Tài liệu Oracle General Ledger Guide docx

®
Oracle
General Ledger
Guide
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®
Oracle
General Ledger
Guide
Melanie Anjele Cameron
New York Chicago San Francisco
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ISBN: 978-0-07-162230-1
MHID: 0-07-162230-6
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or cause arises in contract, tort or otherwise.
For Bill, whose support and love made this book possible.
About the Author
Melanie Anjele Cameron has
dedicated her career to improving
business processes and business
systems, especially in the areas of
finance and accounting. Always a

strong believer in the sharing of
knowledge about computer systems
and how to use them, she has been
the chairperson for the AZOAUG,
the Phoenix-area Oracle applications
users group, for the past seven
years, participating not only in
scheduling the events but also as a
lecturer. Her career has taken her
from a transaction processing clerk
to an executive during an IPO, as
well as co-owner of her husband’s
business, giving her a well-rounded
and in-depth knowledge of business,
from detailed transactions to their broader impact on the business itself. Lucky to find
an organization where this breadth of knowledge can be used to assist other
companies, Melanie now manages the E-Business Suite practice at MSS Technologies,
Inc. (www.MSSTech.com).
While participating in the high-tech world of business, Melanie keeps her feet firmly
planted in the low-tech world of needlework, spending most of her nonworking hours
knitting and creating pieces of art with a needle, including needlepoint and Japanese
embroidery. This, combined with a love for good food and cooking, helps to keep the
pressures of our high-tech society at bay. Melanie lives in Scottsdale, Arizona, with her
husband, Bill, and two dogs, Josie and Yuki.
About the Technical Editor
Colin Terry is a Chartered Management Accountant who currently works as an
independent consultant in the ERP software and associated applications arena. Relying
on his accounting background, his primary area of expertise is financials applications,
and most of his experience has involved the Oracle E-Business Suite. He does, however,
have a strong understanding of much of the Oracle E-Business Suite product set and has

had exposure to a number of other software applications, both COTS and proprietary.
Since originally transferring from the accounting function to information systems
and technology some fifteen years ago, Colin’s roles have encompassed business
process design, applications configuration, training, test execution and management,
data migration, and support. He has been engaged to work for companies in a wide
range of industry sectors, including aerospace and defense, software publishing and
distribution, and public transport. Colin is an active member of the UK Oracle User
Group and currently sits on the committee of the Financials Special Interest Group.
Contents at a Glance
PART I
General Ledger: Concepts, Setups, and Processing
1 Business Considerations for New Implementations . . . . . . . . . . . . . . . . . . . . . . . 3
2 Business Considerations for Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3 Setup Considerations: New Implementation and Upgrades . . . . . . . . . . . . . . . . . 25
4 General Ledger Setups and Maintenance: Step by Step . . . . . . . . . . . . . . . . . . . . 35
5 Transaction Processing and Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
6 Financial Statement Generator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
7 Consolidations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
8 Budget Tracking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
9 Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
10 Reporting, Inquiry, and Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
11 Monthly Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
PART II
Subledger Accounting: Concepts and Setups
12 Subledger Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
13 Subledger Accounting Seeded Setups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
14 Subledger Accounting Modified Setups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
vii

