Oracle Financials Notes

7/27/2019 Oracle Financials Notes

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Multiple Reporting Currencies

The Multiple Reporting Currencies (MRC) is the set of unique feature embedded in Oracleapplications, which allows you to report on and maintain accounting at the transaction level inmore than one functional currency. MRC is based on the Multi-Org Architecture, and is asignificant aspect of a globalization strategy.

The primary functional currency is the currency you use to record transactions and maintain your accounting data within the Oracle E-Business Suite. In the primary set of books, the functionalcurrency is always the primary functional currency. Usually, the primary functional currency is thecurrency in which you perform most of your business transactions, and the one you use for legalreporting.

A reporting set of books is a financial reporting entity associated with a primary set of books.While the reporting set of books has the same chart of accounts and accounting calendar as theprimary set of books, its use of a different functional currency (reporting functional currency)allows you to report in a different functional currency than that of your primary set of books.You must define a separate set of books for each of your reporting functional currencies. By usingMRC concept we can maintain up to Eight Reporting Set Of Books.

Multi - Org Setup

Steps and Navigations

1. Login as sysadmin responsibility

2. Define required responsibilitiesNavigation: security->responsibility->define

3. Define user and assign responsibilities to the user.Navi: Security->user-> define.

4. Login as GL Responsibility

5. Define accounting flexfieldNavi: setup->financials->flexfield->key->segments
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9. Run the Program Pay on receipt auto invoice.(Which Generate Invoice Automatically)

10. View the Status of the program and refresh if not completed.

11. Go to Payables: InvoiceEntry InvoiceQuery with the Invoice Num ERS%
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12. Validate the Invoice .After Validate Enable the creating Accounting check box.

13.See The Account

14. Enable the check box Pay in full. And Pres ok.
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15. Select the Bank and Go to Actions

16. Enable the check box Create Accounting and press ok.

17. See the Account Created.
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21. Go to Payables: PaymentEntryPaymentQuery with Payment Date

22. Go to actions, enable Create Accounting and press ok.

23. See the Account created.
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24. Run: Payables Transfer to General Ledger.

25.View the Request status and refers if not completed.

26.Got to GL:JournalImportRun
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27.View the request status and refers if not completed.

28. Go to JournalsEnter .Find with Source as Payables.
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Payables Reports Listing
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Accounts Payables Frequently Asked Questions

1. What are the types of invoices?2. What is difference between debit memo and credit memo?3. What is meant by with-holding tax invoice?
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4. What are the mandatory setups in AP?5. What is the difference between PO default and quick match?6. Use of recurring invoice?7. Steps for payment batch?8. Purpose of Payable invoice open interface?9. Payable open interface import? (Expense Report Import)10. Multi Currency payments?11. Can we implement MRC at Payables?12. Use of Distribution set?13. Accounting Methods?14. Use of automatic offset method?15. What does the Unaccounted Transaction Sweep Report do?16. What reports should I run before closing the period?17. What is the program to transfer data from AP to GL?18. What is meant by void payments?19. What are the types of journal categories available in the AP?20. What is meant by matching and what are the types of matchings available?21. Types of Prepayments? And difference between them?22. What is a Hold and Release23. How to approve n no. of invoices24. What is Zero-Payment in AP25. What is Proxima Payment Terms?26. What are the tables associated with Invoice?27. Which interface tables are used for Invoice Import?28. What is 2 way, 3 way and 4 way matching?29. What is Interest Invoice and how it can be created?30. How many key flexfields are there in Payables?31. Can you cancel the invoice? If yes, explain?32. What is pay date basis?33. What is terms date basis?34. What is the report used to identify duplicate suppliers?35. Difference between header level tax calculation and line level tax calculation?36. What is meant by accrual write off?

37. Difference between quick payment and manual payment?38. Use of Future dated payments?39. Tell me steps for Period closing Process in AP?40. Payable And Financial options?41. What is meant by third party payments?42. How to transfer funds between your internal banks?43. Invoice Approval Process?44. Can I find out which invoices are matched to a PO?45. What is Intercompany Invoicing?46. ERS Invoice means?47. Use of Pay on receipt auto invoice?48. What is meant by RTS transactions?49. What are the steps to define a Bank?

50. Payment Methods?

Difference between multiple databases, multiple instances, and multiple installations?In Oracle database terminology, an instance is the combination of background processes andmemory structures that allow the user to access data in an Oracle database. In an applicationscontext, instance and database are often used interchangeably. Multiple installations, or "installs"means that Oracle Applications are installed multiple times on a single database. Multipledatabases or instances refer to a scenario in which there may exist numerous databases, eachwith one or more installations and implementations of the Oracle Applications.


