R12.

x Oracle Financial
Applications Overview
Student Guide Volume - 1
D60216GC10
Edition 1.0
April 2010
D64753



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Copyright 2007, 2010, Oracle. All rights reserved.

Disclaimer

This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy and
print this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.
Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,
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The information contained in this document is subject to change without notice. f you find any problems in the document, please
report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is not
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The U.S. Government's rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restricted
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Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective
owners.

Author
Shivranjini Krishnamurthy
Technical Contributors and Reviewers
Ivy Farren, Ruth Kukla
This book was published using: Oracle Tutor
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Copyright Oracle, 2010. All rights reserved.
R12.x Oracle Financial Applications Overview Table of Contents
i
Table of Contents
eBusiness Suite Overview................................................................................................................................1-1
eBusiness Suite Overview.............................................................................................................................1-2
Objectives......................................................................................................................................................1-3
Agenda...........................................................................................................................................................1-4
Key Business Flows.......................................................................................................................................1-5
Forecast to Plan .............................................................................................................................................1-6
Procure to Pay................................................................................................................................................1-7
Demand to Build............................................................................................................................................1-9
Campaign to Order ........................................................................................................................................1-11
Click to Order ................................................................................................................................................1-12
Order to Cash.................................................................................................................................................1-14
Contract to Renewal ......................................................................................................................................1-16
Request to Resolution....................................................................................................................................1-18
Project to Profit..............................................................................................................................................1-19
People to Paycheck........................................................................................................................................1-21
Quiz ...............................................................................................................................................................1-22
Summary........................................................................................................................................................1-24
Accounting to Financial Reporting ................................................................................................................2-1
Accounting to Financial Reporting................................................................................................................2-2
Objectives......................................................................................................................................................2-3
Agenda...........................................................................................................................................................2-4
Purpose of General Ledger ............................................................................................................................2-6
General Ledger Capabilities ..........................................................................................................................2-7
Functions and Features ..................................................................................................................................2-8
General Ledger Accounting Cycle ................................................................................................................2-9
Journal Entry Functions.................................................................................................................................2-10
Sharing Ledgers Across Oracle Applications................................................................................................2-11
Accounting Entries Interface Information .....................................................................................................2-12
Subledger Integration ....................................................................................................................................2-14
Reporting and Analysis .................................................................................................................................2-16
Interface Data Transformer (IDT) .................................................................................................................2-17
IDT Responsibility and Data Menus .............................................................................................................2-19
IDT Transformation Rule Sets.......................................................................................................................2-20
Open Integration with External Processing ...................................................................................................2-21
Open Integration with External Processing: GL Business Events.................................................................2-22
Open Integration with External Processing Benefits ....................................................................................2-24
Advanced Global Intercompany System (AGIS) ..........................................................................................2-25
AGIS Features ...............................................................................................................................................2-26
AGIS Journals Balancing Process .................................................................................................................2-27
AGIS Implementation Considerations...........................................................................................................2-29
Agenda...........................................................................................................................................................2-30
Elements ........................................................................................................................................................2-31
Chart of Accounts Structure ..........................................................................................................................2-33
Chart of Accounts..........................................................................................................................................2-34
Business Requirements..................................................................................................................................2-35
Creating Vertical Structures ..........................................................................................................................2-36
Defining Hierarchies......................................................................................................................................2-37
Account Hierarchies ......................................................................................................................................2-38
Building the Chart of Accounts Structure......................................................................................................2-39
Creating Accounting Flexfields.....................................................................................................................2-40
Defining and Assigning Value Sets...............................................................................................................2-41
Defining the Accounting Flexfield Structure.................................................................................................2-42
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Copyright Oracle, 2010. All rights reserved.
R12.x Oracle Financial Applications Overview Table of Contents
ii
Management Reporting and Security ............................................................................................................2-46
Management Reporting and Security Example .............................................................................................2-47
Defining Segment Values..............................................................................................................................2-49
Secondary Tracking Segment ........................................................................................................................2-50
Secondary Tracking Segment Benefits..........................................................................................................2-51
Selecting Account Combinations ..................................................................................................................2-52
Using Dynamic Insertion...............................................................................................................................2-53
Defining Cross-Validation Rules...................................................................................................................2-54
Defining Flexfield Security Rules .................................................................................................................2-57
Accounting Calendar .....................................................................................................................................2-58
Defining Period Types...................................................................................................................................2-59
Accounting Period Statuses ...........................................................................................................................2-60
Unlimited Currencies.....................................................................................................................................2-61
Selecting Currencies ......................................................................................................................................2-62
Creating a Ledger ..........................................................................................................................................2-63
Accounting Setup Manager ...........................................................................................................................2-65
Ledger Options ..............................................................................................................................................2-67
Linking a Ledger to a Responsibility.............................................................................................................2-70
Sharing a Ledger Across Oracle Applications...............................................................................................2-71
Account Hierarchy Manager..........................................................................................................................2-72
Security Definitions.......................................................................................................................................2-74
Replacement for Disabled Accounts..............................................................................................................2-76
Control Accounts...........................................................................................................................................2-77
Account Analysis & Drilldown .....................................................................................................................2-78
Accounting and Reporting Sequencing .........................................................................................................2-79
Accounting and Reporting Sequencing Benefits ..........................................................................................2-80
Agenda...........................................................................................................................................................2-81
Subledger Accounting (SLA) Overview........................................................................................................2-82
Subledger Accounting ...................................................................................................................................2-83
Subledger Accounting Definition..................................................................................................................2-84
Subledger Accounting Engine .......................................................................................................................2-86
Agenda...........................................................................................................................................................2-87
Simultaneous Opening and Closing of Periods .............................................................................................2-88
Simultaneous Year-End Closing Journals .....................................................................................................2-89
Simultaneous Currency Translation...............................................................................................................2-90
Financial Reporting Across Ledgers..............................................................................................................2-91
Agenda...........................................................................................................................................................2-92
Performing Journal Entry Functions..............................................................................................................2-93
Types of Journal Entries ................................................................................................................................2-94
Journal Creation Methods..............................................................................................................................2-95
Automatic Journal Copy................................................................................................................................2-96
Integrated Web-based Spreadsheet Interface.................................................................................................2-97
Integrated Web-based Spreadsheet Interface Benefits...................................................................................2-98
Journal Components ......................................................................................................................................2-99
Grouping Journals into Batches.....................................................................................................................2-101
Manual Journal Entries..................................................................................................................................2-102
Performing Additional Journal Actions.........................................................................................................2-104
Posting Journals.............................................................................................................................................2-105
Posting to a Prior Period................................................................................................................................2-107
Automatic Posting .........................................................................................................................................2-108
Performing Online Inquiries for Accounts and Journal Entries.....................................................................2-109
Reversing Journal Entries..............................................................................................................................2-110
Creating Reversing Journals..........................................................................................................................2-111
Reversing Journals Automatically.................................................................................................................2-112
Journal Reversal Criteria ...............................................................................................................................2-113
Journal Reversal Benefits ..............................................................................................................................2-116
Recurring Journals.........................................................................................................................................2-117
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Copyright Oracle, 2010. All rights reserved.
R12.x Oracle Financial Applications Overview Table of Contents
iii
Recurring Journal Types................................................................................................................................2-118
Formula Recurring Journals ..........................................................................................................................2-120
MassAllocations ............................................................................................................................................2-121
MassAllocations versus Recurring Journals ..................................................................................................2-122
Journal Line Reconciliation...........................................................................................................................2-123
Agenda...........................................................................................................................................................2-124
Budgeting ......................................................................................................................................................2-125
Budgets..........................................................................................................................................................2-126
Anatomy of a Budget.....................................................................................................................................2-127
Available Methods.........................................................................................................................................2-128
Multiple Versions ..........................................................................................................................................2-129
Define Budget Organizations ........................................................................................................................2-130
Entry Methods ...............................................................................................................................................2-131
Creating Journals ...........................................................................................................................................2-132
Loading with Web ADI .................................................................................................................................2-133
Budget Wizard: Overview.............................................................................................................................2-134
Agenda...........................................................................................................................................................2-135
Foreign Currency Concepts ...........................................................................................................................2-136
Conversion.....................................................................................................................................................2-137
Conversion Example......................................................................................................................................2-138
Revaluation....................................................................................................................................................2-139
Revaluation Example.....................................................................................................................................2-140
Translation.....................................................................................................................................................2-141
Translation Rates ...........................................................................................................................................2-142
Currency Rates Manager Description............................................................................................................2-143
Currency Rates Manager Features.................................................................................................................2-144
Currency Rates Manager Benefits .................................................................................................................2-145
Cross-Ledger and Foreign Currency Allocations .........................................................................................2-146
Cross-Ledger and Foreign Currency Allocations Benefits ...........................................................................2-147
Entered Currency Reporting and Analysis ....................................................................................................2-148
Entered Currency Reporting and Analysis Benefits .....................................................................................2-150
Agenda...........................................................................................................................................................2-151
Consolidations ...............................................................................................................................................2-152
Consolidating Data in Multiple Instances......................................................................................................2-153
Consolidation Workbench .............................................................................................................................2-154
Consolidation Mapping .................................................................................................................................2-156
Streamlined Consolidation Mappings............................................................................................................2-159
Consolidation Mappings................................................................................................................................2-160
Consolidation Mappings Benefits..................................................................................................................2-162
Mapping Rules...............................................................................................................................................2-163
Using Account Mapping Rules......................................................................................................................2-164
Using Segment Mapping Rules .....................................................................................................................2-165
Using Segment Rollup Rules.........................................................................................................................2-166
Hierarchy Viewer ..........................................................................................................................................2-168
Preparing Subsidiary Data.............................................................................................................................2-169
Posting Consolidation Journal Entries...........................................................................................................2-170
Creating Eliminating Entries .........................................................................................................................2-171
Agenda...........................................................................................................................................................2-173
Reporting Options .........................................................................................................................................2-174
Financial Statement Generator ......................................................................................................................2-175
Defining Row Sets.........................................................................................................................................2-176
Defining Column Sets ...................................................................................................................................2-177
Defining Ad Hoc Reports ..............................................................................................................................2-178
E-Business Intelligence .................................................................................................................................2-179
Oracle Business Intelligence..........................................................................................................................2-180
XBRL Financial Reporting Features .............................................................................................................2-181
XBRL Financial Reporting Benefits..............................................................................................................2-183
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Copyright Oracle, 2010. All rights reserved.
R12.x Oracle Financial Applications Overview Table of Contents
iv
GL Standard Reports Integration With BI Publisher .....................................................................................2-184
Simultaneous Accounting for Multiple Reporting Requirements..................................................................2-185
Quiz ...............................................................................................................................................................2-186
Summary........................................................................................................................................................2-195
Procure to Pay Flow Overview.......................................................................................................................3-1
Procure to Pay Flow Overview......................................................................................................................3-2
Objectives......................................................................................................................................................3-3
Agenda...........................................................................................................................................................3-4
Procure to Pay Flow ......................................................................................................................................3-5
Purchasing Integration...................................................................................................................................3-7
Procure to Pay Lifecycle................................................................................................................................3-11
Oracle Procure to Pay Process.......................................................................................................................3-13
Introduction to Legal Entities ........................................................................................................................3-14
RFQs and Quotations.....................................................................................................................................3-15
Requisitions ...................................................................................................................................................3-17
Suppliers........................................................................................................................................................3-20
Purchase Orders.............................................................................................................................................3-21
Receiving.......................................................................................................................................................3-23
Invoicing........................................................................................................................................................3-25
Payment .........................................................................................................................................................3-27
Quiz ...............................................................................................................................................................3-28
Summary........................................................................................................................................................3-31
Suppliers Overview..........................................................................................................................................4-1
Suppliers Overview .......................................................................................................................................4-2
Objectives......................................................................................................................................................4-3
Agenda...........................................................................................................................................................4-4
Overview.......................................................................................................................................................4-6
How Oracle Products Use Supplier Information ...........................................................................................4-7
Flow of Default Values..................................................................................................................................4-9
Agenda...........................................................................................................................................................4-10
Suppliers in the Trading Community Architecture (TCA) ...........................................................................4-11
TCA Security by Functional Areas................................................................................................................4-12
Agenda...........................................................................................................................................................4-13
Suppliers Page ...............................................................................................................................................4-14
Supplier Record Structure..............................................................................................................................4-15
Enter/Update Suppliers..................................................................................................................................4-17
Supplier Level Versus Site Level Entry ........................................................................................................4-19
Supplier Site Settings.....................................................................................................................................4-20
Avoiding Duplicate Suppliers........................................................................................................................4-21
Agenda...........................................................................................................................................................4-23
Key Reports...................................................................................................................................................4-24
Agenda...........................................................................................................................................................4-26
Merge Suppliers.............................................................................................................................................4-27
Data Example - Supplier Merge ....................................................................................................................4-29
Agenda...........................................................................................................................................................4-30
Responsibility for Supplier Entry/Maintenance.............................................................................................4-31
Supplier Naming Conventions.......................................................................................................................4-32
Supplier Naming Convention Examples........................................................................................................4-34
Supplier Conversion Methodology................................................................................................................4-36
Fax or E-Mail Setup ......................................................................................................................................4-37
Agenda...........................................................................................................................................................4-39
Oracle Purchasing and the Enterprise Structure ...........................................................................................4-40
Oracle Inventory Organizations.....................................................................................................................4-41
What is an Item?............................................................................................................................................4-43
Oracle Applications That Use Items..............................................................................................................4-44
Quiz ...............................................................................................................................................................4-46
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Copyright Oracle, 2010. All rights reserved.
R12.x Oracle Financial Applications Overview Table of Contents
v
Summary........................................................................................................................................................4-51
Purchasing Overview ......................................................................................................................................5-1
Purchasing Overview.....................................................................................................................................5-2
Objectives......................................................................................................................................................5-3
Agenda...........................................................................................................................................................5-4
Item Attributes...............................................................................................................................................5-6
Item Master Organization and Child Organizations ......................................................................................5-8
Overview of Creating an Item .......................................................................................................................5-10
Describing Item Attributes - Purchasing .......................................................................................................5-11
Defining Item Relationships - Purchasing.....................................................................................................5-15
Agenda...........................................................................................................................................................5-16
Central Procurement ......................................................................................................................................5-17
Document Access Levels...............................................................................................................................5-19
Security, Approval Limits, and Approval Routing Options ..........................................................................5-20
Agenda...........................................................................................................................................................5-22
Purchase Requisitions....................................................................................................................................5-23
Information Flow...........................................................................................................................................5-27
Agenda...........................................................................................................................................................5-28
Professional Buyer's Work Center.................................................................................................................5-29
Benefits..........................................................................................................................................................5-30
User Interface ................................................................................................................................................5-31
Agenda...........................................................................................................................................................5-32
Request for Quotation....................................................................................................................................5-33
Agenda...........................................................................................................................................................5-34
Sourcing Rules...............................................................................................................................................5-35
Create a Sourcing Rule..................................................................................................................................5-36
Create a Sourcing Rule Assignment ..............................................................................................................5-37
Levels of Sourcing Rule Assignments...........................................................................................................5-39
Sourcing Rules with an ASL Source Document............................................................................................5-40
Agenda...........................................................................................................................................................5-41
Purchase Orders Process................................................................................................................................5-42
Origin.............................................................................................................................................................5-44
Information Flow...........................................................................................................................................5-45
Management Interfaces..................................................................................................................................5-46
Purchasing e-Commerce Capabilities............................................................................................................5-48
Purchasing XML Capabilities........................................................................................................................5-49
Creating Purchase Orders ..............................................................................................................................5-50
Maintaining Purchase Orders ........................................................................................................................5-51
Agenda...........................................................................................................................................................5-52
Printing and Communication.........................................................................................................................5-53
Document Attachments .................................................................................................................................5-54
Document Attachment Types ........................................................................................................................5-55
Setup Define Purchasing Options...............................................................................................................5-56
Agenda...........................................................................................................................................................5-57
Receiving Process..........................................................................................................................................5-58
Receiving in Oracle Purchasing.....................................................................................................................5-61
Open Interface ...............................................................................................................................................5-62
Agenda...........................................................................................................................................................5-64
Purchasing Accounting Considerations.........................................................................................................5-65
Purchasing Period-End Accrual Cycle ..........................................................................................................5-66
Accounting Implementation Considerations..................................................................................................5-67
Quiz ...............................................................................................................................................................5-68
Summary........................................................................................................................................................5-72
Payables Overview...........................................................................................................................................6-1
Payables Overview........................................................................................................................................6-2
Objectives......................................................................................................................................................6-3
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Copyright Oracle, 2010. All rights reserved.
R12.x Oracle Financial Applications Overview Table of Contents
vi
Agenda...........................................................................................................................................................6-4
Payables Process............................................................................................................................................6-6
Invoice Structure............................................................................................................................................6-7
Types of Invoices..........................................................................................................................................6-9
Invoice Lines .................................................................................................................................................6-11
Line Types.....................................................................................................................................................6-12
Distribution Types .........................................................................................................................................6-13
Matching to a Purchase Order .......................................................................................................................6-14
Match Approval Level Options .....................................................................................................................6-15
Purchase Order Shipment Match...................................................................................................................6-17
Receipt Match................................................................................................................................................6-18
Matching to Distributions for Assets.............................................................................................................6-19
Invoices: Matching to Distributions for Expenses.........................................................................................6-20
Invoices: Matching to Distributions for Inventory ........................................................................................6-21
Invoice Approval Workflow Resubmission...................................................................................................6-23
Gapless Invoice Numbering for Self-Billing Invoices...................................................................................6-24
Holds and Releases........................................................................................................................................6-25
Invoice Validation .........................................................................................................................................6-28
Levels of Invoice Validation .........................................................................................................................6-30
Invoice Validation Concurrent Processing ....................................................................................................6-32
Invoice Processing for Contract Financing, Retainage, and Progress Terms ................................................6-33
Agenda...........................................................................................................................................................6-35
Setting Up Payables for Expense Reports .....................................................................................................6-36
Expense Reporting Process............................................................................................................................6-37
Expense Report Import Program...................................................................................................................6-38
Processing and iExpenses..............................................................................................................................6-39
Agenda...........................................................................................................................................................6-40
Invoice Payments...........................................................................................................................................6-41
Payment Manager Terminology ....................................................................................................................6-42
Using the Invoice Workbench .......................................................................................................................6-44
Time Zone Support ........................................................................................................................................6-45
Invoice Payment Methods .............................................................................................................................6-46
Manual Payment ............................................................................................................................................6-48
Creating Quick Payments ..............................................................................................................................6-49
Invoice Payments: Formatting Payments ......................................................................................................6-54
Agenda...........................................................................................................................................................6-55
Key Processes................................................................................................................................................6-56
Period Close...................................................................................................................................................6-58
Mass Additions Accounting - Periodic Accrual [Period End] .......................................................................6-59
Subledger Accounting and General Ledger...................................................................................................6-61
Accounting Process Error Validation and Reporting.....................................................................................6-62
Agenda...........................................................................................................................................................6-63
Daily Business Intelligence ...........................................................................................................................6-64
Agenda...........................................................................................................................................................6-66
Oracle iSupplier Portal Invoice Matching Controls.......................................................................................6-67
Attachments...................................................................................................................................................6-68
PO Number Display.......................................................................................................................................6-69
Retroactive Pricing of Purchase Orders Support ...........................................................................................6-70
Attachments...................................................................................................................................................6-71
Agenda...........................................................................................................................................................6-72
Payables Integration with E-Business Tax ....................................................................................................6-73
Multiple Organization Access Control ..........................................................................................................6-75
Quiz ...............................................................................................................................................................6-77
Summary........................................................................................................................................................6-81
Assets Overview...............................................................................................................................................7-1
Assets Overview............................................................................................................................................7-2
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Objectives......................................................................................................................................................7-3
Agenda...........................................................................................................................................................7-4
Overview.......................................................................................................................................................7-6
Assets Integration ..........................................................................................................................................7-7
Asset Life Cycle ............................................................................................................................................7-8
Agenda...........................................................................................................................................................7-9
Positioning.....................................................................................................................................................7-10
Regions..........................................................................................................................................................7-11
Calendar Region ............................................................................................................................................7-13
Accounting Rules Region..............................................................................................................................7-15
Natural Accounts Region...............................................................................................................................7-17
Subledger Accounting Architecture...............................................................................................................7-19
Asset Categories Positioning.........................................................................................................................7-20
Asset Categories Regions ..............................................................................................................................7-21
Agenda...........................................................................................................................................................7-22
Adding Assets Manually ...............................................................................................................................7-23
Asset Additions Required Data .....................................................................................................................7-25
QuickAdditions..............................................................................................................................................7-26
Detail Asset Additions...................................................................................................................................7-29
Agenda...........................................................................................................................................................7-30
Additions Integrator.......................................................................................................................................7-31
Mass Asset Additions Process.......................................................................................................................7-32
Mass Additions Process.................................................................................................................................7-34
Using the Mass Additions Interface Table ....................................................................................................7-35
Step 1 - Mass Additions Create .....................................................................................................................7-36
Step 2 - Prepare Mass Additions ...................................................................................................................7-38
Step 3 - Post Mass Additions.........................................................................................................................7-39
Step 4 - Delete Mass Additions .....................................................................................................................7-40
Accounting for Mass Additions Periodic Accrual [Period End]....................................................................7-41
Agenda...........................................................................................................................................................7-43
Asset Adjustments .........................................................................................................................................7-44
Single Asset Reclassification.........................................................................................................................7-46
Adjusting Units..............................................................................................................................................7-47
Adjusting Financial Information....................................................................................................................7-48
Single Asset Transfers ...................................................................................................................................7-49
Mass Transactions .........................................................................................................................................7-51
Mass Reclassification ....................................................................................................................................7-52
Using Mass Changes .....................................................................................................................................7-53
Mass Asset Transfers.....................................................................................................................................7-54
Performing Physical Inventory......................................................................................................................7-55
Entering Physical Inventory ..........................................................................................................................7-57
Physical Inventory Comparison.....................................................................................................................7-58
Physical Inventory Reconciliation.................................................................................................................7-60
Integrating Web ADI with Physical Inventory..............................................................................................7-61
Agenda...........................................................................................................................................................7-63
Enable/Disable Group Assets ........................................................................................................................7-64
Allow CIP Member Assets in Group Assets..................................................................................................7-65
Agenda...........................................................................................................................................................7-66
Depreciation Elements...................................................................................................................................7-67
Basic Depreciation Calculation .....................................................................................................................7-69
Depreciation Methods....................................................................................................................................7-71
Run Depreciation Process..............................................................................................................................7-72
Depreciation Program Processes ...................................................................................................................7-73
Automatic Rollback of Depreciation.............................................................................................................7-74
Agenda...........................................................................................................................................................7-76
Tracking Asset Retirements...........................................................................................................................7-77
Retiring an Asset ...........................................................................................................................................7-78
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R12.x Oracle Financial Applications Overview Table of Contents
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Fully Retiring Assets .....................................................................................................................................7-79
Partially Retiring Assets ................................................................................................................................7-80
Mass Asset Retirements.................................................................................................................................7-81
External Retirements .....................................................................................................................................7-84
Retirements: Reinstating Retired Assets........................................................................................................7-86
Agenda...........................................................................................................................................................7-87
Assets Journal Entries Flow...........................................................................................................................7-88
Oracle Subledger Accounting........................................................................................................................7-90
Journal Entries Created..................................................................................................................................7-91
Quiz ...............................................................................................................................................................7-93
Summary........................................................................................................................................................7-97
Order to Cash Flow Overview........................................................................................................................8-1
Order to Cash Flow Overview.......................................................................................................................8-2
Objectives......................................................................................................................................................8-3
Agenda...........................................................................................................................................................8-4
Overview: Order to Cash...............................................................................................................................8-5
Overview: Click to Order ..............................................................................................................................8-6
Overview: Order to Cash Lifecycle...............................................................................................................8-8
Overview: Order Lifecycle............................................................................................................................8-9
Order Processing: Order Entry Methods .......................................................................................................8-10
Order Processing: Pricing Process.................................................................................................................8-11
Order Processing: Viewing and Managing Orders ........................................................................................8-12
Shipping Execution: Shipping Process..........................................................................................................8-13
Shipping Execution: Scheduling....................................................................................................................8-14
Collection: AutoInvoice Process ...................................................................................................................8-15
Collection: Receivables Process ....................................................................................................................8-16
Summary........................................................................................................................................................8-17
Customers Overview .......................................................................................................................................9-1
Customers Overview .....................................................................................................................................9-2
Objectives......................................................................................................................................................9-3
Agenda...........................................................................................................................................................9-4
Party Model ...................................................................................................................................................9-6
Integrating Party Information ........................................................................................................................9-8
Party Model Definitions ................................................................................................................................9-9
Relationships .................................................................................................................................................9-10
Managing Parties ...........................................................................................................................................9-11
Customer Accounts........................................................................................................................................9-12
Multi-Org Access Control (MOAC)..............................................................................................................9-13
Agenda...........................................................................................................................................................9-14
Profile Classes ...............................................................................................................................................9-15
Profile Class Characteristics..........................................................................................................................9-16
Managing Customer Account Profiles...........................................................................................................9-17
Agenda...........................................................................................................................................................9-18
Entry Methods ...............................................................................................................................................9-19
Business Issues ..............................................................................................................................................9-20
Business Purposes..........................................................................................................................................9-21
Multiple Sites and Business Purposes Centralized Example ........................................................................9-22
Multiple Sites and Business Purposes Decentralized Example .....................................................................9-23
Creating Customers .......................................................................................................................................9-24
Review Information.......................................................................................................................................9-26
Agenda...........................................................................................................................................................9-27
Customer Account Relationships ..................................................................................................................9-28
Merge Parties or Customer Accounts ............................................................................................................9-29
Customers Online Integration........................................................................................................................9-31
Agenda...........................................................................................................................................................9-32
Required Setup Steps for Customers .............................................................................................................9-33
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R12.x Oracle Financial Applications Overview Table of Contents
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Profile Options...............................................................................................................................................9-34
Optional Setup Steps for Customers..............................................................................................................9-35
Quiz ...............................................................................................................................................................9-37
Summary........................................................................................................................................................9-40
Order Management Overview........................................................................................................................10-1
Order Management Overview .......................................................................................................................10-2
Objectives......................................................................................................................................................10-3
Agenda...........................................................................................................................................................10-4
Items ..............................................................................................................................................................10-5
Items: Master Organization and Child Organizations ...................................................................................10-6
Items: Creation ..............................................................................................................................................10-7
Items: Describing Item Attributes Order Management...............................................................................10-8
Items: Describing Item Attributes Order Management (continued) ...........................................................10-9
Items: Describing Item Attributes - Invoicing...............................................................................................10-16
Items: Describing Attributes Controls at Master Level .................................................................................10-18
Items: Describing Attributes Controls at Child Level ...................................................................................10-19
Order Entry: Order Creation Methods...........................................................................................................10-20
Order Entry: Order Management Workflows................................................................................................10-21
Order Entry: Processing Constraints..............................................................................................................10-22
Order Entry: Defaulting Rules.......................................................................................................................10-23
Order Entry: Credit Checking........................................................................................................................10-25
Order Entry: Order Header ............................................................................................................................10-27
Order Entry: Order Transaction Type............................................................................................................10-28
Order Entry: Entering Header Customer Information ...................................................................................10-30
Order Entry: Entering Header Pricing Information .......................................................................................10-31
Order Entry: Entering Additional Header Information..................................................................................10-33
Order Entry: Applying Sales Credits.............................................................................................................10-34
Order Entry: Line Statuses.............................................................................................................................10-35
Order Entry: Entering Line Information........................................................................................................10-36
Order Entry: Entering Line Information (continued).....................................................................................10-37
Entering Line Pricing Information.................................................................................................................10-38
Order Entry: Line Pricing Fields ...................................................................................................................10-40
Order Entry: Line Date Fields .......................................................................................................................10-41
Order Entry: Entering Line Shipping Information........................................................................................10-42
Order Entry: Entering Return Information ....................................................................................................10-43
Order Entry: Ordering Service Programs ......................................................................................................10-45
Order Entry: Splitting Order Lines ................................................................................................................10-46
Order Scheduling and Booking: Available to Promise..................................................................................10-47
Order Scheduling and Booking: Schedule.....................................................................................................10-48
Order Scheduling and Booking: Reserve.......................................................................................................10-49
Order Scheduling and Booking: Scheduling Options....................................................................................10-50
Order Scheduling and Booking: Booking Orders..........................................................................................10-51
Drop Shipment...............................................................................................................................................10-52
Internal Requisition .......................................................................................................................................10-53
Order Import ..................................................................................................................................................10-55
Configurator ..................................................................................................................................................10-56
Order Management: Mass Updates................................................................................................................10-57
Order Management: Automatic System Holds - Credit Check Hold.............................................................10-58
Order Management: Creating and Applying Holds .......................................................................................10-60
Order Management: Apply Holds .................................................................................................................10-61
Order Management: Apply Holds (continued) ..............................................................................................10-62
Order Management: Release Holds ...............................................................................................................10-63
Pricing: Pricing Engine..................................................................................................................................10-64
Pricing: Pricing Engine (continued) ..............................................................................................................10-66
Pricing: Pricing Engine Pyramid ...................................................................................................................10-67
Pricing: Process .............................................................................................................................................10-68
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R12.x Oracle Financial Applications Overview Table of Contents
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Pricing: Single Versus Multiple Currency Price Lists...................................................................................10-69
Pricing: Price List Creation ...........................................................................................................................10-70
Pricing: Price List Header..............................................................................................................................10-71
Pricing: Price List Header (continued) ..........................................................................................................10-72
Pricing: Price List Line..................................................................................................................................10-73
Pricing: Price List Line (continued)...............................................................................................................10-74
Pricing: Price List Line Values......................................................................................................................10-75
Pricing: Price List Line Values (continued)...................................................................................................10-77
Pricing: Price List Maintenance.....................................................................................................................10-78
Pricing: Formulas ..........................................................................................................................................10-79
Pricing: Formulas (continued) .......................................................................................................................10-80
Pricing: Types of Formulas ...........................................................................................................................10-81
Pricing: Dynamic Calculation........................................................................................................................10-82
Pricing: Static Calculation.............................................................................................................................10-83
Shipping: Ship Order .....................................................................................................................................10-84
Shipping: Concepts........................................................................................................................................10-86
Shipping: Concepts (continued) ....................................................................................................................10-87
Shipping: Pick Release Concepts ..................................................................................................................10-92
Shipping: Pick Release Concepts (continued) ...............................................................................................10-93
Shipping: Pick Release Process .....................................................................................................................10-94
Shipping: Pick Release Process (continued)..................................................................................................10-96
Shipping: Ship Confirm Process....................................................................................................................10-101
Shipping: Ship Confirm Process (continued) ................................................................................................10-103
Shipping: Delivery Line Processing Statuses (continued).............................................................................10-109
Shipping: Delivery Line Processing Statuses ................................................................................................10-110
Returns: Standard Return...............................................................................................................................10-111
Returns: Returns in iSupport .........................................................................................................................10-112
Daily Business Intelligence ...........................................................................................................................10-113
Quiz ...............................................................................................................................................................10-115
Summary........................................................................................................................................................10-120
Receivables Overview......................................................................................................................................11-1
Receivables Overview...................................................................................................................................11-2
Objectives......................................................................................................................................................11-3
Agenda...........................................................................................................................................................11-4
Overview.......................................................................................................................................................11-6
Transactions Overview..................................................................................................................................11-8
Invoice Entry Methods Overview..................................................................................................................11-9
Agenda...........................................................................................................................................................11-10
AutoInvoice Process......................................................................................................................................11-11
AutoInvoicing................................................................................................................................................11-13
Integration......................................................................................................................................................11-14
Interface Tables .............................................................................................................................................11-15
Transaction Batch Sources ............................................................................................................................11-17
Grouping Rules..............................................................................................................................................11-18
Line Ordering Rules ......................................................................................................................................11-19
Transaction Flexfields ...................................................................................................................................11-20
Correcting Errors ...........................................................................................................................................11-21
Exception Handling Windows.......................................................................................................................11-22
Agenda...........................................................................................................................................................11-24
Creating a Standard Invoice Manually ..........................................................................................................11-25
Invoice Components......................................................................................................................................11-26
Entering Invoice Dates ..................................................................................................................................11-28
Standard Invoice Line Types.........................................................................................................................11-29
Completing Transactions...............................................................................................................................11-30
Invoice Transaction Flow..............................................................................................................................11-31
Invoice Correction Methods ..........................................................................................................................11-32
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R12.x Oracle Financial Applications Overview Table of Contents
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Overview of Corrections................................................................................................................................11-33
Updating Invoices..........................................................................................................................................11-35
Creating Debit Memos...................................................................................................................................11-36
Creating Adjustments ....................................................................................................................................11-37
Applying Different Types of Credits.............................................................................................................11-38
Credit Memo Options ....................................................................................................................................11-39
On-Account Credit Options...........................................................................................................................11-41
Voiding Transactions.....................................................................................................................................11-42
Agenda...........................................................................................................................................................11-44
Oracle Receivables Overview........................................................................................................................11-45
Receipts .........................................................................................................................................................11-46
Receipt Creation ............................................................................................................................................11-47
Manual Receipt Entry Process.......................................................................................................................11-48
Receipt Types ................................................................................................................................................11-49
Manual Receipts versus QuickCash Receipts................................................................................................11-51
Applying Batch Receipts ...............................................................................................................................11-52
Applying Receipts to an Invoice....................................................................................................................11-53
Applying Receipts at Line Level ...................................................................................................................11-54
AP/AR Netting ..............................................................................................................................................11-56
Applications Window....................................................................................................................................11-57
Deposit Applications .....................................................................................................................................11-59
Credit Cards...................................................................................................................................................11-60
Processing Credit Card Refunds....................................................................................................................11-62
Processing Credit Card Transactions.............................................................................................................11-64
Creating Credit Card Transactions ................................................................................................................11-65
Agenda...........................................................................................................................................................11-66
Overview of Advanced Collections...............................................................................................................11-67
Advanced Collection Methods ......................................................................................................................11-69
Identifying Customers With Overdue Accounts............................................................................................11-70
Agenda...........................................................................................................................................................11-71
iReceivables...................................................................................................................................................11-72
Features .........................................................................................................................................................11-73
Credit Memo Workflow ................................................................................................................................11-74
Agenda...........................................................................................................................................................11-76
Calculating Tax on Transactions ...................................................................................................................11-77
Calculating Tax Using the Tax Classification Code......................................................................................11-78
Tax Partner Process Overview.......................................................................................................................11-79
Agenda...........................................................................................................................................................11-80
Period Closing Process ..................................................................................................................................11-81
Agenda...........................................................................................................................................................11-82
Daily Business Intelligence ...........................................................................................................................11-83
Summary........................................................................................................................................................11-85
Cash Management Overview..........................................................................................................................12-1
Cash Management Overview.........................................................................................................................12-2
Course Objectives..........................................................................................................................................12-3
Agenda...........................................................................................................................................................12-4
Overview.......................................................................................................................................................12-6
Overview of Bank Account Model................................................................................................................12-7
Agenda...........................................................................................................................................................12-9
Defining Banks..............................................................................................................................................12-10
Defining Bank Branches................................................................................................................................12-12
Linking Bank and Branches in Oracle Treasury............................................................................................12-14
Creating Bank Accounts: Selecting Branch, Legal Entities, and Functions ..................................................12-15
Bank Balance Types ......................................................................................................................................12-17
Entering Account Balances Manually or Uploading Automatically..............................................................12-18
Creating Reports for Account Balances and Interest Calculations ................................................................12-19
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R12.x Oracle Financial Applications Overview Table of Contents
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Creating a Bank Transfer...............................................................................................................................12-22
Authorizing a Bank Transfer .........................................................................................................................12-23
Calculating Interest on Bank Accounts .........................................................................................................12-24
Creating Journal Entry Rules.........................................................................................................................12-25
Setting Up Transaction Subtypes...................................................................................................................12-26
Setting Up Payment Templates .....................................................................................................................12-27
Cashflows ......................................................................................................................................................12-28
Creating Bank Statement Cashflows from Bank File ....................................................................................12-29
Creating Bank Statement Cashflows from Bank File (continued).................................................................12-31
Agenda...........................................................................................................................................................12-34
Reconciliation................................................................................................................................................12-35
Integration......................................................................................................................................................12-36
Oracle Receivables and Payables ..................................................................................................................12-37
Oracle Payroll, Treasury, and General Ledger ..............................................................................................12-38
Oracle Payments............................................................................................................................................12-40
Single European Payments Area (SEPA) Credit Transfer.............................................................................12-41
SEPA Credit Transfer: Bank Identifier Code (BIC) Validation ....................................................................12-42
SEPA Credit Transfer: International Bank Account Number (IBAN) Validation.........................................12-44
SEPA Credit Transfer: Enable Reconciliation at Payment Group Level.......................................................12-45
SEPA Credit Transfer: Reconciliation logic for Manual Reconciliation.......................................................12-46
SEPA Credit Transfer: Reconciliation logic for Automatic Reconciliation ..................................................12-47
AutoReconciliation........................................................................................................................................12-49
Setting Up Bank Transaction Codes..............................................................................................................12-50
Bank Statement Open Interface.....................................................................................................................12-51
Importing Bank Statements ...........................................................................................................................12-53
Bank Statement Validation............................................................................................................................12-54
Bank Statement Interface Errors....................................................................................................................12-55
Entering Bank Statements Manually .............................................................................................................12-56
Reconciling Bank Statements Automatically ................................................................................................12-57
Reconciling Bank Statements Manually........................................................................................................12-58
Creating Miscellaneous Transactions ............................................................................................................12-59
Recording a Bank Transmission Error...........................................................................................................12-60
Recording Transactions from External Systems............................................................................................12-61
Open Interface ...............................................................................................................................................12-62
Manually Clearing and Unclearing................................................................................................................12-63
Clearing and Reconciling Transactions in Oracle Payables ..........................................................................12-64
Clearing and Reconciling Transactions in Oracle Receivables .....................................................................12-65
Transferring Entries to Your General Ledger................................................................................................12-66
AutoReconciliation Matching........................................................................................................................12-67
Adjustment Method.......................................................................................................................................12-68
Manual Reconciliation Matching ..................................................................................................................12-69
Agenda...........................................................................................................................................................12-70
Cash Forecasting ...........................................................................................................................................12-71
Cash Forecasting Advantages........................................................................................................................12-73
Cash Forecast Template.................................................................................................................................12-74
Generating a Cash Forecast ...........................................................................................................................12-75
Cash Forecasting by Transaction Currency...................................................................................................12-76
Cash Forecasting by Temporary Labor and Fixed Price Services .................................................................12-77
Agenda...........................................................................................................................................................12-78
Cash Positioning............................................................................................................................................12-79
Agenda...........................................................................................................................................................12-81
Cash Management Reports............................................................................................................................12-82
Batches Available for Reconciliation Report ................................................................................................12-86
Quiz ...............................................................................................................................................................12-87
Summary........................................................................................................................................................12-90
Oracle Governance, Risk and Compliance Suite Overview.........................................................................13-1
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Oracle Governance, Risk and Compliance Suite Overview..........................................................................13-2
Agenda...........................................................................................................................................................13-3
Objectives......................................................................................................................................................13-4
Oracle's GRC Solution...................................................................................................................................13-5
Oracle GRC Intelligence (GRCI) ..................................................................................................................13-7
Oracle GRC Manager (GRCM).....................................................................................................................13-8
Oracle GRC Controls (GRCC) ......................................................................................................................13-9
Oracle Fusion Middleware for GRC..............................................................................................................13-10
Oracle GRC Intelligence (GRCI) Features....................................................................................................13-11
Oracle GRC Manager (GRCM) Features ......................................................................................................13-12
GRC Controls Overview ...............................................................................................................................13-14
Internet Expenses Overview...........................................................................................................................14-1
Internet Expenses Overview..........................................................................................................................14-2
Objectives......................................................................................................................................................14-3
Agenda...........................................................................................................................................................14-4
Overview.......................................................................................................................................................14-6
Advantages of Using Oracle Internet Expenses.............................................................................................14-7
Agenda...........................................................................................................................................................14-8
Expense Reporting Process............................................................................................................................14-9
Expense Report Emport Program..................................................................................................................14-10
Agenda...........................................................................................................................................................14-11
Expense Management....................................................................................................................................14-12
Agenda...........................................................................................................................................................14-14
Expense Reporting Methods..........................................................................................................................14-15
Online Using Credit Card..............................................................................................................................14-16
Disconnected Expense Reporting..................................................................................................................14-18
Agenda...........................................................................................................................................................14-19
Expense Reporting Features ..........................................................................................................................14-20
Entering Foreign Currency Expenses ............................................................................................................14-21
Expense Reporting Features ..........................................................................................................................14-22
Agenda...........................................................................................................................................................14-25
Descriptive Flexfields....................................................................................................................................14-26
Product Features ............................................................................................................................................14-27
Online Policy Compliance.............................................................................................................................14-35
Per Diem and Mileage ...................................................................................................................................14-36
Location and VAT Setup...............................................................................................................................14-37
Short Paying and Adjusting Expense Reports ...............................................................................................14-38
Audit Management and Automation..............................................................................................................14-39
Product Features ............................................................................................................................................14-41
Agenda...........................................................................................................................................................14-43
Workflow Processes ......................................................................................................................................14-44
Expenses Workflow Process..........................................................................................................................14-45
Agenda...........................................................................................................................................................14-46
Oracle Projects Integration ............................................................................................................................14-47
Oracle Grants Accounting Integration...........................................................................................................14-48
Oracle Approvals Management (AME) Integration ......................................................................................14-49
Other Product Integration ..............................................................................................................................14-50
Summary........................................................................................................................................................14-51
Lease Management Overview.........................................................................................................................15-1
Lease Management Overview .......................................................................................................................15-2
Objectives......................................................................................................................................................15-3
Agenda...........................................................................................................................................................15-4
Overview.......................................................................................................................................................15-5
Lease Management in the Oracle E-Business Suite......................................................................................15-6
Lease Management CRM Applications.........................................................................................................15-7
Lease Management ERP Applications ..........................................................................................................15-8
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Optional Integration for Additional Lease Management Functionality........................................................15-9
Opportunity to Booking.................................................................................................................................15-10
Invoice to Termination ..................................................................................................................................15-21
Asset Return to Disposal ...............................................................................................................................15-30
Period Open to Period Close and Inquiry to Resolution................................................................................15-34
Summary........................................................................................................................................................15-37
Trading Community Architecture Overview................................................................................................16-1
Trading Community Architecture (TCA) Overview .....................................................................................16-2
Objectives......................................................................................................................................................16-3
Agenda...........................................................................................................................................................16-4
Overview.......................................................................................................................................................16-5
TCA Origins ..................................................................................................................................................16-6
TCA Principles ..............................................................................................................................................16-8
TCA Recognition...........................................................................................................................................16-9
TCA Evolution ..............................................................................................................................................16-10
Customer Data Management (CDM).............................................................................................................16-11
CDM Product Family ....................................................................................................................................16-12
Customer Data Hub .......................................................................................................................................16-13
Customer Data Spoke ....................................................................................................................................16-14
Customer Data Librarian ...............................................................................................................................16-15
Customers Online ..........................................................................................................................................16-16
CDM Training Overview: TCA Fundamentals Course .................................................................................16-17
CDM Training Overview: TCA Enabling Infrastructure...............................................................................16-18
CDM Training Overview: Customers Online................................................................................................16-19
CDM Training: Customer Data Librarian .....................................................................................................16-20
CDM Training: Customer Data Hub (The Solution) .....................................................................................16-21
TCA Model....................................................................................................................................................16-22
Summary........................................................................................................................................................16-23
Treasury Overview..........................................................................................................................................17-1
Treasury Overview........................................................................................................................................17-2
Objectives......................................................................................................................................................17-3
Agenda...........................................................................................................................................................17-4
Oracle Treasury: A Complete Solution .........................................................................................................17-5
Oracle Treasury: An Integrated Solution.......................................................................................................17-6
Manage Global Financial Exposure Improve Visibility & Efficiency...........................................................17-7
Treasury Overview........................................................................................................................................17-9
Integration......................................................................................................................................................17-10
Straight Through Processing Capabilities......................................................................................................17-11
Enhanced Regulatory Compliance.................................................................................................................17-12
Expanded Bond Functionality .......................................................................................................................17-13
Cash Positions and Forecasting .....................................................................................................................17-14
Automatic Bond Rate Resetting ....................................................................................................................17-15
Bank Account Update Program.....................................................................................................................17-16
Cash Pooling Across Legal Entities...............................................................................................................17-17
Summary........................................................................................................................................................17-18
Oracle Enterprise Project Management Solution Overview .......................................................................18-1
Oracle Enterprise Project Management Solution Overview..........................................................................18-2
Objectives......................................................................................................................................................18-3
Agenda...........................................................................................................................................................18-4
Oracle Enterprise Project Management Solution...........................................................................................18-5
Oracle Project Foundation.............................................................................................................................18-6
Oracle Project Costing...................................................................................................................................18-8
Oracle Project Billing ....................................................................................................................................18-10
Oracle Project Resource Management...........................................................................................................18-12
Oracle Project Management ..........................................................................................................................18-14
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Oracle Project Collaboration .........................................................................................................................18-16
Oracle Project Portfolio Analysis ..................................................................................................................18-18
Oracle Daily Business Intelligence for Projects ............................................................................................18-20
Example Projects Business Flow...................................................................................................................18-23
Agenda...........................................................................................................................................................18-25
Oracle Projects Integration with Other Oracle Applications .........................................................................18-26
Oracle Projects Integration with Other Oracle Applications (continued) ......................................................18-27
Oracle Product Lifecycle Management .........................................................................................................18-28
Oracle Assets .................................................................................................................................................18-30
Oracle Asset Tracking ...................................................................................................................................18-32
Oracle Cash Management..............................................................................................................................18-34
Oracle General Ledger...................................................................................................................................18-35
Oracle Grants Accounting .............................................................................................................................18-38
Oracle Human Resources ..............................................................................................................................18-39
Oracle Internet Expenses ...............................................................................................................................18-40
Oracle's Governance, Risk and Compliance Suite Solution ..........................................................................18-42
Oracle Inventory............................................................................................................................................18-44
Oracle Master Scheduling/MRP and Supply Chain Planning........................................................................18-45
Oracle Payables (Accrual) .............................................................................................................................18-47
Oracle Payables (Cash)..................................................................................................................................18-49
Oracle Purchasing..........................................................................................................................................18-50
Oracle Project Contracts................................................................................................................................18-52
Oracle Project Manufacturing........................................................................................................................18-54
Oracle Receivables ........................................................................................................................................18-56
Oracle Sales ...................................................................................................................................................18-58
Oracle Shipping Execution............................................................................................................................18-60
Oracle Subledger Accounting........................................................................................................................18-62
Oracle Time & Labor ....................................................................................................................................18-64
Oracle Workflow...........................................................................................................................................18-66
Summary........................................................................................................................................................18-67
Oracle Project Costing Overview...................................................................................................................19-1
Oracle Project Costing Overview..................................................................................................................19-2
Objectives......................................................................................................................................................19-3
Agenda...........................................................................................................................................................19-4
Oracle Project Costing and Integration..........................................................................................................19-5
Overview of Projects and Tasks ....................................................................................................................19-9
Project Classes and Project Types .................................................................................................................19-10
Overview of Project Templates .....................................................................................................................19-11
Organizing a Project Structure.......................................................................................................................19-12
Basic Project Information..............................................................................................................................19-13
Burden Schedules for Costing .......................................................................................................................19-15
Organization Overrides..................................................................................................................................19-16
Project Currency............................................................................................................................................19-17
Currencies and Expenditures .........................................................................................................................19-18
Costing Currency Options .............................................................................................................................19-19
Agenda...........................................................................................................................................................19-20
Controlling Expenditures Overview..............................................................................................................19-21
Project Statuses..............................................................................................................................................19-22
Task Chargeable Status .................................................................................................................................19-23
Transaction Dates ..........................................................................................................................................19-24
Transaction Controls......................................................................................................................................19-25
Exclusive and Inclusive Transaction Controls...............................................................................................19-27
Allowable Charges for Each Transaction Control .........................................................................................19-28
Determining if an Item is Chargeable............................................................................................................19-29
Agenda...........................................................................................................................................................19-30
Costing Flow: Enter Expenditures.................................................................................................................19-31
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Expenditures Overview .................................................................................................................................19-32
Pre-Approved Batch Expenditure Entry Flow Overview..............................................................................19-35
Enter Pre-Approved Batches .........................................................................................................................19-36
Upload Expenditure Batches from Microsoft Excel ......................................................................................19-38
Upload Contingent Worker Timecards..........................................................................................................19-40
Agenda...........................................................................................................................................................19-42
Costing Flow: Import Transactions ...............................................................................................................19-43
Overview of Transaction Sources..................................................................................................................19-44
Overview of Transaction Import ...................................................................................................................19-45
Costing Flow: Distribute Costs......................................................................................................................19-46
Cost Distribution Processing Flow................................................................................................................19-47
Determining Costs .........................................................................................................................................19-48
Burden Cost Calculations ..............................................................................................................................19-50
AutoAccounting: Distribution Programs .......................................................................................................19-51
Cost Distribution Concurrent Programs ........................................................................................................19-52
Agenda...........................................................................................................................................................19-54
Costing Flow: Create Accounting .................................................................................................................19-55
Integration with Oracle Subledger Accounting .............................................................................................19-56
Generating Cost Accounting Events..............................................................................................................19-57
AutoAccounting: Generate Accounting Events.............................................................................................19-58
Creating and Transferring Accounting ..........................................................................................................19-59
Oracle General Ledger Journal Import ..........................................................................................................19-60
Agenda...........................................................................................................................................................19-61
Integration with Oracle Purchasing and Oracle Payables..............................................................................19-62
Integration with Oracle Internet Expenses.....................................................................................................19-63
Integration with Oracle Time & Labor ..........................................................................................................19-64
Integration with Other Applications ..............................................................................................................19-65
Agenda...........................................................................................................................................................19-66
Allocations and AutoAllocations...................................................................................................................19-67
Asset Capitalization.......................................................................................................................................19-68
Asset Capitalization: Capitalized Interest......................................................................................................19-69
Cross Charge .................................................................................................................................................19-70
Budgetary Controls and Budget Integration ..................................................................................................19-71
Summary........................................................................................................................................................19-72
Oracle Project Billing Overview.....................................................................................................................20-1
Oracle Project Billing Overview....................................................................................................................20-2
Objectives......................................................................................................................................................20-3
Agenda...........................................................................................................................................................20-4
Oracle Project Billing ....................................................................................................................................20-5
Agenda...........................................................................................................................................................20-6
Contract Projects............................................................................................................................................20-7
Overview of Projects and Tasks ....................................................................................................................20-8
Overview of Project Templates .....................................................................................................................20-9
Project Classes and Project Templates ..........................................................................................................20-10
Defining Project Templates ...........................................................................................................................20-11
Defining Projects ...........................................................................................................................................20-12
Project Classes and Project Types .................................................................................................................20-13
Billing Information Tab.................................................................................................................................20-14
Billing Assignments Tab ...............................................................................................................................20-16
Distribution Rules Tab...................................................................................................................................20-17
Customers......................................................................................................................................................20-18
Default Top Task Customer...........................................................................................................................20-19
Project Contact Information ..........................................................................................................................20-20
Currency Options...........................................................................................................................................20-21
Revenue in Foreign Currency........................................................................................................................20-23
Bill Rates .......................................................................................................................................................20-24
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Customer Billing Retention...........................................................................................................................20-26
Defining the Retention Level and Terms.......................................................................................................20-27
Billable Status Control...................................................................................................................................20-29
Billable Transaction Control..........................................................................................................................20-30
Agenda...........................................................................................................................................................20-31
Overview of Agreements...............................................................................................................................20-32
Overview of Project Funding.........................................................................................................................20-33
Example: Agreements and Funding...............................................................................................................20-34
Agreements and Funding Process Flow.........................................................................................................20-35
Generating Invoices and Revenue Accrual....................................................................................................20-36
Agenda...........................................................................................................................................................20-38
Project Revenue Overview............................................................................................................................20-39
Methods of Revenue Accrual ........................................................................................................................20-40
Hard Limit Processing Overview ..................................................................................................................20-41
Revenue Process Flow to GL ........................................................................................................................20-43
Revenue Flow................................................................................................................................................20-44
Generate Draft Revenue ................................................................................................................................20-46
Creating Revenue Distribution Lines ............................................................................................................20-48
Generate Revenue Accounting Events ..........................................................................................................20-49
Create Accounting.........................................................................................................................................20-50
Review Project Revenue................................................................................................................................20-51
Detailed Accounting Transactions.................................................................................................................20-53
View Accounting Lines .................................................................................................................................20-55
Accrue-Through Date....................................................................................................................................20-57
Releasing Revenue ........................................................................................................................................20-58
Agenda...........................................................................................................................................................20-59
Invoice Concepts ...........................................................................................................................................20-60
Hard Limit Processing for Invoices...............................................................................................................20-61
Overview of Accounting Dates .....................................................................................................................20-62
Review of Billing Amounts...........................................................................................................................20-64
Methods of Invoicing.....................................................................................................................................20-65
Overview of Invoice Flow.............................................................................................................................20-66
Generating Invoices.......................................................................................................................................20-68
Invoice-Related Setup Steps..........................................................................................................................20-70
Defining Invoice Formats..............................................................................................................................20-71
Defining Invoice Print Method......................................................................................................................20-73
Interfacing Invoices to Oracle Receivables ...................................................................................................20-75
Invoice Flow to Oracle Receivables ..............................................................................................................20-76
Viewing Invoices in Oracle Receivables .......................................................................................................20-77
Accounting Transactions ...............................................................................................................................20-79
Agenda...........................................................................................................................................................20-81
Interproject Billing ........................................................................................................................................20-82
Agenda...........................................................................................................................................................20-83
Integration with Oracle Project Contracts .....................................................................................................20-84
Summary........................................................................................................................................................20-86
Oracle Property Manager Overview..............................................................................................................21-1
Oracle Property Manager Overview..............................................................................................................21-2
Objectives......................................................................................................................................................21-3
Agenda...........................................................................................................................................................21-4
Oracle Property Manager: An Overview.......................................................................................................21-5
Who can Use Oracle Property Manager ........................................................................................................21-6
Flow of Information in Oracle Property Manager .........................................................................................21-7
Managing Properties and Locations ..............................................................................................................21-8
Managing Space Assignments.......................................................................................................................21-10
Managing Leases ...........................................................................................................................................21-12
Managing Rent Agreements ..........................................................................................................................21-13
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Paying or Billing Rent ...................................................................................................................................21-14
Summary........................................................................................................................................................21-16
iStore Overview................................................................................................................................................22-1
iStore Overview.............................................................................................................................................22-2
Objectives......................................................................................................................................................22-3
Agenda...........................................................................................................................................................22-4
Overview.......................................................................................................................................................22-5
Integration with E-Business Suite Applications ............................................................................................22-6
Benefits of Oracle iStore ...............................................................................................................................22-8
iStore: Shopping Carts...................................................................................................................................22-10
iStore: Checkout and Ordering ......................................................................................................................22-12
iStore: Checkout and Ordering (continued)...................................................................................................22-14
iStore: Home Page.........................................................................................................................................22-15
iStore: Home Page (continued)......................................................................................................................22-16
Summary........................................................................................................................................................22-21
Oracle Payments Overview.............................................................................................................................23-1
Oracle Payments Overview...........................................................................................................................23-2
Objectives......................................................................................................................................................23-3
Agenda...........................................................................................................................................................23-4
Oracle Payments Overview...........................................................................................................................23-5
Integration with E-Business Suite Applications ............................................................................................23-7
Features of Oracle Payments .........................................................................................................................23-8
Features of Oracle Payments (Contd.)...........................................................................................................23-10
Summary........................................................................................................................................................23-15
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Preface
Profile
Before You Begin This Course
Working experience with Oracle Applications
Prerequisites
There are no prerequisites for this course.
How This Course Is Organized
This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations
and written practice sessions reinforce the concepts and skills introduced.
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R12.x Oracle Financial Applications Overview Table of Contents
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Related Publications
Oracle Publications
Title Part Number
Oracle Financials Concepts Guide E13424-02
Additional Publications
System release bulletins
Installation and users guides
Read-me files
International Oracle Users Group (IOUG) articles
Oracle Magazine