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Contents
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii
PART I
General Ledger: Concepts, Setups, and Processing
1 Business Considerations for New Implementations . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Chart of Accounts and Ledgers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Business Process Reengineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Customizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Data Conversions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
General Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Fixed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Manufacturing and Purchasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Conversion Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Accelerator Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Consistency and Data Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2 Business Considerations for Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Reimplement vs. Upgrade? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Instances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Current System Version . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Data and Setup Accuracy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Customizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
System Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Considerations During the Project and Post-Production . . . . . . . . . . . . . . . . . . . . . . . . 18
Planning for the Upgrade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
ix
x Oracle General Ledger Guide
R12 Specific Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Ledgers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Subledger Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
ADI Differences and FSG Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3 Setup Considerations: New Implementation and Upgrades . . . . . . . . . . . . . . . . . . . . . 25
Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Descriptive Flexfields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Journal Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Calendars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Securing the General Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Setting Up Access Sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Year-End Processing Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
4 General Ledger Setups and Maintenance: Step by Step . . . . . . . . . . . . . . . . . . . . . . . . 35
The Account Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Setting Up the Accounting Flexfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Adding Segments to the Accounting Flexfield . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Creating a Value Set for the Accounting Flexfield . . . . . . . . . . . . . . . . . . . . . . . 40
Adding Information on the Segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Adding and Maintaining Values for Your Accounting Segments . . . . . . . . . . . . 44
Viewing and Maintaining Account Hierarchies for
Parent/Child Relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Account Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Correcting Accounts Set Up Incorrectly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Custom Segments for Tracking Additional Data (Optional) . . . . . . . . . . . . . . . . . . . . . . 55
Calendars (Required) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Calendar Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Calendars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Validating Calendars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Changing Your Fiscal Year End . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Special Calendars for Average Balance Calculations . . . . . . . . . . . . . . . . . . . . . 59
Currencies (Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Journal Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Journal Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Journal Categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Enabling Automatic Posting and Reversals . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Journal Approvals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Ledger and Legal Entity Setups (Required) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Setting Up Legal Entities (Conditionally Required) . . . . . . . . . . . . . . . . . . . . . . 68
Setting Up Ledgers (Required) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Required Profile Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Inter- and Intracompany Setups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Secondary Ledgers (Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Additional Secondary Ledger Setup Options . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Restricting and Grouping Data (Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Ledger Sets to Group Ledger Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Data Access Sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Contents xi
Document Sequences: Additional Setups (Required If Using Sequencing) . . . . . . . . . . . 88
Defining Sequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Assigning Sequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Additional Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Defining Security Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Assigning Security Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
General Ledger Profile Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
5 Transaction Processing and Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Subledger Transaction Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Procure to Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Order to Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Journal Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Importing Journals from Third-Party Sources or Subledgers . . . . . . . . . . . . . . . . 106
Manual Journal Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Attachments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Journal Wizard–Web ADI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Posting Journals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Reversing Journal Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Allocation and Recurring Journals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Account Reconciliations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Copying Journal Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Tying It All Together . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
6 Financial Statement Generator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
FSG Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Report Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Row Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Column Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
Restricting Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Ordering Detailed Account Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Display Options to Control Rows and Columns Displayed on a Report . . . . . . . . . . . . 146
Display Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Display Sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Putting It All Together . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Report Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Copying in the Same Instance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Copying from One Instance to Another . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Standard Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Running FSG Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

Report Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
7 Consolidations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Consolidation Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Ledger Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Consolidation Hub . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Setups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Defining the Consolidation Definition and Mapping . . . . . . . . . . . . . . . . . . . . . 161
Defining Mappings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Defining Consolidations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Combining Consolidations into Sets for Processing . . . . . . . . . . . . . . . . . . . . . . 164
xii Oracle General Ledger Guide
Performing Consolidations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
8 Budget Tracking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Budget Setups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
The Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
The Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
Advanced Features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Loading Budget Data into EBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Budget Amount Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Budget Journals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Budget Wizard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Freezing Budget Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
Annual Budget Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
Forecasting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Encumbrances and Budgetary Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Setups for Encumbrances and Budgetary Controls . . . . . . . . . . . . . . . . . . . . . . 181
Using Encumbrances and Budgetary Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Creating Encumbrance Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Performing Funds Checking on Manual Journal Entries . . . . . . . . . . . . . . . . . . . 189

Funds Inquiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
9 Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
Types of Currency Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
Foreign Currency Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
Translations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
Revaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Currency Setups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Running a Translation for Balance Level Reporting Currencies . . . . . . . . . . . . . . . . . . . 198
Performing Revaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Defining Revaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Running Revaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
10 Reporting, Inquiry, and Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
Grouping Requests to Run Together . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
Running Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Programs That Update Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Listings of Setup Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
Transactional Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Purchasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Other EBS Subledgers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Inquiry and Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Contents xiii
11 Monthly Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
Subledgers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224

