Oracle Financial Functional

`pes of Courses:-

Regular Cource

Real Time
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Oracle R12 Login

into Oracle

Intenet Explorer http://apps.ora.com:8000

Oakridge Relational Arithmetic Computer Logical Engine

Oracle corporation is an American multinational computer technology corporation that special in developing .

Oracle Applications are in Finance head there are 6 applications .

1. General Ledger
2. Accounts Payable
3. Accounts Receivables
4. Fixed Assets.
5. Cash Management
6. Enterprise - Business Tax.

In supply chain management head.

1. Inventory
2. Purchasing (PO)
3. Order Management.
4. System Administration.

General ledger (GL) : It is an application of financial general ledger it is central representing . When we are
defining major control features generate reports for organization .It is a Reporting entity in which recording day to
day business transactions and also it will determine 4 c’s are

1. Currency
2. Calendar
3. Chart of accounts
4. Accounting convention method.

Accounts Payable (AP) : It is used to record the any type of payment s in an organization.

Accounts Recievable (AR) : It is used to record the any amount receivable of an organization.

Fixed Assets (FA) : It is used to maintain the fixed assets related data.

Cash Management (CM) :It is used to maintain the cash related activities .

Enterprise Business Tax (EBT) : It is used to maintain the tax related activities .
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Currency
Currency is used to record the accounting transactions. Each country having their own currency. There are two
types of currencies in oracle.

1. Monetary Currency

2. Non Monetary Currency

Monetary Currency: It is used to record the day to day business transactions.

Eg: INR, USD, GBP, Etc

Non Monetary Currency: It is used in the calculations to record the statistical information.

Eg: Cm, Percentages, Meter, etc

Step1: Define Currency

N: General Ledger Super User -> setup -> currencies -> define

Calendar
Calendar is used to identify dates in the day to day business transactions. There are two types of calendars.

1. Accounting Calendar

2. Transaction Calendar

Accounting Calendar: We can define calendar up to 365 periods in oracle. If it is leaf year then we can define up to
366 periods per year type. There are two types of years.

 Calendar Year

 Fiscal Year

Step1: Define period type

Period type is used to define year type and number of periods for accounting calendar.

N: General Ledger Super User -> setup -> financials -> calendars -> types.

Step2: Define Accounting Calendar

N: General Ledger Super User -> setup -> financial -> calendars -> Accounting .

Transaction Calendar: It is used in the average balances processing feature. It will determine which day working &
which day is holiday in an organization.

Step 1: Define transaction calendar

N: General Ledger Super User -> setup -> financials -> calendars -> Transactions.

Flex fields
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It is a field which is made up by segments. There are 2 types of flex fields

1. Key flex field

2. Descriptive flex field

Key flex field: It is a mandatory flex field which is used to capture key information of an organization. There are
total 38 key flex field in oracle application.We have a 3 key flex fields in a General Ledger .

1. Accounting flex field .

2. Reporting attributes accounting flex field .
3. GL ledger flex field .

Descriptive flexfield: It is a optional flexfield which is used to capture the additional information of the
organization.

Chart of Account
Chart of account nothing but an Accounting structure of Organization. It will be defined using Accounting key
flexfield.

Step1: Define Chart of Account

N: GLSU -> setup -> Financial -> Flex fields -> Key -> segments .

Segment qualifiers : There are 2 Segment qualifiers 1. Allow budgeting 2. Allow posting .

Also we have reconcile and third party control, account type

Value set : It is determine the features of segment values .

Step 1 : Define value set

N : GLSU -> setup -> Financials -> flexfield -> validation -> sets .

Step 2 : Define company segment value set .

Step 3 : Define department segment value set .

Step 4 : Define account segment value set .

Step 5 : Define future segment value set .

Step 6 : Assigned value set to the segments .

Step 7 : Assign qualifiers to the segments .

Values : It is used to define the segment values .

N : GLSU -> setup -> financials -> flexfields -> key -> values .

Step 1 : Define company segment values find key field segment .

Step 2 : Define department segment values .

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Step 3 : Define Account segment values

Step 4 : Define future segment values .

Topics in ledger :-

 Log in to Oracle(ok)
 Create New User(ok)
 Currency(ok)
 Calendar(ok)
 Chart of Account
 Value set
 Ledger
 Responsibility
 Open the GL periods
 Journal Source

 Journal Categories
 Entering & Posting journal
 Journal Reverse (switch dr & cr ,Change sign)
 Journal Batch
 Auto copy batch
 Suspense Journal
 Recurring Journal
 Auto Post
 Auto Reverse
 Journal Approval
 Allocation
 Sequential Numbering
 Inter company
 Budgets
 Translation
 Revaluation
 Reporting Currency
 Rollup Groups & Summary template
 Consolidation
 Secondary Ledger
 Definition Access Set
 Ledger set
 Cross Validation Rules
 Aliases
 Data Access Set
 Descriptive Flex Field
 Financial Statement Generator

 Create New User

N : SA -> security -> user -> Define.

 Define Currency
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N : GLSU -> setup -> currencies -> define .

Flex fields : It is used field which is made up by segments. There are 2 types of flex fields

1. Key flex field

2. Descriptive flex field

Key flex field : It is a mandiatory flexfield which is used to capture the mandiatory or key information of an
organization

Descriptive flex field :It is a optional flexfield which is used to capture the additional information of the organization
.

Char of accounts will be defined using key flexfield . There are total 38 key flex field in oracle application , we have
a 3 key flex fields in a general ledger .

4. Accounting flex field .

5. Reporting attributes accounting flex field .
6. GL ledger flex field .

Chart of account : Chart of account means accounting structure of the organization .

N : GLSU -> setup -> Financial -> Flex fields -> Key -> segments .

Segment qualifiers : There are 2 Segment qualifiers 1. Allow budgeting 2. Allow posting .

Value set : It is determine the features of segment values .

Step 1 : Define value set

N : GLSU -> setup -> Financials -> flexfield -> validation -> sets .

Step 2 : Define company segment value set .

Step 3 : Define department segment value set .

Step 4 : Define account segment value set .

Step 5 : Define future segment value set .

Step 6 : Assigned value set to the segments .

Step 7 : Assign qualifiers to the segments .

Values : It is used to define the segment values .

N : GLSU -> setup -> financials -> flexfields -> key -> values .

Step 1 : Define company segment values find key field segment .

Step 2 : Define department segment values .

Step 3 : Define Account segment values

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Step 4 : Define future segment values .

There are total 7 types of accounts

1. Expenses
2. Revenue
3. Assets
4. Liabilities
5. Ownership /stock holders equity (capital ,shares, debentures)
6. Budget Dr.
7. Budget Cr.

Accounting Convention Method : It will determine what method you are using in the organization record the
transaction . There are 2 types of methods

1. Accrual method
2. Cash basis method .

Accrual method : If we use this method journal entry will be created by system each & every transaction
irrespective of cash .

Cash basis method : In this method journal entry created by system when cash taking place transaction .

Ledger : It’s a reporting entity in which recording day to day business transaction & also it will determine 4 c’s are

1. Currency
2. Calendar
3. Chart of accounts
4. Accounting convention method.

Step 1 : Define Retained earning account

Step 2 : Define ledger

N : GLSU -> setup -> financials -> Accounting setup manager -> Accounting setup .

Responsibility: It is nothing but a group of tasks which are performed by the specific person .

Step 1 : Define GL Responsibility

N : System administrator -> security -> Responsibility -> Define .

Step 2 : Assign ledger to the responsibility

N : system administrator -> Profile -> system .

Step 3 : Assign Responsibility to the user

N : System administrator -> security -> user -> define .

General ledger periods : there are 5 types of period status

1. Never opened
2. Open
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3. Closed
4. Future
5. Permanent closed .

Step1 : open the GL periods N : General ledger -> setup -> open/closed .

Step2 : check the programme status

Step3 : check the period status

Journal source : It is a one of the journal component it will determine the source of the journal .

Step1 : Define journal sources N: GL -> setup -> journal -> sources

Journal Categories : It will determine the purpose of the journals

Step2 : Define journal category N: GL -> setup -> journal -> categories .