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R12.x Oracle Financial Applications Overview Table of Contents
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Typographic Conventions
Typographic Conventions in Text

Convention Element Example
Bold italic Glossary term (if
there is a glossary)
The algorithm inserts the new key.
Caps and
lowercase
Buttons,
check boxes,
triggers,
windows
Click the Executable button.
Select the Cant Delete Card check box.
Assign a When-Validate-Item trigger to the ORD block.
Open the Master Schedule window.
Courier new,
case sensitive
(default is
lowercase)
Code output,
directory names,
filenames,
passwords,
pathnames,
URLs,
user input,
usernames
Code output: debug.set (I, 300);
Directory: bin (DOS), $FMHOME (UNIX)
Filename: Locate the init.ora file.
Password: User tiger as your password.
Pathname: Open c:\my_docs\projects
URL: Go to http://www.oracle.com
User input: Enter 300
Username: Log on as scott
Initial cap Graphics labels
(unless the term is a
proper noun)
Customer address (but Oracle Payables)
Italic Emphasized words
and phrases,
titles of books and
courses,
variables
Do not save changes to the database.
For further information, see Oracle7 Server SQL Language
Reference Manual.
Enter user_id@us.oracle.com, where user_id is the
name of the user.
Quotation
marks
Interface elements
with long names
that have only
initial caps;
lesson and chapter
titles in cross-
references
Select Include a reusable module component and click Finish.

This subject is covered in Unit II, Lesson 3, Working with
Objects.
Uppercase SQL column
names, commands,
functions, schemas,
table names
Use the SELECT command to view information stored in the
LAST_NAME
column of the EMP table.
Arrow Menu paths Select File > Save.
Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:
[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]


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R12.x Oracle Financial Applications Overview Table of Contents
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Typographic Conventions in Code

Convention Element Example
Caps and
lowercase
Oracle Forms
triggers
When-Validate-Item

Lowercase Column names,
table names
SELECT last_name
FROM s_emp;

Passwords DROP USER scott
IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (prod_pie_layer))


Lowercase
italic
Syntax variables CREATE ROLE role
Uppercase SQL commands and
functions
SELECT userid
FROM emp;
Typographic Conventions in Oracle Application Navigation Paths
This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:
1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.
2. (M) From the menu, select Query then Find.
3. (B) Click the Approve button.
Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab
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R12.x Oracle Financial Applications Overview Table of Contents
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Typographical Conventions in Oracle Application Help System Paths
This course uses a navigation path convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example
(Help) General Ledger > Journals > Enter Journals
represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General Ledger entry.
2. Under the General Ledger entry, expand Journals.
3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of the help system
window.
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eBusiness Suite Overview
Chapter 1 - Page 1
eBusiness Suite Overview
Chapter 1
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eBusiness Suite Overview
Chapter 1 - Page 2
eBusiness Suite Overview

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eBusiness Suite Overview
Chapter 1 - Page 3
Objectives

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eBusiness Suite Overview
Chapter 1 - Page 4
Agenda

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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 5
Key Business Flows

Key Business Flows
Oracle business flows are a collection of application components designed for end-to-end
business processes. They identify the critical business processes an organization utilizes to
support a complete business strategy for managing operations, customers, suppliers,
partners, and employees. Rather than being focused around a specific application's features
or functionality or one organization's activities, Oracle business flows map business processes
across multiple organizations and many applications to represent a streamlined, efficiently
integrated information flow throughout business organizations and across geographies.
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 6
Forecast to Plan

Forecast to Plan: Applications
Daily Business ntelligence provides integrated management reporting and analysis and
information access through self-service, single, Web-based customizable home page.
Features include key performance measurements, operating alerts, and drill down from
summarized information directly to transactional data.
Order Management creates and manages sales order (quote) information via nternet.
Features include Web store, telesales order, reservation and scheduling, pricing model,
shipment support, flexible order hold, discount, freight, and other detailed order information.
Demand Planning creates consensus forecasts based on marketing, sales, operations, and
manufacturing. Features include service parts and demand class forecasting, line of
business-specific demand plans, configure to order, consumable materials planning, preserve
forecast adjustments, and internal collaboration.
Advanced Supply Chain Planning (ASCP) creates constraint-based or optimized plans.
Features include global forecasting, shipping, receiving, carrier, and supplier capacity
calendars, order configuration, consumable materials and co-product planning, master
scheduling, and planner productivity.
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 7
Procure to Pay

Procure to Pay: Applications
Assets streamlines the tracking, depreciation, and maintenance scheduling of assets.
Cash Management reconciles payments and forecasts cash outflows.
Payables records invoices and make payments.
iExpenses provides self-service submission, approval, and management of expenses
online.
General Ledger records inventory, fixed assets, payables liability, expenses and
payments.
Purchasing sources, requisitions, and procures goods and services.
iProcurement provides self-service requisitioning and web-based deployment to quickly
find goods and services, add them to their shopping cart, and perform checkout.
iSupplier Portal provides secure online supplier collaboration capabilities for suppliers to
easily perform common supplier business functions.
Sourcing provides a central repository for purchasing information and workflow-based
automation, conducting online negotiations and reducing sourcing cycle time.
nventory sets up inventory and expense items and records inventory activity such as
receipts of inventory, returns and corrections.
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 8
Daily Business ntelligence provides integrated management reporting and analysis and
information access
Not shown:
- eBusiness Tax: Consists of a tax knowledge base, a variety of tax services that
respond to specific tax events, a set of repositories (for tax content and tax
recording) that allow you to manage your local tax compliance needs in a proactive
manner, as well as the ability to integrate with external tax content providers
through a single integration point
- Subledger Accounting: Provides centralized rules and a common repository, and
global control of your accounts
- Multi-Organization Access Control: Provides role based access to Operating Units,
and allows you to perform multiple tasks across operating units without changing
responsibilities
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 9
Demand to Build

Demand to Build: Applications
Material Requirements Planning (MRP) creates requisitions to replenish inventory.
Work in Process (WP) provides transactions, materials, resources, costs, job, and
schedule progress through a combination of manufacturing methods. Features
enhanced are component picking, scheduling, electronic records and signatures,
discrete workstation, quantity override during backflush, outside processing, and mobile
manufacturing.
Cost Management supplies cost information for optimized planning
Capacity calculates your capacity load ratio by resource or production line, making sure
you have sufficient capacity to meet your production requirements.
Bill of Material (BOM) stores items lists associated with a parent item and item relation to
its parent.
Daily Business ntelligence
Purchasing/iProcuremen t
nventory
Order to Cash (Order Management)
Advanced Supply Chain Planning (ASCP)
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 10
Campaign to Order

Campaign to Order Flow
Note: The slide reflects the front end functionality, not the the complete backend integration
with many of the shared entities.
Discoverer creates market customer base segments to a target segment. For example,
Market Segment = All Repeat Customers, Target Segment = Males 35+ years old.
Marketing creates a marketing campaign to target a particular audience and is executed
via Web, email, sales calls, or other channels.
Scripting creates a script to walk the sales agent through a particular offer and makes it
available to all inbound agents from the Sales application.
The audience receives email or phone calls and reads an advertisement.
n Advanced nbound, they place a call to an 800 number directing to the inbound call
center and the call is routed to an appropriate sales agent.
n Sales, the sales agent launches a script to walk them through the offer details.
n the Order to Cash flow, the sales agent creates a quote that is passed to Order
Management or into the Order to Cash business flow.
Campaign to Order also uses Daily Business ntelligence.
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eBusiness Suite Overview
Chapter 1 - Page 11
Click to Order

Click to Order: Applications
Note: The slide reflects the front end functionality, not the the complete backend integration
with many of the shared entities.
nventory stores the products and services to be sold in the store as items. iStore, the
focal point of Click to Order, helps a company do business on the web using Business to
Consumer (B2C) and/or Business to Business B2B) models.
JTA provides user management functionality to the store to create and manage users.
Marketing has the eMerchandizing module to advertise and make product
recommendations within the store; creates campaigns involving discounts created in
Pricing.
Sales avails of saved shopping carts as leads.
Pricing determines the item price and sees if there are modifiers that can be applied to
the it.
Quoting quotes a saved shopping cart and can call Pricing to determine the price.
Order to Cash orders iStore to communicate via the Order Capture Foundation APs to
Order Management (Order Fulfillment).
Daily Business ntelligence
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 12
Order to Cash

Order to Cash: Applications
Cash Management reconciles deposits, corrections, and adjustments and forecasts cash
inflows and outflows.
Receivables books receivables for shipped goods and services.
iReceivables helps review account information, pay bills, dispute invoices online, reduce
billing and collections cost structure with automatic routing and processing, eliminating
intermediaries or paper-based claims management
General Ledger records receivables, revenue, and cash receipts.
Purchasing/iProcurement requisitions drop shipments and/or back to back orders.
Order Management ships goods and provides services.
nventory
Daily Business ntelligence
Not shown:
- eBusiness Tax: Consists of a tax knowledge base, a variety of tax services that
respond to specific tax events, a set of repositories (for tax content and tax
recording) that allow you to manage your local tax compliance needs in a proactive
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 13
manner, as well as the ability to integrate with external tax content providers
through a single integration point
- Subledger Accounting: Provides centralized rules and a common repository, and
global control of your accounts
- Multi-Organization Access Control: Provides role based access to Operating Units,
and allows you to perform multiple tasks across operating units without changing
responsibilities
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 14
Contract to Renewal

Contract to Renewal Flow
Note: The slide reflects the front end functionality, not the the complete backend integration
with many of the shared entities.
iStore receives an order that can have a sales contract created for it. Upon checkout,
the customer can accept or negotiate the sales contract terms.
From Quoting, a sales representative can create a quote for a customer and a sales
contract from the quote for further negotiation.
Sales Contracts creates sales contracts.
From Quoting, the quote is sent to Order to Cash flow for booking and fulfillment. f the
item purchased has an attached warranty or a purchased extended warranty, a service
contract will be created when it is instantiated in the customer's install base.
Through Service Contracts, a warranty or service contract can be purchased and billed if
the item the customer wants a warranty for was not purchased from the deploying
merchant.
Accounts Receivable invoices for the item, item with extended warranty, or just the
service contract.
Daily Business ntelligence
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 15
Request to Resolution

Request to Resolution Flow
Note: The slide reflects the front end functionality, not the the complete backend integration
with many of the shared entities. The dashed lines (- - - - - ) show some of the additional
options to resolve a service request.
Customers purchased a product from a merchant who has implemented iSupport and
log into iSupport, where they can view and update their nstalled Base.
n the nstalled Base, the products you own will manually or automatically show for that
customer account.
Products must exist in nventory to add them automatically or manually.
You can search for a solution using Knowledge Management or submit a service
request.
Teleservice is used by the merchant's support personnel.
Order Capture Foundation APs: From iSupport or Teleservice, you can also create
Return Material Authorized (RMA), which is submitted to the Order Fulfillment cycle.
Order Fulfillment can also refer to the Order to Cash flow, where an order is credited
with line types for a return.
Daily Business ntelligence
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 16
Project to Profit

Project to Profit: Applications
General Ledger records the accounting activity.
Payables/iExpenses record project-related invoices.
Receivables/iReceivables record progress billings.
Purchasing/iProcurement record committed costs.
Assets capitalizes assets.
Payroll records project-related labor.
Daily Business ntelligence
Not shown:
- eBusiness Tax: Consists of a tax knowledge base, a variety of tax services that
respond to specific tax events, a set of repositories (for tax content and tax
recording) that allow you to manage your local tax compliance needs in a proactive
manner, as well as the ability to integrate with external tax content providers
through a single integration point
- Subledger Accounting: Provides centralized rules and a common repository, and
global control of your accounts
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 17
- Multi-Organization Access Control: Provides role based access to Operating Units,
and allows you to perform multiple tasks across operating units without changing
responsibilities
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 18
People to Paycheck

People to Paycheck: Applications
HRMS manages human resources-related activities.
Payroll manages payroll.
Cash Management reconciles payroll.
General Ledger records labor expense.
Daily Business ntelligence
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Copyright Oracle, 2010. All rights reserved.
eBusiness Suite Overview
Chapter 1 - Page 19
Quiz

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eBusiness Suite Overview
Chapter 1 - Page 20
Quiz

Answer: b
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eBusiness Suite Overview
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Summary

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eBusiness Suite Overview
Chapter 1 - Page 22

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 1
Accounting to Financial
Reporting
Chapter 2
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Accounting to Financial Reporting
Chapter 2 - Page 2
Accounting to Financial Reporting

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Accounting to Financial Reporting
Chapter 2 - Page 3
Objectives

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Accounting to Financial Reporting
Chapter 2 - Page 4
Agenda

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Accounting to Financial Reporting
Chapter 2 - Page 5
Agenda

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 6
Purpose of General Ledger

Purpose of General Ledger
Oracle General Ledger is the central repository of accounting information. The main purposes
of a general ledger system are to record financial activity of a company and to produce
financial and management reports for people inside and outside the organization to make
decisions.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 7
General Ledger Capabilities

General Ledger Capabilities
Through Oracle General Ledger, you can:
Record and review accounting information
mport data from subsidiary ledgers or enter journals to record actual or budget
transactions directly into Oracle General Ledger
Enter encumbrance journals to track encumbrances through the purchase process and
to control spending against budgeted amounts
Review account balances online or through reports
Adjust accounting information
Correct actual, budget, and encumbrance information
Revalue and translate balances denominated in foreign currencies
Consolidate balances from multiple ledgers
Analyze accounting information
ntegrate Oracle General Ledger with OB Standard Edition, or Web AD to simplify the
budgeting and forecasting process
Quickly prepare what if analyses and pro forma reports
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 8
Functions and Features

Functions and Features
nformation Access
You can access information stored in the General Ledger through online inquiries or
reporting and analysis tools. Oracle General Ledger is the repository of your
organization's financial information.
Financial Controls
You use security features to control access to specific areas and functions of General
Ledger.
Data Collection
You collect data from Oracle subledgers and non-Oracle feeder systems.
Financial Reporting and Analysis
You select from a variety of standard reports and listings.
You use the Financial Statement Generator to build customized reports with reusable
report objects.
Use Web AD (Web Applications Desktop ntegrator) Report Manager to view reports
and drilldown on balances within a spreadsheet environment.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 9
General Ledger Accounting Cycle

General Ledger Accounting Cycle
1. Open period
2. Create/reverse journal entries
3. Post
4. Review
5. Revalue
6. Translate
7. Consolidate
8. Review/correct balances
9. Run accounting reports
10. Close accounting period
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 10
Journal Entry Functions

Journal Entry Functions
Using Oracle General Ledger, Oracle subledgers, and Web AD, you can perform the
following journal entry functions:
Create journal entries in Oracle General Ledger or use Web AD (Application Desktop
ntegrator) to enter journals from a spreadsheet.
mport journal entries
Post journal entries
nquire on account information and journal entries
Drill down to subledgers
Run reports
Reverse journal entries
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 11
Sharing Ledgers Across Oracle Applications

Sharing Ledgers across Oracle Applications
Many elements of an Oracle General Ledger Ledger are shared with other Oracle
applications. Oracle subledgers share the following from Oracle General Ledger:
Chart of accounts, value sets, segment values, security rules, and cross-validation rules
used to record the accounting for transactions
Enabled currencies, conversion rate types, and daily rates used to convert foreign
currency transactions
Calendar, periods and period types used as the basis for the subledger accounting
periods
Journal entry sources and categories used to record information about the origination
and purpose of transactions
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 12
Accounting Entries nterface nformation

Accounting Entries Interface Information
Purchasing: Accrual of receipts not invoiced, purchase orders, final close, cancellations
Cost Management: Cycle count and physical inventory adjustments, receiving
transactions, delivery transactions, intercompany transfers, sales order issues, internal
requisitions, subinventory transfers, cost of goods sold (COGS).
Work n Process: Material issues or backflush to WP, completions, returns, resource
and overhead transactions, cost update.
Payroll: Salary, deductions and taxes.
Projects: Cost distribution of labor and non-labor, revenue.
Payables: nvoices, payments, realized gain and loss, invoice price variance.
Assets: Capital and construction in process asset additions, cost adjustments, transfers,
retirements, depreciation, reclassifications
Receivables: nvoices, payments, adjustments, debit memos, credit memos, cash,
chargebacks, realized gain and loss
SLA (not shown): Enables a unified process to account for subledger transactions and
post data to General Ledger, and to provide a consistent view when drilling down from
General Ledger to subledger transactions.
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Accounting to Financial Reporting
Chapter 2 - Page 13
Subledger ntegration

Subledger Integration
Create Accounting Process
The parameters you use when you submit the Create Accounting program determine how
accounting entries are transferred to the ledgers in your general ledger. Accounting can be
created in draft, final or final and post mode. You can transfer subledger accounting entries in
summary or detail. Regardless of the option you choose, you can always drill down to the
subledger to view the details that build the general ledger balances.
Create Accounting Draft
f you submit the Create Accounting in Draft mode, you can review the subledger accounting
entries generated for your Payables transactions. f any accounting is incorrect, you can
update the transaction in Payables to correct the accounting before you create final
accounting.
Create Accounting Final
Run the Create Accounting process in Final mode to generate your final subledger accounting
entries. Once you generate final accounting, they must be posted from the General Ledger.
Create Accounting Final and Post
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Accounting to Financial Reporting
Chapter 2 - Page 14
Run the Create Accounting process in Final and Post mode to generate your final subledger
accounting entries. Once you generate final accounting, you cannot correct the accounting.
nstead, you must enter correcting transactions in Payables.

