parent. Your choices include segment rules, account rules, or a combination
of both.
Segment rules are preferable to account rules because:
Defining consolidation mapping is quicker and easier. For example, if your parent account
has only three segments, you can map an entire subsidiary's chart of accounts with just
three segment rules.
Running consolidations based on segment rules is faster than those based on account rules.
Changing Mapping Rules
Save your work after you have set up your consolidation mapping. Once saved, you cannot
modify your rollup rules, except to change the parent and subsidiary segment detail values. To
change a rollup rule, delete it and create a new one.
Consolidations
Chapter 11 - Page 31
Mapping Rules
Subsidiary
maps to
02.300.5410.100
Parent
01.5000.100
Low 02.400.5400.100
01.5200.100
High 02.400.6999.100
Consolidations
Chapter 11 - Page 32
Subsidiary
Maps to
Department
Account
Product
Parent
Cost Center
Account
Location
Consolidations
Chapter 11 - Page 33
Rule
Description
Parent Segment
Detail Value
Transfer Level
Using
Subsidiary
If you specify Parent in the Using field, enter
Segment Parent
the parent account value for the subsidiary.
Value or
If you specify Detail Ranges or Parent Ranges,
Segment Ranges enter the account ranges for the subsidiary.
Consolidations
Chapter 11 - Page 34
ResultsMaps a subsidiary segment parent value into a segment value in parent ledger to
consolidate balances from the summary account associated with the subsidiary segment
parent value. This rollup rule can only be used with the Balances consolidation method.
Transfer LevelSummary
UsingParent Ranges
ResultsMaps one or more ranges of subsidiary segment parent values into a segment
value in parent ledger. This consolidates balances from the summary accounts associated
with the subsidiary segment parent values. This rollup rule can only be used with the
balances consolidation method.
Consolidations
Chapter 11 - Page 35
Transfer to Parent
Company Ledger
Mapping Set
Subsidiary 1
Mapping
Rules
Subsidiary 2
Mapping
Rules
Subsidiary 3
Mapping
Rules
Consolidations
Chapter 11 - Page 36
Currency: USD
Calendar: Accounting
Chart of Accounts: Co-Dept-Acct-Sub-Acct-Prod
Consolidations
Chapter 11 - Page 37
Both: Displays your hierarchy using both the company's ledger name and components and
the mapping rules name.
Note: You can only view consolidation hierarchies for consolidations in a mapping set.
Consolidations
Chapter 11 - Page 38
Revalue balances
Translate balances
Subsidiary
Ledger
Run reports
Consolidations
Chapter 11 - Page 39
- Run after revaluation and translation have been processed in the consolidation
currency.
- Review the trial balance to ensure the data is accurate.
- Use these reports to reconcile subsidiaries to the parent.
- If subsidiary data has been translated, review the trial balance to ensure the data is
accurate.
Consolidations
Chapter 11 - Page 40
Revaluation Process
Foreign
currencies
Functional
currency
Revaluation Process
Revaluation should be completed before translation so the values are correct before they are
translated. The revaluation process performs the following:
Locates all accounts (within a range of specified accounts) in which all or a portion of the
balance is derived from foreign currency transactions.
Revalues the foreign currency portion of the account balance using the revaluation rate
defined in the Period Rates table. The Revaluation Rate is the inverse of the Period End
Rate (expressed as 1/Period End Rate).
Calculates the difference between the current cumulative functional currency balance of
these foreign transactions and the revalued functional currency balance calculated using
the Revaluation Rate.
Creates an unposted journal batch to adjust the account balance to the new revalued
balance. The offset account is the Unrealized Gain/Loss account specified when you run
the revaluation process.
You must post the revaluation journal entries. Optionally, at the beginning of the next period,
you can reverse the journal entries and revalue the balances again at the end of the next period.
Consolidations
Chapter 11 - Page 41
Revaluation Process
Notes: Some companies do not reverse the revaluation journal and choose to only revalue the
activity for the period. Also, revaluation is run each period until the obligation is settled. The
Realized Gain/Loss is recorded by the appropriate subledger (Accounts Payable or Accounts
Receivable) at the time the obligation is settled.
Consolidations
Chapter 11 - Page 42
Translation
Parent
functional
currency
Translation
If any subsidiary's ledger uses a functional currency different from the currency of the parent
ledger, translate the account balances to the parent's functional currency before transferring
them to the parent ledger.
The first time translation is run for a period, it should be initiated from the subsidiary.
However, subsequent translations, if they are needed, can be initiated from the parent, using
the State Controller Translate button.
Notes:
When running consolidation for the first time, it is best to consolidate Year-to-Date (YTD)
amounts for balance sheet accounts to capture the subsidiary book's beginning balances.
Period-to-Date (PTD) consolidation lacks the historical information needed to distinguish
the translated beginning balances from the translation adjustment for the new rate.
For income statement account balances, run period-to-date (PTD) consolidation.
If the period rate changes, or additional data is posted to a subsidiary after translation has been
run, the translation becomes obsolete. This is indicated by the red color of the Translation
button. You need to retranslate the data, delete the previous transfer, then run the transfer
again.
Copyright Oracle Corporation, 2009. All rights reserved.
Consolidations
Chapter 11 - Page 43
Translation
Consolidating
transactions
Consolidating
balances
Transferring
consolidation
sets
Consolidations
Chapter 11 - Page 44
Consolidations
Chapter 11 - Page 45
and consolidation is run in audit mode, you can review any excluded accounts in the
Unmapped Subsidiary Accounts Report.
If you do not select the Run Journal Import option for your transfer, you must manually
import the journal using the Import Journals window from your parent ledger.
Note: When running consolidation for the first time, you need to run a year-to-date (YTD)
consolidation for balance sheet accounts. This allows you to consolidate the subsidiary's
beginning balances. For each subsequent consolidation, run consolidation using PTD
balances to get the net change for the period.
Consolidating Transactions
You can consolidate transactions only if the mapping you want to transfer uses the
transactions consolidation method. In addition, you must use the Balance Type of Actual.
For average balance processing books, you should consolidate into a non-consolidations
ledger with average balances enabled.
In the Consolidation Workbench, select the consolidation mapping you want to run.
General Ledger automatically enters Actual for the Balance Type, Standard for the Usage
type, and PTD for the Amount Type. Then select the journal batches you want to
consolidate. You can search subsidiary ledgers for all unconsolidated journal batches,
previously consolidated batches or both.
Transferring Consolidation Set Data
If you have numerous subsidiaries, you can group them into a consolidation mapping set
and then transfer the set to the parent ledger. You can use the Query Mappings button to
review the mappings contained in a specific mapping set, the subsidiary period and date.
Select the mappings you want to transfer by selecting the check box to the left of each
mapping name. Then select the Transfer button to launch the transfer program.