Subledger Closing Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
Opening and Closing Periods in the General Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
PART II
Subledger Accounting: Concepts and Setups
12 Subledger Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
SLA Upgrade Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
Defining Subledger Accounting Step-by-Step . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
13 Subledger Accounting Seeded Setups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
Defining Subledger Applications (Seeded for EBS Subledgers) . . . . . . . . . . . . . . . . . . . 236
Building the Accounting Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
Defining Subledger Accounting Events (Seeded for EBS Events) . . . . . . . . . . . . 237
Creating Entities in the Event Modeler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
Adding Process Categories (Seeded) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
Identifying Transactions and Their Associated Database Columns (Seeded) . . . 240
Subledger Sources (Seeded for EBS Subledgers) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Validating Event Class Options (Seeded for EBS Subledgers) . . . . . . . . . . . . . . . 241
Reviewing and Modifying Journal Entry Setups (Seeded) . . . . . . . . . . . . . . . . . . . . . . . . 242
Journal Line Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
Journal Descriptions (Seeded) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
14 Subledger Accounting Modified Setups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
Mapping Sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
Value Sets Set Up for Use in Mapping Sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
Creating Mapping Sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
Account Derivation Rules for Building the Account Strings . . . . . . . . . . . . . . . . . . . . . . 251
Adding Reference Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Putting All the Data Together . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
Journal Line Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
Recap of Setups So Far . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
Application Accounting Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
Subledger Accounting Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262

Ledger Setups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
Assigning Subledger Accounting Methods to a Ledger . . . . . . . . . . . . . . . . . . . 263
Creating Ledger Accounting Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
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Acknowledgments
hen acknowledging all the people involved in getting a book from concept
to print, the list can be longer then the book itself! But there are always a
few who stand out in the task, both directly and indirectly. My parents, by
always instilling in me that I could accomplish anything, have to top that
list. My Mom, a lifelong Teacher, is still a driving force behind my wanting
to always learn more and find that ever-elusive answer to Why and then turning around
and sharing the answer with anyone who wants to listen. My husband, in a much more
subtle way, is always watching my back and looking out for me while I push forward in
my endeavors.
Every technical author has two groups of people assisting to get the concept to market.
The first is composed of the editors at their publisher, and Lisa McClain and her staff have
been about as helpful and patient as any author can ask for. From late-night panic e-mails
to re-explaining the formatting requirements yet again, these saints all deserve halos.
Second are their technical editors. Colin Terry took the time to review and ensure that
this book brought you not only accurate information, but also complete information
in a logical order.
The drive to write came at an early age, starting around eighth grade, and never left
me. It was the encouragement of both past and current mentors who have kindled that
flame and given it the sparks it needed to move forward and never die. Becky Tipton is
such a person, showing me that writing and work do not have to be mutually exclusive.
Mike Hawksworth, owner of MSS Technologies, is another, always there to remind me
that yes, you can reach for the stars and even get there. No book is written alone, for
it is the experiences of the author’s life that are combined to make it happen. Thank you,

everyone, for these experiences.
W
xv
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Introduction
rom being a user to an implementer, an executive to a clerk, I am a firm
believer in utilizing business systems to achieve the wealth of information
required to run businesses today. The systems that support corporations
today are not the columnar ledgers of our ancestors. They are robust and
provide in-depth insight into an organization—that is if you can figure out
what they do and how to do it. As a user of Oracle E-Business Suite, I was often frustrated
by the lack of information surrounding specific functionality or fields. I have spent hours
or, in a few cases, years, acquiring the information I needed to incorporate a specific
functionality into my company’s processes so we could improve not only the information
but also the timeframe the information was available in. The intent of this book is not
to gloss over what a Ledger is or the new features Subledger Accounting provides; it is to
give detailed insight into how to set up and process transactions in E-Business Suite to meet
your company’s specific business needs. During the processing steps, references back to
setups are made so you know where options exist for processing to meet your specific
needs. While functional users at all levels were my main focus when writing the book,
support analysts and programmers will also greatly benefit from it. The setups are usually
done by consultants, who then walk out the door with all the knowledge, and this book
will assist in delivering some of that knowledge back to the company itself and just may
prevent a customization or two for a functionality that already exists, just begging to be
found and used.
This book, while designed to be read from cover to cover, is also self-inclusive for each
section, allowing the reader to go directly to a particular section and not be referenced
back to other areas for more information. For Oracle or industry-specific terms, a glossary
at the back is included for rapid access. Besides being a step-by-step and field-by-field
how-to guide, this book includes many business considerations to think about during an

