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ORACLE FINANCIALS
VOL - II
PRACTICE GUIDE
ORACLE FINANCIALS Oracle Financials Volume II
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ORACLE GENERAL LEDGER (11i)
Order management
Accounts Receivable
Fixed Assets Accounts Payable Inventory Purchase Order OM-AR-GL: Order to Cash Process PO-AP-GL: Procure to Pay ProcessOrder Management, Purchase Order, Inventory = Distribution ModulesGeneral Ledger receives information from sub ledgers.(Cash Management-Reconciliation Purpose)
Flex Field:
It’s a field made up of sub-field or segment.
Type of Flex Field:
Key Flex Field Descriptive Flex Field
Key Flex Field:
It is an intelligent key code character made up of meaningful segments.(Identify an object)Module Key Flex Field
AP No Key Flex Field
ORACLE FINANCIALS Oracle Financials Volume II
GENERAL LEDGER
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AR Sales Tax Location Flex Field & Territory Flex Field
FA Category Flex Field, Asset Key Flex Field & Location Flex Field
GL Accounting Flex Field
Descriptive Flex Field:
To track any additional information this is important for business.For Example:Order Form:
Order No: XX
Part No: COM-878-LTN
Descriptive: Computer-Monitor-Light Color [ ]
Part No: (Key Flex Field)Category: COM Computer
Item: 878 Monitor
Color: LTN Light Colour
Segments Values DescriptiveIn GL,Date : Calendar(Accounting Calendar)
Particulars : Chart of Accounts(Organization Structure-Capture Info. Of Trans)
Amount : Currency(Functional Currency &Foreign Currency)
Setups>Financials>Calendar
Accounting Calendar- Setup+Financials+Calendars:
Types: Monthly/Quarterly/Half-Yearly (Fiscal-Financial Year)
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13 periods - Tracking Information from last year to current year.
Purpose of 13th Month-31.12.11 to 31.12.11/31.03.11 date information’s can be transfer to current year.
On last date of year 31st march, we cannot pass all the entries and we can pass the entries during next working month. However we can give the effective date is 31st March for the same transaction
Currency –Setup>Currencies>Define:
In Chart of Accounts, we have 4 major components.
1. Segment: Minimum 2 & Maximum 30
Flex Field Qualifiers: Identification tag for segments (5 Flex Field Qualifiers)
Company – Balancing Segment** Department- Cost Center Account-Natural Account** Inter Company-Inter Company Segments Tracking-Secondary Tracking Segment
** Mandatory
Setup>Financials>key> Segments
Setup>Financials>key> Values
Setup>Financials>key>Aliases
Setup>Financials>key> Rules
Value Set: Container for values and the related attributes for each segment of Flex Field
List Type: Pop list-0 to 10
List of Values-11 to 200
Long List-200>
Security: No Security
Hierarchies-Apply to both parent and child
Non-hierarchy-Not Apply to child and Apply to parent only
Value Validation: Independent (Default)
Translatable: Restricted
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Pair & Special: Based on Request
(Segment can have maximum size is 25 only & GL is an independent validation type)
Dynamic Insert:
It allows all new combinations of segment values, which we created.
Rollup Groups: Grouping a parent value use for reporting purpose
Segment Qualifiers: Identification tag for values
2.Values:
Setting values for structure (KR COA- Karthik Chart of Accounts)
Periods Journal Posting
Open Y Y (Pass Journal Entries & Posting)
Closed X X (No Journal Entries & Posting)
Permanently Closed X X
Never Opened X X
Future Y X (Pass Journal Entries & No Posting)
3.Rules:
Cross Validation: Setup+Financials+Flexfield+Key+Rules
Avoid illogical combinations.
It controls the combination of segment values that you create when you enter the value in flex field window.
Security Rule: Setup+Financials+Flexfield+Key+Security+Define
Restrict the user to enter data at the responsibilities level.
Restrict data entry an online enquiry to specific values by using flex field security rule.
System hides the values when user tries to enter segment value.
It limits the access of different segment values for different responsibilities.
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After freezing the segment values (set up), make it compile.(Finished)
If we can give security rights to parent, we cannot access child codes. GL
4. Aliases:
It makes the functions in shortest way like a single alphabet. It automatic picks up the entire code.
Example: R- Rent
Default Accounts in Set of Books:
Retained Earnings Account
: Difference between Revenue & Expenses transfer to Retained Earnings (Mandatory)
Encumbrance Account : Temporary block of funds
Suspense Account : Difference will be posted (Dr/Cr)
Translatable Adjustment Account
: Functional Currency to Foreign Currency (Exchange profit/Loss Transfer to this Account)
Net Income Account : Income – Expenses
Rounding Difference Account
: Rounding the decimal points
Oracle General Ledger - It’s basically used for Adjustments and Apportionment only against payables , receivables and fixed assets.
Creation of Category:
Setup+ Journal + Categories
Category: KR
Description: KARTHIK Group of Companies
Creation of Company:
Setup + Financials +Flex Fields+ Key+ Values
Application : ORACLE GENERAL LEDGER
Title : Accounting Flex Field
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Structure : Operating Accounting Flex
Segment : Company
New Company:
Value: 33
Translated value: 33
Description: KR Group of Companies
Child Value: 51 to 52 & changed that parent company in testing database
We can move these child values to some other companies.
Segment Qualifiers for Created Company: Allow Budgeting – Yes & Allow Posting – Yes
We cannot enter a journal for parent company if child value defined.
After creation of category and company, we can create a journal entry.
Entering Journal:
Journal: KRJE1
Category: KR
Account: 33-000-7110-0000-000 = US$100,000 (Dr.) 7110 – Advertising
33-000-2210-0000-000 = US$100,000 (Cr.) 2210 - Accounts Payable
After entering the data’s. Click Check Funds – Reserve Funds
Status – Select for Posting
F11 Re-query – Paste the journal name and click Control F11 – Post it
Post it and view journal from Tools- Accounting (T- Accounts)
Reversal of Journal:
Review the Journal and select the month (Current Period/Entered Period)
Click Reverse – Status: Processing
Re query it and paste the journal number – Status: Reversed
GL Accounting Cycle:
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Security Rule:
Setup>Financials>Flex Field> key > Security> Define
Setup>Financials>Flex Field> key > Security> Assign
DEFINE:
For defining security rule, we have to enable the security rule in segment.
Setup+ Financials+ Flex Fields +Key + Segments
F11 – Control F11 (Oracle General Ledger – Accounting Flex Field)Select Operating Flex Field – Click Segments – Select Department – Open Name: DepartmentEnable: Security
Now, we can define the security rules.Application ORACLE GENERAL LEDGER
Title Accounting Flex Field
Structure Operating Accounting Flex Field
Segment Department (For Defining Security Rules, Select Department only)
Assigning security rules to department wise:Name: (We can give name in security rules)Department Security- Department is restricted to 110 through 130 Single Department- Department is restricted to only department 110
ORACLE FINANCIALS Oracle Financials Volume II
Consolidation Balances
Review Report
Close Period
Translation
Revaluation
Open Period
Enter/Import Journal
Review Posted Journal
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Elements: (Department Security)
Include: 000 to ZZZ (IncluKRg all the department s)
Exclude: 000 to 109 (In that included, we have excluded 000 to 109 departments)
Exclude: 131 to ZZZ (And, exclude 111 to ZZZ. Therefore, we have included 110 to 130 only)
Elements: (Single Department)
Include: 000 to ZZZ (IncluKRg all the department s)
Exclude: 000 to 109 (In that included, we have excluded 000 to 109 departments)
Exclude: 111 to ZZZ (And, exclude 111 to ZZZ. Therefore, we have included 110 only)
ASSIGN:
Setup> Financial> Flex Fields> key> Security> AssignApplication : ORACLE GENERAL LEDGER
Title : Accounting Flex Field
Structure : Operating Accounting Flex
Segment : Department (Defined Security Rules to be Assigned)
Find – F11- Control F11Select: Title- Accounting Flex Field & Operations Accounting FlexSelect: Structure- Operations Accounting FlexHere, applications automatically generated and we have to fix the responsibility and defined name to that responsibility – Save it.Therefore, the General Ledger Super User (Department) restricted to use the 100 through 130
Therefore, the General Ledger User (Single) restricted to use the 110 only
This is the security assigning procedure.
Cross Validation: Setup>Financial>Flex field>Key>Segments
Just making to avoid “illogical combinations” as per accounting system.
(To avoid illogical combinations)
In Segment,ORACLE FINANCIALS Oracle Financials Volume II
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Control F11- Application: Oracle General Ledger Flex field title: Accounting Flex Field
Check whether Cross validate Segment check box enable or not – Make it Enable. GL
Setup+Financial+Flexfield+key+Rules
In Structure- F11- Type Op%-Control F11
Captured: GL- Acc FF – Operations Accounting Flex- Vision Operations Accounting Flex Field
In Cross Validation Rules, define the cross validation rule. (FF Segment- For example 3 entities)
Account Company Legal
For each segment, we can assign the cross validation rules.
Account: (Create) & Error Segment: Account
Error Message: Account – balance Sheet (Assets, Liabilities & O/E) must be used with department 000 (Balance Sheet) – This is an error message display when we enter illogical combinations as we defined.
Elements:
Type From To
Include - 00-000-0000-0000-000 zz-zzz-zzzz-zzzz-zzz
Exclude - 00-00-1000-0000-000 zz-599-1699-zzzz-zzz
Exclude - 00-001-1700-0000-000 zz-599-3999-zzzz-zzz
Exclude - 00-601-1000-0000-000 zz-zzz-1699-zzzz-zzz
Exclude - 00-601-1700-0000-000 zz-zzz-3999-zzzz-zzz
Company-Department-Account-Sub Account-Product
Here, first we have included everything (zzz), and then we have excluded certain accounts from this department to this department as defined.
(Making end user avoid entering unnecessary departments and accounts due typical error and allow him to enter the accounts with some restrictions)
Company: (Create) & Error Segment: Account
Error Message: Company- Department 730 can only be used with Company 01
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This is an error message display when we enter illogical combinations as we defined
Elements:
Type From To
Include - 00-000-0000-0000-000 zz-zzz-zzzz-zzzz-zzz
Exclude - 02-730-0000-0000-000 02-730-zzzz-zzzz-zzz
Company – Department – Account – Sub Account – Product
Here, first we have included everything (zzz), and then we have excluded department 730 from Company 01. It means, this 730 department can only be used with company 01.
(Making end user should not enter this 730 department in company 02 and allow him to enter 730 departments with company 01 only)
Legal: (Create) & Error Segment: Account
Error Message: Legal: You cannot select Revenue accounts (4000-4999) with this department.
This is an error message display when we enter illogical combinations as we defined
Elements:Type From To
Include - 00-000-0000-0000-000 zz-zzz-zzzz-zzzz-zzz
Exclude - 02-730-4000-0000-000 02-730-4999-zzzz-zzz
Company – Department – Account – Sub Account – Product
Here, first we have included everything (zzz), and then we have excluded department 730 should not have Revenue accounts (4000-4999).It means; we cannot select Revenue accounts while selecting department 730.
(Making end user should not use the Revenue accounts while for the department 730)
Aliases: Setup>Financial>Flex field>Key>Aliases
In Structure-F11-Type Op%-Control F11
Captured: GL- Acc FF- Operations Accounting Flex – Vision Operations Accounting Flex Field
Enable the Short Hand Check box and size of alias size.
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Alias Template Description
Secretarial 01-740-7615-0000-000 Secretarial Services
When we enter a journal, in account line we can select (…) – Accounting Aliases….In that, we should type secretarial…. It automatically selects secretarial services and entire template.
Foreign Currency Journal:
Setup>Currencies>Rate>Types
Define your Conversion Rate Type- EUR Rate (For selecting purpose)
Setup>Currencies>Rate>Daily
Define your conversions accorKRg to USD to EUR
USD to EUR: 0.8 (When we enter 0.8, it automatically generate 1.25 (USD/EUR-1/0.08)
EUR=1.25 USD
Now, USD=1 (Functional)
Therefore, EUR=1/0.8 = 1.25 USD (Here 1 is USD & 1*0.08 = 1.25 USD)
Enter a Journal (Functional Currency- USD)
Journal – KRJE08
Currency – USD
Account Dr. Cr.
01-740-7615-00-0 10000
01-110-9999-0000-000 10000
When we enter journal in functional currency US$, 10000 is debited.
When we change the currency USD o EUR, the USD 10000*1.25 =USD 12500 will be debited from our account. (1.25 is defined for EUR)
Suspense Account:
Setup>Financials>Books>Define
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F11
Set of Books - Vision Operations%
It selects vision operations (USA)-Operations Accounting Flex
In Journal, check whether suspense account check box is enabled or not- Make it enable 01-000-2990-0000-000 (2990= Suspense Account)
For our information – 01-000-7826-0000-000 (782=Rounding)
Now, we can enter journal with short balances
Dr-15000
Cr-10000
When it makes post, it automatically makes suspense account of Rs.5000/- for balance of that transaction)
Debit Memo:
Purchase materials-100,000/-
Entry: (Journal)
Purchase Amount Dr.100, 000
To Supplier Account Cr.100, 000
After this transaction, we found that Rs.10, 000/- is reject material.
Therefore, we should issue Debit Memo for Rs.10, 000/-
Now, Payment entry:
Supplier Account Dr-100, 000
To Cash Account Cr - 90, 000
To Purchase Returns Cr – 10, 000
Tax Journal:
For learning purpose, we are using Vision Operations Set of Books
In real time implementation, Set of books set by system administrator
Setup>Financials>Books>Define
In GL Set of Books-F11-Vision Operations%-Control F11-Vision Operations (USA)
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Journaling, check whether Journal Entry Tax is enabled or not – Make it enable
Setup>Tax>Tax Options
In Account level, enter the particular account of tax required and enables Amount includes tax
In Tax Options:
In Set of Books Level:
Tax Code: As Required
Enable Amount includes Tax
In Account Level:
Enter : Tax Account (1340-Prepaid Expenses)
Enter : Tax Type (Input-If Payable Tax/Output-If Receivable Tax)
Enter : Tax Code (As Required)
Enable amount includes Tax.
Save it.
Then, Input tax Codes
Define : Tax Code
Enter : Tax Type
Rate : 8% (Define as required)
GL Account : Define the 33-000-1340-0000-000
VAT Type : As Required
Save it.
Create a new journal for tax calculation.
Journal: KRTAXJE
Category: KR
Tax: Required /Not Required
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In Line,
33-000-1340-0000-000 Rs.50000 (Dr.)
33-000-2210-0000-000 Rs.50000 (Cr)
Check Funds-Reserve Funds-Tax Journal
It automatically calculates tax as defined.
Statistical Journal: (For Formula Based Recurring Journal)
Statistical account starts with 9
For Number of share folder and Number of employees
For Example,
Expense-Rent Amount- Rs.100, 000/-
This rent amount should allocate to various department of particular company.
Therefore, we have to define statistical journal along with the ratios for distributing this rent amount to such departments. The rent paid before allocation in payables itself.
However, we can distribute the paid rent to various departments as defined in statistical journal.
In Journal, create a new journal (Currency – STAT)
In Line,
33-110-9210-0000-000 Rs.10000
33-120-9210-0000-000 Rs.20000
33-130-9210-0000-000 Rs.30000
No Offset Entry
Check-Funds-Reserve Funds-Post it.
Therefore, we have defined statistical journal is 1:2:3
General statistical formula: A*B/C
A- Expensed AmountB- One Line RatioC- Summation of Ratio
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That’s all – Based on statistical journal, we are going to define Recurring Journal
Recurring Journal:
Types of Recurring Journal:
Types Amount Account
Standard Applicable Applicable
Skeleton No Applicable
Formula Formula Only
Dollar Issue bonus
Standard:
Set fixed account combinations and amounts
Skeleton:
These journals have varying amounts in each accounting period.
We can define a journal entry without amounts and enter appropriate amounts in each accounting period.
Formula:
A formula entry is a recurring entry that uses formula instead of amounts.
Dollar:
To track out monetary balances
Steps for creating Recurring Journal:
Create recurring journal definition Generate Recurring Journals Review Entries Post
1. Standard: (Set fixed account combinations and amounts)
Journal>Define>Recurring
Batch: KR Rent Batch (Create)
Journal: Rent Recurring Journal (Create) Rent- 7420
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Category: KR (Attach)
Currency: USD
In Lines,
10 33-110-7420-0000-000 Rs.30000/- (Step-Enter-Rs.30000-Save it)
20 33-120-7420-0000-000 Rs.30000/- (Step-Enter-Rs.30000-Save it)
30 33-130-7420-0000-000 Rs.30000/- (Step-Enter-Rs.30000-Save it)
Credit Entry: 33-000-2210-0000-000 Rs.0.00/-
Save it
Generate and attach your period- Submit-View-Find &request –Status-Completed
Go to Journal –
Source: Recurring (Attach)
Category: KR (Attach)
Find – Recurring Journal summary will be displayed.
Created KR Rent Batch automatically generated Recurring Journal based on inputs given in
Journal>Define>Recurring
Review the recurring journal and post it.
Therefore, the paid amounts (7420-Rent) distributed to 3 departments from the offset entry (Line 9999-000 Department amount distributed to 110,120,130)
This is standard recurring journal.
2. Skeleton:
These journals have varying amounts in each accounting period.
Therefore, we can define a journal entry without amounts and enter appropriate amounts in each accounting period.
Journal>Define>Recurring
Batch: KR SKELETON RENT (Create)
Journal: Skeleton Recurring Journal (Create) Rent-7420
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Category: KR (Attach)
Currency: USD
In Lines,
10 33-110-7420-0000-000 No Amount (Save it)
20 33-120-7420-0000-000 No Amount (Save it)
30 33-130-7420-0000-000 No Amount (Save it)
Credit Entry: 40 33-000-2210-0000-000 No Amount (Save it)
Generate and attach your period-Submit-View-Find Request-Status-Completed
Go to Journal-
Source: Recurring (Attach)
Category: KR (Attach)
Find- Recurring Journal summary will be displayed.
Created KR Rent Batch automatically generated Recurring Journal based on inputs given in
Journal>Define Recurring
Review the recurring skeleton journal and Enter the amounts when and where required
Post it. (If period is opened as defined in GL, it can be posted)
Else, Query the batch and review the same – Change period (Open Period)
Ok-Save it- Post the Journal-Re query it- Status posted
Therefore, as per our requirement, we have entered the paid rent amount in various departments in recurring journal window. It will be distributed at the time of posted
This is Skeleton Recurring Journal.
3. Formula: A formula entry is a recurring entry that uses formula instead of amounts.
In this Formula Recurring Journal, we must use the Created Statistical Journal
Journal>Define>Recurring
Batch: KR FORMULA RENT (Create)
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Journal: Skeleton recurring Journal (Create) Rent-7420
Category: KR (Attach)
Currency: USD
In Lines,
10 33-110-7420-0000-000 (STAT)
Step 1-Enter-No Amount- 33-110-9210-0000-000-YTD-STAT (Currency)
Step 2- X -20 (Amount for Multiplication with Statistical)
20 33-120-7420-0000-000 (STAT)
Step 1-Enter-No Amount- 33-120-9210-0000-000-YTD-STAT (Currency)
Step 2- +-50000 (Amount for Addition with Statistical)
Credit Entry: 9999 33-000-2210-0000-000 No Amount (Save it)
Save it
Generate and attach your period – Submit –View –Find Request –Status- Completed
Go to journal-
Source: Recurring (Attach)
Category: KR (Attach)
Find – Recurring Formula Journal summary will be displayed.
Created KR Rent Batch automatically generated Formula Recurring Journal formulated based on inputs given in statistical journal – Journal Output is
33-110-7420-0000-000 200,000 (Formula 20x Rs.10000 Statistical)
33-120-7420-0000-000 70000 (Formula 50000+ Rs.20000 Statistical)
33-00-2210-00-0 270000 (Offset entry created)
Post it. (If period is opened as defined in GL, it can be posted)
Else, Query the batch and review the same – Change period (Open period)
Ok- Save it- Post the Journal- Re query it- Status posted
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Therefore, as per our requirement, the formula recurring journal posted based on statistical journal.
This is Formula Recurring Journal.
4. Dollar: To track our monetary balances.
Steps for Dollar Recurring Journal
1. First Pass a journal for Rent Account2. Inquiry/Account-Check the entry3. Define Dollar Recurring Journal-Define the dollar recurring lines with formula4. Generate dollar journal-Source &Find-Review the passed Journal
Pass the regular journal entry (KR DOLLAR JE) for Commission payable or rent distribution. Then,
Journal>Define>Recurring
Batch: KR DOLLAR RECURRING (Create)
Journal: Dollar Recurring Journal (Create) Rent-7420
Category: KR (Attach)
Currency: USD
10 33-110-7420-0000-000 (Rent)
Step 1- Enter –No Amount – 33-110-7420-0000-000
- Actual –PTD-USD
Step 1- X - 0.11 (Rate for Multiplication)
For creating offset entry,
9999 33-000-2210-0000-000 – That’s all and Save it
If we don’t want offset entry, just
Save it
Generate and attach your period-Submit-View-Find Request-Status-Completed
Go to Journal-
Source: Recurring (Attach)
Category: KR (Attach)ORACLE FINANCIALS Oracle Financials Volume II
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Find- In Summary KR DOLLAR JE will be displayed.
Created KR Dollar Journal generate the dollar journal- Track monetary balances
(We cannot pass journal entry for parent company. Because, child values only created as department)
Mass Allocation: (Allocate particular expenses to various department)
A single journal entry formula that allocates revenues and expenses across a group of cost centers, departments, divisions and so on.
[A*B/C] A-Cost Pool Account
B-Ratios (1:2:3-Statistical 9210)
C-Summation of Ratios (1+2+3=6)
Steps:
1. Create Mass Allocation Definitiono Enter batch Informationo Create Mass Allocation Formulao Enter Mass Allocation Formula
2. Generate Journals3. Review Journals4. Post the Journals
Before that,
Create a Statistical Journal(Currency-STAT)
In Line,
33-110-9210-0000-000 Rs.10000
33-120-9210-0000-000 Rs.20000
33-130-9210-0000-000 Rs.30000
No Offset Entry
Check Funds-Reserve Funds-Post It.
Therefore, we have defined statistical journal is 1:2:3
1. Pass expense journal (Advertisement Account-7110)
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33-000-7110-0000-000 (Dr) Rs.90000
33-000-2210-0000-000 (Cr) Rs.90000
These expenses accounted in 000 No department (Parent) and will allocate to 100 (Resources Department) in extend, allocate to sub-divisions
2. Mass Allocation
Journal>Define >Allocation
Name: KR MASS ALLOCATION (Create)
Balance Type: Actual
Status: Not Validated (Automatic)
Click- Formulas & Define Formulas
[C- Constant L- Looping S-Summation]
Full Balance – It can select any currency and allocate
Single Entered Currency – Particular Functional Currency/Required Currency (Enable &USD)
Full Cost Pool Allocation – Enable: Decimals also will be taken care
-Not Enable: Decimals will be rounded off and take rounded amount.
A: Cost Pool-Created Expense Journal- Allocating to 100 (Resources Department)- Constant
33-000-7110-0000-000 USD-PTD-Current Period
C- C - C - C - C
B:Ratio-Created Statistical Journal- Department Looping to Stat ratios (100)- Looping
33-100-9210-0000-000 STAT-YTD-Current Period
C- L - C - C - C
C: Summation- Summing Statistical Journal to 100 (Resources Department)- Summation
33-100-9210-0000-000 STAT-YTD-Current Period
C- S - C - C - C
T: Target- Looping Expense Journal – From 100 (Resources Department)- Looping
33-100-7110-0000-000 USD-PTD-Current Period
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C- L - C - C - C
O: Offset- Knock off Created Expense Journal Dr –Cr from 100 Expense Journal - Constant
33-100-7110-0000-000 USD-PTD-Current Period
C- C - C - C - C (As like Cost Pooling Account Line)
(Be sure to also follow the account segment cross validation rules. Because, the mass allocation validation program does not check across validation Rule. If cross validation rules are not matched with mass allocation, it creates invalid journals)
Click Validate- Validate the entered Formula - Requery F11-Control F11-Status-Validated Generate it-Attach Period-Submit-View Request-Status-Completed
Go to Journal:
Source- Mass Allocation
Category- KR
Find- The defined formula allocating the cost pooling expenses to statistical department values as formulated
This is the mass allocation procedure.
Inter Company:
In set of book, check whether Balance Inter Company Journals check box enable or not (Enable)
Setup>Accounts>Intercompany
In this there are 2 options
1. Clearing Company Usage
Always use Many to Many
Clearing company Intercompany Transactions only
Always use Clearing Company- While transferring any asset between inter-companies, the asset payment will be routed some other particular company (Payment company will be varied)
Many to Many Inter Company- While transferring any asset between inter-companies, the asset payment will be routed from the same intercompany (Payment Company will be anyone intercompany)
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2. Default Options (Action: If no clearing company specified)
Error Out Use Default Clearing Company Use Default Balancing Account
Use Default Clearing Company- If it is enable, we have to define default payment clearing company for all the intercompany transactions.
Use Default Balancing Account – If it is enable, it will use default balancing account and it will not consider Always use clearing company & use default clearing company.
Many to Many Inter Company Transactions only allowed using default-balancing account
Prerequisites:
1. Define your set of books.2. Enable Balance Interfund Journal in the Set of Books window.3. Define your journal entry sources.4. Define your journal entry categories.5. (Optional) Define your interfund segment
Source: Manual (Attach as required)
Category: KR (Attach)
Clearing: Many to Many Default: Error Out
(1st we should define Many to Many and error out)
Company Due from Account Due to Account
01 01-000-1811-0000-000 01-000-2371-0000-000 (For Transfer)
02 02-000-1812-0000-000 02-000-2372-0000-000 (For Transfer)
03 03-000-1813-0000-000 03-000-2373-0000-000 (For Transfer)
KR 33-000-1814-0000-000 01-000-2374-0000-000 (Payment Route)
All Other 33-000-1815-0000-000 33-000-2375-0000-000 (All other companies routed their payment through this company)
(2nd – After defining accounts, now you can choose always use-clearing company-KR)
(Therefore,KR is routed company for all Intercompany transactions)
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If we define Always Use Clearing Company, the clearing company will be defined in that check box and all the intercompany transactions payment will be routed through clearing company only.
Now, we can create a journal for intercompany transactions.
Journal: KR ICJE01
Category: Inter Company Transfer
Source: Inter Company
02-000-1560-0000-000 Rs.10000/- (Receiver of Asset)
01-000-1560-0000-000 Rs.10000/- (Supplier of Asset)
Check Funds-Reserve Funds-Post
Requery it-It will automatically generate journal and make payment through KR
It will generate journal as follows.
Account Dr. Cr.
3. Payable KR-000-2371 10000
2. Receivable KR-000-1812 10000
4. Receivable 01-000-1814 10000
1. Payable 02-000-2374 10000
Now,02 got an asset and 01 payable to KR and KR Receive the funds from 02 and pay to 01
This is the process when we are defining inter company transactions.
If the asset transfer is balance,it will be accepted.
If we change these options,it depends on company divisions and selects only one.
If the Error and Many to Many transactions is enable,the error message will be displayed while passing the entry.
This is what inter-company procedure and transactions.