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that vary from period to period. For example, calculate commotion to sales representative basedon the sales of the month.

Purchasing FAQs

1. Define Requisition?

2. What are the types of requisitions?3. What is the use of requisition template?4. What is the procedure for requisition import?5. What is meant by RFQ?6. What are the types of RFQS?7. What is meant by quotation and quotation analysis?8. What is meant my PO?9. What are the types of PO?10. What are the types of receipts?11. What is meant by receipt routing?12. What is the purpose of receiving transactions?13. What is meant by receipt routing? Types?14. What is the use of auto create?

15. What is meant by pay on receipt auto invoice?16. What do you mean by controlling buyers workload?17. What is matching? What are the various methods of matching?18. What is the use of defining security hierarchy?19. What is the difference between accrue at period end and accrue on receipt?20. Why are expenses items typically accrued at period end, and why are inventory items alwaysaccrued on receipt?

Types Of Purchase Orders

From the below picture you can find the diffrence between purchase orders.
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key flexfield
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key flexfield is a field made up of segments, where each segment has both a value and ameaning. You can think of a key flexfield as an intelligent field that your business can use tostore information represented as codes.

Most organizations use codes made up of meaningful segments to identify general ledger accounts, part numbers, and other business entities. Each segment of the code can represent acharacteristic of the entity. For example, consider an account number for a bank. A complete

bank number may consists of various segments like the country code, area code, city code,branch code, account type, account number etc

What is SQL*Loader and what is it used for?

SQL*Loader is a bulk loader utility used for moving data from external files into the Oracledatabase. Its syntax is similar to that of the DB2 Load utility, but comes with moreoptions. SQL*Loader supports various load formats, selective loading, and multi-table loads

Introduction to TOAD

TOAD is powerful development tool to build an advanced SQL/PLSQL . Using TOAD,developers can build and test PL/SQL packages, procedures, triggers andfunctions. You can create and edit database tables, views, indexes, constraintsand users. Simply, the GUI object browser provide quick access to databaseobject.
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Project Implementation Model

Period closing Process for Payables

Period closing Process for PayablesYou cannot close a period in Payables if any of the following conditions exist:o Outstanding payment batches. Confirm or cancel all incomplete payment batches.o Future dated payments for which the Maturity Date is within the period but that still have astatus of Issued.o Unaccounted transactions. Submit the Payables Accounting Process to account for transactions, or submit the Unaccounted Transaction Sweep to move any remaining unaccountedtransactions from one period to another.o Accounted transactions that have not been transferred to general ledger. Submit the PayablesTransfer to General Ledger process to transfer accounting entries.

To complete the close process in Payables:1. Validate all invoices.Run Invoice Validation Concurrent program.2. Confirm or cancel all incomplete payment batches.

3. If you use future dated payments, submit the Update Matured Future Dated Payment StatusProgram. This will update the status of matured future dated payments to Negotiable so you canaccount for them.

4. Resolve all unaccounted transactions.Submit the Payables Accounting Process to account for all unaccounted transactions. Review theUnaccounted Transactions Report. Review any unaccounted transactions and correct data asnecessary.

Then resubmit the Payables Accounting Process to account for transactions you corrected. Or move any unresolved accounting transaction exceptions to another period (optional).o Payables Accounting Process.

o Submit the Unaccounted Transactions Sweep Program.5. Transfer invoices and payments to the General Ledger and resolve any problems you see onthe output report:o Payables Transfer to General Ledger Program.6. In the Control Payables Periods window, close the period in Payables.o Controlling the Status of Payables Periods.7. Reconcile Payables activity for the period. You will need the following reports:o Accounts Payable Trial Balance Report (this period and last period).o Posted Invoice Register.o Posted Payment Register.
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8. If you use Oracle Purchasing, accrue uninvoiced receipts.

9. If you use Oracle Assets, run the Mass Additions Create Program transfer capital invoice linedistributions from Oracle Payables to Oracle Assets.

10. Post journal entries to the general ledger and reconcile the trial balance to the GeneralLedger.

Data Load

Data load is the tool to Load data into any application running in Windows, and contains extrafunctionality for loading data and setup into Oracle Applications. Means we can load data through

front end forms. To load data using Data Load you setup Data Load to load into the forms and theforms load the data into your system. Non technical users can also use this tool.

