1.0 SET OF BOOKS

Description: An organization or group of organizations within Oracle that share a common Accounting Flexfield structure (chart of accounts), calendar, and functional currency.

Restrictions: You must define at least one set of books for each business location.

Notes:

· The Corporate Accounting Flexfield chart of accounts and the ADPDS PROD CAL calendar are defined in the subsequent sections.

· The Allow Suspense Posting option is set to No. When this option is set to Yes, Oracle General Ledger allows out-of-balance journal entries posting (debits do not equal credits) and automatically balances these journal entries by posting the difference to the specified suspense account.

· This set of books allows a maximum of twelve (12) future periods in which journal entries can be made.

· This implementation of Oracle General Ledger does allow automatic intercompany balancing. A single organization with a single set of books is assumed for this configuration.

· The Enable Budgetary Control option is set to No. When this option is set to Yes, the user must perform funds reservation for transactions entered in Oracle General Ledger, Oracle Purchasing or Oracle Payables. Furthermore, users can only post journal entries that pass funds reservation. This configuration assumes that the user will not perform funds reservation in Oracle General Ledger, Oracle Purchasing or Oracle Payables.

· The Require Budget Journals option is set to No. If journal entries for all the budgets in this set of books are required, this option must be set to Yes. In this case, only Budget Journals, Budget Transfers, MassBudgets and consolidation of budget balances create journal entries. Therefore, if budget journals are required, the user cannot enter Budget Amounts, Upload Budgets or use Budget Formulas.

· If budgetary control is to be utilized, Oracle General Ledger requires that budget journals for the budgets be created. Use the Define Budget form to specify budget journals required for your funding budget.

Name	ADP-DEALER SERVICES				Short Name		ADP-DS
Description		DEALER SERVICES SET OF BOOKS
Chart of Accounts			ADP-DS COA		Functional Currency				USD
Standard Options			X	Balance Intercompany Journals
Accounting Calendar				ADPDS PROD CAL		Period Type		ADP Month
Future Periods				12
Retained Earnings				01.01.0050.0000.400000.00000.000
Suspense				01.01.0050.0000.120500.00000.000
Intercompany				01.01.0050.0000.230125.00000.000
Translation Adjustment				01.01.0050.0000.230113.00000.000
Reserve for Encumbrance

2.0 DEFINE RESPONSIBILITIES

Description: Responsibilities are assigned based on the specific tasks and access that each type of user will have available.

Restrictions: None.

Ÿ The “ADP-DEALER SERVICES” set of books should be assigned to each Oracle Applications responsibility.

Ÿ A responsibility in an Oracle Application is a level of authority that determines the specific data the user can access and the specific menus they see. For this configuration, we use the predefined responsibilities.

To complete the set of books assignment:

1. Change your user responsibility to the predefined System Administrator.

2. Navigate to the Update System Profile Options form. Click on the Responsibility check-box to select the Level and then select the appropriate responsibility (using one of the predefined responsibilities) in the Name field.

3. Enter GL Set of Books Name in the Option field and Corporate Set of Books in the Value field.

3.0 DEFINE VALUE SET

Description: A value set is a set of valid values against which your flexfield validates the segment value a user enters in a flexfield segment.

Restrictions: Never change or delete a predefined value set that is supplied by Oracle. Changes may unpredictably affect the behavior of your application features.

This flexfield is made up with the following segments:

Segment	Type	Size	Description
COUNTRY	Char	2	International division or holding company
COMPANY	Char	2	Operating company or tax entity
BUSINESS UNIT	Char	4	Cost/profit center or business unit
PREFIX	Char	4	Product designation category
GL ACCOUNT	Char	6	Natural account number
PRODUCT/PROJECT	Char	5	Part number definition by product number
MANUF CODE	Char	3	Part number definition by manufacturer

The parameter to allow Dynamic Insertion into the accounting flexfield will be set to “Yes”.

Appendix A contains a table of natural accounts predefined for this configuration. These accounts should be modified at implementation time to reflect changes to the actual data.