Journals : It is used record the day – to –day business transa0ction it contains Debit & Credit lines always debit
must be equal to the credit .

Manual journals : Entering the journals in the oracle manual application is called a manual . Manual journal
created in 2 ways

1. Individual or single journal

2. Journal batch .

Step1 : Create journal N : journal -> enter -> new journal .

Step2 : Post the journal

Step3 : Enquiry account balances .

Step4 : Query the journal to check the posting status .

Balance types : There are 3 types of balance types

1. Actual
2. Budget
3. Encumbrance

Actual : It is no planning of paying cash for any organization .

Budget : It is having some planning based on this budget to take a decision & having limits .

Encumbrance : It is reverse amount which is taken from the budget planning amount for specific purpose .

Journal Reverse : It is a feature is used to reverse the journals which are enterd by mistake or as per the business
requirement purpose . There are are 2 types of Reverse method .

1. Switch Debit & credit Method .

2. Change sign Method .
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Switch Debit & credit Method: In case of switch Dr & Cr method system will create the new journal entity with
exact opposite lines.

Step1 : Query the journal which you want to reverse .

Step2 : Query the reversal journal & post it .

Step3 : check the accounts balances

Change sign : In case of change sign method system will create new reversal journal entry with negative amount.

Step1 : set profiles option journals

Step2 : create journal & post it .

Step3 : Query the journal which you want to reverse using change sign method.

Step4 : Query the reversal journal & post it

Journal Batch : It is used group the journal based on certain parameters .

Step1 : Define journal batch

Step2 : Query the journal batch to check the status.

Auto copy batch : It is used to create new batch by copying existing journal batch .

Step1 : Query the journal batch which we want to copy .

Step2 : Query the new batch & post it

Change period : It is used to change the journal period before the posting .

Step1 : Create journal & change the period .

Suspense journal : It is used to post the unbalanced the journals

Step1 :Define suspense account.

Step2 : Enable suspense account feature at ledger level .

Step3 : Define suspense account rules

Step4 : Enter unbalance journal & Post it .

Step5 : Query the journal to check the suspense account at journal.

Recurring journal : Journals which are repeating each and every accounting period is called a recurring journal .
There are 3 types of recurring journal.

1. Standard Recurring journal

2. Skeleton Recurring journal
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3. Formula Recurring journal

Standard Recurring journal : Journal which are effecting same account & same amount each & every accounting
period is called a standard recurring journal

Step1: Create standard recurring journal batch.

Step2 : Query the recurring journal window & post it

Skeleton recurring journal : If we create recurring journal with the partial information i.e., skeleton recurring
journal

Step1 : Create skeleton recurring journal

Step2 : Query the skeleton journal & post it

Formula recurring journal : In case of formula recurring journal , journal line amount will be calculated by system
using formulas .

Step 1 : Define formula recurring journal

Step2 : Query the formula recurring journal & post it .

Post : Its nothing but a updating the balances

Auto post : Auto post feature is used to post the journals automatically by system running programme.
Step1: Define the auto post criteria set
Step2 : Create journal with auto post criteria set
Step3 : Query the journal to check the posting status
Auto reverse : It is used to reverse the journal automatically the system using programme .
Step1: Define auto reversal criteria set
Step2 : Assign auto reversal criteria set to the ledger.
Step3 : Create journal & posting with the same category .
Step4 : Run programme automatic reversal .
Step5 : Query the new reversal journal & posted .
Journal Approval : It is used to define the authorization limited to approach for the sources .
Step1 : Enable journal approval at ledger
Step2 :Enable journal approval & sources
Step3 : Define Approval limites for employees
Step4 : Define new user & assign employee to user
Step5 : Create journal approval & posting
Allocation : It is used to distribute the amount to the various expensive heads using simple formula.
Like formula is cost pool amount * usage factor / Total usage factor = target amount .
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Step1: Define cost pool a/c & usage factor a/c .

Step2 : Define parent department .
Step3 : Enter cost pool journal & post it
Step4 : Create & post stat journal .
Step5 : Define allocation formula.
Step6 : Query the mass allocation & post it.
Sequential numbering : It is used to assign unique numbers to the various concepts . The concepts are
journal ,Accounts payable payments , Accounts payable Invoices , Accounts receivable Invoices , Accounts
Recievable Reciepts etc.,

Step1 : Assign sequential numbering profile option at responsibility level.

Step2 : Define sequential numbering .
Step3 : Assign sequential numbering to the category.

Step4 : Create journal & Post it.

Inter company : A transaction which is taking place between the two companies with in the group is called a inter
company transaction .

Intra company : A transaction which is taking place between the 2 companies with in the group & with in the legal
entity is called a intra company.

Step1 : Define inter company payable & inter receivable accounts.

Step2 : Assign inter company Qualifiers to the company segment

Step3 : enable intra company feature at ledger level

Step4 : Define legal entity .

Step5 : Assign legal entity to the ledger .

Step6 : Complete operating units , inter company accounts & intra company rules .

Step7 : Create intra company journal & post it .

Step8 : Query the inter company journal to check the journal

Budgets : It is used for better planning & controlling purpose . Budget can be defined up to 60 periods . There are 2
types of budget

1. Planning budget
2. Funding budget

Planning budget : In case of planning budget just we are planning but there will not be any controlling & budget
journals .
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Funding budget : In this budget we can plan either revenue or expenses and also controlling & budget journals also
budget .

Step1 : Define reserve for encumbrance A/c & budget expenses A/c .

Step2 : Enable budgetary control at ledger level .

Step3 : Define budget

Step4 : Query the budget to check the latest open year status .

Step5 : Define budget organization .

Step6 : Define or Create budget journal .

Step7 : Query the budget journal & post it

Step8 : Enter journal with the budget Account .

Step9 : Check the funds availability .

Translation : It is used to translate the balances from functional currency to foreign currency .

There are 3 types of rates which are used in the translation

1. Period average rate

2. Period end rate
3. Historical rates.

Step1: Define commulative translation adjustment a/c.

Step2 : Define rate types .

Step2.1: Define Exchange rate

Step2.2 : Assign commulative CTA a/c & Exchange rate type to ledger.

Step2.3 : Run translation

Step2.4 : Run programme trial balance - Translation

Revaluation : It is used to identify unrealized gain/loss amount . Which is occurring due to the foreign currency
exchange rates fluctuation .

Step1 : Define unrealized gain /loss account .

Step2 : Define exchange rate type

Step3 : Define exchange rate

Step4 : Create & post foreign currency journal

Step5 : Modify the exchange rate in next day

Step6 : Run revaluation

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Step7: Query the revaluation journal & post it

Reporting Currency : It is used translate the balances from functional currency at transaction level .

Step1 : Define rounding differences tracking a/c .

Step2 : Define exchange rate type

Step3 : Define exchange rates

Step4: Assign rounding differences tracking a/c to the ledger

Step5 : Complete the reporting currencies setup step

Step6 : Define reporting ledger GL Responsibility

Step7 : Assign reporting ledger to GL responsibility

Step8 : Assign GL Responsibility to the user .

Step9 : Open in the periods in Reporting ledger.

Step10 : Create & post journal the primary ledger.

Step11 : Query the journal & Reporting the ledger to check the status.

Roll up groups & summary template : It is used to group the parent values .

Step1 : Disable Rollup groups at chart of account level.

Step2 : Define rollup groups

Step3 : Assign Rollup groups to the parent values.

Step4 : Define summary template.

Step5 : Inquiry the account balances using summary template .

Consolidation : It is used to consolidation the multiple subsidiary ledger into single parent ledger.

Step1: Define Require Subsidiary & parent ledgers .

(i) Define parent ledger .

(ii) Define subsidiary ledger
(iii) Define subsidiary 2 ledger

Step2 : Define parent & subsidiary ledgers GL Responsibility .