SOX

The Sarbanes-Oxley Act of 2002, also known as the Public Company Accounting Reform andInvestor Protection Act of 2002 and commonly called SOx or Sarbox; is a United States federallaw enacted on July 30, 2002,To improve quality and transparency in financial reporting andindependent audits and accounting services for public companies, to create a Public Company

Accounting Oversight Board, to enhance the standard setting process for accounting practices, tostrengthen the independence of firms that audit public companies, to increase corporateresponsibility and the usefulness of corporate financial disclosure, to protect the objectivity andindependence of securities analysts, to improve Securities and Exchange Commission resources

and oversight, and for other purposes

Note On Indian localization
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Oracle Applications was developed as a Global product.Because of this reason it does notsupported by some acts like customs,central excise,vat,cst...etc which are mandatory accordingto Indian Laws.

All other contries are also having some contry specific requirements. To meet the aboverequirements Oracle developes software named patches.We can add this patches to the baseproduct of the oracle applications.

Indian Localization is also one patch which meets the contry specific requirements.

What is India Localization Product?

India Localization is a solution built over Oracle E-Business Suite, Oracle's e-businessapplications software product, that provides Clients in India with the most comprehensive solutionto comply with the India specific tax requirements as specified by Central Excise, Customs, SalesTax and VAT, and Income Tax, (to the extent of tax deduction at source and generation of Depreciation Schedule for fixed assets). India Localization product also provides valuableinformation that can be used for statutory and management reporting.

What Does India Localization Product Do?The product uses its own tax engine, for handling taxes applicable across 'Procure to Pay' and'Order to Cash' transactions.

In India Localization, taxes are defaulted based on the pre-determined setup (Tax Defaultation).Tax amounts are calculated based on precedence such as transaction base value, tax on tax, or assessable value as specified by tax authority (Tax Calculation). The Tax Amount is consideredfor inventory valuation, recoverability and accounting based on the pre-determined recoverabilityand accounting rules (Tax Accounting and Recoverability). Details of recoverable tax amount arerecorded as part of the repository (Tax Recording). This information can further be used tocalculate the final tax liability arising on settlement at the end of the tax period (Tax Settlement)and for statutory reporting (Tax Reporting).

Components of India Localization ProductTax DefaultationTax Calculation and Recovery

Accounting for India Localization TaxesRecording and Reporting Tax Information

Form personalization

Introduction to Form personalization

Form personalization is a declarative feature that alters the look and behavior of the oracle formswith out changing base code. This concept was introduced in the release 11.5.10. All E-Businesssuit forms can be personalized

By using form personalization you can: 1. Display your own terminology.2. Stream lines the screen interaction.3. Implement security policies.4. Add your own validation and error messages.

There are some limitations:1. You can only change what oracle forms allows to be changed at run time.2. You can only respond to limited trigger events only.
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3. Your changes may be overridden by oracle base code.

AIM Documents

As a functional consultant we should know about AIM. Please find the AIM

Documents list below.

Business Process Architecture (BP)BP.010 Define Business and Process StrategyBP.020 Catalog and Analyze Potential ChangesBP.030 Determine Data Gathering RequirementsBP.040 Develop Current Process ModelBP.050 Review Leading PracticesBP.060 Develop High-Level Process VisionBP.070 Develop High-Level Process DesignBP.080 Develop Future Process ModelBP.090 Document Business Procedure

Business Requirements Definition (RD)RD.010 Identify Current Financial and Operating StructureRD.020 Conduct Current Business BaselineRD.030 Establish Process and Mapping SummaryRD.040 Gather Business Volumes and MetricsRD.050 Gather Business RequirementsRD.060 Determine Audit and Control RequirementsRD.070 Identify Business Availability RequirementsRD.080 Identify Reporting and Information Access Requirements

Business Requirements MappingBR.010 Analyze High-Level Gaps

BR.020 Prepare mapping environmentBR.030 Map Business requirementsBR.040 Map Business DataBR.050 Conduct Integration Fit AnalysisBR.060 Create Information ModelBR.070 Create Reporting Fit AnalysisBR.080 Test Business SolutionsBR.090 Confirm Integrated Business SolutionsBR.100 Define Applications SetupBR.110 Define security Profiles

