GL NOTES OF 11i

GENERAL LEDGER ORACLE FINANCIALS 11i 1
INTRODUCTION TO ORACLE
O – OAKRIDGE
R – RELATIONAL
A – ARTHEMATIC
C – COMPUTING
L – LOGICAL
E – ENGINE
ORACLE is a RDBMS (Relational Data Base Management System).
ORACLE is having 300 applications.
Examples:
AP – Accounts Payables
AR – Accounts Receivables
CM – Cash Management
GL – General Ledger
FA – Fixed Assets
OM – Order Management
INV – Inventory.
Prepared by: SANDEEP BANDI Notes: Mr. RAM LAXMAN 1

FLEX FIELDS
FLEX FIELDS are two types.
1. Key Flex Field (KFF).
2. Descriptive Flex Field
KFF is used for holding the organization structure name, Segment, Segment values and Value Set & the required values to
complete a transaction. We can not make any changes to KFF.
DFF is used to capture additional information by enabling option in the forms
Under GL we have again two types of Key Flex Fields.
1. Accounting Flex Field.
2. Reporting attribute flex field.
SET OF BOOKS
Pre requisites for Set of Books: 3 C’s
1. Chart of Accounts
2. Currency
3. Calendar
I. CHART OF ACCOUNTS.
Pre requisites for Chart of accounts are:
a. Organization Structure
b. Segments
c. Segment Values
d. Value Set
a. Structure
Define Organization Structure and Segments
Navigation:
SetupFinancialsFlex FieldsKeySegments.

Upon opening the window use Ctrl F11 and then use down arrow.
Will get to see:
Application: General Ledger
Flex Field Title: Accounting Flex Field
Place the cursor anywhere in the “Structure” box and use FileNew to create our own structure.
Key in your own structure name.
Code: HCL Group of Companies
Title: HCL Group of Companies.
Description: HCL Group of Companies.
View Name: HCL_Group_of_Companies


b Segments:-
Click on “Segments” button.
Enter your segment names (Company, Department, Accounts, Location)
Number: Serial Number
Name: Name of the Segment
Window Prompt: The same name from Name field will copied to window prompt field.
Column: Segment Number (From 1 to 30)
Value Set: Assign value set to Segments.
** Maximum we can create 30 Segments
After assigning Value set to Segments
Click on “Flex Field Qualifiers” button
Assign:
Balancing Segment FFQ to Company
Natural Account Segment FFQ to Accounts

Cost center Segment FFQ to Department
** One qualifier we can use only one time.
**But, One Segment we can assign more than one qualifier also.
We have 5 Flex Field Qualifiers.
1. Balancing Segment FFQ
2. Cost Center Segment FFQ
3. Natural Accounts Segment FFQ
4. Inter Company Segment FFQ
5. Secondary tracking Segment FFQ
 We generally assign balancing Segment FFQ to Company Segment, where usually balances are maintained or
performed at Company level.
 Cost Center Segment FFQ assigned to Department Segment because, where usually costs are spent and even gain at
department level.
 We generally assign “Natural account Segment FFQ” to ACCOUNTS Segment because, it is consist of accounting
categories such as Expenses, Revenue, Assets, Liability and Ownership.
 Inter Company Segment FFQ are generally assigned to COMPANY Segment because using these qualifiers we are able
to perform intercompany transactions.
 By using “Secondary tracking segment FFQ” we can able to identify secondary tracking segment to process Income
statement, closing transactions and revaluation.

Select your structure
Enable: Allow dynamic inserts
Enable: Freeze Flex field Definition
Click on “Compile button”

Click on OK
With this system will check for the errors any done by the user while creating structure, segments, value set and Flex Field
Qualifiers.
** The structure or Chart of Accounts information will get stored in a table or view called as
“GL_CODE_COMBINATIONS_KFV”. (Key Flex Field Value).

b. VALUE SET
Value set is nothing but, set of rules or properties or conditions, which are going to enforce or attach to the Segment.
Upon enforcing or attaching value set to the segment, your segment will behave or act according to the value set.
Value set validation: 8 types
1. Independent
2. Dependent
3. Pair
4. Special
5. Table
6. None
7. Translatable Independent
8. Translatable Dependent
We have to create value set for each Segment separately.
For example:
We have Segments: Company, Department, Location, Accounts.
 Company Segment : Company Value Set
 Department Segment : Department Value Set
 Location Segment : Location Value Set
 Accounts Segment : Accounts Value Set
Format Type:
1. Number
2. Character
3. Date
4. Time
5. Date & Time
6. Standard date

7. Standard Date & Time.
If format type is number: based on the size segment value will create
If format type is Character: Segment value will create as alpha numeric.
Define Value Set:
Navigation:
SetupFinancialsFlex FieldsValidationSets.
Value Set Name: HCL Company Value Set.
List type: List of Values
Security type: No Security
Format type: Char
Maximum Size: 4
Enable: Number only (0-9)
Enable: Right Justify and Zero fill numbers (0001)

Department Value Set.
Accounts Value Set:

Location Value Set:
c. Segment Values
Define Key flex field Segment Values
Navigation:
SetupFinancialsFlex FieldsKeyValues.