(i) Define parent ledger GL Responsibility

(ii) Define sub1 GL Responsibility
(iii) Define sub2 GL Responsibility

Step3 : Assign ledgers to the GL responsibility

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(i) Assign parent ledger to the GL Responsibility

(ii) Assign sub1 ledger to the GL Responsibility
(iii) Assign sub2 ledger to the GL responsibility

Step4 : Assign parent & subsidiary GL responsibility to the user

Step5 : Open periods in parent & subsidiary ledger.

(i) Parent ledgers

(ii) Open periods in Sub1 ledgers.
(iii) Open periods in Sub2 ledgers.

Step6 : Define Exchange rate type.

Step7 : Define Exchange rate type the sub1 & sub2 to parent type

(i) Define Exchange rate between USD & REL currency

(ii) Define Exchange rate between GBP & REL currency

Step8 : Complete transaction option in parent & subsidiary ledger

(i) Parent ledger

(ii) Sub1 ledger CTA a/c
(iii) Sub2 ledger CTA a/c

Step9: Define consolidation mapping

(i) Sub1 with parent mapping

(ii) Sub2 with parent mapping

Step10 : Define consolidation set

Step11 : Create & post journal in each subsidiary 1 & 2 ledgers

Step12 : Run Translation in each subsidiary 1 & 2 ledgers

Step13 : Run consolidation transfer

Step14 : Query the consolidation journal & parent ledger & post it.

Security Rules : It is used to restrict the users from entering segment values

Secondary ledger : It will represent the primary ledger accounting information when following Things are differ
compare to primary ledger

Step1: Define exchange rate type

Step2: Define exchange rate

Step3 : Define secondary ledger

Step4 : Define secondary ledger GL responsibility

Step5 : Assign secondary ledger to the GL Responsibilty

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Step6 : Assign GL responsibility to the user .

Step7 : Open the periods in the secondary ledger

Step8 : enter journal & post in the primary ledger.

Step9 : Query the journal in secondary ledger & post it

Definition Access set : It is a new feature option in R12 . It is used to provide use , modify or view access to the
various definition . It will work at responsibility level .

Step1 : Define definition access set

Step2 : Assign Definition access set responsibility

Step3 : Enable Security for calendar

Step4 : Query the calendar to check the Definition access set Result

Step5 : Grant modify Access to the calendar

(i) Query Definition Access set to provide the modify access to the calendar
(ii) Enable Security at Segment level
(iii) Define security rules
(iv) Assign Security rules at responsibility
(v) Enter journal to check the security rules ledger

Cross validation rules (CVR) : It is used to restrict the user from entering code combination . It will work at chart of
account level .

Step1: Enable CVR at chart of account level

Step2 : Define CVR

Step3 : Enter journal to check the CVR

Aliases : It is used to define shirt name for account code combination .

Step1 :Define Aliases
Step2 : Recompile the chart of account
Step3 : Enter journal to check the alias results
Data Access sets : It is used to provide read or write Access to full ledger or balancing segment value or
management segment value

Step1 : Enable / assign management qualifier

Step2 : Define data access set
Step3 : Assign data access to the responsibility.
Step4 : Assign GL Responsibility to the user
Step5 : Enter journal to check the data access set result
Combinations : It is used to define the new code combination when allow dynamic is disable and also used to
enable or disable existing code combination .
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Descriptive Flex Field (DFF) : It is used optional flex field to capture the additional information of the organization.
Step1 : Enable DFF journal entry screen
Step2 : Enter journal with DFF information
Step3 : Define code combination in the combination window
Step4 : Enter journal with the new code combination
Financial Statement Generator (FSG) : It is a tool which is used to customize the financial report as per the
company reporting requirement. FSG having 5 components

1. Row set
2. Column set
3. Content set
4. Row order set
5. Display set
Row set & column set are mandiatory sets & remaining 3 are optinal
Row set : It is determine format & content of rows . It includes accounting information etc.
Column set : It is determine format & content of columns .
Content set : It is used to generate the reports for multiple departments separately at a time
Row order set : It is determine how the accounting information will display in the report.
Display set : It is determine which account should be display in report & which account should not display in
report.

Step1 : Define row set

Step2 : Define column set

Step3 : Define report

Step4 : Define Report set

Step5 : Run FSG Report

Multi Organisation Structure : It is used to capture the multiple company information using in single database .

Org structure

Business Group (HR) -> Ledger (GL,FA)-> Legal Entity (EBT,CM) -> Operating unit (AP, AR, PO,OM) -> Inventory
organization (I)-> Sub inventory organization (SI)

Business Group : It’s a highest level data in the Multi org structure it secures the HR data.

Operating Unit : It is nothing but a major business division one legal entity contains multiple operating unit but one
operating unit must be associate one legal entity.

Inventory organization : It is nothing but a warehouse or manufacturing plant where we are storing the goods .
One operating unit contains multiple Inventory organization but one inventory organization must be associate one
operating unit .
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Sub inventory (SI) : It is a part in the inventory organization . One inventory organization contains multiple SI but
one SI must be associate with one inventory organization.

Step1 : Define currency

Step2 : Define location

Step3: Define Business Group

Step4: Define Ledger

Step5: Define HR Responsibility

Step6 : Assign profile options to the HR Responsibility

Step7: Assign HR Responsibility to the user

Step8: Define GL Responsibility

Step9 : Assign profile option to GL Responsibility

Step10: Assign GL responsibility to the user

Step11: open the periods in GL responsibility

Step12: Define legal entity

Step13: Assign legal entity to the ledger

Step14: Define operating unit

Step15: Run replicate seed data from for each operating unit

Step16: Define inventory organization responsibility

Step17: Assign profile option to inventory responsibility

Step18: Assign inventory responsibility to the user

Step19: Define work day calendar

Step20: Define Inventory organization

Step21: Define sub inventory

MO: Security profile It is used to access multiple operating units from single responsibility .

MO: Operating unit It is used to access one operating unit from single responsibility

Multiple organisation Access control (MOAC): It is used to access multiple operating unit information from single
responsibility . To achieve this we will use multiple organization security profile option.

Step1: Define MOAC security profile

Step2: Define all required responsibilities for PO, AP, OM, AR, FA, CM, EBT
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Step3: Assign profile option to the responsibility for PO , AP, OM, AR, FA, CM, EBT

Step4: Assign Responsibilities to the user for PO , AP, OM, AR, FA, CM, EBT.

Purchasing (PO)
It is used to capture the purchasing activities of organization .

Requisitions : There are 2 types of Requisitions

1. Internal Requisition

2. Purchase Requisition

Request For Quotations RFQ : There are 3 types of RFQ

1. Catalogue RFQ
2. Standard RFQ
3. Bid RFQ.

Quotations : There are 3 types of Quotations

1. Catalogue RFQ
2. Standard RFQ
3. Bid RFQ.

Purchase orders : There are 4 types of purchase orders

1. Standard PO
2. Planned PO
3. Blanket Purchase Agreement
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4. Contract Purchase Agreement

Delivery : There are 3 types of delivers

1. Direct delivery
2. Standard delivery
3. Inspection delivery

There are 2 cycle financial 1. Procure to Pay cycle (P2P) 2. Order to Cash (O2C)

PO Integration

PO setups : There are 5 PO setups 1.options 2. Employee 3.Item 4.Supplier 5.PO Setups

1. Options : It is nothing but a controlling Features at operating unit level . There are 3 types of options
(i). Financial options
(ii). Purchasing options
(iii). Receiving options

Financial options : It will be shared by purchasing ,Account payable , Fixed assets & Internet exposure.

Step1: Define financial options

Free on Board : It will determine where ownership of goods change from supplier to organization.

Purchasing options : It will be shared by the purchasing application

Step2: Purchasing options

Receipt close point : It will determine which place at which stay we are sending , confirmation to the supplier we
have receive goods from carrier .

Enforce lot quantity : It will determine whether we can enter lot quantity at the time of purchase order creation .

Dispositon : It will determine whether we can copy /not item related information to PO from Requisition
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Allow item description : It will determine whether we can modify or not item description at the time of document
creation .

Match approval level : using of this option to checking of goods quality for each and every stages like 2 way, 3 way,
4 ways .

Step3 : Receiving options

ASN control action ( advance shipping notice ): It is used for based on Assurance or note or promissory note to
receiving the goods.