implementation, upgrade, and beyond.
F
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PART
I
General Ledger: Concepts,
Setups, and Processing
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CHAPTER
1
Business Considerations
for New Implementations
3
4 Oracle General Ledger Guide
n enterprise resource planning (ERP) system is the backbone of knowledge for any
organization, sending and receiving information along its nerves to each corner of
the company. As with all living organizations, it will continue to grow, in a fashion
that is both controlled and uncontrolled, and will require care and feeding
throughout its life cycle. That life has many stages, as do all lives, beginning with
birth (implementation), moving into the terrible twos of post–go live, and taking on the wonder
of a child in a new world, gathering and supplying information as it moves throughout its world.
Once it passes puberty, it will continue to gather and process knowledge, but at some point, it
becomes historical, living in the past and not quite keeping up with the current world. This
uncontrolled growth can be tamed and shaped to the needs of an organization with a little care
and feeding, which will take knowledge and understanding—not only of the system itself, but
of an organization’s information needs. This book is intended to assist with the stages of an ERP
life cycle, providing the system knowledge required to shape its growth and control the data it
processes and shares with the organization.
A new implementation of any system involves many decisions surrounding the project itself

and the system setups. Some decisions, such as Ledgers, are specific to the Oracle E-Business
Suite (EBS), while others, like testing, are software agnostic. Understanding what these decisions
are can help to streamline the implementation and keep it contained. This chapter, designed more
as a discussion guide than a how-to, talks about both system-specific and general implementation
considerations and their impact on the project.
Chart of Accounts and Ledgers
One of your most important decisions will concern the Chart of Accounts and Ledgers. If you are
integrating EBS modules with another General Ledger system, utilizing the Chart of Account format
and numbering from that system can reduce cross-referencing requirements and reconciliation
time between the two systems. If EBS will be your General Ledger, then taking the time to
understand what data needs to be tracked on Financial Statements, and what data can be tracked
in the submodules, such as Accounts Payable, is a critical first step. Ledgers control the General
Ledger basic rules regarding calendars, currencies, accounting transactions from subledgers such
as Payables, and the chart of accounts. In order to make valid decisions, you must first understand
the options EBS offers for the Chart of Accounts and Ledger options.
Basics
Ledgers (known as Sets of Books in previous releases) are set up to group companies that share
the same Chart of Accounts, Calendars, Currency, and aCcounting Methods. Previously called the
3 C’s of EBS, this phrase has changed to the 4 C’s in R12. (Yes, accounting starts with an A—these
are programmers—what do you expect?) Accounting methods, set up as Subledger Accounting
(SLA) processes in the subledgers, determine how transactions from each subledger, such as
Payables, are accounted for in the General Ledger. Ledgers, which determine how transactions
are grouped and processed, have Legal Entities assigned to them. Legal Entities, in general,
correspond to your organization’s legal, or tax, status. Each Legal Entity needs to be assigned
a different tax identification number for reporting and to meet SEC and GAAP requirements.
A Legal Entity can be assigned to only one Ledger.
The Chart of Accounts, called the General Ledger Key Flexfield in EBS, consists of the different
segments that make up your account combination. Some of these segments, such as a segment for
Plant number, have no significance in how the system behaves other than to store transactional
A