Title: Accounting Flex Field
Structure: Key in your own Structure (Example: HCL Group of Companies)
Segment: Company
Click on “Find” button.
Value: 1
Translated value: Will copy from “Value” field
Description: key in your “COMPANY”.
Click on “Values, Hierarchy, Qualifiers” tab:
Allow budgeting: Yes
Allow posting: Yes

We have 5 types of “Segment qualifiers”.
1. Allow Budgeting
2. Allow Posting
3. Account type
4. Control Account
5. Reconciliation Flag
** Flex Field Qualifiers are assigned to Segments.

Where as
** Segment Qualifiers are assigned to Segment Values.
Go to Window and select “2. Segment values”.

Select (Ctrl L) Segment as “Department” from drop down list.
Click on “Find” button

Go to Window and select “2 Segment values”.
Select Segment as “Location”

Go to Window and select “2. Segment values”.
Select Segment as “ACCOUNT”


Mandatory Accounts:
Whenever we create Set of Books we must use 3 C’s.
Apart from 3 C’s we need to use the First mandatory account “Retained Earnings Account”.
Name of the Mandatory Accounts Account type
1. Retained Earnings account Ownership
2. Translation adjustment account Expenses / Ownership
3. Suspense Account Assets / Liabilities
4. Rounding Difference Account Expenses / Revenue
5. Reserve for encumbrance Expenses
6. Net Income / Net Revenue Expenses / Revenue
With the above steps (Structure & Segment, value Set and Segment vales) creation of Chart of Accounts is completed.
The other 2 pre requisites of “Set of Books” are Calendar and Currency.

II. Currency.
We have 200+ currencies by default available with ORACLE application software. Out of 200+ currencies like INR, USD, GBP
and AUD are by default enabled. This means they are ready to use.
Define or Enable the currencies.
Navigation:
Set upCurrenciesDefine.
Place the Cursor in “Code” field and use Ctrl F11 to see all currencies or
Place the Cursor in “Code” field and press F11, field colour will change to blue
Then type “INR%” and press Ctrl F11 to view INR currency
Drag the screen to end to verify whether INR enabled or not
If check box enabled, no action required. Otherwise we have to enable check box.
In general Currencies are two types.
1. Monitory
2. Non Monitory
Monitory currency is again 2 types.
1. Functional Currency
2. Foreign Currency

 Functional Currency means, the currency which is used for domestic business transactions.
 Foreign Currency is used other than Domestic Currency.
Non Monitory currency is a statistical currency. We cannot measure it in rupees or dollars.
We can measure non monitory currency in Kg’s, Sft’s and Ltr’s.
III. Calendar.
We have 2 types of Calendars in Oracle application.
1. Accounting Calendar
2. Transaction Calendar
Accounting Calendar set up is mandatory for Set of Books creation.
Accounting Calendar is again two types.
1. Calendar (Normal / regular)
2. Fiscal Calendar
 Calendar (Normal / Regular) always start in one year and ends in the same year
(Jan 1st to Dec 31st).
 Fiscal Calendar means: start in one year and complete in the next year. For example April 1 st to March 31st.
Periods per year:
1. 365 days
2. 52 weeks
3. 12 months
4. 4 quarters

Steps to define Calendar in ORACLE.
Step: 1
Define Period type.
Navigation:
Set upFinancialsCalendarsTypes
Period type: HCL_Monthly
Periods per year: 12 months + 1 month adjustment period
Year type: Fiscal (April to March)
Description: HCL 13 months Fiscal year Calendar
Save.
Step: 2
Define Accounting Calendar.
Navigation:
SetupFinancialsCalendarsAccounting

Calendar: HCL ACC CAL
Description: HCL Accounting Calendar
Prefix: First letters of Month Name
Type: Select your Calendar type from drop down list (Ctrl L) which was setup in step 1 above.
Year: It should be reporting year where the accounts to be closed.

Quarter: number of the quarter
Num: Month serial number
From: Starting date of the month
To: Ending date of the month
Name: System will take from “Prefix” field and last two letters from “Year” field
For Adjustment period we have to enable the “Adjusting” check box.
Defining Set of Books
Navigation:
SetupFinancialsBooksDefine
Set of Books Name: Key in your own structure name
Short Name: Short name of your own structure
Functional Currency: INR
Calendar:
Name: Select your calendar (Ctrl L)
Period type: System will take automatically
Future period: 1

Click on “Closing” tab
Select “Retained Earnings” account
Save.
Creation of New Responsibility.
Responsibility:
The specific area where the user can do access to some activities is called Responsibility.
To create the new responsibility we have to go for “System Administrator Responsibility”.
Navigation:
SecurityResponsibilityDefine
A window will open called Responsibilities.
Save.
Responsibility name: Key in your own responsibility name
Application: General Ledger (Ctrl L)
Responsibility Key: HCL_GL

Data Group:
Name: Standard
Menu: GL_SUPERUSER
Request Group:
Name: GL Concurrent Program group
Save.
Assign your Set of Books to your Responsibility
This will be performed in System Administrator.
Navigation:
ProfileSystem
Responsibility: Select your Responsibility (Ctrl L)
Profile: GL SET OF BOOKS NAME
Select your “Set of Books name” from the list.