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 15
Reporting and Analysis

Reporting and Analysis
Online account and transaction analysis: Drilldown to account balances and journal
entries to their source.
Standard reports and listings: Oracle General Ledger provides over 70 different standard
reports and listings to help you view financial and non-financial information.
Financial Statement Generator reports: Through FSG, you can create custom financial
statements without programming.
Web AD Report Manager: You can select amounts from spreadsheet-based FSG
reports and drill into the underlying financial information within Oracle Applications.
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Accounting to Financial Reporting
Chapter 2 - Page 16
nterface Data Transformer (DT)

Interface Data Transformer (IDT)
The nterface Data Transformer (DT) makes importing of data from external feeder systems
into Oracle General Ledger or Oracle Global Consolidation System fast and easy. The DT
reduces the manual effort required to convert disparate data formats into a format that Oracle
recognizes and accepts. DT takes data from external feeder systems that have been loaded
into the GL_NTERFACE table and transforms it into the proper format for import into Oracle
General Ledger based on rules you define.
nstead of having to manually map the values from the external system into a format
acceptable by the target system, you can create transformation rules and apply them to the
external data to have them automatically mapped for you. Each time you import data, you can
simply reapply the same rules. By defining reusable rules, you can reapply the same rules
each time you transfer data from external systems into Oracle General Ledger or Global
Consolidation System. You can even use conditions to control when transformation rules are
applied. You can feel safe that the data is valid and will not corrupt your existing data because
DT validates the imported data for you every time.
DT is very flexible. t can be used for data import purposes outside of GL and GCS. Because
DT uses meta data to specify the structure of the interface table, you can use DT as a
generic transformation tool to transform data in any interface table as long as you specify the
interface table structure in the meta data. The transformation rule sets transform any data
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Accounting to Financial Reporting
Chapter 2 - Page 17
from a source to a target, regardless of the table structure of the source or target table. By
applying conditions, you can address those special circumstances and control when the
transformation rules should be applied.
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Accounting to Financial Reporting
Chapter 2 - Page 18
DT Responsibility and Data Menus

IDT Responsibility and Data Menus
Access the nterface Data Transformer using the nterface Data Transformer responsibility.
You can:
Define and update Rule Sets
Submit the GL nterface Data Transformer program
Correct errors in the GL_NTERFACE table via the Correct Journal mport window
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Accounting to Financial Reporting
Chapter 2 - Page 19
DT Transformation Rule Sets

IDT Transformation Rule Sets
The web-interface allows you to define a Transformation Rule Set. The transformation rule set
is a set of instructions that instructs the nterface Data Transformer on how to transform the
data from the external system. You have several options, such as using Lookup Tables,
PL/SQL Functions, or String Functions. When you load the external data into the
GL_NTERFACE table, you apply a transformation rule set to transform the data into
something recognized and accepted by Oracle General Ledger. You can also use this for
importing into the Oracle Global Consolidation System.
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Accounting to Financial Reporting
Chapter 2 - Page 20
Open ntegration with External Processing

Open Integration with External Processing
Oracle General Ledger allows you to integrate your external processing needs with the
General Ledger application using Business Events. The Business Event System was first
introduced by Oracle Workflow, which is an application service that leverages the Oracle
Advanced Queuing (AQ) infrastructure.
The Business Event System consists of the Event Manager, which lets you register
subscriptions to events that are significant to your systems. Then with event activities, you can
model business events within the workflow process. This allows you to customize Oracle
General Ledger processes without having to make costly, time-consuming modifications to the
standard code. You can choose what type of actions you want performed when a business
event occurs. This allows you to automate certain business processes to reduce labor-
intensive tasks and streamline your operations.
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Accounting to Financial Reporting
Chapter 2 - Page 21
Open ntegration with External Processing: GL Business Events

Open Integration with External Processing: GL Business Events
Period Opened occurs when a period is first opened.
Period Closed occurs when a period is closed such as you can create an event
subscription for this event that executes a script to check for any unposted journals in
the GL Journals table.
Period Re-Opened occurs when a closed period is re-opened. Because many
companies are sensitive about updating prior period balances, you could create an event
subscription that sends a notification to the Controller before it's too late and financial
statements need to be restated.
Account Disabled occurs when an account is disabled in the GL Accounts window or by
the nherit Segment Value Attributes program. Create a custom event subscription that
runs a program to see if the disabled account exists in any subledger transactions to be
posted to GL to avoid errors during the journal import process when subledgers are
transferring data to GL.
Journal mport Started occurs when a journal import process is initiated.
Journal mport Completed occurs when the journal import process completes. f you
import many journals, you could create a subscription that sends notifications when this
event occurs.
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Accounting to Financial Reporting
Chapter 2 - Page 22
Posting Completed occurs when the posting process has completed to inform you that
balances have been updated and reports can be generated.
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Accounting to Financial Reporting
Chapter 2 - Page 23
Open ntegration with External Processing Benefits

Open Integration with External Processing Benefits
Flexibility of E-Business Suite Processes: By using Business Events, you can configure
the E-Business Suite to adhere to your own business processes, rather than modify your
processes to adhere to the Suite. Because these business events come pre-defined, all
you need to create is the event subscription or action that you want to take place when
the event occurs. This allows you to customize significant GL processes without having
to create the events yourself which may not survive upgrades or is not supportable.
Automation: Automation is another benefit achieved with Business Events. ts integration
with Oracle Workflow allows you to tie common GL processes with processes outside of
GL. Disabling an account in GL, and then automatically checking subledger transaction
tables for any pending transactions is the best example of this. This translates into huge
efficiency gains and allows you to run your entire business in an automated fashion.
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Accounting to Financial Reporting
Chapter 2 - Page 24
Advanced Global ntercompany System (AGS)

Advanced Global Intercompany System (AGIS)
AGS allows you to define intercompany and intracompany balancing rules through consistent
application of ntercompany Accounts and ntracompany Balancing Rules in both Subledger
Accounting and General Ledger. The balancing rules support encumbrance journals.
Efficiency is increased since unbalanced encumbrance journals can be automatically
balanced using intercompany and intracompany balancing rules. AGS:
Generates subledger invoices
Controls transaction entry with the ntercompany Calendar
Has fully configurable approval rules
Has a flexible security model
Has centrally defined intercompany accounts
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Accounting to Financial Reporting
Chapter 2 - Page 25
AGS Features

AGIS Features
With Advanced Global ntercompany System, you enter intercompany transactions at the GL
level, as well as create intercompany invoices in AP and AR. ntracompany Balancing is used
consistently across Subledger Accounting and General Ledger to balance journals within a
legal entity. You can also balance cross-entity journals by defining ntercompany Accounts for
the legal entities that act as trading partners. The balancing rules support encumbrance
journals too. Unbalanced encumbrance journals can be automatically balanced using
intercompany and intracompany balancing rules.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 26
AGS Journals Balancing Process

AGIS Journals Balancing Process
For ntracompany journals, the Journal Mode is used to determine the interaction between
balancing segment values on a journal. n this example, companies refer to balancing
segment values.
1 to 1: s where only two companies or balancing segment values are used in the
journal. One with a net debit balance and the other with a net credit balance.
1 to Many: s where one company has a net debit balance, and two or more companies
have a net credit balance. The debit balancing segment is the driving segment, or the
segment with which all the other balancing segments are trading.
Many to 1: s where one company has a net credit balance, and two or more companies
have a net debit balance. The credit balancing segment is the driving segment.
Many to Many: s where two or more companies have a debit balance and two or more
companies have a credit balance. Because there is no automated way to determine the
trading relationships on this type of journal, Many to Many journals must balance using a
clearing company (another balancing segment with which each balancing segment
balances) or using the Default Rule.
The balancing AP handles all situations, even if there is a mixture of both ntercompany and
ntracompany lines on the transaction, it follows the correct rules when it generates the
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Accounting to Financial Reporting
Chapter 2 - Page 27
balancing lines (balancing the ntercompany accounts first, and then any ntracompany
accounts after).
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Accounting to Financial Reporting
Chapter 2 - Page 28
AGS mplementation Considerations

Implementation Considerations
The GL Posting program and the Create Accounting program in Subledger Accounting call the
AGS Balancing AP to balance journal lines across balancing segment values. f the
balancing segment values represent different legal entities, then the ntercompany Accounts
are used. f the balancing segment values are assigned to the same legal entity, then
ntracompany Balancing Rules are used to balance the journal.
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Accounting to Financial Reporting
Chapter 2 - Page 29
Agenda

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Accounting to Financial Reporting
Chapter 2 - Page 30
Elements

Elements
Chart of Accounts
- Your chart of accounts is the account structure you define to fit the specific needs
of your organization.
- You can choose the number of account segments as well as the length, name, and
order of each segment.
Accounting Calendar
- An accounting calendar defines an accounting year and the periods it contains.
- You can define multiple calendars and assign a different calendar to each Ledger.
Currencies
- You select the functional currency for your Ledgers as well as other currencies that
you use to transact business and report in.
- General Ledger converts monetary amounts entered in a foreign currency to
functional currency equivalents using supplied rates.
Subledger Accounting Method
- Legal entities that operate in different countries or industries can have different
accounting standards.
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Accounting to Financial Reporting
Chapter 2 - Page 31
- For example, one legal entity uses the accrual method of accounting and another
uses the cash basis of accounting.
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Accounting to Financial Reporting
Chapter 2 - Page 32
Chart of Accounts Structure

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Accounting to Financial Reporting
Chapter 2 - Page 33
Chart of Accounts

Chart of Accounts
n Oracle General Ledger, you build a chart of accounts using accounting flexfields, with the
following benefits:
Flexibility: You can design a flexible account structure that meets your reporting needs
and anticipates the way you run your organization in the future.
Creating multiple rollups: You can summarize accounting information from multiple
perspectives by creating rollup groups.
Using ranges: With a well-planned account structure, you can use ranges to group
accounts in reports, specify security and cross-validation rules, define summary
accounts and reporting hierarchies.
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Accounting to Financial Reporting
Chapter 2 - Page 34
Business Requirements

Business Requirements
dentify the aspects of your business that you need to track and analyze. Pay specific
attention to aspects that span several applications. f all the details for an item is contained in
one application or a group of tightly integrated applications, you retain the detail in the
application itself. Do not add extra segments to the accounting flexfield structure for detail
that is tracked in your subledgers. For example, if you are using Oracle Projects, do not
include a project segment in your accounting flexfield .
Conversely, if you capture details in multiple applications that all pass data to Oracle General
Ledger, consider including other elements, such as product, in the accounting flexfield.
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Accounting to Financial Reporting
Chapter 2 - Page 35
Creating Vertical Structures

Creating Vertical Structures
Consider summarizing your data according to your management structure. Create a separate
segment for the lowest level in the accounting flexfield. Strive to use parent rollups within a
single segment for reporting, rather than creating additional segments in the accounting
flexfield. For example, a child value of Company reports to Western Region which reports to
European Division. Only Company is a posting level account in the accounting flexfield. Set up
Western Region as parent of Company and Western Division as parent of European Region.
f your company reorganizes frequently, use parent/child relationships for maximum flexibility.
A child value can be in multiple parents. t is better to create new parent structures than to
modify existing structures because changes can effect historical reporting. For example, if the
Western Region contained five companies, reported year end results, and then had two more
companies moved into its child range, then historical reports ran after the two additional
companies were added would show different results.
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Accounting to Financial Reporting
Chapter 2 - Page 36
Defining Hierarchies

Defining Hierarchies
Child segment values Post journals and enter budgets directly to child segment values. Assign
ranges of children to "parents.
Parent segment values Use parents to sum associated child accounts balances. Any
segment with children beneath it and with its own parent above it, is considered a parent by
Oracle General Ledger. You cannot post journals or enter budgets directly for parent segment
values. Assign ranges of child values to parent values to create summations for running
reports, MassAllocations, or MassBudgeting.
You can create parent segment values for independent segments with limitations when used
with dependent segments. The Dependent validation type limits using parent values with
MassAllocations, MassBudgeting, and FSG. The only parent value available for dependent
segments is an all inclusive parent that includes all the values of the value set.
Technical Note
Summary accounts may use the segment value 'T' in one or more of the segments. Define 'T'
for every accounting flexfield segment when creating summary accounts. This value is a
parent value even though its children are not specifically assigned. Use char as the format
type for all segments of the accounting key flexfields because of the value "T."
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Accounting to Financial Reporting
Chapter 2 - Page 37
Account Hierarchies

Account Hierarchies
Use various flexible parent/child account hierarchies to view your business according to
product lines, geographical regions, organizational lines, or any other combination of factors
you deem important. Create your hierarchy with as many vertical and horizontal levels as you
need to effectively analyze your business or business segment. t is better to create new
parent structures than to modify existing structures because changes can effect historical
reporting.
Note that Oracle General Ledger treats all segment values that have the Parent check box
selected as parents even if they don't have children assigned and does not allow direct
posting or budgeting to these values.
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Accounting to Financial Reporting
Chapter 2 - Page 38
Building the Chart of Accounts Structure

Building the Chart of Accounts Structure
The decisions you make when designing your chart of accounts are very important. Making
changes in the future to the structure of your chart of accounts is difficult and not
recommended. Plan carefully to create an account structure that meets the current needs of
your organization and anticipate future requirements. Tailor your account structure for your
industry and reporting requirements.
Choose the number of segments, as well as the length, name, and order of each segment.
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Accounting to Financial Reporting
Chapter 2 - Page 39
Creating Accounting Flexfields

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Accounting to Financial Reporting
Chapter 2 - Page 40
Defining and Assigning Value Sets

Defining and Assigning Value Sets
(N) Setup > Financials > Flexfields > Validation > Sets
1. Define a Value Set: A value set defines the boundaries for the attributes that you assign
to a key or descriptive flexfield segment. t controls what types of values can be used as
Accounting Flexfield segment values. t determines the attributes of your segments such
as length, zero-fill, right-justify, alphanumeric, and value security. t also controls how
validation is performed. For example, with independent validation, a list of values must
be created and used.
2. Assign Value Sets to Segments: Assign one value set to each Accounting Flexfield
segment.
3. Share the same value sets across multiple ledgers to facilitate consolidation: You can
use the same value set more than once within the same Accounting Flexfield structure,
as noted in the diagram above, where the same values set is used for the Balancing and
ntercompany segments.
Note that changing the attributes of a value set affects all of the Accounting Flexfield
segments using that value set.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 41
Defining the Accounting Flexfield Structure

Defining the Accounting Flexfield Structure
Each Ledger can have its own Accounting Flexfield structure.
1. Define your account structure in the Key Flexfield Segments window.
- (N) Setup > Financials > Flexfields > Key > Segments
2. Select the appropriate symbol in the Segment Separator field.
3. Select dynamic insertion for new account combinations to be entered. Without dynamic
insertion, account combinations must be defined using the GL Accounts window.
4. Select cross-validation rules to control the creation of account combinations.
5. You can also select the flexfield structure and compile changes made to an accounting
flexfield.
- Enter a name, description, column and segment number for each segment.
Segment numbers must be sequential for the accounting key flexfield, beginning
with 1.
- To prevent changes to the Accounting Flexfield structure definition, select the
Freeze Flexfield Definition check box.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 42
Defining the Accounting Flexfield Structure

Defining the Accounting Flexfield Structure
1. Set Validation nformation for Segments
- Assign a value set to each segment.
- Always select the flexfield security check box for each segment.
- Enter a default value from the list of values or enter another value.
- Select the Required check box and the Displayed check box.
2. Select Different Sizes for the Segment Display
- Choose the number of characters to be displayed for the flexfield segment value
and its description in the Display Size and Description Size fields.
- n the Concatenated Description Size field, choose the number of characters to be
displayed for each segment value description that makes up the account
combination.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 43
Defining the Accounting Flexfield Structure

Defining the Accounting Flexfield Structure
n the Flexfield Qualifiers window, assign qualifiers to individual accounting key flexfield
segments:
Natural Account: Each Accounting Flexfield structure must contain only one natural
account segment. When setting up the values, you will indicate the type of account as
Asset, Liability, Owner's Equity, Revenue, or Expense.
Balancing Account: Each structure must contain only one balancing segment. Oracle
General Ledger ensures that all journals balance for each balancing segment.
Cost Center: This segment is required for Oracle Assets. The cost center segment is
used in many Oracle Assets reports and by Oracle Workflow to generate account
numbers. n addition, Oracle Projects and Oracle Purchasing also utilize the cost center
segment.
ntercompany: General Ledger automatically uses the intercompany segment in the
account code combination to track intercompany transactions within a single Ledger.
This segment has the same value set and the same values as the balancing segment.
Secondary Tracking Qualifier
Managemen t Segment Qualifier
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 44
Management Reporting and Security

Management Reporting Security
There is a new management segment qualifier for the chart of accounts. Typically, you would
qualify a segment to be the management segment if that segment has management
responsibility. For example, a line of business, cost center, or product line. The added benefit
of using a management segment is that you can now secure management segment values
using data access sets. So you can grant read only or read and write access to specific
management segment values to prevent certain managers from viewing and updating data for
cost centers, lines of business, or product lines outside of their management authority.
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Accounting to Financial Reporting
Chapter 2 - Page 45
Management Reporting and Security Example

Management Reporting Security Example
Example: This is the cost center organizational hierarchy. Director A has cost center OU97,
Director B has OS69 and Director C has OX53. By assigning the cost center segment as the
management segment, read and write access can be secured to certain management
segment values based on the cost center manager. For example, Director A has read and
write access to only cost center OU97. Director A does not have access to Director B's or
Director C's cost center or to the Vice President's cost center.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 46
Management Reporting and Security Example

Management Reporting Security Example
The Vice President, on the other hand, would have full read and write access to cost center
0683 which is the parent of the direct reports. Thus, the Vice President has full access to all
direct reports' data.



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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 47
Defining Segment Values

Defining Segment Values
(N) Setup > Financials > Flexfields > Key > Values
Use the Segment Values window to enter values for each segment you create. These are the
values that you use when building your account code combinations. Note that you must create
the segments and account structure before performing this step.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 48
Secondary Tracking Segment

Secondary Tracking Segment
Use the a secondary tracking segment to nominate a segment in your chart of accounts to act
as your secondary tracking segment. Any segment, except the balancing segment or natural
account segment, can be specified as the secondary tracking segment.
Once you choose which segment you want as the secondary tracking segment, its value is
paired with the balancing segment value when generating account balances for the Retained
Earnings account, Unrealized Gains or Losses account, and the Cumulative Translation
Adjustment account.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 49
Secondary Tracking Segment Benefits

Secondary Tracking Segment Benefits
A secondary tracking segment provides better audit and analysis capabilities. You now have
more visibility into the detailed components of Retained Earnings, CTA, and Unrealized Gains
and Losses. nstead of tracking these accounts by a balancing segment alone, you can track
them by the balancing and another segment of your choice, such as Department, Line of
Business, or Cost Center.
t also provides better control and consistency of similar transactions because this option is
set at the Ledger level instead of through a profile option. By being able to nominate any
segment other than your primary balancing segment or natural account segment to act as
your secondary tracking segment, you have greater flexibility in tracking accounts by pairs of
segments.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 50
Selecting Account Combinations

Selecting Account Combinations
The default setting for an account code combination is selected. Once created, an account
code combination cannot be deleted. To discontinue using an account code combination,
simply deselect the Enabled check box for the account. You can also use the effective date to
select or deselect the combination.
For example, if you have a new department as of January 1, 2002, you can create an account
code combination with an effective date of 01-JAN-2002 and the account combination
becomes enabled on that date. This means you have the flexibility to create the account
combinations in advance.
Additionally, you can control the following attributes from the GL Accounts window:
Preserved
Type
Effective Dates
Allow Posting
Allow Budgeting
Alternate Account
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 51
Using Dynamic nsertion

Using Dynamic Insertion
Set the Allow Dynamic nserts Option. You have the option to add account combinations
automatically as you enter them in transactions, including when you define a Ledger. This
option is controlled by the Allow Dynamic nserts check box located on the Key Flexfield
Segments window. Alternately, you can require all accounts to be define manually in the
Accounts Combinations window.
Frequently, companies select dynamic insertion while they are entering historical data from a
legacy system. They then deselect the feature to ensure tighter control over the creation of
new account combinations. Note that if you are defining an accounting flexfield for Oracle
Projects, you must define your segment with the Allow Dynamic nserts option set to Yes. For
more information, refer to the Oracle Projects User Guide.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 52
Defining Cross-Validation Rules

Defining Cross-Validation Rules
Cross-validation controls the value combinations you can create when setting up Accounting
Flexfield combinations. A cross-validation rule defines whether a value of a particular
segment can be combined with specific values of other segments. t is different from segment
validation, which controls the values you can enter for a particular segment. Use cross-
validation rules to prevent the creation of combinations that should never exist, combinations
with values that should not coexist in the same combination. For example, you can assign
rules to prevent the product combination with administrative departments.
Defining and Revising Cross-Validation Rules: Because cross-validation rules validate
only new accounts, you should define and select them prior to entering accounts.
Revise cross-validation rules at any time, but remember that they only prevent the
creation of new invalid account combinations.
Combining Segment Values: New accounts must pass every selected cross-validation
rule to be valid. Cross-validation rules do not affect existing accounts.
Using Cross-Validation with Dynamic nsertion: Select dynamic insertion in the Key
Flexfield Segments window for users to define new account combinations of segment
values. f dynamic insertion is not selected, you can only enter new account
combinations of segment values using the GL Accounts window. Cross validation rules
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Accounting to Financial Reporting
Chapter 2 - Page 53
are important even if dynamic insertion is not enabled to prevent creating invalid
combinations accidentally.
Specifying Cross-Validation Rules: To enter cross validation rules, navigate to the Cross
Validation Rules window.
(N) Setup > Financials > Flexfields > Key > Rules
Enter the error message that should be displayed if the rule is violated: nclude the rule
name in the error message for easy identification. Enter the segment name most likely
to cause this cross-validation rule to fail; Oracle General Ledger moves the cursor to this
segment whenever a new account combination violates this cross-validation rule.
Defining Cross-Validation Rule Elements: Select nclude or Exclude and specify a range
of accounts for each rule. Oracle General Ledger excludes all accounts that are not
explicitly included. Exclude rule elements always override nclude rule elements.
Create a universal nclude statement that includes all possible accounts, then specify
Exclude statements.
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Accounting to Financial Reporting
Chapter 2 - Page 54
Defining Cross-Validation Rules

Defining Cross-Validation Rules
Note that defining many rules with few elements is clearer than defining few rules with many
elements. Always have one universal nclude element and one or more restricting Exclude
elements. To help maintain cross-validation rules, have your system administrator add the
following reports to your General Ledger responsibility:
Cross-Validation Rule Violation Report: This report provides a listing of all the
previously-created flexfield combinations that violate your cross-validation rules. You can
also choose to have the report program actually disable the existing combinations that
violate your new rules.
Cross-Validation Rules Listing Report: This report lists all the cross-validation rules that
exist for a particular flexfield structure. This is the information you define using the
Define Cross-Validation Rules form, presented in a multiple-rule format you can review
and keep for your records for a given flexfield structure.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 55
Defining Flexfield Security Rules

Defining Flexfield Security Rules
(N) Setup > Financials > Flexfields > Validation > Security > Define
To prohibit certain users from accessing specific segment values, you can define flexfield
security rules and assign those rules to the responsibility of the restricted users. For example,
you can create a security rule that grants a user access only to his or her own department.
Accounting Flexfield segment values must pass every assigned flexfield security rule for a
user's responsibility before the value can be selected by the user.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 56
Accounting Calendar

Accounting Calendar
Through Oracle General Ledger, you can define multiple calendars and assign a different
calendar to each Ledger. For example, you can use a monthly calendar for one Ledger, and a
weekly calendar for another.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 57
Defining Period Types

Defining Period Types
Oracle General Ledger uses the year type to determine the year to assign to a period name in
the accounting period system. When defining new period types, do the following:
Select Calendar to use the year in which an accounting period begins for the period
name.
Select Fiscal to use the year in which your fiscal year ends for the period name.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 58
Accounting Period Statuses

Accounting Period Statuses
Never Opened: You cannot enter or post journals.
Future Enterable: You can enter journals, but you cannot post. The number of future
enterable periods is a fixed number defined in the Ledger window. You can change the
number of Future Enterable periods at any time.
Open: You can enter and post journals to any open period. An unlimited number of
periods can be open, but doing so may slow the posting process and can confuse users
entering journals.
Closed: You must reopen Closed periods before you can post journals. You should
manually close periods after finishing your month-end processing.
Permanently Closed: Permanently Closed periods cannot be reopened. This status is
required to archive and purge data.
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Accounting to Financial Reporting
Chapter 2 - Page 59
Unlimited Currencies

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 60
Selecting Currencies

Selecting Currencies
To select or deselect a currency, open the Currencies window.
(N) Setup > Currencies > Define
For more information, refer to the Oracle General Ledger User Guide or the R12 General
Ledger Financial Management Fundamental Topic Multi-Currency or the Advanced Topic
Multiple Reporting Currencies.
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Accounting to Financial Reporting
Chapter 2 - Page 61
Creating a Ledger

Creating a Ledger
Ledger Considerations
Minimize the number of future enterable periods to prevent users from accidentally
entering journal entries in an incorrect period.
Ensure that all currencies you use, including the statistical journal (STAT) currency, are
defined and selected prior to entering transactions in your Ledger.
Define responsibilities for a Ledger for appropriate levels of forms security.
Considerations for Multiple Companies Sharing Ledgers
Define account structure, accounting calendar, functional currency, and Ledger.
Create the account flexfield structure. Define the company segment as the balancing
segment with multiple values.
Define the Ledger and assign the options you want to use for the Ledger.
Set up a separate company segment value for your eliminating entries, which you can
post to this elimination company segment without reversing later.
Set up a parent company segment value that includes (as children) all of the company
segment values that you want to consolidate. You can include the eliminating entries
that you set up previously.
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Accounting to Financial Reporting
Chapter 2 - Page 62
For example, if you want to consolidate companies 01 through 07 and your eliminating entries
are made to company 08, define a parent company 09 whose children are companies 01
through 08. nclude the parent company in a rollup group, and then define summary templates
with this rollup group.
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Accounting to Financial Reporting
Chapter 2 - Page 63
Accounting Setup Manager

Accounting Setup Manager
Components consist of:
Legal Entities: Legal entities can be manually assigned to a ledger and balancing
segment values can optionally be mapped to legal entities to help you identify
transactions by legal entity during transaction and journal processing. You can access
multiple legal entities and ledgers when you log into Oracle General Ledger using a
single responsibility. This improves processing efficiency by reducing the need to switch
between responsibilities when trying to access data for different ledgers or legal entities.
Balancing Segment Values: Optionally mapped to legal entities to identify transactions
by legal entity during transaction and journal processing.
One Primary Ledger
Operating Units
Reporting Currencies
Secondary Ledgers
Pre-Update Diagnosis Report: Shows inconsistent and incomplete setup and gives you
opportunity to correct before upgrade.
Post-Update Diagnosis Report: Displays results of upgrade.
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Accounting to Financial Reporting
Chapter 2 - Page 64
For example, a Pre-Update Diagnosis Report might say: The following subledger level
reporting currencies were updated from reporting ledgers that have inconsistent currency
conversion options for different products and/or operating units. Accounting Setup Manager
does not support different conversion options by different products and operating units. f you
change the currency conversion options for a subledger level reporting currency, then those
changes will be synchronized across all products and operating units that use that subledger
level reporting currency.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 65
Ledger Options

Ledger Options
Note: Many ledger options are set using the Accounting Setup Manager
Select suspense posting: Posts out-of-balance journal entries to a suspense account
you specify. Enter a suspense account. f you do not select this feature, you can only
post journal entries that balance.
Balance intracompany journals: Posts out-of-balance intracompany journal entries,
which are automatically balanced against a specified intracompany account. Select the
Balance ntracompany Journals check box. Enter the intracompany account(s) in the
ntracompany Accounts window. f you do not select this feature, you can only post
intracompany journal entries that balance by balancing segment, usually the company
segment.
Use budgetary control: Using budgetary control for your Ledger, you can set budgetary
control options for an assigned account range. You can only assign budgetary control
options to account ranges with your functional currency and a budget entry type of
Entered.
Select track rounding differences: Tracks rounding differences in currency conversions.
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Accounting to Financial Reporting
Chapter 2 - Page 66
Ledger Options

Ledger Options
Select Journal Approval: Uses the Journal Approval feature in your Ledger. When
Journal Approval is selected and a journal entry's source requires approval, the journal
must be approved first by the appropriate management level. f Journal Approval is not
selected, approval is not required, even if the journal source requires approval.
Select Journal Entry Tax: Manually enters taxable journal entries in General Ledger.
When you select this feature for a Ledger, the system automatically calculates
associated tax amounts and generates tax journal lines.
Specify Ledger accounts: You must specify a Retained Earnings account when defining
a Ledger. You can set up other special accounts depending on your preferred
functionality.
- Retained Earnings Account: General Ledger posts the net balance of all income
and expense accounts from the prior year to this account when you open the first
period of a fiscal year.
- Suspense Account: f you choose to allow posting of out-of-balance journal entries,
General Ledger automatically posts the difference to this account. f you have
multiple companies or balancing entities within a Ledger, General Ledger
automatically creates a suspense account for each balancing entity.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 67
Ledger Options

Ledger Options
Rounding Differences Account: Specify an account to track rounding differences that
occur during currency conversions. Select this feature if your foreign currency
transactions include different balancing segments to represent multiple companies.
General Ledger automatically creates a rounding differences account for each balancing
segment.
- Cumulative Translation Adjustment Account: f you translate your functional
currency balances into another currency for reporting, r if you revalue foreign
currency-dominated balances, you must specify a translation adjustment account.
- Reserve for Encumbrance Account: Posts the difference of out-of-balance
encumbrance entries.
- Net ncome Account: General Ledger uses this account to capture the net activity
of all revenue and expense accounts when calculating the average balance for
retained earnings.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 68
Linking a Ledger to a Responsibility

Linking a Ledger to a Responsibility
Predefined and Customized Responsibilities
Oracle General Ledger predefines several responsibilities that determine users' access to a
specific Ledger and allows users to run specific programs or perform specific functions.
You can define unique responsibilities that include different reports and functions.
You can assign appropriate responsibilities to users according to their job requirements
and your data security demands.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 69
Sharing a Ledger Across Oracle Applications

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 70
Account Hierarchy Manager

Account Hierarchy Editor
You can use Oracle's Account Hierarchy Manager (AHM) to view and maintain your General
Ledger accounts. With drag-and-drop ease, you can create, maintain, simulate, view, and
print actual and hypothetical account hierarchy structures in a variety of formats.
You can make all changes to the account structure through the Account Hierarchy
Manager. After saving, these changes are automatically reflected in Oracle GL for use in
all reports, windows, and programs.
You can also change reporting structures and hierarchies for comparison purposes by
using AHM in conjunction with Financial Statement Generator (FSG) reports to look at
the financial results for your organization is different ways.
With the Account Hierarchy Manager, you can:
View Accounting Flexfield structure hierarchies
Change hierarchies to reflect organizational changes
Create new parent or child segment values
Copy existing hierarchies to create new ones
Change segment value descriptions using the Modify Node Descriptions window
Save changes to the database
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 71
Security Definitions

Security Definitions
Following is a list of definitions that have this security available:
MassAllocation and MassBudget Formulas
FSG Reports and Components
Accounting Calendars
Transaction Calendars
AutoPost Criteria Sets
AuoReversal Criteria Sets
Budget Organizations
Chart of Accounts Mappings
Consolidatio n Definitions
Consolidatio n Sets
Elimination Sets
Ledgers
Recurring Journals and Budget Formulas
Rate Types
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Accounting to Financial Reporting
Chapter 2 - Page 72
Revaluations
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Accounting to Financial Reporting
Chapter 2 - Page 73
Replacement for Disabled Accounts

Replacement for Disabled Accounts
This feature helps prevent errors due to disabled or end-dated accounts when interfacing data
to General Ledger and creating the accounting in Subledger Accounting. You may designate
an alternate account for your disabled or end-dated accounts. Subledger accounting and
General Ledger then use the alternate account when processing.
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Accounting to Financial Reporting
Chapter 2 - Page 74
Control Accounts

Control Accounts
Control accounts are accounts that can only be used by Oracle subledgers, such as Oracle
Payables, Receivables, and nventory. Control accounts cannot be used to enter manual
entries in GL. By specifying an account as a control account, you can ensure that their
balances are consistent with General Ledger balances for the same account combination.
This allows you better control by ensuring that only the authorized sources are using specific
accounts. This also improves reconciliation because it prevents imbalances from occurring
between the subledger balances and GL balances.

