TRIUNE TECHNOLOGIES

GENERAL LEDGER (GL)

GL ACCOUNTING CYCLE

WHAT IS GENERAL LEDGER?

General Ledger is a central repository of all your financial

transactions.
All sub-ledger data (AR, AP, INV, WIP, etc.) eventually flows into
General Ledger.
At the end of each month, quarter, year one has to close your
current period and open the next period on your transaction
calendar.
Financial reporting occurs out of your General Ledger.
All financial statements are generated out of General Ledger.
Journal Import is a one stop interface for any data that
comes into GL from external sources (e.g: Sub Ledgers, external
accounting systems, legacy data, etc.)
You can recognize revenue in several currencies in a single
installation of General Ledger.

ACCRUAL v/s CASH

There are two basic accounting methods available in the business world: Cash or Accrual.
Cash Basis Accounting
With the cash method of accounting, you record income only when you receive cash from your
customers. You record an expense only when you write the check to the vendor. Most
individuals use the cash method for their personal finances because it's simpler and less timeconsuming. However, this method can distort your income and expenses, especially if you
extend credit to your customers, if you buy on credit from your suppliers, or you keep an
inventory of the products you sell. Under the cash basis accounting, revenues and expenses
are recognized as follows:
Revenue recognition: Revenue is recognized when cash is received.
Expense recognition: Expense is recognized when cash is paid.
Accrual Basis Accounting With the accrual method, you record income when the sale occurs, whether it be the delivery
of a product or the rendering of a service on your part, regardless of when you get paid. On
the other hand, you record an expense when you receive goods or services, even though you
may not pay for them until later.
The accrual method gives you a more accurate picture of your financial situation than the
cash method. This is because you record income on the books when it is truly earned, and you
record expenses when they are incurred. Income earned in one period is accurately matched
against the expenses that correspond to that period, so you get a better picture of your net
profits for each period.
Under the accrual basis accounting, revenues and expenses are recognized as follows:
Revenue is earned i.e. When products are delivered or services are provided.

JOURNAL IMPORT
Accounting transactions are originated as a result of normal business activities in
Financial and Manufacturing
modules of Oracle Applications, as well as in external modules. In order to register
those transactions into the
General Ledger, a process called Journal Import must take place.
This process works based on the existing data in an interface table. The table is called
GL_INTERFACE. Each sub-ledger populates this table through one or more specific
processes. Once the
information is in the interface table, the Journal Import process loads the General
Ledger tables.
Steps involved in Journal Import
1. Populate GL_INTERFACE table
2. Run Journal Import by Source and/or Group Id
3. If there are errors in JI, correct the errors using the Correct Journal Entry screen
4. Once data is imported, Oracle creates a batch of Journals that is ready for
positing.
5. Post the Journals in GL.

GL TERMINOLOGY
Below are few of the buzz words in GL and what they signify
1.

Ledger A financial reporting entity that uses a particular chart of accounts, functional currency, and
accounting calendar. Oracle General Ledger secures transaction information (journal entries, balances) by
Ledgers. When you use Oracle General Ledger, you choose a responsibility that specifies a Ledger. You then see
information for that Ledger only.
Formerly called Set of Book in R11i. Ledger is an accounting book.
There is a concept of 4Cs in Ledger.
Chart of Account (Particulars of Goods)
Currency (Amount)
Calendar (Date)
Sub ledger Accounting Convention (Cash / Accrual)

Calendar - According to your business needs you need to decide the calendar type
required i.e. monthly, weekly or biweekly, the number of periods, adjusting periods and
the maximum number of periods within a fiscal year.
Currency You can have only one Functional currency per set of books. However, you
can have multiple currencies enabled.
Chart of Accounts - A collection of accounts that will be used by the organization.
Dynamic Inserts - Dynamic insertion is an Accounting Flex field feature whereby you
can allow users to create new combinations upon entering a flex field combination.
For every new flex field combination entered, a unique code combination id is also
created which is used to enter and retrieve data. You may enable or disable this
Accounting Flex field feature at any time, on the Key Segments form.
Cross Validation Rules - If you plan to restrict certain accounts to be used only with
certain company or cost centers then you have to plan on this and define cross
validation rules before the code combination id is created. Once the code combination
id is created, new cross validation rules will not restrict the account's usage.
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Suspense Posting - It is used to balance journal entries for which the entered amounts
are out of balance.