Save.
Define New User
This will be performed from System Administrator.
Navigation:
SecurityUserDefine

User Name: Give your own user Name
Password: type password 2 times
Responsibility:
Select the Responsibility (Ctrl L)
For example:
Responsibility Application
System Administrator System Administrator
HCL General Ledger Responsibility General Ledger

Open / Close Accounting Periods
Navigation:
SetupOpen/Close
We have 5 types of Calendar Status:
1. Open
2. Closed
3. Permanently Closed
4. Future entry
5. Never Opened
 Open: We can enter journal, post and Run the reports
 Future entry: We can enter journal only.
 Closed: We cannot enter the Journal’s. But whatever journals already entered journals not Posted, those we can post
them and we can run the reports. We can reopen the closed period.
 Permanently closed: We cannot reopen once the period permanently closed.
 Never Open: We have created the period but that period was never opened.

MULTIPLE REPORTING CURRANCIES (MRC).
MRC is an online activity that reporting the transactions up to 8 multiple currencies.
This reporting is from Functional currency to 8 foreign currencies.
This is transaction level reporting.
To perform MRC program we required minimum 2 set of books.
1. Primary Set of Books
2. Reporting Set of Books
We have to assign Reporting Set of Books to Primary Set of Books.
Steps involved in MRC:
Primary Set of Books Reporting Set of Books

Data Sending Company Data receiving Company
1. Create Indian Set of books for Primary 1. Create USA set of books
2. Create India responsibility 2. Create USA responsibility
3. Create India User 3. Create USA user
4. Assign SOB to GL Profile 4. Assign SOB to GL Profile
5. Setup Conversion rates- INR to USD 5. Open the periods
Calendar and Chart of Accounts should be same as in Primary

6. Assign Reporting SOB to Primary SOB SOB
7. Open the periods 6. Review and Post Journal
Calendar and Chart of Accounts should be same as in

Reporting SOB
8. Enter and Post one Journal
Step: 1
Create Set of Books for both Primary and Reporting Set of Books
Navigation:
SetupFinancialsBooksDefine

Click on “Closing” tab and assign “Retained Earnings account”.
Then Click on “Multiple Reporting Currencies” tab
Set of Books type:
 Enable: Primary Set of Books check box for Primary SOB
 Enable: Reporting Set of Books check box for Reporting SOB

Step: 5
Assign Reporting SOB to Primary SOB.
Log in through India User
Navigation:
SetupFinancialsBooksAssign

Select “HCL INDIA Primary Set of Books” and click on OK
“Assign Reporting Set of Books” window will open
Reporting Set of Books: Select Reporting SOB name from drop down list (Ctrl L)
Save.
Click on “Conversion Options”

Application : General Ledger
Click on : GL Conversion Rules
Source: Other
Category: Other

Default reporting: Corporate
No rate action: Use last rate
Click on “OK”
Save.
Step: 5
Setup Conversion rates.
Navigation:
SetupCurrenciesRatesDaily
Upon opening window,
To column shows as INR, remove that
Make
From: INR
To: USD
Type: Corporate
USD to INR: enter the $ rate
Save.

BUDGETS
To create Budget in general we need the following:
1. Period
2. Account
3. Amount
We have two types of Budgets
1. Expenses Budget (Funding Budget)
2. Revenue Budget (Planning Budget)
 Funding Budget is required (Expenses Budget) to restrict the or Control the expenses
 Planning Budget (Revenue Budget) is to set up expectations.
We have 3 types of balances in the Budget concept.
1. Budget balances - Planned amounts at initial stage
2. Actual balances - Paid amounts so far
3. Encumbrance balance - Reserved amounts for future payments
FUNDING BUDGET
Steps involved in Funding Budget set up:
1. Create mandatory account – Reserve for encumbrance
2. Enable budgetary control & Enable require budget journals at SOB level under “Budgetary control” Tab & Assign
“Reserve for encumbrance account” in budgetary control tab.
3. Go to open/close window and see for next year 2011 is open under Encumbrance year.
4. Define budget
5. Define Budget Organization:
 Set sequence,
 Set password for Budget
 Set Range for accounts

 Select “funds check level”
 Select “Amount type” (PTD / YTD / QTD / PJTD)
6. Enter budget journal
7. Review journal and post the journal
8. Define budgetary control group
9. Go to System Administration: Assign GL Responsibility to budgetary control group profile.
10. Switch to GL: Enter one journal and post journal.
Step: 1 Create mandatory account – Reserve for encumbrance
Navigation:
Set up Financials Flex Fields Key Values
Select Segment as “Account”
Click on “Find Button” and enter the Account value as “reserve for encumbrance account”.
Qualifiers as : Yes, Yes, Expenses, No, No.

Step: 2
Enable budgetary control & Enable require budget journals at SOB level under “Budgetary control” Tab & Assign “Reserve
for encumbrance account” in budgetary control tab.
Navigation:
Setup Financials Books Define
Step: 3
Go to open/close window and see for next year 2011 is open under Encumbrance year.
Navigation:

Step: 4 Define budget
Navigation:
Budgets Define Budget

Name : HCL Funding Budget
Status : Current
Enable : Require budget journals
Budget periods
First : April 2010
Last : March 2011
Save
Click on “Open next year” button
Decision – say “Yes”
Save and Close the window
Refresh the request
Reopen the window
Last open year will turn to 2011
Save.
Step: 5
Define Budget Organization:
 Set sequence,
 Set password for Budget
 Set Range for accounts
 Select “funds check level”
 Select “Amount type” (PTD / YTD / QTD / PJTD)
Navigation:
Budgets Define Organization.

Organization : HCL Budget Organization
Ordering Segment : Account
Place the cursor in the field “Display Sequence” and enter the sequence as:
Company : 1
Department :2
Accounts : 3
Location : 4
To set password for the budget click on “Pass word” button and enter your password for two times.