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 75
Account Analysis & Drilldown

Account Analysis & Drilldown
You can view the balances of multiple detail or summary accounts in a single page and drill
down to supporting journal entries and subledger transactions all within a browser window.
You can control the display of your data by choosing from various layouts, specifying your sort
criteria, or defining filters to only retrieve balances that meet your specific conditions. After
fine-tuning your personal search criteria, you can even save the search criteria for future use.
These features give you immediate access to your live general ledger data so that you have
the information you need to make better business decisions.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 76
Accounting and Reporting Sequencing

Accounting and Reporting Sequencing
Sequential numbering supports sequencing requirements in geographies such as Asia, Latin
America, and Europe. Journal Sequencing options include:
Accounting Sequencing: Automatically assigns a sequence number to General Ledger
journal entries that are posted in General Ledger. There's also an option to sequence
subledger journals when they are completed in Subledger Accounting.
Reporting Sequencing: Use to sequence both General Ledger journals and subledger
journals when the General Ledger period is closed. This feature replaces the Accounting
Engine (AX) legal sequencing and Libro Giornale features.
You can assign mutually exclusive sequences based on ledgers or reporting currencies,
journal sources, journal categories, and balance types.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 77
Accounting and Reporting Sequencing Benefits

Accounting and Reporting Sequencing - Benefits
With the journal sequencing options, you meet legal requirements in different geographies,
such as Europe, Asia and Latin America. Fiscal authorities can now easily verify the
completeness of a company's accounting records. You have flexibility in choosing how to
sequence journals based on different criteria. You do not need to worry about localizations.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 78
Agenda

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 79
Subledger Accounting (SLA) Overview

Subledger Accounting (SLA) Overview
All Oracle Applications products use the same:
Set of accounting rules
Posting engine
Design subledger accounting tables
SLA provides standard features that link accounting across multi-transactional business flows:
Automated derivation of accounting information (accounting flexfield, analytical criteria
etc.) from the accounting for prior transaction in the business flow
AP Trial Balance type reporting for any transitory account across accounting flows
SLA provides a common and consistent data model across all subledger applications. Reports
and inquires can be used to extract data from any subledger application. SLA takes
advantage of a common data model to deliver generic extracts of subledger accounting
(including analytical criteria) that you can use with B Publisher (in other words, the extract
contains all the columns associated with a subledger journal journal entry header, line and
associated GL balance). Output from the extracts can be fed into Analytical applications,
external reconciliation and audit tools.
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Accounting to Financial Reporting
Chapter 2 - Page 80
Subledger Accounting

Subledger Accounting
Subledger Accounting is mainly a rule-based accounting engine that centralizes accounting
for Oracle E-Business Suite products, as well as provides an accounting toolset and
repository for third-party applications. t is not a separate product in itself, but is Oracle's
engine catering to the accounting needs of both Oracle and external modules.
Together with ledger support, it enables support of multiple accounting requirements
concurrently in a single instance. Different accounting regulations can be satisfied by
maintaining and applying different sets of rules to different sets of transactions; or accounting
for the same transaction with multiple methods. You can access multiple legal entities and
ledgers when you log into Oracle General Ledger using a single responsibility. This improves
processing efficiency by reducing the need to switch between responsibilities when trying to
access data for different ledgers or legal entities.
By maintaining a full link between the transaction and accounting data, it allows powerful
reconciliation and auditing capabilities. Because it provides the setup and inquiry U and data
model for accounting across modules, it enables consistency in reporting, analysis, and user
experience.
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Accounting to Financial Reporting
Chapter 2 - Page 81
Subledger Accounting Definition

Subledger Accounting Definition
Oracle Subledger Accounting:
Enables corporations to comply with corporate, local and managerial accounting and
audit requirements via increased control, visibility and efficiency.
ncreases control by storing a complete and balanced journal entry for each subledger
transaction and GL date.
Provides detailed drilldown and audit information captured for each journal entry line.
Stores journal entries in a common data model therefore is a single source of truth for all
accounting, reconciliation and analytical reporting.
Stores the articulated balance sheet side of every entry and cross references it to the
business transaction's evidentiary document.
Simplifies business transactions and reconciliation from General Ledger through
Subledgers to the documents.
Facilitates exercising internal control and policy by implementing accounting rules you
define. The rules refer to system data from many sources, and can be tailored very finely
by document type and document line.
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Accounting to Financial Reporting
Chapter 2 - Page 82
Streamlines the close by providing a common posting engine, so that all subledger
products and non-Oracle products can transfer controlled and summarized data to the
General Ledger using a standard methodology and auditable, reviewable process.
mproves efficiency by speeding period close, simplifying business and regulatory
changes and making acquisitions easier
ncreases management visibility by supporting multiple parallel accounting
representations.
Defines and implements corporate accounting policies globally; free from limitations
imposed by local fiscal reporting requirements.
Allows accounting policies to be created once and deployed many times.
Minimizes maintenance and eliminates of duplicate accounting policies
Enables business users to control all aspects of journal entries including debits and
credits; accounting flexfields, descriptions and GL date
Gives you control over the definition of your journal entries. You can define the following
components of journal entries:
- GL Dates
- Entry Descriptions
- Line Descriptions
- Amounts (accounted and gain/loss)
- Accounts: rules can be created for either the entire account combination orfor
individual segments based upon constants or from transaction information
- Journal Lines: side, summarization, type
- Reconciliat ion References
The definition of these components can be based upon information from subledger
applications such as transaction or setup values. Conditions may be used to determine
how and when many of these components are used, and to create defaults. Setups can
be quickly copied and altered to modify seeded definitions. Multi-language support is
available for journal entry descriptions.
For each setup, Oracle Subledger Accounting stores information to determine whether it
was seeded or completed by the user allowing customers to take advantage of upgrades
without worrying about overwriting their customized setups.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 83
Subledger Accounting Engine

Subledger Accounting Engine
Control accounting entries for all entities
Easy definition and maintenance of rules
Drilldown to fully auditable and transparent entries
Simplify account reconciliation
SLA provides SOX-like management of your transaction accounting rules: versioning,
librarianship, auditing, review, clarity. Each event derives it's accounting from its relevant
data, you can assemble and validate the rules in a straightforward manner. t also includes a
set of seeded rules as well.
Rather than generating balanced entries during the posting process, as some products do, all
bookkeeping is balanced first, and schedules supporting such control accounts as
Receivables, Payables and nventory are produced automatically, greatly facilitating
reconciliation.
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Accounting to Financial Reporting
Chapter 2 - Page 84
Agenda

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 85
Simultaneous Opening and Closing of Periods

Simultaneous Opening and Closing of Periods
Responsibility: System Administrator
Navigation: Concurrent > Requests > (B) Submit a New Request > Choose Open Period
You can open and close periods across multiple ledgers simultaneously by using Ledger Sets.
You can submit open and close processes from the Concurrent Manager or the Submit
Request form. When specifying the open or close program, you can specify a ledger to
have the periods for all ledgers in the ledger set be opened or closed.
You can use a gapless close period program, which allows you to specify a target period
to close. Any open periods between the last closed period and the target period are
closed
You can use the Permanently Close Period program to permanently close a period. Note
that to permanently close a period, the period's status must be closed
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 86
Simultaneous Year-End Closing Journals

Simultaneous Year-End Closing Journals
Responsibility: System Administrator
Navigation: Concurrent > Requests > (B) Submit a New Request > Close Process -
Create ncome Statement Closing Journals
Navigation: Concurrent > Requests > (B) Submit a New Request > Close Process -
Create Balance Sheet Closing Journals
Through the use of ledger sets, you can run the two closing journals programs for one or more
ledgers simultaneously.
Run the ncome Statement Closing Journals program to transfer year-end revenue and
expense accounts to the Retained Earnings account for multiple ledgers in a single
submission.
Run the Balance Sheet Closing Journals program to close out the YTD balances of
balance sheet accounts across multiple ledgers at once.
Data Access Set security ensures that only users with full read and write access to ledgers
can successfully submit the programs.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 87
Simultaneous Currency Translation

Simultaneous Currency Translation
Navigation: Currency: Translation
Another feature you can leverage through the use of Ledger Sets is Translation, which allows
you to translate balances for multiple ledgers simultaneously. You can do this through the
Translate balances form or by submitting the Translation program from the Submit Request
form. This allows you to more efficiently schedule your translation process during your critical
close.

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 88
Financial Reporting Across Ledgers

Financial Reporting Across Ledgers
Navigation: Reports : Request : Financial -> ndividual Reports
From the Run ndividual Reports form you can specify a single ledger or a ledger set at
runtime when generating FSG reports. To leverage the use of ledger sets with FSG reports,
you must define a ledger set with a default ledger assigned. Running standard reports with
ledger sets does not require a default ledger be assigned to the ledger set. When you submit
your FSG or standard report request, specify the ledger set and a separate report will be run
for each ledger in the ledger set. You can also run reports in the Single Request Submission
(SRS) form.
Navigation: Concurrent : Request : (submit a new request) Program - Run Financial
Statement Generator
The parameters for the Run Financial Statement Generator program that you submit from the
Submit Request form are the same as in the Run ndividual Reports . You can specify a single
ledger or a ledger set when submitting FSG reports from the Submit Request form.

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Accounting to Financial Reporting
Chapter 2 - Page 89
Agenda

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 90
Performing Journal Entry Functions

Performing Journal Entry Functions
Using Oracle General Ledger, Oracle subledgers, and Oracle Web AD, you can perform the
following journal entry functions:
Create journal entries in Oracle General Ledger or use Web AD to enter journals from a
spreadsheet
mport journal entries
Post journal entries
nquire on account information and journal entries
Drill down to subledgers
Run reports
Reverse journal entries
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Accounting to Financial Reporting
Chapter 2 - Page 91
Types of Journal Entries

Types of Journal Entries
Within Oracle General Ledger, you can work with the following types of journal entries:
Manual Journal Entries: The basic journal entry type is used for most accounting
transactions. Examples include adjustments and reclassifications.
Reversing Journal Entries: Reversing journal entries are created by reversing an existing
journal entry. You can reverse any journal entry and post it to the current or any future
open accounting period.
Recurring Journal Entries: Recurring journal entries are defined once, then are repeated
for each subsequent accounting period you generate. You can use recurring journal
entries to define automatic consolidating and eliminating entries. Examples include
intercompany debt, bad debt expense, and periodic accruals.
MassAllocations: MassAllocations are journal entries that utilize a single journal entry
formula to allocate balances across a group of cost centers, departments, divisions or
other segments. Examples include rent expense allocated by headcount or
administrative costs allocated by machine labor hours.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 92
Journal Creation Methods

Journal Creation Methods
You can create journal entries using different methods in Oracle General Ledger.
Method Organization Need Procedure
Manual Journal Create adjusting journal Enter debits/ credits entries
and accruals manually
Reversing Entries Reverse errors and revaluation Reverse encumbrances and
accruals of preexisting journals
Recurring Entries Create journals using fixed Create journals using skeleton,
variable amounts and standard, or formula template
complex formulas and with the
same or similar information.
MassAllocations Allocate from one account to Calculate journals using an
many using a single formula allocation formula
Journal mport ntegrate Oracle GL mport journal entry information
with other applications from feeder systems
Journal Wizard ntegrate Oracle GL Upload journal entries from an
for journal creation an Excel spreadsheet
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 93
Automatic Journal Copy

Automatic Journal Copy
You can copy:
Entire journal batches
Journal batches with any status
The system creates a new journal batch containing the same journal entries.You can also
change the batch name, period, and/or effective date while copying the journal batch. After
copying the journal batch, you can modify the unposted journals in the same manner as any
manually created journals.
Benefits of automatic journal copy include:
ncreased Journal Entry Speed: Quickly create new journals by copying an existing one
Reduced Data Entry Errors: Reduce errors caused by having to manually enter new
journals from scratch
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 94
ntegrated Web-based Spreadsheet nterface

Integrated Web-based Spreadsheet Interface
Through the integration with Web AD (Application Desktop ntegrator), you can leverage
spreadsheet functionality in Oracle General Ledger via a web-based interface. Launch the
spreadsheet interface from a General Ledger responsibility.
Using the Journal Wizard, you leverage spreadsheet functionality to create actual, budget, or
encumbrance journals. You can take advantage of spreadsheet data entry shortcuts such as
copying and pasting or dragging and dropping ranges of cells, or even using formulas to
calculate journal line amounts. You can then upload your journals to Oracle General Ledger.
Before uploading, you can save and distribute your journal worksheets for approval. You can
also import data from text files into spreadsheets, where it can be further modified before
uploading to Oracle. This functionality is useful when migrating data from legacy systems, or
from any source that can produce delimited files.
Using the Budget Wizard, you can download budget amounts to a spreadsheet, modify the
amounts, and then upload them back. You can also choose to download the actual amounts
to compare it with the budget amount. Budget Wizard also allows you to plot graphs and do a
graphical comparison on the amounts. Budget Wizard also provides budget notes. You can
add descriptions to accounts and amounts in your budget and explain your budget within the
budget worksheet, avoiding the clutter of external documentation.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 95
ntegrated Web-based Spreadsheet nterface Benefits

Integrated Web-based Spreadsheet Interface - Benefits
You can use all the features in Excel to create journals or enter budgets. You can customize
layouts to configure the information you want displayed in your spreadsheet. Spreadsheets
can be saved to the desktop, worked on when not connected to the network, and uploaded to
Oracle Applications when back on the network. n addition, spreadsheet data can be easily
saved and redistributed, making it easier to share and review work. You can also enter
recurring journal entries by saving a journal worksheet, then uploading it whenever
appropriate, such as every month.
Another benefit is reduced costs. Because users are already familiar with Excel, you can
reduce training costs because they never need to leave their desktop environment to enter
journals or budgets. You can also keep T costs down because Web AD is centrally deploy
and managed over the web. You do not have to install any client/server applications.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 96
Journal Components

Journal Components
You create a batch of journal entries by entering a batch name and optionally, a control total
and description. f you do not enter batch information, Oracle General Ledger automatically
creates one batch for each journal entry, defaulting the name and the latest open period. f
you do not enter a batch name, you must recall the journal entry by date. Batch information is
stored in the GL_JE_BATCHES table.
Note that most companies use standard naming conventions for batches and journals to
easily identify who entered the journal and the purpose of the journal entries. An example
would be: Accrual <nitials of the person who entered the journal> today's date.
Journal Header nformation dentifies common details for a single journal entry, such as name,
effective date, source, category, currency, description, and control total. You group all lines
sharing the same currency and category into journal entries. f no journal entry-level
information is entered, Oracle General Ledger assigns a default name, category, and the
functional currency. Header information is stored in the GL_JE_HEADERS table.
Journal Line nformation Journal lines specify the accounting information for the journal entry.
Total debits must equal total credits for a journal entry for all journal entries except budget
journal entries and statistical journal entries. You can optionally enter description for each
line. nformation for journal entry lines is stored in the GL_JE_LNES table.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 97
Grouping Journals into Batches

Grouping Journals into Batches
You can enter a journal directly without creating a batch by selecting New Journal in the Find
Journals window. A batch name is created using the source combined with a batch D and
system date as in Manual <BatchD><Date>.
You can enter journals only in a current or future enterable accounting period.
Note that if you enter a period prior to the current accounting period and the user profile
Journals: Enable Prior Period Notification is set to Yes, General Ledger displays a
message indicating that you are entering a prior period journal.
f you post one journal entry, the entire batch posts.
When using the reversing functionality, you can choose to reverse all the entries in a
batch or just one journal.
You can post journal entries with unbalanced debits and credits if Suspense posting is
selected. The difference is posted to the suspense account. f suspense posing is not
selected, you cannot post an unbalanced journal entry except for statistical or budget
entries which do not have to be balanced to post.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 98
Manual Journal Entries

Manual Journal Entries
Functional currency The default currency when you open the Enter Journals window.
Foreign currency journal entries
- Specify the currency.
- Enter conversion type: Spot, Corporate, User (enter a conversion rate), or other
defined type.
- Conversion date must be within the accounting period defined for the journal entry.
Statistical Journal Entries: To enter a statistical journal entry, select STAT as the
currency for the journal entry. Statistical journal entries can be "one-sided" entries. The
debits do not need to equal credits for the journals to post.
Combined Currency and Statistical Amounts: You can enter a statistical journal entry by
itself or combined with currency journal amounts. Set the Journals: Mix Statistical and
Monetary profile option to Yes. Define a statistical unit of measure for any natural
account segment values you want to combine statistical and monetary journal entries.
When entering the journal lines, use debit and credit amounts for any monetary
currency. n the Statistical Amounts region, enter the statistical quantity.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 99
ntercompany/ntracompany Journal Entries: Enter the intercompany transaction.
General Ledger automatically creates the balancing intercompany journal lines based on
the accounts you defined in the ntercompany Accounts window.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 100
Performing Additional Journal Actions

Performing Additional Journal Actions
Reverse Journal: You can reverse a journal entry or batch. Select a reversal period if
prompted. Select the reversal method: Switch Debit/Credit or Change Sign.
Change Period: Select this button to change the period of any entry.
Post: Select this button to launch the concurrent process to post a manual journal entry
and update account balances. Posting is available only if the profile option Journals:
Allow Posting During Journal Entry is set to Yes.
Note: You can also post journal entries by navigating to the Post Journals window.
(N) Journals > Post
Funds Action: f you select budgetary control for a Ledger, you have the following
additional actions available for manual journal entries:
- Check funds
- Reserve funds
- View results
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 101
Posting Journals

Posting Journals
Batch Posting: Navigate to the Post Journals window to post a group of journal batches.
(N) Journals > Post
Manual Posting: Click Post from either the Journals window or the Batch window to post a
journal batch at the time of entry, if the profile option Journals: Allow Posting During Journal
Entry has been set to Yes. When you post journals, Oracle General Ledger posts all journals
in a batch. You cannot post individual journal entries in a batch.
(N) Journals > Enter
Automatic Posting: Run the AutoPost program to post journal batches automatically based on
a schedule you define.
(N) Setup > Journals > AutoPost
Posting Journal Batches
You can post actual, budget, and encumbrance journal batches. The Posting Status for the
batch must be Postable and the Period Status must be Open for the following balance types:
Actual: Open period
Budget: Periods in an open budget year
Encumbrance: Any period up to the last period in the latest encumbrance year
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 102
f applicable, check the Control Total for the journal entry batch. General Ledger does not post
journal batches if the total entered debits do not match the control total for the batch.
Correcting Batch Posting Errors
Review the batch to identify the posting error. Common explanations for unpostable batches
include control total violations, posting to unopened periods, and unbalanced journal entries.
Correct the specific error and post the batch. The posting status could be:
Unposted
Pending
Processing
Selected for posting
Posted
Error
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 103
Posting to a Prior Period

Posting to a Prior Period
You can post journal entries to a prior accounting period and to a prior fiscal year, as long as
the prior period is open. When you post to a prior period, General Ledger automatically
updates the beginning balances of all subsequent periods even if the period is closed. n
addition, if you post a journal entry into a prior year, General Ledger adjusts your retained
earnings balance for the effect on your income and expense accounts. When you finalize your
activity for an accounting period, simply close the period to prevent the entry or posting of
additional journal entries.
Displaying Warning Messages
You can require General Ledger to display a message whenever you try to enter a prior period
journal so you do not accidentally enter a journal for a prior period. Have your system
administrator set the profile option Journals: Enable Prior Period Notification to Yes. Having
many accounting periods open affects the time required to run the posting program.
Therefore, keep the number of open accounting periods to a minimum. Minimize the number
of open periods to prevent errors in posting to an incorrect period. Run a Trial Balance Report
whenever you post to a previous fiscal year to ensure that your Retained Earnings account is
properly reconciled.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 104
Automatic Posting

Automatic Posting
To facilitate journal batch posting, you can schedule automatic posting based on parameters
you specify. You can define multiple criteria sets that include a range of journal effective
dates and multiple AutoPost priorities. For example, suppose after running Journal mport, you
routinely post journal entries from Payables to record your payments. To automate posting
these batches, you can define a set of criteria to select all unposted journal entries with a
source of Payables, a category of Payments, and a balance type of Actual for all periods. You
can then schedule the AutoPost program to run at the beginning of each week. Oracle
General Ledger automatically selects and posts your Payables payment batches to update
your cash balances.
Automatic Posting allows you to share AutoPost Criteria Sets across multiple ledgers that
share the same chart of accounts, calendar, and period type. This allows you to reuse a single
AutoPost definition to post journals for multiple ledgers. n the same manner, AutoReversal
allows you to share AutoReversal Criteria Sets across multiple ledgers. This allows you to
reuse a single AutoReversal definition to reverse or to reverse and post journals for multiple
ledgers.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 105
Performing Online nquiries for Accounts and Journal Entries

Performing Online Inquiries for Accounts and Journal Entries
Oracle General Ledger provides three windows to view detail and summary information for
your account balances, journal entries, and subledger accounting transactions:
Account nquiry
Journal nquiry
Journal Enter
Whether you start in the Journals window or the Account nquiry window, you can take
advantage of the graphical view of underlying accounting information for your transactions by
accessing the T Account and Activity Summary windows. You can also drilldown to see the
subledger transactions that created the journal entries through SLA.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 106
Reversing Journal Entries

Reversing Journal Entries
You can create reversing journal entries to reverse accruals, estimates, temporary
adjustments, and reclassifications, or correct errors. You can reverse a journal entry in two
ways:
Switch Dr/Cr: Journal entry is reversed by switching the debit and credit amounts.
Change Sign: Journal entry is reversed by changing the original journal amounts from
positive to negative.
You can reverse a journal entry in any period after the journal entry is posted. You control
which responsibility can reverse journal entries directly from the Enter Journals or Enter
Encumbrance window by excluding the function called Enter Journals: Reverse from the
responsibility's menu.
Reversing Journal Batches
You can reverse a single journal entry or an entire batch of journal entries. When you reverse
a batch, General Ledger creates a reversing batch with a reversing journal entry for each
journal entry in the original batch. General Ledger uses the reversal method assigned to the
journal category in the Journal Reversal Criteria window.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 107
Creating Reversing Journals

Creating Reversing Journals
You have two options for manually selecting journal entries for reversal:
Create the reversal immediately
Enter the period and generate the reversal later.
Use the Reverse Batch button to immediately reverse any posted or unposted journal entry or
batch in the current period or future enterable period.
(N) Journals > Enter (B) Reverse Batch
Use the Reverse Batch window to define a reversal period for a journal entry. Then, select
the journal entry at a later time, to be reversed in the Reverse Journals window.
(N) Journals > Enter (B) Review Journal (B) Reverse
Use the Reverse Journals window to generate reversal journals with a predefined reversal
period, such as monthly accruals, that need to be reversed at the beginning of the following
period.
(N) Journals > Generate > Reversal
Note that if you click Reversal, the reversing journal will be created immediately.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 108
Reversing Journals Automatically

Reversing Journals Automatically
f you routinely generate and post large numbers of reversing journal entries as part of your
monthly procedures for closing and opening accounting periods, you can use the Automatic
Journal Reversal feature to save time and automate the process. This feature automatically
reverses your previous month's accrual journal entries and automatically post them, if desired.
Select AutoReverse, and optionally, AutoPost Reversal options for journal categories.
Enter journals using categories with AutoReverse selected.
Launch the Automatic Reversal program either by:
Submitting a request from the Submit Request window to run the Automatic Reversal
program for all journals that meet the submission requirements.
Setting the profile option, GL: Launch AutoReverse After Open Period, to Yes. When
you open the next period, the AutoReverse program finds all journal entries that have
categories with AutoReverse and, optionally AutoPost, selected. t creates reversing
journal entries and, optionally, posts them.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 109
Journal Reversal Criteria

Journal Reversal Criteria
(N) Setup > Journal > AutoReverse
When you define journal categories, you can specify journal reversal criteria for controlling
when and how your journal entries are reversed. After saving these criteria for a category,
General Ledger automatically selects all journal entries that match the criteria for reversal.
You may change the following journal reversal criteria assigned to a category at any time.
Reversal method: Select Switch Dr/Cr or Change Sign
Reversal period rule: Select a rule to determine which period to create the reversing
journal entry. Choose the reversal date if the Ledger is using Average Daily Balances
feature.
- No default: Assigns the period you define when you manually enter your original
journal entry
- Same Period: Assigns the same period of the original journal entry
- Next Period: Assigns the period following the period of the original journal entry
- Next Non-adjusting: Assigns the non-adjusting period following the period of the
original journal entry
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 110
- Next Day: Assigns the day that follows the original journal entry day. This appears
in the list of values only if average balance processing is selected for the Ledger.
For more information, refer to the Oracle General Ledger User Guide or R12
General Ledger Financial Management Advanced Topic Average Balance
Processing.
Select AutoReverse check box: To mark all journals using this category to auto reverse.
Select AutoPost Reversal check box: Use in conjunction with the AutoReverse checkbox
to post the journal after reversal. For example, to automatically reverse your previous
month's accrual journal entries, assign the following journal reversal criteria:
- Category: Accrual
- Method: Switch Dr/Cr
- Reversal Period: Next Period
- Select the AutoReverse check box
- Select the AutoPost Reversal check box

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 111
Journal Reversal Criteria

Journal Reversal Criteria
To submit a request to automatically reverse journals, select one of the following options to
automatically reverse qualified journal entries:
Run the Open Period program to launch the Automatic Reversal program. Note that if
you do not want reversals to be generated when a period is opened, set the Profile
Option, GL: Launch AutoReverse After Open Period, to No.
Navigate to the Submit Requests window. Run the Automatic Reversal program.
(N) Reports > Request > Standard
All reversal journal entries with AutoReverse and AutoPost selected are generated and posted
according to the reversal criteria that you define. The Automatic Reversal program reverses
only journal entries with a balance type of Actual. You cannot use this program to reverse
Budget or Encumbrance type journal entries. Budget and encumbrance journal entries must
be manually reversed.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 112
Journal Reversal Benefits

Journal Reversal Benefits
You can no longer reverse journals from frozen sources defined in the journal sources form.
f the journal is created from a frozen source, the journal cannot be modified even if the source
is subsequently unfrozen in the future.
This provides streamlined data reconciliation with subsystems. Not being able to reverse
journals that originated in subledgers ensures that the account balances will always agree
with General Ledger. f you need to reverse a subledger journal, then you should do so in
Subledger Accounting or the subledger application.
You also can no longer reverse unposted journals. This ensures data integrity and better
auditability. n the past, there was a risk that the original journal could be deleted so you could
end up reversing something that didn't exist. Now, all reversals can be tied back to the original
posted journal.

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 113
Recurring Journals

Recurring Journals
You can also create recurring journals using foreign currencies. This is useful if you need to
create foreign currency journals that are recurring. For example, assume a subsidiary that
uses a different currency from its parent borrows money from the parent. The subsidiary can
now generate a recurring entry to record monthly interest payable to the parent company in
the parent's currency.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 114
Recurring Journal Types

Recurring Journal Types
Skeleton Journals
Skeleton journals have varying amounts in each accounting period. You define a
recurring journal entry without amounts, then enter the appropriate amounts each
accounting period.
There are no formulas to enter, only account combinations.
For example, you can record temporary labor expense in the same account combination
every month with varying amounts due to fluctuations in hours.
Standard Journals
Standard journals use fixed account combinations and amounts each accounting period.
You enter a journal using constants.
For example, record monthly auto lease expenses with constant amounts charged to the
same account.
Formula Journals
A formula entry is a recurring entry that uses formulas instead of amounts to calculate
amounts.
For example, calculate rent expense based on end-of-month headcounts.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 115
Formula Recurring Journals

Formula Recurring Journals
When creating Formula Recurring Journals, create a formula for each journal line. Each
formula can contain an unlimited number of steps. The steps can use any combination of
amounts, account balances, and/or operators. The operators that can be used are:
Enter: To enter the amount or balance from the account listed in the appropriate
account.
Add: To add the amount or account balance in the previous line to this line.
Subtract: To subtract the amount or account balance in the previous line from this line.
Multiply: To multiply the last amount or account balance by the number entered on this
line.
Divide: To divide the last amount or account balance by the number entered on this line.
Note: f the formula yields a positive amount, your account will be debited. f your formula
yields a negative amount, your account will be credited.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 116
MassAllocations

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 117
MassAllocations versus Recurring Journals



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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 118
Journal Line Reconciliation

Journal Line Reconciliation
With this feature, you can automatically reconcile journal lines that should net to zero, such as
suspense accounts, or payroll and tax payable accounts in countries like Norway, Germany,
or France. You can selectively cross-reference transactions in General Ledger with each other
by entering reconciliation reference information at the journal line level. When the balance for
a group of journals is zero, the journals can be automatically marked as reconciled.
Using Journal Line Reconciliation results in faster close cycles because it eliminates the need
to perform manual reconciliations. No country-specific localizations are needed.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 119
Agenda

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 120
Budgeting

Budgeting
Budgeting in Oracle General Ledger (GL)
Create an unlimited number of budgets or forecasts.
Control user access to budgets.
Create budget organizations to mirror the various levels of your company's organization
and to control user access to the budget information.
Create master-detail budgets.
Budgeting with Applications Desktop ntegrator (Web AD)
Enter budget amounts in the familiarity of a spreadsheet, then upload your budget data
to General Ledger.
Downloads both budget or actual amounts and use to calculating new budget amounts,
then be upload the new budget amounts into Oracle General Ledger.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 121
Budgets

Budgets
Budgets help you manage your business by projecting revenues and expenses by:
Estimating account balances for a specified range of periods
Comparing estimated amounts with actual balances and determine variances O
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 122
Anatomy of a Budget

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 123
Available Methods

Available Methods
Oracle General Ledger provides a variety of tools to create, maintain, and track your budgets:
Upload budget amounts from an Excel spreadsheet.
Create an unlimited number of budgets or forecasts.
Control user access to budgets.
Create budget organizations to mirror the levels of your company's organization and to
control user access to budget information.
Structure your budget into an unlimited number of levels.
Create master-detail budgets.
The following applications can be used:
- Manual budgets created in the Oracle General Ledger Application
- Uploaded budgets created in the Web AD Budget Wizard
- Uploaded budgets from non Oracle systems or applications
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 124
Multiple Versions

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 125
Define Budget Organizations

Define Budget Organizations
Through budgeting hierarchies, you can control budgeting authority and easily identify
budgets that exceed control limits. You can also perform top down budgeting and identify
where the discrepancies are.
Contain ranges of accounts that make up the budget.
Represent departments, cost centers, divisions, or other groups for which you enter and
maintain budget data.
Choose from the following options:
- ALL budget organization
- Password to restrict access
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 126
Entry Methods

Entry Methods
Enter Budget Amounts Use a quick, manual approach for adjustments. Use budget
rules to base amounts on prior actuals or budgets.
Enter Budget Journals Create an audit trail of amounts entered.
Use the Web AD Budget Wizard Create a new budget in an Excel spreadsheet or
download an existing budget to an Excel spreadsheet for modification, and then upload
the revised budget to Oracle General Ledger.
Upload Budgets Upload budget data from an external source.
Create Budget Formulas Create standard or formula recurring entries. Use this for
complex allocations.
Create MassBudget Journals Quickly create budget allocation entries from a single
formula to match your actual allocations.
Transfer Budget Amounts Transfer fixed amounts or a portion of a budget balance from
one account to another.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 127
Creating Journals

Creating Journals
When you define a budget, you choose whether to require budget journals for your budget. f
you select the Require Budget Journals flag for your Ledger, this option will already be
selected and cannot be changed. When you require budget journals, you can only use budget
entry methods that create journals, namely budget journals, MassBudgets, budget transfers,
consolidation of budget balances, and the Web AD Journal Wizard.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 128
Loading with Web AD

Loading with Web ADI
Web AD includes the Budget Wizard and Journal Wizard to simplify your budgeting work with
Oracle General Ledger.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 129
Budget Wizard: Overview