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BUDGET:
Budget is estimated account balances for a specified range of periods then compare estimated amounts with actual balances to determine variances.
Budget consists of periods, accounts and amounts
In oracle general ledger, create a budget by designating amounts to be a combination of accounted period. (If expensed amount is less than the budget –Favor)
(If expensed amount is more than the budget – Adverse)
Budget Accounting Cycle:
Define budgets and organizations Enter budget amounts Review and correct budgets Freeze budgets Report on budgets
Types of Budget:
1. Non-Funding Budget2. Funding Budget – Request Budgetary Control
(We can enable this budget define itself and we should not enable this in set of books)
Open- Can make corrections (After create a budget, it’s in current status, Then freeze it)
Frozen- Cannot make corrections
1. Non-Funding Budget- Just plan the budget and does not meet the expenses and spend money (Long term oriented)
2. Planning the budget and match with actual expenses. (Immediate purpose)
1.Non-Funding Budget:
1.Define the Budget:
Budget>Define>Budget
Name: KR BUDGET NF
Status: Open
(Should not enable the Require Budget Journals)
Budget Periods: Jan-00 to Mar-00ORACLE FINANCIALS Oracle Financials Volume II
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Click Open Next Year
View-Request –Find-Status: Completed
2.Budget Organization:
Budget>Define>Organization
Name: KR BUDGET ORGAN NF
Display: 2-1-3-4-5
We can set passwords securities
Click Ranges
Line Low High Type Currency
1 33-110-7110-0000-000
33-130-7110-0000-000
Entered USD
Advertising Advertising
After making ranges, don’t save it and then,
Click Range Assignments: (Just assign only one department)
Account: 33-110-7110-0000-000 (Low Account only defined here)
After making range assignments, save it
Concurrent request process – Status Completed
3. Budget Amounts:
Budget>Enter>Amounts
Budget Organ: KR BUDGET ORGAN NF (Attach)
Budget: KR BUDGET NF (Attach)
Accounts Periods: Jan-00 Mar-00
Worksheet Mode-For more accounts
Single row mode- For only one account
In Worksheet mode- Account
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33-110-7110-0000-000
It will automatically generate defined budget periods without amounts.
Click-Budget Rules
1. Divide Evenly-The defined amount will be diviKRg evenly for defining periods2. Repeat per period- It will repeat the same amount for particular defined period3. 4/4/5 – Totally 52 weeks in a year;
4=1st Month=4 weeks4=2nd Month=4 weeks5=3rd Month=5 weeksTotal=13 weeks x 4 Quarters =52 Weeks
Select Divide Evenly
Amount – 90000
Apply & Ok – The defined amount will be divided evenly.
Click-Budget Posting-View-Request-Find-Status-Completed
Check funds available or not with the help of Inquiry>Funds
(Checking funds for one period and one account)
Attach your budget-KR BUDGET NF
Account- Enter defined account – 33-110-7110-0000-000
It will display Rs.30000 as budgeted for one particular month (Jan 2000 only)
Check balances and variances with the help of Inquiry >Account:
(Checking funds for all periods and for many account)
(We can post lot of journals at one period time)
Attach period (Jan 00 to Mar 00)
Select Budget & Attach your budget (KR BUDGET NF) and
Enter budget account 33-110-7110-0000-000
It will display show balances, show journal details and show variances for Jan 00 to Mar 00.
2. Funding Budget:
1. Define the Budget:
Budget>Define>Budget
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Name: KR BUDGET FUND
Status: Open
(Require Budget Journals – Enable)
Funding budget requires Funds Check Level. (Requires Control)
Control – None/Advisory/Absolute
Budget Periods: Jan-00 to Mar-00
Click Open Next Year
View-Request –Find-Status: Completed
2. Budget Organization:
Budget>Define>Organization
Name: KR BUDGET ORGAN FUND
Display: 3-2-1-4-5
We can set password securities
Click Ranges
Line
Low High Type Currency
1 33-110-7120-0000-000
33-130-7120-0000-000
Entered USD
Public Relation Public Relation
After making ranges, don’t save it and then,
Click Range Assignments: (Just assign only one department)
Account: 33-120-7110-0000-000 (Low Account only defined here)
After making range assignments, save it
Concurrent request process-Status Completed
3. Budget Amounts: (In Journals)
Budget>Enter >Journals
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Budget Organ: KR BUDGET ORGAN FUND (Attach)
Budget: KR BUDGET FUND (Attach)
Accounts Period: Jan – 00 Mar – 00
Worksheet Mode – For more accounts
Single row mode- For only one account
In Worksheet mode - Account-Click (Control F11)
7120-120-33-0000-000
It will automatically generate defined budget periods without amounts.
Click – Budget Rules
Select Divide Evenly
Amount – 90000
Apply & Ok – The defined amount will be divided evenly.
Click – Create Journals
Journal batch: KR BUDGET FUND JOURNAL BATCH (Create)
Category: KR (Attach)
Click – Run Journal Import – Concurrent Request Generated – Click Done.
View – Find – Status – Completed – View Output – Copy the Created Batch
Go to Journal Journal>Post
In Find Journal batches – paste the copied batch with %
Find – Post Journals Summary will be displayed
Enable all the budget periods and Post it.
Concurrent request generated
Go to Journal – Journal>Enter
Select your Funding budget batch and find – Status – Posted
This is the process of Funding and non – Funding budgets.
*** In Budget – Funds Check Level
Funding budget requires Funds Check Level. (Requires Control)ORACLE FINANCIALS Oracle Financials Volume II
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Control – None/Advisory/Absolute
None – We have seen the above process.
Advisory – Budget is created and reserve funds for Rs.90000/- for meet an expense.
If Budgetary Control Group is Advisory, we can meet that expense with advisory message if the actual amount exceeds.
Absolute – Budget is created and reserve funds for Rs.90000/- for meet an expense.
If Budgetary Control Group is Absolute, we can meet that expense with Absolute message if the actual amount should be exact budgeted.
Period type:
Entered: For Funding and Non – Funding budgets
Calculated: For Mass Budget and Formula Budget
Boundary:
If boundary is period type, we can use that fund for that period only (PTD) If boundary is quarter type, we can use fund from period to quarter level (QTD) If boundary is YTD type, we can use fund from period to year level (YTD), etc.
Period to Date
Quarter to Date Year to Date Project to Date
PTD Ok
(If Bound is period)
No No No
QTD Ok
(If Bound is Qtr)
Ok
(If Bound is Qtr)
No No
YTD Ok
(If Bound is YTD)
Ok
(If Bound is YTD)
Ok
(If Bound is YTD)
No
PJTD Ok
(If Bound is PJTD)
Ok
(If Bound is PJTD)
Ok
(If Bound is PJTD)
Ok
(If Bound is PJTD)
Budgetary Control Group (Funding budget requires Funds Check Level – Requires Control
Budget>Define>Controls
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Find – Standard
Category – Other (Select)
Funds Check Level – None/Advisory/Absolute
Control – None/Advisory/Absolute
Advisory – Budget is created and reserve funds for Rs.90000/- for meet an expense.
If Budgetary Control Group is Advisory, we can meet that expense with advisory message if the actual amount exceeds. (In Journal, we can enter a journal for excess amount with an advisory message)
Absolute – Budget is created and reserve funds for Rs.90000/- for meet an expense.
If Budgetary Control Group is Absolute, we can meet that expense budgeted amount only. We cannot make payment for excess amount than budgeted amount.
Budgeted control room form allows you to define rules controlling how strongly a budget controls spenKRg. For each combination of journal source and category, you can define whether expenditure beyond a budget or accepted without command accepted with an advisory or rejected.
When you submit funds check or find reservation request, GL searches for the budgetary control rule and match the source and category of your journal entry.
If no matches from, GL substitutes your source and category.
Advisory/Absolute: (For Funding Budget Only)
If we want to make Advisory / Absolute funds check level, we have to follow the following steps.
1. Create a new budgetary control group (KR Budgetary Control Group)2. Change the funds check level to Advisory/Absolute3. Create new Funding budget organization for advisory/absolute function4. Create Ranges and Enter the amount in Budget>Journals, budget rules and regular
process up to posting.5. After posting the budgeted journal (Advisory/Absolute), we can enter actual journal entry.
In addition, budgetary control groups having following items.
1. Tolerance - % & Amount2. Override Amount
1A.Tolerance %:
When we are defining budgetary control group as Advisory/Absolute, the tolerance % helps to add % amount with budgeted amount
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(Budget Rs.16000+Tolerance 10% on Budget Rs.1600=Rs.17600/- will be allowed maximum for making an expense journal to compare with budgeted.
1B.Tolerance Amount:
When we are defining budgetary control group as Advisory/Absolute, the tolerance amount helps to add the tolerance amount with budgeted amount
(Budget Rs.16000+Tolerance Amount Rs.2000=Rs.18000/- will be allowed maximum for making an expense journal to compare with budgeted.
If we defined both % and amount, it will consider whichever is less.
% = Rs.1600
Amount = Rs.2000
In this situation, tolerance will consider Rs.1600/- only (Minimum) and it will be added with budgeted amount (Advisory/Absolute) for meet the expense.
2. Override amount:
The defined budget amount is Rs.90000/- (Absolute)
If we define a override amount is Rs.105000/- the expense journal will allow to meet Rs.105000/- as maximum budgeted.
Encumbrance: Temporary blocking of funds against budget.
Encumbrance is a charge or lien to block the budget amount.
(Reserving Funds for making some particular or budgeted expenses)
In payable, there is an Encumbrance which is use to follow in our enterprises.
In Encumbrance,
Commitment – Purchase Request only
Obligations – Purchase Request is converted in to Purchase Order
Journals>Encumbrance
The budgeted amount for particular account= Rs.100000/-
The encumbrance journal for the same account = Rs.20000/- (Reserved/Temporary Blocked)
Therefore, Balance = Rs.80000/- only can spend for that account expense.
If we want to perform encumbrance, we need to follow the following steps
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1. Create a Funding budget for Rs.60000/- (Creation of Budget Definition, Budget Organization, Budgetary Controls, Journals and up to posted – Rs.60000/3M = 20000 PM)
2. Then, create encumbrance journal (Journals>Encumbrance) for Rs.8000/- Post it3. In Inquiry – Funds – Budget Rs.20000; Encumbrance; Rs.8000; Actual Rs.9000; Ava:3K
a. Therefore, the Rs.8000 is temporary blocked out of Rs.20000 for that particular account and actual spent Rs.9000 only. The Remaining funds available = Rs.3000/-
Budget Transfer:
Account to Account Fixed Amount or Percentage GL automatically runs journal import and An un-posted journal is created
Budget>Enter>Transfer
Budget: KR BUDGET FUND (Funding Budget) – Select
Batch Name: KR BUDGET FUND TRANSFER BATCH (Funding Budget Transfer) – Create
From To
Budget Organization Account Budget Organization Account
KR BUD ORGAN FUND 33-110-7210-0000-000
KR BUD ORGAN NF 33-110-7110-0000-000
Click: Transfer amounts
Select Period: Jan 00/Feb 00 /Mar 00
Define: % or Amount for Transfer from particular account to transfer account (Rs.2000/-)
After defining period and amount, click transfer by period range – Old & New balances will be displayed.
To see the transfer impact: Inquiry – Funds
Select Account: KR FUNDING BUDGET 33-110-7210-0000-000
Budget Rs.18000/- only (Because, Rs.2000 transferred to 7110 account)
Budget Rs.18000; Encumbrance; Rs.8000; Actual Rs.9000; Funds Available: Rs.1000/- Only
This is the result after budget transfer.
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Formula Based Budget: (For Non – Funding Budget Only)
In Budget Organization,
F11 – KR% - Control F11
Select: KR BUDGET ORGAN NF (Non Fund)
Go to Ranges – Add New Line and define High and Low Accounts with Type: Calculated
In continuation, click ranges and define the account and type Calculated
Save it – Concurrent Request – View – Request – Find – Status: Completed
Now, we have created an account for formula based non – Funding budget (Calculated)
Then,
Budget>Define>Formula
Batch: KR NF Formula Batch (Create)
Journal: 8115Journal (Create)
Category: KR (Attach)
Currency: USD
In Lines,
10 33-110-8115-0000-000
In Formula,
1 Enter Rs.0 33-110-9350-0000-000 Actual YTD STAT
2 X Rs.10 (For X)
Save it
Click Calculate
Attach Period – Submit – Request – Status: Completed
Result:
Rs.10000 (Statistical) x10 = Budget Amount Rs.100, 000/- (Formula based Non- fund budget)
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Then check the non- Funding budget with formula based calculation Result,
+Inquiry+Account = Select periods & Budget Type and Account – Result Rs.100, 000/- (Budget)
That’s all.
Revaluation:
Translation foreign currency balances to local currencies
Daily Rate Period end rate One time rate
Difference between foreign and local currency = Unrealized gain or loss
Setup>Currencies>Rates>Daily
Daily Rate: For daily currency rate purpose
From To Date Type USD to EUR EUR to USD
USD EUR 01APR-04 KR EUR 0.5 2.0
0.5 USD = 1 Euro (1 Euro/0.5 USD = 2 Euro)
Therefore, 1 USD = 2 Euro
Setup>Currencies>Rates>Period
Period Rate: For year-end or month end average closing purpose
From To Type Period Average End Revaluation
USD EUR Actual APR-04 1 0.8 1.25
First Enter the Period and then enter the convertible currency type – EUR
Average/End/= 1/0.8= 1.25 Revaluation Rate
0.8 Euro = 1 USD
Therefore, 1 Euro = 1.25 USD. That’s all
Now we can enter currency conversion journal.
Go to Journal>Enter
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Journal: KR REVAL 01 Currency: EUR (Change the Currency from USD to EUR)
Period: Mar – 04
Category: KR
Entered Converted
Line Account Dr. (EUR) Cr. (EUR) Dr. (USD) Cr. (USD)
1. 33-000-1560-0000-000
100, 000 0 125, 000
2. 33-000-2210-0000-000
0 100, 000 0 125,000
We have changed the functional currency USD to EUR in journal.
Therefore, when we are entering 100, 000 EUR, it will automatically converted as USD
[Euro 100, 000 @ 1.25 USD = USD 125,000] This is what conversion entry from functional currency to another currency. Actually, we have entered Euro 100, 000 and it will debit
USD 125000 from our account.
Now, we can do revaluation.
Go to Currency>Revaluation
Revaluation: KR Revaluation (Create)
Auto Post Revaluation: (If it enables, the revaluation entry will be posted automatically after perform the function.
Currency Options:
All Currencies: We can use revaluation for multiple currencies
Single Currency: Euro
Rate Options:
Period Rates: Enable it
Gain/Loss Accounts:
000-7846-0000-000 (Gain)
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000-7848-0000-000 (Loss)
Revaluation Changes:
Low High
33-00-1560-00-0 33-000-1560-0000-000
Click Revaluation – It will generate and run the revaluation program.
Name: Program – Revalue Balances (Automatic Generated)
Parameters – Period – Apr-04
Submit – Concurrent Request – View – Status – Completed
Go to Journal>Enter
Source: Revaluation
Period: Apr-04
Find – Journal Summary - Review your Currency Conversion Entered Journal
Post it and Entry is,
Dr. Cr.
Result: 33-000-1560-0000-000 - -
33-000-7848-0000-000 - 75, 000 (USD) – Loss
1.25 USD – 1 Euro
1 USD - ? 0.8
USD 125000 – To be Paid
EUR 100000*0.5 = USD 200, 000 (1 EUR/0.5 Period End = 2 USD)
USD 200, 000 – Actual Paid
Difference = USD 75000 (Exchange Fluctuation) – That’s All.
Revaluation – For Example,
UAE USD
0.5 2
Therefore,
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1 USD = 2 UAE
? = 1 UAE
0.5 USD * 100, 000 UAE = 50000 USD to be Received
0.25 USD * 100, 000 UAE = 25000 USD Received
Revaluation Value
Therefore, 50000 – 25000 = 25000 USD (Exchange Fluctuation Loss)
Translation:
Translation of functional (local) currency to any foreign currency.
However,
In translation, we should not change local currency to foreign currency in journal entry
Functional Currency Foreign Currency
USD EUR
1 0.25
Therefore, 1/0.25 = 4 (1 EUR = 4 USD)
Currency>Translation
Value Translation Period
KR EUR Apr-04
Click – Translation – Required ID will be generated
Check Converted Balances:
Inquiry>Account
Enter your periods and your target currency and select – Translated
Type your account and show converted balances
Entered 100, 000 USD * 0.25 EUR = USD 25000 Actual Paid
Finally in translation, we have entered USD 100000 and USD 25000 only accounted in our book based on translation
Cumulative Translation: (Like Debtors and Creditors Reinstatement at end of year)
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Reports>Request>Standard
Name: Trail Balance Detail
Company: 33
Currency: USD
Period: Apr-04
Type: PTD
Submit – Request
The difference of translations transfer to cumulative translation account
The difference between month and year rates transfer to cumulative translation adjustment
And it is purely based on year-end and period end rates.
Consolidation:
If Enterprise dealing Single Currency (Single Set of Books) – Consolidation will be easy
If Enterprise dealing Multiple Currency (Multiple Set of Books) – Consolidation is bit complicated
- Accounting Rules- Segment Rules – This is applicable
Now, Pass journal entry in both parent and subsidiary company
In parent: (Vision Operations)
Journal – KR MASSCONSOLIDATION 1EO1
33-000-7695-0000-000 20000-
33-000-2210-0000-000 - 20000
Check funds – Post it (Mar 04)
Switch to Vision Services (Subsidiary) – Check whether your 33 company in services or create
Journal – KR MASSCON JE SUBSIDIARY
01-110-7675-0000-000 10000 -
01-120-7675-0000-000 12000
01-130-7675-0000-000 13000
01-000-2210-0000-000 - 36000
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Save it
In subsidiary,
Consolidation>Define>Map
Mapping: KR Mass Con Mapping Rule
Subsidiary: Vision Services
Parent: Vision Operations
Currency: USD
Enable – Audit Mode
Usage – Standard
Aug – For Banking
Method:
Transactions (Same Currency)
Balances (Difference Value)
Click Segment rules:
Company Copy Value From Services Company
Department Use Rollup Rules Services Department
Parent – 000 – Detail Ranges
Subsidiary – 110 to 110
Account Copy Value from Services Account
Sub Account Assign Single Value 0000
Product Copy value from Services Product
Save it
Period – Mar 2006 Mar 2006
Click – Transfer – Submit
Conversion Mapping Rules – We can define in anywhere either subsidiary or parent company
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Go to parent (Vision Operations)
In Journal:
Source – Consolidation – Apr 2006
In this, we can get subsidiary journal entry as un – posted. You just review and post it.
Then, Subsidiary journal entry posted in parent company.
This is what consolidation process – That’s all
GL Reports: Trial Balance/Ledger Report/Variance Report/Etc.
To view the reports – Reports>Request>Standard
Attach your Request – Submit and View
Financial Statement Generator (FSG)
Preparing statement for ledger accounts with balances only for MIS
Row Set (Mandatory) –format of content in Rows in FS Column Set (Mandatory) – format of content in columns in FSG report Column Builder (Mandatory) Row Order Content Set Display Set
Types of Report:
Comparison Report Variance Report
1. Define a Row Set:
Reports>Define>Row Set
Name: KR Reports
Click – Define Rows
Line 10 Line item: Expense for 110
Line 20 Line item: Expense for 120
Line 30 Line item: Expense for 130
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Accounting Assignments:
Line 10 33-110-7695-0000-000 (Save)
Line 20 33-120-7695-0000-000 (Save)
Line 30 33-130-7695-0000-000 (Save)
Line 40 Expenses Total
Click – Calculation
Formula:
Line Enter Low High
1 + 10 30 (Line Total)
2. Define a Column Set:
Reports>Define>Column Set
Name: KR Reports
Click – Define Column
Position: 51 Amount Type: PTO – Actual
Sequence: 10 Currency: USD
Offset: -1
(-1 = March; 0=Current Month; 1=Next Month)
Display Zone: Enable
Position: 76 Amount Type: PTO – Actual
Sequence: 20 Currency: USD
Offset: 0
Save it.
110 – 100 (100 is 20% of 500 – Percent of Column)
120 – 200
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130 – 300
-------
500
--------
Click: Build Column Set
Adjustment: Ok
Save it
3. Reports>Define>Report
KR Financial Report
Attach your Rows and Column
Run report
New run window opened – KR Financial Report
Submit – View – Request – Completed – Output
Report will be generated
For Variance Report,
Pass an expense journal entry for budgeted amount.
Then only, variance report will be generated
Go to:
Row Set & Column Set – Amount Type: ITO – Variance (Transferred value =1 )
Make it Process – View Output
Variance report also include in that report.
Inter Company Transaction:
Inter-Company transaction held in difference set of books
Subsidiaries Transactions type Clearing Account
1. Setup>Inter-company>Subsidiaries
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Subsidiary: Vision Services (Create/Your Inter-company)
Inter-Company Book: Attach Inter-Company Book
Currency: USD
Company: 01 (Another Company) – Attach as required
2. Transaction Type: Create KR Transaction Type
3. Clearing Accounts: Clearing Accounts (1810) After Setup
Now,
Transactions>Enter (In Find Transaction – Click View) – This is for parent company
Attach: Receiver & Sender & Period & Transaction Type
(Services) (Operations)
In Line:
Account Amount (Cr.)
CT-000-1810-0000-000 100000
Inter-Company Clearing Report:
Account Amount (Dr.)
CT-000-1810-0000-000 100000
(Receivable)
Approve: Number will be created
Submit: Completed
Switch Responsibility to Vision Services:
Same process as like parent company
M1-000-2371-0000-000
(Payable)
Approve: Number will be created
Submit: Completed
View – Request – Single Request
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Completed
View – Request – Single Request
Name: Program – Intercompany Transaction/Transfer
Parameter: Attach
Submit – View from Transaction + Enter
Number will be generated
Attach the generated number – Yes (Transferred)
ORACLE – FIXED ASSETS
FIXED ASSETS:
It ensures a particular company property and equipments are accurate and for calculating depreciations as per companies act and income tax acts.
Setups in Setup
Setup>Asset system>Fiscal years
1. Create Fiscal year – KR ACCOUNTING YEAR 2005 – APR 05 TO MAR 06
2. Create Calendar year – KR MONTHLY (Fiscal/Calendar/None)APR-05 = 01-APR-05 TO 30-APR-05 Up to 01-MAR-06 TO 31-MAR-06
3. Setup>Asset system>Prorate Conventions – KR CURMON (Current Month Convention (Define))Period: 01-APR-05 TO 30- APR-05Prorate Date: 01-APR-05(Prorate0: Purchased on 01.12.11 – Calculate depreciation from December and not from beginning of the year.)If we define Prorate for 15 Days – Purchased 20.12.11 – Calculate depreciation for 15 days
4. Book Controls: KR CORP BOOK – Under Corp BookCalendar:GL Set of Books – Vision Operation
Depreciation/Fiscal/Prorate – Automatic generation by definition of KR Current Period – We defined from Apr- 06.However, it takes May-05Natural Accounts:
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Company – 27 – Vision Consulting LimitedDepartment – 730 – FinanceAccount – 9999 – Not Applicable Sub-Account – 0000 – No Sub AccountProduct – 000 – No Product
Journal Categories:
Journal Resource – Assets
Others – General; Fill all the fields; Addition, Adjustment
After Book Controls, we have to create Asset Categories in Flex Fields of General Ledger (GL) Operations
Switch to GL Responsibility – GL Vision Operations
Setup>Financials>Flex Fields>Key>Values
1. Find Key flex field segment: Category
Application – Oracle Assets
Title – Category Flex field
Structure – Vision Category Flex field
Segment – Major Category
Find (Create Major Category Items in Segment Values)
In Find – Segment Values window opened for (Major/Minor) Creation of Fixed Assets
1. KR Land &BuilKRg 2. KR Plant & Machinery 3. KR Vehicles4. KR Office Equipment5. KR Expensed Asset
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KEY FLEX FIELD
CATEGORY FLEX FIELD
LOCATION FLEX FIELD
ASSET KEY FLEX FIELD
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6. KR Intangible Asset
Click Find (i.e. torch button, it change to MINOR category)
Now, we can create minor items under major items
If Independent Value is Major Category, dependent value is minor category
Under KR Land & BuilKRg
Block1 – KR LAND
Block2 – KR BUILKRG
Under KR Plant & Machinery
Plant1 – KR Plant
Plant2 – KR Machinery
Under KR Vehicles
Ford – KR Cars
Lancer – KR Bike
KR Office Equipment
- KR Computer- KR Xerox
KR EXP ASSET
- KR Tools- KR Mobiles
KR Intangible Assets
- KR Goodwill- KR Patent
2. Find Key flex field segment – Location:
Application – oracle Assets
Title – Location Flex field (BuilKRg/City/State/Country)
Structure – Vision Flex field Location Flex field
Segment – BuilKRg/City/State/Country
Under BuilKRg [Add New]ORACLE FINANCIALS Oracle Financials Volume II
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Area 1
Area 2
Under City [New]
Chennai
Bangalore
Under State [New]
TamilNadu
Karnataka
Under Country [New]
India
3. Find key flex field segment: - Asset Key
Application – oracle Assets
Title – Asset key flex field
Structure – Asset Key Flex field
Segment – Asset Key (Some construction, electrical and mechanical related assets)
Under Asset Key
Factory
Office
In General Ledger – Aliases
For creation of Aliases, we have to create all the short names in General Ledger itself belong to particular company
After creation of key flex fields in order o fixed assets, switch over to Oracle Assets for giving linking categories to books
Setup>Asset System>Asset Categories (Linking Minor Assets to Major Assets with Dep Method)
Asset Categories – [F11] – KR LAND & BUILKRG – BLOCK 1
Category type – Non Lease
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Ownership – Owned
GL Accounts: Book – KR CORP BOOK
Asset Cost – 27-000-1620-0000-000
Asset Clearing – 27-000-1570-0000-000
Dep.Expense Segment – 7320
Accumulated Depreciation – 27-000-1620-0000-000
Bonus Expenses – 7320
Bonus Reserve – 27-000-1620-0000-000
Revaluation Reserve – 27-000-1670-0000-000
Revaluation Amortization – 27-000-1680-0000-000
CIP Cost – 27-000-1580-0000-000
CIP Clearing – 27-000-1590-0000-000
(Company – Department – Account – Sub Account – Product)
(Benchmark – Engineering Dept – Office Equipments – Air Conditioning/N.A- Samsung)
Under Asset Categories – Default Rules
Method – Straight Line
Life Years – 10 (Compulsory)
Months – 0 (Automatic Generated)
Salvage Value – 10%
Following Assets items linked to Asset Categories
KR Land & BuilKRg – Block 2
KR Plant & Machinery – Machine 1
KR Plant & Machinery – Machine 2
KR Vehicles – Ford
KR Vehicles – Benz
KR Vehicles – Lancer
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Setup>Asset System>Location (Linking Major Assets to Location)
Locations – [Country – State – City – BuilKRg]
This location talk is applicable for all assets
Depreciation Methods:
Setup>Depreciation>Methods (Defining Depreciation for Assets)
1. Flat Rate Method – On NBV/On Cost2. Calculated Method – On Cost Only – Not in NBV (Straight Line Method Only)3. Table Based Method – On NBV/On Cost 4. Production Method – On NBV/On Cost5. Formula Based Method – On NBV/On Cost
1. Flat Rate Method:
Method – KR Flat Method
Method Type – Flat
Calculation Basis – Cost
Dep: Use Recoverable Cost
Depreciation in Retired – Right
Exclude Salvage Value – As Required
Straight Line Method – Blank (Not Required)
Life Years – Blank (Not Required)
Rates: Basic – 10%
Adjusting – 10% (If any machine works above assigned hours, the excess hrs is adjusted)
Adjusted – 11%
2.Calculated Rate Method:
Method – KR CALC MET
Method Type – Calculated
Calculation Basis – Cost
Depreciation in Retired – Right
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Exclude Salvage Value – Blank (Not Required)
Straight Line Method – Right
Life years – 10 (As Required) Rates: Not Applicable
3. Table Based Method:
Method – KR Table bas
Method Type – Table
Calculation Basis – Cost
Depreciation in Retired – Right
Exclude Salvage Value – Blank (Not Required)
Straight Line Method – As Required
Life years – 3
Prorate Periods per Year – 12
Rates:
YEAR PERIOD ANNUAL RATE
1 1(M) 0.3
2 1(M) 0.2
3 1(M) 0.5
Year:
If we defined Life year 3 means, the depreciation year will be 4 years. (1st year is auto generated. Because, If we purchased any asset May 2005 means, depreciation will be calculated for 05-06, 06-07, 07-08 and these years closed on April 2008 only. Therefore May 2005, May 2006, May 2007, April 2008 = 4 years will be generated for 3 years life)
Period:
Period defined as monthly. It takes 3 years for 12 months
(1st year – 1st month, 2nd year – 1st month, 3rd year – 1st month, 4th year – 1st month)
For 1st Month, we should change the depreciation rate (0.1 or 0.4 or 0.3 or 0.2)
It’s purely based on company policy for every month depreciation on table based depreciation
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Annual Rate:
The annual rate should be equal to 1 (0.1+0.4+0.3+0.2 = 1)
4. Production Based Method:
Method – KR PROD MET
Method Type – Production
Calculation Basis – Cost
Depreciation in Retired – Right
Exclude Salvage Value – Blank (Not Required)
Straight Line Method – Blank (Not Required)
Life years – Blank (Not Required)
Prorate Periods per Year – Blank (Not Required)
5. Formula Based Method
Method – KR FORMULA
Method Type – FORMULA
Calculation Basis – Cost
Depreciation in Retired – Right
Exclude Salvage Value – As Required
Straight Line Method – Automatic generated
Life Years – As Required – 12
Prorate Periods per Year – 0
Define Formula:
DECODE (SIGN (<REMAINING LIFE 1>, 13), 1, 0.2, 0, 0.6,-1, 0.8)
It’s purely IF condition statement. It calculates depreciation based on remaining life years positive, negative or equal.