GL CALENDAR SETUPS

Step 1: Define the Period Type Before you define a calendar, you must first define
your period types. Use the Period Types form to define your accounting period types
(navigation = Setup..Financials..Calendar..Types). Oracle General Ledger provides you
with standard period types Month, Quarter and Year
Step 2: Define the Calendar Periods Use the Accounting Calendar form to define
your calendar (navigation = Setup..Financials..Calendar..Accounting). You associate a
calendar and period type with each set of books
For each calendar, you should set up one complete year at a time, specifying which
types of accounting periods you will include in each year. Oracle General Ledger lets
you add periods to your calendar at any time. When you define new accounting periods,
remember to use the same period type that you originally assigned to your set of books.
These are the only periods that General Ledger will recognize for your set of books.
Step 3: Verify the Calendar This is the most important step! Once you have your
calendar set up, review it to make sure it is correct before assigning it to a set of books.
Calendar periods can not be changed once they have been used. This means that if the
period is in an Open Year, or the status is something other than Never Opened, the
period can not be modified via the form. Use the Calendar Validation Report for the
verification.
GL PERIOD STATUSES:

Open
Closed
Permanently Closed
Future Entry

TRANSACTION CALENDAR - The transaction calendar ensures that journals created in

Oracle General Ledger will be posted on valid business days.
CHART OF ACCOUNTS MAPPING - Define a chart of accounts mapping to
map two or more charts of accounts. The chart of accounts mapping is used by
Accounting Setup Manager to complete the setup steps for secondary ledgers, and it is used by the
Global Consolidation System (GCS) to consolidate data between ledgers.
LEDGER SETS - Define Ledger Sets to group ledgers that share the same chart of accounts and
accounting calendar/period type combination to take advantage of processing efficiencies, such as
opening and closing periods across ledgers in a ledger set.
DATA ACCESS SETS - Data access sets control which ledgers can be accessed by different
responsibilities. Data access sets can also limit a user from accessing certain balancing segment values or
management segment values or grant readonly or read and write access to data in a ledger. The ledgers
and ledger sets assigned to a data access set must share the same chart of accounts, calendar, and period
type. PROFILE OPTION NAME - GL: Data Access Set
You can define three types of data access sets:
Full Ledger: Grants access to all the data in a ledger. For example, in a data access set with two ledgers, A
and B,
you can grant read-only privileges to all the data in Ledger A and grant read and write
privileges to all the data in Ledger B.
Balancing Segment Value: Grants access to all or specific ledger/balancing segment value (BSV)
combinations. For example, you can have a data access set with Ledger A, and grant read-only privileges
to balancing
segment value 01, grant read and write privileges to balancing
segment value 02, and
grant no access to balancing segment
value 03 in the same ledger. This is useful for companies that
use a small number of ledgers with a high
number of balancing segment values to represent multiple
companies or legal entities.
Management Segment Value: Grants access to all or specific ledger/management segment value (MSV)
combinations. For example, you can have a data access set with ledger A and grant read only privileges to
management segment value 100, grant read and write privileges to management segment value 200, and
grant no
access to management segment value 300. This can only be used
if you have specified a
management segment in your chart of accounts
You must specify one of the three types for each data access set. Once defined, you cannot alter the type.
You can only add or delete ledgers/ledger sets and segment values specified in the data access set. Oracle
General Ledger automatically creates a data access set when the following occurs: A ledger is created A
ledger set is defined

MANAGEMENT SEGMENT - Management segment is mainly used to restrict users' access by

segment values. The security is implemented using Data Access Set and Responsibility.
For example lets say you have following segments in your COA structure:
COMPANY
ACCOUNT
DEPARTMENT
PROJECT
Lets say you have following DEPARTMENTS:
10
20
30
40
You can declare DEPARTMENT segment as your MANAGEMENT segment using Qualifiers window.
Now you are in a position to restrict department users to view data only pertaining to their department
(through data access set + responsibility)

DEFINITION SETS - For ease of maintenance, consider a naming convention for your Definition
Access Sets that group similar definitions together. For example, you can create a Definition Access Set
that groups similar definitions together, such as all of your FSG components. Alternatively, you can
create definition access sets that group definitions by
privileges, such as Use, View, and Modify privileges. Because you can have an unlimited number of
Definition Access Sets
assigned to a responsibility, a good naming convention prevents confusion as you secure more
definitions in the future.