RMS Receipt routing (Return material acceptance ) : this method will determine in which method goods will be
received when customers returns goods to the organizations.

Allow cascade transaction : It will determine whether we can receiving goods or not in the multiple inventory
organization .

2. Employee

Step1 : Define jobs

Step2 : Define employees

Step3 : Assign jobs to employees

Step4: Assign manager to the clerk

Step5: Define user & assign to employees

3. Item

It is nothing but a product but a product . It will be defined the inventory . there are 7 key flex field in the inventory

1. Item categories
2. Account Aliases
3. Item Catalogs
4. Sales orders
5. System items
6. Stock locators
7. Oracle service item flex field

Item categories : It is used to define the items

Step1 : Define item category structure

Step2 : Item categories structure values

(i) Define family segment value

(ii) Define class segment value

Category codes : It is used to group the items

Step1: Define category codes

Step2: Define category sets

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Step3: Define item

4. Supplier

Either organization or person who is selling goods or services to the organization is called a supplier

There are 3 level of information in the supplier record .

1. Header
2. Address
3. Site

Step1 : Define supplier

Approval Groups : It is used to define the approval authorization limits.

Step1: Define Approval groups for employees

Approval group Assignments : It is used to assign the approval groups the jobs.

Step1: Assign Approval groups to the PO clerk job .

Step2: Assign Approval groups to the PO manager job

Document types : It is used to determine the features of purchasing document .

Buyer : A person who is buying goods and services behalf of organization is called a buyer.

Step : Define buyers

Requisitions : Requisition created by employees when there is a requirement . there are 2 types

1. Internal Requisition
2. Purchase Requisition

Requisition contains 3 levels of information

1. Header
2. Lines
3. Distributions (Accounting information)

Internal Requisition : It is used to move goods one inventory organization to other inventory organization.

Purchase Requisition : It will be created by employees & Send to the purchasing department when there is
Requirement.

Step1 : Create Purchase Requisition

Step2: Check the Requisition status

Request for Quotations : RFQ will be created by buyers & senders to the suppliers . There are 3 types

1. Catolague
2. Standard
3. BID
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RFQ’s can be created by 2 ways

 Manual
 Automatic

Manual Creation : Entering RFQ’s manually in oracle purchasing is called manual creation .

Catalogue RFQ : This will be used for regular items . It contains 3 levels of information

 Header
 Lines
 Price breaks.

Step : Create Catalogue RFQ

Standard RFQ : It is used for Occasional items . It contains 3 levels of information

 Header
 Lines
 Price breaks

Step : Create Standard RFQ & Print the RFQ

BID RFQ : It is used for high volume of items which are require special shipment . It contains 3 levels

 Header
 Lines
 Shipments

Step1: Create BID RFQ

Step 2: Auto create RFQ

Quotations : Quotations will be Received by suppliers & entered in oracle purchase. There are 3 types

1. Catalogue Quotations
2. Standard Quotations
3. BID Quotations

Quotations can be create in 2 ways

 Manual Creation
 Automatic

Step : Create Manual Catalogue Quotation

Step: Create Standard Quotation

BID Quotation: Create BID Quotation and Auto create Quotation

Quote Analysis : It is Used to Analyze the Quotations and select the best one.

Purchase Orders : It’s a legal document which will be created by organization and send to the suppliers to buy
goods & services. It contains 4 levels of informations .
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 Header
 Lines
 Shipment
 Distribution

There are 4 types of purchase orders

1. Standard
2. Planned
3. Blanket purchase agreement
4. Contract purchase agreement

Purchase orders can be created in 2 ways

 Manual creation
 Automatic

Standard purchase order : It’s a one time purchase order it will be created by organization & send to the supplier to
buy goods & services . When we know the terms & conditions , Goods & services , Price , Quantity , Distribution
and Delivery schedule.

Step1 : Create standard purchase order

Step 2: Check the purchase order status

Planned Purchase Order : It is a agreement between supplier & organization to buy goods or services . It will be
created when we know the terms & conditions , Goods or services , Price, Quantity , Distribution & delivery
Schedule may be aware of or may not be .

Later Schedule release will be created with reference of planned purchase order to obtain goods from suppliers.

Step1: Create Planned purchase order

Step 2: Create Schedule Release

Blanket Purchase Order: It is a long term agreement between the supplier & organization to buy goods or
services . It will be created When we know the terms &conditions , Goods or services and Price .Later Blanket
release will created with reference of Blanket Purchase Order.

Step 1: Create Blanket Purchase Agreement

Step2: Create Blanket release

Step 3: Check the release amount in the blanket purchase agreement

Contract Purchase Agreement : It will be created by organization and sent to suppliers to buy goods or services.
When we know the terms & conditions . Later Standard Purchase order will be created with reference of control
purchase agreement to obtain the goods or services.

Step1: Create contract Purchase agreement .

Step2: Create standard purchase order with reference of control purchase agreement .

Step3: Check the release amount in the contract purchase agreement

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Auto Create Purchase order : Creating purchase order with reference of either quotation or requisition is called
auto create purchase order .

Step 1: Auto create purchase order

Step2: open inventory Periods

ON-Hand Quantity : Check On-Hand Availability material in the Inventory Organisation

Receiving : Always Receiving will be done at Inventory organization . There are 3 types of receipt rating method .

1. Direct delivery
2. Standard Receipt
3. Inspection

Direct Delivery : In this method goods directly delivered to find destination (i.e., Inventory Organisation)

Step 1: Create Purchase order with receipt routing direct delivery

Step2: Receive the goods

Step3: Check the receiving status in purchase order

Step4: Check On-Hand Quantity

Standard Receipt: In case of standard receipt routing method first goods will be received at one place then move
to the final destination.

Step1 : Create purchase order with Receipt Routing method standard receipt

Step2: Receive the goods

Step 3: Check the Receiving Transactions Status in the Receiving transaction summary window .

Step4: Deliver goods to final destination

Step5: Check the receiving the status in the receiving transaction summary window

Inspection : In this method first goods will be received at one place second inspection team inspect the goods ,
Finally we move to final destination.

Step1: Define Profile option inspection of Responsibility level

Step2: Create purchase order with receipt routing inspection required.

Step 3 : Receiving the goods

Step4: Check the receiving transaction in receiving transaction summary window

Step5: Inspect the goods

Step6: Check the Receiving transaction status in the receiving transaction summary window

Step7: Deliver goods to final destination

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Step8: Check the receiving transaction status in receiving transaction summary window

Returns: (if any damaged) Returns which are used to record goods details which are sent back to supplier

Step1: Check the On-Hand quantity

Step2: Return the goods to supplier

Step 3: Check On-Hand Quantity

ACCOUNTS PAYABLE (AP)

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Accounts Payable is used to capture the payments of organizations.

AP Integration

Pay Group: It is used to Group the suppliers .

Step1: Define pay group

Payment Terms : This is are used to determine the payment schedule for involves . There are 2 types

1. Normal payment terms

2. Proxima payment terms

Normal payment terms : Define payment terms

Proxima payment terms : Example for this terms is Electricity bill and Telephone bill

Step: Define proxima payment terms

Options : It is nothing but a controlling features and operating unit .There are 3 types of options

1. Financial options
2. Payable options
3. Payable system setup.

Step: Define Financial options

Payable Option : It will be shared by only Accounts Payable.

Step1: Define Payable option

Note :

Prorate: Prorate means distribute the ratio basis or Across the invoice.
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System Account: It means single line account.

Prorate Tax : It is define the want to create a separate line.

Operating unit : It means major business level

Allow adjustment to paid invoice: It will determine whether we can changes or not for invoices after making
payment.

Allow remit to account over ride: Whether we can make changes or not supplier bank account at the time of
invoice creation.

Allow remit to supplier over ride: It will determine whether we can change remit to supplier or not at the time of
invoice creation . (override=changes)

Allow matching account override: It will determine whether we can change or not incoice distribution account
when we match with purchase order.

Transfer PO description flex field information: It will determine whether PO descriptive flex field information need
to be transfer to the invoice or not at the time of matching .

