Oracle General Ledger > Recurring Journals (GL)

How to create Recurring Journals in Oracle Journal Ledger (GL)

Oracle General Ledger > Recurring Journals (GL)

A recurring journal entry is a journal entry that is recorded in every accounting period. For example, a company issuing monthly financial statements might record depreciation by debiting Depreciation Expense for $3,000 and crediting Accumulated Depreciation for $3,000 each and every month.

Types of Recurring Journals:

1.   Skeleton Journal:
2.   Standard Recurring Journal
3. Recurring Journal Formula

Skeleton Journal Entries:

 Skeleton entries affect the same accounts each period, but have different posting amounts. After you generate skeleton journal entries, you can edit the unposted journal batch using the Enter Journals form and enter the journal line amounts.

Skeleton journal entries are useful with statistical information whenever you want to record journals for actual transactions based on statistical amounts, such as headcount, units sold, inflation rates, or other growth factors. For example, if you want to enter headcount for each cost center every period, you can define a skeleton entry with your headcount accounts. After you generate the skeleton entries, enter the actual headcount amounts before posting the batch.

Standard Recurring Journal Entries:

Standard recurring journal entries use the same accounts and amounts each period.

Recurring Journal Formula Entries:

 Formula entries use formulas to calculate journal amounts that vary from period to period.

Creating Recurring Journal Entries:

Navigation: GL> Journals >Define>Recurring

• Navigate to the Define Recurring Journal Formula window.
• Enter a Name and optional Description for the recurring journal batch.
• If you want to copy entries from an existing recurring journal batch to your new batch, choose Auto Copy Batch.
• Create recurring journal entries for the batch. If you copied entries, modify them, if necessary.
• Save your work.
• Generate recurring journals.
• Review and post your generated recurring journal batches

To enter a recurring journal entry line:

1. Navigate to the Define Recurring Journal Formula window.

2. Enter or query the batch name and the journal entry name.

3. Choose Lines.

4. Enter a Line number to set the order of your recurring journal entry lines. You can indicate an automatic offsetting line for your recurring journal entry by entering the line number 9999.

5. Enter the Account you want General Ledger to update when you generate and post your recurring journals.

6. Enter an optional Line Description for the recurring entry line.

7. Enter a Formula for the line.

8. Enter the remaining lines for the recurring journal entry. Remember that you can use line number 9999 as the automatic offsetting line for each recurring journal entry.

9. Save your work.

Skeleton Journal, Standard and Formula Journals are creating with the same process. In Skeleton Journal enter the lines and in standard Journals enter lines and amount that will be the same each month and in Formula Journal line formulas are used in the lines and these formulas are based on the requirement of the Journals.

Oracle General Ledger > Security Rules

How to define Security Rules in Oracle General ledger (GL) R12

Oracle General Ledger > Security Rules

You can define security rules for each segment or report parameter for which you want to restrict data entry. Within a rule, you specify ranges of segment values to include and exclude from use. You can create many rules for the same segment or parameter, and assign the rules to different responsibilities. You also define the error message you see if you try to enter a value for which you do not have access. If you define no security rules for a segment, you can enter any value you have defined into that segment.

Create Ranges of Approved Values

Since you include or exclude values by ranges, you should plan your segment values carefully to make security rules easy to define. Organizing your values in ranges or "chunks" of related values helps you keep your security rules simpler (and helps keep cross-validation rules simpler as well).

Suggestion: We recommend that you define many rules that each have few rule elements rather than a few rules that each have many rule elements. The more rules you provide, the more specific you can make your message text.

Following is the steps to create define security rules.

1.          Defining Security Rules
2.         Defining Security Rule Elements
3.         Assigning Security Rules

1- Define Security Rules

Navigation: General Ledger > Setup > Financial > Flexfield > Key > Security > Define.

1. In the Segment Values block, identify the value set to which your values belong. You can identify your value set or by the flexfield segment or concurrent program parameter that uses the value set.

2. In the Security Rule region, enter a name and description for your security rule.

3. Enter a message for this security rule. This message appears automatically whenever a user enters a segment value that violates your security rule.

4. Define the security rule elements that make up your rule. See: Defining Security Rule Elements.

5. Save your changes.

2- Define Security Rule Elements

You define a security rule element by specifying a value range that includes both a low and high value for your segment. A security rule element applies to all segment values included in the value range you specify.