Consolidations
Chapter 11 - Page 46
Review
Run Reports
Post
Consolidations
Chapter 11 - Page 47
Transfer
Subsidiary
Data
Remote
Parent
Instance
Consolidations
Chapter 11 - Page 48
multiple database instances can use this feature to consolidate their subsidiaries in a more
efficient and automated manner.
Consolidations
Chapter 11 - Page 49
Consolidations
Chapter 11 - Page 50
Consolidations
Chapter 11 - Page 51
Company A
Company B
Consolidations
Chapter 11 - Page 52
create a fourth elimination company, such as Company 99. Enter all eliminating entries using
the elimination company. Then you can report consolidated results before and after
eliminations.
Consolidations
Chapter 11 - Page 53
Formula-Based Eliminations
Formula-Based Eliminations
Recurring journals must be used to eliminate average daily balances. For more information,
refer to the Oracle General Ledger User Guide or the 11i General Ledger Financial
Management Advanced Topic Average Balance Processing.
Consolidations
Chapter 11 - Page 54
Formula-Based Eliminations
Automatic Intercompany
Eliminations Program
Source
Account
from
Subsidiary
Run Elimination
Target Account
in Parent or
Elimination
Company
Source
Account
from
Subsidiary
Target
Account in
Parent or
Elimination
Company
Consolidations
Chapter 11 - Page 55
Required Components:
Optional Components:
Batch name
Elimination company
Description
Elimination journals
Currency
Balancing options
Amount type
Source Account
Type Account
Consolidations
Chapter 11 - Page 56
Consolidations
Chapter 11 - Page 57
- If you want the elimination set to be part of the checklist for determining which
eliminations are completed for the period, select the Track Elimination Status check
box.
Period Last Run:
- General Ledger populates this field to indicate the period in which you last executed
an elimination set.
Effective From and To dates:
- Enter a range of effective dates that includes only those periods for which you want
the eliminating entry to be used. Oracle General Ledger generates eliminating journal
entries only when you choose a date that falls within the Effective Dates range.
Currency:
- Select the functional currency of the parent ledger or STAT. The currency you
specify is for both source and target accounts.
Amount Type:
- Enter period-to-date, (PTD), quarter-to-date (QTD), year-to-date (YTD), or projectto-date (PJTD). Average Balances cannot be used.
Source Account:
- The Source Account balance is fully eliminated into the target account. The
elimination program takes the negative balance of the source account and places the
balance in the target account. For each account segment, choose a detail account
value, a parent value, or leave the segment blank.
Note: Use parent values to reduce account maintenance because the elimination set
automatically accommodates changes in the child values associated with a particular
parent value. Parent values save you time in defining elimination sets because you
can specify one elimination line which includes the parent value, instead of multiple
lines for each child value. If you use parent values, the elimination functionality
automatically loops through each of the child values for those segments and creates
its detailed or summarized offset in your elimination journal.
Target Account:
- Specify a target account for your elimination entry. For each account segment, choose
a detail account value or leave the segment blank.
Note: If you specify an elimination company in the Elimination Sets window, the
balancing segment value for the target account is set for you. You cannot override
this default. If you do not specify an elimination company in the Elimination Sets
window, the source account balancing segment value defaults as the target balancing
segment value and you can override this value.
Specifying an Elimination Company
If you specify an elimination company in the Elimination Sets window, the balancing
segment value for the target account is set for you. You cannot override this default.
If you do not specify an elimination company in the Elimination Sets window, the source
account balancing segment value defaults as the target balancing segment value and you
can override this value.
Is mapped to
Account
Target Account
Null
Null
The outcome is
Null
100
200
Null
999
Null
200
100
999
100
100
200
300
400
Child Accounts
Consolidations
Chapter 11 - Page 58
Consolidations
Chapter 11 - Page 59
Balancing Option
Percentage of journal: Enter a number that represents the percentage of the lesser total
debit or total credit of the unbalanced journal.
If multiple balancing segments are involved, General Ledger creates specific balancing
accounts by balancing segment value.
Consolidations
Chapter 11 - Page 60
I/C AR
I/C Sales
Out of Balance
CR
100
87
13
Consolidations
Chapter 11 - Page 61
DR
I/C AR
CR
205
I/C Sales
Review and
analyze
difference
199
Out of Balance
CR
205
I/C Sales
199
Consolidations
Chapter 11 - Page 62
DR
Sales Account 1
Sales Account 2
A/R
Subledger
A/R
Subledger
Consolidations
Chapter 11 - Page 63
Accounts Receivable subledger transactions that contributed to your total consolidated sales
balance.
Consolidations
Chapter 11 - Page 64
Performing Consolidated
Balances Inquiry
Consolidation
Subsidiary
Source Account
Display
translated
currency
Display
original
currency
Switch
amount
type
Consolidations
Chapter 11 - Page 65
Balances
Consolidations
Chapter 11 - Page 66
Consolidation Journals ReportThis report lists subsidiary journal lines and the parent
accounts used for your consolidation. Use this report to review journal batches consolidated
across multiple ledgers. You must run this report from your parent ledger. You can only run
this report if your consolidation uses the Transactions method and you do not select the Create
Summary Journals option.
Notes:
The Consolidation Audit Report, Unmapped Subsidiary Report, and Disabled Parent
Account Report are available only if you select the audit mode run option when
transferring your subsidiary data.
Consolidations
Chapter 11 - Page 67
Consolidations
Chapter 11 - Page 68
Summary
Consolidations
Chapter 11 - Page 69
Summary
Consolidations
Chapter 11 - Page 70
Chapter 12
Period Close
Chapter 12 - Page 1
Period Close
Period Close
Chapter 12 - Page 2
Period Close
Period Close
Chapter 12 - Page 3
Objectives
Period Close
Chapter 12 - Page 4
Period Close
Chapter 12 - Page 5
Period Close
Chapter 12 - Page 6
Period Close
Chapter 12 - Page 7
GL_JE_HEADERS, and GL_JE_LINES tables. You do not run Journal Import to transfer asset
information to General Ledger.
Integration with Non-Oracle Systems: If you maintain your subledger information in an
external, non-Oracle application, you must write a script to convert data into a format readable
by SQL*Loader, to load that information into the GL_INTERFACE table.
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Before closing the General Ledger, verify that all journal entries have been imported from the
GL_Interface table. If not, troubleshoot the remaining entries.
Caution: Do not correct or delete journal import data from Oracle subledgers such as Oracle
Payables or Oracle Receivables. Corrections do not update the Oracle subledger data causing a
permanent out of balance between the General Ledger and the subledger. The Oracle
subledgers set flags to indicate the transactions have been sent to Oracle General Ledger. If the
import is deleted, these flags must be reset before the transactions can be resent.
For more information on Journal Import, see the previous chapter on Journal Entries.
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Posting Journals
You have three methods to post journal import batches.