CROSS VALIDATION RULES Cross Validation Rules

What? If you plan to restrict certain accounts to be used only with certain company or cost
centers then you have to plan on this and define cross validation rules before the code
combination id is created. Once the code combination id is created, new cross validation
rules will not restrict the account's usage.

How does cross validation work

User entering segment values in a flex field pop-up window, the flex field checks whether the values make
up a valid combination before updating the database. If the user entered an invalid combination, a
diagnostic error message appears.

Cross-validation rules have no effect on combinations that already exist when you define your crossvalidation rules. For example, if you define a new cross-validation rule, but have existing entries in your
combinations table that violate this rule, the system looks at the GL_CODE_COMBINATIONS table first. If
that combination exists and it is enabled, it treats that combination as valid.

Enabling Cross Validation Rules Navigate to Setup/Financials/Flex fields/Key/Rules.

How are cross validation rules evaluated?

To pass a rule, a combination must be included in at least one Include element, and must not be
included in any Exclude element.
The combination is considered to be included in an element if all
of the segment values fall within the low and high range of that include or exclude element.
The Cross
Validation Rules are evaluated alphabetically. The Exclude elements are looked at first.

Cross Validation Rule Listing Report - This is a report that lists all the Cross Validation
Rules associated with an application, Flex Field Name and Flex Field Structure.

Cross Validation Rule Violation Report This is a report that lists all the rules that violate
the cross validation rules. You have an option of disabling the rule that is in violation by
selecting a parameter in the report parameters.

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REVALUATION

Revaluation is the process of revaluing balances that have transactions denominated in foreign
currency. Revaluation reflects the change in conversion rates between the date of the transaction
and the current market rate of each currency. When you run revaluation, a journal entry is created
that either increases or decreases the functional currency amount for that account, based on the
fluctuation of the exchange rate. The resulting gain or loss amounts are posted to Gain/Loss or
Cumulative Translation Adjustment account you specify. This process creates a revaluation batch
containing separate journal entries for each revalued foreign currency.
The revaluation adjustment is created in your functional currency, this is where the fluctuation is.
The foreign currency of the transaction will stay the same, it is the functional currency balance
that is adjusted.
You can revalue a single account or range of accounts, for both income statement and balance
sheet reporting.

Income Statement Accounts:

Are revalued on the basis of the PTD or YTD balances, in accordance with the Income Statement
Rule profile option.
Balance Sheet Accounts:

Are always revalued on the basis of their YTD balances.

You can rerun revaluation more than once in a period. Based on the Revaluation calculation, any
additional journal entries posted after the initial Revaluation journal has been posted, will be
picked up in the balances that are subsequently revalued in that same period. The subsequent
Revaluation journal entry will then represent the incremental change in the revalued balance, due
to the additional journal entries posted after the initial Revaluation.
GL: Revaluation Auto Query Last Run Range: You can rerun revaluation over again without
having to re-enter account ranges every time you run revaluation. Set the profile option GL:
Revaluation Auto Query Last Run Range to Yes. The Revalue Balances window will then reuse the
account ranges you last used when you generated revaluation.

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REVALUATION
REVALUATION FORMULA
YTD: ACCOUNT AMOUNT = ((begin_balance_dr + period_net_dr - begin_balance_cr - period_net_cr) *
revaluation_rate)) LESS
(begin_balance_dr_beq + period_net_dr_beq - begin_balance_cr_beq - period_net_cr_beq)
PTD: ACCOUNT AMOUNT = ((period_net_dr - period_net_cr) * revaluation_rate)) LESS
(period_net_dr_beq - period_net_cr_beq)
STEPS FOR RUNNING REVALUATION
1.
DEFINE REVALUATION RATE

Responsibility: General Ledger Super user Navigation: Setup/Currencies/Rate/Period

2.
Revalue Account Balances

Prerequisites:
__ Define an unrealized gain/loss account.
__ Define a Cumulative Translation Adjustment account in the Set of Books window.
__ Define a revaluation rate for each currency for each period for which you want to run revaluation.