Then click on “Ranges” and select the range for which we want to create budget.
Line : 1
Low & high : Select the range
Funds check level : Absolute
Amount : PTD

Boundary : Period
Funding Budget : HCL Funding Budget
Save.
Refresh the request.
Click on “Range Assignments”

Select the range in “Account” field for which account we want to create budget
Save.
Notes:
Funds check level : 3 types
1. Absolute
2. Advisory
3. None
 If we use “Absolute” as funds check level, we can not use more than the amount what we specified.
 Advisory – System will give caution if we cross the amount given
 None – System will not give any caution and we can enter the more amount also.

Amount types: 4 types
 PTD - Period to date (One month)
 QTD - Quarter to date (3 months)
 YTD - Year to date (1 year)
 PJTD - Project to date (depends on project beginning date)
Step: 6 Enter budget Journal
Navigation:
Budgets Enter Journals.
Budget Organization : HCL Budget Organization (Ctrl L)
Budget : HCL Funding Budget
Accounting period
From : Apr – 10
To : March 2011
Currency : INR
Place the cursor in “Account” field and select the range the same as given in “Range Assignment”.
Click on “Budget rules” button and select one rule from the following:

1) Divide Evenly
2) Repeat per period
3) 4/4/5
4) 4/5/4
5) 5/4/4
6) Prior year Budget Monetary
7) Current year Budget Monitory.
8) Prior year Budget STAT
Click on “Create Journals” button
Journal batch : Budget Journals
Category : Budget
Funds status : Required
Click on “Check Funds”
Click on “Reserve Funds”
Click on “Done”.

Step: 7
Review the journal and post
Navigation: Journal Enter
Select category: Budget
Click on Find
Select all budget journals
Post
Step: 8
Define budgetary control group.
Navigation:
Budgets Define Control
Group : HCL Budgetary control group
Budgetary control rules:
Source : Other
Category : Other

Funds check level : Absolute
Tolerance : 10%
Save.
 Tolerance means system will allow more or less % given in the field than the amount.
 In “Amount” field what ever we gave the amount system will be taken.
 Over ride amount means it will over ride the amount what ever we have given amount.
Step: 9
Go to System Administration:
Assign GL Responsibility to budgetary control group profile.
Navigation:
Profile System
Responsibility : HCL General Ledger Responsibility
Profile : Budgetary Control Group
Click on “Find”

Assign your “HCL Budgetary Control Group” to profile under responsibility.
Save.
Step: 10
Switch to GL module.
Enter one journal.
Navigation:
Journal / Enter

Save the journal.
Click on “Check Funds”
Click on “Reserve Funds”
Post.
MASS ALLOCATION
Steps in Mass Allocation:
a. Enable STAT Currency
b. Setup Square feet Account
c. Create STAT Journal
d. Setup Parent & Child relationship for Departments
e. Prepare Mass Allocation Formula
f. Run Mass Allocation
Notes:
1. STAT currency is used for Statistical information purpose.
2. Mass Allocation is used for Expenses allocation & Revenue allocation.

3. Mass Allocation Formula = A x B / C
A = Cost pool Amount (Total Amount)
B = Usage factor (Partial department usage)
C = Total Usage (Total Department usage)
For example rent paid Rs. 1,00,000 for total building (15000 Sft) occupied by 3 departments. Fin Dept = 5000 Sft + HR
Dept 3000 Sft + IT Dept 7000 Sft).
A = Rs. 1,00,000
B = 5000 Sft or 3000 Sft or 7000 Sft
C = 15000 Sft
T = Target Account (Rent Account)
O = Offset Account (Credit account for the debit account which rent paid)
Step: 1 Setup STAT Currency.
Navigation: Setup Currencies Define.
Upon opening the window press F11 and type STAT in “Code” field and Ctrl F11
If STAT currency already enabled, then no action required.

Step: 2 Create SFT account
Navigation: Setup Financials Flex Fields Key Values.
Click on “Find”
Qualifiers: Yes, Yes, Expenses, No, No.

Step: 3 Create STAT Journal
Currency should be STAT
Save.
Post.
Refresh the Request.
Step: 4 Parent & Child relation setup.
Navigation: Setup FinancialsFlex FieldsKey values.

Create a department with the name “Parent Department”
Enable check box for “Parent group”
Select Qualifiers as Allow budgeting = No, Allow posting = No
Select Parent department and click on “Define Child Ranges”
From: Dep 001 To: Dep 003

Save.
Step: 5 Prepare Mass Allocation Formula.
Define Mass allocations.
Navigation: Journals Define Allocation.
Name : HCL Mass Allocation
Balance Type : Actual
Click on “Formulas”
Formula (HCL SOB) window will open
Name : HCL Rent allocation
Category : Allocation

A : Key in the total Cost pool amount in the amount field.
Other fields for A are not required to fill.
B : Place the cursor in B and use tab
Currency = STAT

B = Value Type
Company : Constant = C
Department : Looping = L (Parent Department)
Account : Constant = C (Sft account)
Location : Constant = C
Keep the Cursor in “C” field and use tab
C = Value Type
Department : Summing = S (Parent Department)
Account : Constant = C (Sft account)
OK
Currency = STAT
Place the cursor in “T” and use tab

Currency = INR
T = Value Type
Department : Looping = L (Parent Department)
Account : Constant = C (Rent account)
OK
Click on “O”
T = Value Type
Department : Constant = C (finance Department)
Account : Constant = C (cash account)
Currency = INR
OK
Close the window

Click on “Validate all” button, Refresh the request
View output for any error, After refresh Validation tab will turn to “Validated”
If any error the above validation field will show error.
Step: 6 Run Mass allocation
Click on “Generate” button

Click on Submit
Select the period in Allocation Parameters
Submit
Refresh the request
Step: 7 Review the Journal
Navigation: JournalEnter
Select Category as “Allocation”
Find
Post the Journal.