Allow address change : Whether we can make changes or not for address at the time of payment creation.

Discount date= Last date of discount received , Due date= Last day of payment

Always take discount : It means to make payment to take discount at payment date with in 30 days

Separate remittance advice delivery : It is nothing but sending invoice information along with cheque.

Types of payment methods :There are mainly 4 types payment methods

1. Check (payment only with cheques)

2. Electronic (payment only online fund transfer with EFT)
3. Wire (payment only with document or letter pad and electronic mode)
4. Clearing (payment mode for with draw cash from bank )

Payable system setup: This will be shared by accounts payable application.

Step: Define payable system setup

Validate Application Accounting Definition:

Step: Run Validate Application Accounting Definition Programme.

Invoices : Invoice will be received from the supplier for goods or services , Purchased and entered in the payable
system . It contains 3 level of information

1. Header
2. Lines
3. Distribution

There are 12 types of invoices in AP. There are

1. Standard Invoice
2. Credit memo
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3. Debit Memo
4. Prepayment
5. Expense report
6. Interest invoice
7. Recurring invoice
8. Mixed invoice
9. Purchase order match
10. Transportation invoice
11. Retainage Release Invoice
12. With holding Tax invoice

Invoice can be created 2 ways

1. Manual
2. Import or Automatic

Manual Invoice Creation: Manual invoice can be created by 2 ways

1. Individual invoice
2. Batch invoice
1. Standard Invoice : A trade invoice which will be received from the supplier and entered in the payable
system.
Step1: Define standard invoice
Step2: Check the suppliers outstanding balances
Step3: Define Bank
Step4: Define bank branch
Step5: Define internal bank account
Step6: Define payment document
Step7: Define supplier bank account

Payments : Payments can be done in 2 ways

1. Single or individual payment

2. Batch payment

Single or individual payment: Issuing one cheque at a time is called a single payment . There are 3 types of
payment

(i). Quick payment

(ii). Manual payment

(iii). Refund payment

(i). Quick payment:

Step1 : Create payment

Step2: Query the invoice to check the payment status

Step3: Check the supplier balance

Credit Memo: It’s a negative amount invoice .It will reduce the supplier balance it will be created by supplier and
send to the organization . When supplier found same amount need to be given back to the organization
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Step1: Create credit memo

Step2: Check the supplier balances

Debit Memo : It is a negative amount invoice which will reduce the supplier balance it will be created by
organization and sent to the supplier when organization found some amount need to get from the supplier.

Step1: Create debit memo

Step2: Check the supplier balances

Prepayment : It is a advance payment made by organization to the supplier later adjusted to future invoices .
There are 2 types of prepayment. 1. Permanent 2.Temporary

1.Permanent Prepayment : It’s a advance payment which cannot be adjust against future Invoices.

2.Temporary Prepayment : It’s a advance payment which can be adjusted against future invoices .

Step1: Create Permanent payment invoice

Step2: Check the prepayment invoices status

Step3: Convert Permanent tp temporary prepayment

Step4: Create standard invoices and apply prepayment

Step5: Check the prepayment Invoices status

Expenses Report : It is used to reimburse the employee business related expenses . There are 2 types of expense
report . 1. Expenses Report without prepayment 2. Expenses report with prepayment.

Step 1: Define Expenses report prepayment

Step 2: Define expenses report option at payable option

Step3: Define expense report

Step4: Run Expense report export programme

Step5: Assign payment method to the supplier

Step6: Run Expense Report export programme

Step7: Query the expense report and validated

Interest Invoice : It will be created by automatically system to make interest payment to the supplier on over due
invoices.

Step1: Define interest invoice option at payable option

Step2: Enable allow interest invoice at payable system setup

Step3: Define interest rate

Step4: Enable allow interest invoice features of supplier header

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Step5:Create invoice with the old date

Step6: Create payment

Step7: Query the interest invoice for verification

Recurring invoice: Invoices which are repeating each and every accounting period is called a recurring invoice.

Step1: Define recurring invoice special calendar

Step2: Define distribution set : Distribution sets are used to default the accounting information at the time of
invoice created . There are 2 types

1. Full distribution set

2. Skeleton distribution set

Full distribution set : In case of full distribution set we will be entering percentage of amount and accounting
information at the time of distribution set creation

Skeleton distribution set: It will be entering only accounting at the time of distribution set definition but percentage
of amount will be entered at the time invoice creation.

Step1: Define skeleton distribution set

Step2: Define recurring invoice template

Step3: Query the recurring invoice and validate

Change Types :There are 4 types

1. Constant
2. Increasing
3. Decreasing
4. Special Invoice

PO Match Invoice : Matching invoice with the purchase order is called a PO Method

Step1: Create standard invoice and match with the purchase order .

Mixed Invoice : It is used to enter invoices with either +ve or –ve amount.

Retainage release invoice : It is nothing but a holding the some part of the amount from supplier payment.

Step1: Enter retainage account in the financial option

Step2: Enter retainage amount in the supplier record

Step3: Create complex service agreement

Step4: Create standard invoice and match with the complex service

Step5: Release the retainage amount.

With Holding Tax (WHT): It will be created by automatically system to make tax amount payment to the tax
authority.
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Invoce components: There are 4 types

1. Line
2. Tax
3. Freight
4. Miscallaneous

Step1: Define WHT options or payable options

Step2:Define WHT Special calendar

Step3: Define Tax authority as a supplier

Step4: Define WHT Code

Step5: Assign WHT group in the payable option

Step6:Enable WHT at supplier header and site, also assign WHT Group

Step7: Create invoice and validate

Step8: Query the WHT Invoice and validate

Pay-On-Receipt: it is using this feature invoice will be created automatically by system. When we receive the goods
in the purchasing

Step1: Enable Payonreceipt at supplier site

Step2: create purchase order

Step3: Receive the goods

Step4: Query the invoice number in AP and validate

Debit Memo from RTS Transaction (Return-to-supplier): This feature is used to create Debit memo automatically
system. When we return goods to the supplier.

Step1: Create Debit Memo from RTS Transaction at the supplier header and site level.

Step2: Create Purchase order

Step3: Receive the goods

Step4: Return Goods to the supplier

Step5: query the Debit Memo AP invoice window

Batch Invoices: It is used to group the invoices based on certain parameter

Step1: Define Profile option at responsibility level

Step2: Create invoice batch

Step3: Query the invoice batch to check the invoice status

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Invoice Cancel: it is used to cancel only unpaid invoices

Step1: Query the invoice which we want to cancel

Manual Payment: It is used to record the payments which are done outside of the oracle.

Step1: Create Manual payment

Refund: it is used to get back amount from the supplier. It can be created with reference of either Debit memo or
Credit memo.

Step1: Create refund Transaction

Stop payment: it is used to initiate stop payments when funds are not available in the bank account.

Step1: Query the payment document for which we want stop payment.

Release the stop: it is used to release payment document from stop initiated.

Step1: Query the payment document which we want to release.

Void the payment document : (void =cancelled ) it is nothing but a cancel the payment document

Step1: Enable allow void and re-issue option at payable option

Step2: Query the payment document which we want to void

Re-issue the cheque: it is nothing but a canceling the old cheque and issuing the new cheque.

Step1: Enable allow void and reissue at payable option

Step2: query the payment document number for which we want to reissue

Step3: query the new payment document to check the status

Hold: it is used to prevent further action on invoices

There are 2 types of holds

1. Manual hold
2. System hold

1. Manual hold: it will be placed on invoices manually and it will be released manually when the dispute is
settled

Step1: Define invoice hold reason

Step2: Define release reasons

Step3: Enter invoice and place hold

Step4: Release the hold and invoices

2.System Hold: it is placed on invoices by system. System holds can’t be released manually. These holds
will be release by system automatically when we rectify the Errors.
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Step1: Enter Invoice and place system hold

Step2: Rectify the Error to Release system hold

Supplier merge: It is used to merge the suppliers when one supplier is take over or merge another supplier
business.