Navigation: Currency/Revaluation
3. Navigate to the Revalue Balances window.
4. Enter the accounting Period for the balances you want to revalue.
5. Enter the Unrealized Gain/Loss or Cumulative Translation Adjustment Account to record net gains
and losses from the revaluation. The default is the account you entered for the previous revaluation.
6. If you choose to revalue a single currency, enter the Currency to be revalued.
7. Run revaluation.

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TRANSLATION
Translation is the process of translating account balances from your functional currency to
another currency. This process translates balances only, it does not translate individual
transactions.
You can translate your actual and budget account balances from your functional currency to
another currency. If you want to report financial results in Euro you can use General Ledger's
translation feature to translate your account balances from your functional currency to Euro.
Run translation after you have completed all journal activity for an accounting period. If you post
additional journal entries or change your translation rates after running translation for a period,
you must retranslate.
You cannot run Translation in your first period. You must define a period prior to the first period
you want to translate. You must also have a period defined following the period you want to
translate. You must define Period rates and Historical rates before you run Translation. The first
period that you translate for the very first time will be the earliest period that you can ever go
back to retranslate. To run translation prior to the first period ever you will have to purge
translate balances. After purging translated balances, you can go back and retranslate. If you have
purged several periods, you must go back to the earliest period and retranslate every period
consecutively. This is because you are typically using different rates to translate each period, and
GL_BALANCES is being updated for each period's translated balances. The Cumulative
Translation Adjustment account is a running total of the translation differences.
Prerequisites
Define a period in your calendar that precedes the first period you want to translate.
Define a period in your calendar following the period you want to translate.
Enter period and historical rates for your target currency.
If you are translating budgets, define your source and target budgets.

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TRANSLATION
STEPS TO RUN TRANSLATION
Responsibility: General Ledger Super user
Navigation: Currency/Translation
1.
Navigate to the Translate Balances window. General Ledger displays the
Functional Currency for your set of books as the currency you are translating.
2.
Select Actual for the Balance Type to translate.
3.
Enter the Target Currency to which you want to translate. You can choose any
enabled currency other than your functional currency.
4.
Enter the Period of the balances you want to translate.
Attention: The Period you enter the first time you translate actual
balances will
be the earliest period for which you can translate actual balances for any
subsequent translations.

Choose the Translate button to begin a concurrent process to translate account

balances. General Ledger displays the request ID (Req ID).

PURGING TRANSLATED BALANCES

Responsibility: General Ledger Super user
Navigation: Setup/System/Purge
1.
2.
3.
4.

Select the 'Translated Balances' tab.

Select the currency.
Select the period.
Click Purge button.

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SUMMARY ACCOUNTS

SUMMARY ACCOUNTS

A summary account is an account whose balance is the sum of balances of multiple detail
accounts. Summary accounts are used to perform online summary inquiries, as well as speed
the processing of financial reports, Mass Allocations, and recurring journal formulas.
Summary Templates are used to create summary accounts.

SUMMARY v/s PARENT ACCOUNT

Parent Account

No Inquiry

No Posting

Used for Reporting

Used for Mass Allocations

Summary Account
Online Inquiry
Posting
Used for Reporting
Used for Mass Allocations
Budgetary Control

STEPS TO CREATE SUMMARY ACCOUNTS

The process of creating summary accounts is completed in the following steps:
Determine your summary account needs.
Plan the summary account structure to meet your needs.
Define your parent/child hierarchy.
Define Rollup groups.
Assign parents to Rollup groups.
Create your summary template.

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ROLL UP GROUPS

Defining rollup groups allows a little more flexibility in your summary templates.
Rollup groups provide a form of intermediate information and are a collection of parent
values.

ASSIGINING PARENTS TO ROLL UP GROUPS

Parent values should be assigned to the rollup group
Setup/Financials/Flex fields/ Key/Values. After choosing the appropriate Title,
Structure and Independent
Segment Type, place your cursor in the Value field of the parent your are assigning.