The elements required to set up this accounting flexfield include:

- Accounting Flexfield Value Sets

- Account Flexfield Segment Values

- Parent-Child Relationships

- Rollup Groups

- Cross-Validation Rules

- Security Rules

- Accounting Flexfield Shorthand Alias

· Accounting Flexfield Value Sets

For each segment of the accounting flexfield, an independent value set will be defined to dictate the segment characteristics. The following accounting flexfield value sets will be defined using the Define Value Sets form:

Segment	Value Set
COUNTRY	COUNTRY_PROD
COMPANY	COMPANY_PROD
BUSINESS UNIT	BUSINESS_UNIT_PROD
PREFIX	DEPARTMENT_PROD
GL ACCOUNT	ACCOUNT_PROD
PRODUCT/PROJECT	PRODUCT/PROJECT_PROD
MANUF CODE	MANUFACTURER_PROD

Note that Oracle General Ledger is case sensitive for the value set names, i.e., they are used to construct the ‘WHERE’ clause for querying data; therefore, no spaces have been used in the value set name.

The following image shows the details set up of the COUNTRY _PROD value set. All other value sets are defined following the same guidelines.

4.0 DEFINE KEY FLEXFIELD SEGMENTS

4.1 COUNTRY SEGMENT VALUES

Description: A value set is a set of valid values against which your flexfield validates the segment value a user enters in a flexfield segment.

Restrictions: None.

· Value Set
Name	COUNTRY_PROD	COUNTRY SEGMENT FOR PRODUCTION

Value	Description	Enabled	From	To
01	UNITED STATES	X
02	CANADA	X
03	UNITED KINGDOM	X
17	ITALY	X
ZZ	GLOBAL	X

4.2 COMPANY SEGMENT VALUES

Description: A value set is a set of valid values against which your flexfield validates the segment value a user enters in a flexfield segment.

Restrictions: None.

· Value Set
Name	COMPANY_PROD	COMPANY SEGMENT FOR PRODUCTION

Value	Description	Enabled	From	To
01	DBS-US	X
02	DBS-CANADA	X
03	DBS-CVR	X
04	DBS-PICTURE PERFECT	X
ZZ	DEALER SERVICES	X

4.3 BUSINESS UNIT SEGMENT VALUES

Description: A value set is a set of valid values against which your flexfield validates the segment value a user enters in a flexfield segment.

Restrictions: None.

· Value Set
Name	BUSINESS_UNIT_PROD	BUSINESS UNIT SEGMENT FOR PRODUCTION

Value	Description	Enabled	From	To
0050	BALANCE SHEET	X
0100		X
010Z		X
0110	MAJOR-ADMIN	X
0117	MAJOR-EAST	X
0118	MAJOR-WEST	X
0121	HEARTLAND-CENRAL-CHICAGO	X
0122	HEARTLAND-CENTRAL-FLORENCE	X

4.4 PREFIX SEGMENT VALUES

Description: A value set is a set of valid values against which your flexfield validates the segment value a user enters in a flexfield segment.

Restrictions: None.

· Value Set
Name	DEPARTMENT_PROD	DEPARTMENT SEGMENT FOR PRODUCTION

Value	Description	Enabled	From	To
0000	BALANCE SHEET	X
1020	HOST REVENUES	X
1021	BUSINESS SYSTEM REVENUE	X
1022	SOFTWARE SUPPORT REVENUE	X
102Z	ONSITE PROCESSING REVENUE	X
1040	DCS PROCESSING REVENUES	X
1050	PRICE UPDATES REVENUE	X
1070	DIRECT EXPENSE-HOST	X

4.5 GENERAL LEDGER ACCOUNT SEGMENT VALUES

Description: A value set is a set of valid values against which your flexfield validates the segment value a user enters in a flexfield segment.

Restrictions: None.

Notes:

Ÿ None of the accounts have been designated as summary accounts. Those accounts designated with a ZZ on the end are parent accounts.

Ÿ The natural account segment has been designated as six digits long.

Account #	Account Name	Description
000000	DEFAULT	Default

1XXXXX	*ASSETS - CURRENT*

100002	CASH-ASC	Petty Cash
100004	CASH-HAYES	Petty Cash
100006	CASH-CIBC PROGICAR DISB	Petty Cash
1000ZZ	CASH-PETTY	Parent Account-Petty Cash

100100	CASH-A/P-BANK OF AMERICA	A/P Cash
100101	CASH-A/P-BANK OF AMERICA-CVR	A/P Cash
100102	CASH-A/P-BANK OF NOVA SCOTIA	A/P Cash
1001ZZ	CASH-A/P DISTRIBTUION	Parent Account-A/P Cash