Batch Posting: Navigate to the Post Journals window to post a group of journal batches.
- (N) Journals > Post
Manual Posting: Select the More Actions button from either the Journals window or the
Batch window to post a journal batch at the time of entry. This option is available only if
the profile option Journals: Allow Posting During Journal Entry has been set to Yes. When
you post a journal, Oracle General Ledger posts all the journals in a batch.
(N) Journals > Enter (B) More Actions
Automatic Posting: Run the AutoPost program to post journal batches automatically based
on a schedule you define.
- (N) Setup > Journals > AutoPost
Correcting Batch Posting Errors: Review the batch to identify the posting error. Common
explanations for unpostable batches include:
Control total violations
Posting to unopened periods
Copyright Oracle Corporation, 2009. All rights reserved.
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Posting Journals
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Note: Order Management updates Inventory during Ship Confirm which precedes the
AutoInvoice Process. Therefore, verify that all orders have been processed in Order
Management before closing Inventory.
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up to the entered transfer date, and passes the correct accounting date and financial
information into the General Ledger Interface. Use the Journal Import program with a
source of Inventory to transfer accounting information from the GL Interface to the
General Ledger. Run this process for each inventory organization.
For Assets, run the following processes:
- Mass Additions Create: Run the Mass Additions Create program to transfer capital
invoice line distributions from Payables to Assets. This process creates no accounting
entries. After the program completes, invoice distributions may be processed.
- Post Mass Additions: Once your mass additions are processed, use the Post Mass
Additions program to place the assets in service.
- Run Depreciation: This process calculates depreciation, gain/losses on retirements,
and (optionally) closes the period.
- Create Journal Entries: Use the Create Journal Entries process to create accounting
and transfer it directly to the General Ledger. The accounting clears the asset clearing
account and charges the asset cost account. Assets does not use the GL Interface.
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Reconcile AP to GL
Use the following Payables reports to reconcile your transferred invoices and payments to your
Accounts Payable Trial Balance to ensure that your Trial Balance accurately reflects the
Accounts Payable Liability:
Accounts Payable Trial Balance (for last day of prior period)
Posted Invoice Register - Invoice journals must be posted in General Ledger to appear on
this report.
Posted Payment Register - Payment journals must be posted in General Ledger to appear
on this report.
Accounts Payables Trial Balance (for last day of current period)
This balancing process will help you ensure that all liabilities recorded in Payables are
reflected in the General Ledger AP Liability accounts. If the balance reported by the Accounts
Payables Trial Balance does not equal the balance in the AP Liability account, you can use the
Account Analysis report and the General Ledger reports to determine what journals are being
posted to that account. Before running your reports, run the Payables Accounting Process with
the Transfer to General Ledger Program and Journal Import for all transactions in the period
that you are reconciling. Also, be sure to post the transactions in the General Ledger.
Copyright Oracle Corporation, 2009. All rights reserved.
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Reconcile AP to GL
Reports
Accounts Payable Trial Balance: Verify that total Accounts Payable liabilities in Payables
equal those in the General Ledger. To reconcile these balances you can compare the
cumulative total liability provided by this report with the total liability provided by your
General Ledger.
Accrual Rebuild Reconciliation Report: Analyze the balance of the Accounts Payable (A/P)
accrual accounts. You can accrue both expense and inventory purchases as you receive them.
When this happens, you temporarily record an Accounts Payable Liability to your Expense or
Inventory A/P Accrual accounts. When Payables creates the accounting for the matched and
validated invoice, Payables clears the A/P accrual accounts and records the liability from the
supplier site. Run this report at period end.
Accrual Reconciliation Report: The same report as the Accrual Rebuild Reconciliation Report
with one key difference. The Accrual Rebuild Reconciliation Report creates records in a
temporary table which are used as the basis for the report. The Accrual Reconciliation Report
simply uses the records created by the Accrual Rebuild Reconciliation Report as a basis for the
report. Run this report during the accounting period.
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Reports
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Accrual Write-Off Report: Provide supporting detail for your write-off journal entries. The
process is as follows:
Analyze the Accrual Reconciliation Report for transactions that you should expense out of
the accrual accounts.
Researched the reported accrual balances.
Use the Accrual Write-Off window to indicate which entries you wish to remove and
write off from this report.
Use the Accrual Write-Off Report as supporting detail for your manual journal entry.
Matched and Modified Receipts Report: After you automatically create invoice distributions by
matching an invoice for goods to a receipt, that receipt can be modified in Purchasing. For
example, you might need to adjust a receipt because the quantity received was incorrectly
recorded, or the product was defective and returned to the supplier. Use this report to identify
receipts that have been changed after invoice matching, and for which no users have seen
modifications.
Payables Account Analysis Report: Review and analyze accounting entries in Payables. You
can use the report parameters to limit the report to just the accounting information you want to
review. The Payables Account Analysis report is helpful when you reconcile your accounts
with your General Ledger. For example, you can reconcile the prepaid expense account
between Payables and your General Ledger. You can submit this report in detail and compare
it to an account analysis report in your General Ledger.
Reports (continued)
Payables Accounting Entries Report: Use this report to review and analyze accounting entries
in the Payables subledger. You can request the report for a specific run of the Payables
Accounting Process or the Payables Transfer to General Ledger program. Using the report
parameters, you can produce a detailed or summary listing of the accounting information you
want to review. The report also lists in detail any transactions that have been accounted with
error and all entries that could not be transferred to the General Ledger Interface. When a
transaction is accounted with errors, use the Update Accounting Entries window to update any
invalid accounts.
Posted Invoice Register: Use the Posted Invoice Register to review accounting lines,
summarized by invoice, that have been transferred to the General Ledger. Because it presents
amounts that have been charged to liability accounts, this report is valid only for an accrual
ledger. The Posted Invoice Register is primarily a reconciliation tool. Use this report along
with the Posted Payment Register and the Accounts Payables Trial Balance Report to reconcile
balances between Payables and your General Ledger.
Posted Payment Register: Use the Posted Payment Register to review accounting lines,
summarized by payments that have been transferred to the General Ledger. Because it presents
amounts that have been charged to liability accounts, this report is valid only for an accrual
Copyright Oracle Corporation, 2009. All rights reserved.
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Reports (continued)
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ledger. You can submit the Posted Payment Register for one payment journal entry batch or all
payment journal entry batches. The Posted Payment Register is primarily a reconciliation tool.
Use this report along with the Posted Invoice Register and the Accounts Payables Trial
Balance Report to reconcile balances between Payables and your General Ledger.
Receipt Accruals - Period End: Use the Receipt Accruals - Period-End process to create
period-end accruals for your uninvoiced receipts for expense distributions. Purchasing creates
an accrual journal entry in the General Ledger for each uninvoiced receipt you choose using
this window.