In this Test Formula, there are 3 operations such as,
1. Variables = Life/production capacity/remaining life1/&2/salvage value/short year.
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We can define the formulas for calculating depreciation based on the requirement of company 2. Functions = Decode, Greatest. Least, Power, Round, Sign, Sort
We can give the conditions with the help of above functions for defining the formulas.3. Formulas = Defined formula added in that column
Quick codes: setup>asset system>quick codes
AdKRg Companies
After Setting up of Depreciation Methods, we can add companies and assets in accounting flex fields
Switch over to Oracle GL Operations for adKRg companies &assets
Setup>Financials>Flex fields>Key>Values
In this criteria, we can add – Company/Account/Department/Sub-Account/Product
1. Find Key Flexi field segment:- For AdKRg the segment we can follow the steps
Application – General Ledger
Title – Accounting Flex Field (For creating of account items)
Structure – Operations Accounting Flex field
Segment – Company/Account/Department/Sub-Account/Product
Already we have created,
Major Categories of Assets,
Minor Categories of Assets,
Calendar Years,
Fiscal Years
Prorate Conventions
Asset Keys
Locations &
Everything Linked to Book Controls
However, we can add certain assets under the minor categories as per Company Requirement.
DISTRIBUTION SET
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For Addition of Assets, We can switch over to Oracle Assets Operations
Assets>Asset Workbench
In Assets, we are having New & Quick Additions. (Other options are based on requirement)
New:
a) Asset details:We can fill – up the asset details (TN05 – D1000 – Benz Car – 2 Units) and link the categories as instructed.
b) Source Lines: Supplier – Invoice Number, Name, PO Number (Continue & Then)c) Books: For this new benz car, we can add the Corp Book and enter the cost of assets
(Continue)However, YTD Depreciation = Previous Year Manual Depreciation ValuesSalvage Value = Scrap Value (Original Cost – Scrap value = Recoverable Cost)
d) Assignments: No. Of Units under 2 Units, User Name, Expenses Account, Location (Linkings)
With the help of above options, we have created new Benz Car – 2 Units with all requirements.
Quick Additions: ExcluKRg detailed requirements
We can fill – up the new asset details in quick additions (TN05 – D2000 – Ford Car – 1 Units) and link the categories as instructed.
Result: Transaction Saved & Reference Numbers are – 4481 & 4482
Add additions for all Assets
For Assigning Depreciation: After Creation of Various Assets
Minimize all the existing windows and go to Setup>Asset system>Asset Categories
In this you can define/ already defined depreciation methods for assets as per company requirement. (We can change salvage value % manually)
Then, Assets>Asset Workbench
Now, we can attach the book and enter the values of assets and select depreciation.
It permits to view financial information and other information of particular assets
For Calculating Depreciation:
Depreciation>Run Depreciation
Book: KR CORP Book
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Period: Monthly Closing Period
Close Period: Enable (Once the program closes the period, we cannot reopen the same period)
Now we can go to Asset workbench and view the financial information of all the assets incluKRg calculated depreciation values based on the allocated depreciation methods
(We cannot perform a Reserve Adjustment on fully retired assets)
Switch responsibility to Payables
Mass Addition:
Enter an invoice in AP Submit a program payables transfer to GL In GL, query the batch and post it. (Posting – Optional) In AP, Initiate a program “Mass Addition Create” In FA, “Prepare Mass Addition” – Run In FA run the “Post Mass Addition”
In Detail,
1. Enter an invoice in AP
Switch over to AP and create an invoice.
Invoices>Entry>Invoice (AP)
Enter an Invoice as Instructed and go to distribution column in order to cost of the asset and other freight expenses. (50000+5000=55000 Net value of Asset);
Track the freight with asset by (View – Show Field – Track Asset) asset – 1570 & Freight – 7220
Actions: Approval: Force Approval (Enable) &Create Accounting (Enable)
Status: Validated after the approval process
2. Submit a program payable transfer to GL:
Run: Other>Request>Run
Single Request – Name: Payables transfers to GL
Attach the book and Make the parameter dates for submit the program
Go to view and request – Refresh It – Status – Completed – Copy the Batch Name from output
3. In GL, Query the batch and post it (Posting – Optional) (GL)
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Paste the copied batch and find it.
Status: UnPosted in GL
Click the Post Button and then it will be posted in GL
Status: Posted in GL
4. In AP, Initiate a program “Mass Addition Create” (AP)
Other>Requests>Run
Single Request – ‘Mass Additions Create Report’
Parameter – KR CORP Book
Submit and view – Request and Find the status: Completed & Normal
5. In FA, “Prepare Mass Addition” – Run (FA)
Mass Additions>Prepare Mass Additions
Attach your Book – KR CORP Book
Find the Mass Additions Summary – For: Split/Add to Asset/Merge
In that, we should open and view the status – On Hold
Then, we can manually change it as Post
6. In FA, “Post Mass Addition” – Run (FA)
In Mass Additions Column – Attach the Parameter (Attach the KR CORP Book) – Submit and View Request – It has been Posted
Now, we can go to Asset Work Bench and can view attached assets are posted.
(The same steps of 5 & 6 will be followed for Split/Add to Asset/Merge)
Creation of CIP Assets:
Switch over to GL
Setup>Financials>Flex Field>Key>Values
1. Find key flex field segment: - Category (Create a Major)
Application – Oracle Assets
Title – Category Flex field
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Structure – Vision Category Flex field
Segment – Major Category
Find:
New – KR CIP Assets
2. Find Key Flexi Field segment: - Category (Create a Minor Category)
Application – Oracle Assets
Title – Category Flex field
Structure – Vision Category Flex field
Segment – Major Category
Independent Value: KR CIP Assets (Created Major Category)
Under the Major Category, we can create a new minor category
New – KR CIP Project 1
The new CIP Assets are created in Oracle Database and should give link to Asset Categories
Switch over to Assets, V.O (USA)
Setup>Asset System>Asset Categories
Asset Categories – KR CIP ASSETS
Category Type – Non Lease
Ownership – Owned
GL Accounts: Book – KR CORP BOOK
Asset Cost – 27-110-7410-0000-000
Asset Clearing – 27-110-1510-0000-000
Depreciation Expense Segment – 7320
Bonus Reserve – 27-000-7410-0000-000
Revaluation Reserve – 27-000-7410-0000-000
Revaluation Amortization – 27-000-7410-0000-000
CIP Cost – 27-000-1580-0000-000
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CIP Clearing – 27-000-1590-0000-000
The Created categories are linked to asset categories. Now, we can add the CIP assets in Asset Workbench.
For view the created CIP assets in Asset Workbench, attach book and Find
Financial Enquiry = 0
Then go to Source Lines and enter the values = Rs.20000
Now, Financial enquiry = Rs.20000
Then in Books, attach book and press Tab. If we don’t want depreciation for CIP Assets, disable the depreciation box.
Capitalize the CIP Assets
Assets>Capitalize>CIP Asset
Attach Book and Find
Enable the particular asset as Capitalize and save it
Now, the CIP asset converted as Capitalized.
We can reverse that particular asset with the help of reversal of capitalize asset.
LEASE:
Financial Lease – “Depreciation” applicable Operational Lease – No Depreciation
Conditions:
Transfer of ownership at the end of lease terms Bargain purchase option – Purchase Price (Fair Market Value) Economic Life (Lease Period => 75 % of Economic Life)
o (If it’s > than 75 % of Asset Life, it can be capitalized else it will be treated operating asset)
Net Present Value (NPV) of Lease Rentals => 90 % of Fair Market Value
The above conditions should satisfy in leasing functions.
Steps in Leasing Function: (Oracle)
Creating Lease Categories Entering Lease Details Entering Lease Payment Details AdKRg on Assets
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1. For Creating Lease Assets (Switch to GL)
Setup>Financials>Flex Field>Key>Values
1. Find Key flex field segment: - Category (Create a Major)
Application – Oracle Assets Title – Category Flex field Structure – Vision Category Flex field Segment – Major Category
Find:
New – KR LEASE Assets
2. Find Key Flexi Field segment: - Category (Create a Minor Category)
Application – Oracle Assets Title – Category Flex field Structure – Vision Category Flex field Segment – Major Category Independent Value: KR LEASE Assets (Created Major Category) Under the Major Category, we can create a new minor category New – KR LEASE – A1 The new Lease assets are created in Oracle Database and should give link to Asset
Categories Switch over to Assets, V.O (USA)
Setup>Asset System>Asset Categories
Asset Categories – KR LEASE
Category Type – Lease
Ownership – Lease
GL Accounts: Book – KR CORP BOOK
Asset Cost – 01-730-7320-0000-000
Asset Clearing – 01-730-9950-0000-000
Dep.Expense Segment – 7320
Accumulated Depreciation - 01-730-7320-0000-000
Bonus Expenses - 7320
Bonus Reserve – 01-730-7320-0000-000
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Revaluation Reserve – 01-730-7410-0000-000
Revaluation Amortization – 01-730-7420-0000-000
CIP Cost – 01-730-7440-0000-000
CIP Clearing – 01-730-9950-0000-000
Now we had given link Lease Accountings (GL) to Asset Categories and setting default depreciations.
2. Entering Lease Details: (FA)
Setup>Asset system>Leases>Lease Details
Lease Number: KR Lease – 2
Others – Optional
Payment Schedule – To be defined
Lease Type: Operating (Automatic)
Payment Schedule:
Payment Schedule – KR Lease 2 (Any Name)
Lease Date – 01-May-2005
Interest Rate: 5 %
CompounKRg Frequency – Monthly/Quarterly/Semi-Annually/Annually
Present Value – System will calculate based on Lease Payments
For Example, we have leased one asset and ready to pay Rs.5000/- P.M. for the period of 10 Months.
Now, we have to define the above items in lease payment schedule
Start Date –Lease Amount per Month – No. of Installments – Lease Payment Period – End Date
01-May-2005 5000 10 Annually 01-Aug-07
CompounKRg Frequency
Monthly – It means, the payment date automatically shows when that data arrive
It’s applicable for all quarterly, semi – annually, annually
Payment Types
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Annuity Payment – Annual Payment
Balloon payment – Fluctuated on Monthly Basis
Bargain – Based on Communication
Others
Based on the inputs, it calculates the lease payments along with interest paid for that asset and it shows the net present value. (Rs.5000/- for 10 months = Rs.50000/- means, then net present value is automatically generated Rs.47,311.72 with the help of interest rate.
Capitalization/Operating
Lease Term – 10
Asset Life – 12
Therefore, if resulted the lease payments schedules based on our inputs and It will be capitalized otherwise, the test result will be operating.
Else, based on market evaluation we found that asset value is Rs.52000/-
Calculated (NPV) = Rs.47, 311.72(For 10 Installments of Rs.5000/-)
Result to Capitalization
If enter Rs.52000/- in Fair Value, the Cost to Capitalize is Rs.47, 311.72 (NPV is less than Fair)
If enter Rs.45000/- in Fair Value, the Cost of Capitalize is Rs.45, 000.00 (Fair value is less than NPV)
If the fair market value exceeds present value, the lease term should be 75 % greater Else, the present value should be 90 % of fair market value.
AdKRg Lease Assets:
Lease Assets can be added through detailed addition only whereas not from quick addition.
Assets>Asset Workbench (FA)
In this asset workbench, we can add the lease assets with new option only.
Give the new assets name and assign categories (Lease Categories – Attachment) and attach the lease number, which you have entered in lease details and lease payment schedule.
It helps to capitalize the lease asset (Already used as lease asset and our management would like capitalize such asset due to less fair market value) and assign all the sources with respective account book and concerned location and attach your Corporate Book.
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Now, we study about ‘BUDGET BOOK’
BUDGET BOOK
The budget book will be used only for internal MIS purpose.
There are certain steps to create and function the budget book. They are,
1. Create a budget book – Associate to corporate book 2. Enter the budget amount 3. Create Budget assets4. Projecting depreciation
1. Create a budget book
Book Controls –KR BUDGET BOOK – Associate to KR Corp Book
Calendar:
GL Set of Books – Vision Operation
Depreciation/Fiscal/Prorate – Automatic generation by definition of KR
Current Period – We defined from Apr -05. However, it takes May – 05
Natural Accounts: As defined in KR CORP Book
2. Enter the budget amount
Budget>Enter (FA)
Attach Budget Book – KR BUDGET BOOK
Attach the category – KR PLANT & MACHI –MACHINE 1
Mention the expense account – 10-110-7320-0000-000
Then define the budget amount for that particular asset for all the fiscal year periods.
(1000-1500-2000-2500……6500)
Save it and Upload the created budget.
Budget>Upload (FA)
Attach book and enable delete existing budget book
Then, run the assigned budget book for the particular asset.
After uploaKRg Capital Budget, we need to do the following process to get budget
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1. Run depreciation for regular asset depreciation for that current month – Corp Book>Depreciation>Run (FA) – To run the budget depreciation, we should run the actual asset depreciation first.
2. Run depreciation for Budget Book for that current month – Budget Book>Other>Requests>Run (FA) – Single Request – Budget to Actual Report and Parameter: Budget Book & Corporate Period – SubmitView – Request and View Output.Now, we can get budget depreciation as required.
Depreciation Projection:
1. Run the actual depreciation for the assets – Depreciation>Run Depreciation (FA)2. For depreciation projection – Depreciation>Projections (FA)
Projection Calendar – KR Asset CalNo. of Periods – 5 [If KR Asset Calendar is 12 months that is annually, the number of period is next 5 annual years. It’s like annually/quarterly/monthly
3. Starting Period – As Required4. Books – Attach your book – Maximum 4 books and all of the books must use same account
structure5. The report can generate depreciation Projections based on Cost Center & Asset Center
What If Analysis:
We can analyze the particular asset based on the following options in order to take management decision. We are regularly using the one method with rates for that asset.
However this what if analysis helps to take some management decisions
- Different Depreciation methods- Different Rates of depreciation - Different conventions & requirement
Rollback Depreciation:
It helps to roll back the calculated depreciation, if the end user forgot to insert any assets of adjustments.
The following process and limitation involves in this roll back depreciation.
1. We will run the depreciation for current month period with closure of current period2. It calculates depreciation and assigned to all the assets3. With the help of interface in GL, it passes the journal entries in GL from FA and it passes
journal entry implications reduce the asset value based on depreciation values.
This is normal process. However, the end user can make any mistakes or forget to make any adjustments. Hence, the end user should follow the following steps to run the depreciation.
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1. We will run the depreciation for current month period but should not close current period2. It calculates depreciation and assigned to all the assets3. With the help of interface in GL, it passes the journal entries in GL from FA and it passes
journal entry implications reduce the asset value based on depreciation values.
In this situation, end user found that he forgot to add some assets or wants to make adjustments. He would like to rollback the calculated depreciation.
Since the current period is not closed (Period is opened) when he ran depreciation, he can rollback the calculated depreciations.
Roll back will be possible when the period is opened only. (Period should not close at the time of running the depreciation)
Now the end user operates the Rollback Depreciation Depreciation>Rollback Depreciation with Corporate Book and Current Month Period (Status: Open).
Submit & View – Request & View Output.
It revert all the calculated depreciations for all the assets.
Meanwhile, the end user should pass the reversal entry in GL.
But with the help of interface only, it should pass the reversal entry in GL. (In practical, this option is not possible). Therefore, end user goes to GL and passes the reversal entry.
Then again end user can make adjustments and run the depreciation.
This is what the process and limitation of Rollback depreciations.
Warranties:
It helps to fix the warranty details for particular asset.
Setup>Asset system>Warranties (FA)
- Assign Asset Warranty Number- Define the warranty period starting and end date- Define the value of asset and required details
Finally, it assigns the warranty details for the required asset
Maintenance:
It helps to assign and manage the maintenance cost of particular asset.
Assets>Maintenance>View Details (FA)
Click – F11
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Paste the maintenance Asset Number
Click – Control F11
The assigned schedule event will calculate the maintenance services cost and details for that particular asset for given period.
TAX BOOK:
[To track different depreciation rates or methods as per company law and rules of country]
Principles of Tax Book:
1. No Direct Additions of Assets2. Assets are added by running
- Initial Mass Copy- Periodic Mass Copy
Initial Mass Copy: (For Transfer of asset information to Tax Book)
It will run at one time The first year/previous year depreciation should be calculated. It means the end of fiscal
year should be closed. Then only initial mass copy can be run. Initial mass copy will run at once in life of company In case the end user forgot to add one asset in last fiscal year, he cannot take the
purchase date of that asset. Instead of that, he can take placed in service date only.
Periodic Mass Copy:
- It will run as and when required
In Tax Book function of FA,
- The asset information only will be copy from corporate book and calculate depreciation based on defined tax rates and rules.
- While copying the assets from corporate book to tax book, the calculated depreciation of corporate book will not copied to tax book.
- Tax Book can be a multiple book. But, corporate book will be only one.
Process:
Assets-> Corporate Book -> Tax Book
Setup>Asset system>Book Controls (FA)
Create: KR TAX BOOK (Class: Tax)
Associated Corp Book: KR Corp Book
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Assign the Calendar, Accounting Rules, Natural Accounts & Journal Categories
Tax Rules:
Allow Reserve Adjustments – Accumulated depreciation can be overwritten
Allow Cost Ceiling – For calculating tax depreciation, we can fix ceilings (If Ceiling Rs.1 lakh. The tax depreciation will calculate for that Rs.1 Lakh only whereas the asset value is of Rs.5 Lakh)
Allow Expense Ceilings – Fix the ceilings for calculating tax depreciation for expensed assets
2. Link Tax Book to Required Asset Categories
Category: As Required
Book: KR Tax Book & Define the account functions and set the default depreciation rules.
Now, we have created Tax Book and given link to particular asset categories.
We can process the function of Initial mass Copy & Periodic mass Copy
Tax>Initial Mass Copy (FA)
Name: Initial Mass Copy
Parameters: Attach KR Tax Book
Submit – View Request – Status: CompletedThen, the corporate book assets all are copied in tax book
We can view the assets +Asset Workbench: Find and select your assets.
It shows the assets namely, Corporate Book Asset Value & Tax Book Asset Value
Tax>Periodic Mass Copy (FA)
Name: Periodic Mass Copy
Parameters: Attach KR Tax Book
Corporate Period: Define
Submit –View Request – Status: Completed & View Report
Then, the corporate book assets all are copied in tax book based on period wise (Current year assets will be copied)
We can view the assets +Asset Workbench: Find and select your assets.
It shows the assets namely – Corporate Book Asset Value & Tax Book Asset value
Addition by Source Report:
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Other>Request >Run (FA)
Name: Addition by Source Report
Parameter: Attach book and periods
Submit – View Request – Status: Completed & View Report
Ceilings:
Setup>Depreciation>Ceilings (FA)
Create a new ceiling name and assign the periods (Start & End) with ceiling amounts
It helps to calculate tax depreciation based on the ceilings
Mass Transactions:
1. Mass Transfer
Individual Transfer:
Select an asset in workbench and go to Assignment.
Enter -1 in existing Unit Change Column and Enter 1 in next row for the same asset with another account and some other locations.
Make it done and view the same asset once again.
It has been transferred from one account to another account.
Mass Transfer: Mass Transactions>Transfer (FA)
Entire assets can be transferred from one place to another place/ from one location to another location. Enter all the required items and make it preview – It will generate Mass Transaction Number
Reopen the mass transfer window – Click F11
Paste the performed Mass Transaction Number – Click – Ctrl F11 – Run it
View – Request – Find – Submit – Status: Completed
2. Reclassification>Mass Transaction>Reclassification (FA)
Reclassify an asset from one category to another category
Reclassify an asset from one category to another category
Book: Attach your corporate book
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Details: Assign all the details of particular asset, which we could like to change from existing category to another category.
(Fully Reserved Assets = Full value of an asset incluKRg accumulated depreciation)
New Category: Assign the new category as would like to reclassify another category asset
- Descriptive Flex Field: The descriptive FF of an asset also will apply to another category while reclassification
- Inherit Depreciation Rules of New Category: Takeover of new category depreciation rules.Otherwise, after reclassification, those assets will take over the old category depreciation rules.
- Amortize Adjustments While inherit depreciation rules of new category, the amortize adjustment also should be enable. Else, the adjustments will be expensed.
Enter all the required items and make it preview – It will generate Mass Transaction Number
Reopen the mass transfer window – Click F11
Paste the performed Mass Transaction Number – Click –Ctrl F11 – Run it
View – Request – Find – Submit – Status: Completed
The performed reclassification function give results like, the reclassified asset changed from old category to new category.
3. Mass Changes>Mass Transactions>Changes (FA)
Changing Depreciation and Convention methods for particular asset.
Book: Attach your corporate Book
Details: Assign asset details –Numbers, Placed in services & Category
Enter all the required items and make it preview – It will generate Mass Transaction Number
Reopen the mass transfer window – Click F11
Paste the performed Mass Transaction Number – Click –Ctrl F11 – Run it
View – Request – Find – Submit – Status: Completed
The performed changes function give results like, the changed asset has new depreciation methods and conventions.
4. Revaluations>Mass Transactions>Revaluations (FA)
Revaluation of an individual or group of assets (Revalue of existing value of asset)
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Revalue Fully Reserved Assets – Revaluation of depreciated assets incl. Accumulated dep.
Life Extension Ceiling – Fix ceiling for life extension asset
Book: Attach your corporate book
Details: Assign asset category details
Rate: Inflation/ Deflation Rates as decided upon the existing value of said asset (%)
Make it preview – It will generate Mass Transaction Number
Reopen the mass transfer window – Click F11
Paste the performed Mass Transaction Number – Click – Ctrl F11 – Run it
View – Request – Find – Submit – Status: Completed
The performed changes function give results like, the revalued asset having new values as revaluated.
5. Retirement>Mass Transactions>Retirements>Create and Reinstate (FA)
Making retirement of particular asset (Making the value of asset is 00 or expensed)
Book: Attach your corporate book
Retirement Type: Destroy/Scrap/Theft/Sale/Retirement/Causality
Proceeds of Sale: If we would like to sale, the sale amount should be entered
Cost of Removal: If we would like to sale without some additional parts, we should remove that value of additional parts.
Then define, Account, location and category of particular asset
Click Create and it will generate Mass Transaction Number.
Paste the performed mass transaction number, Click F11
Then, Click Retire
View – Request – Find – Submit – Status: Completed
We can view the transaction history +Inquiry + Transaction History
Attach Book and find the retired asset. It will give transaction history of retired asset.
To view Journal Voucher of any transaction, Tools – View Accounting
Insurance:
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Assets>Insurance>Insurance Policy Details (FA)
Find Asset in our corporate book and type policy number and Insurance company details
It contains the base value of asset.
Maintenance – Calculation Method (Value as new/ Market value/ Manual value)
Lines – Insurance Category (Having various insurance options taken for an asset. Various classes against selected Insurance category
Insurance Index: Setup>Asset system>Price Index (FA)– Attach Index after created.
Give a new name Index (General/Full Cost/Market value)
Value % - 100 % for particular period to period, 101 % for particular period
Enter current value of asset and save it
Assets>Insurance>Insurance Calculation Routine (FA)
Parameters:
Attach book and asset.
Submit and View Request – Status – Completed
This is for assigning insurance details for particular asset at any time.
Journal Categories:
Standard – Attach Book & Submit Request after run the functions.
Deferred – As Decided
Rollback – Rollback the journal entries which is posted in GL
Use: Inquiry – Transaction History
Attach Book and Asset number – Find
Tools – View Accounting
Accounting Methods
Cash – you account only for payments and do not record liability information for invoices. The payment accounting entries typically debit your expense or asset Account.
Prorate convention lab:
Setup>Asset system> Prorate convention
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KR PPC – prior period convention
KR Fiscal year
From date To date Prorate date
01-JAN-05 31-JAN-05 01-DEC-04
Click and continue down.