INQUIRY OF ACCOUNT BALANCES
Navigation: Inquiry Accounts
Click on “Show Balances

Security Rules & Cross Validation Rules
What is the difference between Security Rules & Cross Validation Rules?
Security Rules Cross Validation Rules
S R enabled at each Responsibility Level CVR enable at Structure & COA level
List of values are not displayed for those All list of values are displayed, but we will get
combination where security was enabled error message for invalid code combinations
No error message will displayed in SR Error message will displayed in CVR
SR restrict permission for segment values CVR restrict invalid code combination
Steps in Security Rules:
Review your structure, unfreeze, select Company segment value set and change
Security type as “Non hierarchical Security”
Choose Company segment and click on “Open” button to select “Security enabled”.
Define Key flex field Security Rules and assign to Responsibility
Switch Responsibility and again switch to GL responsibility
Enter one journal to verify SR is working or not
To remove the security rule, go to segment level change exclude to include (Repeat step 3 above)
Step: 1
Review your structure, unfreeze, select Company segment value set and change Security type as “Non hierarchical
Security”.
Navigation: SetupFinancialsFlex fieldsKey Segments

Select your Structure
Uncheck: Freeze Flex field Definition
Click on Segments
Select “Company”

Click on “Value Set”
Change security type as “Non Hierarchical Security”
Save.
Step: 2
Choose Company segment and click on “Open” button to select “Security enabled”.

Select “Company”
Click on “Open” button
Enable: Security Enabled

** To enable “Security Enabled” option if system not allowed
Go to Help
Select: DiagnosticsExamine
Window will open
Oracle password: apps
OK
Block: SEG
Field: Security enabled Flag
Change value “N” to “Y”
OK
Now got “Security Enabled”
Save.
Freeze Flex Field Definition
Compile
Step: 3 Define Key flex field Security Rules and assign to Responsibility
Navigation: Setup Financials Flex Fields Key Security Define

Click on “Find”
Security Rules:
Name : SR 1 for HCL
Description : Security rule 1 for HCL

Message : You have access only for 001 company value
Save
Click on “Assign”
This rule has to be assigned to specific responsibility
Security Rules:
Application : General Ledger
Responsibility : HCL General Ledger responsibility
Name : SR 1 for HCL
Save
Step: 4
Switch Responsibility and again switch to GL responsibility
Step: 5
Enter one journal to verify SR is working or not.

We have restricted “Company 2” thru giving security rule
When we are trying to enter journal for Company 2, system will throw an error as “You have access only for 001
company”.
Step: 6
To remove the security rule, go to segment level change exclude to include (Repeat step 3 above)
Navigation: Setup Financials Flex Fields Key Security Define

Click on “Find”
Change “Exclude” to “Include” under “Security Rule elements” type.
Again we will get access to Company 2.

CROSS VALIDATION RULES
Setting the invalid code combinations through the cross validation rules, so that no user can have the access to specific
code combinations.
To restrict the access to specific code combinations we can set cross validation rules.
Invalid code combinations are which combination not to use by the user.
CVR enable at Structure & COA level
All list of values are displayed, but we will get error message for invalid code combination
Error message will displayed in CVR
Steps in CVR:
Review your structure to enable “Cross validate segments”
Define Cross validation rules
Log out from application and re login
Enter one journal to test CVR is working or not
Step: 1 Review your structure to enable “Cross validate segments”
Navigation: Setup Financials Flex Fields Key Segment.
Select your structure
Unfreeze “Freeze Flex Field definition”
Enable “Cross validate segments”
Compile.

Step: 2 Define Cross validation rules
Navigation: Setup Financials Flex Fields Key Rules

Upon opening the window
Keep the Cursor in “Structure” and Press F11
Screen color will change and then press Ctrl F11, all fields will displayed
Cross Validation Rules:
Name : CVR 1 for HCL
Description : Cross validation rules for HCL Group
Error message : It is invalid code combination
Error Segment : Accounts (optional)
Cross validation rule elements:
Type : Include
From & To : Select the total range of values (Low to High)

And then exclude the values
Save.
Step: 3
Log out from application and re login.
Step: 4
Enter one journal to test CVR is working or not
** Error segment – if we input it will show the invalid segment at the time of entering journals.

Step:
To disable the CVR
Navigation: Setup Financials Flex Fields Key Rules
Change the exclude as “Include”.
Step:
To review existing code combinations
Navigation: SetupAccounts Combinations
F11
Ctrl F11


JOURNALS
To record day to day business transactions we use Journal entries in OF.
Journal entry Structure:
Journal Batches
Journals
Journal Lines
Balance Types:
i) Actual (A)
ii) Budget (B)
iii) Encumbrance (E)
Effective date:
If at all we enter journal for any previous period system will take effective date as last date of previous period.
If it is future period system will take effective date as first date of future period.
If it is current period, system will take effective date as current date of current period.
Journal Category:
Journal Category means the purpose of the Journal Entry
Examples of Category: payments, payroll, Purchases, Others, Receipts, Adjustments etc.
Journal Source:
Journal Source means the origin of the journal entry.
Example: Manual, Recurring, Consolidation, Mass Allocation, Payables, Receivables etc.