100200	CASH-A/R-NCNB DALLAS	A/R Cash
760050	CROSSCHG-FACILITIES ADMIN	Building Services
7600ZZ	OUTSIDE SERVICES-BUILDING	Parent Account-Outside Services-Building

760100	EMPL SVC-RECRUITMENT ADS	Outside Services
760101	EMPL SVC-EMPL AGENCY FEES	Outside Services
760102	EMPL SVC-TEMPORARY HELP	Outside Services
760103	O/S SVCS-PROGRAMMING	Outside Services
760105	O/S SVCS-PRINT PROCESSING	Outside Services
760106	O/S SVCS-COUPON PROCESSING	Outside Services
760107	O/S SVCS-PRINT TONER	Outside Services
760108	O/S SVCS-DATA COLLECTION	Outside Services
760109	O/S SVCS-DATA ENTRY	Outside Services
760110	O/S SVCS-PROXY INSERTION	Outside Services
760111	O/S SVCS-PROXY PRESORT	Outside Services
760112	O/S SVCS-SUPERSORT PRESORT	Outside Services
760113	O/S SVCS-PAYROLL PROCESSING	Outside Services
760114	O/S SVCS-ANCILLARY CHGS	Outside Services
760115	O/S SVCS-CREDIT BUREAU CHGS	Outside Services
760116	O/S SVCS-DMV PROCESSING	Outside Services
760117	O/S SVCS-AUTONET PORTS	Outside Services
760118	O/S SVCS-AUTONET INSTALL	Outside Services
760119	O/S SVCS-AUTONET WATTS	Outside Services
760120	O/S SVCS-AUTONET USAGE	Outside Services
760121	O/S SVCS-ORACLE PROJECT	Outside Services
760122	O/S SVCS-LEGAL	Outside Services
760125	O/S SVCS-ACCOUNTING	Outside Services
760126	O/S SVCS-HOST PROCESSING	Outside Services
760128	O/S SVCS-FREIGHT CONSOLIDATION	Outside Services
760150	O/S SVCS-OTHER	Outside Services
760155	CROSSCHARGE-O/S SERVICES	Outside Services
7601ZZ	OUTSIDE SERVICES-PROFESSIONAL	Parent Account-Outside Services-Professional

760500	LOBBYING EXPENSE	Outside Services-Lobbying Expense
760550	ADP SERVICE FEES	Outside Services-ADP Service Fees
76ZZZZ	OUTSIDE SERVICES	Parent Account-Total Outside Services

770000	DEPR EXP-BUILDING	Depreciation Expense
770001	DEPR EXP-BLDG IMPROV	Depreciation Expense
770002	DEPR EXP-LEASEHOLD IMPROV	Depreciation Expense
770004	DEPR EXP-INERNAL DPE	Depreciation Expense
770005	DEPR EXP-LEASED DPE	Depreciation Expense

4.6 PRODUCT/PROJECT SEGMENT VALUES

Description: A value set is a set of valid values against which your flexfield validates the segment value a user enters in a flexfield segment.

Restrictions: None.

· Value Set
Name	PRODUCT/PROJECT_PROD	PRODUCT/PROJECT SEGMENT FOR PRODUCTION

Value	Description	Enabled	From	To
00000	DEFAULT	X
00010	HOST APPL-ACCOUNTING	X
00020	HOST-APPL-PARTS	X
00030	HOST APPL-SERVICE	X
00040	HOST APPL-OTHER	X
000ZZ	HOST APPLICATIONS	X
01000	BUS APPL-ACCOUNTING	X
01010	BUS APPL-PAYROLL	X
01020	BUS APPL-ACCTS PAYABLE	X

4.7 MANUFACTURER SEGMENT VALUES

Description: A value set is a set of valid values against which your flexfield validates the segment value a user enters in a flexfield segment.

Restrictions: None.

· Value Set
Name	MANUFACTURER_PROD	MANUFACTURER CODE SEGMENT FOR PRODUCTION

Value	Description	Enabled	From	To
000	DEFAULT	X
100	JEEP/EAGLE	X
101	ALFA ROMEO	X
107	BMW	X
108	BUICK	X
109	CADILAC	X
110	CHEVROLET	X

5.0 DEFINE PARENT/CHILD RELATIONSHIPS

Description: This structure allows you to view the hierarchy structure to which your selected value belongs. The values are all child values of the parent value displayed in the Parent Value field.