ORACLE – ACCOUNTS PAYABLE
Accounts Payable: Effective Management of Creditors
Correct recorKRg for payments Scheduling the invoices for payment
Business Flows:
Place a requisition with purchase
Requisition for Quotation from the supplier
Receive quotations and select the best one Purchase Order
Place a purchase order to that supplier
Receive the goods along with the Invoice
Record the Invoice, Validate & Approve
Yes – Avail Discount
Make Payments Payables
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No – Pay with Interest
System Flows:
Record the invoice from the supplier (Check Supplier) Process the invoice Accounting the transactions represented in the invoice Schedule the invoices (Due dates/Number of Installments) Make payment to supplier Reconcile with bank Posting (Transfer all invoices and payments to GL) Reports (For management)
Information Flow:
Choose SOB
Financial Options
Payable Options
Supplier
Supplier site
Invoice Work Bench
Distribution Line level Schedule Payment level
(Allocate to Cost Center) (Payment terms due date)
Financial Options:
Setup>options>Financials
Future Periods: As per our requirement – 12 (Months)/ 4 (Quarters)
Tab1: Accounting: KR – 000 – 2210 – 0000 – 000
KR – 000 – 1340 – 0000 – 000 (Advance)
KR – 000 – 2580 – 0000 – 000 (PDC Payment)
KR – 740 – 7825– 0000 – 000 (Discounts)
KR – 740 – 7842 – 0000 – 000 (Variance) Gain
KR – 740 – 7844 – 0000 – 000 (Variance) Loss
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KR – 110 – 7699 – 0000 – 000 (Miscellaneous)
Tab2:
Supplier Entry: RFQ – Requisition for Quotation
Hold Unmatched Invoice – If invoice is not match with PO, the invoice will be hold
Invoice Match Option: Purchase Order/Receipt
Entry: Automatic – The sequence number will be automatic
Type: Numeric – For supplier/Alphabetic – For Supplier
Tab3: Supplier – Payable: Term – Immediate/30 Days as per contract
Method – Cheque: Manual Payment
Clearing: Within organization
Electronic: Bank to Supplier
Wire – Tele Transfer
Receipt Acceptance Days – Grace Days for making payment
- Always Discount (Pay with discount)- Pay Alone (If enable this, that payment will run)
Tab4: Supplier Purchasing: Ship to location – To Factory (Goods To) – Based on Receiver Request
Bill to Location – To Office (Bills To)
Invoice Organization – Based on Receiver Request
Via – Agent (Air/Ship)
FOB – Transfer (Territory)
Freight – Due/Cash on Delivery/ Etc.
Tab5: Encumbrance: Use Requisition Encumbrance – Reserve funds at the time of raise request
USE PO Encumbrance – Reserve funds at the time of raise purchase order
Tab6: Tax: Default Tax Code (Financial Tax Option) – Based on Nation
Enable Recoverable Tax – Define recovery rate while raising an invoice
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Sales tax is include – When receive payment from client 100 % will be recovered
(If its disable, the sales tax will not be recover from client)
Up – 75.56 = 76
Rounding Rule: Down – 75.56 = 75
Nearest – 75.56 = 76
Precise: 2 (No. of decimals)
Min Account: 0.5 (Rounding Rule)
Tab7: HR: If any of our staff meet any expenses or raise any invoice, company has to Pay/Reimburse. Therefore, we have to define HR
Expense Reimbursement – Payment to Office/Payment to Home
Method – As Instructed
Payable Options:
Setup>Options>Payable Options
Primary Account Method:
Accrual: Provisional Entry
Cash: Direct cash payment to particular account
Secondary Account Method:
Cash: Cash Account (Payment Invoice)
None: Just Accrual only and not for payment
Automatic Offset Method:
Adjusting expenses to sub departments or distributing to sub departments
(Making Cr. Entry to ‘0’ and distributing)
- None- Balancing- Account
None: No Distribution
Balancing: If it enabled, the particular payable amount is distribute department accounts ORACLE FINANCIALS Oracle Financials Volume II
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01-000-2210 =$10000 (Invoice Header)
01-110-7420 =$5000 (Dr.)
01-120-7420 =$5000 (Dr.)
01-110-2210 =$5000 (Cr.)
01-120-2210 =$5000 (Cr.)
Account: Just generate distributing entries only
01-110-2210 =$5000 (Cr.)
01-120-2210 =$5000 (Cr.)
(Prevent Pre-payment: Do not want to make advance payment)
Transfer to General Ledger: (Interface)
Transactions
In Detail – It will transfer those payable transactions to GL with full details
Account Date – Transferring data based on accounting date
Account Period – Transferring data based on accounting period
Transfer Report Book – All other reports also transfer to GL (Like Currency, etc.)
Submits Journal Import – Ledger posting in GL
Allow override – It can allow override permission in GL parameters while GL posting
Currency:
Multiple – Various Currency
Exchange Rate Entry – It can generate exchange fluctuation entry
Calculation user exchange rate – If it’s enabling, we have to define exchange rate type
Type – User/Corporate/Spot/User Define/EMU – European Monetary User
Our Invoice value: AUD 100000
Received = USD 50000
0.5 USD = 1 AUD
Therefore, AUD 100000 x 0.5 = USD 50000
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We can change the currency user type as required
In GL Account
Realization gain = 01-110-7842
Realization loss = 01-740-7844
Realization Round = 01-740-7820
Tab5: Supplier:
Invoice Tolerances:
Pay Group – Just create a pay group for making payment of more invoices against your particular supplier
Invoice currency
Term Date Basis – Based on Requirement (System Date/Goods Receive Date/Invoice Received Date)
Pay Date – Due/Discount
Tax Report – If we want submit report to our government, enable it
Tab6: Invoice:
User Invoice Approval Workflow – That invoice go to particular editor/ Worker for checking purpose and approval purpose. Because, he only completed that work and invoice raised against his work only.
Allow Force Approval – Need not send invoice to workflow people. (Invoice Raiser or Director can approve the invoice)
Require Validation – It will check the calculations, tax codes, etc. Then only, it will allow making payment
Adjustment to Paid – After making payment
Re-calculation – Can recalculate the entire thing
Auto Create Freight – Define freight account. It will distribute the freight amount to one department (Cost Center)
Confirm Date – If date is not in invoice, system will take present date as invoice.
Allows Online Validation – It will validate the invoice online
Allow document calculation override – That invoice can be override
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GL Date Basis Payment
For Invoice Advance Payment – As required
System Date Build pre-pay – Account should be defined in financial option
Good Received Date
Invoice Date
1. Pay Group:
Setups>Lookups>Purchasing
Type: PA% GR% (Query & F11) pay group Access Level: User
Code: KR PAY GROUP (Create)
From: 01-APR-2006 (Create)
Access Level:
User – User can create
Extensible – User can modify the existing pay group
System – User cannot modify the existing pay group
2. Vendor Type: (Supplier Type)
Setup>Lookups>Purchasing
Type: VEN%TY% (Query & Control F11) Access Level: User
Code: KR SUPPLIER TYPE (Create)
3. Distribution Sets:
Setup>Invoice>Distribution Sets
- Full Distribution: On % Basis (We can change this distribution as require)
Name: KR FULL DISTRIBUTION Type: Full
Num % Account
1 40 33-110-7450-0000-000 (KR Company Telephone Expenses) for cash division
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2 60 33-120-7450-0000-000 (KR Company Telephone Expenses) for Accounts division
- Skeleton Distribution: Full amount can be distribute for one department/At invoice workbench, we can distribute the amount manually
Name: KR SKELETON DISTRIBUTION Type: Skeleton
Num % Account
1 0 33-110-7450-0000-000 (KR Company Telephone Expenses)
2 0 33-120-7450-0000-000 (KR Company Telephone Expenses)
3. Payment Terms:
Setup>Invoice>Payment>Terms
KR IMMEDIATE PAY: % Due – 100 %; Days – 0 (Save it)
KR CREDIT DAYS PAY: % Due – 100 %; Days – 30
First Document – 5% & 10 days (If we paid within 10 days, 5% is discount)
Second Discount – 10 % & 20 days (If we paid within 20 days, 10% discount)
Save.
KR FIXED DATE PAY: %Due – 100%, Fixed Date – 30 –MAY-2006
KR % BASIS PAY: %Due – 70%, Days – 10 (Release 70% after 10 days)
%Due – 30 %, Days – 20 (Release 30 % after 20 days)
KR PROXIMA PAY: % Due – 100%; Day of month – 25; Months Ahead – 0
(Invoice – 10.04.06; If month ahead is 0 -25th April is due date)
(Invoice – 10.04.06; If month ahead is 1 -25th May is due date)
KR AMOUNT BASIS PAY: Amount – 5000; Days – 0 (Release First 5000 immediate)
Amount – 10000; Days – 5 (Release next 10000 after 5D/5th day)
Amount – 0; Days – 10 (Release Balance after 10 Days 10th Day)
(Add): KR Installment – see notes.
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KR SPECIAL CAL PAY: (Before creating this payment term, define special calendar)
Setup>Calendar>Special Calendar
Type of Calendar: Payment Terms
Name: KR SPECIAL CAL
Periods per Year: 4 (4 Quarter in a year)
P1 2006 1 01-APR-06 30-JUN-06 15-JUL-06
P2 2006 2 01-JUL-06 30-SEP-0 15-OCT-06
P3 2006 3 01-Oct-06 31-DEC-06 15-JAN-07
P4 2006 4 01-JAN-07 31-MAR-07 15-APR-07
Now,
Name: KR SPECIAL CAL PAY;
% Due – 100; Calendar: KR SPECIAL CAL
Save it
4. Supplier: (Creditors/Vendors)
Supplier>Entry
Supplier Name: KR Supplier
Taxpayer ID & Tax Registration Number: When required
Inactive on: Fix the closing period for particular supplier
Alternate Name: Applicable only for Japanese Customer
14tabs:
I. General
Parent Supplier No: If Applicable (If subsidiary/franchise of any present)
Customer Number: For our tracking purpose -> No. allotted by supplier as his supplier
II. Classification
Type: KR Supplier (Attach) (created in lookups – purchasing)
One Time: For one time purpose
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SIC: Standard Industry Code
III. Accounting:
In single account, we can have multiple set-of-books
IV. Control:
Invoice Amount Limit: If required for particular supplier
Invoice Match Option: Purchase order/Receipt
HolKRg invoice based on above match: Hold all /Hold unmatched/Hold un-validated invoice
Payment Hold Reason: If hold the invoice, holKRg reason should be defined
V. Payment:
Terms: KR Immediate Pay (Attach as required)
Pay Group: KR Pay Group (Attach)
Invoice & Payment Currency: USD
Payment Priority: 99 (Ninety nine means this supplier is not an urgent to make payment)
Term Date Basis: Invoice/Goods Received/Invoice Received/System (As required)
Pay Date Basis: Due/Discount (Due in normal)
Payment Method: Check/Clearing/Electronic/Wore (As required)
Always Take Discount: If it is enabled, all the invoices are eligible for avail discount
Exclude Freight from Discount: Availing discount on value of goods only exclude freight
Allow Interest Invoice: It will calculate interest on % basis of delayed payment/defined
Pay Alone: If it is enabled, that invoice can be paid alone and it will not include payment batches
VI. Bank Accounts:
Supplier bank account and branch details for making electronic payments
VII.EDI:
Electronic Data Processing
It’s applicable when we use any particular gateway of payment
VIII. Invoice Tax:
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Entering Supplier invoice standard tax code
Automatic Calculation: For particular customer
Calculation level: Header/Tax code/Line (Enable – Allow calculation override)
Rounding Rule: Nearest/Up/Down (Enable – Distribution amounts includes tax)
IX. WithholKRg Tax: (TDS)
If it’s enabled, the TDS is applicable for all the invoices of particular customer
WithholKRg Tax Group: Attach your tax group
X. Tax Reporting:
For tax reporting purpose
XI. Purchasing:
Supplier goods location and billing locations details
Purchase order hold and holKRg reason and shipping details
XII. Receiving:
Goods receiving location, approval and receipt details
XIII. Supplier Sites: (Bottom of supplier window)
For senKRg PO to one site
For senKRg Invoices to another site
For senKRg payment to another site for one supplier
IX. Supplier Site: KR Site I (Create)
Primary Pay: Enable (Whenever transact this supplier, this site will be primary and it will automatically select all terms and pay group)
After all the above steps, we can enter an invoice.
Invoice:
Invoices>Entry>Invoices
Standard KR Supplier 01-APR-06 KR INV01 10,000
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(Attach)
Here, we can change following items:
If we assign defined items in Supplier window, it will display automatically while raising invoice
Payment Terms: As required
Distribution Sets: Full Distribution /Skeleton Distribution – Manually enter the values in Sets
After enter the invoice details, the following actions to be taken for booking
Actions – Validate – Approval – Create Accounting
Invoice Book Entry:
Charge 4000 (33-110-7450-0000-000)
Charge 6000 (33-120-7450-0000-000)
Liability 10000 (33-000-2210-0000-000)
If distribution is not allocated, the invoice will be hold
For making the new invoice with the existing record: Edit – Duplicate – Record above
In that we can change the data as required
Split Schedule in Invoice:
Scheduled Payments in Invoice Window:
The invoice gross amount can be changed and click split schedule
The remaining amount goes to next line and we can change the date for the same invoice.
Freight Amount: (IncluKRg Invoice)
Enter an invoice Rs.10000
Remove: Distribution Set (Compulsory)
Folder – Show Field: Create Freight Distribution against show field: Freight Amount
After entering the invoice data.
Click Distribution:
Define freight distribution account and click allocate to prorate the freight amount to departments
The balance invoice amount can be distributed to departments as required
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Validate – Approve - Create Accounting
Item 8000 (33-110-7450-0000-000)
Freight 2000 (33-110-7220-0000-000)
Item 10000 (33-000-2210-0000-000)
Automatic Create Freight Distribution:
In Payable window – Invoice – Enable (Freight incluKRg invoice –
(33-110-7220-0000-000)
(Now, we can book an invoice in invoice workbench and Folder – show field – Create and enter the freight amount. It will automatically generate freight distributions to departments)
Debit Memo & Credit Memo:
Debit Memo – Purchaser/Receiver sent to Seller/Supplier (To Reduce the supplier balance)
Credit Memo – Seller/Supplier send to Purchaser/Receiver (--------------------------do-------------------------)
(Return goods, Damage, Excess Goods)
4 Ways to Create:
1. Manually2. Distribution Set3. Matching it with an invoice4. Matching it to a specific distribution line
Invoices>Entry>Invoices
The invoice booked for the value of Rs.10000 – KR INV11
Now, Return the goods to supplier for the value of Rs.1500 (Purchase Returns)
Therefore, raise a debit memo to supplier
1. Manually – Remove Distribution
Debit Memo KR Supplier 01-APR-06 KR DM07 (-1500)
(Attach)
No Distribution – Validate – Create Accounting
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Entry:
Charge – 1500 (33-000-7450-0000-000 Cr.)
Liability – 1500 (33-000-2210-0000-000 Dr.)
2. Distribution Set
Debit Memo KR Supplier 01-APR-06 KR DM08 (-1500)
(Attach)
KR Full Distribution – Validate – Create Accounting
Entry:
Charge – 1500 (33-110-7450-0000-000 Cr.)
Charge – 500 (33-110-7450-0000-000 Cr.)
Liability – 1500 (33-000-2210-0000-000 Dr.)
We can see the balance amount for that particular supplier of entered a debit memo.
Here we have not matched with an invoice and just see the supplier balance after debit memo
3. Matching with an invoice
Invoice No: KRINV 12
Amount: Rs.10000
Distribution: KR FULL DISTRIBUTION
Validate
Debit Memo No: KR DM 08
Amount: (-1500)
Distribution: KR FULL DISTRIBUTION
Validate
After enter the above debit memo, Click Match with Invoice
After Invoice: KR INV 12
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Match: Enable and enter the amount (-1500)
Match it
Revalidate – Approve – Create Accounting
Charge 6000 (33-110-7450-0000-000 Dr.)
Charge 4000 (33-120-7450-0000-000 Dr.)
Debit Memo 1500 (33-000-7450-0000-000 Cr.)
Liability 8500 (33-000-2210-0000-000 Cr.)
Invoice Detail: View – Find: Attach KR Supplier & KR INV 12
Click: Calculate Balance Sheet – Calculate – Invoices
Result: Invoice Amount – 10000
Debit memo – 1500
Un-paid amount – 8500
4. Matching it to a Specific Distribution Line
After match the debit memo with particular invoice, we can distribute the debit memo amount in that match window itself – Click: Distribute (Set the allocations)
Then Click Match – Validate in invoice window – Create Accounting
Entry:
Charge 6000 (33-110-7450-0000-000 Dr.)
Charge 4000 (33-120-7450-0000-000 Dr.)
Debit Memo 1500 (33-110-7450-0000-000 Cr.)
Debit Memo 500 (33-120-7450-0000-000 Cr.)
Liability 8500 (33-000-2210-0000-000 Cr.)
This is what debit memo and credit memo functions. If any of this allocation is not correct, that invoice will be hold.
Hold and Release:
No Yes
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Create Invoice
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Validate No Hold
System Hold Manual HoldStatus ‘Validated’
NoRectify Error Manually Release
Errors Rectified Re – Submit for validation
Invoice Hold Release
1 1 Invoice Release Reason
1 Many Invoice quick relax reason
Many Many Hold quick relax reason
Create a Hold Reasons:
Setup>Invoice>Hold & Release Names
1. Name: KR Dispute with Supplier (If Invoice Hold – Reason is required)
Type: Invoice hold reason Enable – Accounting & Manual Release
1A. Name: KR Disputed Resolved
Type: Invoice release reason
2. Name: KR Quality to be checked (If Invoice Hold – Reason is required)
Type: Invoice hold reason Enable – Accounting & Manual Release
2A. Name: KR Quality Checked
Type: Invoice quick release reason
3. Name: KR ALL Releases (Don’t Enable)
Type: Hold quick release reason
1. One Invoice One Hold:ORACLE FINANCIALS Oracle Financials Volume II
Holds
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Invoice: KR INV 14
Distribution: KR SKELETON (Manually enter amount in distribution window)
Click: Hold & Fix a hold
Validate
Result: Needs Revalidation
Click: Hold & Fix a release
Once release the hold, it will validate automatically – Create Accounting
2. One Invoice Many Hold:
Invoice: KR INV 14
Distribution: KR SKELETON (Manually enter amount in distribution window)
Click: Hold & Fix 2 holds
Validate
Result: Needs Revalidation
Click: Hold & If release reason is same, press shift and block 2 holds and fixes a release
Once release the hold, it will validate automatically – Create Accounting
3. Many Invoices Many Hold:
Invoice: KR INV 15 & KR INV 16
Distribution: As Required
Click: Hold & Fix a multiple holds for both the invoices
Validate
Result: Needs Revalidation for both the invoices
Block both the invoices
Click: Action 2 – Release: All & KR Release All – OK
It will release the both the invoices and validated automatically – Create Accounting
4. Distribution Variance Hold:
Invoice: KR INV 21
Amount: Rs.10000ORACLE FINANCIALS Oracle Financials Volume II
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Distribution: KR Skeleton
In Distribution: Distribute the values 8000 to 110 and 1500 to 120
Validate
Result: Needs Revalidation (Reason: Distributed amounts are not equal and it is varied)
Result in Hold Window: Distribution Variance Hold
In Distribution: Make distribute the amount correctly
Validate
Now, Result in Hold Window: Variance Corrected
Create Accounting
Mixed Invoice:
Invoice Value: Rs.10000 (Actual Goods)
Damages: (-3000)
Required Additional: +1000
Therefore Actual Damage: (-2000) only – For our knowledge
Create an invoice: KR INV 24 for Rs.10000 (Actual Goods) – Validate
Create Mixed Invoice: KR MIX 01 for (-3000) – Validate
Match with Invoice – Select that invoice KR INV 22 – Enter (-3000) only Match it
Again Match with the same invoice KR INV 22 – Enter (+1000) only Match it
Therefore, Invoice KR INV 24 = 10000-3000+1000=8000
Quick Invoices: When we want to enter large number of transactions and when it does not require extensive validation and defaulting invoice.
Quick: Standard Invoice & Credit Memo only can be entered
Both the header and line information enter in single window
Dates – Header information in header window
Dates – Line information in distribution window
Quick Invoice
ORACLE FINANCIALS Oracle Financials Volume II
Payables open interface tables AP – Invoice – Interface AP – Invoice – Lines Interface
Main TableAP –Invoice – ALL
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Payable open interface import processInvoice>Entry>Quick Invoice
Batch Name: KR BATCH 1 (Create)
Type: Standard
Number: Q1
Supplier: KR Supplier (Attach)
Amount: Rs.8000
Line Type Amount Account
1 Item 6000 KR – 110 – 7150 – 0000 – 000
2 Freight 2000 KR – 110 – 7220 – 0000 – 000
Click: Save & Next
Type: Credit Memo
Number: Q2
Supplier: KR Supplier (Attach)
Amount: (-2000)
Line Type Amount Account
1 Item -2000 KR – 110 – 7420 – 0000 – 000
Click: Create Invoices
View – Request – Completed – View Report
Go to Quick Invoices – Find
Status: Processed (Invoice process in KR Batch 1)
Go to Invoice Workbench – F11 – KR Sup% Q1%
Control F11 – Validate
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Main TableAP –Invoice – ALL
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Now, the quick invoices – View your invoices – Create invoices – Purge it. (Delete)
Foreign Currency Invoice:
In Payable Options – Currency
Enable: Calculate User Exchange Rate & T
Exchange Rate Type: User
Invoices>Entry>Invoice
Invoice: KR INV 23
Currency: AUD
Amount: 10000
Rate Type: User (Automatic)
Exchange Rate: 0.5 (Enter – User defined from daily newspapers)
Validate – Create Accounting
Entry: AUD AUD USD USD
Charge 10000 0 5000 0
Liability 0 10000 0 5000
Invoice Batches:
For setup the invoice batches
Edit – Preferences – Profiles
Query: Ap% - Control F11
AP: User Invoice Batch Controls – Yes (Make it allow)
Existing Responsibility: Payable, however, once again clicks switch responsibility to Payable.
Now, we can create multiple invoices in one batch
Invoice> Entry> Invoices:
Name: KR Batch 01 (Create)
Control Count: 3
Amount: 50,000
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Currency: USD
Terms: KR Immediate (Attach)
Pay Group: KR Pay Group (Attach)
Click – Invoices & Enter 3 Invoices, which is equivalent to Rs.50000.
Save and close
Then Click – Validate 1 in Invoice batch window
View – Request – Status – Completed (Normal, view Output)
Then, click Create Account in same window
View – Request – Status – Completed
We have created account entries
Go to Invoices – Approve and validate
(Same window)
(We can enter various invoices in invoice workbench while using invoice batch control)
Recurring Invoices:
Create a Special Calendar for Recurring Invoice
Setup>Calendar>Special Calendar
Name: KR SPL RECURRING Type of Calendar: Recurring Invoice (Enable)
Periods: 12
Period Name Year Sequence From Date To Date
P1 2006 1 01-Apr-06 30-Apr-06
P2 2006 1 01-May-06 31-May-06
Save
Invoice Entry:
Attach: Pre – defined items
Template Definition: KR REC 01
Amount: 10000 (Automatically generate full year amount)ORACLE FINANCIALS Oracle Financials Volume II
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Change: 10% (Increase every month)
Special: 4000 (Particular Month only this amount will be an expense)
No of Invoice: 12 (Number of recurring invoices to be created)
Click: Create Recurring Invoice
Go to Invoice workbench – Query F11
Paste that Recurring Journal No – Control F11
Validate every – month as required
(Recurring invoices based on period enKRg)
Expensed Reports:
The format for the purpose of reimbursement to staff
In Payable Options –Expense Report
Enable: Apply Advances & automatically create employee as supplier
Template: (Create template for reimbursements)
Setup>Invoice>Expense Report Templates
Template Name: KR EXPENSE REPORT TEMPLATE
Expense Item Expense Category Item type GL Account
Food Meals Miscellaneous 33-000-7690-0000-000
Travel Air Fare Miscellaneous 33-000-7699-0000-000
Accommodation Accommodation Miscellaneous 33-000-7670-0000-000
(Tax & Internet Expenses – Enable if required)
Click: All Verified
View – Request – Single Request
Name: Expense Report Import
Parameters: Batch: KR EXP 01
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Summarize Report: No
Source: Payables Expense Reports
GL Date: 01-JAN-2001
Click: OK
View –Request – Status – Completed – View Output (Copy: KR EXP 01)
In Invoice Workbench
Query F11 – KR EXP 01% - Control F11
Type: Expense Report (Automatically Generated)
Validate – Approve – Create Account
TAX:
Tax is a charge and pay to government
TAX
Header Level Distribution Level
Always inclusive of Tax May be inclusive or exclusive of tax component
Tax = Income x Rate/ (100+Rate) Tax = Invoice x Rate/100
Types of Tax:
1. Sales Tax2. Use Tax3. User defined Tax4. WithholKRg tax5. Offset Tax
1. Sales Tax
Setup Tax Codes
Tax Code: KR Tax Code
Tax Type: Sales
Rate: 10
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From: 01-Apr-06
GL Account: 33-000-7710-0000-000
(Sales)
Attach this tax code in supplier
Supplier>Entry
Query your supplier – KR Supplier
In Sites – Invoice – Attach KR Tax Code and
Disable – Use offset taxes & distribution amount includes tax
Save
Enter an invoice (Manual: In Payable – Invoice Tax – Disable Amount Tax Cal)
Invoice>Entry>Invoice
Invoice: KR INV 25
Amount: 11000 (Based on Tax enter this invoice value)
In Tax Code: KR Tax Code & Header (Automatically Generated)
Tax: 1000 (Enter Manually) (11000 x 10/110)
Validate – Create Accounting
Entry:
Charge 10000
Non – recoverable tax 1000
Liability 11000
Enter an invoice (Automatic: Payable – Invoice Tax – Enable Automatic Tax & Head)
Invoice>Entry>Invoice
Invoice: KR INV 26
Amount: 11000
In Tax Code: KR Tax Code & Header (Automatically Generated)
Tax: 1000 (Enter Manually) (11000 x 10/110)
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Validate – Create Accounting
Entry:
Charge 10000
Non – recoverable tax 1000
Liability 11000
Enter an invoice (Automatic: Payable – Invoice Tax – Enable Automatic Tax &Line)
Invoice>Entry>Invoice (Supplier – Sites – Invoice tax – Level: Line & Enable: Disable – Disl)
Invoice: KR INV 27
Amount: 100000
Click Distribution – Attach KR Tax Code and Rate in each line
Click Calculate Tax – Rs.10000 Tax will be calculated – Save it
Go to invoice bench – Change the value as Rs.110000
Save it – Validate – Create Accounting
Entry:
Charge110 40000
Charge120 60000
Non-recoverable tax 10000
Liability 110000
(Automatic: Payable – Invoice Tax – Enable Auto. Tax & Line & Enable – Dist Incl. Tax)
(Supplier: Sites – Invoice Tax – Level: Line & Enable; Enable - Dist Incl. Tax)
Entry:
Charge110 40000
Charge120 60000
Non-recoverable tax110 4000
Non-recoverable tax120 6000
Liability 110000
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2. Use Tax: (Use Tax Liability Report)
We are purchasing goods from unregistered supplier. So, we should calculate tax for our purpose and remit in to go government.
In this tax, system will not calculate tax and we need to run a report.Setup tax codes:
SETUP > TAX > CODES
Tax code: KR use code
Tax type: use
Rate: 10
From: 01- Apr-06
GL account: 33-000-2520-0000-000
(Use)
Attach this tax code in supplier.
SUPPLIER > LINE
Query your supplier – KR Supplier
In sites –Invoice tax – Attach KR Use code and
Save.
Enter an invoice
INVOICE > ENTRY >INVOICE
Invoice: KR INV 28
Amount: 8000
In Distribution: Click tax – Tax will not be calculated.