Types of Journals:
 Functional Currency Journal

 Foreign Currency Journal
 Recurring Journal
 Tax Journal
 Revaluation Journal
 Suspense Journal
 Reverse Journal
 Mass Allocation Journal
 STAT Currency Journal
 Budget Journal
 Batch Journal
 Manual Encumbrance Journal
1) Functional Currency Journal: The transaction which is recorded in journal which is done with local currency is called
Functional currency.
2) Foreign Currency Journal: The transaction which will be record in journal which is done other than functional currency. For
this we have to maintain conversion rates.
3) Tax Journal: When we are going to purchase or sell some thing on that if tax is applicable, then that type of transaction is
record in journal. This journal is called tax journal.
4) Recurring Journal: The periodically or recurring nature of expense transactions / activities would be recorded in
journals called recurring journal.
These are 3 types: Standard, Skelton, Formula recurring journal.
Standard recurring journal: The recurring activity where we know the amount and account and which is standard is
called standard recurring journal. Ex: Rent.
Skelton recurring journal: The recurring activity where we know the account only, but the amount will not be
known is called skeleton recurring journal.
Examples: Electricity bill and phone bill.
Formula recurring journal: The recurring activity needs some sort of calculations.
Example: Depreciation is to be provided on fixed assets on periodical basis.
1) Enter Journal Navigation: Journals  Enter
2) Review Journal Navigation: Journals  Enter
We are able to review journals by giving any one of the following parameters:
a) Journal Batch name

b) Journal Name
c) Journal Source
d) Journal Category
e) Journal Period
f) Journal Currency etc.

3) Posting Journal Navigation: Journals  Post

We can able to post journals by using any one of the following options:
 Use Post button available in Journal window

 Through Navigator (Journal  Post)
FUNCTIONAL CURRENCY JOURNAL
Navigation: Journal  Enter
Click on “New Journal” button

Currency should be in INR
Enter Debit and Credit lines Save Post the journal.
FOREIGN CURRENCY JOURNAL
Step: 1
Define foreign currency rates.
Navigation: Setup  Currencies  Rates  Daily

We are creating conversion rate of USD to INR
Currency: From: USD To: INR
Date: Today date
Conversion type: DALY (Daily conversion rate)
USD to INR: 50
Step: 2 Enter one journal
Currency: USD
Type: DALY (Daily)

Click on “New Journal”
Save and Post the journal.

RECURRING JOURNALS
Recurring Journals are 3 types:
 Standard
 Skelton
 Formula
- When user knows the account and amount we pass Standard recurring journal.
Example: Rent.
- When user knows only account but don’t know the amount, then skeleton journal entry has to pass.
- When user is going to use some formula with in the journal.

Example like +, X, _, / etc.
I. Standard Recurring Journal.
Step: 1 Define recurring Batch / Journal.
Define Recurring Journal
Navigation: Journals Define  Recurring

Recurring Batch Batch: Rent recurring batch
Journal Entry Journal : Rent recurring Journal
Category : Payments
Currency : INR
Click on “Lines”

Line: 1 for Debit amount
Select the Account (Rent Account)
Formulas:
Step :1
Operator : Enter
Amount : Enter the amount
Save
Keep the cursor on Line and press down arrow↓
Line: 2 for credit line
Select the account (Cash / Payables)
Step: 1 Operator: Enter Amount: negative value for credit account

Save & Close the window.
Click on “Generate”

Click on “Submit”
Select the period for which journal entry to be posted and click on “Submit”
System will generate request

Review the recurring Journal.
Post the recurring Journal.
Step: To post the same recurring journal for next period.
Generate recurring Journal
Navigation: Journal Generate  Recurring
Enable the check box
Select the period
Click on “Generate”
System will generate request ID.
Review the Journal and Post the Journal entry. (Journal  Enter)

II. SKELETON RECURRING JOURNAL
Repeat the same steps as in Standard Recurring journal.
Do not enter any amount in Formula.
When ever you received the invoice and required to pay enter the amount in the Journal entry and post.

III. FORMULA RECURRING JOURNAL
Step: 1 Define recurring Batch / Journal.
Define Recurring Journal
Navigation: Journals Define  Recurring
Batch : Rent recurring batch

Journal Entry Journal : Rent recurring Journal
Category : Payments
Currency : INR
Click on “Lines”
Line: 1 Enter the debit account
Step Operator Amount
1 Enter Rs. 240000
2 / 12
This means total rent per annum is Rs. 240000 will be divided by 12 months.
Save
Keep the cursor in Line field and press down arrow↓

Enter line number as 9999
** 9999 is an offset account for recurring. This will behave as credit, if other balance in debit. This will also behave like debit
balance if the other balance is in credit. 9999 will play dual role as account.
Generate the recurring journal.
Navigation: Journal  Generate  Recurring

Upon opening the window
Select the period and click on Generate
System will generate Request ID

Refresh request, Review the journal and post the Journal.
Tax Journal
Steps to create Tax Journal:
i. Enable Journal entry tax at set of books level.

ii. Define tax codes
iii. Setup tax options
iv. Enter and post journal
Step: 1 Define Set of Books
Navigation: Setup Financials Books Define
Go to “Journaling” tab
Enable “Journal Entry Tax”

Save.
Step: 2 Define Tax Codes
Navigation: Setup Tax Input tax codes
Tax code : VAT 10%
Tax type : VAT (Ctrl L)
Rate : 10
GL Account : Assign “Tax Account” (Create Tax Account if not available)
Create one more tax code with 14% and assign GL Account
Save.