Restrictions: None

Parent Value	1000ZZ
Description	CASH-PETTY
Children
From		To	Include
100000		1000ZZ	Child Values Only

Parent Value	1001ZZ
Description	CASH-A/P DISTRIBUTION
Children
From		To	Include
100100		1001ZZ	Child Values Only

Parent Value	1002ZZ
Description	CASH-A/R LOCKBOX
Children
From		To	Include
100200		1002ZZ	Child Values Only

Parent Value	1003ZZ
Description	CASH-P/R DISTRIBUTION
Children
From		To	Include
100300		1003ZZ	Child Values Only

Parent Value	1004ZZ
Description	MISC DEPOSITS
Children
From		To	Include
100400		1004ZZ	Child Values Only

Parent Value	1005ZZ
Description	SHORT TERM INVESTMENTS
Children
From		To	Include
100500		1005ZZ	Child Values Only

Parent Value	10ZZZZ
Description	CASH
Children
From		To	Include
100000		10ZZZZ	Child Values Only

6.0 DEFINE SHORTHAND ALIASES

Description: Shorthand aliases represent complete or partial combinations of key flexfield segment values. They are used to speed up entry of segment values into Accounting Flexfield pop-up windows. Via Using Shorthand Flexfield Entry and Define Shorthand Alias forms, the user defines the codes that are associated or equivalent to the partial or complete Accounting Flexfield values.

When Oracle General Ledger prompts for an Accounting Flexfield value, the user can enter one of the defined codes, and the complete or partial associated Accounting Flexfield is automatically inserted into the pop-up window.

Shorthand alias flexfield entry option is enabled when setting up the Accounting Flexfield structure.

Note: No shorthand aliases will be created for the accounting flexfield in this configuration. These can optionally be defined after the base product is installed.

Restrictions: None

Alias	Template	Alias Description

7.0 DEFINE CROSS-VALIDATION RULES

Description: Validation rules are used to control the Accounting Flexfield combinations you want to allow Oracle to build. These are critical to have in place especially if you are using the Dynamic Insertion feature of the software. The validation process prevents invalid accounting flexfield combinations from being entered into the General Ledger application. Cross- validation rules can be entered or changed through the Define Cross-Validation Rule form.

Restrictions: First rule should always “Include” all available fields. Remaining rules will provide the restrictions needed for the combinations being built. Unlimited number of rules may be defined, but should limit the number of rules to avoid confusion and difficulty in adding new accounts in the future.

CROSS-VALIDATION RULES
Name		Description


Error Message Text
Error Segment Name

CROSS-VALIDATION RULE ELEMENTS
Type	From		To
Include	---------------------		ZZZ------------------
Exclude
Exclude
Exclude
Exclude
Exclude
Exclude
Exclude
Exclude

CROSS-VALIDATION RULES
Name		Description


Error Message Text
Error Segment Name

CROSS-VALIDATION RULE ELEMENTS
Type	From		To
Include	-----------------		ZZZ------------
Exclude
Exclude
Exclude
Exclude
Exclude
Exclude
Exclude
Exclude
Exclude

8.0 DEFINE ROLL-UP GROUPS

Description: This is an optional feature that allows you to group related parent values for reporting and other purposes. Rollup groups are used to create summary accounts for maintaining summary balances. To use this feature, the user assigns the desired rollup groups to the parent segment values. Note that rollup groups are used to create summary accounts whose balances are reported and viewed on-line only.

Restrictions: You must define roll up groups before you define key segment values.

Note: No segment rollup groups will be created for the accounting flexfield in this configuration. These will be defined after the base product is installed (using the Define Rollup Groups form).

Rollup Groups
Name	Description

9.0 DEFINE PERIOD TYPES

Description: Describes the number of periods and year type for each business calendar. Used to define accounting period types to define your organizational calendar.

Restrictions: None

Name	Periods per Year	Year Type	Description
ADP Month	13	Fiscal
Month	12	Calendar
Quarter	4	Fiscal
Year	1	Fiscal

10.0 DEFINE CALENDAR TYPES

Description: Defines the periods for each calendar. A calendar gets associated with each set of books. Note that the Name column (field) is system generated by Oracle General Ledger using the Prefix column data.

Restrictions: You should define your calendar at least one year before your current fiscal year. You must define your accounting period types prior to defining calendar types.