CREATE SUMMARY TEMPLATES

When setting up your summary templates you have to assign to each account
segment either D, Detail (By assigning this value to a segment, your template
creates and maintains a summary account for every detail segment value) or T
value,
Total, creates and maintains a summary account that sums balances for all detail
segment values.

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AUTO POST

Auto Post is a process in GL that enables users to post Journal Entries automatically
once they are created in GL.
1. Navigate to the Auto post Criteria Sets window. The Navigation Path is:
Setup>Journal>Auto post
2. Enter a Criteria Set name and Description.
3. Mark the Enabled box.
4. Choose the Posting Submission Options.
5. Enter the Journal Effective dates.
6. Enter the Priorities for the criteria set. Priorities must consist of a Priority
Number, Journal Source, Journal Category, Balance Type, and Period. Priority
Numbers must be between 1 an 99 with 1 being the most important. 'ALL' can be
entered in any field except Priority.
7. Save the changes.

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JOURNAL APPROVAL

Journal Approval feature is used to ensure that journal entries and batches are approved by
appropriate management personnel before the journals can be posted to your account balances
Journal Approval uses Oracle Workflow to control and monitor the approval process, sending
notifications to journal batch preparers and approvers when needed.
Before you use Journal Approval, you must::

Enable journal approval for your Ledger.

You must also set up your journal sources to use journal approval.
You must create an approval hierarchy and define your approver authorization limits.
Set the two profile options Journals: Allow Preparer Approval and Journals: Find Approver Method. See: Setting
General Ledger
Configure the GL Journal Approval Process in Oracle Workflow Builder.
You can change the default settings for Request Approval From Approver timeout and the Reached Manager
Notification Resend Limit.

To enable Journal Approval for your Ledger: When defining your Ledger, mark the Enable
Journal Approval check box on the Define Ledger window.
To specify journal sources that require journal approval: On the Journal Sources window, mark
the Require Journal Approval check box for each journal source that should be subject to approval.
To create an approval hierarchy: Use the Enter Person window in Oracle General Ledger to enter
all of your employees who are involved in preparing and approving journal entries and batches.
When you enter an employee, you also enter the employees supervisor or manager name. The
supervisor is the default next approver for journal entries and batches. Likewise, the supervisors
manager is the next approver after the supervisor.
To define authorization limits:
1. Navigate to the Journal Authorization Limits window.
2. Enter the Employee name, or select it from the list of values.
3. Enter the amount of the employees Authorization Limit.
4. Repeat the previous two steps for each employee for whom you want to define
authorization limits.
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5. Save your work.

JOURNAL APPROVAL

Submitting Journal Batches for Approval

1. Navigate to the Find Journals window.

2. Query the journal batch you want to submit for approval.
3. Select the batch from the Enter Journals window.
4. (Optional) Choose Review Batch or Review Journal if you want to review the batch information or journal
details before you submit it for approval. Note: The Status region on the Batch window will display the current
statuses for Posting, Funds reservation, and journal Approval.
5. From either the Enter Journals, Batch, or Journals window, choose the More Actions button.
6. Choose the Approve Batch button.
After you submit your journal batch for approval, you should receive a message indicating the result of your
request. The message will inform you that your journal batch:
Was selfapproved, if you are authorized to approve your own journal batches, or
Has been sent to an approver, or
Was invalid.

Approving or Rejecting Journal Batches

1. Check your notifications. Journal approval requests will display the following in the Subject field of the
Notifications Summary window:
A journal batch for < batch amount> requires your approval
2. Open the notification that requests your approval.
3. (Optional) Review the batch information or journal details before you approve or reject it. If your current
responsibility allows you access to the journal batchs set of books, you can drill down from the Notifications
window to the Enter Journals window to review the batch. Otherwise, you can use General Ledgers journal
inquiry feature to review the batch.
The journal approval notification you receive will include the batch name, total batch amount, functional
currency, preparers name, monitor URL, and preparers comments. Use this information to query the
journal batch.
4. With the journal batch approval request displayed in the Notifications window, choose the Respond button.
5. Select Approve or Reject from the Action pop list.
6. (Optional) Enter a Comment.
7. Choose OK to save your work.
PROFILE OPTIONS

Request Approval From Approver timeout the standard setting is 7 days. After this time has expired, Journal Approval notifies
the preparer that no approver response has been received.
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Reached Manager Notification Resend Limit the standard setting is 1 notification. Journal Approval will resend notifications
to
the approver until the limit is reached.