Setup TAX Groups:
Group Code: KR TAX GROUP (Create) Input & enabled – OkDisable: Self service usersRates: KR Service Tax & KR Tax – Rates automatically updated.
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Save it.In KR Supplier site – Invoice Tax – Attach KR TAX Group & Disable offset taxesCreate an invoiceInv no: KR INV 51Value: 10000Tax: KR Tax Group (Automatic)Click Distribution – Attach KR TAX GROUP – Calculate Tax – Tax will be calculatedGo to invoice bench – Change the invoice value – validate – create accountingCharge 10000Sales Tax 1000Service Tax 10Liability 11010Recoverable Tax:
In financial Options – Enable recoverable tax – Default Rate: 3(Just for default)In Tax code – Enter Recovery RatesKR Service Tax – 2(Recovery Rates)SaveEnter an invoice for 10000In distribution – Attach KR Service Tax – Click DistributionNon-Recoverable – 999Recoverable – 1Change the value in invoice bench, which is equivalent to distribution totalValidate – Create AccountingEntry;Charge 10000Nonrecoverable 1000Recoverable 1
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Liability 11000
Recovery Rule: (Instead of Creating Recovery Rates)
Tax Recovery rules1.Supplier classification2.Account SpecificSetup TAX Recovery Rule;
Name: KR Tax Recovery ruleAccount: 33-110-7420-0000-000 & 33-130-7420-0000-000Rate: 3 %( Or we can take default value)Condition: Supplier ClassificationValue: KR Supplier typeSave
Setup Query TAX:
Query our Tax – KR Service Tax – delete old Recovery Rate – Attach KR Tax Recovery RuleSaveIn Supplier site – Invoice Tax – Attach KR Service Tax which is reflected with Tax recovery RuleSaveNow, Enter an invoice for 10000 – In Distribution – calculate Tax(Tax codes automatically selected)Validate – Create AccountingTAX Defaults and Rules:
In payable – Tax Default CodesSet hierarchy for everythingTemplate – 1
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PO for matched invoices – 2Invoice Header – 3Supplier site – 4Result: When we enter an invoice, the tax default hierarchy rules will be reflected for calculating tax.WithholKRg Tax: (TDS)
1. Flat Rate (With Hold)In Payable options – WithholKRg tax – Enable: USE WH tax & Disable: Manual withholKRg)Setup Tax Codes:
Code: KR WH FlatType: WithholKRg TaxAccount: 33-000-1332-0000-000 (WH)SaveIn WithholKRg Tax Details:Rate Structure: FlatTax Authority: KR Tax AuthorityType: Standard Rate: 10SaveIn KR Supplier Site – WithholKRg TaxEnable: WithholKRg TaxWH Tax Group: KR WH Flat
In KR Supplier Site – WithholKRg TaxEnable: WithholKRg TaxWH Tax Group: KR WH FlatSave(Remove all tax codes in invoice option of supplier and supplier site)
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Enter an withholKRg Invoice: KR INV 59Type: WithholKRgSupplier: KR SupplierAmount: 8000Distribution: As requiredFolder – Show fields – With % - Attach: WithholKRg tax groupAfter attached WH tax group from folder – our KR WH Flat automatically attached
Validate (Don’t calculate tax in distribution Set)After validation. The tax will be automatically calculated – Tax: Rs.8/- and displayed in distribution Create AccountingEntry:Charge: 10000Tax 8Liability 9992Copy the invoice numberIn invoice workbench – Query – In Description - %KR INV 59% - Control F11Now, the system will show you the WH invoice – Because this is automatic withholKRg tax calculation invoiceManual WithholKRg Tax Calculation:In payable option – WithholKRg Tax – Enable: Manual WH tax calculation & attach KR WH FLEnter an withholKRg invoiceRemove: Distribution &Tax codesIn Distribution,1. Enter an invoice KR 60 and allocation one account = 10000 (33-000-7420-0000-000)2. WithholKRg tax = (-1000) (33-000-1332-0000-000) Tax code: KR WH FLAT
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Save – Validate – Create AccountEntry:Charge: 10000Tax: 1000Liability 11000This is what calculating withholKRg tax manuallyCopy the invoice numberIn invoice workbench – Query – In Description - %KR 60% - Control F11Now, the system will not show the invoice – Because this is manual withholKRg tax calculation2. Period Basis (With Hold)
In payable options – WithholKRg tax – Enable: Use WH tax & Allow manual if required,For this create special calendarSetup Calendar Special:
Name: KR WH Calendar Type of calendar: WithholKRg TaxPeriod: 4Name Year Sequence From Date To Date
P1 2006 1 01-APR-06 30-JUN-06
P2 2006 2 01-JUL-06 30-SEP-06
P3 2006 3 01-OCT-06 30-DEC-06
P4 2006 4 01-JAN-07 31-MAR-07
Setup TAX Codes:
Code: KR WH PeriodType: WithholKRg TaxAccount: 33-000-1332-0000-000 (WH)SaveIn WithholKRg tax details:Rate structure: Period Limit
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Tax Authority : KR Tax AuthorityCalendar: KR WH CalPeriod Limit: 10000Type: StandardRate: 10 SaveIn supplier & Supplier Site - Remove old one and attach new KR WH Period. In payable enable automatic WH tax calculation and remove manual one as required.Create WithholKRg Invoice No: KR INV 70 – 90000Distribution: As requiredFolder – Show Fields – With% -Attach: WithholKRg tax groupAfter attached WH tax group from folder – our KR WH Flat automatically attached If WithholKRg tax calculation is automatic, need not calculate tax in distribution setValidate – Create AccountingWithholKRg Tax: 9000/-(90000*10%)Then create a new WithholKRg tax invoice no: KR INV 71 – 80000Distribution: As requiredFolder – Show Fields – With% - Attach: WithholKRg tax groupAfter attached WH tax group from folder – our KR WH Flat automatically attachedIf WithholKRg tax calculation is automatic, need not calculate tax in distribution setValidate – Create AccountingWithholKRg Tax: 1000/- only – Because Limit – 10000 only (9000 already utilized)3. Amount Range (With Hold)
In payable option – WithholKRg Tax – Enable (Use WH tax & Disable Manual Tax Calculation)
Amount Range
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Gross Amount (Invoice) Withheld Amount (Tax)
Per Invoice Per period Per invoice Per Period
Per Invoice: Each tax slab is applicable one for each invoice.Per Period: Each tax slab is applicable once for each period irrespective of the number of invoicesTax slab:0 to 1000 1%1000 to 2000 1.5%>2000 2%3A, Gross Amount: (Invoice value)Setup Tax codes:Tax code: KR GAPI (Gross Amount Per Invoice) & KR GAPD (Gross Amount Period)Type: WithholKRg Account: 33-000-1332-0000-000In WithholKRg tax details:Rate Structure: Amount RangesTax Authority: KR Tax AuthorityAmount Basis: Gross AmountPeriod Basis: Invoice & Period Calender: KR WH CAL
Amount Ranges Type From To Rate%
Std 0 1000 1
Std 1000 2000 1.5
Std 2000 2
Save.
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In KR Supplier & sites – Attach KR GAPISaveCreate WithholKRg Invoice No: KR INV 71 – 50000(GAPI – Per Invoice)Distribution: As RequiredFolder – Show Fields – With% - Attach: WithholKRg tax groupAfter attached WH tax group from folder – our KR GAPI automatically attachedIf WithholKRg tax calculation is automatic, need not calculate tax in distribution setValidateWith held amount: Rs.985I Distribution Set:WH Tax – 10 (For First 1000 – 1%)
WH Tax – 15 (For Next 1000 – 1.5%)
WH Tax – 960(Balance 48000 – 2%)
Total – Rs.985Create AccountNote:
This is Gross Amount per invoice based. Therefore, if we want to create a new WH GAPI invoice, the same and all tax slabs will be applied.Create WithholKRg Invoice no: KR INV 72 – 50000 (GAPD – Period)Distribution: As requiredFolder – Show Fields – With% - Attach: WithholKRg tax groupAfter attached WH tax group from folder – Our KR GAPD automatically attached if this selected in supplier window.If WithholKRg tax calculation is automatic, need not calculate tax in distribution setValidateWith held amount: Rs.985In Distribution Set:
WH Tax – 10 (For First 1000 – 1%)
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WH TAX – 15 (For Next 1000 – 1.5%)WH Tax – 960(Balance 48000 – 2%)Total – Rs.985Force Approval – Create accountNote:This is Gross Amount Period Based. Therefore, If we want to create a new WH GAPD invoice, the last slab(Above 2000 – 2%) will be applied. Because, we have already utilized first two slabs for fist invoice.New Invoice for Rs.60000/-However, the WH tax = Rs.1200/-(Directly go to 3rd slab – 60000*2%)(3B). With Held Amount: (Tax value)
Reverse mode of WithholKRg Gross AmountSetup Tax Codes:Tax Code: KR WHPI (With Held Amount per Invoice) & KR WHPD (With Held Amount Period)Type: WithholKRg Account: 33-000-1332-0000-000In withholKRg tax details,As like 3AIn KR Supplier & supplier Sites – Attach KR WHPI/ KR WHPDHere, we know the tax amount; Based on the tax amount we fine invoice valueInvoice Value: 300,000(Assume)WHPITax1000 100,000 (100,000/1) (1X*100000/100)
1000 66,667 (66,667/1.5) (1.5*66.667/100)
2667 133,333 (133,333/2) (2*133333/100)
4,667 300,000
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If we want create a new invoice, the same and above tax slabs will be applicable and find out invoice valueWHPDFor First Invoice4667 300,000For Second Invoice6000 300,000Here all the tax slabs will not be applied, because, this is period base withholKRg tax and final slab only will be applied.WithholKRg Tax Certificates:
If we have tax exemption certificate from our local tax authorities, the next tax rate can be usedHere, we already define WithholKRg flat rate = 10%Now, we have withholKRg tax certificateSetup tax WithholKRg Certificates:
Supplier: KR Supplier (Attach)Tax code: KR WH FlatNumber: 12345 (Just for reference)Priority: 1Rate: 4(Old rate: 10 & New: This 4)In Supplier and Supplier sites – Attach this KR WH FlatCreate WithholKRg Invoice No: KR INV 75 – 50000Distribution: As RequiredFolder – Show Fields – With% - Attach: WithholKRg tax groupAfter attached WH tax group from folder – our KR WH Flat automatically attached if this selected in supplier windowIf WithholKRg tax calculation is automatic, need not calculate tax in distribution setValidateWith held amount: Rs.2000 (50000*4%) – If we have certificates
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If we don’t have tax certificates group, Tax = 5000/- (50000 *10%)In this Situation, for particular invoice, we need to calculate 2% with held taxIn WithholKRg certificates – Click exceptionsTax code: KR WH FlatInvoice No: KR INV 76Rate: 2SaveCreate an invoice: KR INV 76 = Rs.10000/-Attach with held tax column and validate – Tax: Rs. 200/-WithholKRg Tax Group: (Assigning Bank)For multiple tax code like India (Tax 5% Surcharge 10%; cess 2%)Invoice value = Rs.300000/-
Rank Tax code
1 1 1 KR WH Flat 10%
2 1 2 KR WH Flat 9%
3 2 2 KR WH Flat 8%
If 1 2 3 is 10%on Rs.300000 = 30000(300000*10%)Then 9% on Rs.270000 = 24300 (300000-30000 = 270000 * 9%)Then 8% on Rs.245700 = 19656 (300000-30000-24300 = 245700*8%)
If 1 1 2 is 10% on Rs.300000 = 30000 (300000*10%)Then 9% on Rs.300000 = 27000 (300000*9%)Then 8% on Rs.270000 = 21600 (300000-30000) =270000*8%)
Create Tax codes:Setup Tax codes:
KR WH FL7 Tax – 7%
KR WH FL8 Tax – 85
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Now, attach these WithholKRg flat rates in WithholKRg tax groupsSetup Tax WithholKRg Groups:
Name: KR WH Tax Group (Create)Rank Tax code
1 KR WH Flat 102 KR WH Flat 93 KR WH Flat 8
Create an invoice for Rs.100000/-Show field – Folder – WithholKRg tax group (Attach: KR WH Tax Group)Distribution: KR Full Distribution as requiredValidateIt will calculate tax Rs.22140/- and in distribution window (IF RANK = 1-2-3)FL7 - 7000 (100000*7%)
FL8 - 7440 (100000-7000=93000*8%)
FL9 - 7700(100000 – 7000 = 85560*9%)
Total 22140
It will calculate tax Rs.22650/- and in distribution window (IF RANK = 1-1-3)FL7 - 7000 (100000*7%)
FL8 - 8000 (100000*8%)
FL9 - 7650(100000 – 7000 - 8000 = 85000*9%)
Total 22650
Payments:Pre-requisites:
- Bank- Payment Format (Linking programs to payment format)- Payable Document (Cheque)
Programs:
- Build payment program (Select invoices based on criteria specified)- External Laser payment program (Printing a cheque – Design the layout)
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- Separate Remittance advice program(List of invoices & forms)
Flow:
Payment FormatPayable Document Bank
Type: Manual (Manual cheque) Quick (for one invoice) Batches (Payment batches) Refund (Only for Debit Memo & Credit Memo)
Through:
Invoice work bench Entire payment of particular invoice
Payment work bench Partial payments (Schedule the payment of particular invoice)
1.Payment format:
Setup Payment Format:
Name: KR Payment Format (Create)Payment Method: CheckZero amount payments only - Disable (No Payment/Unpaid Invoice)Group by Due Date – Disable (For some Groups)Remittance:No. of invoices – 3 (Three invoices will be displayed in our remittance advice)Programs: Build Payments – Build Payment Program
Format Payments – External Laser Format Payments ProgramSeparate Remittance – Separate remittance Advice2. Banks:
Setup Payment Banks:
Name: KR ABN AMRO BANK (Create)Click: Bank Accounts
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KR Current Account – 516425GL Account:Cash – 33-000-1250-0000-000Cash Clearing – 33-000-1250-0000-000Bank Charges – 33-000-7870-0000-000Bank Error – 33-000-7871-0000-000Receipts – 33-000-2215-0000-000FDP – 33-000-2580-0000-000Click – Payable DocumentsDocument Name Disbursement Type Payment Format Last used Last AvailableKR CHECK1 Recorded KR Payment 0 100
KR CHECK2 Recorded KR Payment 100 200
KR CHECK3 Recorded KR Payment 200 300
Disbursement Type:Quick – Computer Generated/CombinedManual – RecordedIn KR Supplier and Supplier site – Disable WithholKRg tax and WithholKRg tax code – SaveCreate a standard invoice – KR INV 91 = Rs.10000/-Validate – Create AccountingAction – Click: Pay in fullType: Quick (Status: Negotiable; Means: Not Void)Bank Account: KR Bank Account (Attach)Document: KR Check 1 (Attach)Save.Action: Format & Create AccountingStatus: PaidEntry:
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Liability: 10000Cash clearing: 10000
For Partial Payment:
Payment Entry paymentClick: Enter/Adjust InvoicesValidate.
View – Request – Single Request.
Name: Use Tax Liability Report.
Parameters: Invoice – Validated – Supplier – 01/Apr/06 – No – Submit – View Report
Result: Calculated Tax: Rs.800/-
However, the calculated tax will not be accounted.
Tax authority:
SUPPLIER > ENTRY
Name: KR Tax Authority (Create)
In Classification – Type: Tax Authority (Attach)
In Payment – KR Pay Group (Attach)
In Sites: KR Tax Author (Create)
Go to Invoice workbench.
Supplier: KR Tax Authority (Attach)
Enter that calculated tax here.
New Invoice /Old Invoice no: Rs.800/-
In distribution, enter Rs.800/- 33-000-7710-0000-000
(S.T)
Validate – Create AccountingORACLE FINANCIALS Oracle Financials Volume II
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Entry:
Charge: 800
Liability: 800
Now, that tax liability is accounted.
3. Offset Tax:
This is for reporting purpose.
Paid tax for purchased goods from our supplier = 1000
Add some values for purchased goods and sell to some and payable sales tax = 2000(VAT)
Therefore, net payable tax for goods = 1000 only.(Payable 2000 – Paid 2000= Net Payable 1000)
However, we have paid and report to government.
Therefore, we have to create one tax type and offset tax type.
SETUP > TAX CODES
Tax code: KR VAT TAX KR OFF TAX
Tax type: VAT OFFSET
Rate: 10 (-10)
From: 01-Apr-06 01-Apr-06
GL Account: 33-000-1330-0000-00033-000-1333-0000-000
(Vat payable) (Offset Vat)
Copy KR OFF TAX and paste in offset tax code column of KR VAT TAX
Save it.
In KR Supplier Site – Invoice Tax – Attach KR VAT TAX & Enable use offset taxes
(In Payable Option – Invoice Tax – Enable – Automatic Tax Calculation)
Create an invoice
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KR Supplier – Inv 33 – 10000 – KR Full Distribution – KR Vat Tax
Click Distribution – Enter KR VAT TAX & 10%
Click Tax – Tax automatically calculated and generated offset taxes.
Validate – Create Accounting
Entry:
Charge: 10000
Liability: 10000
Vat payable: 1000
Vat liability: 1000
Offset Vat: -1000
Offset vat liability: -1000
4. Service tax: (User Define one)
In Payable lookups.
SETUP > LOOKUP >
F11 – TA% TY% -Control F11
Code: Create: KR Service Tax
Save.
SETUP > TAX > CODE
Tax Code: KR Service Tax
Type: Sales
Rate: 0.1
Account: 33-000-7710-0000-000
(Sales Tax)
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In Supplier – Sites – Invoice Tax –Attach: KR Service Tax & Disable offset taxes.
Enter an invoice:
Inv. No: KR Inv 44
Tax: KR Service tax (Automatic)
In distribution – Enter service tax and rates – click tax – tax will be automatically calculated.
(In payables & Financials –All the distribution sets should be in our company. Then only, tax entry at header for automatic tax selection in distribution)
Go back to invoice bench and change the invoice value, which is equivalent to distribution total.
Validate – Create Accounting
Entry:
Charge: 10000
Service tax: 10
Liability: 10010
Tax Groups: (For calculating multiple taxes)
SETUP > TAX > GROUP
Group Code: KR TAX GROUP (Create)
Input & Enable – Ok
Disable: Self service users
Rates: KR Service tax & KR tax – Rates automatically updated.
Save it.
In KR Supplier Site – Invoice Tax – Attach KR TAX GROUP & Disable offset taxes.
Create an invoice.
Inv no. KR INV 51
Value: 10000
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Tax: KR Tax Group (Automatic)
Click distribution – Attach KR TAX GROUP – Calculate tax – tax will be calculated.
Go to invoice bench – change the invoice value – validate – create accounting.
Charge: 10000
Sales Tax: 1000
Service Tax: 10
Liability: 11010
Recoverable tax:
In financial options – Enable recoverable tax – Default rate:3 (Just for default)
In tax codes – Enter recovery rates
KR Service tax – 2 (Recovery rate)
Save.
Enter an invoice for 10000
In distribution – Attach KR Service Tax – Click Distribution
Non – Recoverable – 999
Recoverable – 1
Change the value in invoice bench, which is equivalent to distribution total.
Validate – Create Accounting
Entry:
Charge: 10000
Non – Recoverable: 1000
Recoverable: 1
Liability: 11000
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Recovery rule: (Instead of creating recovery rates)
Tax recovery rules
1. Supplier classification2. Account specific
SETUP >
Name: KR Tax Recovery RuleAccount: 33-110-7420-0000-000 & 33-130-7420-0000-000
Rate: 3% (Or we can take default value)
Condition: Supplier Classification
Value: KR Supplier Type
Save.
SETUP > TAX > CODES
Query our tax – KR service tax – Delete old recovery rate – Attach KR tax recovery rule.
Save.
In Supplier Sites – Invoice Tax –Attach: KR Service Tax which is reflected with tax recovery rule.
Save.
(If we want this tax recovery rule in distribution set automatically, the defined distribution set are all in our company only)
Now, enter an invoice for 10000 – In distribution – Calculate tax.
(Tax codes automatically selected)
Validate – Create accounting.
Tax defaults and rules:
In payable – Tax default codes
Set hierarchy for everything
Template -1
PO for matched invoices – 2ORACLE FINANCIALS Oracle Financials Volume II
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Invoice header – 3
Supplier site – 4
Result: When we enter an invoice, the tax default hierarchy rules will be reflected for calculating tax.
WithholKRg tax (TDS)
1. Flat rate (With hold)In payable options – WithholKRg tax – Enable: Use WH tax & Disable: Manual withholKRg)SETUP > TAX > CODESCode: KR WH flatType: WithholKRg taxAccount: 33-000-1332-0000-000
(WH)Save.In withholKRg tax details,Rate structure: FlatTax Authority: KR Tax AuthorityType: StandardRate: 10Save.
In KR Supplier-withholKRg tax:
Enable: withholKRg Tax
WH Tax Group: KR WH Flat
In KR Supplier Site-withholKRg Tax
Enable: withholKRg tax
WH tax group: KR WH flat
Save
(Remove all tax codes in invoice option of supplier and supplier site)
Enter an withholKRg invoice: KR INV 59
Type: withholKRg
Supplier: KR supplier
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Amount: 8000
Distribution: As required
Folder –show fields –with%-attach: WithholKRg tax group
After attached WH tax group from folder-our KR WH flat automatically attached
Validate (don’t calculate tax in distribution set)
After validation, the tax will be automatically calculated-Tax: Rs.8/- and displayed in distribution
Create accounting
Entry:
Charge10000
Tax 8
Liability 9992
Copy the invoice number
In invoice workbench-Query –in description-%KR INV 59%-Control F11
Now, the system will show you the WH invoice –because this is automatic WithholKRg tax calculation invoice.
Manual withholKRg Tax calculation
In payable option –withholKRg tax-enable: manual WH tax calculation & attach KR WH FL
Enter a WithholKRg invoice
Remove: distribution & tax codes
In distribution
1. Enter an invoice KR 60 and allocation one account=10000 (33-000-7420-0000-000)
2. WithholKRg tax=(-1000) (33-000-1332-0000-000)Tax code: KR WH FLAT
Save-validate-create account
Entry:
Charge: 10000
Tax: 1000
Liability 11000
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This is what calculating withholKRg tax manually
Copy the invoice number
In invoice work bench-query –in description-%KR60%-control F11
Now ,the system will not show the invoice-because this manual WithholKRg tax calculation
AP
2. Period Basis(with hold)
In payable option –withholKRg tax –enable: use WH tax & allow manual if required
For this create special calendar
SETUP: CALENDAR: SPECIAL
Name: KR WH Calendar
Period:4
type of calendar: withholKRg tax
name year sequence from date to date
P1 2006 1 01-apr-06 30-jun-06
P2 2006 2 01-jul-06 30-sep-06
P3 2006 3 01-oct-06 30-dec-06
P4 2006 4 01-jan-07 31-mar-07
SETUP-TAX-CODES
Code: KR WH Period
Type: WithholKRg tax
Accounting: 33-000-1332-0000-000(WH)
Save
In withholKRg tax details
Rate structure: Period limit
Tax authority: KR Tax authority
Calendar: KR WH CalORACLE FINANCIALS Oracle Financials Volume II
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Period limit: 10000
Type: standard
Rate: 10
Save
In supplier & supplier site-Remove old one and attach new KR WH period
In payable enable automatic WH tax calculation and remove manual one as required
Create WithholKRg invoice no: KR INV 70-90000
Distribution: as required
Folder-show fields-with%-attach: WithholKRg tax group
After attached WH tax group from folder-our KR WH flat automatically attached
If withholKRg tax calculation is automatic, need not calculate tax in distribution set
Validate-create accounting
WithholKRg tax: 9000/-(90000 * 10%)
Then create a new WithholKRg tax invoice no: KR INV 71-80000
Distribution: as required
Folder-show fields-with%-attach: WithholKRg tax group
After attached WH tax group from folder-our KR WH flat automatically attached
If WithholKRg tax calculation is automatic, need not calculate tax in distribution set
Validate-create accounting
Payment Amount: Rs.20101.80
Action: Create Accounting and payment format
Entry:
Liability 20000
Interest 101.80
Cash clearing 20101.80
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Suppliers merge:
At the time of
- Amalgamation of our supplier companies- Created some duplicate (or) wrong supplier
Supplier + supplier merge
All – Merge all transaction and payment sites to new supplier
Unpaid – Merge all unpaid transaction to new supplier
None – Merge only sites to new supplier
From Supplier and sites To Supplier and sites
Click: Merge
View – Request – Single Request
Program: Supplier Merge Program – submit
Payment Batches:
Criteria:
Supplier Name Invoice Batch Pay Group Pay date Payment priority
Status:
Selecting – selected BuilKRg – Built Modifying – Modified RebuilKRg – Rebuild Formatting – Formatted Confirming – Confirmed Cancelled (Before confirming)
Payment entry – Payment batches
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Name: KR payment Batch (create)
Selecting your supplier name
Select your invoice batch
Based on format of supplier (3 invoices for one payment document), it will pay the three invoices for one payable document.
We can select invoices and modify the payable amounts in that window
Therefore, payment batch will be considered for selected invoice with one payable document.
Invoice Aging Report
Invoice status Report: Overdue / Payable invoices
(Unpaid report)
Set up: Calendar + Aging period
Name: KR Aging calendar Active: Enable
Column order days from Days To Column HeaKRg First1 -180 1 Future payment
2 0 60 60 days payment due
3 61 180 180 days payment due
4 181 450 > More than 181 days payment due
Save
Submit a single request: Invoice Aging Report
Parameters: Supplier name & invoice type
Include invoice detail : yes
Include site detail : Yes
Supplier Name : KR Supplier
Aging name : KR Aging cal
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Submit – view status – completed – view report
Result :
It will show unpaid invoices, current payable invoices, after 60 days payable invoices, after 181 days payable invoices.
Debit memo:
Payment – Refund is automatically generated.
We have received cheque from customer . Therefore, document is manual
Entry is reversed
Liability 10000 (Cr)
Cash clearing 10000(Dr.)
Payables transfer to GL:
Submits a single request: Payables transfer to GL
Parameter: set of books and periods & journal import & as required
Submit – view – completed
Close the period: If transferred to GLConditions:
1. All invoices and payment should be validated and accounted
2. All future dated payments have the status is negotiable
3. All payment batch status should be confirm
However, we have a option to sweep (Skip) to next month for transfer of all unaccounted transactions to next month.
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After transferring payable to GL (copy the batch from output) switch over to GL
Go to journal = Batch: paste the batch% (or)
Source: payable & month (Attach) then,
Find: Transfer summary – List out all transfer transactions
Post it
Set up – Invoice – Payment terms
Credit days 30 without discount
% due Days
100 30
Select: Our Invoice
Adjustments: Discount & As Required (Can attach Payment Terms for discount as defined)
(While making partial payment amounts manually, it will not consider discount amount)
Save and Make payment
Action: Format and Create Accounting
Status: Paid
Pre-Payments:
Temporary (Can be applied against invoices) Permanent (Cannot be applied against invoices)
Status:
Un-validated Unpaid Paid Available Fully Applied
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Create standard invoice KR INV 96 for Rs 100000/-
Validate – create Account
Charge 100000
Liability 100000
Create a pre-payment invoice PRE 01 for Rs 30000/-
Prepayment Type: Temporary (Automatic)
Validate – Create Account
Prepayment Expense 30000
Liability 30000
Status: Unpaid
Action: Pay in Full: format & Create Accounting
Status: Available
Action: Apply/Un-apply
Match this prepayment with KR INV 96 (find this Invoice)
Enable: Apply – Prepayment invoice amount automatically displayed
Click: Apply
Status: Fully Applied
Query: KR INV 96 – Validate – Create Accounting
Entry:
Charge 100000
Prepayment 30000
Liability 70000
Invoice status:
Amount: 100000
Paid: 30000(Partial)
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Unpaid: 70000
Stopping Payment:
Stopping payment reasons may be insufficient of funds, disputes with customer, etc.