Receiving Account Distribution Report: The Receiving Account Distribution Report lists the
accounting distributions for your receiving transactions. This report supports the distributions
created for the following transactions:
Purchase Order Receipts
Purchase Order Receipt Adjustments
Purchase Order Returns to Supplier
Deliver to Expense Destinations
Return to Receiving from Expense Destinations
Match Unordered Receipts
This report helps you reconcile your receiving accounting to the General Ledger.
Reports (continued)
Unaccounted Transactions Report: Identify and review all unaccounted invoice and payment
transactions and see the reason that Payables cannot account for a transaction. Run this report
after you have run the Payables Accounting Process. The report will then show only
transactions that had problems that prevented accounting. You can then correct the problems
and resubmit the accounting process. Note that this report does not include invoices that have
no distributions.
Uninvoiced Receipts Report: Run before the Receipt Accrual - Period-End process. With this
report, you can review all or specific uninvoiced receipts for both period end and online
accruals. Uninvoiced receipts are goods and services you have received that your supplier did
not invoice yet. This report indicates exactly what you have to accrue and for what amount,
and helps you analyze your receipt accrual entries. The accrual amount is the difference
between the quantity received and the quantity billed multiplied by the unit price of the item.
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Reports (continued)
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Journal Entries Report: Review the details that make up the General Ledger journal
entries.
Receipts Journal Report: Review details of receipts that appear in the Journal Entries
report.
Aging Report: Use the last day of the prior month to get the outstanding opening balance.
Transaction Detail Report: Identify transactions that increase the outstanding opening
balance.
Adjustments Register: Identify any adjustments that affect the transactions for the month.
Unapplied Receipts Register: Determine customer balance after taking into account all onaccount and unapplied amounts
Applied Receipts Register: Identify receipts that reduce the outstanding opening balance.
Invoice Exceptions Report: Identify transactions that reduce the outstanding opening
balance. This report shows all transactions where the Open Receivables flag is set to No.
Therefore, the transactions do not display on the aging but do show in the Transaction
Register. This can occur when an item can be ordered in Order Management but not
invoiced, such as an internal ordered item.
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For preapproved batches, do a wildcard search from the Preapproved Expenditure Entry
window on the status field or expenditure date as appropriate.
If Oracle Projects is the direct data source for payroll or for reconciling labor costs to
payroll, verify that all time cards are entered or accounted for.
Run the AUD: Missing Timecards report.
Import all transaction import batches and try to resolve any rejected expenditures from the
transaction import file.
Run the PRC: Transaction Import process and review exception section.
One rejected expenditure item causes an entire expenditure to be rejected. Many costbased tasks can affect the revenue production processes if you do them during the closing
cycle.
Most revenue accrual relies on cost distribution being completed before generating project
revenue. Before accrual can occur, you must:
- Interface supplier invoices from Oracle Payables.
- Distribute labor, usages, and expense reports.
Closing Cycle Tasks
Once you have verified that all transactions have been accounted for during the closing
cycle preparation activities, you should place limits on general transaction processing by
users.
Creating new or adjusting existing expenditures during the final cost distribution processes
may cause reconciliation problems if not controlled (particularly in a geographically
dispersed user community).
The closing process includes the following tasks, listed in chronological order:
- Run final cost distribution processes. Optionally, run the PRC: Update Project
Summary Amounts process.
- Generate project allocations.
- Run final management reports.
- Interface cost transactions with General Ledger or Accounts Payable.
- Generate draft revenue for all projects.
- Distribute Borrowed and Lent Amounts. Can be run earlier if transfer price is not
dependent on revenue.
- Generate draft intercompany invoices and (optionally) provider cost reclassification
entries.
- Interface cross charge distributions to General Ledger.
- Run final management reports for revenue.
- Run processing for inter-project billing.
- Change current PA period status to Pending Close.
- Open new PA period. Allow new expenditure entry. Adjust expenditures and perform
cost distribution processes as necessary.
Post Closing Tasks: Post-closing tasks include the following items in chronological order:
Update project summary amount.
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Closing a PA Period
PA periods involve six statuses. The statuses are listed in order of life cycle:
Never Opened: No processing
Future: Allows new transactions to be entered but not processed
Open: Allows all entry and processing activity
Pending Close: Same as open but does not allow any new cost distribution lines to be
created
Closed: Stops all processing (A PA period can be closed only when all cost distribution
lines have been interfaced with General or Accounts Payable.)
Permanently Closed: Period cannot be reopened
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Closing a PA Period
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Period Rates
You must define and enable your currencies before you can enter period rates.
General Ledger uses the following rates to perform foreign currency translation in accordance
with SFAS #52 (U.S.).
Period-Average Rate Used to translate income statement accounts.
Period-End Rate Used to translate balance sheet accounts.
Revaluation Rate: General Ledger enters the inverse of the period-end rate as the revaluation
rate. Revaluations are performed on accounts that have foreign currency balances at the end of
the period to properly state the balances to the current converted functional currency amount.
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Period Rates
Running Revaluation
Prerequisites
Before you run revaluation, you should do the following:
Define an unrealized gain/loss account.
Define a revaluation rate for each currency by period.
Revaluation is run at the end of each accounting period as part of the close process to revalue
balance sheet accounts that are denominated in a foreign currency in accordance with SFAS 52
(US). The journal is then reversed at the beginning of the next period. The process is repeated
until the transactions are settled. The Realized Gain/Loss will be recorded by the appropriate
subledger (Accounts Payable or Accounts Receivable) and transferred to the General Ledger at
the time the obligation is settled.
Revaluation can be run for a single foreign currency, the Euro and EMU currencies (during the
transition period), or for All currencies. When you run revaluation, General Ledger creates a
revaluation batch containing a separate journal entry for each revalued foreign currency. Note
that General Ledger creates the revaluation adjustments in your functional currency. General
Ledger automatically defines the reversal period as the next accounting period.
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Running Revaluation
Revaluation Example
At the end of the accounting period, the revaluation process creates an unposted journal to
record the change in the converted balances to the Unrealized Gain/Loss Account. The journal
is posed, and then reversed at the beginning of the next reporting period.
In this example:
The original journal entry in Euro remains the same.
At period end, the exchange rate has changed to .81.
The receivable is still 10,000 Euro, but is now $8,100 US Dollars.
The offset of $100 is recorded in the Unrealized Gain account.
For more information on Revaluation, see the previous chapter on Multi Currency.
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Revaluation Example
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Note: Should you need to make adjustments after the balance sheet closing journals are
posted, reverse and post the original closing entries, make your adjustments, then rerun the
closing process to capture the new adjustments.
In the first adjusting period of the new fiscal year, reverse the balance sheet closing
journals to repopulate the balance sheet accounts.
Post the generated reversing journals.
Balance Sheet Closing Journal Attributes: The journal entry that closes the balance sheet has
the following attributes:
Only actual balance types are closed out. Budget or encumbrance balances are ignored.