You identify each security rule element as either Include or Exclude, where Include includes all values in the specified range, and Exclude excludes all values in the specified range. Every rule must have at least one Include rule element, since a rule automatically excludes all values unless you specifically include them. Exclude rule elements override Include rule elements.

You should always include any default values you use in your segments or dependent value sets. If the default value is secured, the flexfield window erases it from the segment as the window opens, and the user must enter a value manually.

If you want to specify a single value to include or exclude, enter the same value in both the Low and High fields

To define security rule elements:
-- In the Security Rule Elements block, select the type of security rule element. Valid
types are:
Include Your user can enter any segment value that falls in the
following range.
Exclude Your user cannot enter any segment value that falls in
the following range.
-- Enter the low (From) and high (To) ends of this value range. Your value does not
have to be a valid segment value.

3- Assigning Security Rules:

1. Navigate to Assign Security Rules window.
2. In the Assign Security Rules block, identify the value set to which your values belong. You can identify your value set or by the flexfield segment or concurrent program parameter that uses the value set.
3. In the Security Rules block, enter the application and responsibility name that uniquely identifies the responsibility to which you want to assign security rules.
4. Enter the name of a security rule you want to assign to this responsibility.
5. Save your changes.

Oracle General Ledger > Security Rules :REF

Features of Oracle General Ledger

Following are the features of Oracle General ledger.

§  Enable Average Balance Processing for Specified Sets of Books

If you want to use average balance processing in General Ledger, you must enable the functionality for a specific set of books. With this feature, you can enable average balance processing only for those sets of books that require it. This ensures that you incur no additional overhead unless you need average balance processing

§  Capture Average Balances

General Ledger calculates and stores the necessary aggregate balance information needed to compute average balance amounts as of any day in the year.

§  Effective-Date Transaction Processing

A transaction's effective date determines which end-of-day and aggregate balances are updated by General Ledger. These balances, in turn, determine the calculated values of your average balances.

§  Transaction Calendar Control

Certain organizations that need average balance processing, such as financial institutions, are required to post transactions only on business days. Posting on weekends or holidays is not allowed, although some organizations do post period-end accruals on non-business days.

§  Control Transaction Balancing by Effective Date

Normally, General Ledger requires that total transactions balance for an entire period. When average balance processing is enabled, the system checks total transactions for each effective date to ensure that debits and credits balance. When they do not, General Ledger rejects the transactions, or, if you have enabled suspense posting, the system creates a balancing entry to the suspense account

§  Allowing Back-Value Transactions

You can post transactions with effective dates prior to the current date. When you do so, the effect on average balances is determined by the effective date, rather than the system or current accounting date. General Ledger adjusts the ending and aggregate balances of the affected accounts as of the effective date and all subsequent dates.

§  Maintain Averages for Summary Accounts

If you use summary accounts, and choose to enable average balance processing, General Ledger will maintain average, as well as standard, balances for your summary accounts. General Ledger automatically updates your summary average balances, as well as the standard average balances. You can use summary average balances in allocations and financial reports.

§  On-line Inquiry

You can use the Average Balance Inquiry form to review on-line information about the average or end-of-day balance of any balance sheet account. You can view summary or detail balances, as well as drill down from your summary balances to see the detail. Also, you can customize your view of the average and end-of-day balances to show only the information you want, in the order you want it.

§  Standard Reports

General Ledger provides two standard average balance reports:

• Average Balance Trial Balance--displays standard and average balances for selected accounts, as well as period, quarter, and year average-to-date balances, for any as-of date you specify.

• Average Balance Audit Report--displays the detail activity used to create aggregate balances and related average balances maintained by General Ledge

§  Custom Average Balance Reports(FSG)

With General Ledger's Financial Statement Generator, you can design custom reports that use average balances. You can even create reports which include average and standard balances.

§  Allocations and Recurring Journal Formulas

With average balance processing enabled, you can use average balances as input to any formulas you use to create MassAllocations, MassBudgets, and recurring journals. You can use any of the three average balance types (Period, Quarter, or Year Average-to-date), as well as end-of-day balances.

§  Multi-Currency Accounting

General Ledger fully supports using average balances for foreign currency conversion, revaluation, and translation. General Ledger maintains average and end-of-day balances for all of your transaction currencies, as well as your functional currency

§  Consolidation

General Ledger fully supports using average balances for consolidations, including both the transactions consolidation method and the balances consolidation method. You can consolidate average balances from different sets of books, using different currencies, calendars, and charts of accounts.