Payments Entry Payments:
Query your payment – Action: Initiate Stop (For bulk payment step: Shift & Select Payments)
Result: Stop Initiated
For Release the payment: Action: Release stop
Result: Negotiable (Normal)
VoiKRg payment: (Canceling Payment)
1. None (Cancel the payment and not the invoice)2. Hold (Cancel the payment and invoice his hold) – Hold invoice has to release once
again3. Cancel (cancel both invoice and payment)
None: Cancel the payment only and not the invoice
Payments Entry Payments:
Query your payment – Action: Void (None)
Result: Voided (In payment window) &Reversed (Payment reversed in invoice work bench)
Hold: Cancel the payment and invoice also hold (Hold Reason – Quality Dispute/Etc.)
Payments Entry Payments:
Query your payment – Action: void (Hold)result: Voided(In payment window) &Hold(Invoice hold in invoice workbench)
Hold: Cancel the both payment and invoice
Payments Entry Payments:
Query your payment – Action: Void (Cancel)
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Result: Voided (In payment window) &Reversed (Invoice also reversed in invoice workbench)
If we want to release these invoice, Action in invoice workbench-Release holds and pay in full
Reissue:
If any paid document is damaged, we have to reissue that invoice payment through another payable document (cheque)
Payments Entry Payments:
Query your payment- Action: Reissue
Result: The same paid invoice is repaid with another next available check and that damaged invoice payment will be voided
Foreign Currency Payment:
User Rates
01-APR-06 = 1 AUD = 0.50 USD
02-APR-06 = 1 AUD = 0.49 USD
Create an invoice for AUD 100000 @ 0.5 USD (User Rate)
Now, Invoice value: AUD 100000 & USD 50000
At the time of payment, 1 AUD = 0.49 USD
In payment window, enter 0.49 in user rate column
Action: Create Accounting
Entry: (USD)
Liability 50000
Gain 1000
Cash Clearing 49000
(In KR payment format – Enable or Change – Multiple Currency for making multiple currency payments)
Future Dated Payments:
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Setup Banks
In Bank – Query –KR Bank
Click: Bank Account – Payable Document
Document Name: KR Check 4 (Add)
Disbursement Type: Computer Generated & 300- 400
Future Dated Payment: Allowed (33-000-2580-0000-000)
Create standard invoice – RS 5000/-
Validate – Create Accounting – Pay in full
In payment:
Quick – KR Current Account –KR Check 4 -301-Issued-Give Mature Date
(Computer Generated) (Status)
View – Request –Single Request
Name: Update Mature Future Payment Status
Parameters: Attach KR Supplier and sites and matured payment date
Submit – Status: Completed
Go to Payment window and Re-query that payment:
Document: KR% Document No: 301 (control F11)
Status: Negotiable
Therefore, this payment will be made on future maturity date
Book Invoice
Payment Document Issued
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FDP Maturity Date
Run – Request Maturity Issued
Run – Request Update Maturity Negotiable
Entry:
Liability 5000
FDP 5000
FDP 5000
Cash Clearing 5000
Interest Invoices:
In payable option – Interest
Enable: Allow Interest Invoices
Enable: Prorate Across Overdue Invoices
Minimum Interest Amount: Rs.50/- (Interest should be minimum Rs 50/- else Rs 0/-)
Accounts: 33-000-7820-0000-000 (Interest Expense)
Accounts: 33-000-2530-0000-000 (Interest Payable)
In KR Supplier – Payment – Enable: Allow Interest Invoices
Define Interest Rates:
Setup Payment -----:
Jan to Dec 05-05 = 5%
Jan to Dec 06-06 = 10%
Now, Interest rates are allowed for 05-05 period and rates are defined
Enter an Invoice No: KR INV 111 = Rs 20000/- 01-Jul-06
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Validate – Create Accounting – Pay in full
In Payment – Payment Date: 31-Aug-06
20000*3%=600*62/365=Rs.101.80 (Interest)
(1st July to 31st August – 62 Days)
ORACLE – ACCOUNTS RECEIVABLES
ORDER TO CASH FLOW:
1. Order management (Create Order)2. Scheduling3. Pick release4. Ship confirm5. Auto invoice6. Invoice in AR7. Receipt
ACCOUNTS RECEIVABLE:
Effective management of Debtors Correct recorKRg for receipts Scheduling the invoices for receipt
BUSINESS FLOW:
Customer places the purchase order (Check Credit limit & then inventory limit).
Sales order
Send goods along with invoice
Yes No 1. Calls, 2. Dunning letters 3. Legal activities.
Receive cash or cheque
Deposit.
SYSTEM FLOW: System options Customer profile class Customer standard level
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Customer address level Customer business level Transactions (Invoice)
Control values – It cannot be altered at lower level
Defaulting values – It can be altered at lower level.
KEY FLEX FIELD IN AR:
1. Sales tax locations based flex field (Mandatory) – Based on state wise rates of tax.2. Territory Flex Field (Optional) – Based on area wise and sales man wise
information.
(Flex field modules – Fixed Assets, General Ledger, and Accounts Receivable)
– No flex field in Account Payable.
SALES TAX LOCATION BASED FLEX FIELD: (Mandatory)
1. State – country – city2. Country – city3. City4. Province city5. Province6. No validation country
KEY FLEX FIELD SEGMENTS:
SETUP > FINANCIALS > FLEXFIELDS > KEY > SEGMENTS
Query : Rec% Sales tax % - control F11
State – country – city (Flex field for location base sales tax calculations for setting up of our own state – city – country).
1.TAX LOCATIONS AND RATES: STATE – COUNTRY – CITY
SETUP > TAX > LOCATIONS
KR state 33-000-2520-0000-000 (Sales Tax & Use Tax Payable)
Rate: 5%
From: 01- Jan-01
Save.
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Select: Country Attach: KR State (Created)
KR Country
Rate: 3%
From: 01- Jan-01
Save.
Select: City Attach: KR Country (Created)
KR City
Rate: 2%
From: 01- Jan-01
Save.
2. TAX AUTHORITY:
SETUP > TAX > AUTHORITIES
Attach: KR State – KR Country – KR City
Save + Copy.
3. SALES TAX RATES:
SETUP > TAX > SALES > TAX RATES
Query: Paste that copied tax Authority - Query F11
Tax rates: 5+ 3+2 (Automatic).
SETUP > SYSTEM > SYSTEM OPTIONS
ACCOUNTING METHOD:
Accrual – Due (Provision i.e. Sales Entry)
Cash basis – Direct revenue.
Operating unit: Vision operations (USA).
Set of Books – Vision operations (Company – Department – Account – Subaccount – Product)
Finance charge activity: Finance charges (Revenue from debtor if delayed payment of dues)
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Realized gains account: 01-740-7830-0000-000 (Exchange Fluctuation Gains)
Realized losses account: 01-740-7840-0000-000 (Exchange Fluctuation Gains)
Tax account: 01-000-4150-0000-000 (Excess receipt goes to this account)
Unallocated revenue: 01-000-4150-0000-000 (Excess receipt goes to this account)
Cross currency rate type: User / Corporate / Spot – Daily / Notional /RBI rates
Cross currency Rounding: 01-740-7826-0000-000 (Cross currency Rounding rule)
Header Rounding account: 01-740-7827-0000-000 (Conversion Rounding Rule – AR)
Days per posting cycle – 10/20/30/5 (For transfer of journal to GL)
Transfer first 10 days data as 1st batch
Transfer next 10 days data as 2nd batch
Transfer next 10 days data as 3rd batch
Transfer next 10 days data as 4th batch
(For reducing and save time to process the request of transfer the journals to General Ledger)
Transactions and customer: (Invoice Based)
Customer – Reciprocal: A can pay for B (or) B can pay for A
Allow transactions deletion: Allow deleting after transactions entered. But not after transfer to GL
Auto invoice – This is for an order management.
Customer – Numbering.
Invoice – Net Invoice Value
Line: Charges / Services / Materials
Freight: Freight And Courier
Tax: Taxes
Miscellaneous:
Split amount: 2500 (Number of invoices for reporting)
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Discount basis: Invoice – On Net invoice value Rs. 100/-
: Line – On charges or services or materials whereas not net invoice value.
Item – Rs. 50/- (Line)
Freight – Rs.30/-
Tax – Rs.20 (Taxes)
Auto cash rule set: Adjusting receipts against continuity of invoices whereas not particular invoice.
Sales credit percent limit: For project accounting / For particular invoices
Write off limits per receipt: -500 500
If receive short, just write off Excess Receipt, transfer to revenue
Print remit to address: Print our address and remittance details
Collectors:
SETUP > COLLECTIONS > COLLECTORS
KR Collector (Create)
(Employee / External Sales Person / External Agent)
Profile classes:
CUSTOMERS > PROFILE CLASSES
Name: KR Profile (Create)
Collector: KR Collector(Attach)
Discount grace days: For giving discount for immediate receipts
Receipt grace days: For making charges on invoices due to late receipt.
Statement: Weekly statement (Cycle)
Dunning: Standard (Warning – Send letter with certain words for outstanKRg receivables)
Profile class amount: As required.
Save – Update all profiles
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Credit Profile: Tolerance – 10% (If sales is 10,000/- is 11000/- is credit limit)
(For everything, we need to define a rule or letter in back end of apps)
Payment terms:
SETUP > TRANSACTIONS > PAYMENT TERMS
Name: KR Immediate
Discount: Lines only
Installment option: Allocate tax and freight
Relative Due
100 0 Days
Name: KR 30 Days
Discount: Lines only
Installment option: Allocate tax and freight
Relative Due
100 30 Days
Discount: 10% 15Days (Before 15 Days receipt)
Name: KR Installment
Discount: Lines only
Print lead: 2
Installment option: Allocate tax and freight
Relative Due
50 15
50 30
Name: KR Proxima
Discount: Lines only Cut off: 15
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Installment option: Allocate tax and freight
Day of Month Ahead
20 1
(Actual due is 20th January; If Ahead is 1; Therefore due is 20th February.
If Ahead is 2, due is 20th March.
TRANSACTION TYPES:
SETUP > TRANSACTIONS > TRANSACTION TYPES
Name: KR Invoice
Class: Invoice Open Receivable= Enable (Customer O/s will increase when new invoice enter)
Enable: Print, Open, Post to GL=Enable (Customer O/s will increase and transfer to GL)
Enable: Allow Freight
Sign: Positive
Period: 01- Jan-2001
Transaction status:
Closed = Amount collected
Open = Amount is penKRg
PenKRg = Data entry operator status (It is always penKRg for DEO)
Void = cancelled
Open receivable Post to GL
DEO Not allowed Not allowed
AR Manager Allowed Not allowed
Account Manager Allowed Not allowed
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Allow over – application: Excess receipt of particular invoice, accounted in the same invoice whereas not go to some other account or invoice.
Sources:
SETUP > TRANSACTIONS > SOURCES
Name: KR Sources Manual
Active: Enable 01-Jan-04
Auto batch no: Enable LN – 5000
Auto transaction no: Enable LN – 8000
If batch is 5001, Auto invoice number starts from 8001
Item:
SETUP > TRANSACTIONS > ITEMS > DEFINE ITEMS
Select: V1 – vision operations
Items: 000.00000 (KR Item) Display: All
In Invoicing: Enable – invoice item and invoice enabled.
Customers:
CUSTOMER > STANDARD
Name: KR Customer
Click: Find – New
This KR Customer is new one and taken in to account.
In Classification: KR Profile (Attach)
(It will automatically select all items of KR Profile – profile transactions)
Go to Address: Click – New
Address: KR Customer site – 1(create)
City: KR City
State: KR State
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Country: KR Country
Postal code: 00000 (Click LOV)Usage Location Bill to location
Bill to 10965
Ship to 10967 10965 (Enter)
Transactions: (Enter an invoice) Transactions / Transactions
Source: KR Sources
Class: Invoice
Type: KR Invoice
Ship to: KR Customer
Click: Line ItemsItem Quantity Rate Amount
KR Item 100 100 10000
Save.
Click: Complete (In Transaction window).
If you want to make correction, click: Incomplete.
Entry:
Receivable (Client Account) 10000
Revenue (Sales Account) 10000
(This is defined as auto accounting).
Transaction: (Tax & Freight)
Source: KR Source
Attach: Class – Invoice
Type: KR TypeORACLE FINANCIALS Oracle Financials Volume II
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Ship to – KR Customer
Line items: KR Item 100*100=Rs.10000/-
Tax code: Location (5+2+3=10%) = Rs.1000/-
Click – Freight: = Rs.500/-
Save + complete.
Item: 10000; Tax: 1000; Freight: 500; Total: Rs.11500
Invoice Distribution:Dr. Cr.
Revenue 10000
Tax 1000
Freight 500
Receivable 11500
Invoice Accounting Entry:Dr. Cr.
Receivable 11500
To Revenue 10000
To Tax 1000
To Freight 500
Debit memo:
It is used to increase the debit balance of customer.
Memo lines: Memo lines are defined to charge the customers other than the inventory items.
Actual value = 10000
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Invoice Raised = 8000
Difference = 2000 (Debit Memo)
For debit memo:
SETUP > TRANSACTIONS > TRANSACTION TYPE
Name: KR Debit memo (Create)
Class: Debit Memo Open & GL Post: Enable
Freight: Enable Do not print & Open: Select
Sign: Positive (+)
Now, new transaction invoice Transaction/ Transaction
KR Sources
Debit memo
KR Debit memo
Lines – KR Item 100*100=10000
In transaction window – More information option
Cross Reference: 8002 Invoice (Select in list of values LOV)
Click: Complete.
Transacting & Accounting Non – Inventory Items:
SETUP > TRANSACTIONS > MEMO LINES
(Only Freight / Tax / Consultancy Charges can enter)
(If we do not want to inventory items, we can use memo lines)
Name: KR Freight (Create)
Type: Freight (Select)
Date: 01- Jan-01
Save.
Name: KR Tax (Create)
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Type: Tax (Select)
Date: 01- Jan-01
Save.
Name: KR Consultancy (Create)
Type: Charges (Select)
Date: 01- Jan-01
Save.
1. Create A Debit Memo: (For Freight Only)TRANSACTIONS > TRANSACTIONKR SourceIn lines – Description = % - KR FreightThen we cannot enter amount in quantity / price / amount.Click: Freight – Enter =500/-Complete (Freight only accounted and raised as debit memo)
2. Create A Debit Memo: (For Tax Only)TRANSACTIONS > TRANSACTIONKR SourceIn lines – Description = % - KR TaxWe can enter amount in that window.Click: Tax code – Adhoc / Other = 1000/-Complete.
3. Create A Debit Memo: (For Consultancy Only)TRANSACTIONS > TRANSACTIONKR SourceIn lines – Description = % - KR ConsultancyNow, we can enter amount in quantity=1 (Not more than 1)Price = 1000=Consultancy charges =1000(1*1000)Complete. (If we want to enter more than one in this option, we require technical support).
Credit memo:
It is used to decrease the customer balances.
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SETUP > TRANSACTIONS > TRANSACTION TYPE.
Name: KR Credit memo.
Class : Credit Memo
Allow Freight: Enable Do not print & Open: Select
Sign: Negative (-) Tax calculation: Enable
Date: 01- Jan -01 Natural: Enable
Save.
Create a credit memo:(Festival discount – on account credit memo & not adjust with any invoice).
TRANSACTIONS > TRANSACTION
Source: KR Source
Type: Credit memo
In lines: Description – Diwali discount = -20000
Complete.
(Negative amount only will be accepted when complete the transaction).
Copy to invoices:
For example – Invoice no: KR INV 1
Creating multiple number of invoices such as KR INV 1
Create an inventory invoice no: 8010 for Rs.2000 – make it complete.
On top – action: Copy to
Schedule: No. of times 4
No. of Days 0
It will automatically create 4 invoices such as created invoice no: 8010 for Rs.2000
Inv. No. 8011 – Rs. 2000/-
Inv. No. 8012 – Rs. 2000/-
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Inv. No. 8014 – Rs. 2000/-
Credit memo adjusting one invoice:
Create an invoice no: 8050 for Rs.10000/-
Complete.
Action: Installments status: Open
Now, (Decreasing value)
Action: Credit
Attach: KR Credit Memo
Credit memo: %40 4000/- or Click: Credit Balance (100% is credit memo)
(Here, we can enter -4000 also)
Click: Refresh (Refreshing the invoice)
Net invoice balance = Rs.6000/- only
Action: Installments Rs. 6000/- Status: Open
If credit memo is (-10000)
Action: Installments Rs.0/- Status: Closed.
Conclusion of Debit & Credit Memo: (In Oracle Apps)
Debit Memo:
We can raise debit memo against one invoice and we cannot view the increased amount in that particular invoice.
Credit memo:
Here we can raise credit memo against one invoice and can view the balance amount of that particular invoice. (Actual invoice value – Credit Memo value = Balance Value).
Installment invoice:
Create an invoice
Payment terms: KR InstallmentORACLE FINANCIALS Oracle Financials Volume II
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Complete.
Payment terms automatically generated:
1st 15 Days = Rs. 5000/-
Next 30 Days = Rs. 5000/- as defined.
Credit memo against the above invoice: FIFO / LIFO / PRORATE
1st installment = Rs. 5000/-
2nd installment = Rs. 5000/-
FIFO: (Rs. 5000/- OR 50%)
1st installment = 0 (CLOSED)
2nd installment = 5000 (OPEN)
LIFO: (Rs. 5000/- OR 50%)
1st installment = 5000 (OPEN)
2nd installment = 0 (CLOSED)
PRORATE: (Rs. 5000/- OR 50%)
1st installment = 2500 (OPEN)
2nd installment = 2500 (OPEN)
Deposits & Guarantee:
Deposits and guarantee are commitment transaction
- In case of deposit, we have received money from customer in advance- In case of guarantee, it is an oral commitment only.
Deposits Guarantee
Advance receipt supply invoice & goods against oral guarantee
Then raise an invoice and
Send goods.
Deposit:
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SETUP > TRANSACTION > TRANSACTION TYPE
Name: KR Deposit (Create)
Class: Deposit (Attach)
Allow Freight: Enable Select: Do not print
Sign: Positive(+) Select: Open
Invoice type: KR Invoice
Date: 01- Jan -01
Save.
Allocations: Line, Tax, Freight (Against Deposit Invoice)
Enter a deposit invoice: (Advance receipt invoice = Commitment Invoice)
Source: KR Source
Class: Deposit
Type: KR Deposit
(Do not click line).
Click: Commitment – Rs. 200000/- (Description: Deposit invoice)
Save.
Invoice no is automatically generated = 8019 (Note down)
Now, create an invoice no: 8020
Source: KR Source
Class: Invoice
Type: KR Invoice
Commitment: 8019
Line: KR Item – 1000*139- Rs. 130000/-
Make it complete.
Value of this invoice 8020 = Rs. 0/
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(Reason: Already received advance and adjusted against this invoice).
Detail: Invoice 8020 value Rs.130000 is adjusted against deposit invoice 8019. Now, query your deposit invoice 8019 = Detail: Balance Rs.70000 only.
Guarantee:
SETUP > TRANSACTION > TRANSACTION TYPE.
Name: KR Guarantee (create)
Class: Guarantee (Attach).
Allow Freight: Enable Select: Do not print
Sign: Positive (+) Select: Open
Invoice type: KR Invoice
Date: 01- Jan -01
Save.
Enter a guarantee invoice: (Oral commitment only and no advance receipts)
Source: KR Source
Class: Guarantee
Type: KR Guarantee
(Do not click line).
Click: Commitment – Rs. 300000/- (Description: Guarantee invoice)
Save.
Invoice no. is automatically generated = 8024 (Note down).
Now, create an invoice no: 8025
Source: KR Source
Class: Invoice
Type: KR Invoice
Commitment: 8024
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Line: KR Item – 1000*160- Rs. 160000/-
Make it complete.
Value of this invoice 8025 = Rs. 160000/-
(Reason of 100% Invoice value reflected: Guarantee invoice is made for oral commitment and this invoice 8025 value Rs.160000 is to be received).
However, this invoice 8025 value Rs.160000 is adjusted against guarantee invoice.
Now, query your guarantee invoice 8024 = Detail: Balance Rs.140000 only (300000 – 160000).
Therefore,
Invoice against deposit invoice value = Rs.0//-
Invoice against guarantee invoice value = Rs.160000/-Deposit Entry Flow Guarantee Entry Flow
Receivable Dr
To Unearned Revenue
Unbilled Receivable Dr
To Unearned Revenue
Receivable Dr
To Revenue
Receivable Dr
To Revenue
Unearned Revenue
To Receivable
Unearned Revenue Dr
To Unbilled Receivable
Invoice with rules:
Raising and booking invoices based on project completion wise (Phase wise)
(Fixed period wise & Variable period wise)
1. Accounting rule: The period is which the revenue is recognized and what % of revenue is recognized in each period.
2. Invoicing rule: When the bill is going to be raised
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- In advance- In arrears (After supply of goods).
Accounting rule:
- Fixed- Variable.
1. Fixed accounting rule: SETUP > TRANSACTIONS > ACCOUNTNG RULES
Name: KR Fixed Accounting Rule
Type: Accounting Fixed Duration
Period: Month (Month – Month) No.of periods: 4
Period %
1 252 253 254 25
Create an invoice:
KR Source
Invoice
KR Invoice
Date: 01- Mar – 01
Invoicing rule: In Advance
Line: KR Item – KR Fixed – 100*100 = 10000 – Make it complete (Inv. No: 8026 is generated)
(Invoice rule)
View – Single Request – Name: Revenue Recognition
Parameters: As Required.
Submit – View Request – Completed.
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Query your Invoice no: 8026
Tools – View Accounting: Entry:
Advance: (If in advance selected).Dr. Cr.
Receivable 10000
Revenue 2500 (1st May)
Revenue 2500 (1st June)
Revenue 2500 (1st July)
Revenue 2500 (1st August)
Unearned Revenue 2500 (1st May)
Unearned Revenue 2500 (1st June)
Unearned Revenue 2500 (1st July)
Unearned Revenue 2500 (1st August)
Unearned Revenue 10000
Invoice raised for Rs.10000/- based on period wise receipt.
(Money will come on those periods and that periods will be consider as due dates).
Therefore, First Sales Entry will be generated.
Receivable Account Dr.
To Revenue Account.
That sale accounted in Unearned Revenue (Advance Receipt – If Advance Option is selected).
Arrears: (If in Arrears Selected) – If invoice value is Rs.20000/-Dr. Cr.
Receivable 20000
Revenue 5000 (1st May)
Revenue 5000 (1st June)
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Revenue 5000 (1st July)
Revenue 5000 (1st August)
Unbilled Receivable 5000 (1st May)
Unbilled Receivable 5000 (1st June)
Unbilled Receivable 5000 (1st July)
Unbilled Receivable 5000 (1st August)
Unbilled Receivable 20000
Therefore, First sales entry will be generated.
Receivable Account Dr.
To Revenue Account. Cr.
That sale accounted in Unbilled Receivable (If Arrear Option is selected).
1. Variable accounting rule: SETUP > TRANSACTIONS > ACCOUNTNG RULES
Name: KR Variable Accounting RuleType: Accounting Variable DurationPeriod: Month (Month – Month) No. of periods: (Cannot enter) Period %
1 25Create an invoice:KR SourceInvoiceKR Invoice Date: 01- Mar – 01Invoicing rule: In Arrears (Arrears only Is logical)
(Here we don’t know the project phase periods. Therefore, invoice can be raised on project completion only. Therefore, invoice will be treated as in arrears only).
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(In arrears, the invoice based on project completion only)
Line: KR Item – KR variable – 100*100 = 10000 – Duration: 4 (01-03-2001) – complete
(Invoice rule) Periods Date.
Invoice no: 8028 (Generated).
View – Single Request – Name: Revenue Recognition
Parameters: As Required.
Submit – View Request – Completed.
Query your Invoice no: 8028
Tools – View Accounting: Entry:
Arrear: (Arrear only is logical to select)
Dr. Cr.Receivable 10000
Revenue 2500 (1st May)
Revenue 2500 (1st June)
Revenue 2500 (1st July)
Revenue 2500 (1st August)
Unbilled Receivable 2500 (1st May)
Unbilled Receivable 2500 (1st June)
Unbilled Receivable 2500 (1st July)
Unbilled Receivable 2500 (1st August)
Unbilled Receivable 10000
Book the invoice based on variable period wise receipt and transfer to un –billable sales.
(However, money will come later).
3. Variable – Deferred (Booking and transfer to Revenue Account as required for future periods).
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KR Deferred (Create)Account Variable (Select) Month (Month – Month)Deferred: EnablePeriod %
1 100Save.
Create an invoice:
As usual and select sales person also.
Invoice rules: In Advance
Line: Deferred rule – 100*100 = 10000 – Duration: 1 (01-03-2001) – complete
(Invoice rule) Periods Date.
Invoice no: 8029 (Generated).
View – Single Request – Name: Revenue Recognition
Parameters: As Required.
Query your Invoice no: 8029
Entry:
Receivable 10000
Unearned Revenue 10000
Go to: CONTROL > ACCOUNTING > REVENUE RECOGNITION:
Find Invoice: 8029
Schedule the Revenue based on project completion on period wise (While completing the phases)
Click: Action – Schedule Revenue – Next – 70% If Schedule – Finish.
Rs.7000/- is transfer to Revenue Account
Balance Rs.3000/- is unscheduled
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Again schedule this Rs.3000/- to Revenue for making Rs.0/-
Save.
Again action: Transfer to sales person.
Save.
Query invoice: 8029
Dr. Cr.Receivable 10000
Revenue 7000
Revenue 3000
Revenue 10000
Revenue 10000
Unearned Revenue 10000
Unearned Revenue 7000
Unearned Revenue 3000
Tax:
SETUP > SYSTEM > SYSTEM OPTIONS
Sales tax Value added tax.
Sales tax VAT tax
Can operate VAT Cannot operate sales Tax.
Tax method: Sales Tax
Location Flex Field Steps: KR State – KR City – KR Country
Address validation: Error:- If address is not correct, the screen will show error messages.
No validation:- If we give wrong information, system will not validate.
Warning:- Warning message will display and can process further
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Tax vendor view: Oracle
Sales Tax Geo Override: If tax vendor view is some other software, we should attach that tax override application.
Inclusive Tax Used: If it is enabled, the tax amount will be displayed when we save in line window. Else, the tax will be displayed after complete the invoice.
Calculation level: Header – Tax will calculate only on Header
Line – Tax will calculate on each line.