The effective date of your closing entries is the last day of the period you select in the
Parameters window, typically an adjusting period representing the last day of the fiscal
year.
General Ledger automatically creates a separate closing account for each balancing
segment if you specify an account range that includes multiple balancing segments.
Closing journals are marked for reversal in the period following the period the closing
journals were generated. To change the reversal method default, see Changing The Default
Reversal Method, below.
General Ledger closes functional currency balances only. Foreign currency balances are
ignored.
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batch that contains separate journals for each currency processed. For the functional
currency, the journal will only have entered amounts as converted amounts do not apply.
For foreign currencies, the journal will have both entered and converted amounts. Stat
account balances are not processed by the program.
Option 2: Income Statement Offset: When you run the process, Create Income Statement
Closing Journals, and you enter an account for the fields, Closing Account and Income
Offset Account in the Parameters window, the journal generated will be similar to that
described above except for the following:
The revenue and expense accounts included in the specified account range will not be
zeroed out. Instead, the program will take the net sum of the revenue and expense
accounts. This sum includes the balance in the income statement offset account. It will
then post the reciprocal of the net sum to the income offset account, in the appropriate
debit (DR) or credit (CR) column. The amount posted to the retained earnings account will
be the reciprocal of the amount posted to the income offset account. This retained earnings
amount will then also be equal to the net sum of the revenue and expense accounts
processed.
Historical Rates
Historical rates are:
More precise than pre-owned rates with respect to equity accounts.
Defined before running translation to avoid having to retranslate your balances.
Can stabilize the translate balances by defining fixed historical rates for long-term
accounts.
Used with highly inflationary currencies to remeasure specific historical account balances
in accordance with U.S. FASB 8.
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Historical Rates
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Overview of Consolidations
The consolidation process combines the financial results of different companies, typically
combining subsidiary accounting information into a parent company for reporting purposes.
You can use the method that best suits your needs to consolidate financial information.
Financial Statement Generator (FSG):
- Use to consolidate financial information for businesses using a single ledger or
businesses using different ledgers that share the same calendar and chart of accounts.
- Use recurring journals, mass allocation journals, and standard journals to create
intercompany elimination journal entries for multiple companies sharing the same
ledger.
Global Consolidation System (GCS):
- Use to consolidate financial information for multiple ledgers, diverse financial
systems, and geographic locations, including both Oracle and non-Oracle
applications.
- Use the Consolidation Workbench in GCS to:
Access windows used to perform each consolidation activity
Copyright Oracle Corporation, 2009. All rights reserved.
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Overview of Consolidations
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integrated with Oracle General Ledger. After consolidating your companies' information, you
can analyze the data using multiple scenarios.
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Consolidating Ledgers
After defining a consolidation to map accounting information from a subsidiary ledger into a
parent ledger, you must run the consolidation to generate the consolidated information.
When a consolidation is run, Oracle General Ledger submits a concurrent process that
populates the GL_INTERFACE table with consolidation data.
You must run Journal Import to create an unposted consolidation journal batch in your parent
ledger, either at the time you run consolidation or later using the Import Journals window.
For more information on Consolidation, see the previous chapter on Consolidations.
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Consolidating Ledgers
Reporting Options
Reporting Function Legend
OI - Online Inquiry
Std - Standard Reporting
FSG - Financial Statement Generator
Web ADI - Web Applications Desktop Integrator
EPB - Oracle Enterprise Planning and Budgeting
BIS - Business Intelligence System
Disc - Discoverer
RXi - RXi Report Administration Tool
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Reporting Options
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Consolidation Journals Report: This report lists subsidiary journal lines and the parent
accounts used for your consolidation. Use this report to review journal batches
consolidated across multiple ledgers.
Note: The Consolidation Audit Report, Unmapped Subsidiary Report, and Disabled Parent
Account Report are available only if you select the audit mode run option when transferring
your subsidiary data.
Select (N) Others > Reports > Run (B) Submit Requests to run standard trial balance reports:
Detail Trial Balance Report: Review your general ledger actual account balances and
activity in detail. You can run this report for balances and activity entered in your
functional currency or STAT, or translated to a foreign currency. The report prints a line
for each of your accounts and lists them in ascending order by account segment value. For
each account, the report prints the account segment value, account segment value
description, beginning balance, period activity, and ending balance for the period you
specify. General Ledger reports debits as positive amounts and credits as negative
amounts.
Summary Trial Balance Report: Review general ledger actual account balances and
activity summarized by account segment value. You can run this report for balances and
activity entered in your functional currency or STAT, or translated to a foreign currency.
The report prints a line for each account segment value and lists them in ascending order.
For each account segment value, the report prints the value, description, beginning
balance, net of all debit or credit transactions, and ending balance for the period you
request.
Translation Trial Balance Report: Review your account balances and period activity after
running translation. General Ledger prints a separate page, including totals, for each
balancing segment value, listing accounts in ascending order by account segment value.
For each translated account, the report prints the description of the account segment value,
account type, beginning balance, debits and credits, rate adjustment, and ending balance.
Summary
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Chapter 13
Financial Reporting
Chapter 13 - Page 1
Financial Reporting
Financial Reporting
Chapter 13 - Page 2
Financial Reporting
Financial Reporting
Chapter 13 - Page 3
Objectives
Financial Reporting
Chapter 13 - Page 4
Objectives (continued)
Financial Reporting
Chapter 13 - Page 5
Reporting Options
Reporting Function Legend
OI - Online Inquiry
Std - Standard Reporting
FSG - Financial Statement Generator
Web ADI - Web Applications Desktop Integrator
EPB - Oracle Enterprise Planning and Budgeting
BIS - Business Intelligence System
Disc - Discoverer
RXi - RXi Report Administration Tool
Additional details about each of the reporting options are available in the following pages.
Financial Reporting
Chapter 13 - Page 6
Reporting Options
Online Inquiry
Oracle Applications provide broad online inquiry and analysis capabilities. With Oracle
General Ledger, you can use Oracle's inquiry functionality to drill from summary account
balances to detail balances, and to complete journal entries. You can drill to complete views of
any underlying Oracle subledger transactions for further accounting entry analysis, including
transactions from Receivables, Payables, Projects, Assets (except depreciation), Purchasing,
Inventory, and Work in Process.
Drilling Down to Detail Balances
You can drill down to detail account balances, review journal entries, then drill down
further to your subsidiary ledgers, review subsidiary account balances, then drill down
even further to subsidiary journal entries and even to your subsidiaries' subledger details.
For example, while analyzing total consolidated sales, you may want to determine how
much each subsidiary contributed to the total amount. Simply drill down from the
consolidated sales balance to any subsidiary sales account balance. From there, you can
view account details and journals. If you still require more information, drill down further
to the subledger transactions that contributed to your total consolidated sales balance.