Name	ADPDS PROD CAL
Description	ADP DEALER SERVICES PRODUCTION CALENDAR

Prefix	Type	Year	Qtr	Num	From	To	Name	Adj
98-01	ADP Month	1998	1	1	01-Jul-1997	31-Jul-1997	98-01
98-02	ADP Month	1998	1	2	01-Aug-1997	31-Aug-1997	98-02
98-03	ADP Month	1998	1	3	01-Sep-1997	30-Sep-1997	98-03
98-04	ADP Month	1998	2	4	01-Oct-1997	31-Oct-1997	98-04
98-05	ADP Month	1998	2	5	01-Nov-1997	30-Nov-1997	98-05
98-06	ADP Month	1998	2	6	01-Dec-1997	31-Dec-1997	98-06

Note that the calendar for the year 1998 is also defined. A calendar should be defined at least one year before the current fiscal year. Defining one year at a time helps the user to be more accurate and reduces the amount of period maintenance that must be done at the start of each accounting period.

The current, prior and immediate future periods should be opened promptly after the calendar is defined. This is one of Oracle Accounts Receivables’ requirements to process and calculate revenue.

Oracle General Ledger accounting periods are opened or closed using the Open and Close Periods form.

The following parameters must be set with appropriate values that reflect the actual data at implementation time when opening accounting periods:

Accounting Period

Latest Open: [display only field] Name of the latest open accounting period. Note that while Oracle General Ledger displays the name of the most recently opened accounting period, this period may have a current status of closed.

Open Next: Yes or No to indicate whether to open the next accounting period

Encumbrance Year

Not applicable

Previous Accounting Periods

Status: Choose one of the following statuses:

Open - Journal entry and posting allowed

Closed - Journal entry and posting are not allowed until accounting period is reopened

Permanently Closed - Journal entry and posting are not allowed. Accounting period cannot be reopened

Oracle General Ledger automatically assigns one of the following statuses to other accounting periods of the calendar:

Never Opened - Journal entry and posting are not allowed. Oracle General Ledger assigns this status to any period preceding the first period ever opened in the calendar, or to any period that has been defined, but is not yet available for Future Entry. This status cannot be changed.

Future Entry - Journal entry is allowed, posting is not. The period is not yet open, but falls within the range of future-enterable periods specified in the set of books.

It is highly suggested that open periods be kept at the minimal number to maximize the efficiency of the Oracle General Ledger posting process, as well as to minimize the possibility of user error.

11.0 ASSIGN SECURITY RULES

Description: Assigns security rules to specific responsibilities.

Restrictions: Rules can be assigned to specific responsibilities or shared by multiple responsibilities. Rules can be assigned for a segment that has an Independent, Dependent, or Table validation type, but you cannot assign rules for a segment with a validation type of None.

Note: No security rules will be created for the accounting flexfield in this configuration. These will be defined after the base product is installed, and all flexfield segments values have been loaded.

Application	Responsibility	Name
Oracle General Ledger
Oracle General Ledger

12.0 DEFINE INTERCOMPANY ACCOUNTS

Description: Used to define intercompany accounts to control Oracle automatic intercompany balancing.

Restrictions: Oracle will post a balancing intercompany amount to an additional account only if the following conditions are met:

1. The source of the journal entry must match the source you specify on this form.

2. The category of the journal entry must match the category you specify on this form.

3. The type of automatic balancing entry (debit or credit) must match the Debit or Credit value you specify on this form.

If you want to define both debit and credit amounts to be posted to one intercompany account, you must define both on this form.

Source	Category	Type	Account
Other	Other	Debit	01.01.0050.0000.230125.00000.000
Other	Other	Credit	01.01.0050.0000.230125.00000.000

13.0 DEFINE SUSPENSE ACCOUNTS

Description: Used to define suspense accounts if you choose to allow suspense posting.

Restrictions: None.

Source	Category	Account
Other	Other	01.01.0050.0000.120500.00000.000

14.0 DEFINE CURRENCY

Description: Used to enable currencies and define non-ISO currencies. All ISO currencies are pre-defined, but they are not initially enabled. Oracle General Ledger is capable of handling multi-currency. However, one currency must be designated as the functional currency for a set of books. This is the primary currency for transactions. All journal entries will interface to the other financial modules such as Account Receivables and Payables using the functional currency.

Ÿ The pre-defined currency codes provided by Oracle for the Financials applications will be used as is.

Ÿ The functional currency used with the “ADP-DEALER SERVICES Set of Books” will be USD (U.S. Dollars). Currencies are enabled/defined in the Define Currency form.