Sales tax:
SETUP > TAX > CODES
TAX CODE TAX TYPE TAXABLE BASIS RATE % AMOUNT
KR Before Sales Tax Before Discount 10
KR After Sales Tax After Discount 10
KR Qty Sales Tax Quantity Rs.10/-
KR Adhoc Sales Tax Before Discount 12
KR Incl Sales Tax After Discount 10
KR Prior Sales Tax Prior 2
Effective:- 01- Jan-01
In control: KR Adhoc – Enable; KR Incl – Enable
Tax Account: 01-000-2520-0000-000
Prior tax: It’s only against with the help of Group Tax (i.e. Surcharge)
Inclusive: Item inclusive of tax.
1. Before: Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line itemsItem Quantity Rate Amount Tax
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KR Item 100 100 10000 KR Before
Save.Click: Save (in Line window)Tax: Rs.1000/- (Before Discount = Rs.10000*10%=Rs.1000)Total value = 11000Item = 10000Tax = 1000
2. After: Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerPayment Term: KR 30 days (For calculating discount)Click: Line items
Item Quantity Rate Amount Tax
KR Item 100 100 10000 KR After
Save.Click: Save (in Line window)Tax: Rs.900/- (After Discount = Rs.10000-Rs.1000=Rs.9000*10%=Rs.900)
Value Discount Tax calculation Tax Total value = 10900Item = 10000Tax = 900Invoice booking Entry:Receivable 10900 Dr.To revenue 10000 Cr.To Tax 900 Cr
3. Quantity : Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerPayment Term: As RequiredClick: Line items
Item Quantity Rate Amount Tax
KR Item 5 100 500 KR Qty
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Save.Click: Complete (in Transaction window)Tax: Rs.50/- (Quantity = 5 Quantity*Rs.10/-=Rs.50)
Qty no. Amount TaxTotal value = 550Item = 500Tax = 50
4. Adhoc : (If tax rate is different, we can use this method)In line – in tax window – we can enter tax rates and amount manually.Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items
Item Quantity Rate Amount Tax
KR Item 100 100 10000 KR Adhoc
Save.Click: Tax (in Line window)Defined for Adhoc = 12%Here, we can change the tax rate = 30% (Tax =Rs.3000/-)Tax: Rs.3000/-Total value =13000Item= 10000Tax = 3000(Before or after discount is based on company requirement. This is applicable for all quantity, adhoc and prior based tax calculations)
5. Inclusive : (Net invoice value is inclusive of tax)Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items
Item Quantity Rate Amount Tax
KR Item 100 100 10000 KR Incl
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10000=110% (10% Tax is inclusive of invoice value)?=100Result: Rs.9090.90 (10000/110*100=9090.90)Now,100%=9090.9010 %=?( 9090.90*10%=Rs.909.10)Tax=Rs.909.10
6. Prior : (Works with help of Group tax)SETUP > TAX > GROUPSGroup code: KR Prior -1 (Create)Output: SelectGroup name: KR Prior TaxEffective: 01- Jan-01Effective: EnabledRates:
Tax code Rate Condition Sign
1 KR Before 10 01- Jan-01 Credit
1 KR Prior 2 01- Jan-01 credit
(Select) (Automatic)Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items
Item Quantity Rate Amount Tax
KR Item 100 100 10000 KR Prior -1 (Group tax)
Click: Tax (in Line window)KR Before – 10%= Rs.1000/-KR Prior – 2%= Rs.20/- (KR Prior tax calculate on KR before amount Rs.1000*2%=Rs.20/-)Tax=Rs.1020/-Value added tax:1. VAT (Without CompounKRg)
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SETUP > TAX >CODESTax code Tax type Taxable basis Rate %
KR VAT 15 Value Added Tax Before Discount 15
KR VAT 10 Value Added Tax Before Discount 10
KR VAT 5 Value Added Tax Before Discount 5
In Effective: 01- Jan-01Save.SETUP > TAX > GROUPSGroup code: KR Without -1 (Create)Group name: KR without compounKRg (Create)Rates:
Tax code Rate Condition Sign1 KR VAT 15 15 01- Jan-01 Credit
2 KR VAT 10 10 01- Jan-01 Credit
1 KR VAT 5 5 01- Jan-01 Credit
(Select) (Automatic)Save.In System Options:Invoicing = AR RelatedOthers all = Other modules (PO, Inventory, Asset Management, etc)Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items
Item Quantity Rate Amount Tax
KR Item 100 100 10000 KR Without -1
Click: Tax (in Line window for view the calculated VAT)
KR VAT 15 – Rs.1500/-
KR VAT 10 – Rs.1000/-
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KR VAT 5 – Rs.500/-
KR Adhoc – Rs.1000/-
(We can add these taxes while calculating VAT without taxes).Total taxes = Rs.4000/-Total value = Rs.14000/-Line=Rs.10000/-Tax=Rs.4000/-
2. VAT (With CompounKRg)
SETUP > TAX > GROUPS
Group code: KR With -1 (Create)Group name: KR with compounKRg (Create)Rates:
Tax code Rate Condition Sign CompounKRg precedence
1 KR VAT 15 15 01- Jan-01 Credit 1
2 KR VAT 10 10 01- Jan-01 Credit 2
1 KR VAT 5 5 01- Jan-01 Credit 2
(Select) (Automatic)Save.In System Options:Invoicing = AR RelatedOthers all = other modules (PO, Inventory, Asset Management, etc)Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items
Item Quantity Rate Amount Tax
KR Item 100 100 10000 KR With -1
Save.
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Click: Tax (in Line window for view the calculated VAT)
KR VAT 15 – Rs.1500/-(1) -10000*15%=Rs.1500/-
KR VAT 10 – Rs.1000/-(2) -10000+1500=Rs.11500*10%=Rs.1150/-
KR VAT 5 – Rs.500/-(2) -10000+1500=11500*5%=Rs.575/-
Total taxes = Rs.3225/-3. VAT (With Constraint)-whether to use Tax Group
SETUP > TAX > GROUPSQuery: KR Without -1 (Control F11)Group Name: KR CompounKRgClick: Group ConstraintName: KR Constraint.
Lines:
Display Clause Entity Field Operator Value
1 If Ship to State + KR State
Action:
Display Type Code
1 True Use this Tax Group
2 False Do not use this Tax Group.
Save.(If ship to be KR State tax will be calculated else tax will not be calculated).Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items
Item Quantity Rate Amount Tax
KR Item 100 100 10000 KR Without-ORACLE FINANCIALS Oracle Financials Volume II
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1
Save.Click: Tax (in Line window for view the calculated VAT)
KR VAT 15 – Rs.1500/- -10000*15%=Rs.1500/-
KR VAT 10 – Rs.1000/- -10000*10%=Rs.1000/-
KR VAT 5 – Rs.500/- -10000*5%=Rs.500/-
Total taxes = Rs.3000/-
4. VAT (With Condition)-whether to use all Tax code under this GroupSETUP > TAX > GROUPS
Query: KR Without -1/As Required (Control F11)Group Name: KR CompounKRg/ As RequiredKeep your cursor on first line of Tax Code Rates (1) /As RequiredClick: ConditionsName: KR Condition.Lines:
Display Clause Entity Field Operator Value
1 If Transaction
Type = KR Invoice
Action:
Display Type Code1 True Use this Tax Group
2 False Do not use this Tax Group.
Save.(If Transaction type is KR Invoice, tax will be calculated for all VAT Tax codes else tax will not be calculated for rest of tax codes except conditional one).Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR Customer
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Click: Line itemsItem Quantity Rate Amount Tax
KR Item 100 100 10000 KR Without-1
Save.Click: Tax (in Line window for view the calculated VAT)KR VAT 15 – Rs.1500/- -10000*15%=Rs.1500/-
KR VAT 10 – Rs.1000/- -10000*10%=Rs.1000/-
KR VAT 5 – Rs.500/- -10000*5%=Rs.500/-
Total taxes = Rs.3000/-If we want to enter an invoice against MMM Invoice Type (Other Type of Invoice), the tax will be calculated as following.Click: Tax (in Line window for view the calculated VAT)KR VAT 10 – Rs.1000/- -10000*10%=Rs.1000/-
KR VAT 5 – Rs.500/- -10000*5%=Rs.500/-
Total taxes = Rs.1500/-Here, tax will not be calculated for first line (VAT 15). Because, the condition has been given such as if invoice type is not KR invoice, the tax should not be calculated for VAT 15.
5. VAT (With Exception)-(Exceptional tax rate fixation against which we already defined)
If we already defined the tax rate is 5%, we can change to 20%.SETUP > TAX > GROUPS
Query: KR Without -1/As Required (Control F11)Group Name: KR CompounKRg/ As RequiredKeep your cursor on first line of Tax Code Rates (1) /As RequiredClick: ExceptionsName: KR Exceptions.Lines:Display Clause Entity Field Operator Value
1 If Transaction Type = KR Invoice
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(Enable in system options –Tax Default)SETUP > TAX > EXCEPTIONSSelect – ItemItem: KR Item (Select)Item Exception Rates:
From Location Tax rate Reason
01-Jan-01 KR State-KR City-KR Country
10+20+30 Special
Predefined = 5+3+2=10%Exception case = 10+20+30=60% (Exception case – Defined Here)This is applicable for location tax code only. Because, KR State –KR City – KRCountry.Enter an invoice:Source: KR SourcesClass: InvoiceType: KR InvoiceShip to: KR CustomerClick: Line items
Item Quantity Rate Amount Tax
KR Item 100 100 10000 KR Without-1
Save.As like exemption calculation,Tax = Rs.6000/- (10000*60%=Rs.6000/-)
System Options: (For Setting Tax Default Codes & Hierarchy)SETUP > SYSTEM > SYSTEM OPTIONS
TAX CODE DEFAULTS HIERARCHY
Customer site 1
Customer 2
Product 3
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Revenue Account 4
System Options 5
We can set this hierarchy as required.While entering an invoice, it will tax default tax code as ranking here.If first ranked default tax code is not created, tax default selection move to next rank.
Enforce Tax from Revenue Account – Tax code default is always revenue tax code, which is created against revenue account.
Setting Tax Default For Particular Account: (For Item / Consultant / Service /etc).SETUP > TAX > GL ASSIGNMENTS
Account level:Account – Description – Tax Type – Tax Code.4110-Hardware - Output -KR Adhoc
(As Required) (As Required).
Consolidated billing:CUSTOMER > PROFILE CLASSESQuery: KR ProfilePayment term: KR Proxima (Change)Consolidated billing formats: EnableType: DetailsSave. – Update options – Enable: Update all profiles – Ok(It will update KR Proxima payment term for all KR Profile class for making consolidated billing)CUSTOMER > STANDARDName: KR Customer (LOV – Select)Find – KR Customer address displayed – OkIn profile transaction: Payment terms – KR Proxima (Select)In profile document printing – consolidate billing formats – Enable &Type: Detail(It will update KR Customer in order to KR Proxima payment term for consolidated billing)Enter an invoice:Source: KR SourcesClass: InvoiceDate: 15-May-06
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Type: KR InvoiceShip to: KR CustomerPayment term: KR Proxima (Automatic)Click: Line items
Item Quantity Rate Amount Tax
KR Item 100 100 10000 -
(As required).Save.Make it complete – Inv no: 8090Action: Copy toNo. of invoices: 15Days: 115 Invoices will be created like invoice no: 8090(1+15=16)View – Request – Single Request.Name: Print New Consolidated Billing Invoices.Parameter: 4896 (KR Customer) – KR Site – 15-May-06 – KR Proxima – Summary – No
Customer Bill to Cut of Date Payment term TypePreSubmit – Fine – View output.Result:All invoices are billed as consolidated.Transaction batches:
Making control to enter invoices by end user with certain control or limit(Count of Invoices & Amount of total invoices).TRANSACTION > BATCHESSource: KR Source (Select)Status: New (This status type – we should change manually after performing each steps)(But, in payable – this status will be automatically change ).Count Amount3 40000(3 Number of Invoices can be enter for total Rs.40000/-)Click: Transaction (For Entering Invoices)First invoices –Rs.10000Second invoices – Rs.20000(Now, 2 invoices are entered for Rs.30000/-)Now Status: Out of Balance (Manually Change).
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Third invoices – Rs.10000(Now, 3 invoices are entered for Rs.40000/-)Now Status: Open (Manually Change).Save.Batch Numbering: 5001 (Automatically Generated) – This number, we defined in system options.Receipts: (Basic Requirements)Requirements:
Bank Account Receipt Class
SETUP > RECEIPTS > BANKS
Name: KR Bank
Branch: KR Branch
Click: Bank Accounts
Name: KR Current Account
Use: Internal (As Required)
Number: 123654
GL Account:
Cash 01-000-110-0000-000
Cash clearing 01-000-1250-0000-000
Bank charges 01-000-7870-0000-000
Bank errors 01-000-7870-0000-000
Confirmed receipt 01-000-2215-0000-000
Future dated payment 01-000-2580-0000-000
Receivable option:
Remitted requests 01-000-1245-0000-000
Factored receipts 01-000-2110-0000-000
Short term debt 01-000-2110-0000-000
In more receivable option:
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Unapplied receipts 01-000-1240-0000-000
Unidentified receipts 01-000-2990-0000-000
On account receipts 01-000-2110-0000-000
Receivable activities: Unearned Discounts - Unearned discounts
Earned discounts – Earned Discounts
SETUP > RECEIPTS > RECEIPT CLASSES.
Name: KR Manual
Creation method: Manual
Remittance method: Standard & Factoring
Clearance method: By automatic clearing (We need to run a program).
Payment method: KR Manual Method
Effective date: 01- Jan -01
Manual: Enable – Debit memos inherit receipt numbers.
Click: Bank accounts
Attach: As required
Claim investigations: Claim investigation.
In formatting programs:
Remittance transmission: French bills receivable remittance
Remittance print: Print bank remittances program
Factoring transmission: French bills receivable remittance
Factoring print: Print bank remittances program
Steps after collect the cheque:
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Receipt issued Deposit Cleared.
Clearing method:
o Directly: Received and credited (FIRC)o By Automatic Clearing: Once cheque is cleared, status: Cleared.o By matching: Cash management.
Receipts:
RECEIPTS > RECEIPTS
Payment method: KR Manual method
Receipt no: KR 001
Amount: 10000
Type: Standard
Save.
Entry: (Receipt Process)Confirmation 10000 Dr.
Unidentified 10000 Cr.
Customer name: KR customer (attach)
Click: apply
Apply to: select invoice of this receipt (8001=Rs. 10000)
Click: save (it will be enabled applied & saved).
Entry: (receipt against invoice process)
Confirmation 10000
Receivables Dr Cr 10000(new)
Unapplied 10000
Unapplied 10000
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Unidentified 10000
Unidentified 10000
Status: confirmed (after created a receipt against an invoice)
Therefore, we prepared a receipt against an invoice.
Entry process:
Confirmation unidentified Unapplied unidentified (reversal) Unapplied (reversal) Receivables (against sales).
Remittance:
Receipts+ Remittances
In bank attach KR bankKR branch 123654 KR manual KR manual method
Bank ACCOUNT no rcpt class payment method
Click: manual create.
In that window (maintain Remittance Receipt batch)
Viewfind all(it will display all the entered receipts)/ find ( select your receipt).
Select :enable
Click: approve
Batch num 1052 (In Remittance window)control F11
Click: format
Viewrequeststatuscompletedview report.
(copy ur receipt num:001 in view report)
Go to receiptsquery: pasteKR 001%
Status: remitted.
Entry: (receipt cheque deposit process)
Confirmation 10000
Confirmation 10000
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Receivables 10000
Remittance 10000 (new)
Unapplied 10000
Unapplied 10000
Unidentified 10000
Unidentified 10000
Therefore, v have created 1 receipt & applied against an invoice. then, we select that receipt in remittance window & that receipt cheque deposited in our bank. Then, clear/risk eliminates process.
Clear/risk eliminate:
Receipts + clear/risk Remittances:
Name: automatic clearing for receipts
Parameters: yesyesyes25th may 200625th may 2006KR 001 KR customer.
SubmitViewrequestfind completed.
Receipt: query KR 001 % --> control F11
Entry: (clearing process)
Cash 10000 (new)
Receivables 10000
Remittance 10000
Remittance 10000
Unapplied 10000
Unapplied 10000
Confirmation 10000
Confirmation 10000
Now, the deposited cheque has been cleared & credited in out ACCOUNT.
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Factoring:
Receipt= 01-may-2006(cheque receipt date from customer).
Maturity=21-may-2006(cheque Maturity date)
Deposit=15-may-2006(cheque Deposited in our bank).
We have received a cheque against our invoice from our customer & deposited the same in future date. For this purpose, we can use factoring.
Process: confirmed receipt remitted cheque clearedrisk eliminated.
Create a receipt:
Receipt date: 01-may-2006
GL date: 01-may-2006
Maturity date: 21-may-2006
Receipt no: KR FACT (for our track)
Amts: Rs. 10000/-
Click: apply
Select an invoice8058enablesave.
Status: confirmed.
Go to remittance:
Receipts remittances.
Remittance method: factoring.
Date: 15-may-2006(deposit date).
Attach: bank & ACCOUNT no.
Click: manual create.
View find all.
Find: KR FACTenable.
Click: approve
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Batch no: 1833(copy).
Query remittance: 1833 (paste) control F11
Click: format
Go to receipts:
Query: KR FACT control F11.
Status: remitted.
Go to Clear/risk eliminate: (fix a risk)
(Cheque maturity date: 21-may-2006.however, we deposited our cheque in 15-may-2006 & bank takes risk & credits the funds in our ACCOUNT on 15-may-2006 itself against post dated receipt cheque).
Name: automatic clearing for receipts.
Parameters: yesyesno15th may 2006251h may 2006KR FACT KR customer.
(Fixed bank risk)(Clear date) (Receipt no.)
SubmitViewrequestfind completed.
Receipt: queryKR FACT % control F11.
Here, our banker taken a risk & give loan to us based on post dated receipt cheque.
Go to clear /risk eliminates: (remove a risk).
(Removing the bank risk due to cheque maturity date is arrived).
Name: automatic clearing for receipts.
Parameters: yesyesyes21th may 2006211h may 2006KR FACT KR customer.
(Eliminate bank risk)(Clear date)
SubmitViewrequestfind completed.
Receipt: queryKR FACT % control F11.
Status: risk eliminated.
Now, that maturity date is arrived & we removed the banker risk / removed the status of receipt of loan.
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Invoice
Item=Rs.800/-
Freight=Rs.100/-
Tax= Rs.100/-
Setup + system + application + rule set.
Name: KR application rule set.
Sequence rule
- Over application (automatic-save)
1 item (rule details: lineb4enablesave)
2 charges (rule details: chargesnoneenablesave)
3 freight (rule details: freightnoneenablesave)
Freezeenablesave.
Attach this “KR application rule set” in “KR transaction type”
Setup + transactions + transactions type:
Query: PN invoice % control F11.
Application rule set: KR application rule set (attach).
Create transaction:
Transaction transactions.
Source: KR Source KR invoice invoice num: 8075
Line: 100 * 100=Rs.10000/- tax: KR Adhoc
Click: freight
Total = Rs.11800
Item = Rs.10000
Freight= Rs.600
Tax = Rs.1200 (10000*12%)
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Enter receipt:
Receipt no: KR 8075 (create for our track)
Enter value: Rs.11600/- only
Apply
Query your transaction:8075
Details: item-Rs.10000 tax-Rs.1200 Freight= Rs.400 total-Rs.11600/-
Actual transaction value: Rs.11800/-
Revised & adjust value : Rs.11600/-
Balance Rs.200/- held in freight account.
Adjustments:
Invoice= Rs.10000
Receipt= Rs.9500/-
Due= Rs.500/-
Management plan to treat this Rs.500/- as bad debits or some other expenses. In oracle applications, write off this payment as adjustment (bad debits).
Setup +system + system options:
Miscellaneouswrite off limits per receipt =(-500) to 500
Save
(We can write off the short receipts up to Rs.500/- & write off excess receipt up to Rs.500
In real time, excess receipt will be adjusted later against new invoices)
We can see / set the approval limits in Setup + transactions + approval limits.
Setupreceiptsreceivable activities.
Name: KR Adjustments.
Type: Adjustments.
Activity GL ACCOUNT: 01-000-5230-0000-000
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Create transaction:
Source: KR Source KR invoice invoice num: 8076
Line: 100 * 100=Rs.10000/- tax: KR Adhoc (as required).
Enter receipt:
Receipt no :KR-8076(create – For our track)
Enter value : Rs.9600/- only
Click: Apply and select your invoice no: 8076
Click: Adjustments
Attach: KR Adjustments (-400)
(Automatic)
Go to receipt – Query: KR – 8076
Details: Original = 10000 receipt = 9600 Adjust =(-400)
Therefore, we have adjusted /write off that short receipt of Rs.400/-
This is for one invoice
Adjustments for multiple invoices: (In real time)
Create multiple transactions with the help of “copy to” in transaction window – Actions
Invoice no: 8077 = Rs.10/-
Complete
Action: Copy to (1 Day and 20 invoices) – save
Result: 20 invoices are created
Control > Adjustments > create > Auto adjustments
Remaining amount: Rs.0/- to Rs.10/-
Customer: KR customer
Activity: KR Adjustments (Attach)
Type: Invoice Adjustments (Attach as required)
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Reason: Write off (Attach as required)
Option: Generate Report only Adjust Related Invoices : Enable
Submit
View – Request – completed – view report
Report will be generated and we can preview our report
Result: Created 20 + 1 invoices have been write off (copy any one invoice no: 8088)
Now, create adjustments
Control > Adjustments > Create Auto Adjustments
Selection and parameters are same as above
Option: Create Adjustments Adjust Related invoices : Enable
(In the above result, we have copied one invoice number)
In transaction: Query – 8088%
Result:
Details: original – Rs.10 /- Adjusted – Rs.10/- Result: Rs.0/-
Receipt write off:
Setup > Receipts > Receivable activities
Name: KR Receipt write off
Type: Receipt write off
Activity GL account: 01-000-1270-0000-000
(Reserve for returns)
Save
In system options – Miscellaneous: Rs.500/- (positive) Excess write off limits
Save
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We can see the given approval limit in Transactions > Approval limit
Enter a transaction = 8091
Amount: Rs.10000/-
Complete
Enter a receipt = KR-8091
Amount: Rs.10500/-
Apply
First line: 8079 = Rs.10000
Select Enter short
Second line: Receipt write off = Rs.500 = KR Receipt write off
Select Balance Activity
Save
In transaction: Query – 8079%
Result:
Details: Original – Rs.10000/- Write off – Rs.500 (Auto generated)
Receipts write off: (For multiple Receipts)
Create some multiple receipts for Rs.500/-
Control > write off receipts
Unapplied Amount: Rs.500/-
Customer: KR customer
Parameters: KR Receipt write off (attach)
Option: Generate Report only Adjust Related invoices : Enable
Submit
View – Request – completed – view report
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Report will be generated and we can preview our report
Result: Excess receipt invoices has been write off against our customer
Again,
Control > Write off receipts
Unapplied Amount: Rs.500/-
Customer : KR customer
Parameters : KR Customer write off (attach)
Option : Create write off Adjust related invoices : Enable
Submit
View – Request – Completed – View Report
Report will be generated and we can preview our report
Result : Excess Receipt Invoices has been write off and copy one particular receipt (KR – 8095)
Receipt – Query : KR – 8095%
Details : Original : Rs.10000/- Write off : (-500) (automatic generated)
Adjustments : Excess / Shortage
Transaction Type – Over Application should be enable. Then only, we can adjust / Write off the excess/ short receipt transaction.
(Receiving shortage / Excess receipts)
Receipts Reversal:
If cheque has been bounced, we can reverse the entered receipt.
Receipts > Receipts summary
Query : KR %
Select one receipt – open KR 81 – Reverse (Reason & Category)
Click : Reverse
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(or)
In abroad, instead of preparing reversal entry they will create a debit memo against reversal receipt.
In receipt summary
Select one receipt – open (KR 82)
Select : Category & Reason
Enable : Debit memo reversed
Type : Debit Memo Reversal
Click : Reverse (Account No :1210)
In summary window – copy that receipt number (KR 82)
Transaction + Transaction
Query – Paste KR 82 % - Control F11
Class : Debit Memo (Automatically Generated)
Type : Debit Memo Reversed (Automatically Generated)
Now, new debit memo has been created
Entry : (As usual sale entry)
Receivable 10000
To revenue 10000
Miscellaneous Receipt:
If we receive any interest or miscellaneous income, we are in position to enter miscellaneous receipt.( entering a receipt for without customer name)
For example : Interest Invoice (Miscellaneous Receipt) = Rs.10000/-
Distribution set : (If required)
Set up > receipts > distribution sets
Name : KR Distribution SetORACLE FINANCIALS Oracle Financials Volume II
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% Account Description
50 01-110-7810-0000-000 Interest Income
50 01-120-7810-0000-000 Interest Income SAVE
Receivable Activity:
Set up > Receipts > Receivable activities
Name : KR Miscellaneous cash
Type : Miscellaneous cash
Active : Enable
GL Account Source : Distribution Set
Tax code source : None
Distribution Set : KR Distribution set (Attach)
SAVE
Receipts + Receipts
Receipt NO : KR Misc.01 (For our track)
Amount : Rs.10000/-
Receipt type : Miscellaneous
Payment method : KR Manual (After select receipt type)
Activity : KR Miscellaneous Cash (Attach)
Distribution set : Interest Income (Automatic)
Save
Entry : DR CR
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Confirmation 10000
Miscellaneous Cash 110 5000
Miscellaneous Cash 120 5000
(Here customer name is not required and this interest receipt is miscellaneous cash. Then we can go to Remittances – Clear / Risk eliminate for credit the payment in our account)
Charge back:
1st May, we have created a transaction with due date of 15th May. Suddenly , customer said the due for that transaction invoice is June 2nd& management also accepted .
Therefore, we have to create a new entry as per accepted due date (2nd June ) – Now, we can apply charge back function .(Reverse original entry & create a new entry as per new due date)
Set up + Transaction + Transaction Type
Name : KR charge back
Class : Charge back Enable : Open Receivables & post to GL
Sign: Positive
Save
Create an original transaction KR 85=Rs.10000/- (Due date – 15th May)
Create a receipt against this original transaction – apply – select original transaction
Click: Charge back
In receipts:
Receipt No : KR charge back 01
Amount: Rs.0/-
Apply
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Save
Click: charge back
Type : KR charge back
Due date : 15th May (old) –change to 2nd June (New)
Save
Copy charge back no : 100561
Transaction + Transactions
Query – Paste 100561% - F11
Result:
Charge back entry is created for Rs.10000/- with due date of June 2nd (New transaction Entry)
Entry : As per sales entry
Receipt batches:
For transaction source – Invoice Numbering & Batch numbering both should be defined
For Receipt source – Batch Numbering only required
Set up >Receipt > Receipt source
Name : KR receipt source
Receipt source type :Manual (Enable)
Receipt class : KR Manual (Attach)
Payment method : KR Manual Method (Attach)
Bank : KR current account (Attach)
Batch numbering : Automatic – Enable Last Number :4000
Save
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Receipts > Batches
Batch type : Manual – Regular
Batch source : KR Receipt Source (Attach)
Receipt class - payment method – Bank Name – Account Number : Generated Automatically
Control : Count – 3 amount – 3000
Save
(Here , status will be automatically changed based on steps followed – out of balance/closed)
Click : Receipts (For creating 3 number of receipt for Rs.30000/-
New
Create 1st Receipt : KR Receipt 11=Rs.10000 – Apply – Save
Create 2nd Receipt : KR Receipt 12=Rs.10000 – Apply – save
Status : out of balance
Create 3rd Receipt : KR Receipt 13=Rs.10000 – Apply – save
Status : Closed
If,
Batch type: Manual Quick
Auto cash rule set (requirement)
1. Apply to the oldest source first – Apply receipt against invoices on first cum first serve
2. Clear the Account – Apply receipt against group of invoices which is stanKRg as overdue
3. Clear post due invoices – Apply receipt against an old invoice and balance as overdue
4. Clear post due invoices grouped by payment term – Apply receipts against invoices grouped by payment term
5. Match payment with invoice – Apply receipt against actual invoice & result is Rs.0/-
Setup > Receipts > Auto cash rule set
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Name : KR Auto Cash Rule (create)
Discounts : None – No Discounts ; Earned only – Discount only on earned invoice receipt
Earned & unearned only – Discount on earned & unearned adjusted due invoices.