Budget Wizard: Overview
Use the Budget Wizard within Oracle General Ledger's Web AD to automatically build a
budget spreadsheet based on the budgets and budget organizations you set up within Oracle
General Ledger.
The Budget Wizard provides an Excel spreadsheet-based budget entry screen which
facilitates simple data entry and modeling in a disconnected environment.
With the Budget Wizard, you can
Download existing budget balances from Oracle General Ledger or create a new budget.
Enter your new budget balances manually, or use formulas and models.
Automatically graph your budgets and compare budget and actual balances using a
variety of graph styles.
Save a budget spreadsheet on your PC and work on it at any time, including using it for
future years.
When you are satisfied with your budget, you can automatically upload your new budget
balances into Oracle General Ledger.
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Accounting to Financial Reporting
Chapter 2 - Page 130
Agenda

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 131
Foreign Currency Concepts

Foreign Currency Concepts
Conversion: Conversion refers to foreign currency transactions that are immediately
converted at the time of entry to the functional currency of the Ledger in which the
transaction takes place.
Revaluation: Revaluation adjusts asset or liability accounts that may be materially
understated or overstated at the end of a period due to a significant fluctuation in the
exchange rate between the time the transaction was entered and the end of the period.
Translation: Translation restates an entire Ledger or balances for a company from the
functional currency to a foreign currency.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 132
Conversion

Conversion
You can enter foreign currency journal entries directly in the Enter Journals window or you can
enter foreign currency journals in a Microsoft Excel worksheet created in the Journal Wizard
and take advantage of the spreadsheet's functionality. f you specify a foreign currency,
conversion date, and conversion rate type when entering journals, General Ledger
automatically displays the daily rate. Daily rates are defined to convert the entered foreign
currency to your functional currency for the specified date and rate type. General Ledger
calculates functional debit and credit equivalents by multiplying the debits and credits entered
in a foreign currency by the retrieved daily rate.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 133
Conversion Example

Conversion Example
Conversion uses a daily rate that you enter at the time of journal entry or that is derived from
the rates that have been entered in the Daily Rates table in Oracle General Ledger. When you
post foreign currency transactions, Oracle General Ledger maintains a separate balance for
accounts entered in a foreign currency and their equivalent balances in the functional
currency. Through the conversion functionality, you can:
Segregate portions of an account balance by the different currencies used in each
transaction.
Specifically identify the source currencies of transactions, a key component of
performing proper revaluation of the balance.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 134
Revaluation

Revaluation
You revalue balance sheet account balances denominated in a foreign currency to reflect the
change in the foreign currency rate from the date a transaction is entered and the reporting
date in compliance with SFAS 52 (U.S.).
Example:
The value of the receivable in Euro never changed. The original receivable transaction
was entered in Euro and converted to 550 U.S. Dollars.
Upon revaluation, the exchange rate changed. The original receivable still stands at
1000 Euro. The converted amount changes to 600 U.S. Dollars. The difference, 50 U.S.
Dollars is posted to the Unrealized Gain/Loss Account.
At the beginning of the following period, the revaluation journal is reversed.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 135
Revaluation Example

Revaluation Example
At the end of the accounting period, the revaluation process creates an unposted journal to
record the change in the converted balances to the Unrealized Gain/Loss Account. The
journal is posted and then reversed at the beginning of the next reporting period.
n this example:
The original journal amount entered in Euro remains the same.
At period end, the exchange rate has changed to .81 US Dollars.
The receivable is still 10,000 Euro, but is now $8,100 US Dollars.
The offset of $100 US Dollars is recorded in the Unrealized Gain account.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 136
Translation

Translation
Translate actual and budget balances from functional currency to foreign currencies for online
inquiries, reports, and consolidations. For average balance processing, you can translate
average balances and standard balances. Run translation after completing all journal activity
for an accounting period. f you post additional journal entries or change your translation rates
after running translation for a period, you must retranslate.
Note: f you change the account segment value's account type and retranslate your actual
account balances, you must reenter or change the period end and period average exchange
rates for the periods that you want to retranslate.
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Accounting to Financial Reporting
Chapter 2 - Page 137
Translation Rates

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 138
Currency Rates Manager Description

Currency Rates Manager Description
The Currency Rates Manager is a tool that allows you to easily manage your daily and
historical rates inside a new interface.
The Currency Rates Manager benefits global companies that maintain multiple currencies and
conversion rates by:
Helping to maintain consistency among different currency conversion rates.
Minimizing intercompany imbalances that could occur during intercompany eliminations
of foreign currency transactions due to exchange rate differences.
Easing the maintenance of daily rates and historical rates by providing a spreadsheet
interface.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 139
Currency Rates Manager Features

Currency Rates Manager Features
When maintaining Daily Rates, you can automatically upload daily rates from a spreadsheet
or manage daily rates within the web-based interface to quickly upload multiple rates at once.
You can even use cross rate rules to automatically calculate the cross rates between 2 or
more currencies. Cross rate rules use pivot currencies and contra currencies. A pivot currency
is the central currency used in a cross rate rule definition. Contra currencies are additional
currencies that have a rate relationship with the pivot currency.
For example, if you assign a pivot currency of USD with contra currencies of EUR and Yen,
when you define rates for any two currencies, such as USD to Euros and USD to Yen, the
Cross Rate Rules will automatically calculate the rate between Euros and Yen and the
inverse, Yen to Euros. This helps maintain consistency between different currency
combinations and reduces having to create every currency combination manually.
For Historical Rates, you can both upload and download historical rates via a spreadsheet
interface.
Added security is provided to ensure that historical rates are only uploaded to open periods.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 140
Currency Rates Manager Benefits

Currency Rates Manager Benefits
One of the benefits of using Currency Rates Manager is its easy-to-use interface. The web-
based interface provides a browser look-and-feel, while the spreadsheet interface allows you
to manipulate conversion rates within a familiar desktop environment. The spreadsheet
interface allows you to quickly upload a large volume of daily and historical rates more
efficiently. The ability to download historical rates to a spreadsheet enables you to modify the
rates, if necessary, and copy them from one Ledger to another for ease of maintenance.
Cross Rate Rules enforce consistency across currency rates. Because Cross Rate Rules
automatically calculate the cross rates between two or more currencies, it reduces the
likelihood of currency rate discrepancies. This ensures that intercompany transactions across
multiple currencies are accounted for with consistent rates, minimizing the effect of exchange
rate differences.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 141
Cross-Ledger and Foreign Currency Allocations

Cross-Ledger and Foreign Currency Allocations
A single responsibility can access data for multiple ledgers. MassAllocations allows you to
create cross-ledger allocations where the data from one or more source ledgers can be
allocated to one or more target ledgers. One example of this is allocating corporate or regional
expenses to local subsidiaries when each subsidiary has its own ledger.
You can also create allocations in foreign currencies. When specifying the calculation lines,
you can also choose different currency options. One currency option is to allocate existing
converted amounts for the foreign currency balance. The second option is to calculate the
converted amount for allocation based on a rate type provided.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 142
Cross-Ledger and Foreign Currency Allocations Benefits

Cross-Ledger and Foreign Currency Allocations Benefits
You can save time by creating a single allocation definition that can be executed for multiple
ledgers instead of creating a different allocation for each ledger individually.
You have flexibility when defining MassAllocations. You can allocate amounts across different
ledgers. You also have flexibility when allocating foreign currency amounts because you can
select the treatment for converted amounts. These features allow you to manage your
allocation process across your entire enterprise rather than according to your accounting
setup.

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 143
Entered Currency Reporting and Analysis

Entered Currency Reporting and Analysis
Entered ledger currency balances are tracked separately from the foreign entered and
converted balances. You can use the entered ledger currency amounts for viewing balances
for the purposes of currency valuation and hedging.
FSG reporting
Navigation: Reports > Request > Standard, Submit the request called Program - Publish
FSG Report
Online account inquiry
Navigation: nquiry > Account
Recurring Journals
Navigation: Journals : Define > Recurring
Mass Allocations
Navigation: Journals : Define > Allocation
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 144
Entered Currency Reporting and Analysis

Entered Currency Reporting and Analysis
Example: Assume a ledger and the ledger currency is USD.
Two journals are entered and posted; one in 1,000 US Dollars, and another in 500 British
Pounds that gets converted to 1200 US Dollars. You can view the 1000 USD by performing an
account inquiry on the Cash account for balances entered only in the ledger currency. The
amounts entered in foreign currencies that were converted to the ledger currency are not
included in the balance. You can still retrieve all balances in USD, both the entered as well
and the converted.
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Accounting to Financial Reporting
Chapter 2 - Page 145
Entered Currency Reporting and Analysis Benefits

Entered Currency Reporting and Analysis Benefits
You have better information about your currency to perform currency valuations and hedging.
You also have flexibility in creating allocations because you can allocate amounts based on
entered ledger currency balances instead of only total ledger currency balances.
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Accounting to Financial Reporting
Chapter 2 - Page 146
Agenda

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 147
Consolidations

Consolidations
The consolidation process combines the financial results of different companies, typically
combining subsidiary accounting information into a parent company for reporting purposes.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 148
Consolidating Data in Multiple nstances

Consolidating Data in Multiple Instances
For companies that do not share the same instance, you can revalue and translate subsidiary
amounts to normalize the currency to the parent's functional currency, run a trial balance in
the subsidiary Ledger and use the trial balance to create journal entries in a spreadsheet, and
use the Web AD Journal Wizard to upload the journal entry created in the spreadsheet data
to a dummy Ledger defined in the parent company's instance. Note that you define and match
the structure of the dummy Ledger like any other Ledger.
As an alternative to the Web AD extract, you can also use SQL*Plus, load the flat file
contents into the GL_NTERFACE table, and then upload the data into the GCS instance
using journal import. This method requires support from your MS department. After you have
all the data in a single instance, you can use GCS to map accounts from your dummy Ledger
to your parent Ledger, transfer data, create eliminating entries, and consolidate results. Note
that the same concepts apply for non-Oracle nstances. f you have subsidiary data using
non-Oracle systems, you can map and load the data through Web AD or SQL*Plus into the
GL nterface table.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 149
Consolidation Workbench

Consolidation Workbench
The Consolidation Workbench provides feedback on the state of the consolidation process,
keeping you informed about each subsidiary's consolidation status. t also monitors subsidiary
account balances for any changes that occur after the subsidiary data has been transferred to
your parent Ledger.
Consolidation Sets You can even create consolidation sets which launch multiple
consolidations in a single step for overall streamlining of the consolidation process.
Consolidation Hierarchies You can create consolidation hierarchies, or multilevel
hierarchies and view your consolidation hierarchies using a graphical Consolidation
Hierarchy Viewer.
State Controller From the Consolidation Workbench you can access the State Controller,
a color-coded navigation tool, to guide you through the consolidation.
Find Consolidation Processes window This works with the Consolidation Workbench to
help you find consolidation and elimination processes. t refreshes data displayed in the
Consolidation Workbench. When you generate, post, or reverse consolidation journals,
click Find in this window to refresh the data displayed or you can do a View > Find All
from the menu bar.
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Accounting to Financial Reporting
Chapter 2 - Page 150
Consolidation Workbench

Consolidation Workbench
(N) Consolidation > Workbench
Enter a query in the Find Consolidation Processes window. The Consolidation Workbench
displays the results. To narrow the search for a consolidation process, enter search criteria in
as many of the following fields as you like:
Parent: Parent Ledger
Parent Period: Consolidation period
Balance Type: Actual, Balance, or Any
Mapping Set: Group of mappings
Mapping: Single mapping
Subsidiary: Subsidiary Ledger
Status: Consolidation status
Elimination Set: Fully reciprocal elimination entries
Elimination Status: List of eleven different status of eliminations
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Accounting to Financial Reporting
Chapter 2 - Page 151
Consolidation Mapping

Consolidation Mapping
(N) Consolidation > Define > Mapping
Select a Consolidation Method Run the consolidation to create consolidation journal
entries in the parent Ledger.
Select Balances This consolidates actual, average, translated, budget, or statistical
balances, excluding journal entry detail, and balances from your subsidiaries' summary
accounts. The resulting consolidation journal entries includes the account balances for
all the subsidiaries that were run. For example, if a subsidiary had five transactions in
the sales account balance, the consolidation journal entry includes only the balance of
the sales account.
Select Transactions This consolidates actual journal entry detail from a subsidiary
Ledger and individual journal entries and makes incremental updates if new journals are
entered after consolidation. You can transfer and post the additional journal entry,
updating the consolidated balances. The resulting consolidation journal entries include
transactions for all the subsidiaries that are run. For example, if a subsidiary has five
transactions booked to the sales account, the consolidation journal entry includes the
summation of all five transactions. For each transaction to be listed in the parent Ledger
as five separate transactions, run the transfer five separate times. You can only use this
method for ledgers of the same functional currency.
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Accounting to Financial Reporting
Chapter 2 - Page 152
Consolidation Mapping

Consolidation Mapping
(N) Consolidation > Define > Mapping
f you selected average balance processing, you define your parent as a non-consolidation
Ledger with average balances selected.
Enter a Currency Enter the currency to use for the consolidation. This is the same as
the functional currency for the parent. You can also select STAT.
Consolidate Ledgers with Average Balance Processing Selected For average balance
processing, optionally select a default Usage type such as standard, average, or both to
transfer standard, average, or both balances to the parent Ledger.
You can create separate consolidation mappings for standard and average balances, if you
want to use different mapping rules to get different levels of detail. For example, you might
map standard balances to view consolidated totals for each cost center or average balances
to view consolidated totals for each company. Note that the standard defaults if you choose
Transactions as the consolidation method. For more information, refer to the Oracle General
Ledger User Guide or the R12.1 General Ledger Financial Management Advanced Topic
Average Balance Processing.
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Accounting to Financial Reporting
Chapter 2 - Page 153
Streamlined Consolidation Mappings

Streamlined Consolidation Mappings
Navigation: Setup : Accounts > Chart of Accounts Mapping
A chart of accounts mapping is a set of instructions for mapping accounts or entire account
segments from one chart of accounts to another chart of accounts. You can use chart of
accounts mapping for consolidation purposes and for secondary ledgers. You can define
mappings between charts of accounts instead of between ledgers, so that they can be shared
across multiple Consolidation Definitions. Therefore, if you have multiple Consolidation
Definitions for parent and subsidiary ledgers that share the same chart of accounts pair, and
their mapping rules are the same, you only have to define a single Chart of Accounts
Mapping.
You can also secure access to chart of accounts mappings using definition access set
security. This allows you to secure which users can view, modify, and/or use chart of account
mappings in consolidation definitions.
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Accounting to Financial Reporting
Chapter 2 - Page 154
Consolidation Mappings

Consolidation Mappings
Chart of accounts mappings may be used with the Global Consolidation System for the
purposes of consolidation, or they may be used to propagate journals and balances from the
primary ledger to secondary ledgers defined in the Accounting Setup Manager.
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Accounting to Financial Reporting
Chapter 2 - Page 155
Consolidation Mappings

Consolidation Mappings
Examples of the options you have when mapping two charts of accounts.
You can assign a single value that will be used for the target segment.
You can copy all values from a source chart of accounts segment to the same values in
your target segment
And you can use rollup rules to map a range of values from one chart of accounts
segment to a target segment value.
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Accounting to Financial Reporting
Chapter 2 - Page 156
Consolidation Mappings Benefits

Consolidation Mappings Benefits
With Chart of Accounts Mappings you can reduce setup and maintenance for increased
efficiency.
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Accounting to Financial Reporting
Chapter 2 - Page 157
Mapping Rules

Mapping Rules
Select a Mapping Rule: Select a mapping rule to specify how to consolidate balances or
transactions from your subsidiary to your parent. Your choices include segment rules,
account rules, or a combination of both.
Segment rules are preferable to account rules for the following reasons:
- Defining consolidation mapping is quicker and easier. For example, if your parent
account has only three segments, you can map an entire subsidiary's chart of
accounts with just three segment rules.
- Running consolidations based on segment rules is faster than those based on
account rules.
Change Mapping Rules: Save your work after you have set up your consolidation
mapping. Once saved, you cannot modify your rollup rules, except to change the parent
and subsidiary segment detail values. To change a rollup rule, delete it and create a new
one.
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Accounting to Financial Reporting
Chapter 2 - Page 158
Using Account Mapping Rules

Using Account Mapping Rules
Account Rules: Enter the subsidiary accounts and parent account to which you want to map
each subsidiary account range.
Example 1: Map subsidiary account 02.300.5410.100 to account 01.5000.100 in your
parent Ledger.
Example 2: Map the entire range of subsidiary accounts 02.400.5400.100 through
02.400.6999.100 to account 01.5200.100 in your parent Ledger.
Run new consolidations in audit mode to ensure that your account mappings are correct.
Through the audit mode, you can run several audit reports to help you verify that your
mappings are set up correctly.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 159
Using Segment Mapping Rules

Using Segment Mapping Rules
Segment Rules
Enter the parent segment name to which each subsidiary is mapped, an Action, and the
Subsidiary segment name. For example, you can map your subsidiary's Department segment
to your parent's Cost Center segment. You can use only one action for each parent segment.
Mapping Rule Actions Rule / Description
Copy Value From Copies all values in your subsidiary segment to the same values
in your parent segment. The segments do not have to use the
same value set, but must use the same segment values.
Assign Single Value Assigns one specific value that is used for the parent
segment. You must enter the value that the parent chart of
accounts use. Use this rule when your parent account has
more segments than your subsidiary account.
Use Rollup Rules From Maps values from your subsidiary segments to your parent
segments using the rules specified in the Rollup Rules
region.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 160
Using Segment Rollup Rules

Using Segment Rollup Rules
There are four rollup rules possible:
Transfer Level Using Results
Detail Detail Ranges Maps range of detail values from
subsidiary Ledger into one detail value in parent Ledger.
Detail Parent Maps a parent value from subsidiary
ledger into a detail value in parent ledger.
Summary Parent Maps a subsidiary segment parent value
into a segment value in parent ledger to consolidate balances
from the summary account associated with the subsidiary
segment parent value. This rollup rule can only be
used with the balances consolidation method.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 161
Using Segment Rollup Rules

Using Segment Rollup Rules
Transfer Level Using Results
Summary Parent Ranges Maps one or more ranges of
subsidiary segment parent values into a segment value in
parent Ledger. This consolidates balances from the summary
accounts associated with the subsidiary segment parent
values. This rollup rule can only be used with the balances
consolidation method.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 162
Hierarchy Viewer

Hierarchy Viewer
(N) Consolidation > Workbench (B) State Controller (B) Mapping Set (B) View Consolidation
Hierarchy
This displays your consolidation structure in a graphical format. You can easily access your
consolidation structure, mapping, parent/subsidiary relationship, and Ledger information, even
for complex, multilevel consolidations that include intermediary parents.
You launch the Consolidation Hierarchy Viewer from the Consolidation Mapping Set window
to display your multilevel consolidation structure in a graphical format. You can expand or
collapse the hierarchy. You can review consolidation hierarchies by:
Ledger Only: Displays your hierarchy using only the company's Ledger name plus the
three components that make up that Ledger: the currency, calendar, and chart of
accounts structure.
Sets and Mappings Only: Displays your hierarchy using only the consolidation mapping
rules name that comprises the mapping set.
Both: Displays your hierarchy using both the company's Ledger name and components
and the mapping rules name.
Note that you can only view consolidation hierarchies for consolidations in a mapping set.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 163
Preparing Subsidiary Data

Preparing Subsidiary Data
Revalue balances f any of your ledgers have balance sheet accounts that have foreign
currency balances, revalue the balances to reflect the impact of any changes in
exchange rates. Post the resulting revaluation journal.
Translate balances Click State Controller's Translation Status to check the current status
of your subsidiary translations. f any subsidiary ledgers use a functional currency
different from your parent, translate the account balances before transferring the
subsidiary data to the parent Ledger. Run Translation in the subsidiary Ledger the first
time. Do subsequent runs from the Translation Status window.
Run reports Run a trial balance report for each subsidiary Ledger, using the parent
Ledger' functional currency.
- Run after revaluation and translation have been processed in the consolidation
currency.
- Review the trial balance to ensure the data is accurate.
- Use these reports to reconcile subsidiaries to the parent.
- f subsidiary data has been translated, review the trial balance to ensure the data is
accurate.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 164
Posting Consolidation Journal Entries

Posting Consolidation Journal Entries
After you have transferred subsidiary data to the parent Ledger, do the following:
Run Journal mport, if not chosen as a consolidation run option.
Review the unposted consolidation.
Post the consolidation journal entries in the parent Ledger. This launches a concurrent
process.
Request standard or FSG reports to review the consolidated results.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 165
Creating Eliminating Entries

Creating Eliminating Entries
Use the Automatic ntercompany Eliminations to create elimination sets for fully
reciprocating eliminations. For example, use elimination sets to fully offset each
subsidiary's ntercompany Payables and ntercompany Receivables accounts.
Use Oracle General Ledger's journaling features to do the following:
- Create recurring journal entries for eliminations that are not fully reciprocated to
create formula-based eliminations that only partially offset intercompany
transactions, such as minority interest eliminations.
- Create standard journal entries to eliminate intercompany balances.
- Create elimination journal entries in Application Desktop ntegrator (Web AD).
Use the power of Excel to enter elimination entries, link worksheets, and create
complex calculations. You can upload them from Web AD, then post them in
Oracle General Ledger.
f you want to segregate elimination entries from operational accounting entries, you
should create a single elimination company. For example, if you have Company 01, 02,
and 03, create a fourth elimination company, such as Company 99. Enter all eliminating
entries using the elimination company. Then you can report consolidated results before
and after eliminations.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 166
Agenda

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 167
Reporting Options

Reporting Options
Reporting Function Legend
O Online nquiry
Std Standard Reporting
FSG Financial Statement Generator
Rpt Mgr Report Manager
BS - Business ntelligence System
OB Oracle Business ntelligence - Standard Edition
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 168
Financial Statement Generator

Financial Statement Generator
You can define custom financial reports, such as income statements and balance
sheets, online with complete control over the rows, columns, and content of your report.
You can control headings, descriptions, format, and calculations in addition to the actual
content.
The reusable report components make building reports quick and easy.
You can copy a report component, make minor edits, then apply the report component to
a new report without having to create a new report from scratch.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 169
Defining Row Sets

Defining Row Sets
A single row set can be used for many different reports. For example, Row Set A above is
used for an ncome Statement with current information for Company 1. t can also be used to
produce an ncome Statement by Division, such as in the second example above, or for any
other entity (company, group, or cost center), or for the same entity with a yearly comparison
column.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 170
Defining Column Sets

Defining Column Sets
Column sets define the format and content of columns in your financial reports. They include
headings and subheadings, currency assignments, amount types, exception conditions, and
calculation columns for totals.
You can define columns one by one as you do for row sets, or you can build a column
set graphically. When you define a column set, you indicate which Oracle General
Ledger balance type you want to include in the column. Although you normally assign
accounts to your rows, you can also assign an individual account combination or range
of account combinations to each column.
You can define calculations to perform a variety of complex computations in your report
and to reference other columns in the report.
You can define a new column set, copy information from an existing column set, or use
one of the standard column sets provided by Oracle General Ledger.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 171
Defining Ad Hoc Reports

Defining Ad Hoc Reports
To run ad hoc reports, you select report objects and other report parameters during the report
submission process. With predefined report, you can run the report with the parameters you
saved in the report definition or you can change the parameters at runtime.
Note that if you change the parameters at runtime, FSG will not save them in the stored report
definition.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 172
E-Business ntelligence

E-Business Intelligence (BIS)
BS is an executive information system in the Oracle eBusiness Suite providing a framework
for corporate performance management and continuous process improvement for timely
delivery and accurate information. t can analyze the back and front office data from Oracle
eBusiness Suite, including ERP applications (Financials, Human Resources, Purchasing,
Operations, Manufacturing, CRM) and applications supporting Sales, Service, Customer,
Marketing, and nteraction Center (Call Center). You can set targets to meet strategic
objectives, monitor company performance, receive notifications when performance is out of
tolerance, and respond immediately by taking corrective actions.
BS components are integrated with an alert and workflow mechanism to proactively
communicate operational performance for management to drill from high level financial data
into detail based on selected dimensions ledgers, operating units, cost centers, and product
groups. General Ledger provides the following seven informative reports in BS: Revenues
Report, Expenses Report, Profit Margin Report, Contribution Margin Report, Current Ratio
Report, Earnings Per Share (EPS) Report, and Summary Analyst Report.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 173
Oracle Business ntelligence

Oracle Business Intelligence
OB is an intuitive ad-hoc query, reporting, analysis, and Web-publishing tool that empowers
business users at all levels of the organization to gain access to information from data marts,
data warehouses, and online transaction processing systems.
Report builders and analysts can create, modify, and execute ad hoc queries and reports.
More casual users can view and navigate through pre-defined reports and graphs. OB
provides a business view to hide the complexity of the underlying data structure. t enables
users to focus on solving business problems instead of data access issues.
OB's key characteristics include:
Working on Oracle 8i and 9i
Built-in structure for BS
nclusion of operations data
Application of defined security rules
Non multi-dimensional table use of rows and columns
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 174
XBRL Financial Reporting Features

XBRL Financial Reporting Features
FSG supports XBRL. XBRL Financial Reporting is an open specification for software that
uses eXtensible Markup Language (XML) data tags, together with taxonomy, to describe
business reporting, including financial information.
XBRL Taxonomy is a vocabulary or dictionary created to a standard, and compliant with
the XBRL specification. This allows you to more easily report on business information in
a standard format used by different industries. You can create XBRL instance
documents using FSG and publish them to interested parties, such as regulatory bodies.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 175
XBRL Financial Reporting Features

XBRL Financial Reporting Features
You can create XBRL reports or instance documents using Financial Statement Generator.
You load your XBRL Taxonomies into your Oracle instance using a standard program. Next,
you define a FSG Row Set and specify taxonomy for the row set. You then link the XBRL
element from the taxonomy for each row in your row set. Finally, you generate a FSG report
that uses that Row Set. By choosing the XBRL Output Option, FSG creates the XBRL
instance document for you.
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 176
XBRL Financial Reporting Benefits

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 177
GL Standard Reports ntegration With B Publisher

GL Standard Reports Integration With BI Publisher
Oracle General Ledger's Account Analysis, General Journals and Trial Balance standard
reports are integrated with B Publisher. Using B Publisher allows you to leverage the
formatting features of a word processing application to design the layout of your report. You
can personalize your report by changing fonts, adding images, inserting headers and footers,
creating borders, changing column widths, and reordering/adding/deleting columns. This
enables you to create professional-quality reports directly from the general ledger, which
ensures the integrity and auditability of the information. For more information on all formatting
features, refer to the B Publisher User Guide.
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Accounting to Financial Reporting
Chapter 2 - Page 178
Simultaneous Accounting for Multiple Reporting Requirements

Simultaneous Accounting for Multiple Reporting Requirements
Companies that are global in nature and that have operations in different localities often have
multiple reporting requirements. These companies and their subsidiaries often need to satisfy
the accounting and reporting requirements for each country as well as those of the parent
company. This involves performing accounting in accordance with accounting principles and
standards of multiple countries and in different currencies, charts of accounts, and/or
calendars. The reporting requirements can also be statutory in nature, and one subsidiary
may even need to satisfy multiple sets of statutory requirements.
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Accounting to Financial Reporting
Chapter 2 - Page 179
Quiz

Answer: d
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Accounting to Financial Reporting
Chapter 2 - Page 180
Quiz

Answer: c
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 181
Quiz

Answer: a
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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 182
Quiz

Answer: a
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Accounting to Financial Reporting
Chapter 2 - Page 183
Quiz

Answer: b
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Accounting to Financial Reporting
Chapter 2 - Page 184
Quiz

Answers: a, b, c and d
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Accounting to Financial Reporting
Chapter 2 - Page 185
Quiz

Answers: c
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Accounting to Financial Reporting
Chapter 2 - Page 186
Quiz

Answer: b
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Accounting to Financial Reporting
Chapter 2 - Page 187
Quiz

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Copyright Oracle, 2010.. All rights reserved.
Accounting to Financial Reporting
Chapter 2 - Page 188
Summary

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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 1
Procure to Pay Flow
Overview
Chapter 3
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 2
Procure to Pay Flow Overview

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Procure to Pay Flow Overview
Chapter 3 - Page 3
Objectives

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Procure to Pay Flow Overview
Chapter 3 - Page 4
Agenda

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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 5
Procure to Pay Flow

Procure to Pay Flow
Assets streamlines the tracking, depreciation, and maintenance scheduling of assets.
Cash Management reconciles payments and forecasts cash outflows.
Payables record invoices and make payments.
Payments provide a configurable engine to disburse and receive payments
iExpenses provides self-service submission, approval, and management of expenses
online.
General Ledger records inventory, fixed assets, payables liability, expenses and
payments.
Purchasing sources, requisitions, and procures goods and services.
iProcurement provides self-service requisitioning and web-based deployment to quickly
find goods and services, add them to their shopping cart, and perform checkout.
iSupplier Portal provides secure online supplier collaboration capabilities for suppliers
to easily perform common supplier business functions.
Sourcing provides a central repository for purchasing information and workflow-based
automation, conducting online negotiations and reducing sourcing cycle time.
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 6
Inventory sets up inventory and expense items and records inventory activity such as
receipts of inventory, returns and corrections.
Daily Business Intelligence provides integrated management reporting and analysis.
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Procure to Pay Flow Overview
Chapter 3 - Page 7
Purchasing ntegration

Purchasing Integration
Oracle Payables Accounting for matched purchase orders, suppliers, procurement cards,
purchase orders
Oracle Projects Project, task, expenditure type, expenditure organization
Oracle General Ledger Sets of books, exchange rates, accounting flexfield, currency, charge
account combinations
Oracle Cash Management Cash forecasting
Oracle e-Commerce Gateway
nbound 856, 857 (Advance Shipping Notice, Advance Shipping and Billing Notice)
nbound 843 (Response to request for quotation)
nbound 832 (Quotation)
Outbound 850, 860 (Purchase order, change order)
Oracle Advanced Supply Chain Planning (ASCP) Requisitions created based on actual and
forecast demand
Material Requirements Planning (MRP) Requisitions created based on actual and forecast
demand
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Procure to Pay Flow Overview
Chapter 3 - Page 8
Purchasing ntegration

Purchasing Integration
Oracle Human Resources Employees (requestors and buyers), organizations (Receiving),
locations, hierarchies (Approval)
Oracle Workflow Approval process, Account Generator, notifications
Oracle Alert Expiration and release alerts
Oracle Quality nspection plans, inventory, units of measure, item information
Oracle Inventory tems, demand, receipts
Oracle iSupplier Portal (iSP)
Record purchase order acknowledgments and reschedule Promised-By dates
View agreed amounts and released amounts for blanket purchase agreements
View purchase order, revision history, RFQs, expected deliveries
Create and view ASNs and ASBNs
View receipts, returns, overdue receipts, quality results, and inspection details
View and maintain order modifiers
Set processing lead time, minimum order quantities and fixed lot multiples
Forecast shipment schedules; search and view supplier items
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Procure to Pay Flow Overview
Chapter 3 - Page 9
View invoice and payment information
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Procure to Pay Flow Overview
Chapter 3 - Page 10
Purchasing ntegration

Purchasing Integration
Oracle Assets Suppliers
Oracle WIP Receipts, requisitions generated from outside processing
Oracle Order Management nternal requisitions, demand, drop shipments
Oracle Sourcing Collaborative RFQs, auctions
Oracle CBC Commitment budgetary control (CBC), dual budgetary control, enhanced funds
checking and reservation
Oracle Consigned & Vendor Managed Inventory Supplier consigned inventory, vendor
managed inventory, both enabled through iSupplier portal
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Procure to Pay Flow Overview
Chapter 3 - Page 11
Procure to Pay Lifecycle

Procure to Pay Lifecycle
Sourcing
Request for quote
Supplier selection
Contract negotiations and awards
Catalog content management
Ordering
Requisition and purchase order generation
Purchase order management and fulfillment
Payment
Reporting and Analysis
Supplier performance
Commodity analysis
nternal compliance
Robust intelligence gathering
Decision support
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Procure to Pay Flow Overview
Chapter 3 - Page 12
Process functionality
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Procure to Pay Flow Overview
Chapter 3 - Page 13
Oracle Procure to Pay Process

Oracle Procure to Pay Process
Demand The procurement process generates and manages requests for the purchase of
goods. The demand for purchase items may be a one-time event or may recur in either
predictable or random time intervals.
Source The procurement sourcing process covers the business activities related to the
search, qualification, and selection of suitable suppliers for requested goods and services.
Order The procurement ordering process includes purchase order placement by the buying
organization and purchase order execution by the supplying organization.
Receive The receipt process acknowledges that a purchase order has been duly executed.
For orders of physical goods, it will typically include the receipt, inspection and delivery of the
goods to inventory or to another designated location. For orders of services, it will typically
consist of a notification from the requester or the approving person that the service has been
performed as agreed.
Pay The payment process consists of those activities involved in the payment for ordered
goods and services.
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 14
ntroduction to Legal Entities

Introduction to Legal Entities
Legal Entities are used throughout the Procure to Pay process.
For example: Oracle Corporation is registered in the state of Delaware and is considered a
Legal Entity with a legal structure. A legal structure represents how you model your company
from a legal perspective and is determined by the government of the territory in which you do
business. Oracle Corporation has several establishments registered to do business; for
example, Redwood Shores, CA, and Reston, VA.
This differs from an operating structure where operating units represent how the company is
organized from an operations perspective. For example, Oracle Corporation Headquarters
(Operating Unit) is comprised of Development, Consulting, and Finance. These operating
units are determined internally to optimize how the business is run.