RECURRING JOURNALS

Define recurring journal formulas for transactions that you repeat every accounting period, such as depreciation
charges and allocations.

You can quickly create new recurring formulas by copying and modifying existing formulas. You can define recurring
journal formulas for your functional currency, foreign currencies which have a fixed relationship with your functional
currency.
RECURRING JOURNALS 3 TYPES OF JOURNAL ENTRIES
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 un-posted 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 FORMULA BATCHES

1.
2.
3.
4.
5.
6.
7.

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 formula:

1. Enter a Step number to specify the order in which you want to process the steps in your formula. Each
formula can contain an unlimited number of steps.
2. Enter a factor for the formula step. There are two types of factors you can use:

Enter a fixed Amount.

Specify an Account to use a balance in the formula calculation.

You can use standard, endofday, or average balances in your formula lines.
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3. Specify the type of calculation you want to perform by entering a mathematical Operator for the formula step.
The valid operators are based on Easy Calc a General Ledger mathematical notation feature.

CALCULATION FORMULAS

ENTERING FORMULAS WITH EASYCALC

EasyCalc is a powerful, yet easytouse calculation notation based on the mathematical logic
used by HewlettPackard calculators. EasyCalc lets you enter complex formulas to calculate
journal entries, allocations, budgets and report balances.
To enter an EASYCALC formula:
1. Enter the first factor to use in your calculation. The factor can be a fixed amount, or an
account balance.
2. Use the EasyCalc operator Enter to save the value of the first factor in memory. Enter identifies
the first factor of each calculation, and separates it from previous calculations in the formula.
Using Enter enables you to create a logical sequence of formula steps, and enter nested
calculations in a formula.
3. Enter the next factor to use in your calculation.
4. Enter the EasyCalc operator to specify the calculation involving the previous two factors. The
following are the valid mathematical operators you can use in an entry formula:
Symbol Operation E Enter + Addition Subtraction * Multiplication / Division

SIMPLE CALCULATION

COMPLEX CALCULATION [ ( A + B ) * C ] / ( D + G )

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GENERATING RECURRING JE
BATCHES

You must generate recurring journals to create unposted journal entries from the
recurring journal formulas you defined. After generating the formulas, you can
review or edit the recurring journal batches before posting them.
To generate un posted batches from recurring journal formulas:

1. Navigate to the Generate Recurring Journals window.

2. Select the Recurring Batches you want to generate.
3. Enter the accounting Period for which you want to create an unposted journal batch.
The default is the first open accounting period following the one for which you last
generated recurring journals.
4. Choose the Recurring Journal button to review the batch definition. You can generate
your recurring journal batch from this window.
5. If you have a recurring journal entry formula that uses budget balances to calculate
journal amounts, enter the Budget name.
6. Schedule your Recurring Journal batch.
7. Choose Generate. General Ledger submits a concurrent process to create unposted
journal batches based on the selected recurring journal formula batches. Note the Request
ID assigned to the concurrent process. General Ledger names the resulting journal batch
as follows:
<Recurring Batch Name>: <Date> <Time>. For example, Project Expense: 15JAN95 16:36.

8. If you generated skeleton journal entries, use the Enter Journals window to complete
the journal information.
9. Review your generated journals. The Conversion region of the Enter Journals window
displays the conversion information your generated recurring journal.
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10. Post the generated recurring Journal batches to update account balances.