Step: 3 Tax Options
Navigation: Setup Tax Tax options
Under “Set of Books Level” Tab
Input tax defaults:
We can set default values like:
Tax code : 10% or 14%
Rounding rule : Up / Down / Nearest Select: Nearest
Amount Includes Tax : If enable the option Journal amount will include the tax
Amount

Save
Click on “Account Level” Tab
Select the accounts on which account the tax are applicable.
Select “tax type”
Select “Tax code”
Enable: Allow tax code over ride
Step: 4 Enter one journal to verify tax code

Navigation : Journal Enter
Select Tax : required
After entering Debit and Credit lines
Click on “Tax” button

System will create line item for Tax amount
Change the credit amount to tally the amounts
Post the Journal.

REVALUATION JOURNAL
Steps required for Revaluation Journal
1. Create 2 accounts: Unrealized Loss Account & Unrealized gain account.
2. Setup conversion rate for the date of journal entry
3. Enter one journal with foreign currency on the date of step: 2 above
4. Setup conversion rate on which date you want to make payment
5. Run Revaluation Program
6. System will create one journal, review and post the journal.
Step: 1
Create 2 accounts: Unrealized Loss Account & Unrealized gain account.
Navigation: Setup  Financials Flex fields  Key Values
Click on “Find”

Enter the Accounts Unrealized Gain Account: Yes, Yes, Asset, No, No
Unrealized Loss Account: Yes, Yes, Liability, No, No
Step: 2
Setup conversion rate for the date of journal entry
Navigation: Setup  Currency  Rates  Daily

From: USD To: INR
Conversion type : Corporate
USD to INR : 45
INR to USD : System will calculate and enter the amount(0.2222) in the
Field.
Save.
Conversion Types: 5 types
1. Corporate : Corporate Exchange Rate

2. Daily : Daily Exchange Rate
3. HRUK : UK payroll Exchange rate
4. Reporting : Reporting Conversion rate type
5. Spot : Spot exchange rate

Step: 3
Enter one journal with foreign currency on the date of step: 2 above

Effective date should be the date on which we have created daily exchange conversion rate.
Currency : USD
Type : Corporate
Save and Post the Journal Entry.
Step: 4 Setup conversion rates on which date you want to make payment.
Navigation: Setup  Currency  Rates  Daily

Step: 5 Run Revaluations
Revaluation : HCL Revaluation
Currency Option : Enable Single Currency

Currency : USD
Rate Options : Enable Daily Rates
Type : Corporate
Gain / Loss Accounts : Assign Unrealized gain / Unrealized Loss Account
Revaluation Ranges : Specify the range values for which we need to run
Revaluation (Furniture Account)
Click on “Revaluation” button.
Select the period and effective date system will automatically take today’s date

Say “OK”
Click on “Submit”
System will create one journal.
System will automatically post Journal.
Step: 6 Review Journal

SUSPENSE JOURNAL
As per Accounting principles Debit amount should always equal to Credit amount for the same Company Value.
If both amounts are not equal, the difference amount will go to Suspense Account.
Setup required for Suspense Journal:
1. Create Suspense Account

2. Enable Option at SOB level
3. Create Journal / Review Journal
Step: 1 Create Suspense account
Navigation: Setup  Financials  Flex Fields  Key  Values.

Click on “Find”
Save.

Step: 2 Enable option at SOB Level
Navigation: Setup  Financials  Books  Define
Select “journaling Tab”
Enable Suspense Account and Assign Suspense Account
Save.
Step: 3 Create Journal / Review Journal

Enter one journal with Debit & Credit not equal
Save the Journal and Post the Journal

Say “Yes” Post the Journal.
Refresh the request and Review the Journal.
System will add one line for the difference amount as “Suspense line added by posting”.
MANUAL ENCUMBRANCE JOURNAL
Encumbrance meaning is Reserve the funds for future usage.
We do not do this practice in real time.
Navigation: Journal  Encumbrance

Category : Expenditure
Source : Encumbrance
Balance Type : Encumbrance
Type : Encumbrance
Approval is not applicable
Post.
BATCH JOURNAL
Where we have to post many journals we will create Batch Journals.
Through the Batch Journal posting is easy and Journal total control is more.
Navigation : Journal  Enter

Click on “New Batch”
Click on “Journal” button

We can enter number of journals through this batch
Save.
System will give message: Say “Yes”
Keep the Cursor in “Journal” line and press down arrow↓
Enter one more journal
Save
Post.

