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Flow of Accounting Entries in Oracle App

The document discusses the accounting flow in Oracle Applications. It covers the transaction flow between modules like Purchasing, Payables, Inventory, Order Management, and Receivables. It describes how subledger transactions from these modules are posted to the General Ledger, and then the posting process in the General Ledger. Key setups required in each module to define default accounts are also summarized. Finally, it provides examples of accounting events generated in different modules.

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Srinivas Azure
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316 views19 pages

Flow of Accounting Entries in Oracle App

The document discusses the accounting flow in Oracle Applications. It covers the transaction flow between modules like Purchasing, Payables, Inventory, Order Management, and Receivables. It describes how subledger transactions from these modules are posted to the General Ledger, and then the posting process in the General Ledger. Key setups required in each module to define default accounts are also summarized. Finally, it provides examples of accounting events generated in different modules.

Uploaded by

Srinivas Azure
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Agenda

• Understanding the Accounting Flow in Oracle


Applications
• Transaction Flow
• Modules Covered
• Set up required in Oracle Applications
• Defaulting Accounts
• Posting to General Ledger from Sub-Ledger
• Posting in General Ledger
• Viewing the Trial Balance
Understanding the flow of Accounting in
Oracle Applications

Receivables Purchasing

Payables

Assets

SAP

Interfaces General Ledger


Other Legacy with GL
Sources
Projects

Accounting
Engine
Cash Mgmt Cost Mgmt
Transaction Flow
• Create Opening Balances in General ledger and Subledger
• Place Purchase order
• Receive the Materials into Stores
• Receive the Supplier Invoice from Supplier
• Match the Supplier invoice with PO and make Payment
• Issue Materials to Production
• Complete the Production Order and Build Inventory
• Ship the Material to Customer
• Raise invoice on Customer
• Receive Cash from Customer
• Reconcile the Payment and Receipt in Cash Management
• Post Sub Ledger Transactions into GL
• Run Trial Balance and Financial Statements (Profit & Loss
Account & Balance Sheet
Modules Covered
• Oracle Purchasing
• Oracle Payables
• Oracle Inventory
• Oracle Manufacturing (WIP Accounting)
• Oracle Order Management
• Oracle Receivables
• Oracle Cash Management
• Oracle General Ledger
Cost Calculation

FG/Sub Assembly Total Cost

Item Cost Operations Cost

Purchased Item/ Routing


Sub Assembly Cost
Operations Rate X Usage

Production / Service Departments Department Usage

Men, Money, Machine Resources Rate


Set up Required in Oracle Applications

• Each Module has a Parameter screen or Controlling Screen


through which the Accounts are Defaulting
– Ex (Inventory Organization for Materials in Inventory
Module, Receiving options for Inventory Receipt in
Purchasing Module, Financial Options for Payables)
• There are other places also where we can define the Accounts
and there is an inbuilt hierarchy within the Applications as to
where from the Accounts need to be defaulted
• Each Module Needs to set the Accounts for an Accounting
Event Happening in that Module
Defaulting Accounts in Case of
Purchasing
Defaulting Accounts in Case of Purchasing
Posting to General Ledger from Sub-Ledger

• Sub-Ledger Accounting Entries are Transferred to General


Ledger Interface table through the Concurrent Programs
• We can schedule the concurrent Process to Transfer Data to GL
instead of manually running the concurrent Programs.
• You can run the Process Daily, Weekly, Monthly
• You can transfer the data either in
– Summary or (Total Transaction for an Account Combination
per day)
– Detail (Each Transaction)
Posting in General Ledger

• This Process Transfers Data from GL Interface Tables to


GL Main Tables
– (i.e) From GL_JE_INTERFACE table to
GL_JE_HEADERS and GL_JE_LINES
• Once the Data is Posted No further changes to the Data is
permitted
Accounting Events – Oracle Purchasing

• Oracle Purchasing
Inventory Accruals
Transfer to Sub Inventory
Purchase Price Variance
Invoice Price Variance (IPV) and Exchange
Rate Variance
Return to Supplier From Receipt of Materials
Inter-organization Transfer
Accounting Events – Oracle Payables
• Invoices
 Invoice
 Invoice adjustment
 Invoice cancellation
 Prepayment application
 Prepayment un-application
• Payments
 Payment
 Future dated payment maturity
 Payment adjustment
 Payment cancellation
 Payment clearing
 Payment un-clearing
Accounting Events – Manufacturing
(WIP)
• Oracle Inventory
Material Transfer from Stores to WIP
WIP Completions and Material Consumption
Entry
Operations Completion Entry
Finished Goods Stock Creation Entry
Inter-Org Transfer
Sub-Inventory Transfer
Accounting Events – Order Management

• Order Management
Cost of Goods Sold Entry in Inventory Module
Accounting Events – Oracle Receivables

• Transactions
Invoices
Debit Memos
Commitments
Invoices Against a Deposit
Invoice Against guarantee
Credit Memos
On Account Credit Memo
Accounting Events – Oracle Receivables
• Receipts
Unapplied Receipts
On account Receipt
Applied Receipt
Reverse Receipt
Charge back
Adjustments
Miscellaneous Receipts
Bills Receivables
Accounting Event – Cash Management

• Oracle Cash Management


Cash Receipt Clearing
Cash Payment Clearing
 Journals
Open Interface
Accounting Event – General Ledger

• Oracle General Ledger


Journal Entries Created from Sub Ledger
Manual Journal Entries created in GL
Inter-Company Transfer Entries
Translation entries
Revaluation Entries
Flow of Accounting in
oracle Applications
Case Study

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