Oracle General Ledger - How to Freeze the journal sources in Oracle General Lodger (GL):

Oracle General Ledger (GL)

How to Freeze the journal sources in Oracle General Ledger (GL):

Freeze journals imported from subledgers to prevent users from making changes to any journals that have been transferred to General Ledger from that source. This ensures that transactions from your subledger systems reconcile with those posted in General Ledger.

Navigation: GL > Setup>Journal>Sources

·      Select Journal that is required to freeze

·      Description if required

·      Select to Yes to freeze the Journal

·      Save

Oracle Journal Approval and How to enable GL Journal Approvals

Oracle General Ledger (GL)

Oracle Journal Approval and How to enable GL Journal Approvals

Journal Approval feature to ensure that journal entries and batches are approved by appropriate management personnel before the journals can be posted to your account balances.

 

Following are the steps to enable journal approval

 

1.     Enable Journal Approval for your set of books

2.     Specify journal sources that require journal approval

3.     Create an approval hierarchy

4.     Define authorization limits

1: Enable Approval while defining setup books

You need to enable Journal approval from the Accounting setup while.

2: Defining Journal Sources

Journal sources identify the origin of your journal entries. General Ledger supplies a number of predefined journal sources. In addition, you should define at least one journal source for each of your own, non-Oracle feeder systems to help you track imported journal entries.

3:Create an approval hierarchy

When you enter an employee, you also enter the employee's supervisor or manager name. The supervisor is the default next approve for journal entries and batches. Likewise, the supervisor's manager is the next approver after the supervisor.

4: Define authorization limits:

Navigate to the Journal Authorization Limits window.

·    

•     Select Ledger name
•         Employee to define limit
•         Enter authorization limit.

Oracle General Ledger > Cross-Validation Rules

Oracle General Ledger (GL)

What is Cross-Validation Rules & How to Define:

Cross Validation Rules are used to restrict the combination between the segments of a particular Chart of Accounts.

Cross-validation (also known as cross-segment validation) controls the combinations of values you can create when you enter values for key flexfield. A cross-validation rule defines whether a value of a particular segment can be combined with specific values of other segments. Cross-validation is different from segment validation, which controls the values you can enter for a particular segment.

Note: Cross-validation rules have no effect on combinations that already exist when you define your cross-validation rules.

Suppose you define a new cross-validation rule, but have existing entries in your combinations table that violate the rule. Since the existing combinations pre-date the rule, your flexfield continues to treat them as valid. However, if your end user tries to create a new combination that violates your new rule, your flexfield returns an error message and rejects the combination.

How to enable Cross Validation Rules:

Before creating cross validation rules unfreeze chart of account and after creation of cross validation rules again freeze it.

Navigation:  Setup -> Financials -> Flexfields -> Key -> Rules

 Example:

You have 03 Segments of your chart of account Company, Department and account and you want to include department and account in cross validation for which user cannot make the combinations.

You want to restrict the user to use only the department from 300-500 and account from 3000-3999 and rest of department and account not to use.

·        Enter the name of Cross validation rule like ABC Cross validation rule

·        Enter the description for Cross Validation rules like rules for “Dept 300-500 and account 3000-3999.

·        Include all the department as low 000 and high zzz

·        Same way include account as low 000 and high zzz

·        Then exclude department from as low 300 and high 500

·        Same way exclude account as low 3000 and high as 3999.

Notes:

         I.           You can change/ modify or update cross validation rules at any time

     II.           Define cross validation rule before creating code combination

Average Balance In Oracle Financials

Oracle ebusiness  suite>Oracle Financial> Oracle General Ledger (GL)

QUESTION OF THE DAY!!  

                

MODULE: ORACLE General ledger

Question:  What is average Balance In Oracle Financials? 

Answer:   :  

The Average Balance feature of Oracle General Ledger provides organizations with the ability to track average and end-of-day balances, report average balance sheets, and create custom reports using both standard and average balances. Average balance processing is particularly important for financial institutions, since average balance sheets are required, in addition to standard balance sheets, by many regulatory agencies. Many organizations also use average balances for internal management reporting and

Profitability analysis.

The difference between an average and standard balance sheet is that balances are expressed as average amounts rather Than actual period-end amounts. An average balance is computed as the sum of the actual daily closing balance for a balance sheet account, divided by the number of calendar Days in the reporting period .