Application and Technical Architecture (TA)TA.010 Define Architecture Requirements and StrategyTA.020 Identify Current Technical ArchitectureTA.030 Develop Preliminary Conceptual ArchitectureTA.040 Define Application ArchitectureTA.050 Define System Availability StrategyTA.060 Define Reporting and Information Access StrategyTA.070 Revise Conceptual ArchitectureTA.080 Define Application Security ArchitectureTA.090 Define Application and Database Server ArchitectureTA.100 Define and Propose Architecture SubsystemsTA.110 Define System Capacity Plan
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TE.110 Perform system testTE.120 Perform systems integration testTE.130 Perform Acceptance test

PERFORMACE TESTING(PT)PT.010 - Define Performance Testing StrategyPT.020 - Identify Performance Test ScenariosPT.030 - Identify Performance Test TransactionPT.040 - Create Performance Test ScriptsPT.050 - Design Performance Test Transaction ProgramsPT.060 - Design Performance Test DataPT.070 - Design Test Database Load ProgramsPT.080 - Create Performance Test TransactionProgramsPT.090 - Create Test Database Load ProgramsPT.100 - Construct Performance Test DatabasePT.110 - Prepare Performance Test EnvironmentPT.120 - Execute Performance Test

Adoption and Learning (AP) AP.010 - Define Executive Project Strategy AP.020 - Conduct Initial Project Team Orientation AP.030 - Develop Project Team Learning Plan AP.040 - Prepare Project Team Learning Environment AP.050 - Conduct Project Team Learning Events AP.060 - Develop Business Unit ManagersReadiness Plan AP.070 - Develop Project Readiness Roadmap AP.080 - Develop and Execute CommunicationCampaign AP.090 - Develop Managers Readiness Plan AP.100 - Identify Business Process Impact onOrganization AP.110 - Align Human Performance SupportSystems AP.120 - Align Information Technology Groups AP.130 - Conduct User Learning Needs Analysis AP.140 - Develop User Learning Plan

AP.150 - Develop User Learningware AP.160 - Prepare User Learning Environment AP.170 - Conduct User Learning Events AP.180 - Conduct Effectiveness Assessment

Production Migration (PM)PM.010 - Define Transition StrategyPM.020 - Design Production Support InfrastructurePM.030 - Develop Transition and Contingency PlanPM.040 - Prepare Production EnvironmentPM.050 - Set Up ApplicationsPM.060 - Implement Production Support InfrastructurePM.070 - Verify Production Readiness

PM.080 - Begin ProductionPM.090 - Measure System PerformancePM.100 - Maintain SystemPM.110 - Refine Production SystemPM.120 - Decommission Former SystemsPM.130 - Propose Future Business DirectionPM.140 - Propose Future Technical Direction


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Oracle Implementation Methodalagy

SUMMARY NOTES ON AIM

Application Implementation Method is a provan approach, which specifies all the activities whichare required to implement oracle applications successfully.

The scope of the AIM is enterprise wide .

There are eleven processes of implementation.

1. Business Process Architecture[BP]

This phase explainsExisting business practicesCatalog change practices

Leading practicesFuture practices

2. Business Requirement Definition[RD]

This phase explains about theBase line questionnaire andThe gathering of information.

3. Business Requirement Mapping[BR]

In this phase we can match all the requirements of business with the standard functionality of theoracle applications.

If all the requirements match with oracle standard (with out customization) functionality then, it iscalled as vanilla implementation).

4. Application and Technical Architecture [TA]

Explains the infrastructure requirements to implement oracle applications.For example:desktopssoftwarehardwarepeople...etc

5. Build and Module Design[MD]

In this phase concentrate on developing the new functionality which is required by the client.This is called customization.In this phase explains how to design a forms, database and reports...

6. Data Conversion:[CV]
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Is the process of converting or transferring the data from legacy system to oracle applications?This is called as data migration.Ex: transferring the closing balances of the previous year as an opening balances to next year.

7. Documentation:[DO]In this phase we have to prepare module wise user guides and implementation manuals whichhelps in the implementation.

8. Business System Testing:[TE]

A process of validating the setups and the functionality by a tester to certify its status is alliedbusiness system testing. It is done by a functional consultant.

9. Performance Testing:[PT]

Performance testing means evaluation of transaction saving time, transaction retrieval times. It isdone by a technical team.

10; Adoption and Learning.[AP]

This phase explains about the removal of the legacy system of the client. The entire user shouldbe trained with new oracle applications. In this phase we have to prepare user manuals.

11. Production Migration[PM]

A process of decommissioning of legacy system and the usage of new oracle application systembegins in this phase.

Oracle Financials Notes

Documents

Transcript of Oracle Financials Notes