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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 15
RFQs and Quotations

RFQs and Quotations
Through Purchasing, you can create a request for quotation (RFQ) from requisitions, match
supplier quotations to your RFQ, automatically copy quotation information to purchase orders,
generate reports to control RFQs, and evaluate supplier responses. You can also:
Enter quotations manually, copy from an RFQ, import with the Purchasing Documents
Open nterface or the e-Commerce Gateway, and receive quotations electronically.
dentify requisitions requiring supplier quotations and automatically create an RFQ.
Create an RFQ with or without approved requisitions to plan for future procurements.
Record supplier quotations from a catalog, telephone conversation, or RFQ response.
review, analyze, and approve supplier quotations to reference on purchase orders and
requisitions. You can evaluate your suppliers based on quotation information.
Receive automatic notification when a quotation or RFQ is expiring.
Review quotation information online when creating purchase orders or requisitions and
copy specific quotation information to a purchase order or requisition.
Source the items for which you negotiated purchase agreements automatically. f you
created sourcing rules and Approved Supplier List entries for the items, you can enter
supplier information automatically in the Requisitions window when creating requisitions.
Place supplier information for items onto blanket purchase order releases.
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 16
Requisitions

Requisitions
Requisitions represent demand for goods or services. Requisitions for goods and services
are generated by applications including nventory, Work in Process (WP), Material
Requirements Planning (MRP) and Order Management, may be entered manually through
Purchasing windows or using iProcurement, and may be imported from external systems.
Through Purchasing, you can do the following:
Provide online requisitions or limit the user access to the system, centralize your
purchasing department, and source your requisition with the best suppliers.
Ensure that you obtain the appropriate management approval before creating purchase
orders from requisitions.
Create, edit, and review requisitions online.
Enter supplier data, delivery instructions, multiple accounting distributions, and notes to
buyers, approvers, and receivers.
Review the current requisition status, action history, approval authority, and process
stage.
Route requisitions according to your approval structure and set authorization limits by
amount, charge account, item category, and location.
Review and approve requisitions that need your approval.
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 17
Requisitions

Requisitions
See the full requisition detail and review the action history before approving a requisition.
Print requisitions (with status Approved, Cancelled, Rejected, n Process, Pre-Approved,
and Returned) for off-line review and approval.
Track the status of requisitions through the approval process.
Automatically source requisitions from outstanding blanket purchase agreements or
quotations you have received from suppliers.
Create requisitions quickly and easily for commonly purchased items.
Provide attachments as notes on requisition headers and lines.
Assign requisition lines to buyers.
Review buyer assignments for requisition lines.
Forward all requisitions awaiting approval from one approver to an alternate approver.
Reroute requisitions from one approver to another within your security and approval
constraints.
Source goods from your own inventory with internal requisitions.
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 18
Suppliers

Suppliers
You must define a supplier before performing most activities within Purchasing and Payables.
You optionally enter a recommended supplier on a requisition.
You need a supplier to issue a request for quotation.
You use that same supplier when you enter a quotation.
You need supplier information for purchase orders.
You receive goods or services from suppliers.
You return goods to suppliers.
You must pay the supplier for the goods or services purchased.
Set up suppliers to record information about individuals and companies you purchase goods
and services from. You can also enter employees you reimburse for expense reports. You
can designate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement
card sites. For example, for a single supplier, you can buy from several different sites and
send payments to several different sites. Most supplier information automatically defaults to
all supplier sites to facilitate supplier site entry. However, you can override these defaults and
have unique information for each site.
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 19
Purchase Orders

Purchase Orders
Purchasing supports four types of purchase orders: Standard, Blanket, Contract and Planned.
You can manually create purchase orders or search approved requisitions and add them to
purchase orders. You can import standard purchase orders through the Purchasing
Documents Open nterface in a status of ncomplete or Approved. You can automate
purchase document creation using PO Create Documents workflow to automatically create a
Blanket purchase agreement release or Standard purchase order upon requisition approval.
After creating purchase orders, you submit them for approval, to check if the submitter has
sufficient authority to approve the purchase order. After document approval, you may sent the
purchase order to your supplier via printed document, ED, fax, e-mail, iSupplier Portal, and
XML. After sending the purchase order or release to your supplier, you authorize to ship
goods at the times and to the locations that have been agreed upon.
Purchase documents may be created by:
Buyers using the AutoCreate window
mporting them using the Purchasing Documents Open nterface
The Create Releases program (Blanket releases), automatically
Workflow (blanket releases or standard purchase orders), automatically
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 20
Purchase Orders

Purchase Orders
With Purchasing, you can do the following:
Review all of your purchases with your suppliers to negotiate better discounts.
Create purchase orders simply by entering a supplier and item details.
Create standard purchase orders and blanket releases from both online and paper
requisitions.
Create accurate and detailed accounting information so that you charge purchases to
the appropriate departments.
Review the status and history of your purchase orders at any time for all the information
you need.
Record supplier acceptances of your purchase orders.
Always know whether your suppliers have received and accepted your purchase order
terms and conditions.
Copy purchase orders.
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 21
Receiving

Receiving
Using Purchasing, you can process in-transit shipments, receipts due to customer returns and
from suppliers, other warehouses, or inventory organizations. You can search for expected
receipts based on a purchase order or a customer return recorded in Order Management and
then process them to their final destination whether it is nventory, Expense or Shop Floor.
You can control the ordered items through receiving, inspection, transfer, and internal delivery
and the quantity, quality, and internal delivery of received items. You can use routing controls
at the organization, supplier, item, or order level for material movement.
You can define receiving tolerances at the organization, supplier, item, and order level, with
he lowest level overriding previous levels, and for receipt quantity, on-time delivery, and
receiving location. You can also do the following:
Assign looser tolerances to low-value items and set enforcement options to ignore, warn
the user, or reject transactions violating tolerances.
Use blind receiving for accuracy, with the quantity due for each shipment not showing
and quantity control tolerances being ignored, Express and Cascade receiving for quick
processing and Advance Shipping Notices (ASNs) to save time in processing receipts.
Record receipt of unordered items based on your item, supplier, or organization defaults
and receipt of predefined substitute items and services and labor.
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 22
nvoicing

Invoicing
Once you've received goods or service from your supplier, you will also receive an invoice,
which you can record invoices in a number of different ways.
With Payables, you can:
mport/Enter invoices manually, either individually or in batches.
Use the nvoice Gateway for rapid, high-volume entry of standard invoices and credit
memos that are not complex and do not require extensive online validation.
Automate invoice creation for periodic invoices using the Recurring nvoice functionality.
Use iExpenses to enter employee expense reports using a web browser.
Record credit card/procurement card invoices from transactions the credit card issuer
sends to you in a flat file.
Record Project related expense reports.
mport ED invoices processed with the e-Commerce Gateway.
mport lease invoices transferred from Property Manager.
Match invoices to purchase orders to ensure you only pay what you're supposed to be
paying for.
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 23
Payment

Payment
Once invoices are validated, they can be paid. Payables provides the information that you
need to make effective payment decisions, stay in control of payments to suppliers and
employees, and keep your accounting records up-to-date so that you always know your cash
position. t handles every form of payment, including checks, manual payments, wire
transfers, ED payments, bank drafts, and electronic funds transfers. t is integrated with Cash
Management to support automatic or manual reconciliation of your payments with bank
statements sent by the bank.
With Payables, you can:
Ensure duplicate invoice payments never occur.
Pay only invoices that are due, and automatically take the maximum discount available.
Select invoices for payment using a wide variety of criteria.
Record stop payments.
Record void payments.
Review information on line on the status of every payment.
Process positive pay.
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 24
Quiz

Answer: b
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 25
Quiz

Answer: a, b, c, d, e, f
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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 26
Quiz

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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 27
Summary

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Copyright Oracle, 2010. All rights reserved.
Procure to Pay Flow Overview
Chapter 3 - Page 28

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 1
Suppliers Overview
Chapter 4
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 2
Suppliers Overview

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 3
Objectives

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 4
Agenda

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 5
Agenda

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 6
Overview

Overview
You must define a supplier before performing most activities within Purchasing and Payables.
You optionally enter a recommended supplier on a requisition.
You need a supplier to issue a request for quotation.
You use that same supplier when you enter a quotation.
You need supplier information for purchase orders.
You receive goods or services from suppliers.
You return goods to suppliers.
You must pay the supplier for the goods or services purchased.
Set up suppliers to record information about individuals and companies you purchase goods
and services from. You can also enter employees you reimburse for expense reports. You
can designate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement
card sites. For example, for a single supplier, you can buy from several different sites and
send payments to several different sites. Most supplier information automatically defaults to
all supplier sites to facilitate supplier site entry. However, you can override these defaults and
have unique information for each site.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 7
How Oracle Products Use Supplier nformation

How Oracle Products Use Supplier Information
Suppliers can be set up from many different applications, but the data is stored in a single
repository called the Trading Community Architecture (TCA). TCA provides a single, common
definition that can be used to identify customers, suppliers, and organizations that provide you
with goods or services, and are in turn, a customer of your own products or services. The TCA
repository stores the key elements that define an organization, identity, business locations,
and key contacts, so that different Oracle products use a common trading partner definition.
Applications that share supplier information are:
Purchasing
Purchasing uses supplier defaults, such as freight terms and shipping details, on requisitions,
purchase orders, requests for quotations, etc.
Payables
Payables uses supplier defaults, such as method of payment and bank account information,
during invoice entry and payment processing.
Assets
Assets maintains the supplier name and number for each asset record.
Property Manager
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 8
Property Manager exports lease invoices for suppliers to Payables so they may be paid.
Multiple Organization Access Control (MOAC)
f you are using multiple organization support feature, you cannot enter the following
information at the supplier level, only at the supplier site level:
Liability Account
Prepayment Account
Distribution Set
nv Tax Code
Future Dated Payment Account
Trading Community Architecture
All supplier information is defined in Trading Community Architecture.
iSupplier Portal
iSupplier Portal allows you to grant access to suppliers to review order, receipt, and payment
details for the supplier. Suppliers can enter planned (with PO) or unplanned (without PO)
invoices and update supplier information.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 9
Flow of Default Values

Flow of Default Values
Defaults set at higher levels flow down to lower levels where you can override them.
Defaults reduce data entry by providing default values based on corporate policy.
Optional defaults (especially the higher level ones) should be left blank if you frequently
override them.
Purchase order matched invoices will receive defaults from the purchase order you
specify when you match.
Note: Changes to default values affect only new records, not existing records. For example,
if payment terms in the Payables Options window are reset to Net 30 from Net 45, new
suppliers will have a default of Net 30. Existing suppliers will have terms of Net 45.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 10
Agenda

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 11
Suppliers in the Trading Community Architecture (TCA)

Suppliers in the Trading Community Architecture (TCA)
By representing Suppliers as part of the trading community, you have access to TCA features,
including:
Data Librarian Function & Processes
ntegrated Enrichment Capabilities including D&B
Address Validation
Data Consistency
Ease of Data Maintenance
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 12
TCA Security by Functional Areas

TCA Security by Functional Areas
TCA security presents a clear distinction between the supplier's company details and terms
and controls for the trading relationship. Managing the attributes specific to particular
functional areas such as Oracle Payables, Purchasing and Receiving can be controlled with
the use of Function Security.
You can add new locations or relationships with additional operating units
You can modify a quick update page with those values most often updated for faster
maintenance
Additional tax and legal registrations provide key information to meet reporting and
compliance needs
The supplier U also includes a Survey section that provides administrators with access to the
results of questionnaires that the supplier has been asked to complete, either during self-
registration or as part of profile maintenance through iSupplier Portal. Purchasing Category
assignments further designate the type of goods and services the supplier will provide.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 13
Agenda

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 14
Suppliers Page

Suppliers Page
You can create and update supplier information, and manage supplier profile from a common
Suppliers page.
The Suppliers page provides a central area where you can search for suppliers and provide
quick updates to key supplier information. You can also view a TO DO list, which provides a
list of pending supplier requests which the suppliers have submitted through Oracle iSupplier
Portal.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 15
Supplier Record Structure

Supplier Record Structure
For every supplier, you can create an unlimited number of supplier sites with different
addresses and contacts. You can buy from several different sites while sending the payments
to only one site. Define how supplier sites can be used with the following options:
Pay - You can import/enter invoices for and make payments to the site.
Primary Pay - Default pay site for invoice entry and import.
Purchasing - You can create purchase orders for the site.
RFQ Only - You can create request for quotations in Purchasing for the site. You cannot
create purchase orders for an RFQ Only site.
Procurement Card - You can purchase goods or services using a procurement card.
Primary Pay - With multiple pay sites, one site can be designated the primary, which
defaults in the nvoices window to speed the invoice entry process. Payables Open
nterface mport uses this site to import an external invoice with no specified site.
Designate a site as an RFQ Only site during the beginning of negotiations with a supplier. f
you decide to use the supplier, designate the supplier site as a Purchasing site by deselecting
the RFQ Only option and selecting the Purchasing Site option. For each supplier site, you can
enter contact information (name, address, telephone) specific to that site. Contact information
is for your reference only.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 16
Enter/Update Suppliers

Enter/Update Suppliers
Purchasing Responsibility
(N) Supply Base > Suppliers
Or (N) Buyer Work Center > Suppliers
Payables Responsibility
(N) Suppliers > Entry
Set up suppliers in the Suppliers page to record information about companies and individuals
from whom you purchase goods and services. You can also enter employees whom you
reimburse for expense reports.
When you enter a supplier that does business from multiple locations, you enter common
supplier information (supplier quick update information) only once, and you enter supplier sites
for each location (supplier address). For example, for a single supplier, you can buy from
several different addresses and send payments to several different addresses. Suppliers can
have multiple addresses and each address can be used by an operating unit through a
supplier site record.
Most supplier information defaults to supplier sites. However, you can override the values that
default if necessary. After you define suppliers, you can use them when you import/enter
invoices and create purchasing documents.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 17
Supplier Level Versus Site Level Entry

Supplier Level Versus Site Level Entry
Notice that information on the Organization, Contact Directory, Business Classification,
Products and Services, Surveys, Receiving, and Payment Details pages is entered only at the
supplier level.
nformation on the Address Book page is entered only at the supplier site level.
Assuming the Multiple Organization Support feature has been enabled, the Accounting page
is also entered only at the site level.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 18
Supplier Site Settings

Supplier Site Settings
Recall the default value hierarchy flow. Entries made at the supplier level will default to the
supplier site level. Defaulted information can be either accepted or overwritten with site-
specific values. n the example above, notice that Tokyo and New York have payment terms
of Net 30 and a Pay Date Basis of Due. Paris, however, has payment terms of 2/10, Net 30
and a Pay Date Basis of Discount.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 19
Avoiding Duplicate Suppliers

Avoiding Duplicate Suppliers
Before setting up new suppliers or new sites, enter a query or use Find to verify that the
supplier or site does not already exist. You identify potential duplicate suppliers through the
following methods:
Perform a Find or query on the supplier name
Submit and review the Suppliers Report
Submit and review the Supplier Audit Report to obtain a listing of suppliers whose
names are the same up to a specified number of characters
Submit the 1099 Suppliers Exception Report to obtain a listing of suppliers with the
same taxpayer D.
Solid naming conventions are key to avoiding duplicate entries. Avoiding duplicate supplier
entry can benefit your company by:
Preventing duplicate invoices and payments
Providing accurate supplier reporting
mproving system performance
f duplicate entries are found, consider using the Supplier Merge functionality to correct and
consolidate records.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 20
Agenda

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 21
Key Reports

Reports
Suppliers Report Review supplier, supplier site, and supplier site contact information.
Supplier Audit Report Review supplier names that are similar, to help identify potential
duplicate suppliers.
Supplier Payment History Review supplier payment history, including voided
payments, for a supplier or a group of suppliers.
Supplier Paid Invoice History Review the supplier invoice history, including discount
and partial payment information, for a supplier or a group of suppliers.
Supplier Mailing Labels Create mailing labels for supplier sites.
Purchase Order Header Updates Report Review purchase orders updated by the
Supplier Merge Process.
Supplier Merge Report Review the suppliers, sites, and invoices updated by the
Supplier Merge Process.
Supplier Customer Netting Report Review the net balance in Payables and
Receivables for any suppliers or customers who have the same NF or VAT code.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 22
Key Reports

Key Reports
Supplier Open Balance Letter Create a supplier open balance letter. You can use this
report for auditing purposes or to periodically inform your suppliers of open balances.
Invalid PO Supplier Notice Use this report to inform suppliers that you placed an
invoice on hold because they did not provide a purchase order number for matching or
you could not use the purchase order number they provided. Payables creates a notice
for each supplier with invoices to which you have manually applied an nvalid PO hold.
Accounts Payable Trial Balance Report Use this report to verify that total accounts
payable liabilities in Payables equal those in the general ledger. You can use this report
to review all negative supplier balances. To do this, choose No for the Summarize
Report parameter, and Yes for the Negative Balances Only parameter.
Invoice Aging Report Use this report to view your unpaid invoices and information
about invoice payments due within four time periods you specify in the Aging Periods
window.
Open Items Revaluation Report Use this report to revalue the balances of your open
items. Open items in this report are all invoices, including prepayments, credit memos,
and debit memos, that are unpaid as of the last date of the revaluation period you
specify.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 23
Agenda

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 24
Merge Suppliers

Merge Suppliers
Purchasing Responsibility
(N) Supply Base > Supplier Merge
Payables Responsibility
(N) Suppliers > Supplier Merge
Use Supplier Merge functionality to combine two or more suppliers or sites identified as
duplicates. Decide whether they will be merged or copied to the new supplier. Copied sites
will be added as a new site to the target supplier. Merged sites will be combined with the
named site of the target supplier.
The resulting site names for each supplier after the merger must be unique within that
supplier. For example, the request to copy a site named "TX-DALLAS to a supplier with an
existing site name would result in duplicate site names for the same supplier. You will be
required to rename one of the sites to a new name to complete the merge. You need to
decide what effect the merge will have on existing purchase orders and invoices.
For purchase orders, you indicate whether you want all or none of the existing purchase
orders to be updated with the new supplier/site names.
For invoices, you can indicate whether you want all, only unpaid, or no invoices to be
updated with the new supplier/site names.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 25
Data Example - Supplier Merge

Data Example - Supplier Merge
Because the CA-REDWOOD site of Oracle Corp will be merged into the existing CA-
REDWOOD site of Oracle Corporation, it will not result in an additional, duplicate named site
for Oracle Corporation. The FL-ORLANDO site has been selected for copying as a new site
to Oracle Corp. t also will result in a uniquely named site for Oracle Corporation. f there
already was a FL-ORLANDO site for Oracle Corporation, and it turns out that the supplier has
two sites in Orlando, then the merge process would have to be preceded by first adjusting the
name of one or the other. You may decide to append a "-2 to the FL-ORLANDO site of
Oracle Corporation. After the merge completed, Oracle Corporation would have a FL-
ORLANDO and a FL-ORLANDO-2 site.
For best auditing results, transfer both paid and unpaid invoices to a new supplier and site so
you can identify duplicate payments easily. Also, transfer purchase orders to a new supplier
and site so all invoice and purchase order information refers to the same supplier.
Note that the supplier merge process is permanent.
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Suppliers Overview
Chapter 4 - Page 26
Agenda

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 27
Responsibility for Supplier Entry/Maintenance

Responsibility for Supplier Entry/Maintenance
You must determine where the operational responsibility for supplier entry and maintenance
should be assigned.
Typical options are within either the Accounts Payable or Purchasing departments. While
many people throughout the organization will use established supplier records, typically only a
few people within the assigned department add/maintain supplier records.
The level of staffing requirements for this function must be determined based on volume and
effort. Proper placement of the responsibility must consider good internal control
policies/practices and proper segregation of duties.
You may wish to consult with your internal or external auditors prior to making a final decision
on these issues.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 28
Supplier Naming Conventions

Supplier Naming Conventions
Supplier and supplier site naming conventions are critical to the efficiency of the purchasing
and payables operations. Examples of administrative inefficiencies and increased costs due
to a poorly maintained supplier list are:
You issue more purchase orders or releases than necessary. f pricing is on a non-
cumulative basis, volume discounts may be lost when you are entitled to them.
You issue more payments than necessary, resulting to a larger reconciliation effort.
You may review volume purchases with suppliers above a defined dollar amount to
identify better price negotiations. f you erroneously entered a supplier twice, you might
miss them when, separately, they don't exceed the amount, than if you entered correctly
as a single supplier, they exceed the amount.
A poorly maintained supplier list can cost higher organizational volume discounts and
administrative costs associated with maintaining a larger supplier list.
nclude all interested parties in the development of supplier naming conventions. For
example, when implementing with a phased approach, maybe Assets is scheduled for Phase
2 of your implementation, but you should still consult all parties to ensure organizational,
immediate, and long term system implementation goals are considered above individual unit
goals. Agree upon naming conventions, document them, and obtain authorized sign-off.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 29
Supplier Naming Convention Examples

Supplier Naming Convention Examples
Provide the exact spelling for suppliers whose names are easily misspelled. Duplicate
suppliers are often found for companies such as BM or AT&T, which may be spelled out or
entered with or without spaces or punctuation. Document the spelling for your top ten
suppliers to ensure closer management of critical suppliers. Locate supplier records by:
Using a standard case, whether it is all capital letters or title case.
Using approved abbreviations, even if sufficient space is available to spell out the word.
For example, use "nc for ncorporated or "Co for Company.
Standardizing rules of punctuating. You may eliminate punctuation due to the limited
number of characters available for the suppler name and the supplier site name.
Consider brief structure for the site name, given 15 characters available. An example of a
possible structure for the site name might include the following: SS-CCCCCCCC-##
Sequentially assigned number to accommodate multiple sites in the same city
Eight character city name/abbreviation
Two digit federal post office abbreviation
Refer to the your local Postal Service's web site for address standards applicable to your
business when determining address standards to obtain lower pricing on your postage costs
due to properly addressed mail produced directly from the system.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 30
Supplier Conversion Methodology

Supplier Conversion Methodology
Without an open interface, you must determine how to convert your current supplier records
into Oracle. Oracle advises not writing directly to base tables using SQL*Plus or other
programming tools. Since supplier record volumes may require an automated interface,
consider using automated data loader tools to enter records from spreadsheets into normal
data entry windows while the system updates the appropriate tables.
Depending on the total conversions, record volumes, available resources, and time, you need
to determine which conversions will be automated or manual. You can automate conversion
of 3,000 records for one implementation, but manual for another. You may need temporary
keying staff to assist with data entry for manual conversions. Review any conversion into the
applications with Oracle Support to avoid negative licensing/support issues.
Review your current supplier file to identify which records will be converted. You may convert
only suppliers you are in business with in the past three years or five years. Consider your
agreed upon supplier and site naming conventions discussed to update your supplier records
before conversion, ensuring only clean data is entered into the new system. Review the
available standard supplier reports to determine whether they can adequately support and
reconcile your conversion. You may need to develop additional reports.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 31
Fax or E-Mail Setup

Fax or E-Mail Setup
You have the option of communicating approved purchasing documents to your suppliers by
printed document, facsimile, or e-mail.
Printed document You produce printed purchasing documents by submitting the
Printed Purchase Orders Report or Printed Change Orders Report in either landscape or
portrait format.
Facsimiles f you have installed CommercePath or any facsimile software that is
compatible with the CommercePath Fax Command Language (FCL), Purchasing can
automatically send facsimiles of the Printed Purchase Order Report (Portrait and
Landscape) and Printed Change Orders Report (Portrait and Landscape).
E-Mail f you intend to forward documents to suppliers by e-mail, you provide the proper
e-mail address on the Supplier Sites window of the General tab. You can also have a
document copy mailed to your enterprise by entering the appropriate e-mail address in
the PO: Secondary E-mail Address profile option. You need to log into this e-mail
address to resend the e-mail. Generic terms and conditions can be appended on the e-
mail PO body by putting them in a text file. You can identify the directory location and
the file name by setting the profile options PO: n File Path and PO: Terms and
Conditions File Name.
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Suppliers Overview
Chapter 4 - Page 32
Agenda

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 33
Oracle Purchasing and the Enterprise Structure

Oracle Purchasing and the Enterprise Structure
Important! Oracle Purchasing documents exist within a single operating unit in the enterprise
structure being discussed here. That is, you must choose the operating unit when creating a
Purchasing document.
MOAC
Multiple Organizations Access Control (MOAC) enables companies that have implemented a
shared services operating model to efficiently process business transactions by allowing you
to access, process, and report on data for an unlimited number of operating units within a
single applications responsibility. For each Purchasing user, this access is controlled by the
profile options MO: Security Profile. n addition defaulting can be set using MO: Default
Operating Unit.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 34
Oracle nventory Organizations

Oracle Inventory Organizations
nventory organizations can be manufacturing facilities, warehouses or any facility where a
company stocks and transacts inventory. These are important to the procurement process
because they are where goods are received and stored. At least one inventory organization
must be set up regardless of whether you transact inventory or not. f transacting inventory, a
best practice is to set up two inventory organizations, one master and one child. This is
discussed in more detail later in the Define nventory Organizations topic.
Locations
Locations simply represent a physical address of a facility, office, warehouse or any place else
used by the entity. Each location can be associated with one or all inventory organizations.
nventory organizations use locations to represent the address for the following:
Ship to
Bill to
Office Site
nternal Site
Receiving Site
Subinventory
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Suppliers Overview
Chapter 4 - Page 35
Subinventories in Oracle Applications represent the physical locations within a manufacturing
facility or warehouse where goods are stocked and where transactions take place.
Subinventories are created within inventory organizations.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 36
What is an tem?

What is an Item?
n Oracle Applications an item is defined as anything you make, purchase, or sell. This would
include components, subassemblies, finished products, or supplies. Manufacturing also uses
the term items to represent planning items that you can forecast, standard lines that you can
include on invoices, and option classes you can use to group options in model and option
class bills. You may sometimes see them referred to as a system item.

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 37
Oracle Applications That Use tems

Oracle E-Business Applications That Use Items
The applications in the tables above are not all inclusive but this is meant to give an
understanding that the item definition is used in many different places in Oracle. Oracle
Applications use a common data model and the Oracle nventory tem definition is an example
of the a common data element that is used in many applications. t is the common data
element that makes the integration across E-Business suite seamless. Each of the
applications use the item in different ways.
How do the Oracle E-Business Applications Use Items?
This list is not all inclusive, but gives a general idea of how important the item is in Oracle
Applications.
nventory - The item is used to stock, plan, cost and transact.
Engineering and Bill of Material - the item is used to create a bill of materials and routing
as well as a component on a bill of materials.
Material Planning - The planning engine makes suggestions as to discrete jobs and
purchase requisitions based on supply and demand. The suggestions are for an item.
Quality - Collect quality data on a item as you do move transactions in Oracle Work in
Process, complete assemblies in Work in Process, receiving and inspection transactions
in Purchasing.
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Suppliers Overview
Chapter 4 - Page 38
Cost - Establishes a cost for the item based on one of the four perpetual costing
methods (standard, average, FFO and LFO) and uses this as a foundation for valuing
transactions.
Purchasing - item is used on purchase order, requisition, request for quote, quotations
and receipts.
Work in Process - Create work orders for items.
Receivables - Customers can be billed for an item shipped to them.
Order Management - Place Sales Orders for an item.
Shipping Execution - Ships an item to a customer or to another organization.
Advanced Supply Chain Planning and Scheduling - Plans and schedules an item based
on criteria supplied.
Project Manufacturing - Transacts on a item that is linked to a project and task through
purchase order receipts, work order transactions, and inventory transactions.
Sales - Create quotes for an item.
Depot Repair - Create non-standard work orders for an item.
Manufacturing Scheduling - Schedules a work order or job for an item based on material
and resource constraints; resource instances are created as items.
Enterprise Asset Management - Create asset activities, asset groups and re-buildables
using the item definition in Oracle nventory.
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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 39
Quiz

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 40
Quiz

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 41
Quiz

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 42
Quiz

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 43
Quiz

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Copyright Oracle, 2010. All rights reserved.
Suppliers Overview
Chapter 4 - Page 44
Summary

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 1
Purchasing Overview
Chapter 5
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Purchasing Overview
Chapter 5 - Page 2
Purchasing Overview

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Purchasing Overview
Chapter 5 - Page 3
Objectives

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 4
Agenda

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Purchasing Overview
Chapter 5 - Page 5
Agenda

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 6
tem Attributes

Item Attributes
Purchasing Responsibility
(N) Items > Master Items
tems have attributes which represent characteristics of an item. tems can be inventory items,
they can be stockable, orderable, shippable, planned, have a lead time, purchased, and
costed as well as many other attributes. Additionally, an item can be a piece of equipment or a
vehicle. There are approximately 200 item attributes, so there are tabbed regions on the item
master window which divide the attributes into functional areas. Those tabs with a few
examples are as follows:
Main - attributes such as unit of measure, type of item
nventory - inventory item, stockable and transactable, item controls
Bill of Material - BOM type
Costing - is the item costed?
Purchasing - purchased, purchasable, list price
Receiving - receipt routing, over receipt tolerance
Physical Attributes - size, weight, truck, collateral
General Planning - make or buy, inventory planning
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 7
MRP/MPS Planning - MRP vs. MPS planned, order modifiers, time fences
Lead Time - processing, variable, fixed
Work in Process - build in WP, supply type, over completion tolerance
Order Management - ordered, orderable, ATP
nvoicing - invoiced, invoiceable
Service - support service, serviceable product
Web Option - orderable on the web
All the attributes used together tell Oracle how the item can be used to execute business
processes. Deciding on how to set item attributes is very important when implementing
Oracle Applications. Companies need to think carefully about how their items are used and
how they want to use them in Oracle.
For complete details on items, item attributes, item statuses, and how all of these interact
please refer to the Oracle Inventory Users Guide.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 8
tem Master Organization and Child Organizations

Item Master Organization and Child Inventory Organizations
t is considered best practice that you create at least two inventory organizations, an item
master and an inventory organization. t is not a requirement but is suggested as good
business procedure. t is more difficult to add and control other inventory organizations without
this structure.
Item Master Organization
- Usually the first inventory organization that is set up. ts single purpose is for entering
items. t has no subinventories and is not used for inventory transactions. The item
master can be thought of as a parts list.
Child Organizations
- An inventory organization with at least one subinventory that is set up for processing
inventory transactions. t is not used to enter items. t gets a list of items from the
master. Create as many inventory organizations as you need to meet business
requirements. tems are created in the item master and assigned to the child
organization(s).
- Note: One item master is recommended and can cover multiple sets of books. t is
much easier to add an inventory organization and assign items to the new organization
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 9
than it is to copy from one item master to another once the data has been entered.
Carefully consider the business reasons why you need two item masters.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 10
Overview of Creating an tem

Overview of Creating an Item
Purchasing Responsibility
(N) Items > Master Items
An item is created by either importing the it through an open interface or navigating to the
master item form. The process in summary is as follows:
1. Give the item a name and description.
2. Establish the attributes by copying an existing item, template or enabling each attribute
individually.
3. Make changes to the Primary unit of measure if necessary and any other attributes.
4. Save your work.
5. Assign the item to the appropriate organization(s).
6. Make changes to attributes at the organization level if appropriate.
7. Save your work.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 11
Describing tem Attributes - Purchasing

Describing Item Attributes - Purchasing
Below are the purchasing attributes and a description of how they are used.
Purchased: ndicate whether to purchase and receive an item. Turning this option on
allows you to set the Purchasable attribute. This is an item defining attribute. f you turn
this option on, the item is automatically assigned to the default category set for the
Purchasing functional area.
Purchasable: ndicate whether to order an item on a purchase order. You can set this only
when Purchased is turned on. Turning Purchasable off allows you to temporarily restrict
the ability to buy.
Use Approved Supplier: ndicate whether to use only approved suppliers. f you turn this
option on, Purchasing prevents you from approving a purchase order for an item if you do
not use an approved supplier.
Allow Description Update: ndicate whether to allow updates to the item description on a
purchasing document line for an item.
RFQ Required: ndicate whether to require an item quotation when requesting an item.
Purchasing defaults this value on requisition lines for this item. Leave this field blank if you
want nventory to use the value defined in the Purchasing Options window for transactions
involving this item.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 12
Outside Processing tem: ndicate whether you can add the item to an outside processing
purchase order line. You can turn this option on only if Purchased is also on. n addition,
this option controls whether you can attach an item to a resource in the Resource window.
Outside Processing Unit Type: Select an option to determine the quantity of an outside
processing item you requisition, purchase and receive:
- Assembly - You purchase an outside processing item based on the number of
assemblies you ship to the supplier.
- Resource - You purchase an outside processing item based on the number of
assemblies times the resource usage rate or amount.
Taxable: ndicate whether the supplier charges a tax. Purchasing uses the taxable status
together with the tax code you associate with a location to determine whether a purchase
order shipment is taxable, and what the tax code that applies to this shipment. Leave this
field blank if you want nventory to use the value defined in the Purchasing Options
window for transactions involving this item.
Receipt Required: ndicate whether you must receive an item before you can pay the
invoice. Leave this field blank if you want nventory to use the value defined in the
Purchasing Options window for transactions involving this item. Although a receipt is
required to pay the invoice, This is not the same as 3-way matching.
nspection Required: ndicate whether to inspect an item upon receipt from the supplier
before paying the corresponding invoice. Leave this field blank if you want nventory to use
the value defined in the Purchasing Options window for transactions involving this item.
Although inspection is required to pay the invoice, this is not the same as 4-way matching.
Default Buyer: Enter the buyer assigned to purchase an item. Purchasing displays the
buyer you enter here as the suggested buyer for a requisition..
Unit of ssue: Enter the unit of measure you typically use to issue the item from inventory.
Purchasing uses this as the default for internal requisition lines sourced from inventory.
You use units of issue to round order quantities, minimizing shipping, warehousing, and
handling costs. The unit of issue must be the same for all units of measure belonging to
the same unit of measure class as the primary unit of measure.
Receipt Close Tolerance: Enter the percentage tolerance Purchasing uses to
automatically close purchase order shipments. Purchasing automatically closes a
shipment when your unreceived quantity is within the quantity tolerance percentage of the
shipment. For example, if the original shipment quantity is 50, and you enter 10 here
(10%), Purchasing automatically closes the shipment for receiving when you receive 45 or
more. Closed for Receiving is a status change only. You can receive additional items
against the shipment later.
nvoice Close Tolerance: Enter the percentage tolerance Purchasing uses to automatically
close purchase order shipments. Purchasing automatically closes a shipment when your
uninvoiced quantity is within the quantity tolerance percentage of the shipment. For
example, if the original shipment quantity is 50, and you enter 10 here (10%), Purchasing
automatically closes the shipment for invoicing when you invoice match 45 or more.
Closed for nvoicing is a status change only. You can invoice match additional items
against the shipment later.
UN Number: Enter the United Nations identification number. Purchasing uses UN numbers
to identify specific materials (hazardous materials, for example) for international trade
purposes.
Hazard Class: Purchasing uses hazard classes to identify categories of hazardous
materials for international trade purposes.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 13
List Price: Enter the value that Purchasing uses as the default price on a purchase order,
requisition, RFQ, or quotation. Receivables uses this value as the default unit selling price
on a transaction. Note that this is the original inventory item price used by Purchasing and
therefore should be used as a guide only.
Market Price: Enter the market value for an item. Purchasing copies the market price to
the purchase order lines you create.
Price Tolerance: Enter the price tolerance percent, the maximum price percentage over
the normal price range for an item. For example, if the tolerance percent is 5, the
maximum acceptable price on a purchase order is 5% over the requisition price. Any
purchase order price 5% above the requisition price is unacceptable, and you cannot
approve the purchase order.
Rounding Factor: Enter a number between 0 and 1. This factor determines how to round
the quantity on an internal requisition that results from conversions between the requisition
line unit of measure and the item's Unit of ssue. This factor insures that the unit of issue
resolves to an integer, rather than a fractional amount. For example, suppose the
requisition line unit of measure is each, and the unit of issue is dozen. For an internal
requisition of 20 each, Purchasing converts the order quantity to 1.75 dozen. With a
rounding factor of 0.6, Purchasing rounds up the order quantity to 2 dozen. (Rounding
factor of 0.75 also rounds up to 2 dozen.) With a rounding factor of 0.8, Purchasing rounds
down to 1 dozen. Purchasing either performs rounding automatically or advises you of the
suggested quantity depending how you set your purchasing options. This attribute is
controlled at the Organization level only.
Expense Account: This attribute is controlled at the Organization level only. Enter the
default inventory account for expense items. This attribute is used only when nventory
Asset Value is turned off. Purchasing debits this account when you receive an item into
inventory only if the item is being expensed. f you receive into an expense subinventory,
Purchasing uses this account first; if you do not define the account here, Purchasing uses
the expense account you assigned to the subinventory.
Asset Category: Enter the asset category to which the item belongs. Assets uses this to
classify your fixed assets. All assets in a category share default information, such as the
accounts used when you post to the general ledger. You can enter this field only if you
use Assets.
nternal Ordered: ndicate whether to allow an item to be ordered on an internal requisition.
f you turn this attribute on, you can temporarily exclude an item from being ordered on an
internal requisition by turning nternal Orders Enabled off. This is an item defining
attribute. f you turn this attribute on, the item is automatically assigned to the default
category set for the Purchasing functional area.
nternal Orders Enabled: ndicate whether you can currently order an item internally. f you
turn this attribute on, you can specify the item on an internal requisition if nternal Ordered
tem is also on. f you turn nternal Ordered tem on, you can temporarily exclude an item
from being ordered on an internal requisition by turning this attribute off. This attribute is
optionally set by the tem Status code.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 14
Defining tem Relationships - Purchasing