Financial Reporting
Chapter 13 - Page 7
Online Inquiry
During the drill down process, you can view your accounting entries in a T-Account
format or a Summary Activity format. The T-Account format eases accounting analysis by
graphically displaying your accounting entry in T-Accounts for both summary and detail
financial information. The Summary Activity format displays your accounting entries in a
trial balance layout.
For more information, refer to Oracle General Ledger User Guide or 11i General Ledger
Financial Management Fundamental Topic Journal Entries on Performing Account
Inquiry and Drill Down to Oracle Subledgers.
Financial Reporting
Chapter 13 - Page 8
Financial Reporting
Chapter 13 - Page 9
Financial Reporting
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Financial Reporting
Chapter 13 - Page 11
Financial Reporting
Chapter 13 - Page 12
You can define custom financial reports, such as income statements and balance sheets, online
with complete control over the rows, columns, and content of your report. You can control
headings, descriptions, format, and calculations in addition to the actual content. The reusable
report components make building reports quick and easy. You can copy a report component,
make minor edits, then apply the report component to a new report without having to create a
new report from scratch.
Financial Reporting
Chapter 13 - Page 13
Financial Reporting
Chapter 13 - Page 14
Financial Reporting
Chapter 13 - Page 15
Financial Reporting
Chapter 13 - Page 16
Financial Reporting
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Financial Reporting
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Financial Reporting
Chapter 13 - Page 19
Expand: If you choose Expand for the ledger segment and the ledger segment value is a
ledger set, the FSG report displays individual rows for the ledgers of the ledger set and
shows the ledger short names. The ledgers are listed in order of their ledger short name.
Total: This display type controls the level of detail FSG will show on your report for
individual report lines. If you choose Total for the ledger segment and the ledger segment
value is a ledger set, the FSG report totals the ledgers in the ledger set and displays rows
for the totals without displaying the individual ledgers.
Both: If you choose Both, your report will include both the expanded detail and the total.
If you choose Both for the ledger segment and the ledger segment is a ledger set or ledger,
the FSG report displays both the expanded detail and total rows for the ledger and ledger
set.
Note: You must use a display type of T (Total) for each segment if you assign a
ledger/ledger set or accounts to a column.
Note: FSG does not support expanding across a ledger set within a single column. If you
want to report on a ledger set across columns, you must explicitly specify the ledger or
reporting currency to report on in each column.
Assigning Accounts
You assign accounts by entering one or more account ranges. Optionally, enter a ledger set in
the ledger segment of the account assignments. You can also provide the ledger segment
value at runtime.
Financial Reporting
Chapter 13 - Page 20
Financial Reporting
Chapter 13 - Page 21
To generate financial reports with XML Publisher, you have several options for publishing
your FSG report:
Publish your FSG report with XML Publisher in one step. This automatically creates your
FSG report in XML output and uses that output to publish your FSG report from a single
submission request. You do this through the Submit Requests window.
Generate your FSG XML output from the Run Financial Reports window or from the
Submit Requests window. Then separately run the XML Publisher program from the
Submit Requests window against that request to apply the layout and formatting of a
report template to your FSG report.
After the XML output of your FSG report has been generated the first time, you can
republish the FSG report against a different report template to obtain a different report
layout and format without having to run the FSG program again.
Financial Reporting
Chapter 13 - Page 22
Financial Reporting
Chapter 13 - Page 23
Upload any type of file and publish it to a central repository. Reports in the repository can
then distributed to the Oracle E-Business Suite home page.
Financial Reporting
Chapter 13 - Page 24
E-Business Intelligence
The Oracle Business Intelligence System (BIS) is an executive information system which
provides a framework for corporate performance management and continuous process
improvement. By delivering timely and accurate information, BIS enables managers to make
better decisions, faster. Oracle Business Intelligence System is part of the Oracle eBusiness
Suite, an integrated suite of e-business applications for the enterprise, which is designed to
transform your business into an e-business.
Oracle Business Intelligence System can analyze the back office and front office data provided
by the Oracle eBusiness Suite. This includes ERP applications such as Financials, Human
Resources, Purchasing, Operations, and Manufacturing, and CRM applications supporting
Sales, Service, Customer, Marketing, and Interaction Center (Call Center). Users can set
targets to meet their strategic objectives, monitor performance in all areas of the company,
receive notifications when performance is out of tolerance, and respond immediately by taking
corrective actions.
One of the many components in the BIS system are the reports, performance measures, and
workbooks delivered by Oracle General Ledger.
Financial Reporting
Chapter 13 - Page 25
E-Business Intelligence
Financial Reporting
Chapter 13 - Page 26
These BIS components are integrated with an alert and workflow mechanism to proactively
communicate operational performance to the management team. Management can then drill
from high level financial information into more detail level data based on the dimensions they
choose; including ledgers, operating units, cost centers, and product groups.
General Ledger provides the following seven informative reports in BIS:
1. Revenues Report
2. Expenses Report
3. Profit Margin Report
4. Contribution Margin Report
5. Current Ratio Report
6. Earnings Per Share (EPS) Report
7. Summary Analyst Report
Financial Reporting
Chapter 13 - Page 27
Oracle Discoverer
Oracle Discoverer is an intuitive ad-hoc query, reporting, analysis, and Web-publishing tool
that empowers business users at all levels of the organization to gain access to information
from data marts, data warehouses, and online transaction processing systems.
Report builders and analysts can create, modify, and execute ad hoc queries and reports. More
casual users can view and navigate through pre-defined reports and graphs. Discoverer
provides a business view to hide the complexity of the underlying data structure. It enables
users to focus on solving business problems instead of data access issues.
Discoverer Key Characteristics
Works on Oracle 8i and 9i
Built-in structure for BIS
Can include operations data
Security rules already defined apply
Non multi-dimensional table - uses rows and columns
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Oracle Discoverer
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You build a report by defining then combining up to five reusable report components. At a
minimum, you must have a row set and column set for every report. Before you define a
report using the Financial Statement Generator (FSG), draft your report on paper.
Sketching the report in advance helps you plan the format and content of the report and
saves you time later.
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To control page breaks, indentation, line spacing, and underline characters. You can define
a new row set, or use FSG's AutoCopy feature to copy an existing row set, which you can
then modify as needed.
Note: If you have average balance processing enabled in your ledger, you can report on
functional, foreign, and translated average balances.
Implementation Note
Row Set:
When creating a balance sheet, you must include your entire income statement account
range for the Current Period Retained Earnings amount. Oracle General Ledger never
posts the monthly net income amount to an actual current period retained earnings
account. This only happens when the first period of a new fiscal year is opened. Thus, to
achieve the figure for current period retained earnings, it is a reporting solution where you
enter your Profit and Loss account range in the account assignment.