Restrictions: None.

Note: Only those currencies that are currently enabled are listed below.

Code	Name	Enabled
CAD	Canadian dollar	X
STAT	Statistical	X
USD	US dollar	X

Daily Conversion Rate Types

Oracle General Ledger offers three (3) exchange rate types:

- Daily Rates

- Period Rates

- Historical Rates

A Daily Rate is used to perform foreign currency conversion while processing journal entries. Oracle General Ledger uses this rate as the default to convert foreign currency journal entries into functional currency.

Daily rates are defined using the Define Daily Rates form. To set up a daily rate, the following parameters must be defined:

From Currency: [the foreign currency to be maintained]

To Currency: USD - or the defined functional currency

Conversion Date: [desired date]

Conversion Type: Oracle General Ledger offers three (3) pre-defined types as follows:

Spot - market or quoted rate that is applied to the immediate delivery of a currency

Corporate - is used for the same purpose as the Spot exchange rate except that it is a standard market rate determined by management for use throughout the company

User - an exchange rate specified at the time a foreign currency journal entry is entered

Conversion Rate: The conversion rate that Oracle General Ledger will use to convert foreign currency journals into function currency

A Period rate is the daily rate on the last day of an accounting period. It is used primarily to translate asset and liabilities account balances.

A Historical rate is a weighted-average rate for transactions that occur at various times. It is used to translate owner’s equity accounts and specific account such as Inventory.

This configuration does not define any historical rates.

Ÿ The user can define additional types using the Define Daily Conversion Rate Types form.

15.0 DEFINE DAILY CONVERSION RATES

Description: Used to maintain daily conversion rates for any foreign currency you have enabled or defined.

Restrictions: If you do not maintain rates, you can enter your rates manually when you enter your journal entry.

Note: The same conversion rate was used for the entire fiscal year. Rates have been entered for 01-JAN-1998 through 30-JUN-1998.

Currency		Conversion
From	To	Date	Type	CAD To USD	USD To CAD
CAD	USD	30-JUN-98	Corp	.72	1.38888888
CAD	USD	29-JUN-98	Corp	.72	1.38888888
CAD	USD	28-JUN-98	Corp	.72	1.38888888

16.0 DEFINE PERIOD RATES

Description: Used to maintain average, period-end and revaluation exchange rates for any foreign currency you have enabled or defined.

Restrictions: None.

Currency				Period Exchange Rates
		Balance
From	To	Type	Period		Average	End	Revaluation
USD		Actual

17.0 DEFINE HISTORICAL RATES

Description: Used to define historical rates, amounts or weighted-average rates that you want to use to translate both actual and budget account balances.

Restrictions: None.

Functional Currency

USD

Target Currency

Period	Account	Rate	Amount	Rate Type

18.0 DEFINE CONVERSION RATE TYPES

Description: Used to automatically assign a rate when you convert foreign currency journal amounts to functional currency equivalents. You enter daily conversion rates for specific combinations of foreign currency, date, and conversion rate type.

Restrictions: None.

Name	Description
Corporate	Corporate Exchange Rate
Spot	Spot Exchange Rate
User	User Specified Rate

Responsibility Assignment

Ÿ The “Corporate Set of Books” should be assigned to each Oracle Applications responsibility.

To complete the set of books assignment:

1. Change your user responsibility to the predefined System Administrator.

3. Enter GL Set of Books Name in the Option field and Corporate Set of Books in the Value field.

Journal Entry

Journal Entry Sources

Oracle General Ledger uses the journal entry sources to identify the origin of journal entry transactions.

There will be no additional journal entry sources defined for this configuration. The following pre-defined journal entry sources will be used:

Source Explanation

Assets Fixed Assets System

Budget Journals Budget Journals

Carryforward Carry forward journal entry

Consolidation Consolidation system

Conversion Historical data conversion

Encumbrance Manual encumbrance entry

Inventory Inventory control system

Manual Manual journal entry

Manufacturing Manufacturing

MassAllocation Mass Allocation

Other System default

Payables Account Payables system

Payroll Payroll system

Personnel Personnel system

Project Accounting Project Accounting

Purchasing Purchasing

Receivables Account Receivables system

Recurring Recurring journal entry

Revaluation Revaluation journal entry

Revenue Revenue accounting system

Statistical Statistical journal entry

Transfer Budget transfer

Journal Entry Categories

Oracle General Ledger uses the journal entry categories to describe the purpose of journal entries, such as accrual, payments or receipts.