MASS ALLOCATIONS

Use journal entries to perform simple or complex allocations. For example, you can allocate a
portion of your rent expense to another division, or, you can allocate a pool of marketing costs to
several departments based on the ratio of department revenues to total revenues.
You define a separate recurring journal entry formula for each allocation, and you can group
related allocation entries together in a recurring journal batch. Each line of the recurring journal
entry contains a target account, as well as the formula you want to use to calculate the allocation
amount.
Reserve the last line of each entry for the offsetting account. Enter line number 9999 and the
offsetting account to have General Ledger automatically generate the offsetting amount. You do
not need to enter a formula to calculate the offset
Creating Net Allocations Net allocations are allocated amounts that reflect changes to the cost
pool. Rather than reallocating the entire revised amount, a net allocation allocates only amounts
that update the previous allocations. The net effect is the same as reversing the previous
allocations and posting the entire new allocation amount. This enables you to rerun the
allocations as many times as you want in the same accounting period without over allocating.
Creating StepDown Allocations Stepdown allocations distribute amounts from one allocation
pool to a subsidiary allocation pool. For example, you might first allocate a portion of your facility
costs to your MIS department, then allocate total MIS costs (including the allocated facility costs)
to other departments.
Creating RateBased Allocations Ratebased allocations use current, historical or estimated
rates to allocate costs such as employee benefits, commissions, bad debt, warranty costs and
overhead. For example, you might want to allocate warranty costs to each division based on sales
revenues and a warranty loss rate.
Creating UsageBased Allocations Usagebased allocations use statistics such as headcount,
units sold, square footage, number of deliveries or computer time consumed to calculate
allocation amounts. For example, you might want to allocate your rental expense based on square
foot usage.

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MASS ALLOCATION FORMULAS

TO ENTER A MASS ALLOCATION FORMULA:
1.
Navigate to the Define Mass Allocations window.
2.
Enter or query the name of the Mass Allocation batch to which you want to add the formula.
3.
Choose Formulas.
4.
Enter the Name, Category, and Description of the Mass Allocation formula. Categories help you
group journal entries in a convenient manner for reporting and analysis.
5.
Choose whether to Allocate Balances From the full balance or from a single entered currency.
6.
If you choose Full Balance, General Ledger allocates your entire account balance, which
is comprised of amounts
entered in your functional currency, as well as amounts converted
to your functional currency from a foreign currency. The generated Mass Allocation will be a
functional currency journal entry.
7.
If you choose Single Entered Currency, General Ledger allocates the portion of your
account balance entered in the
Currency you specify. The generated Mass Allocation
will be a journal entry in the specified currency.
8.
Choose Full Cost Pool Allocation to have any rounding difference resulting from the Mass
Allocation computation added to the allocations with the largest relative balance. If you do not
choose this option, any rounding differences will remain in the original account.
9.
Enter the formula lines.
10. Save your work.
11. Choose Validate All to validate the batch, as well as all previously un validated batches. If you do
not validate all batches, General Ledger will ask if you want to validate all un validated batches
when you close the window.
12. Check the Mass Allocation batch validation status to confirm the batch passed validation.

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GL REPORTS

General Ledger provides the following categories of standard reports and listings:
Account Analysis: These reports list the accumulated balances of a range of accounts and all journal
entry lines that affect that
range. The same segment security rules defined for your chart of accounts extend to account analysis
reports.
Budget: These reports and listings contain information about your budgets and budget
organizations, including account assignments and budget hierarchies.
Chart of Accounts: These reports and listings provide information about the accounts in your chart
of accounts, including segment values, rollup ranges and suspense accounts.
MultiCompany Accounting and Consolidation: These reports and listings provide information
about your multicompany accounting and consolidation activities.
Currency: These listings show the daily, period and historical rates you defined for foreign
currencies.
Financial Statement Generator: These listings provide summary or detail information about the
definitions of your Financial Statement Generator report components, reports and report sets.
General Ledger: These reports list beginning and ending account balances, and all journal entry
lines affecting each account balance in your functional and foreign currencies. The same segment
security rules defined for your chart of accounts extend to general ledger reports.
Journals: These reports provide journal information in functional and foreign currencies, including
posted, un posted and error journals. You can also review journal activity for particular periods and
balancing segments. The same segment security rules defined for your chart of accounts extend to
journals reports.
Trial Balance: These reports list account balances and activity for functional and foreign currencies,
budgets, encumbrances and actuals. You can request this information by currency, accounts, and so
on. The same segment security rules defined for your chart of accounts extend to trial balance
reports.
Other: These reports and listings provide information about Mass Allocation/Mass Budget definitions,
actual or budget recurring journal formulas, statistical units of measure and valueadded taxes
received and paid.

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