REVERSE JOURNAL
We generally reverse that journal, which got entered also got posted, where you find there is an error in the posted entry.
Once the journal is got posted it wouldn’t allow the user to make any changes.
The only solution or remedy is to reverse the journal.
In order to reverse the journal, first review the journal, use reverse button available in the journal window, also indicate the period
where the reversal entry should get created.
Navigation: Journal  Entry
Once we reverse the journal system will create one unposted journal, showing the earlier debit balance to credit side & earlier
credit balance to debit side.
Post this unposted journal.
After the journal reversal the particular account in the journal will show the balance Zero.
Reverse is of two types:
 Change sign (Profile option is required)

 Switch Dr/Cr.
Auto Reversal of Journal
Auto reverse is nothing but reversing journal automatically based on the criteria that we specify.
The criteria could be:-
 Journal category
 Reversal Method
 Reversal period
 Choose auto reverse check box
 Choose auto post reversal check box

Step: 1
Define reversal Criteria
Navigation: Setup  Journal  Auto reverse
Select category: Payments say OK

Category : Payments
Method : Switch Dr/Cr
Reversal period : Same period
Enable “Auto reverse” check box
Enable “Auto post reversl” check box
Save.
Step: 2
Enter one journal using category as “Payments” and post the journal
Step: 3
Perform inquiry on account balances.

Navigation: Inquiry  Account
Step: 4
Run standard report
Navigation: Reports  Request  Standard
Select Single request
OK

Name : Program – Automatic Reversal
Select the period in the Parameters
OK
Click on Submit
System will generate request
Submit any more requests: No
Refresh the request
System will generate unposted journal.
Post the unposted journal.

Step: 5
Perform Inquiry on Account balances
Navigation: Inquiry  Account
JOURNAL APPROVAL
Steps in Journal Approval:
Step: 1
Enable “Journal Approval” option at Set of Books level
Navigation: Setup  Financials  Books  Define
Enable “Journal Approval” option under “Journaling” tab
System will give message “Do you want to automatically enable journal approval for manual journals?” Say: Yes

Save.
Step: 2
Setup authorization limit to employee
Navigation: Setup  Employees  Limits
Select employee name from the LOV (List of Values) and enter authorization limit.
Step: 3
Assign employee to user
Go to System administrator
Navigation: Security  User  Define

Assign the employee name and Save.
Step: 4
Assign Profile option to Responsibility.
Navigation: Profile  System
Select your responsibility
Profile: Journals: Allow Preparer Approval

Under Responsibility select “Yes”
Save.
Step: 5
If the employee entered the amount beyond the approval limit it will go to next level of approval. To set the same
Navigation: Profile  System

Select “Go Up Management Chain”
Save.
We have 3 types of Approver Methods:
1. Go up Management chain
2. Go Direct
3. One stop then go direct.
Step: 6 Enter one journal to get approve
Navigation: Journal Enter

Save and click on “Approve” button
Say “OK”
Post the Journal.

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GENERAL LEDGER ORACLE FINANCIALS 11i 1

ORACLE is a RDBMS (Relational Data Base Management System).

ORACLE is having 300 applications.

Prepared by: SANDEEP BANDI Notes: Mr. RAM LAXMAN 1

FLEX FIELDS are two types.

1. Key Flex Field (KFF).

2. Descriptive Flex Field

DFF is used to capture additional information by enabling option in the forms

Under GL we have again two types of Key Flex Fields.

1. Accounting Flex Field.

2. Reporting attribute flex field.

Pre requisites for Chart of accounts are:

Define Organization Structure and Segments

Prepared by: SANDEEP BANDI Notes: Mr. RAM LAXMAN 2

Will get to see:

Application: General Ledger

Flex Field Title: Accounting Flex Field

Key in your own structure name.

Code: HCL Group of Companies

Title: HCL Group of Companies.

Description: HCL Group of Companies.

View Name: HCL_Group_of_Companies

Prepared by: SANDEEP BANDI Notes: Mr. RAM LAXMAN 3

Prepared by: SANDEEP BANDI Notes: Mr. RAM LAXMAN 4

Click on “Segments” button.

Enter your segment names (Company, Department, Accounts, Location)

Number: Serial Number

Name: Name of the Segment

Column: Segment Number (From 1 to 30)

Value Set: Assign value set to Segments.

** Maximum we can create 30 Segments

After assigning Value set to Segments

Click on “Flex Field Qualifiers” button

Balancing Segment FFQ to Company

Natural Account Segment FFQ to Accounts

Prepared by: SANDEEP BANDI Notes: Mr. RAM LAXMAN 5

Cost center Segment FFQ to Department

** One qualifier we can use only one time.

We have 5 Flex Field Qualifiers.

1. Balancing Segment FFQ

2. Cost Center Segment FFQ

3. Natural Accounts Segment FFQ

4. Inter Company Segment FFQ

5. Secondary tracking Segment FFQ

Prepared by: SANDEEP BANDI Notes: Mr. RAM LAXMAN 6

Select your structure

Enable: Allow dynamic inserts

Enable: Freeze Flex field Definition

Click on “Compile button”

Prepared by: SANDEEP BANDI Notes: Mr. RAM LAXMAN 7

Prepared by: SANDEEP BANDI Notes: Mr. RAM LAXMAN 8

Value set validation: 8 types

We have to create value set for each Segment separately.

We have Segments: Company, Department, Location, Accounts.

 Company Segment : Company Value Set

 Department Segment : Department Value Set

 Location Segment : Location Value Set

 Accounts Segment : Accounts Value Set

5. Date & Time

Prepared by: SANDEEP BANDI Notes: Mr. RAM LAXMAN 9

7. Standard Date & Time.

If format type is Character: Segment value will create as alpha numeric.

Define Value Set:

Value Set Name: HCL Company Value Set.