When creating reports, it is a good idea to include check figures at the end of the report to
verify that all accounts were properly assigned in the reports. This is particularly useful if
you have had to enter account ranges with gaps because of the structure of your chart of
accounts.
For example, when creating a Balance Sheet, add check figures at the end of the report
defined as follows:
- Total Assets 1000-1999
- Total Liabilities 2000-2999
- Total Stockholder's Equity 3000-9999.
Note: To derive the net income amount that is usually posted to current period retained
earnings, you must include your income statement account range.
Assigning Line Numbers to Rows:
You should enter line numbers in increments of 10 to allow for space to add additional
rows for future modifications.
Account Assignment Display Option:
Oracle General Ledger stores debit balances as positive numbers and credit balances as
negative numbers. If you want your credit balance accounts, such as liabilities, and
revenues to display as positive numbers, select the Change Sign check box. Doing so will
have no effect on your calculations.
Assigning Accounts
Select the Account Assignments button to assign accounts for a row set.
Select a numeric operator (+ or -) to add or subtract the totals for the account range.
Enter a Low and High for the range of account combinations. To specify an individual account,
enter the same account as the Low and High. You can leave these fields blank to create generic
row sets with universal account assignments.
Enter a Display type for each account segment:
Select "E" to expand the range and display one report line for each segment value.
Select "T" to total the amounts in the range and display only one total line for the segment
values.
Select "T" for each segment of the range if multiple account ranges are assigned to a row.
Select "B" to display both the expanded detail and the Total. "B" combines the effects of
"E" and "T".
Implementation Note
Account Assignment:
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Assigning Accounts
You should always enter a unique Row Name for every row. The Row Name does not
appear in any reports, but it does appear in lists of values when you perform calculations.
If the row is simply a label, for example, "Current Assets", that does not have any
accounts assigned to it, you should append the row name with the word "label" to let you
know that this row contains no accounts and you will not need to include it in your
calculations. Also be sure the row name is unique to ensure that calculations yield the
correct results. If you use the same row name for two different rows, FSG will not know
which row to use.
Consider creating generic row sets by applying "T" display types for each account
segment. You can later define content sets to create more specific reports.
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When using the Quarter-To-Date (QTD) Amount Type in column sets to perform
quarterly reporting, you will need to create four different column sets if you are using a
non-standard calendar, such as a 13 period calendar because 13 does not divide evenly
into 4 and the period offsets will not give the desired results.
Column Set Amount Types:
When creating column sets that will be coupled with Balance Sheet Row Sets, be sure to
use the Year-to-Date (YTD) amount type. Oracle General Ledger does not store YTD
balances. Thus, in order to achieve a cumulative total on balance sheet accounts, you must
have FSG calculate the amount for you using the YTD amount type.
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Enter &CURRENCY, followed by a control value number to print the currency assigned
to the control value number when you define or run your report column.
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Summary: Must assign the same summary option at the row and column level.
Currency: Must assign the same currency at the row and column level.
Change Sign: Yes overrides No.
Change Sign on Variance: Yes overrides No.
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Financial Statement Generator in the Requests window. If the error message in the log file
is not detailed enough, change the user profile option FSG: Message Detail to full.
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You cannot enter currencies in the report definition if the report does not contain a row
and/or column set with a currency control value.
You must specify a budget or encumbrance when your report includes rows or columns
which use related amount types, such as PTD-Budget or PTD-Encumbrance.
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Select CT to total the range and display only the total for the segment values. This has no
effect on the report display.
PE - Page Expand Report:
Select PE to expand the range and create a separate report for each segment value in the
range. If you are using parent values, enter the same value as the high and low. Oracle
General Ledger displays only the children (or grandchildren).
PT - Report/Total:
Select PT to total the segment value range and display the total on one page.
N - No override: Select to use display options entered in the row set definition.
Implementation Note
Display Options:
Page Expand (PE) Report is the most commonly used display option. It allows you to
perform consolidation within FSG.
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Ranking Methods
Oracle General Ledger offers several ways to order and display expanded detail rows. Select a
ranking method and to display segment values, segment value descriptions, or both.
Alternatives include the following:
Order by ranking, display description: For example, department number.
Order by ranking, display both: For example, the name of the department.
Order by description, display description: For example, department description.
Order by description, display value
Order by value, display description
Order by value, display value
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Ranking Methods
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Control whether the rollup group or the summary flag associated with flexfield
assignments determine the expansion of parent values when requesting summary balances.
FSG: Message Detail:
Specify the error message catalogue and level of detail in your error message log file when
you request your Financial Statement Generator reports.
FSG: String Comparison Mode:
Do not change this profile option unless instructed to do so by Oracle World Wide
Support. This profile option affects the character language for text-based character sets.
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In the Ordering field, select one of these values for each column:
- Ascending: To sort column values in ascending order
- Descending: To sort column values in descending order
- None: To print without ordering column values
Page Formatting
In the Report Title Field, enter the title you want to appear on the report.
In the Group Display Type field, select Group Left if you want to place breaking columns
to the left of non-breaking columns, or select Group Above to place breaking columns
above non-breaking columns.
In the Page Width and Page Height fields, enter the number of characters to designate the
page width and page height of the reports.
In the Print Report Headings section, enter the headings that you want to print in the report
heading.
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Summary
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Summary (continued)
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Chapter 14
Objectives
Intercompany Transactions
Intercompany transactions are transactions that occur between two or more legal entities
belonging to the same corporate enterprise. The legal entities can be assigned to one primary
ledger or assigned to different primary ledgers in the same corporate enterprise. Intercompany
transactions are normally allocations and charge-back transactions.
For example, Vision Operations (USA) is a corporate enterprise that has legal entities at
various places in the world. A transaction that occurs between the Vision France and Vision
Germany which are legal entities of Vision Operations is called an intercompany transaction.
Intercompany Transactions
Intracompany Transactions
Intracompany transactions are transactions that occur between organizations represented by
balancing segment values in the same legal entity of a corporate enterprise.
Organizations could be a manufacturing plant, a warehouse, a cost center, or any other
organization.
Intracompany transactions often pass through a clearing organization, also represented by a
balancing segment value.
For example, Vision France is a legal entity which has Manufacturing and Operations as its
organizations or departments. A transaction that occurs between Manufacturing and Operations
organizations which are also called as balancing segment values is called an intracompany
transaction.
Intracompany Transactions
Benefits
You can view the additional accounting lines in the subledgers. These lines are added to the
transactions when the journals are posted to the general ledger. This results in detailed
reporting and analysis.
Note: You can create intracompany transactions in General Ledger. You can also create
intercompany transactions in General Ledger provided the legal entities belong to the same
ledger.
Balancing API
The Balancing API is used by Oracle General Ledger and Oracle Subledger Accounting to
provide the necessary balancing lines for a given combination of balancing segment values.