Chapter 1: Business Considerations for New Implementations 5
data separated by plant. Other segments, such as the Balancing Segment, greatly impact how the
system works, because all debits and credits associated with any value in the Balancing Segment
must net to zero. EBS requires that a Balancing Segment and a Natural Account be assigned to
every chart of accounts. A Cost Center, used to track departmental expenses, is only required
when Oracle Assets is implemented. Optionally, Intercompany, Management, and Secondary
Tracking segments, as well as other segments your business may require, can be added to make
up the entire Accounting Flexfield. The legal requirements and business needs of these four things
(Ledgers, Legal Entities, Segments to your Chart of Accounts, and Accounting Methods) determine
how you will set up these basic components of your system.
Legal Entities
As seen in the accompanying illustration, starting at the top, the Legal Entity’s main function is to
combine multiple Ledgers for Tax Reporting. The formal definition of a Legal Entity is an entity
that owns assets, records sales, and makes purchases. Ledgers, along with security rules for
Balancing Segments and Data Access Sets, can restrict access and provide security within the
General Ledger.
Within your Chart of Accounts, the Balancing Segment enables you to create Trial Balances
for individual units of business, while the Management Segment assists in creating Management
Reports for different units. The Balancing Segment’s main function is to ensure all debits and
credits entered to the same Balancing Segment value net to zero, while the Management
Segment’s main function is to enable Data Access Sets to be created to limit access to data
within a specific ledger.
6 Oracle General Ledger Guide
Operating Units
Operating Units do not affect the General Ledger setups per se, but they do control how subledgers
segregate data, and while each Operating Unit can only be assigned to one Ledger, each Ledger
can have multiple Operating Units.
Within EBS, you will see that many key setup decisions can be changed once transactions
have been processed, but with varying degrees of difficulty. Some of these core decisions made
at this early level cannot be changed, or only with a large amount of custom programming that is

not supported by Oracle. For example, once an Operating Unit has been created and assigned to
a Ledger, the assignments cannot be changed to a different Ledger. New Operating Units can be
added to each Ledger, but the existing ones cannot be changed and assigned to a new Ledger.
Keep this in mind when making decisions, and ensure you understand the impact of a changed
decision both during an implementation and after the go live.
Calendars
Calendars in EBS relate to the fiscal year of an organization and control the Period, Quarter, and
Year to Date balances stored in the tables, as well as when the Income and Expense accounts
will clear out and post to Prior Year Retained Earnings. Once set, calendars are difficult, but not
impossible, to change. When only some of the core financial modules are implemented, such as
Purchasing, Payables, Receivables, and General Ledger, it is possible to create custom code to
change the calendar beginning and ending periods.
EBS does not allow changing the number of periods associated with a calendar, but it is possible
to create one-day dummy periods to “trick” EBS into behaving as if a fiscal year ends prior to the
end date. In this way, the periods are still used in the system, but with no corresponding transactions.
A last option, leaving the current Ledger as is and setting up a Secondary Ledger with a different
calendar for reporting, is also an option that provides the least amount of risk, but also the least
amount of functionality.
None of these changes are supported by Oracle except the last, but in reality all are made by
companies who decide that the risk outweighs the time and expense of reimplementing, which is
Oracle’s recommended way of changing your calendar. When modules such as Assets, Projects
Accounting, and Manufacturing are involved, reimplementation becomes the only reasonable
option to change a fiscal year end. Looking at how periods are opened and closed in Assets
helps us understand why. Asset periods cannot be closed without running depreciation and thus
creating actual depreciation transactions for these periods, making them no longer “dummy”
periods for Assets.
Average Balances
Another decision that needs to be made for an implementation is whether or not to use Average
Balances in the General Ledger. EBS tracks specific actual balance data in tables for reporting
purposes. They include Period, Quarter to Date, and Year to Date net debits and net credits, as

well as Beginning balances for the Fiscal Year, Period, and Quarter. When the Average Balance
feature is turned on, individual transactions are stored in a transactional table, allowing the
tracking of daily transactions and creating average balances. The major things to be aware of when
deciding if Average Balancing is going to be used relate to specific functions of EBS that will no
longer be available once it is turned on. Budgetary Controls, which usually works in conjunction
with Encumbrances to create controls on purchases and expenditures over a specific budgeted
amount, cannot be used if Average Balances are turned on. Since you cannot enable or disable
Average Balancing once the Ledger is saved, the decision to use it needs to be made before the
setups are completed.