Step1: Define New supplier

Step2: Run Suppliers merge programme

Step3: query the invoice to check the supplier merge result

Transfer to General ledger:

Step1: Run Create Accounting Programme

Step2: Query the journals in GL and post

Process categories: There are 4 types of process categories

1. Invoices
2. Manual
3. Payments
4. Third party merge.

ACCOUNTS RECEIVABLE (AR)

Accounts Receivable is used to record the customers collection information .

Order – To – Cash (O2C):

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AR Integration :

Step1: Assign Item Validation organization to the operating unit

AR Key Flex Fields : There are 2 key flex fields in AR.

1. Sales tax location Flex field.

2. Territory Flex field.

Sales tax location Flex field : It is a Mandatory flex field which is used to capture the tax information of an
organization . we can define up to 10 segments in one structure & one segment is mandatory i.e., state segment .

Step1: Define sales tax location structure .

Territory Flex Field : It is a optional flex field which is used to identify the sales for particular territory & also
ascertain profit for each territory . We cannot define new territory structure but we can add up to 20 segments for
existing structure .

Step1: Modify territory flex field structure

System Options : It is nothing but a controlling features at operating unit level.

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Step1: Define system option

Step2: Run Validate application accounting definition program.

Step3: Open AR Periods

Payment Terms : It is used to determine the payment Schedule for invoices

Step1: Define payment Terms

Step2: Define Collectors

Remit to Address : An Address where customers should sent Receipts .

Step1: Define Remit to Address

Step2: Define Receipt from locations

Application Rule Sets : It will determine how receipt amount should be applied against various invoices
components. The Invoice Components are

1. Line
2. Tax
3. Freight
4. Financial Charges

Step1: Define Application Rule set.

Customer Profile Class : It is used to group the customers based certain parameters . Classifying following ways
customers.

1. Good Customer
2. Average Customer
3. Below average customer

Step1: Define Customer profile class

Step2: Modify the default profile class

Customer : Either person or organization whom we are selling goods or services is called a customer .

Customer record contains 3 levels of information.

1. Customer header
2. Address site
3. Business purpose site

Step1: Define Customer

Note :

Sold to party: A customer address where we are sending invoices & delivery the goods etc.,

Bill to: A customer address where organization mailing invoices

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Ship to : A customer address where delivering the goods

Dunning Site : An address where organization sending remainder letters to the customer.

Statement site : A Customer address where organization mailing statements.

Step1: Assign Party Tax profiles

N: EBT->Parties->Patry tax profiles

Transactions: It is nothing but a invoices which will be created by organization and send to the customer . It
contains 3 levels of information.

1. Header
2. Lines
3. Distribution

There are 7 types of transactions .

1. Invoice
2. Debit memo
3. Credit memo
4. Deposit
5. Guarantee
6. Charge back
7. Bills Receivable

Transaction can be created 2 ways 1.Manual 2. Auto invoice

Manual Transaction Creation: Creating Invoice Manually in the AR is called a manual transaction creation. Manual
transaction can be entered in 2 ways

1. Single or Individual transaction

2. Batch Transaction.

Single or Individual transaction:

1. Invoice Transaction : A trade invoice which will be created by organization to the customers when we sold
goods.

Step1: Define Transaction type

Transaction Sources : It will determine transaction type and numbering for transaction & transaction batches.
There are 2 types of transaction sources.

1. Manual
2. Imported

Step2: Define manual Transaction sources

Step3: Create Invoice transaction

Receivable activities: It is used to default the accounting information for receipts at the time of receipts creation
for some of activities . The activities are
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1. Earned discount
2. Unearned discount
3. Refund
4. Miscellaneous

Step1: Define Earn discount receivable activity

Step2 : Define unearn discount receivable activity

Step3: Create or Modify Bank account

Receipt Classes : It will determine receipt creation method , Remittance method , clearance, Payment and bank
account for Receipts.

Step1: Define Receipt Class

Receipt Sources: It will determine receipt class payment method bank account receipts for transactions and
numbering for batch receipts . There are 2 types of receipt sources.

1. Manual
2. Automatic

Step1: Define manual Receipt sources

Step2: Define Automatic Receipt sources

Receipts : Receipt is used to record customer collection details .Receipts can be created in 2 ways

1. Manual
2. Automatic

Manual Receipts: It can be created in 2ways

1. Single or Individual
2. Batches Receipt

Step1: Enter or Create Receipt

Unidentified :Its nothing but a received the amount but not yet identified the customer.

Unapplied: Received the amount and identified the customer but not yet applied against invoice.

Applied : Received the amount , identified the customer and also applied against invoice.

Step2: Check the transaction balance sheet

Step3: Check the customer balance

Auto Accounting : It is used to default the accounting information for AR invoices in the distribution window . We
can auto accounting rules for receivable account,Revenue account, Freightaccount ,and Tax account.

Step1: Define Auto accounting rule for receivable account .

Step2: Define Revenue account

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Step3: Define Freight account

2.Debit Memo Transaction: It will be created by organization and send to the customer , when customer is less
charged.

Step1: Define Memo lines

Step2: Define debit memo transaction type

Step3: Define memo source

Step4: Create debit memo transaction

3.Credit memo Transaction: It will be created by organization and send to the customers, when customer is over
charged . There are 2types credit memos.

1.Credit memos against specific transaction

2.On-Account-credit memo

Credit memos against specific transaction: In this method receivable will reduce the invoice balance transaction
due when we create credit memo.

Step1: Define Credit memo transaction type

Step2: Define credit memo transaction source

Step3: Assign credit memo source to the transaction source

Step4: Create credit memo against specific transaction

Step5: Query the original transaction to check the balance due

Step6: Check the customer balance

On-Account-Credit memo: It is general credit memo which will created by organization and send to the customer .
when organization need to give amount to customer.

Step1: Define memo lines

Step2: Create on-account-credit memo

Step3: Check the customer balance

4.Deposit transaction: It is advance payment made by customer to organization later it will be adjusted against
future invoices.

Step1: Define deposit transaction type

Step2: Define deposit transaction sources

Step3: Create deposit transaction

Step4: Enter receipt and apply against deposit

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Step5: Check the commitment balance in the deposit transaction

Step6: Create the invoice transaction and adjust deposit amount

5.Guarantee Transaction: It is a assurance to the customer to buy goods and services.

Step1: Define guarantee transaction type

Step2: Define guarantee transaction source

Step3: Create guarantee transaction

Step4: Create invoice transaction with reference of guarantee transaction

Step5: Enter receipt and apply against invoice transaction

Step6: Check the guarantee balance

6.Charge Back Transaction: It is nothing but a closing the original invoice and create a new invoice for remaining
amount with new due date.

Step1: Define or modified charge back receivable activity

Step2: Define charge back transaction type

Step3: Modify charge back transaction source

Step4: Create Invoice transaction

Step5: Enter receipt with partial amount and create charge back remaining amount

Step6: Query the charge back transaction in transaction window

Step7: Query the invoice transaction to check the balance due

Invoice Rules and Accounting Rules:

Invoices Rules: It will determine the accounting period in which receivable amount will be recognized by system.

There are 2 types of invoice rules:

1. Bill in Advance (in this method receivable will recognized receivable amount starting of project)
2. Bill in Arrears (in this method receivable will recognized receivable amount ending of project)

Accounting Rules: It will determine the accounting period in which revenue amount will be recognized by system.

There are 4 types of accounting rules.

1. Fixed schedule
2. Variable schedule
3. Daily revenue rate all periods
4. Daily revenue rate partial periods

Fixed Schedule: In this method duration of project and revenue percentage of each accounting period will be
entered at the time of accounting rule definition.
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Step1: Define fixed schedule accounting rule

Variable Schedule: In this method we cannot enter duration of the project while define accounting rule. But, we
can enter duration of the project at the time of invoice creation. Revenue percentage can be entered only first
period of the project for remaining periods system will calculate the prorate basis remaining percentage amount at
the time of invoice creation.

Step1: Define variable schedule accounting rule

Step2: Invoice with invoicing rule bill in advance and accounting rule fixed schedule

Step3: Run revenue recognize program

Step4: Invoice with invoicing rule , in arrears and accounting rule variable schedule

Step5: Run revenue recognize program

Transaction Batch: It is used group invoices based on certain parameters.

