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1 . Explain P2P CYCLE ? A : The word p2p stands for procure to pay.

when an organization has a requirement for an item it will follow this process every time, Because of that we call it as a cycle & in this cycle the process starts with procurement and ends with payment .so we call it as p2p cycle P2p cycle includes 5 modules among them 3 modules play a major role in the cycle. Modules involved in p2p are 1 .Inventory (INV) 2 . Purchasing (PO) 3 . Accounts Payable (AP) 4 . Reconcillation 5 . General Ledger (GL) Step1 : whenever there is a requirement for an Item in an organization Inventory department will raise a requisition. Requisition can be either an Internal Requisition or External Requisition. Step2 : Based on the Ability higher authorities will check the Requisition and will Approve it. After Approval Inventory Department will share the Approved Requisition with the purchase Department. Step3 : Based on the Approved Requisition shared by Inventory Department purchase Department will raise Request For Quotation(RFQ) and it will be sent to the multiple vendors. Step4 : After receiving RFQ from multiple vendors they will do the Quotation Analysis(QA).QA will be done based on the factors such as best price, delivery date etc. Step5: After doing the QA they will select the best Quotation and then will raise the Purchase Order(PO) to the particular vendor. Step6: once the material is received by Inventory both Inventory and Purchase Department will track the information about the material received in the form of Goods receipt note(GRN). Note :In some Organizations Quality check will be performed and if the material is not good then material can be returned back so called Purchase Returns. Note: If we purchased any Asset it will be recorded in the Fixed Asset (FA) and Depreciation will also be calculated for that Asset. Step7 : Based on the GRN information shared by PO, Accounts Payable Department will record the Purchase Invoice(P.I). Step8: After recording the Purchase Invoice in order to do the payment , Approval for the Payment will be done and then payment will be done to the vendor.

Step9: Once the payment has done to the vendor Reconcillation will be done.i.e Payment Reconcillation with the bank statement.

Step10: Finally all this Modules Information can be used for preparing Financial Reporting in General ledger

2. EXPLAIN O2C CYCLE? A:The word O2C stands for Order To Cash .when an organization sales the items it will follow a process every time repeatedly so called a cycle .In O2C cycle the process starts with Receiving the Order and ends with Cash Receipt. Because of that we call it as O2C cycle.O2C involves 5 modules among them 3 modules play a major role. 1. Inventory (INV) 2. Order Management (OM) 3. Accounts Receivable (AR) 4. Reconcillation 5. General Ledger (GL) Step1 : Sales Department will receive the orders from the customers. Step2: Before giving the assurance to the customer, sales department will check for the availability of the Item in the Inventory Department. Step3 : After checking the availability Sales Department will Book the Sales Order (SO). Step4: Sales Department will ask the Inventory Department to move the material to staging Area .Moving the material from Sub inventory to Staging Area is called Pick Release. Step4: After pick Release Material will be sent to the Customer .this process is called Ship Confirm. Step5: Based on the Ship Confirm Information Accounts Receivable will record the Sales Invoice. Step6:After recording Sales Invoice Cash Collection will be done in Accounts Receivable. Step7: After receiving the collections Receipt Reconcillation will be Performed with the Bank Statement. Step8: Finally all this Information will be used for preparing the Financial Reporting in General Ledger.

3. How Many Year Types we have? A: Every Organization will follow its own Finacial Year. Year types are of two types. they are: 1. Fiscal Year 2. Calendar Year Fiscal Year : A finacial year that starts in one year and ends in the other year is called Fiscal Year. Example: 1-April-2012 to 31-March-2013 Calendar Year : A finacial year that starts in one year and ends in the same year is called calendar year. Example: 1-Jan2012 to 31-Dec-2012

4. How Many Period Types We have? A: Period types are classified in to 6 types .They are 1. Yearly 2. Half Yearly 3. Quarterly 4. Monthly 5. Weekly 6. Daily Every Organization will follow their own period Type based on their requirement. Yearly : In yearly period type we will have only one period Half Yearly : In Half Yearly period type we will have 2 periods Quarterly : In Quarterly Period type we will have 4 periods Monthly : In monthly period type we will have 12 periods Weekly : In Weekly period type we will have 52 weeks Daily : In daily Period type we will have 365 periods

5. How Do We Create Calendar? A. In order to record the transactions we need date .To use the date first we need to prepare a calendar .To create a calendar we should first define the period type. creation of the calendar will be done as Follows: Define Period Type Navigation : Setup ->Financials -> Calendars -> Types ->Period Types 1. Period Types window will be displayed here we have to define our period type. 2. IN this window we need to specify the period type we require along with a name in the period type field 3. Specify the No of periods we require for this period type 4. Select the year type either Fiscal of calendar year 5. Save the window 6. Once period type is created. our next step is to create a calendar Define Calendar Year Navigation: Setup -> Financials -> Calendars -> Accounting Calendar 1. Accounting Calendar window will be displayed. now we have to create our own Accounting calendar 2. Name the calendar 3. Create the records based on the period type and the Year type we selected 4. If there is a need of adjustment period we can add the adjustment record and then enable the option adjustment . 5. After completion of creating Calendar save it and compile the Calendar 6. If we want to see the status of the Calendar we created we can go for View -> Request -> Find -> Calendar 7. If the status is normal and completed it means that no errors are occurred in it. In this way process of creating the calendar completes.