Automatic Matching Rule : Unapplied (status of balance amount)
Apply partial receipts : Enable
Auto cash Rule: (As required)
1 Apply to the oldest invoice first
2 Clear past due invoices
3 Clear past due invoices grouped by payment term
4 Clear the account
5 Match payment with invoice
Customer + Profile class
Query : KR% - control F11
KR profile class
Auto cash Rule set: KR Auto cash rule set (Attach)
Save- Update all profiles
Check whether all the profiles are updated or not in our KR customer:
Customer + Standard
Select: LOV – KR Customer – Find – ok
Profile transaction: KR Auto cash rule set (should be attached automatically)
Address – Open (site) – Profile: KR Auto cash rule set (should be attached automatically)
Save
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Batch source: KR Receipt source (Attach)
Receipt class – Payment Method – Bank Name – Account Number: Generated
Automatically
Control : Count: - 5Amount – 50000
Save
Here also, status will be automatically changed based on steps – out of balance/closed)
Click : Receipts (For creating 3 number of receipts for Rs.30000/-)
KR Quick 1 10000 Single KR Customer Apply to
KR Quick 2 10000 Multiple KR Customer Click: Multiple & Apply
KR Quick 3 10000 Auto cash KR Customer -
KR Quick 4 10000 On Account KR Customer -
KR Quick 5 10000 Unapplied KR Customer -
Click : Post Quick Cash
View – Request – Find – Status – Completed – View output
Copy : Receipt Batch No: 1015601
In that Receipt Batches window
Query – Batch Number : Paste 1015601
Click : Receipts – Select Auto Cash rule set receipt
This receipt automatically adjusted as defined in auto cash rule set
Automatic Receipts: (Direct Wire transfer from customer)
Requirements:
1. Customer Bank
2. Receipt classes – Bank details for automatic receipts from customer
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3. Define GL sequence
4. Customer standard – Attach: Customer Bank – Payment Method
5. Create Transaction (Invoice)
6. Automatic Batch
Receipts
1. Customer Bank
Setup + Receipts + Banks
Bank Name : KR Customer Bank (Client Bank) – Create
Branch Name : KR Customer Branch (Client Bank Branch) – Create
Click : Bank Accounts
Name : KR Customer EEFC Account – Create
Account use: Customer
Account No: 2558123456
Save
2. Receipt Class
Setup + Receipts + Receipts classes
Name: KR Automatic (create)
Select : Automatic – No Remittance – Directly
Payment method: KR Automatic (Create)
Automatic :
Disable: Receipt Inherit Transaction Numbers
Number of receipts Rule: One per invoice (select as required)
Receipt Maturity Date Rule: Earliest (select as required)
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Automatic print program : Prince Receipts Program (select as required)
Lead Days : 50 (For generating automatic receipt based on due dates – Fix high value only)
Click : Bank Accounts
Attach : KR Customer Bank – KR Customer Branch – KR Current Account – 0(Minimum Receipt)
GL ACCOUNT: Automatic generated & Claim investigation in last
Formatting Program: French Bills Receivable Remittance & Print Bank Remittances program Save
3. Define GL Sequence
Switch over to GL vision operations
Setup > Financials > Sequence > Define
Name : KR Rule (Create)
Application : Receivables (Attach)
From : 01-Jan-01
Type : Automatic (select)
Initial value : 500
Save
Setup > Financials > Sequence > Assign
Document
Application : Receivables (Attach)
Category : KR Automatic (Attach)
Set of books : Vision operations – USA (attach)
Method : Automatic (Attach)
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Assignment
Start date : 01-Jan-01
Sequence : KR Rule (Attach)
Save
4. Customer standard
Switch over to receivables vision operations
Customer + Standard
Select : LOV – KR customer –Find – Ok
Payment Method : KR Automatic (Attach) Enable : Primary
Bank Accounts : KR Customer EEFC Account & 2558123456 Enable : Primary
In Address – Go to site – open
Payment Method : KR Automatic (Attach) Enable : Primary
Bank Accounts : KR Customer EEFC Account & 2558123456 Enable : Primary
Save
5. Create Transactions:
Source : KR Source
Invoice : KR invoice
Payment Method : KR Immediate
Line : 100*100=10000
Complete
Action : Copy to -1 & 30 = 30 invoices has been created
6. Batches:
Receipts + Batches
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Batch Type : Automatic
Receipt class : KR Automatic (Attach)
Payment Method : KR Automatic (Attach)
Click : Create
Customer Name : KR customer
Enable : Approve
Ok
View – Request – Find – Status – Completed
Back to Receipt Batch window – Copy – Batch No:1053
Query this window – Select Automatic & paste 1053% - Control F11
Click : Format
View – Request – Find – Status – Completed
Back to Receipt Batch window – Click : Main – Select one receipt number : KR receipt 82
In Receipts + Receipts
Query – Paste ON Receipt 82%
Status : Cleared
This is what automatic receipt batches created based on customer direct wire transfer remittance.
Bills Receivable:
Bills receivable is a negotiable instrument between two parties
Drawer Drawee
Supplier – Drawer – Raises the bill
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Customer – Drawee – Accepts the bill
Supplier – Send Goods & BR Acceptance letter to – customer – collect BR Acceptance letter from customer – Submit- to our bank for collection of the bills receivable on maturity date against invoice of acceptance letter (Maturity date i.e. due date) – Customer wire money to our bank based on due date – Our banker receive the payment from our customer and close our BR correspondence.
1. Transaction type – BR
2. Transaction source
3. Assign Drawee - Customer
4. Receipt class
1. Transaction Type:
Setup + Transaction +Transaction Type
Name : KR BR
Class : Bills receivable
Sign : Positive Enable : Open Receivables & Post to GL
Date : 01-Jan-05 Print and open
Format program Name : French Bills Receivable
Enable : Signed
Save
2. Transaction Source:
Setup + Transaction + Source
Name : KR BR Source
Type : Manual
Description : KR BR Source
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Reference Field Default value : Interface_header_attribute 1
Save
3. Assign Drawee in Customer
Customer + Standard
Select : LOV – KR Customer – Find – Ok – Address (site) – open
Business purpose: Drawee Add)
Enable : Primary
Save
4. Receipt Class:
Setup + Receipt + Receipt Classes
Name: KR BR Receipt class
Creation Method: Bills receivable remittance (As required)
Remittance Method: Standard and Factoring (As required)
Clearance Method: By automatic clearing
Payment method: KR Manual
Effective Dates: 01-Jan-01
Enable: Receipt Inherit transaction numbers
Click: Bank Accounts
Bank Name: KR Bank (our Bank) Branch Name: KR Branch
Account Name: KR current Account
GL – Short Term Debt: Short Term Debt – Factoring
Claim investigation: Claim investigation
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Formatting Program: French bills Receivables Remittance & Print Bank Remittances program
Save
Bills Receivable + Transaction
1-Jun-06 – Invoice
10-Jun-06 – Bills Receivable Transaction
20-Jun-06 – Acceptance
28-Jun-06 – Maturity
Source: KR BR Source Maturity: 28-jun-06
Type: KR BR
Issue: 01-Jun-06
Main Drawee = KR customer (Invoice Raiser)
Click: Assignment – Select Transaction Invoice
Click: Complete – Accept
Save
Copy the generated bills receivable number: 2001
In portfolio management: Status – PenKRg
Bills Receivables + Remittances
Remittance Method: Standard (Select)
Receipt Class: KR BR Receipt Class (Automatic)
Payment Method: KR BR Automatic (Automatic)
Remittance: KR Bank (Invoice Raiser Bank)
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Maintain Remittance Batch Window
Select BR NO Type
Enable 2001 KR BR
(Automatic) (Select) (Automatic)
Action: Enable – Approve and format
View – Request – Find – Status – Competed
In portfolio management: Status – Standard Remitted
BR > Maturity & Risk Programs
Single Request
Name: Bills Receivable Maturity and Risk Program
Parameter: Maturity Date from & To : 28-May-06
Transaction Type – KR BR
Submit
View – Request – Find – Status – Competed – View Report – Copy the Receipt No : 2001
In portfolio management: Status – Closed
Receipt + Receipt
Query
Payment Method: KR%
Receipt No: 2001%
Control F11
Status: Remitted
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If Remittance Method : Factoring
Supplier – Send Goods & BR Acceptance Letter to – Customer – Collect BR Acceptance
Letter from customer Submit to our Bank to borrow money against the bills receivable before
maturity date (Before Maturity date i.e. before due date) Customer wire money to our bank based on due date – Our banker receives the payment from our customer and closes our BR
correspondence For this factoring remittance method banker will charge interest.
BR > Transaction
1-Jun-06-Invoice
10-Jun-06-Bills Receivable Transaction
20-Jun-06-Acceptance
28-Jun-06-Maturity
25-Jun-06-Remit
Source: KR BR Source Maturity: 28-Jun-06
Type: KR BR
Issue: 01-Jun-06
Main: Drawee = KR Customer (Invoice raiser)
Click: Assignment – Select Transaction Invoice
Click: Complete – Accept
Save
Copy the generated bills receivable number: 2002
In portfolio management: Status – penKRg
BR > Remittances
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Remittance Date : 25-Jun-06
Remittance Method: Factoring (select)
Receipt Class: KR BR Receipt Class (Automatic)
Payment method: KR BR Automatic (Automatic)
Remittance: KR Bank (Invoice Raiser Bank)
Click: Manual create
Maintain Remittance Batch window
Select BR NO Type Amount
Enable 2001 KR BR 10000
(Automatic) (Select) (Automatic) (Automatic)
Action: Enable – Approve and format
View – Request – Find – Status – Completed
In portfolio management: Status – Factored
BR > Maturity & Risk Programs
Single Request
Name: Bills Receivable Maturity and Risk program
Parameter: Maturity Date From & To : 28-May-06
Transaction Type – KR BR
Submit
View – Request – Find – Status – Competed – View Report – Copy the Receipt No: 2001
In Portfolio management: Status - Closed
After this function, one receipt will be generated automatically with status of “Risk”.
Then, we need to run a program and “eliminate the Risk”.
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Cross currency Transaction:
Invoice : AUD 10000
1 USD = 2 AUD
Therefore, Functional currency value = USD 5000
Enter a transaction = AUD User rate: 2
Line : 100*100=AUD 10000
Invoice no:8132
Complete
Details: AUD 10000 USD 5000
Entry:
Receivable 5000
Revenue 5000
Receipt in INR
Payment Method: KR Manual
Amount: INR 230,000 (USD 5000*Rs.46/-) Cross currency rate: 23
Apply: 8132 (Calculate manually based on Functional currency)
1 USD = 2 AUD (10000 AUD)
1 USD = Rs.46/- (5000 USD)
USD 5000 * Rs.43/- = Rs.230, 000/- Therefore 1AUD = Rs.23/-
Entry :
Confirmation 5000 230000
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Unapplied 5000 230000
Unapplied 5000 230000
Reciprocal Relationship:
A customer B customer
A customer can pay for B & B customer can pay for A = as we define)
A is parent, A can pay for B and B cannot be pay for A)
Customer + Standard
Name: KR New customer (Newly create)
Address: Open – Attach – KR city – KR state – KR country
Classification: Attach KR profile & KR payment method
Enter a transaction: Either for old or new customer (if reciprocal)
Here, we can enter KR invoice – KR customer (Bill to) – KR new customer (ship to)
(If parent and child)
Later on we feel that new customer is wrong
So to account merge – Do that Reciprocal /Parent (As required)
And delete that new customer
Then, we cannot create invoice for new customer
Collection Activities:
Setup > Collections > Aging Buckets
Name: KR Aging Bucket (create)
Type: 4 Bucket Aging (As required)
4 Bucket – Report for 4 periods; 7 bucket – Report for 4 periods;
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Credit snapshot – Particular customer balance report; Statement Aging – Report for 5 periods
1 Future -180 0 Future due
2 Paste Due 1 30 Past Due
3 Paste Due 31 60 Past Due
4 Paste Due 61 999 Past Due
Save
Collections + Aging
Attach your aging bucket & customer
It will show debtor – aging reports as we defined for KR customer
Customer Calls:
Collections > Customer calls
Attach : KR customer & KR collector
Response : Attach as required (will call back/ dispute amount)
Outcome : Attach as required (unable to contact / meeting scheduled)
For customer call if particular invoice – Click: Topics and perform
When follow up complete – collection + schedule
Enable : Follow up complete
Print documents:
Print documents > Statements
Option : Print statement / Reprint statements (As required)
Bucket : Statement
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Customer Name : KR customer
Cycle : Weekly / Monthly / Quarterly (as required)
Submit
If we want to send statement to customer periodically
Setup + Print + Statement Cycles
Name : KR periodic statement
Interval : Weekly/Monthly/Quarterly
Unit : Vision Operations 1
Date : Print statement period
Save
Dunning letters:
Set up + Print + Dunning letters
Name: KR dunning letter
Review Date: As scheduled
Message: As required for request to release the payment
Save
Print Document + Dunning letters
Single Request
Name: Dunning letter Generate
Parameters: As required
Submit
View – Request – Find – Status – Completed – View the Dunning Letter
AR Reconciliation:
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Before Transfer of AR Transaction to General Ledger (GL), we can reconcile the AR transactions
Control + Request + Run
Single Request
Name : AR Reconciliation Report
Parameters : Set of books Currency & GL date
Submit
View – Request – Find – Status – Completed – View the Dunning Letter (It’s not a Report)
Transfer to GL:
Interface + General Ledger
Single Request
Name: General Ledger Transfer program
Parameters: Start Date
To date (Post through Date)
Post in summary: If required – Yes (Else – No)
Run Journal Import : If required – Yes : Everything transfers and posted in GL
No: In GL – Import from AR and post the same
Submit
View – Request – Find – Status – Completed – View Report
Copy: Posting control ID Number (No: 60532)
Switch over to GL Responsibility
Journals + Enter
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Click: Find
In journal summary window – Source: AR Transaction reflected in the status of un-posted
Review journal – Check Funds – Reserve Funds – Post
Re – query: Status - Posted
MULTI-ORG
Profile (Types) Options
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1. GL Ledger Name (Site level: Unisys France S.A.S., Resp level: Unisys Sudamericana S.R.L.)
2. MO: Operating Unit ( Responsibility level : OU_ARG_Argentina)
3. MO: Security profile
4. HR: Security Profile (site level : Setup Business Group )
5. HR:Business Group (site level : Setup Business Group )
6. HR:User Type (Site level - HR User)
7. GL: Data Access Set (Site level: Unisys France S.A.S., Resp level: Unisys Sudamericana S.R.L.)
Create New Responsibility
Responsibility = System Administrator
1. Navigate to (N) Security > Responsibility > Define.
2. Enter the Responsibility Name: KR Assistant System Administrator
3. Select the Application: Application Object Library
4. Enter the Responsibility Key: KR_ASST_SYSADMIN
5. Enter the Description: Assistant System Administrator
6. Check Available From: Oracle Applications
7. Select the Data Group: Your Initials Data Group
8. Select the Data Group Application: Your Initials Custom Application
9. Select the Menu: Navigator Menu – System Administration GUI
10. Save your work.
Menus & Functions
Application Users
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E.g.) GL – Super user
- JNLS Submenus- Setups
Financial options
Payables Options Functions
Mandatory field’s required for Responsibilities:
1. Menu2. Data Group3. Request group (optional)
Profile options for proviKRg security:
1. Site level2. Application level Key ff If not reqd take tick mark3. User level 4. Sever level5. Org level
Validation Types
1. None – No security2. Independent – Only choose from List of values3. Dependent – Only dependent depend on other segments.
[ ] - White – Mean it has something [ ] – Grey – Nothing, can be added.
I. Menu Creation
Application > Menu
Menu : Suresh
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User Menu Name : Suresh Raja
Menu Type Des :
Seq Prompt
10 SR - GL GL - Super User
20 SR - AP AP - Navigate - GUI12
30 UK - SHRMS Navigator
II. Create Responsibilities
Security > Responsibility > Define
: ABCD Data Group
: Payable STD
: ABCD Payable
Payable reports only
Menu Suresh Raja Payables
Exclude Menus:
III. Create User:Suresh
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Assign Suresh Raja
Steps:
1. Create Responsibilities – AP, GL, AR, FA, HR, and CM.2. Create an Application user and attach responsibilities.
General Ledger – GL – Super userAccounts Payable – AP – Navigator – GUI12Accounts Receivable – AR – Navigator – GUI12HR – UK SHRMS Navigator- System Administrator.
3. Create a Business Group.- Login to HR Responsibility.- Create Business Group.
Navigation: Work Structure > Location : SR LOC
Address Style – US/UK
New Business Group:
Work structure > Organization > Description > New (A)
Name: SR org (BG)
Location: SR location (We Created)
Org classification: Business Group
(T) Others Business Group & Tab
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o Short name : SR BG
o Employee number generation : Automatic
o Application Number generation : Automatic
o Automatic
o Grade ff
o People gr.ff
o Job ff
o Cost allocation ff
o Position ff
o Competence ff
o United kingdom
o GBP
o 1.1.12
Define Ledger (SOB)
Create Ledger , GL resp
Switch Resp
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Go to HR resp
WS > Org > Despriciption
Create Legal Entities:
SR legal entity
Class: GRE/ Legal Entity.
Others – Legal entity accounting
Tab
Attach SOB – SR SOB.(in 11i)
Create Operating Unit
Classify
Operating Unit : Operating Unit
Others operating unit information
Tab – Legal entity SR LE Attach.
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System Administrator
Next step: Assign Responsibility to legal entity
SR. Responsibility
System Administrator > Profile > system.
Tick Responsibility : SR GL
Profile : GL/Set of Books name
Press F1:
Profile: MO% operating Unit
Attach SROU
Press F11:
HR: Security profile: SR BG
Press F11:
HR user type: HR with payroll user
View > Request with
Report: Replicate seed data
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: SR – Operating unit
SUBMIT
Multiorg set up validation report
Menu
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Logout and login as KR user
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Payables
1a Create Responsibility: Payables Inquiry
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1 Data group name Standard
2Data group Application Payables
3 Menu AP_NAVIGATE_INQUIRY_GUI12
4 Responsibility Key PAYABLES_INQUIRY
5 Request groups Payables Reports only
6 Application Payables
b Create Menu
Seq Prompt Submenu Function Description
1 Invoices AP_INVOICES_INQUIRY_GUI12 View Invoices
2 Payments AP_PAYMENTS_INQUIRY_GUI12 View Payments
3 Accounting AP_ACCOUNTING_INQUIRY_GUI12 View Accounting
4 Suppliers AP_APXVDMVD_MENU View Suppliers Suppliers Inquiry
5 Other FND_OTHER 4.0 Other
6 View Supplier Information
c Create Function
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2a Create Responsibility: Payables Manager
Data group name Standard
Data group Application Payables
Menu AP_NAVIGATE_GUI12
Responsibility Key PAYABLES_MANAGER
Request groups All Reports
Application Payables
b Create Menu
Seq Prompt Submenu Function Description
5 AP_INVOICE_GATEWAY_GUI12 Maintain Quick Invoices
10 Invoices AP_INVOICES_GUI12 Maintain Invoices
15 Payments AP_PAYMENTS_GUI12 Maintain Payments
20 Accounting AP_ACCOUNTING_GUI12 Maintain Accounting
25 Suppliers AP_SUPPLIERS_GUI12 Maintain Suppliers
30 Employees AP_EMPLOYEES_GUI12 Maintain Employees
35 Credit Cards AP_MAINTAIN_CREDIT_CARDS_GUI12 Maintain Credit Cards
40 Setup AP_SETUP_GUI12 Setup
45 Workflow AP_WORKFLOW_GUI12 Workflow
50 Other FND_OTHER 4.0 Other
55 AZN_PR_PAYABLES Accounts Payable Processes in Graphical Process Navigator
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60 AP_PO_VIEW_PURCHASE_ORDERS_GUI
65 Bank Account Access: Supplier Assignments
70 AP_POS_INV
75 Supplier Information Management (Buyer View)
80 View Supplier Information
85 CE Bank Home Page Menu
90 CE Bank Search Home Page Menu
95 PO Order Tab
100 CE Bank Account View - View Only
105 View Payment Page
c Create Function
3a Create Responsibility: Payables Requests
1 Data group name Standard
2Data group Application Payables
3 Menu Payables Requests(AP_PAYABLES_REQUESTS)
4 Responsibility Key AP_PAYABLES_REQUESTS_RESP
5 Request groups All Reports
6 Application Payables
Seq Prompt Submenu Function Description
1 Invoices Invoice Actions/Review Page
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1a Create Responsibility: Receivables Inquiry
1 Responsibility Key RECEIVABLES INQUIRY
2 Data group name Standard
3 Data group Application Receivables
4 Menu AR_NAVIGATE_INQUIRY_GUI
5 Request groups Receivables Reports Only
6 Application Receivables
1b Create Menu
Menu AR_NAVIGATE_INQUIRY_GUI
Seq Prompt Submenu Function
1 Transactions AR_TRANSACTIONS_VIEW
2 Receipts AR_RECEIPTS_VIEW
3 Collections AR_COLLECTIONS_VIEW
4 Customers AR_CUSTOMERS_VIEW
5 Control AR_CONTROL_GUI
6 Accounting Subledger Accounting Functions
7 Activities
17 Control AR_CONTROL_INQUIRY_ONLY
24 Accounting SLA: User Main Menu
40 XLA_SL_DRILLDOWN
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2a Create Responsibility: Receivables Manager
1 Responsibility Key RECEIVABLES_MANAGER
2 Data group name Standard
3 Data group Application Receivables
4 Menu AR_NAVIGATE_GUI
5 Request groups Receivables All
6 Application Receivables
2b Menu Exclusions
Type Name Description
Menu AZN_PR_RECEIVABLESProcess Navigator Menu for Accounts Receivable Processes
2c Menu AR_NAVIGATE_GUI
Seq Prompt Submenu Function
1 Transactions AR_TRANSACTIONS_GUI
2 Receipts AR_RECEIPTS_GUI
3 Bills Receivable AR_BILLS_RECEIVABLE_GUI
4 Collections AR_COLLECTIONS_GUI
5 Customers AR_CUSTOMERS_GUI
6 Setup AR_SETUP_GUI
7 Reports AR_REPORTS_GUI
8 Print Documents AR_PRINT_GUI
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9 Interfaces AR_INTERFACE_GUI
10 Control AR_CONTROL_GUI
11 XLA: View Accounting Lines
12 AZN_PR_RECEIVABLES
13 Notifications WorkFlow Notifications
14 Credit Management Credit Management Programs
15 Inquiry AR_INQUIRY_GUI
16 iReceivables iReceivables Internal Page
17 Account Details Collections: Subfunctions Account Details
18 Render Credit Card Error Handling Buttons
22 Activities
23 Payer Payment Details Region
24 Late Charges AR_LATE_CHARGES_GUI
90 Unisys Invoice Consolidation Unisys AR Invoice Consolidation Form
116 Setup Merge Dictionary Setup Merge Dictionary
125 XLA_SL_DRILLDOWN
132 Customer SubMenu
149 Bill Management: Real Preview
152 Customers AR_CUSTOMERS_VIEW
167 Receivables
3a Create Responsibility: Receivables Operations Analysis
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Application Financial Intelligence
1 Responsibility Key FII_OBIEE_AR_RESP
2 Data group name Standard
3 Data group Application Applications BIS
4 Menu Receivables Operations Analysis Catalog
5 Request groups DBI Requests and Reports
6 Application Applications BIS
3b Menu Receivables Operations Analysis Catalog
Seq Prompt Submenu Function
5Receivables Operations Analysis Catalog Receivables Operations Analysis Catalog
10 Receivables Operations Analysis Subject Area
4a Create Responsibility: Receivables Archive and Purge
1 Responsibility Key RECEIVABLES_ARCHIVE_AND_PURGE
2 Data group name Standard
3 Data group Application Receivables
4 Menu AR_ARCHIVE_PURGE
5 Request groups Archive and Purge
6 Application Receivables
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4b Menu AR_ARCHIVE_PURGE
Seq Prompt Submenu Function
1 Archive and Purge AR Archive and Purge
2 Requests Concurrent Requests: View All (User Mode)
Functions
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1a Create Responsibility: General Ledger Super User
1Responsibility Key
GENERAL_LEDGER_SUPER_USER
2 Data group name Standard
3 Data group General Ledger
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Application
4 Menu GL_SUPERUSER
5 Request groups GL Concurrent Program Group
6 Application General Ledger
1b Create Menu
Menu GL_SUPERUSER
Seq Prompt Submenu Function Description
1 Journals GL_SU_JOURNAL Enter, generate, and post actual and encumbrance journals
2 Budgets GL_SU_BUDGET Define, enter, and generate budgets
3 Inquiry GL_SU_INQUIRY Inquire on balances and journals
4 Currency GL_SU_CURRENCY Revalue and translate balances
5Consolidation GL_SU_CONSOLIDATION
Define mappings and eliminations, transfer data, eliminate and monitor consolidation process flows
6 Reports GL_SU_REPORT Define and request reports
7 Setup GL_SU_SETUP Set up system
8 Other GL_SU_MANAGER View concurrent requests, notifications, and set profile options
9 AZN_PR_GL GL Process Navigator
10 GL_DAS_HOME_PAGE
11
GL_CRM_HOME_PAGE_MENU
12
Workflow Guest Self-Service Monitor Application
13
Definition Access Sets
100 Query Valid Values UGL_MGR_SETUP
105 Unisys TRC Form Unisys GL Unisys TRC Form
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transaction db form
2a Create Responsibility: General Ledger User
1 Responsibility Key GENERAL_LEDGER_USER
2 Data group name Standard
3 Data group Application General Ledger
4 Menu GL_USER
5 Request groups
6 Application
1b Create Menu
Menu GL_USER
Seq Prompt Submenu Function Description
1 Journals GL_U_JOURNAL Enter actual journals
2 Reports GL_U_REPORT Request reports and inquire on balances and journals
3 Encumbrance GL_U_ENCUMBRANCE Enter and inquire on encumbrance journals
4 Other GL_SU_MANAGER View concurrent requests, notifications, and set profile options
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Function
ORACLE FINANCIALS Oracle Financials Volume II
Page 230 of 230
ORACLE FINANCIALS Oracle Financials Volume II