Step1: Create transaction batch

Transaction Deletion: we can delete only incomplete transaction.

Step1: Enable allow transaction deletion

Step2: Query the transaction which you want delete.

Receipt Batch: It is used to group the receipts based on certain parameters . There are 3 types of batches

1. Manual regular batch

2. Manual regular batch
3. Automatic batch

Manual Regular Batch: In case of manual regular batch receivable will update the customer balances as soon as
save the records.

Step1: Create receipt batch

Manual Quick batch: In this batch receivable will not be update customer balances as soon as save the batch .
Receivable will update customer balances when we run post quick cash program. Post quick cash program will use
auto cash rule set to apply receipts against invoices.

Step1: Define auto cash rule set

Auto cash Rule set: It will determine how the receipt amount should applied against various invoices when we run
post quick cash program. Auto cash rule set having 5 rules

1. Clear the account

2. Clear post due invoices
3. Clear post due invoices grouped by payment term
4. Match payment with invoice
5. Apply to the oldest invoice first

Step2: Assign auto cash rule set to the customer

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Step3: Enter manual quick batch

Miscellaneous Receipt: Non –Invoice related receipts is called miscellaneous receipts such as income on
investment . Interest on bank deposits.

Step1: Define miscellaneous receivable activities

Step2: Enter Miscellaneous Receipts

Receipt Reversal: It is nothing but a cancelling the receipt . There are 2 types of receipt reversal

1. Standard Reversal
2. Debit memo Reversal

Standard Reversal: In this method receivables will cancel the receipt as well as associate receipt application against
invoice.

Step1: Query the invoice to check the balances

Step2: Reverse the receipt

Step3: Query the invoice transaction to check the balance due

Debit memo Reversal: In this method receivable will create debit memo instead of cancelling receipts and associate
application .

Step1: Query the receipt which you want to reverse

Step2: Query the debit memo in transaction window

Remittance: It is nothing but a sending cheques or receipt details to the bank for collection . There are 3 types

1. Create
2. Approved
3. Format

Remittance can be done in 2 ways

1. Manual
2. Automatic

Manual Remittance: Selecting the cheques or Receipts details manually to deposit in the bank is called a manual
remittance.

Step1: Create Remittance batch

Step2: Approve the Remittance batch

Step3: Format the remittance batch

Step4: Check the receipt status

Refund: It is used to return excess amount to the customer.

Step1: Define refund receivable activity

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Step2: Create invoice transaction

Step3: Enter receipt with excess amount and remaining amount keep as a unapplied or on account

Step4.1: Create Remittance batch

Step4.2: Approve and format remittance batch

Step4.3: Query the receipt and create refund transaction

Step5: Query the invoice in the AP

Balance Forward Billing Cycles BFBC: It is used to generate consolidate statement for the customer

Step1: Enable show billing number at system options

Step2: Define balance forward billing cycle

Step3: Define BFBC payment terms

Step4: Define profile class with BFBC

Step5: Define customer

Step6: Create invoice transaction

Step7: Enter the receipt

Step8: Generate balance forward billing cycle

Write-Off: It is used to record the baddebts for organization

Step1: Define writeoff limits at system options

Step2: Define user write off approval limits

Step3: Define write off receivable activity

Step4: Create invoice

Step5: Check the customer balance

Step6: Enter receipt with less amount and create write off for remaining amount

Step7: Check the customer balance and check the transaction balance due

AP/AR Netting : It is used to netup the balances between AP/AR

Step1: Define Netting account value

Step2: Define AP/AR netting bank account

Step3: Assign netting bank account to the AP/AR Receipt class

Step4: Enable allow payment of unrelated transaction at system options

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Step5: Define AP/AR Netting sequential Numbering

Step6: Assign Sequential numbering to AP/AR netting category

Step7:Define AP/AR Netting agreement

Step8: Create Invoice transaction

Step9: Enter AP invoice

Customer Bank Account:

Step1: Define Customer bank account

Step10: Create netting agreement

Step11: Check the AR transaction balance due

Step12: Check the Netting Receipt

Step13: Check the AP Invoice Payment amount

Step14: query the payment document

Transfer to GL:

Step1: Run create accounting program

Step2: Query the journals in the GL and Post it.

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FIXED ASSETS

FA is used to maintain the fixed assets related information .

FA Integration:
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Project
Accounting

Accounts Accounts
Payables Fixed Assets Receivable

General Ledger

FA Key flex fields : There are 3 types of key flex fields .

1. Category flex field

2. Location flex field

3. Asset key flex field Optional

Category flex field: It is used to category the assets , it is a mandatory flex field . We cannot define new category
structure , but we can add upto 7 segments in the existing structure and minimum segments are 2 Major and
minor.

Step1: Modified the existing structure

Location Flex field: It is a mandatory flex field which is used to identify where the asset is located and also to find
out what are all asset located and also to find out what are all asset located in the particular location . we cant
define new structure but we can add upto 7 segments for existing structure , 1 is mandatory segment which is
state segment.

Step1: Modify location structure .

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Asset key flex field : It is a optional flex field which is used to group the assets which are using for one division , as
per reporting requirements . We cant define new structure but we can add upto 10 segments for existing
structure for maximum.

Step1: Modified the asset key flex field

Values

Step1: Define category flex field segment values for Major and Minor category.

Step2: Define Location flex field segment values for country, state , City and Building .

Step3: Define Asset key flex field segment values

System controls: It is nothing but a controlling features at instance level .

Step1: Run validate application accounting definition program

Step2 : Define Fiscal years

Asset calendar : It is used only one period open not more than one period . One time is closed a period cannot re-
open that period again.

Step1: Define Asset calendar

Prorate convention calendar : It is used to determine depreciation start date in the asset first year.

Step1: Define Prorate convention calendar.

Depreciation Methods: These methods are used to calculate the depreciation on various assets . There are 5 types
of methods.

1. Flat rate Method (constant)

2. Calculated Method (depends on asset life)

3. Production Method (based on units produced)

4. Table method (based on rate picked from the table)

5. Formula method (based on formula itself)

Flat rate Method: In this method we are aware of depreciation rate and asset life will be depends on rate . We can
use following formula to calculate depreciation

(Asset cost – scrap value) x Rate

Dep = -----------------------------------------------

100

Step1: Define Flat rate method

Calculated Method: In this method depreciation rate will be depends on asset life . we can use following formula
to calculate depreciation.
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Asset cost – scrap value

Dep = --------------------------------------

Life of the asset

Step1: Define Calculation method

Production basis method: In this method depreciation rate will be calculated based on the units produced by asset
. we will use following formula to calculate depreciation.

Asset cost – scrap value

Dep = -------------------------------------------x No. of units produced

No.of units production capacity

Step1: Define Production method

Step2: Enter production capacity or units for each asset

Table Method: In this method depreciation rate will be picked from the table . where we can define the each
period depreciation rate.

Step1: Define table rate method

Formula basis method: In this method depreciation rate will depends on formula.

Step1: Define formula basis method.

Asset Books: Asset book will determine ledger, calendars , accounting rules and natural accounts for assets. There
are 3 types of asset books.

1. Corporate book

2. Tax book

3. Budget book

Corporate book: It is used to maintain data as per the corporate reporting data requirement.

Step1: Define corporate book

Asset categories: It is used to group the assets based on depreciation and rate.

Step1: Define asset category

Asset additions : Entering assets on the oracle Fixed asset is called a asset addition. There are various type of
assets .