There will be no additional journal entry categories defined for this configuration. The standard journal entry categories pre-defined in Oracle General Ledger will be used as is. Following is the list of these categories:

Source Description

Accrual Month end accrual entry

Adjustment Adjusting journal entry

Allocation Allocation

Budget Budget

Carryforward Carry forward journal entry

Chargebacks Chargebacks

Consolidation Consolidation

Credit Memo Applications Credit memo applications

Credit Memos Credit memos

Debit Memos Debit Memos

Deferred Depreciation Deferred depreciation

Depreciation Depreciation

Discounts Discounts

Exchange Gain/Loss Gain or loss from foreign currency

Freight Freight

Headcount Statistical entry for headcount

Labor Cost Labor Cost

Misc Receipts Miscellaneous receipts

MTL Material transactions

Other Default - required by intercompany contra logic

Payments Payments

Payroll Payroll distribution entry

Purchase Invoices Account Payable invoices

Purchases Purchase Orders

Rate Adjustments Rate adjustments

Receipts Cash Receipts

Reclass Reclassification journal entry

Requisitions Requisitions

Revaluation Revaluation journal entry

Revenue Revenue

Sales Invoices Account Receivable invoices

Tax Tax journal entry

Trade Receipts Trade receipts

Usage Cost Usage cost

WIP Work in process

Journal Entry Formula

Oracle General Ledger journal entry creation is a very flexible process. It supports a variety of entry methods. Depending on the accounting needs, the user can create allocation, recurring, reversing, statistical, skeleton or manual journal entries.

Discussion of these methods is beyond the scope of this configuration manual. The intention here is to present the Oracle General Ledger feature which satisfies the need of having a formula defined for use in recurring journals.

A recurring journal entry is used for an entry that repeats each accounting period or on a regular basis. There are two types of recurring journal entries:

- Same account, same amount each month. For example, lease expense, equipment straight line depreciation, etc.

- Same account, different amount each month. For example, employee travel expenses, etc.

Recurring journal entry formula is defined via the Define Journal Entry Formula form.

This configuration does not define any recurring journal formula.

Posting

Summary Accounts

Ÿ A summary account is an Accounting Flexfield whose balance is the sum of several detailed Accounting Flexfields.

Ÿ There will no summary accounts created for this configuration.

Ÿ Should summary accounts be needed, the user can define them using the Define Summary Accounts form.

Intercompany or Interfund Accounts

There will be no intercompany or interfund accounts defined for this configuration.

Suspense Accounts

There will be no suspense accounts defined for this configuration.

Automatic Posting Options

Ÿ Oracle General Ledger provides the user with a facility for specifying journal batches for automatic posting. The application periodically checks to see if there are unposted journal batches with a given source, period, and balance type.

For example, if the user entered a batch level control total for a journal batch, Oracle General Ledger posts only those journal batches whose running debit total equals the batch level control total. Unposted batches matching this criteria with the highest priority are selected for posting.

Ÿ This configuration does not specify any automatic posting options. However, they can be easily set up using the Define Automatic Posting Options window with the following consideration:

Priority: The priority in which Oracle General Ledger’s Automatic Posting Program choose unposted batches for posting. Posting Priority ranges from 1 to 99, where 1 is the highest priority and 99 is the lowest. Batches with the highest posting priority are posted first.

Source: The journal source associated with the unposted batch that will be selected for posting. Any or All journal batch sources can be specified.

Balance Type: The balance type associated with the unposted batch that will be selected for posting. Options are Actual, Budget, or Encumbrance balance type. Any or All can be specified.

Period: The accounting period of the unposted batches. Any or All can be selected.

Oracle General Ledger verifies that the selected batches are postable before submitting it for processing. The user can post actual batches to open accounting periods, budget batches to periods in open budget years, and encumbrance batches to any period through the last period in the latest encumbrance year.

System Options and Parameters

Statistical Units of Measure

Units of measure should be defined for the applicable accounts to support journal entries.

Optimizer

Optimizer is an Oracle General Ledger program that should be run:

- Periodically (once a period), or

- Any time a large number of Accounting Flexfield segment values added, or

- A new chart of accounts defined, or

- Summary templates added or deleted from the system to keep the data current.