Define Item Relationships - Purchasing
Purchasing Responsibility
(N) Items > Item Relationships
All of the item relationships aid in helping to search for items. Use the item relationships
windows to establish the following:
Cross-References types For example, if you renamed your items, you might want to
establish a cross reference between the old item number and the new item number. n
this example, you would need to establish the type of cross reference such as old number.
After the relationship is established, the user would assign the items to the type.
Related and Substitute tems Use the item relationships form to establish substitute and
related item relationships. The substitute items are used by purchasing when the allow
substitute item functionality is needed in receiving. f the supplier ships a part that is not on
the purchase order, if Allow Substitutes is valid for that item, and if the substitute
relationship is established, the receiving group can receive the substitute part.
Manufacturers Part Number
You can establish suppliers and their part numbers on the Manufacturer Part Numbers form
and link them to your item numbers. This will aid in item search.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 15
Agenda

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 16
Central Procurement

Central Procurement
You can access global blanket agreements and global contract agreements, which reference
purchase orders in many operating units. For each requesting operating unit permitted access
to a given global blanket agreement or global contract, the optimal Purchasing operating unit
and supplier site can be identified for placing the purchase order (PO).
Similarly, when using Autocreate to create purchase orders from requisitions, buyers can
choose the Purchasing operating unit and supplier site in which to create the PO. You can
base financial settlement on the detailed financial flow associated with the physical flow of
goods to ensure proper accounting to all operating units involved in the procurement process.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 17
Central Procurement

Central Procurement
n a centralized or shared procurement services environment, the factory for goods needed to
build finished assemblies generates demand and creates a requisition for the material. Based
on a global agreement, the Shared Procurement Service center then places a PO on behalf of
the factory, with a ship to location of the factory. The shared procurement service center
owns the purchase contract, and is liable to the supplier for payment. The supplier builds the
product and ships directly to the requesting organization, as denoted by the dashed line in the
diagram above.
Upon material receipt in the factory, material ownership automatically transfers through the
shared procurement service center and then to the factory. The supplier invoices the shared
procurement service center, who, in turn, invoices the factory, as denoted by the solid line in
the diagram above. The internal invoice can be done at either the PO price or a transfer price.
Note that the factory and shared procurement service center need not be in the same
operating unit or even set of books. The shared procurement service center may have
authored the referenced global agreement or may simply be the designated Purchasing
organization for these specific goods on behalf of this specific factory.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 18
Document Access Levels

Purchase Requisitions: Document Access Levels
n addition to the security level, you specify an access level to control what modification and
control actions you can take on a particular document once you gain access. Document
owners always have full access to their documents.
Access level options include:
View Only Accessing employees can only view the document. Only the document owner
may modify or control the document.
Modify Accessing employees can view, modify, freeze and close the document.
Full Accessing employees can view, modify, freeze, close, cancel and finally close the
document.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 19
Security, Approval Limits, and Approval Routing Options

Security, Approval Limits, and Approval Routing Options
Document security, approval and routing is controlled by document type and powered by
Oracle Workflow. Oracle Purchasing document types include the following:
Requisitions - Purchase and nternal
Requests for Quotations - Bid, Catalog and Standard
Quotations - Bid, Catalog and Standard
Purchase Orders - Standard and Planned
Purchase Agreements - Blanket and Contract
Releases - Blanket and Planned
You cannot enter new document types; you can enter new document subtypes only for RFQs
and quotations. Not all fields on the document types window apply to each document type.
Through Oracle Purchasing, you control which groups of employees have access to each
document type and which actions these individuals can take once they gain access. You set
the security and access levels for the various document types. For each job or position, you
will be able to establish approval authorization rules that define whether the person holding
the job or position can approve the document. You can route documents using the
employee/supervisor relationship or using position approval hierarchies.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 20
Agenda

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 21
Purchase Requisitions

Purchase Requisitions
A requisition is an optional starting point in procurement. Through requisitions, employees
can enter requests for products and services, which are transmitted to the procurement staff.
Requisitions within Oracle Purchasing contain information regarding the accounts that should
be charged for the purchase along with details such as delivery location and approvals based
upon company policies. With Oracle Purchasing/iProcurement you can:
Create, edit, and review requisition information online; enter suggested supplier
information, delivery instructions, multiple accounting distributions, and notes to buyers,
approvers, and receivers; know who approves requisitions and whether they are in the
approval, purchasing, receiving, or delivery stage.
Route requisitions according to your approval structure; set authorization limits by amount,
charge account, item category, and location; review and approve requisitions needing
approval, full requisition detail, and action history before requisition approval. f your
business process requires off-line review and approve, you can print requisitions (with
status Approved, Cancelled, Rejected, n Process, Pre-Approved, and Returned).
mport requisitions from other systems, such as material or distributions requirement
planning applications.
Transfer requisition data to the purchase order documents using automated processes.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 22
Purchase Requisitions

Purchase Requisitions
n addition to the manual creation of online requisitions, you can use Oracle ASCP/MRP,
planning applications, to generate requisitions based upon the planning requirements of your
organization. Oracle nventory can generate requisitions based upon replenishment
requirements. Outside processing requirements can be generated into requisitions by Oracle
Work n Process. Oracle Order Management generates requisitions based upon the need to
drop ship goods to customers directly from your suppliers.
nternal processes, such as internal sales orders are initiated from the requisition process as
well. The internal requisition document passes information to Order Management for the
shipment of goods and services within your own company.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 23
Purchase Requisitions

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 24
nformation Flow

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 25
Agenda

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 26
Professional Buyer's Work Center

Professional Buyers Work Center
The Professional Buyer's Work Center speeds up daily purchasing tasks by providing buyers
with a central launch pad from where they can efficiently perform their daily tasks, such as:
Viewing and acting upon requisition demand
Creating and managing orders and agreements
Managing contract deliverables
Running negotiation events, including auctions and RFxs
Managing supplier information
You have the option to use either a forms-based interface or the Professional Buyer's Work
Center.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 27
Benefits

Professional Buyers Work Center Benefits
There are several advantages to using the buyer's work center:
Purchasing departments that operate as shared service centers can take advantage of
accessing documents across the multiple operating units that they service without having
to switch responsibilities.
The web-based interface of the work center is designed to enable buyers to perform their
tasks easily and quickly. One of the ways that this is achieved is by reducing the number
of drilldowns buyers need to access to create purchasing documents.
The work center helps buyers prioritize their tasks through the use of views. Oracle
Purchasing provides several pre-seeded views, such as the ability to view all documents
that are incomplete or all schedules that are past due. However, buyers can also create
their own views based on their particular responsibilities.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 28
User nterface

User Interface
Responsibility: Purchasing
Navigation: Buyer Work Center > Orders
The tab structure in the work center is:
From the Requisitions tab, buyers can process requisition demand into purchase orders or
sourcing events. n addition, buyers can view existing requisitions that are in the system.
Standard Purchase Orders are created and managed in the Orders tab, while Blanket and
Contract Purchase Agreements are created and managed in the Agreements tab.
The Deliverables tab allows the buyer to manage deliverables from Procurement
Contracts.
The Negotiations tab allows the buyer to quickly and easily access Oracle Sourcing.
The Suppliers tab houses information about your supply base.


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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 29
Agenda

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 30
Request for Quotation

Request for Quotation
A request for quotation (RFQ) is a document you use to solicit supplier quotations for those
goods or services. Not all purchase requisitions require an RFQ, and you do not need a
purchase requisition to create an RFQ. However, if the RFQ required check box is selected on
a requisition, an RFQ is required for that requisition.
Supplier Lists
Although you may send an RFQ to one supplier, usually you will want to send a request for
quotation to many suppliers to ensure that you get the best price and terms possible. With
Oracle Purchasing you create supplier lists so that you can predefine groups of suppliers to
whom you want to send RFQs. You can establish supplier list according to criteria you define,
such as item, manufacturing category, geographic location or more.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 31
Agenda

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 32
Sourcing Rules

Sourcing Rules
Purchasing Responsibility
(N) Supply Base > Sourcing Rules
Sourcing defaults can dramatically increase operational efficiency. They can:
Automatically allocate planned orders across different suppliers using percentage splits
Define global or local rules for individual items and entire commodities
Maintain sourcing details at supplier and site
Define effective dates for each rule
Assign sourcing rules at different levels using an assignment set
Classify and rank multiple sources
Sourcing rules define for an organization or a group of organizations replenishment sources
that can be applied to specific items. With sourcing rules that are made up of multiple
suppliers, you can assign allocation percentages to each supplier and rank the suppliers if the
percentages are equal.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 33
Create a Sourcing Rule

Create a Sourcing Rule
Enter an allocation percentage for each shipping organization. Allocation percentage includes
the number of planned orders issued over the specified planning horizon. Your total allocation
may not exceed 100% for each rank. f the allocation percentage for all shipping
organizations included within a range of effectivity dates equals 100, Planning Active is
checked. f planning is not active for the sourcing rule, the planning process will not use the
rule.
For requisitions submitted in Purchasing, the percentage allocations are completely ignored.
To determine which supplier is defaulted onto the requisition, Purchasing chooses the supplier
with the highest percentage regardless of the rank. When two suppliers share the same
percentage and that percentage is higher than any other supplier, the rank determines which
supplier defaults onto the requisition.
Supplier catalogs are loaded into iProcurement with sourcing information included. f the
catalog is external, a specific supplier or marketplace hosts the items so they are already
linked to a supplier.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 34
Create a Sourcing Rule Assignment

Create Sourcing Rule Assignment
Purchasing Responsibility
(N) Supply Base > Sourcing Rule Assignments
Using the MRP: Default Sourcing Assignment Set profile option in the Profile Options window
at the Site level. The assignment set you specify in this profile option is automatically
assigned to every MPS, MRP and DRP in the organization. You can override this default
when you define the material plan options, but only in Supply Chain Planning.
Note: For Purchasing to use the sourcing rule, the sourcing rule must be added to the
assignment set specified by the MRP: Default Sourcing Assignment Set profile option. f
users add sourcing rules to any other assignment set, Purchasing will not pick them up. This
is the primary reason some customers can't get their POs and requisitions to source
automatically.
Assign the Rule to One of Six Levels
tem/inventory organization combination
tem
Category/inventory organization combination
Category
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 35
nventory organization
Global
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 36
Levels of Sourcing Rule Assignments

Levels of Sourcing Rule Assignments
The assignments are listed in order of precedence. For example, sourcing rules assigned to
the tem/nventory organization level will take precedence over all others. Sourcing rules
assigned to any level will override sourcing rules assignments that are Global.
When an item and category are specified on a requisition, Purchasing will first look to see if an
assignment exists for that item and the inventory organization for which it is being
requisitioned. f an assignment is found, the sourcing rule associated with the assignment is
used to determine the supplier that will default on to the requisition. Purchasing will select the
supplier with the highest percent allocation, regardless of rank.
f an assignment is not found, Purchasing will look to see if an assignment exists for the item.
f the assignment is found, the sourcing rule associated with the assignment is used to
determine the supplier that will default on to the requisition. And so on.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 37
Sourcing Rules with an ASL Source Document

Sourcing Rules with an ASL Source Document
f an approved supplier list is defined for a specific item with a supporting source document
and both sourcing rule assignments and sourcing rules are defined, the supplier and supplier
site information defaults based on the sourcing rule assignment, the sourcing rule and the
source document information on the approved supplier list.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 38
Agenda

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 39
Purchase Orders Process

Purchase Orders Process
Purchase order creation begins the ordering process. Oracle Purchasing helps you to create
several different types of purchasing documents: standard and planned purchase orders,
blanket and contract purchase agreements, blanket and scheduled releases, to meet
procurement team needs, while maintaining corporate policies and standards.
With Oracle Purchasing/iProcurement you can:
Review all of your purchases with your suppliers to negotiate better discounts.
Create purchase orders by entering a supplier and item details, such as quantity, price,
service amount, and copy them.
Create standard purchase orders and blanket releases from both on-line and paper
requisitions.
Create accounting data so that you charge purchases to the appropriate departments.
Check your funds availability while creating purchase orders.
Review purchase order status and history.
Print purchase orders flexibly by using a number of print options.
nform your suppliers of your shipment schedule requirements.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 40
Record supplier acceptances of your purchase orders. You always know whether your
suppliers have received and accepted your purchase order terms and conditions.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 41
Origin

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 42
nformation Flow

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 43
Management nterfaces

Purchase Order: Management Interfaces
Requisitions Open Interface Loaded from a various sources: flat files, Oracle nventory,
Oracle Work in Process (WP), Oracle Material Requirements Planning (MRP), and Oracle
Order Management. Use the Requisition mport process to import requisitions from other
Oracle or non-Oracle systems. For example, send drop-ship orders from Order Management
and Kanban orders from nventory to the requisition interface table to convert into requisitions.
mport project and task data from Master Scheduling/MRP through the Requisition mport,
which creates a requisition line and requisition distributions for each row it finds in the
interface table and then groups them according to define parameters.
You can create releases each time you run the Requisition mport process. For example,
when you implement planned orders as requisitions in the MRP Planner Workbench, you can
automatically create releases at the same time you create requisitions. Oracle Purchasing
automatically creates and optionally approves the releases for all blanket-sourced, approved
requisitions as part of the Requisition mport process, not just those created by the Requisition
mport run. You can place requisitions you imported on purchase orders just as you would
any other requisition. Oracle Purchasing automatically sources your requisition line to a
blanket agreement or catalog quotation number if the supplier for the item is in the Approved
Supplier List and if sourcing rules are set up for the item.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 44
Purchase Order Releases Oracle Purchasing can automatically create purchase order
releases from blanket purchase agreements and planned purchase agreements based on
demand indicated by requisitions for goods on those documents.
Purchasing Documents Open Interface Receives price/sales catalog information and
responses to requests for quotation (RFQs) electronically from suppliers in the form of blanket
purchase agreement lines or catalog quotations. Oracle e-Commerce Gateway imports
catalog data into the Purchasing Documents Open nterface and finally into Purchasing.
Receiving Open Interface Processes receipts loaded by the e-Commerce Gateway, from a
flat file, for example if bar-coding is used, or ASNs and ASBNs loaded through the iSupplier
Portal. After receipts are loaded, you run the Receiving Transaction Processor to validate
them. Confirm receipts using the Confirm Receipts window or through a notification sent by
the Confirm Receipts workflow before they create accruals and can be delivered to their final
destination.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 45
Purchasing e-Commerce Capabilities

Purchasing e-Commerce Capabilities
Oracle e-Commerce Gateway handles ED (Electronic Data nterchange) transactions. This
slide identifies the purchase order related transactions.
Purchase Order (850/ORDERS) and Purchase Order Change (860/ORDCHG)
These transactions help your organization to send purchase orders and purchase order
changes to the supplier electronically.
Price/Sales Catalogue (832/PRICAT)
This transaction provides suppliers with the ability to create and maintain pricing within Oracle
Purchasing. Specifically, the supplier can create and update blanket purchase agreements.
Response to Request for Quotation (843/QUOTES)
This transaction provides suppliers with the ability to respond to request for quotations (RFQ)
electronically.
For details of the actual content of these transactions, see the Oracle e-Commerce Gateway
mplementation Guide and the spreadsheet layouts available from Oracle MetaLink.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 46
Purchasing XML Capabilities

Purchasing XML Capabilities
Oracle XML Gateway handles XML (eXtensible Markup Language)transactions. This slide
identifies the purchase order related transactions.
Purchase Order and Release against Blanket PO (PROCESS_PO_007)
Using XML to transmit Oracle Purchasing purchase orders helps a buyer to accurately and
securely send purchase order information to the supplier.
Purchase Order Change (CHANGE_PO_006)
Buyers can also send information relating to changes made to an existing purchase order
using XML.
For details of the actual content of these transactions, see the Oracle Purchasing R12 XML
Transaction Delivery Setup Guide.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 47
Creating Purchase Orders

Creating Purchase Orders
Purchase Order Types Designed in Oracle Purchasing for different business requirements.
Standard Purchase Order (PO) A one-time commitment to purchase goods or services.
You create standard purchase orders when you know the details of the goods or services,
estimated costs, quantities, delivery schedules, and accounting distributions.
Planned Purchase Order (long-term) For goods or services purchase, tentative delivery
schedules, and accounting distributions. Create planned releases to authorize shipment.
Blanket Purchase Agreement (long-term) For stable pricing over the agreement life and
flexible order quantity commitments and delivery schedules. Pricing on blanket purchase
agreements can include break pricing. Use this agreement when negotiating volume
discounts on individual items. Create blanket releases to authorize suppliers to ship.
Contract Purchase Agreement For negotiating pricing to manage terms and conditions.
Authorize suppliers to ship through standard purchase order lines referencing the contract.
Contracts can be coupled with a catalog quotation to reference pricing on a per item basis.
Global Agreement Helps buyers negotiate enterprise-wide pricing, business by business,
then execute and manage in one central shared services environment. Access the
agreement to create purchase orders leveraging the pre-negotiated prices and terms.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 48
Maintaining Purchase Orders

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 49
Agenda

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 50
Printing and Communication

Printing and Communication
You can define your own PO layouts, including company logos, headers, footers, and
watermark. Once a document has been generated, you can transmit it using the supplier's
preferred communication mode, including e-mail, fax, or regular mail. You can preview PDF
PO output documents prior to approval or communication and view previous PO revisions in
PDF format.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 51
Document Attachments

Document Attachments - Description
The PDF that is generated for each purchasing document lists all of the related attachments.
n addition, buyers can email these attachments to suppliers. The attachments are sent as a
.zip file along with the PDF. Built-in error handling assists buyers and suppliers if there are
problems communicating the attachments.



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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 52
Document Attachment Types

Document Attachment Types
There are no limitations to the types of attachments that can be sent to a supplier.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 53
Setup Define Purchasing Options

Setup Define Purchasing Options
Responsibility: Purchasing
Navigation: Setup : Organizations > Purchasing Options
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 54
Agenda

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 55
Receiving Process

Receiving Process
With Oracle Purchasing/iProcurement, you can control ordered items through receiving,
inspection, transfer and internal delivery to control the quantity, quality and internal delivery of
the items. You can also:
Use routing controls at the organization, supplier, item, or order level to enforce material
movement through receiving, such as tem inspection and and dock-to-stock receipts.
Define receiving tolerances at the organization, supplier, item, and order level, with the
lowest level overriding previous levels. Define tolerances for receipt quantity, on-time
delivery, and receiving location; assign tolerances to low-value items consumed at high
volumes; set enforcement options to ignore, warn, or reject transactions in violation.
Specify match approval levels in two-, three-, and four-way match approval levels on a
purchase order line. Purchasing uses your receiving and inspection information for only
you to accept and pay for ordered, received, or inspected items. Choose the three-way
match approval level to receive items before payment. Choose the four-way match
approval level to inspect and accept receipts before authorizing payment.
Use Advance Shipment Notices (ASNs) to enter receipts in the Enter Receipts window,
reducing data entry time.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 56
Print the receiving and inspection documentation. For example, you can prepare for
incoming receipts by printing the Expected Receipts Report to identify expected items and
quantities receipts satisfying an urgent demand, plan your work, an identify and control
unexpected receipts. Print summary and detail receiving transaction reports by item,
supplier, purchase order number, and/or receiving date range.
Track, update, and record the receipt of intransit and inter-organization shipments.
Record receipt of unordered items based on your item, supplier, or organization defaults.
For example, if your organization does not allow receipt of unordered items, you should
not be able to enter a receipt unless it is matched to an order shipment.
Automatically update related supply data, inventory balances, WP operations, requisition
and purchase order details while entering a single receiving transaction.
Receive services, inventory, expense, and outside processing items using one screen.
Acknowledge receipt of services by receiving amounts of the service, generally related to
receipt of an invoice. Receive inventory items to expense or asset subinventories,
expense items to the requestor, and outside processing to the shop floor (designated
operations in your manufacturing process).
Distinguish closed for invoicing from closed for receiving. Purchasing automatically closes
your purchase order for receipt when it is fully received. You can manually close partially
received purchase orders if you no longer expect any more receipts against them.
Manage close for invoicing and close for receiving using tolerances. You can specify that
when you have received a certain percentage of a shipment, Purchasing will close the
receipt. This is a soft close and you can reopen the receipt. Oracle Purchasing rolls up
closing to the line and header level and Closed information does not show in the Open
Purchase Orders report. f there is a remaining balance, closed quantities are no longer
visible as supply scheduled receipts to MRP/ATP.
Decide how you accrue un-invoiced receipts. You can accrue receipts perpetually or at
period-end for expense items. Oracle Purchasing uses perpetual accrual for inventory and
shop floor item receipts, automatically recording accrued liability in general ledger as you
enter receiving transactions and providing complete visibility and control of inventory
values, accrued liabilities for inventory and non-inventory items, purchase price variances,
and invoice price variances. t provides needed data to facilitate period close and
inventory, purchasing, and payables reconciliation process. Oracle Purchasing and
nventory together provide perpetual visibility and control on accrued liabilities for inventory
items. nventory maintains the inventory value on a perpetual basis.
Track the quantity and destination of internally delivered items You know exactly what items
you receive and where to deliver them within your organization.
Define which of your items require inspection. Oracle Purchasing helps you inspect
received items before you move the items into stock or deliver them to the requestor. You
can accept or reject items and provide detailed information about your inspection results.
Purchasing lets you review your inspection results online. You can review your inspection
results by receipt number, purchase order number, supplier, item, and/or transaction date
range. Oracle Purchasing also provides summary and detail reports to help you analyze
your suppliers' performance. You can produce supplier quality reports by buyer, supplier,
and item. You can use the receiving inspection register to review your inspections by
receipt.
Correct receiving transaction errors. Purchasing automatically updates the inventory
balances if you correct the quantities of items that have already been moved into
inventory.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 57
Receiving in Oracle Purchasing

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 58
Open nterface

Receiving: Open Interface Enhancements
Through receiving open interface (RO), you can manage high volume receiving environments
that use barcode readers & RF devices. The following functions and transactions are
available through the open interface:
Acceptance and rejection of inspected goods
Transfers within the receiving area
Return of goods
Corrections of previous receiving transactions
Note that the open interface does not support unordered receipts and matching unordered
receipts that were entered through the forms supported by the RO.
You can record multi-stage receiving transactions such as related receipt, transfer, and deliver
transactions. You can also enter lot/serial data at any time in the receiving process. Even
suppliers can enter lot/serial data on Advanced Shipment Notices (ASN) that flow through the
system, thereby reducing time spent on manual entry and increasing information accuracy .
For companies using container based receiving transactions or receiving transaction based on
License Plate Numbers (LPN), suppliers can enter on the ASN through the open interface
when they include Lot/Serial and LPN information on ASNs. The resulting in-transit shipments
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 59
and subsequent receipt transactions captures this data automatically, reducing manual data
entry at time of receipt and increasing data accuracy.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 60
Agenda

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 61
Purchasing Accounting Considerations

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 62
Purchasing Period-End Accrual Cycle

Setup: Purchasing Period-End Accrual Cycle
An important example of interaction between Oracle Purchasing and Oracle General Ledge
that may influence accrual setup decisions during implementation.
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 63
Accounting mplementation Considerations

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 64
Quiz

Answer: a, b, c
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 65
Quiz

Answer: a
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 66
Quiz

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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 67
Quiz

Answer: c
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Copyright Oracle, 2010. All rights reserved.
Purchasing Overview
Chapter 5 - Page 68
Summary

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 1
Payables Overview
Chapter 6
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 2
Payables Overview

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 3
Objectives

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 4
Agenda

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 5
Agenda

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 6
Payables Process

Payables Process
Note that the Payables product fits within the procure to pay process flow, including entering
suppliers.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 7
nvoice Structure

Invoice Structure
Invoice Header
The invoice header defines the common information about the invoice: invoice number and
date, supplier information, remittance information, and payment terms. f matching to a
Purchase Order, the PO Number can be entered at the line level to create the common
information and allow the invoice to be matched to the invoice. nformation specified at the
invoice header level defaults down to the line level. You can override the header level
information for individual lines, as required.
Invoice Lines
The invoice lines define the details of the goods and services as well as the tax, freight, and
miscellaneous charges invoiced by the supplier. There can be multiple invoice lines for each
invoice header. The Lines tab of the nvoice Workbench captures all of the details for the
invoice line necessary for accounting, as well as for cross-product integration with other
Oracle E-Business Suite applications, such as Assets, Grants Accounting, nventory, Projects,
Purchasing, Property Manager, and Receivables.
For each invoice, you can manually enter invoice lines, or you can automatically generate
lines by matching the invoice to a purchase order shipment, pay item, or receipt.

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 8

Scheduled Payments
nvoice payment details including scheduled payment date, amount and priority. Scheduled
payments are created based on payment terms when the invoice header is saved. An invoice
header can have one or more scheduled payments.
Note: Scheduled payments are not directly related to specific invoice distributions and invoice
distributions are not directly related to specific schedule payments.
Distributions
Distribution details include invoice accounting details, the GL date, charge accounts, and
project information. An invoice line can have one or more invoice distributions.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 9
Types of nvoices

Types of Invoices
Mixed
An invoice type you enter for matching to both purchase orders and invoices. You can enter
either a positive or a negative amount for a Mixed invoice type.
Prepayment
A type of invoice you enter to pay an advance payment for expenses to a supplier or
employee. This is not entered on the Standard invoice form.
Expense Report
An invoice representing an amount due to an employee for business-related expenses.
Withholding Tax
An invoice you enter to remit taxes withheld to the appropriate tax authority.
Interest
For interest invoices, payables will automatically calculate interest for overdue invoices and
create interest invoices for selected suppliers.
PO Price Adjustment
This invoice is for the difference in price between the original invoice and the new purchase
order price.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 10
QuickMatch
You enter a purchase order number at the line level, and Payables automatically copies
supplier information and when the quickmatch button is activated the invoice is matched to
every open shipment on the purchase order. The invoice type of Standard is initially chosen.
PO Default
You enter a purchase order number on the line level, and Payables automatically copies
supplier information from the purchase order. When the match button is activated matching
can be performed on individual lines or shipments. The invoice type of Standard is initially
chosen and after the match.
Debit Memo
An invoice you enter to record a credit for a supplier who does not send you a credit memo.
Credit Memo
A memo from a supplier representing a credit amount toward goods or services.
Standard
An invoice from a supplier representing an amount due for goods or services purchased.
Standard invoices can be either matched to a purchase order or not matched.
Transportation invoices
An invoice from a supplier representing an amount due for freight charges.
Retainage Release
An invoice from a supplier representing an amount retained for complex payments.

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 11
nvoice Lines

Invoice Lines
Oracle Payables incorporates nvoice Lines into the invoice model. Adding nvoice Lines
enables Oracle Payables to model the paper or electronic business document yet maintain
key features that exist at the invoice distributions level.
nvoice Lines support the representation of the goods or services as well as tax, freight, and
other charges as lines with distributions tied to each line. Additional fields record attributes
such as serial numbers and item descriptions. This feature offers the ability for line level
approval and matching between an invoice line and a purchase order shipment pay item, or
receipt. Furthermore, it facilitates the capture and transfer of additional, pertinent information
to and from Oracle Projects and Oracle Assets.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 12
Line Types

Line Types
Each invoice Line has one and only one line type.
Item
Records the amount a supplier charges for goods or services purchased.
Tax
Records the sales or other tax amount due on goods or services purchased.
Freight
Records the amount a supplier charges for shipping and handling.
Miscellaneous
Records the amount for miscellaneous expenses on an invoice.
Retroitem
Records the amount of expense created by Retropricing.
Retro Tax
Redistributes the tax as a result of Retropricing.

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 13
Distribution Types

Distribution Types
Each invoice distribution has one and only one distribution type.
Item
Records the amount a supplier charges for goods or services purchased.
Tax
Records the sales or other tax amount due on goods or services purchased.
Miscellaneous
Records the amount for miscellaneous expenses on an invoice.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 14
Matching to a Purchase Order

Matching to a Purchase Order
Match your billed (invoice) items to the original purchase orders, purchase order distributions,
or receipts so that you pay only for the goods or services you ordered. f you are billed for an
item in excess of the amount and quantity tolerances you define in the nvoice Tolerances
window, the Payables Validation process will apply a hold to the invoice. nvoice holds
prevent payment.
You can match a single invoice to multiple purchase order shipments and distributions, or you
can match multiple invoices to a single purchase order shipment or distribution provided the
supplier is the same on all purchase orders. When you match an invoice to a purchase order
or receipt, Payables creates invoice distributions using the purchase order distribution
accounting information. You cannot delete invoice distributions that were created through
matching. f you match an invoice to the wrong purchase order, either reverse the individual
distributions and then rematch to the correct purchase order, or cancel the invoice.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 15
Match Approval Level Options

Match Approval Level Options
The match approval level defaults to purchase order shipment lines when the purchase order
is entered. You can override the default on the purchase order shipment. f you find that you
are frequently overriding this value, change the default at the supplier site level. When
quantities and prices exceed specific tolerances you define, the Payables Validation process
will place a matching hold on the invoice. You can configure matching holds so manual
override is not possible in the nvoice Holds and Release Names window.
2-Way (Invoice to Purchase Order)
Quantity billed vs. quantity ordered on shipment line
nvoice unit price vs. purchase order line unit price
3-Way (Invoice to Purchase Order and Receipt)
2-Way match criteria AND
Quantity billed vs. quantity received
4-Way (Invoice to Purchase Order and Receipt and Inspection)
3-Way match criteria AND
Quantity billed vs. quantity accepted
Note that Quantity accepted = (Quantity received - quantity rejected).
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 16
Purchase Order Shipment Match

Purchase Order Shipment Match
Based on the quantity invoiced, Payables prorates the match amount across all non-fully billed
purchase order distributions associated with the purchase order shipments you match to.
When the invoice is matched to the shipment, all 6 items will be charged to department 110.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 17
Receipt Match

Receipt Match
When the invoice match option is set to Receipt for the purchase order shipment you will not
be able to match unless a receipt has been processed. The nvoice Match Option defaults in
the following manner: Financials options > Supplier > Supplier Site > Purchase Order
Shipment. The value on the purchase order shipment controls what you match to. The value
can be set to either Purchase Order or Receipt.
Purchase Order - Match invoices to purchase orders.
Receipt - Match invoices to purchase order receipts. Keep in mind that in order to match
to a purchase order with a match approval level of receipt, the receipt must be
processed before you attempt to match the invoice. The same information that is
maintained on the purchase order when you use the invoice match option of Purchase
Order is maintained on the purchase order when you use a invoice match option of
Receipt.
Match receipts to pay only for goods you receive. Exchange rate variance is likely to be
smaller because the time between the receipt and invoice is less than the time between the
purchase order and invoice. When you allocate freight, tax or miscellaneous charges to an
invoice distribution line matched to a receipt, the acquisition cost of the material will be more
accurately reflected if you are using periodic costing.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 18
Matching to Distributions for Assets

Matching to Distributions for Assets
The charge account on the purchase order for an item that will be capitalized and depreciated
is a balance sheet account and will be a clearing account associated with an asset category
(like COMPUTER-PC) in Assets. After matching, the asset clearing account will be on the
distribution for the invoice. When the asset is prepared and posted to Assets, the clearing
account is cleared and the asset cost account associated with the asset category is charged
for the cost of the asset. Payables transfers the asset clearing account to the general ledger
and Assets transfers the clearing account clearing entry and the asset cost entry.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 19
nvoices: Matching to Distributions for Expenses

Invoices: Matching to Distributions for Expenses
The charge account on the purchase order for an item that will be expensed, such as office
supplies, is an income statement account.
After matching, the expense account is transferred to the invoice distribution if you are
accruing at period end.
When accounting is transferred to the general ledger, the amount charged to the expense
account can be reported on the income statement.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 20
nvoices: Matching to Distributions for nventory

Invoices: Matching to Distributions for Inventory
The purchase order charge account for an item that will be capitalized as inventory is a
balance sheet account and will be a material clearing account associated with an inventory
organization in nventory. After matching, the nventory AP Accrual account will be on the
distribution for the invoice. When the receipt is processed, the AP Accrual account,
uninvoiced receipts account, is credited. When booking the invoice and matching, the receipt
is now invoiced and the balance in the AP Accrual account must be cleared. At receipt,
Purchasing transfers or credit the accrual to the AP Accrual account. After matching, Payables
transfers the clearing entry to the AP Accrual Account as part of the Payables Transfer to GL
process.
Amount-based Matching
You can match invoices to purchase orders based on an amount only. The purchase order
(PO) determines whether the invoices matching for the PO should be based on quantity or
amount, instead of users matching invoices to purchase orders based always on quantity and
price. The self-service invoice entry capability in Oracle iSupplier Portal has also been
enhanced to support this new feature.

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 21
The purchase order (PO) determines whether the invoices matching for the PO should be
based on quantity or amount, instead of users matching invoices to purchase orders based
always on quantity and price. The self-service invoice entry capability in Oracle iSupplier
Portal has also been enhanced to support this new feature.

