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Flow of Accounting entries in Oracle Applications By Sivakumar Ganesan

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Presentation on theme: "Flow of Accounting entries in Oracle Applications By Sivakumar Ganesan"— Presentation transcript:

1 Flow of Accounting entries in Oracle Applications By Sivakumar Ganesan

2 Agenda Understanding the Accounting Flow in Oracle ApplicationsUnderstanding the Accounting Flow in Oracle Applications Transaction FlowTransaction Flow Modules CoveredModules Covered Set up required in Oracle ApplicationsSet up required in Oracle Applications Defaulting AccountsDefaulting Accounts Posting to General Ledger from Sub-LedgerPosting to General Ledger from Sub-Ledger Posting in General LedgerPosting in General Ledger Viewing the Trial BalanceViewing the Trial Balance

3 Understanding the flow of Accounting in Oracle Applications Cost Mgmt Cash Mgmt General Ledger Purchasing Accounting Engine Assets Payables Receivables Projects Interfaces with GL Other Legacy Sources SAP

4 Transaction Flow Create Opening Balances in General ledger and SubledgerCreate Opening Balances in General ledger and Subledger Place Purchase orderPlace Purchase order Receive the Materials into StoresReceive the Materials into Stores Receive the Supplier Invoice from SupplierReceive the Supplier Invoice from Supplier Match the Supplier invoice with PO and make PaymentMatch the Supplier invoice with PO and make Payment Issue Materials to ProductionIssue Materials to Production Complete the Production Order and Build InventoryComplete the Production Order and Build Inventory Ship the Material to CustomerShip the Material to Customer Raise invoice on CustomerRaise invoice on Customer Receive Cash from CustomerReceive Cash from Customer Reconcile the Payment and Receipt in Cash ManagementReconcile the Payment and Receipt in Cash Management Post Sub Ledger Transactions into GLPost Sub Ledger Transactions into GL Run Trial Balance and Financial Statements (Profit & Loss Account & Balance SheetRun Trial Balance and Financial Statements (Profit & Loss Account & Balance Sheet

5 Modules Covered Oracle PurchasingOracle Purchasing Oracle PayablesOracle Payables Oracle InventoryOracle Inventory Oracle Manufacturing (WIP Accounting)Oracle Manufacturing (WIP Accounting) Oracle Order ManagementOracle Order Management Oracle ReceivablesOracle Receivables Oracle Cash ManagementOracle Cash Management Oracle General LedgerOracle General Ledger

6 Cost Calculation FG/Sub Assembly Purchased Item/ Sub Assembly Cost Routing Operations Department Resources Rate Usage Rate X Usage Operations Cost Men, Money, Machine Production / Service Departments Item Cost Total Cost

7 Set up Required in Oracle Applications Each Module has a Parameter screen or Controlling Screen through which the Accounts are DefaultingEach Module has a Parameter screen or Controlling Screen through which the Accounts are Defaulting –Ex (Inventory Organization for Materials in Inventory Module, Receiving options for Inventory Receipt in Purchasing Module, Financial Options for Payables) There are other places also where we can define the Accounts and there is an inbuilt hierarchy within the Applications as to where from the Accounts need to be defaultedThere are other places also where we can define the Accounts and there is an inbuilt hierarchy within the Applications as to where from the Accounts need to be defaulted Each Module Needs to set the Accounts for an Accounting Event Happening in that ModuleEach Module Needs to set the Accounts for an Accounting Event Happening in that Module

8 Defaulting Accounts in Case of Purchasing

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10 Posting to General Ledger from Sub-Ledger Sub-Ledger Accounting Entries are Transferred to General Ledger Interface table through the Concurrent ProgramsSub-Ledger Accounting Entries are Transferred to General Ledger Interface table through the Concurrent Programs We can schedule the concurrent Process to Transfer Data to GL instead of manually running the concurrent Programs.We can schedule the concurrent Process to Transfer Data to GL instead of manually running the concurrent Programs. You can run the Process Daily, Weekly, MonthlyYou can run the Process Daily, Weekly, Monthly You can transfer the data either inYou can transfer the data either in –Summary or (Total Transaction for an Account Combination per day) –Detail (Each Transaction)

11 Posting in General Ledger This Process Transfers Data from GL Interface Tables to GL Main TablesThis Process Transfers Data from GL Interface Tables to GL Main Tables –(i.e) From GL_JE_INTERFACE table to GL_JE_HEADERS and GL_JE_LINES Once the Data is Posted No further changes to the Data is permittedOnce the Data is Posted No further changes to the Data is permitted

12 Accounting Events – Oracle Purchasing Oracle PurchasingOracle Purchasing  Inventory Accruals  Transfer to Sub Inventory  Purchase Price Variance  Invoice Price Variance (IPV) and Exchange Rate Variance  Return to Supplier From Receipt of Materials  Inter-organization Transfer

13 Accounting Events – Oracle Payables InvoicesInvoices  Invoice  Invoice adjustment  Invoice cancellation  Prepayment application  Prepayment un-application Payments Payments  Payment  Future dated payment maturity  Payment adjustment  Payment cancellation  Payment clearing  Payment un-clearing

14 Accounting Events – Manufacturing (WIP) Oracle InventoryOracle Inventory  Material Transfer from Stores to WIP  WIP Completions and Material Consumption Entry  Operations Completion Entry  Finished Goods Stock Creation Entry  Inter-Org Transfer  Sub-Inventory Transfer

15 Accounting Events – Order Management Order ManagementOrder Management  Cost of Goods Sold Entry in Inventory Module

16 Accounting Events – Oracle Receivables TransactionsTransactions  Invoices  Debit Memos  Commitments  Invoices Against a Deposit  Invoice Against guarantee  Credit Memos  On Account Credit Memo

17 Accounting Events – Oracle Receivables ReceiptsReceipts  Unapplied Receipts  On account Receipt  Applied Receipt  Reverse Receipt  Charge back  Adjustments  Miscellaneous Receipts  Bills Receivables

18 Accounting Event – Cash Management Oracle Cash ManagementOracle Cash Management  Cash Receipt Clearing  Cash Payment Clearing  Journals  Open Interface

19 Accounting Event – General Ledger Oracle General LedgerOracle General Ledger  Journal Entries Created from Sub Ledger  Manual Journal Entries created in GL  Inter-Company Transfer Entries  Translation entries  Revaluation Entries

20 Flow of Accounting in oracle Applications Case Study


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