The optimizer creates or drops indexes for those segments in the chart of accounts that are marked for indexing. Furthermore, the Optimizer stores statistical information about the data such as the size of the balances and combination table, number of Accounting Flexfield combinations that have a particular segment value and the number of account balances associated with each accounting period. This information helps the journal entry posting and financial reporting processes run faster.

Archive and Purge Options

Oracle General Ledger can be set up to archive and purge actual balances, as well as actual journal batches, entries, lines and associated journal references for a range of permanently closed accounting periods.

Although, Oracle General Ledger allows archiving and purging of account balances or journal entry records to be carried out at the same time; it is strongly recommended that these two processes are executed in separate steps to ensure that critical data are processed, archived, purged and monitored accurately.

To set up these options, navigate to the Archive and Purge Options form and specify the following parameters:

Archive and Purge Window

Set of Books Name: Corporate Set of Books

Archive and Purge Details: Choose one of the following options:

Journals Zone - archive and purge actual journal details and associated journal preferences, if applicable, or

Balances Zone - archive and purge actual account balances

Journals Window

Fiscal Year: [display only] Oracle General Ledger automatically displays the earliest fiscal year in the specified set of books that has not already been successfully archived and purged. Archiving and purging must be done one year at a time in successive order.

Journal Type: [display only] The type of journal entry to be archived and purged

Save Old Journals: Enter Yes to archive journal batches, entries, lines and references for the fiscal year specified

Delete Old Journals: Enter Yes to purge journal batches, entries, lines and references for the fiscal year specified

Balances Window

Balance Type: [display only] Type of balance to be archived and purged

Save Old Journals: Enter Yes to archive account balances for the fiscal year specified

Delete Old Journals: Enter Yes to purge account balances for the fiscal year specified

The following steps must be completed before archiving or purging account balances or journal details for a fiscal year in cases where restoration is needed:

- Permanently close all periods for the intended fiscal year

- Run all standard, and others if any, accounting reports to maintain a printed record of the transactions to be archived and purged

- Back up the database

Concurrent Program Controls

The performance of certain Oracle General Ledger programs, including Journal Import and Mass Allocations, can be controlled by varying the amount of disk space and system memory used.

Concurrent program controls are defined via the Define Concurrent Program Controls window.

The control options are set as follows:

Number of Journal Lines to Process At Once: 1000

Number of Accounting Flexfield in Memory: 500

Control Segment: Account Number

Save Journal Import Data: Yes

Budgets

Budget Organizations

Budget organizations are required when defining and performing subsequent operations on budgets in Oracle General Ledger.

For this configuration, a budget organization is defined as follows:

Note the following fields:

Ordering Segment: [display only] Account Number segment of the Corporate Accounting Flexfield

Display Sequence: Oracle General Ledger automatically opens a pop-up window with the Accounting Flexfield segments of the Corporate Accounting Flexfield structure. After each segment name, enter a unique sequence number as follows:

Division 1

Company 2

Cost Center 3

Account Number 4

Sub-Account 5

Corporate-defined 6

Project 7

Click on the Range button to open the Account Ranges window to define the range of account for this budget:

Click on the Assignment button to open the Account Assignment to define budget account assignments for this budget:

Once the definitions are completed, click on the Maintain button to launch the Maintain Budget Organization program to complete the configuration.

Budget Organization Maintenance

Oracle General Ledger offers a feature that lets the user automatically maintain the Accounting Flexfield assigned to budget organizations, as well as delete an old budget organization in a single step.

This feature is implemented via the following two (2) programs that can be executed from the Run Reports form:

- Maintain Budget Organization

- Delete Budget Organization

Define Budget

New budgets are created or existing budgets are maintained in Oracle General Ledger via the Define Budget form.

This configuration does not include any predefined budget.

Upload Budget

Oracle General Ledger provides processes to upload budget data and analysis from the following sources:

- Spreadsheet tools such as Lotus 1-2-3 using Oracle database add-in for Lotus 1-2-3 (Oracle for 1-2-3). Additionally, Oracle provides for budget upload into Microsoft Excel through Oracle’s General Ledger Desktop Integrator

- SQL*Calc

- Flat files via SQL*Loader

All of these processes are initiated from the Upload Budgets form with the following parameters:

4.2 COMPANY SEGMENT VALUES

1XXXXX

4.6 PRODUCT/PROJECT SEGMENT VALUES

4.7 MANUFACTURER SEGMENT VALUES

X