1. Capitalised
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2. Consturction In progress (CIP)

3. Expenses

4. Group

Assets can be created following methods

1. Detailed addition

2. Quick addition

3. Mass addition

4. WEB ADI

Step1: Define Detailed addition

Step2: Quick Addition

Step1: Mass Addition

Step2: Run create accounting program

Step3: Run mass addition create program in AP

Step4: Enter details prepare mass addition window in Fixed Asset

Step5: Run mass addition

Step6: Query the asset to check the result

Depreciation: Reducing the asset value as per usage is called a depreciation

Step1: Run Depreciation

Step2: Query the asset to check the depreciation amount

CIP Asset: Assets which are in construction in progress is called a CIP assets. (buildings)

Step1: Create CIP asset

Step2: Capitalised CIP asset

Step3: Query the asset to enter asset cost

Tax book: It is used to maintain the data as per the tax reporting requirement . Data will be transfer one

Corporate book to the tax book by running following 2 programs

1. Initial Mass copy

2. Periodic mass copy

Initial Mass copy: It is used to copy data from corporate book to the tax book first time.
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Step1: Define tax book

Step2: Assign category to the tax book

Step3: Run Initial mass copy

Step4: Check or query the assets in the tax book

Periodic mass copy: It is used to transfer periodic change data from corporate book to tax book.

Step1: Create asset

Step2: Run periodic mass copy

Step3: Query the assets in the tax book

Asset Transfer : It refers changes in the assignment information . It can be done in to 2 ways

1. Single asset transfer

2. Mass or group asset transfer.

Single Asset transfer: Changing the assignment information for one asset transaction is called a single asset
transfer.

Step1: Query the asset which we want to make changes

Step2: Re query the asset to check the assignment details

Mass Transfer : Change assignment information for group of assets is called mass transfer .

Step1: Create mass transaction batch

Step2: Run final mass transfer

Step3: Query the assets to check the mass transfer result

Changes : Changes will refer modifications in the following features of assets

1. Asset cost

2. Depreciation method

3. Production capacity

4. life of the asset

Changes can be done in 2 ways

1. single asset change

2. Mass or group assets change

Single asset change: Changing asset details for one asset in one transaction is called a single asset

Change .
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Step1: Query the asset for which we want to make change

Step2: Query the asset to check the result.

Mass asset change : Mass asset details for group of assets in one transaction is called a mass changes.

Step1: Create mass change preview batch

Step2: Run final mass changes batch

Step3: Query the asset to check mass change result

Revaluation : It will be carried out only in the asset cost . It can be done in 2 ways

1. single asset Revaluation

2. Mass or group asset revaluation

Mass asset revaluation: Changing the asset cost for group of asset in one transaction is called a mass

Revaluation.

Step1: Create mass revaluation preview transactions

Step2: Run final mass revaluation transaction

Step3: Query the asset to check the mass revaluation result

Re- classification : It is nothing but a changing the asset category information. It can be done in 2 ways.

1. Single asset reclassification

2. Mass asset reclassification

Single asset reclassification:

Step1: Define new asset category

Step2: Query the asset to change category which we want

Step3: Re query the asset to check the result

Mass re classification : Changing the category information for group of asset in one transaction is called

A mass reclassification

Step1: create mass reclassification preview transaction

Step2: Run final mass reclassification transaction

Step3: Query the asset to check the mass reclassification

Retirement: Removing asset from services is called a retirement. It can be done in 2 ways

1.Single asset retirement

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2. Mass asset retirement

Single asset retirement: Removing one asset from services in one transaction is called single asset retirement

Step1: Run depreciation for asset

Step2: Run depreciation for latest period

Step3: Query the asset which we want to retire

Step4: Query the asset to check the retirement result

Mass asset retirement: Removing the group of assets from services in one transaction is called a mass retirement

Step1: Create mass retirement preview transaction

Step2: Run final mass retirement transaction

Step3: query the assets to check mass retirement result

Re – Instate : Bring back retired assets in to services is called a re instate. It can be done in two ways .

1. Single Asset reinstate

2. Mass asset reinstate

Single asset re instate: Bring back to one retired asset to service is called single asset

Step1: Run calculate gain & loss program.

Step2: Query the asset which you want to re instate

Step3: Query the asset to check the reinstate result

Mass Asset reinstate: Bring back to group of retired assets to service is called mass asset reinstate.

Step1: Query the mass transaction number

Step2: Query the asset to check the result

Fixed asset transfer to GL:

Step1: Run create accounting program

Step2: Query the journals in GL and post it.

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Cash Management
It is used to capture the cash related activities of the organization . There are main following 4 topics in

CM .

1. Reconciliation

2. Bank account transfer

3. Cash forecasting

4. Cash pooling

Invoice -- Payment

Reconciliation
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Invoice - Receipts

CM Integration

Accounts Payable

Cash
Management

Accounts
General Ledger
Receivable

Step1: Assign Balancing segment values to the legal entity

Step2: Define System parameters

Step3: Run validate application accounting definition program

Bank statement: It contains 2 levels of information

1. Header

2. Import

It can be created in 2 ways

1. Manual creation

2. Import creation

Manual creation : Entering bank statement manually in the oracle application is called a manual creation

Step1: Create bank statement

Import bank statement: Create bank statement auto matic using program is called a bank statement import.

Step1: Run bank statement import

Reconciliation: Either payments or receipts matching with bank statement is called reconciliation . It can be done
in 2 ways

1. Manual Reconciliation

2. Auto Reconciliation
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Manual Reconciliation: It can be created in 2 ways

1. payment Reconciliation

2. Receipt Reconciliation

Payment Reconciliation:

Step1: query the payment document to check the status

Step2: Reconcile the payment document

Step3: Query the payment document to check the status

Step4: Query the payment document in AP

Receipt Reconciliation:

Step1: Query the receipt to check the status

Step2: Reconcile the receipt

Step3: Query the receipt to check the status

Auto Reconciliation: It is used to reconcile either payment or receipts automatically using program.

Step1: Define bank transaction code

Step2: Create bank account statement

Step3: Run auto reconciliation program

Step4 : Query the bank statement to check the result

Un Reconcile : It is used to reconcile statement change to un reconcile the statement.

Step1: Query the bank statement

Step2: Query the receipt to check the result

Bank account transfers: It is used to transfer money from one internal account to other internal bank account.

Step1: Enable bank account transfer authorization

Step2: create new bank account

Step3: define either intra or inter company setups in GL

Step4: create bank account transfer

Step5: clear the payment bank transaction

Step6: clear the receipt bank transaction

Step7: Run create accounting program for transfer to GL

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Step8: Query the cash management in GL and post them

Enterprise Business Tax (EBT)

It is used to maintain the tax related information. There are 2 types of taxes

1. Direct Tax ( Property tax,income tax)

2. Indirect tax ( Sales tax, service tax)

Direct tax : The tax which can be collected from the peoples income .

Indirect tax: The tax which can be collected indirectly from the citizens .

EBT Hirearchy

Taxes Tax status Tax jurisdiction Tax rate

Step1: Define Geographical codes

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Step2: Complete first party legal entity party tax profile

Step2: Define Tax regime

Step4: Define Tax

Step5: Define tax status

Step6: Define tax jurisdiction

Step7: Define tax rate

Step8: Define tax rules

Step9: Enable make tax available on transaction

Accounts Payable invoice with tax :

Step1: Assign tax details to the suppliers

Step2: Create invoice

Accounts Receivable invoice with tax :

Step1: Create invoice transaction

Sub Ledger Accounting (SLA)

It is used to define new accounting methods with new accounting rules

Step1: Create Invoice in AP

SLA Steps:

Step1: Define accounting derivation rule (ADR)

Step2: Define journal line definition (JLD)

Step3: Define Application Accounting definition (AAD)

Step4: Define subledger accounting methods (SLAM)

Step5: Assign new accounting method to the ledger

Step6: Run validate application accounting definition program

Step7: Query the invoice and accounting to check the result

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Structure Query Language

In SQL 3 levels of tiers Application

1. Desktop tier

2. Application Tier

3. Database tire

Data will be stored in database in the table format . Table contains Rows and columns, Column will represent field
in the table and rows will represent the record in the table.

TOAD : ‘TOAD’ is a tool which is used to accessing to the oracle database.

Step1: Login in TOAD

Step2: Table name

(i) Invoice table

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(ii) Query tables

(iii) Where condition

(iv) AND condition

(v) IN condition

(vi) LIKE condition

(vii) Greater than condition

(viii) Less than command

(ix) Between command

Step3: To display selected columns

Step4: Joining table

-----------------------------------------*********************--------------------------------------------

END