6. How Many Types of currencies we Have ? A: Oracle provided the currencies in the application which are called as seeded currency values. Currencies are of three types. They are : 1. Functional Currency 2. Foreign Currency 3. Stat Currency Functional Currency : Where we are doing the business that country local currency is called Functional Currency Foreign Currency : Other than the Local currency we call it as Foreign currency Stat Currency : If the values cannot be measured with the money is called as the Stat Currency Both Functional and Foreign Currency are called Monitory Currency Stat Currency is called Non Monitory Currency.

7.What is the Functional Currency Journal and Foreign Currency Journal? A: Functional Currency Journal : When we are recording the transactions in the journal with Functional Currency we call it as Functional Currency Journal. Foreign Currency Journal : When we are recording the transactions in journal using Foreign Currency we call it as Foreign Currency Journal.

8 . How do we Create COA? A: The word COA stands for chart of Accounts. In order to create COA we Have an application called Accounting Key Flex Field(KFF) in General Ledger. By using this KFF we will create COA. The first thing in COA is we have to create a structure. COA consists of organization Structure, segments, value set , segment values. The process of Creating COA is as Follows : Create COA : Navigation : Set up -> Financials -> Flex fields -> Key -> Segments Step1 : Key Flex Field Segments Dialog box will be displayed Step2 : Create the Structure by Using KFF

Step3 : Go for Segments tab in order to create segments Step4 : In segments tab name the segments we require Step5 : Now create the value set for the segments by specifying the value range for each segment Step6 : After creating value sets for the segments assign the value set to the segments Step7 : Save the segments and then our next step is to assign flex field qualifiers for the segments We have 6 segment Flex Field Qualifiers. They are : 1. Balancing Segment Flex Field Qualifiers 2. Natural Account Segment Flex Field Qualifiers 3. Cost Center Segment Flex Field Qualifiers 4. Inter Company Segment Flex Field Qualifiers 5. Secondary Tracking Segment Flex Field Qualifiers 6. Managing Segment Flex Field Qualifiers Step8 : Assign the flex Field Qualifiers to the Segments Step9 : Now we have to enable free Flex Field Definition option Step10 : Save it and Compile it. Step10 : check the Status.

Creating Segment Values : Navigation : Setup -> Financials -> Flex Field -> Key -> Values Step1 : We have to give our structure name in the Find Key Flex Field Segments Window Step2 : Now we have to select each and every segment to create segment values Step3 : While creating segment values assign segment qualifiers to the segment values Step3 : After creating segment values for each segment save them. In this way COA Creation will be done.

9. How do we Create PL? A: In order to record the Day to day Transactions we need a Primary Ledger. In order to record the Transactions in GL we need 3 cs AND FOR RECORDING IN Sub ledger we also need another C.THE 4 CS are : 1. CALENDAR 2. CURRENCY 3. COA 4. ACCOUNTING METHOD Creation of PL : Navigation : Setup -> Financials -> Accounting Set up Manager -> Create Accounting Set up Step1 : First we have to go for create a accounting set up Step2 : Here we need to name our PL and then we need to add the 4 Cs for creating pl Step3 : Once Pl is created we need to create a legal entity for our pl Step 4 : Legal entity must be created by giving the legal information Step5 : Once legal entity is created we have to add this legal entity to our PL Step6 : While adding the legal entity to our PL we have to update the Balance segment values Step7 : After adding BSV legal entity will be assigned to PL Step8 : Finally after making all the status as complete in PL we can go for complete option in pl window Step 9 : Now save the pl By this creation of PL will be completed

10.How do we Create Responsibility ? A: Responsibility can be created in System Administrator. Create Responsibility :

Navigation : File -> Sytem administrator -> Security -> Responsibility ->Define Step1 : In Responsibility Window First we have to give a responsibility name Step2 : Select the application as GL Step3 : Give a name for the Responsibility Step4 : Go for Menu tab and select GL super user Step5 : In data Group tab select the group name as standard and application as GL Step6 : In Request Group tab go for GL concurrent program group and application as GL Step7 : Now save the Responsibility we created

11. How do we assign profile option to responsibility ? A: After creating the Responsibilty our next step is to assign our PL to the responsibilty we created. in order to assign a ledger to responsibility we have a profile option called GL LEDGER NAME. using this profile option we have to assign the PL to responsibility. to assign the profile option to responsibility the navigation is as follows Navigation : Profile -> System Step1 : We will get find system profile values window Step2 : Give the responsibility name for which we want to use profile option Step3 : In the bottom we will find a tab so called Profile Step4 : In that tab select for GL LEDGER NAME as the profile option