The API processes both intracompany lines (between balancing segment values in the same
legal entity) and intercompany lines (between balancing segment values belonging to different
legal entities) according to the setup defined in the Intracompany Balancing Rules pages and in
the Intercompany Accounts pages. If there are both intercompany and intracompany lines in
the same transaction, the Balancing API performs intercompany balancing across legal entities,
and then intracompany balancing across balancing segment values within each legal entity.
Previously, these balancing lines were not determined until posting to General Ledger.
The Balancing API is used by General Ledger and Oracle Subledger Accounting to build
journal lines automatically based on balancing rules that you have defined in the Intracompany
Balancing Rules page. The Balancing API is called by General Ledger prior to posting and by
Subledger Accounting at the time of subledger journal creation.
Balancing API
values, in the ledger. Transactions that happen between legal entities with multiple balancing
segment values can be either Intracompany or Intercompany transactions, depending on the
balancing segment value assignments. The Balancing API creates balancing lines for both
types of transactions, using the following accounting rules:
Intracompany Balancing Rules for intracompany transactions.
Intercompany Accounts for intercompany transactions
Note: This button is inactive if the Trading Partner Legal Entity or Balancing Segment Value
does not have reciprocal intercompany accounts defined, or if the Trading Partner Legal Entity
resides on another applications instance, or if the value is All Other.
Use for All Journals A clearing balancing segment value is used for all types of journals.
You can enter a clearing balancing segment value at the journal header level (only in
General Ledger), else the default balancing segment value is used.
Use for Many-to-Many Journals Only - A clearing balancing segment value should only
be used to clear many-to-many journals. You can enter a clearing balancing segment value
at the journal header level (only in General Ledger), else the default balancing segment
value is used.
Choose the options in Default Options as follows:
Default Clearing Balancing Segment Value Use the default clearing company if no
clearing company is specified for the journal. Choosing this option displays the Default
Clearing Balancing Segment Value list of values restricted to balancing segment values
that are mapped to the legal entity.
Manually Entered Clearing Balancing Segment Value Choose if a clearing company
is not specified for the journal when an error occurs.
Note: Do not use this with the subledger journals as the clearing company may not be
specified in subledgers.
Using Default Rule Use this option only when you select the Summary Net or Detail
Level option under Level of Summarization.
Note: The Default Rule is the rule defined for All Other-All Other. Balancing lines are
generated based on this rule ignoring the rules defined in the Balancing Rules tab. You
cannot select this option if you select Use for All Journals in Clearing Balancing
Segment Value.
Adding a Customer or Supplier Name and a Bill-to or Pay-to Location to the organization
party or selecting an existing Customer or Supplier Account and Bill-to or Pay-to Location
You cannot create a new transaction account type. You can only create a new Transaction
Account Definition in AGIS.
Before creating a new Transaction Account Definition, ensure that the following are defined:
Legal entities and primary ledger
Trading partners
Intercompany accounts
Intercompany transactions
Intercompany transactions can be entered through web-based user interface, imported from
Excel using WebADI, open interface or public API.
In Oracle Advanced Global Intercompany System the initiator creates an outbound batch with
one or more recipient lines, enters the initiator accounting information and submits the batch.
Each recipient receives the inbound transaction, enters the recipient accounting information
and approves transaction. Accounting is also created automatically in the outbound or inbound
batch in the transaction per the rules that are defined in Subledger Accountings Transaction
Account Builder.
The recipient approves or rejects the transaction in the Oracle Advanced Global Intercompany
System user interface or from the workflow notification or through e-mail. Rules are also set to
approve the transaction automatically. The transaction status is updated for the initiator and
recipient when the transaction is approved or rejected.
When the transaction is approved, Oracle Advanced Global Intercompany System determines
whether an invoice is required for the transaction or not. If the legal rules and transaction type
options determine an invoice is required, receivables and payables invoices are created else, the
transaction is transferred to initiators and recipients general ledger.
Copyright Oracle Corporation, 2009. All rights reserved.
Intercompany Transactions
The distribution lines are entered depending on the option selected. You can manually enter the
distribution amounts or automatically generate the distributions amounts.
If you selected the Automatic distribution mode while entering the batch header and
transactions, then the distributions that you enter are prorated later across all transactions.
When submitting the batch, these distributions are prorated based on the number of recipient
transactions.
If Manual distribution mode is selected, then the initiator can enter the distributions manually
using the Initiator Accounting tab. Optionally, the initiator can also enter the recipient
accounting using the Recipient Accounting tab. The recipient accounting need not balance
since the recipients may make adjustments.
User can attach documents at the batch level and for each recipient transactions. When the
batch is submitted, the documents are transferred to individual recipients. You can select a
descriptive flexfield context to enter additional Information. Based on the context selected, the
descriptive flexfield segments are added as columns in the transactions table to enter additional
information for each transaction. Navigate to the next page to enter the initiator accounting by
clicking Continue.
The Recipient Accounting tab is only be visible if the initiator also has access for that recipient
organization and to enter the recipient distributions.
Click Submit to submit the batch to the recipient for approval. The initiator receivables account
and the recipient payables account are generated automatically after the recipient approves the
batch.
Ledger accounting tables is performed separately by the GL Posting process after the journals
are imported into General Ledger.
After transferring the transactions, Intercompany generates a report displaying the transactions
that were transferred to General Ledger and their status.
After transferring the transactions, Intercompany generates a report displaying the transactions
that were transferred to Receivables and Payables and their status.
the request. The value Yes in the Submit AR Auto Invoice and the Submit Payables Import
automatically runs the respective import processes.
After transferring the transactions, the application generates a report displaying the transactions
that were transferred to Receivables and Payables and their status.
The new batch is submitted automatically to the recipients after it is created and the status of
the transaction changes to Submitted.
Columns specified Optional need not contain data. However, the transactions are rejected
if the data fails the validation.
Intercompany Reporting
Advanced Global Intercompany System provides extensive reports that help you in reviewing
and reconciling transactions reports. These reports are built using Oracle XML Publisher
technology. Oracle XML Publisher enables you to easily change the layout and publishing
format of the reports thus allowing you to customize the reports to suite your requirements.
The reports available in Intercompany are:
Oracle Intercompany Transaction Summary Report
Oracle Intercompany Account Details Report
Intercompany Reconciliation Report
Navigate to the Schedule Requests page to run the reports. For each parameter, the list of
values displays the options associated with the user running the report. If no option is selected,
then the report is generated for all the options in the list of values.
Intercompany Reporting
Accounts, Description, Invoice Number, etc. For inbound transactions, you can add the
columns such as Recipient Legal Entity, Transaction Date, Recipient Payables Accounts,
Description, Approver, Invoice Number, etc.
Type, and Description. Additional columns can be also included in the Inbound Transactions
section, some examples are Description, and Invoice Number.
Summary