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 22
nvoice Approval Workflow Resubmission

Invoice Approval: Workflow Resubmission Enhancement
Oracle Payables' nvoice Approval Workflow requires the resubmission of invoices to the
workflow process if the invoice amount is changed either if the invoice is already approved, or
if the invoice is in the process of being approved.
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Payables Overview
Chapter 6 - Page 23
Gapless nvoice Numbering for Self-Billing nvoices

Gapless Invoice Numbering for Self-Billing Invoices
Oracle Payables can automatically assign gapless, sequential invoice numbers to all self-
billing invoices for a supplier site, meeting certain country-specific invoice numbering
requirements invoices created by the following features:
ERS
RTS (Automatic Debit Memo from Return to Supplier Transaction)
Retroactive Pricing of Purchase Orders
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Payables Overview
Chapter 6 - Page 24
Holds and Releases

Holds and Releases
Holds can be placed manually or by the system. They prevent payment and sometimes,
invoice accounting.
Payables applies holds to invoices that fail the nvoice Validation process.
You release holds from invoices for invoice payment and accounting entry creation.
f you manually release all holds from an invoice, you do not need to resubmit nvoice
Validation before paying or creating accounting entries for it.
nvoice Validation will not place an invoice on the same type of hold that you manually
released.
You must manually release all holds that you apply manually.
System Holds These are all holds other than user-defined holds, such as Distribution
Variance hold, placed by nvoice Validation if the total of the invoice distributions do not equal
the invoice amount. To remove this hold, fix the problem that caused the hold to be placed
and resubmit nvoice Validation. You can manually release some system holds. During
nvoice Validation, Payables automatically releases system holds from invoices with corrected
exception conditions. For example, you fix a distribution variance on an invoice, resubmit
nvoice Validation, and Payables automatically releases the Distribution Variance hold.
Payables applies some holds that you cannot release. You can use the nvoice Holds window
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 25
to view invoices with these holds, but cannot manually release these holds. To correct the
exception that caused nvoice Validation to place the hold on the invoice, update the invoice
or the purchase order or change your invoice tolerances, then resubmit nvoice Validation to
release the holds.
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Payables Overview
Chapter 6 - Page 26
Holds and Releases

Holds and Releases
Manual Holds
You can prevent payment and, optionally, prevent accounting for an invoice by manually
applying one or more holds to it.
Payables provides some generic invoice holds for you but you can define your own holds
based on your invoice validation needs.
Payables does not automatically release holds that you apply to invoices manually.
You will need to manually release those.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 27
nvoice Validation

Invoices: Invoice Validation
Before you can pay or account for an invoice (including prepayments), you must submit
nvoice Validation for the invoice in one of three ways:
System Submit the nvoice Validation program from the Submit Request window.
Batch Use the Validate button in the nvoice Batches window.
Online Use the Validate button in nvoice Actions window.
nvoice Validation validates the matching, tax, period status, exchange rate, and distribution
information for invoices you enter and automatically applies holds to exception invoices. t
checks the supplier site to determine which invoice tolerance template to use. f no invoice
tolerance template is specified, tolerance checking is not performed. f an invoice tolerance
template is specified, nvoice Validation will check against the specific invoice tolerances
template stored in the nvoice Tolerances window to determine if the invoice falls within the
defined tolerances and automatically applies holds to exception invoices.
f an invoice has a hold, you can release the hold by correcting the exception and then
resubmitting nvoice Validation. Correct exceptions by updating the invoice or the purchase
order, or change your nvoice Tolerances. Payables automatically releases the hold when the
exception is no longer an issue. You can manually release certain invoice holds even if you
have not resolved the matching error condition. You can do this in the nvoice Holds window.
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Payables Overview
Chapter 6 - Page 28
You can identify all invoices that Payables has not yet reviewed with nvoice Validation by
submitting the nvoice Register for unvalidated invoices only. You can check the validation
status of an invoice online in the nvoice Overview window or the nvoices window. Payables
and Oracle Alert integrate to alert the appropriate accounts payable or purchasing staff when
you or Payables place an invoice on hold. Oracle Alert also provides an integrated system of
alerts, messages, and message distribution to focus attention on time-sensitive or critical
information and streamline the validation process. Exception reporting in Oracle Alert is
accomplished using either electronic mail or paper reports.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 29
Levels of nvoice Validation

Levels of Invoice Validation
System level validation
Manually submit the Payables nvoice Validation process or schedule it to run periodically
from the Submit Request window. Submit the Payables nvoice Validation process right before
you process payments to update the status on all invoices. Payables will use the Option
parameter to select unvalidated invoices for validation. Enter All to ensure you release any
existing holds on invoices as well as place new holds. Otherwise, nvoice Validation reviews
only those invoice distributions that were not already reviewed by nvoice Validation.
Optionally, enter other criteria to submit nvoice Validation for specific groups of invoices.
Batch level validation
Submit nvoice Validation for one or more invoice batches from the nvoice Batches window.
Batch level validation is only allowed if the Allow online validation Payables option is enabled
also.
Invoice level (online) validation
f the Payables option to allow online validation is enabled, you can submit online validation
for one or more individual invoices when an invoice must be validated and paid immediately.
You can also validate related invoices for credit and debit memos by choosing Validate
Related nvoices in the Actions window after you enter a credit or debit memo.
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Payables Overview
Chapter 6 - Page 30
nvoice level (online) validation is only allowed if the Allow online validation Payables option is
enabled also.
Validation and Approval
The order of the nvoice Validation process and nvoice Approval Workflow Program is based
on the Approval Processing Sequence Payables option. For example, you might want to
validate before you approve to create tax lines and distributions for your invoices.
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Payables Overview
Chapter 6 - Page 31
nvoice Validation Concurrent Processing

Invoice Validation Concurrent Processing
Multiple users per organization can simultaneously run the nvoice Validation program for
invoices they need to validate. This feature significantly improves performance of validating
large number of invoices, instead of Oracle Payables' running the program only once per
organization, wherein each invoice validation instance had to complete before the next could
proceed.
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Payables Overview
Chapter 6 - Page 32
nvoice Processing for Contract Financing, Retainage, and
Progress Terms

Invoice Processing for Contract Financing, Retainage, and Progress Terms
Complex payment terms and conditions for fixed price contracts are captured during the procurement
contract flow. This includes options to schedule points of progress for invoicing, request an advance or
progressive financing support, and record negotiated amounts to retain until completion of the
purchased item, service, or project. These terms and conditions are supported in Oracle Payables
when recording invoices and managing payment execution during the lifetime of the contract.
Financing: Advances and Progressive Contract Financing: Advances are generally one-time
prepayments made before work on the contract begins while contract financing infuses money to
the supplier as work progresses. Oracle Payables ensures that the amounts financed are
recovered by automatically applying financing to subsequent invoices per the specific terms
captured in the purchase order.
Retainage and Retainage Release: Retainage is the common practice of withholding a fixed
amount / percentage of payment until all work under a contract is complete and accepted. The
retainage terms are agreed upon by the buyer and supplier and are intended to make sure that
the supplier finishes the work as per the contract. Retainage is also called 'retention' or
'contractual withholds'. At the end of the project or when agreed events have occurred, the
supplier requests the amount retained and payment is made to release it. Payables automatically
retains per the purchase order on invoices coming in and supports the retainage release and
payment process.
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Payables Overview
Chapter 6 - Page 33
Invoices for Progress: nvoices representing progress are matched to the purchase order,
updating the purchase order with the progress. A percentage of the invoice may be retained and
contract advances and financing may be automatically applied seamlessly bringing together the
relevant contract terms with each invoicing event. n some cases, the progress is reported via a
work confirmation process. Suppliers entering a work confirmation directly in Oracle iSupplier
Portal have a receipt recorded in Oracle Receiving. Pay on Receipt terms recorded on the
purchase order are translated into a self-billed invoice, in Oracle Payables, to be paid.
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Payables Overview
Chapter 6 - Page 34
Agenda

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 35
Setting Up Payables for Expense Reports

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Payables Overview
Chapter 6 - Page 36
Expense Reporting Process

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Payables Overview
Chapter 6 - Page 37
Expense Report mport Program

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 38
Processing and iExpenses

Expense Report Processing and iExpenses
1. Employee creates and submits expense report using web browser (standard) or Excel
spreadsheet (disconnected) expense reporting methods.
2. Workflow notifies the employee's manager or the specified overriding approver, who
reviews the expense report online.
f rejected, the employee is notified via email. Depending on the rejection reason, the
employee may be able to modify report and resubmit using the Modify Expense Reports
option on the nternet Expenses main menu.
f approved, Accounts Payable sends the report for review if the report contains
expenses that require original receipts and/or justification; otherwise, Accounts Payable
approves the report automatically and creates payment. f required receipts are missing
or policy is violated, the Accounts Payable clerk adjusts the report using the AP Expense
Reports window and notifies the employee of the adjustment.
3. Once management and/or Accounts Payable approve, the AP nvoice mport program
converts the expense report into an invoice, and payment is created in Oracle Payables.
4. Employee receives payment via check or direct deposit, depending on company
policy/setup.
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Payables Overview
Chapter 6 - Page 39
Agenda

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 40
nvoice Payments

Invoice Payments
Payables provides a variety of features for fast, controlled payment processing. With Payables
you can do the following:
You can make payments from your disbursement bank accounts by printed checks, wire,
or electronic payments including electronic funds transfer (EFT), electronic data
interchange (ED), and XML.
Pay only invoices that are due and automatically take the maximum discount available.
Note: Oracle Payables automatically reduces the discountable amount by the tax
amount if you select automatic tax calculation at the Line or Tax Code level and if the
discountable amount did not include tax.
Select invoices for payment, using a variety of criteria, and create payments
automatically.
Ensure that duplicate invoice payments don't occur.
Review information online for the result and status of payments.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 41
Payment Manager Terminology

Payment Terminology
Document Payable. A document to be paid by the deploying company (Payer). t may
represent, for example, a Payables invoice or scheduled payment.
Pay Run/Payment Process Request. A pay run is a broad term, which describes the
process by which a group of invoices is selected and processed for payment. t is
roughly equivalent to the Release 11i concept of a payment batch. The term Pay Run is
often used interchangeably with the term Payment Process Request. A payment process
request is technically a request created by a source product for Oracle Payments
payment services. The payment process request, which originates in the source product
during the invoice selection process, contains one or more documents payable to be
paid. During the payment process, the documents payable in the payment process
request are built into payments.
Payee. The person or organization that is being paid. For example, the supplier,
employee, or customer to whom the payment is made.
Payment Instruction. A payment instruction is a collection of payments, along with
aggregate payment information, that is formatted. Depending on the setup, a payment
instruction may be converted into a file to be printed onto checks or into a payment file
that is transmitted to a payment system for further processing and disbursement.
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Payables Overview
Chapter 6 - Page 42
Payment Process Profile. A payment process profile is a payment attribute assigned to
documents payable, which specifies handling of the documents payable, payments, and
payment instructions. Payment process profiles including specifications for payment
instruction formatting and transmission.
- Payment process profiles contain the following information:
payment instruction formatting information
transmission information
payment grouping
payment limits
payment sorting details
Payment Process Request Template. A blueprint that simplifies and expedites pay
runs by pre-selecting pertinent payment data, such as general header information,
payment selection criteria, payment attributes, processing instructions, and how
validation failures are handled.
Payment Format. A set of rules that determine how a payment instruction or settlement
batch is converted into a payment file, readable by a payment system. Payment formats
are registered and maintained in Oracle XML Publisher.
Payment Method. A payment attribute on a document payable. The payment method
indicates the medium by which the deploying company (first party payer) makes a
payment to a supplier (third party payee). Examples of payment methods are checks
printed in-house by the payer, checks outsourced to the bank for printing, and wires.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 43
Using the nvoice Workbench

Using the Invoice Workbench
Payables automatically enters most of the payment information for you.
Prerequisites
Each invoice you want to pay must be validated, uncancelled, and without holds.
f you use nvoice Approval Workflow, the invoice approval status must be Approved for
the invoice to be selected for payment. The invoice approval status is derived from the
approval status of the document maintained at the invoice header and the approval
status of the invoice lines.
f you select more than one invoice, the invoices must have the same supplier site and
currency.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 44
Time Zone Support

Time Zone Support
The Goods Received Date field in the nvoice Workbench window includes the time to support
the Time Zone feature of Oracle Application Object Library (AOL). t records the time based
on your legal entity's time zone.
The Stopped Date and Stop Release date fields in the Payments window and the Schedule
Start and End date fields in the Payment Batch Sets window that already have a date and
time format will display Client time zone, rather than Server time zone if AOL's Time Zone
functionality is selected.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 45
nvoice Payment Methods

Invoice Payment Methods
Check A payment in a payment batch, a Quick Payment, or manual payment.
Clearing Accounts for intercompany expenses when you do not actually disburse funds
through banks. You do not generate a payment document with the Clearing payment
method, but enter Clearing for the payment method when you enter the invoice. You can
record a Clearing payment using a Manual type payment only.
Electronic and Wire Methods The Electronic method enforces a supplier bank account
while the Wire method does not. Use electronic payment to instruct your bank to make
payment to a supplier bank account. Use wire payment to record payment when you
have used a process outside of Oracle Payables system to instruct your bank to pay a
supplier.
Electronic Used when Payables instructs your bank to pay a supplier bank account.
Typically, this communication is an electronic file in a bank-specific format that instructs
your disbursement bank to pay your suppliers. Use this method whenever to generate a
document that requires a supplier bank account. For example, use it if your Payables
system is set up to print letters sent to your bank to request that the bank makes an
electronic funds transfer directly into the supplier's bank account. Payables ensures that
you have recorded supplier bank account information when you use the Electronic
payment method.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 46
Typically, when paying invoices electronically, users use a payment document with a
Computer Generated disbursement type and a payment batch or Quick payment to
create a payment instruction file. The payment instruction file is saved in the ap.out
directory for delivery to the bank, unless one of the following features is used to
automatically transmit the instruction file to the bank: e-Commerce Gateway (for ED
payments), Automatic Bank Transmission, or XML Payment Processing. However, you
can use localizations, custom payment methods, and payment formats to create any
type of communication with your bank when you use the electronic payment method.
Wire Used to manually record payment when you have used a process outside of your
Oracle Payables system to instruct your disbursement bank to pay a supplier. Oracle
Payables does not require supplier bank account data when using this method. When
you define payment documents for these payments, you use the Recorded
disbursement type because you are simply recording a payment made outside of the
system and record the transaction with a manual payment. However, the system allows
you to use any disbursement type. For example, some users who regularly record wire
payments for multiple suppliers use payment documents with the Computer Generated
disbursement type, create an electronic payment batch, and then delete the resulting
electronic file.

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 47
Manual Payment

Manual Payment
When you create a payment outside of Payables, such as a typed check or wire transfer, you
can record the payment within Payables and update the invoice or invoices that you paid.
With a manual payment, you can override some payment controls of Payables. You can
record a single manual payment for multiple Pay Alone invoices. You can record payment for
invoices that are associated with any payment method except Electronic. You can also pay
an invoice for a supplier that has the Hold All Payments option selected.
Prerequisites to process manual payments in Payables:
Create the payment outside of Payables.
Each invoice you paid must be validated, uncanceled, without holds and must have the
same currency as the payment.
The bank account must have at least one payment document that uses the recorded or
combined disbursement type.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 48
Creating Quick Payments

Invoice Payments: Creating Quick Payments
You can create and print a computer generated payment to pay a supplier for one or more
invoices. You can also create a check, save it, then print it later. f you use the ED Outbound
payment format and you use e-Commerce Gateway, then you can create electronic Quick
payments. When you create a quick payment you can select an invoice regardless of the
payments terms and due date. For example, you can create a Quick payment for an invoice
that is not yet due.
Prerequisites:
Enable the Allow Print Payables option.
The invoice(s) must be validated, uncanceled, and without holds.
f you are creating an electronic payment, you must assign supplier banks to your
supplier.
The bank account must have at least one payment document that uses the Computer
Generated or Combined disbursement type.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 49
Creating Quick Payments

Invoice Payments: Creating Quick Payments (continued)
Payment Window
Type Select Quick.
Bank Account Enter the Bank Account you want to make the payment from.
Document Name Enter a payment document name that uses either a Computer-
Generated or Combined disbursement type.
Document Number Optionally, change the payment document number, which defaults
to the next available number for the document name specified.
Supplier/Site Name Enter either the supplier name or number and supplier site.
- Adjust the address different from the supplier site to create payment and select the
Allow Payment Address Change Payables option. You may need to send an
expense check to a consultant working at a site away from home.
- f you record voucher numbers either manually or by using Sequential Numbering,
enter or review voucher information. f the payment currency is different from your
functional currency, enter exchange rate information in the Payment Rate region.
- f paying electronically and you have selected Allow Remit-to Account Override
Payables, you can select a different Remit-to account from the list of values, which
includes bank accounts assigned to the supplier with the same payment currency.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 50
(B) Enter/Adjust Invoices - Click this button to navigate to the Select nvoices window.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 51
Creating Quick Payments

Creating Quick Payments
Select Invoices Window
Select the invoices you want to pay. Optionally choose nvoice Overview to see detailed
information about an invoice.
Return to the Payments Window Payables automatically enters the Payment Amount for
you. Choose Actions to navigate to the Payment Actions window.
Format and optionally print the check To format and print, first verify the payment
document is in your printer, then select Print Now, optionally change the printer name, and
choose OK.
To format only and print the check later, select Format and choose OK. When you are ready
to print, print from the Submit Requests window. You can use the Print Now option in the
Actions window to print only if you print immediately after formatting.
Quick Payment Restrictions:
NUMBER OF NVOCES: You can only pay as many invoices as you defined for the
remittance advice of the payment document.
SAME SUPPLER STE: You can only select invoices that have the same supplier site
as the payment supplier site you enter. You can, however, change the payment mailing
address if the Allow Payment Address Change Payables option is selected.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 52
PAY ALONE NVOCES: f you want to pay multiple invoices, none can be a Pay Alone
invoice.
PAYNG N A FOREGN CURRENCY: You must pay in the same currency as the
invoice. You can enter and pay a foreign currency invoice only if your Allow Multiple
Currencies Payables option is enabled, and you have defined a multi-currency or foreign
currency denominated bank account.
CANNOT STOP FORMATTED QUCK PAYMENTS. You cannot stop a Quick Payment
after it has been formatted.
Initiating Quick Payments from the Invoice Workbench
n the nvoice Workbench, you can initiate quick payment of one or more invoices or one or
more scheduled payments by selecting the invoices you want to pay, clicking the actions
button, and selecting the Pay in Full option to navigate to the Payments window. The
Payment Type should default as Quick. Payables automatically enters most payment
information for you, such as payment amount and supplier/site name. Skip invoice selection
step if you were to initiate the payment from the Payment Workbench.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 53
nvoice Payments: Formatting Payments

Invoice Payments: Formatting Payments
You attach a format to payment documents you define during setup. When you choose a
payment document, Payables uses the associated format to create an output file that you can
use to make payments.
Output file format
Check To print checks, attach a format program to the payment document you define
that creates a flat file in the format of a check.
e-Commerce Gateway To transmit an ED formatted file to the bank, attach a format
program to the payment document you define that creates a flat file based on an e-
Commerce Gateway map. Take this flat file and translate it to an ED file format using an
ED translator. The ED formatted file is sent to the bank.
EFT To send electronic funds transfer (EFT) instructions to your bank, attach a format
program to the defined payment document that creates an EFT formatted flat file.
XML You and your bank can implement XML message delivery types from your bank to
keep you informed of your XML payment's status: XML payment message receipt
(Confirm BOD), payment file errors, and payment advice. Workflow sends all
notifications to the user who formatted the payment.
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Payables Overview
Chapter 6 - Page 54
Agenda

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 55
Key Processes

Key Processes
Create Accounting Process
The parameters you use when you submit the Create Accounting program determine how
accounting entries are transferred to the ledgers in your general ledger. Accounting can be
created in draft or final mode. You can transfer subledger accounting entries in summary or
detail. Regardless of the option you choose, you can always drill down to the subledger to
view the details that build the general ledger balances.
Create Accounting Draft
f you submit the Create Accounting in Draft mode, you can review the subledger accounting
entries generated for your Payables transactions. f any accounting is incorrect, you can
update the transaction in Payables to correct the accounting before you create final
accounting.
Create Accounting Final
Run the Create Accounting process in Final mode to generate your final subledger accounting
entries. Once you generate final accounting, you cannot correct the accounting. nstead, you
must enter correcting transactions in Payables.
Integration with Other Applications
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 56
Other applications that integrate with Oracle Payables such as Oracle Assets, Oracle
Procurement, Oracle Projects, and Oracle nventory now provide Payables-related accounting
information to Oracle Subledger Accounting. nvoice Lines and Distribution details continue to
be provided to Payables directly.
Transfer Journal Entries to GL
Submit the Transfer Journal Entries to GL process to transfer accounting information from
Oracle Subledger Accounting to the GL nterface. The Transfer Journal Entries to GL process
transfers summary or detail accounting activity for any open period into the general ledger
interface. When more than one period is open, the transfer selects transactions from the first
open period up to the entered transfer date, and passes the correct accounting date and
financial information into the general ledger interface.
Journal Import
Once subledger accounting entries are transferred to the GL nterface table, use the Journal
mport process to import accounting information from the GL nterface to the general ledger.
Posting Journals
Use the post journals process to update the account balances of your detail and summary
accounts. You can post actual, budget, or encumbrance journal batches.

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Payables Overview
Chapter 6 - Page 57
Period Close

Overview of the Period Close
At the end of each accounting period, companies must complete the closing process in
Payables and reconcile Payables activity for the period.
You close a Payables period after you have completed subledger accounting for
transactions for the period and you have transferred the subledger accounting entries to
general ledger.
A week before your first period close, create a copy of the production database and then do a
dry run following your period close procedures. The dry run will help you identify problems
and issues well in advance of the actual period close.
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Payables Overview
Chapter 6 - Page 58
Mass Additions Accounting - Periodic Accrual [Period End]

Mass Additions Accounting - Periodic Accrual [Period End]
1. Enter purchase order When you enter a purchase order, accounts are created and stored with the
purchase order distribution. The accounts will eventually be used as a basis for creating accounting
that is sent to the general ledger. Creating a purchase order in and of itself generates no
accounting that is sent to the general ledger.
2. Receive For most expenses and asset purchases (other than inventory), receipt accruals are
generally processed at period end, so no accounting is transferred to the general ledger at the time
the receipt is processed.
3. Period end accrual f no invoice is received and matched to the purchase order at period end, the
Receipt Accruals - Period End process will generate an accrual that is transferred to the GL
nterface. Run the mport Journal process to create unposted journals in the general ledger.
4. Reverse accrual Perpetual accruals (on receipt accruals) are reversed when the invoice entered in
Payables is matched to the purchase order. Periodic accruals (period end accruals) are reversed
when a reversing journal is created and posted in the general ledger.
5. Invoice and match Entering an invoice and matching creates a debit to the nventory AP Accrual
account to clear the liability for the uninvoiced receipt (you now have an invoice). The credit is to
the AP Liability account that defaults from the supplier site if the invoice unit price is the same as the
purchase order line unit price. Any difference is charged to the nvoice Price Variance account. For
items with destination type of Expense, the nvoice Price Variance account will be the same as the
charge account. n the case of an asset that will be capitalized and depreciated in assets, the
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 59
charge account is an asset clearing account associated with an asset category in Assets. The AP
Liability account is cleared when a payment is processed.
6. Post asset to Assets The Post Mass Additions process places the asset in service. When the
Create Accounting process is run in Assets, the charge account (the clearing account on the invoice
distribution) is relieved and the cost account associated with the asset category is charged for the
cost of the asset.
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Payables Overview
Chapter 6 - Page 60
Subledger Accounting and General Ledger

Subledger Accounting and General Ledger
Create Accounting (1)
Create subledger accounting entries online or manually using the Create Accounting
concurrent program.
Transfer to General Ledger (2)
Transfer subledger accounting entries from Subledger Accounting into General Ledger. The
Post process in General Ledger updates account balances. Once ledgers are posted, you
can perform account analysis, subledger drill down and run financial statements.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 61
Accounting Process Error Validation and Reporting

Accounting Process Error Validation and Reporting
Through the Oracle Payables accounting process, Oracle Payables users can fix account
problems before the system creates accounting entries. When the accounting process
identifies an invalid account, the accounting process does not create accounting entries for
the transaction. The transaction details are still listed in an exceptions report. You review the
accounting process report to see the problem account, fix the problem that is preventing the
program from getting a valid account, and then resubmit the accounting process. This way,
the account is correct when the accounting entry is created.
The Accounting Entries Exceptions Report lists all transactions that the process tried to
account for, but could not account for because of absence of important information. For
example, the exchange rate was missing, a previous, related transaction was not accounted
yet, or you cannot account for a payment cancellation if the payment is not yet accounted.
This report raises visibility of transactions that require additional data and provides you with
the information you need to ensure that all your transactions are accounted in a timely
manner.
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Payables Overview
Chapter 6 - Page 62
Agenda

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 63
Daily Business ntelligence

Daily Business Intelligence
The Oracle e-Business Suite delivers all the tools needed to help companies transition to
become an e-Business. Oracle applications are 100% nternet based. All you need to access
the applications is a web browser on your desktop. But more importantly, the applications
themselves have been developed with built-in support for all the new internet-enabled e-
Business practices.
Daily Business ntelligence (DB) is a comprehensive management information capability of
the e-Business Suite that helps enables senior managers and executives get an accurate and
integrated daily summary of their business. t provides the technology components that
enable cross-functional analysis, daily summarization, and optimized reporting performance.
t includes Oracle Portal based pages to support reporting needs for targeted management
roles, with relevant and timely information presented in the form of Key Performance
ndicators, Summary Portlets, and Drill Down Reports.
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Payables Overview
Chapter 6 - Page 64
Daily Business ntelligence

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Payables Overview
Chapter 6 - Page 65
Agenda

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 66
Oracle iSupplier Portal nvoice Matching Controls

Oracle iSupplier Portal Invoice Matching Controls
Oracle Payables has a profile option that, when selected, prevents suppliers from matching a
single invoice to more than one purchase order when entering invoices online in Oracle
iSupplier Portal. From the iSupplier side, the supplier is able to include the ship from location
on an ASN/ASBN. This allows automated matching of shipment lines to the corresponding
delivery lines in Oracle Transportation Management, and largely reduces the need for a
manual match.
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Payables Overview
Chapter 6 - Page 67
Attachments

Attachments
n Oracle iSupplier Portal nvoices, suppliers can use standard attachments functionality to
include non-structured data attachments with invoices that they enter. Once the invoices are
imported, Oracle Payables users can access the attachments just as they can access any
other invoice attachments.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 68
PO Number Display

PO Number Display
Purchase orders are are ordered numerically, with release number in the display for blanket
and planned purchase order numbers. Suppliers can find the purchase orders they need to
match against much more easily, speeding up the invoice entry process.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 69
Retroactive Pricing of Purchase Orders Support

Retroactive Pricing of Purchase Orders Support
The retroactive pricing of purchase orders is a specialized feature for use with suppliers that
agree to this pricing and invoicing relationship. t automatically generates supplier invoices to
make price adjustments without having a corresponding invoice from the supplier. Therefore,
in some jurisdictions, you would first need to get special dispensation from your fiscal
authorities before using this feature.
When using this feature, after an Oracle Purchasing user updates the price for a purchase
order item, the system can create adjustment invoices in Oracle Payables for any existing
invoices matched to that item. The net effect is as if each invoice had been matched at the
new price.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 70
Attachments

Attachments
Oracle Payables supports the attachment of supplemental files at the supplier site level.
Attachments can be any type of supported file, including text files, images, HTML pages, and
video clips. For example, you might want to attach a photograph of items ordered. That image
can then be carried over to the invoice. This feature's functionality is identical to that currently
available at the supplier level.
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Payables Overview
Chapter 6 - Page 71
Agenda

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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 72
Payables ntegration with E-Business Tax

Payables Integration with E-Business Tax
Oracle Payables integrates with Oracle E-Business Tax, the Oracle Applications tax engine, to
provide tax services for invoices. With this integration, E-Business Tax provides a central
repository for your invoice tax requirements. E-Business Tax does not provide tax services for
Withholding Taxes or 1099 ncome Taxes. E-Business Tax provides tax services for the
following categories of Payables invoices:
Standard Invoices - includes Standard, Mixed, PO Price Adjustment, Credit Memos,
and Debit Memos
Prepayment Invoices
Expense Reports
Each of these categories maps to an event class in E-Business Tax.
E-Business Tax uses your tax setups as well as information from the invoice header and line
level (the tax drivers) to determine the applicable taxes, tax statuses, tax rates, taxable basis,
calculations, rounding, and tolerance for each invoice. The tax drivers E-Business Tax uses to
calculate taxes can differ depending on the category of invoice and the parties involved. For
example, for a Standard invoice in the U.S., the Location D and Place of Supply on the
invoice are used to determine the applicable State and County Sales Taxes.
For more information see the tax module or the E-Business Tax User Guide.
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Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 73
Multiple Organization Access Control

Multiple Organization Access Control
Oracle Payables leverages Oracle Applications' Multiple Organization Access Control feature.
Multiple Organization Access Control (MOAC) lets you define multiple organizations and the
relationships among them in a single installation of Oracle Applications. These organizations
can be ledgers, business groups, legal entities, operating units, or inventory organizations.
Implement Multiple Organization Access Control
f you implement MOAC, you can enter invoices for multiple operating units without
switching responsibilities. To enter an invoice for an operating unit, enter a value in the
Operating Unit field of the nvoices window (part of the nvoice Workbench). Each
invoice must be for a single OU, but you can enter multiple invoices for different OUs,
without changing responsibilities.
Pay invoices for multiple operating units in a single pay run.
Set Up Multiple Organization Access Control
To set up MOAC, define the following profile options:
MO Security Profile. This option controls the list of operating units that a responsibility
or user can access. So you would assign the Security Profile that you just created to this
profile option. f you set the this option at the responsibility level, then all users using that
responsibility will have access to only the operating units available in the security profile.
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Payables Overview
Chapter 6 - Page 74
f you set this option at the user level, then the user will have access to only those
operating units, irrespective of the applications responsibility that they log into.
MO: Default Operating Unit. This option allows you to specify a default operating unit
that will be the default when you open different subledger applications (Payables,
Receivables, and so on) pages. Because users can access multiple operating units, you
may want to set up a default one instead of forcing users to constantly have to choose
one. With User Preferences, you can also specify a default operating unit at the user
level. This profile option is optional.
MO: Operating Unit. This option provides backwards compatibility and supports
products that do not use MOAC. f you specify a security profile for the MO: Security
Profile, then those products that use MOAC will ignore this option.
For details on multiple organization setup, see: Oracle Applications Multiple Organizations
Implmentation Guide.
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Y
I
N
G

e
K
I
T

M
A
T
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R
I
A
L
S

F
R
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M

T
H
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S

C
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P
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T
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R

I
S

S
T
R
I
C
T
L
Y

P
R
O
H
I
B
I
T
E
D

Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 75
Quiz

Answer: b
O
r
a
c
l
e

U
n
i
v
e
r
s
i
t
y

a
n
d

E
g
a
b
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t
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s

u
s
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o
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e
K
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M
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I
A
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A
R
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F
O
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Y
O
U
R

U
S
E

I
N

T
H
I
S

C
L
A
S
S
R
O
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M

O
N
L
Y
.


C
O
P
Y
I
N
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e
K
I
T

M
A
T
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R
I
A
L
S

F
R
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H
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C
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P
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T
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R

I
S

S
T
R
I
C
T
L
Y

P
R
O
H
I
B
I
T
E
D

Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 76
Quiz

Answer: d
O
r
a
c
l
e

U
n
i
v
e
r
s
i
t
y

a
n
d

E
g
a
b
i

S
o
l
u
t
i
o
n
s

u
s
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o
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y
T
H
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S
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e
K
I
T

M
A
T
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R
I
A
L
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A
R
E

F
O
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Y
O
U
R

U
S
E

I
N

T
H
I
S

C
L
A
S
S
R
O
O
M

O
N
L
Y
.


C
O
P
Y
I
N
G

e
K
I
T

M
A
T
E
R
I
A
L
S

F
R
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M

T
H
I
S

C
O
M
P
U
T
E
R

I
S

S
T
R
I
C
T
L
Y

P
R
O
H
I
B
I
T
E
D

Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 77
Quiz

Answer: c
O
r
a
c
l
e

U
n
i
v
e
r
s
i
t
y

a
n
d

E
g
a
b
i

S
o
l
u
t
i
o
n
s

u
s
e

o
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l
y
T
H
E
S
E

e
K
I
T

M
A
T
E
R
I
A
L
S

A
R
E

F
O
R

Y
O
U
R

U
S
E

I
N

T
H
I
S

C
L
A
S
S
R
O
O
M

O
N
L
Y
.


C
O
P
Y
I
N
G

e
K
I
T

M
A
T
E
R
I
A
L
S

F
R
O
M

T
H
I
S

C
O
M
P
U
T
E
R

I
S

S
T
R
I
C
T
L
Y

P
R
O
H
I
B
I
T
E
D

Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 78
Quiz

Answer: a
O
r
a
c
l
e

U
n
i
v
e
r
s
i
t
y

a
n
d

E
g
a
b
i

S
o
l
u
t
i
o
n
s

u
s
e

o
n
l
y
T
H
E
S
E

e
K
I
T

M
A
T
E
R
I
A
L
S

A
R
E

F
O
R

Y
O
U
R

U
S
E

I
N

T
H
I
S

C
L
A
S
S
R
O
O
M

O
N
L
Y
.


C
O
P
Y
I
N
G

e
K
I
T

M
A
T
E
R
I
A
L
S

F
R
O
M

T
H
I
S

C
O
M
P
U
T
E
R

I
S

S
T
R
I
C
T
L
Y

P
R
O
H
I
B
I
T
E
D

Copyright Oracle, 2010. All rights reserved.
Payables Overview
Chapter 6 - Page 79
Summary

O
r
a
c
l
e

U
n
i
v
e
r
s
i
t
y

a
n
d

E
g
a
b
i

S
o
l
u
t
i
o
n
s

u
s
e

o
n
l
y
T
H
E
S
E

e
K
I
T

M
A
T
E
R
I
A
L
S

A
R
E

F
O
R

Y
O
U
R

U
S
E

I
N

T
H
I
S

C
L
A
S
S
R
O
O
M

O
N
L
Y
.


C
O
P
Y
I
N
G

e
K
I
T

M
A
T
E
R
I
A
L
S

F
R
O
M

T
H
I
S

C
O
M
P
U
T
E
R

I
S

S
T
R
I
C
T
L
Y

P
R
O
H
I
B
I
T
E
D