-1- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Oracle E-Business Suite R12.1 General Ledger Overview Training Courseware

-2- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Safe Harbor Statement

-3- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Use of this Site (“Site”) or Materials constitutes agreement with the following terms and conditions: 1. Oracle Corporation (“Oracle”) is pleased to allow its business partner (“Partner”) to download and copy the information, documents, and the online training courses (collectively, “Materials") found on this Site. The use of the Materials is restricted to the non-commercial, internal training of the Partner’s employees only. The Materials may not be used for training, promotion, or sales to customers or other partners or third parties. 2. All the Materials are trademarks of Oracle and are proprietary information of Oracle. Partner or other third party at no time has any right to resell, redistribute or create derivative works from the Materials. 3. Oracle disclaims any warranties or representations as to the accuracy or completeness of any Materials. Materials are provided "as is" without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, and non- infringement. 4. Under no circumstances shall Oracle or the Oracle Authorized Delivery Partner be liable for any loss, damage, liability or expense incurred or suffered which is claimed to have resulted from use of this Site of Materials. As a condition of use of the Materials, Partner agrees to indemnify Oracle from and against any and all actions, claims, losses, damages, liabilities and expenses (including reasonable attorneys' fees) arising out of Partner’s use of the Materials. 5. Reference materials including but not limited to those identified in the Boot Camp manifest can not be redistributed in any format without Oracle written consent. Oracle Training Materials – Usage Agreement

-4- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Key Content Contributors Contributing Companies

-5- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential R12.1: Oracle Financials

Module: Oracle General Ledger

-7- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Oracle General Ledger Process Accounting Setup Manager Ledger Basic Journal Entries Accounting Setups Summary Accounts Advanced Journal Entries Advanced Security Financial Budgeting Multi-Currency Consolidations Period Close Financial Reporting Bootcamp Objectives

-8- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives The Accounting Cycle Key steps in the close process Journal import of subledger balances Subledger Reconciliation The Period Closing Process and Reports Consolidate account balances

-9- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

-10- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives The Accounting Cycle Key steps in the close process Journal import of subledger balances Subledger Reconciliation The Period Closing Process and Reports Consolidate account balances

-11- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Key Steps in the Period Close Import journals from subledgers Perform reconciliation of subledgers Close the period for each subledger Perform revaluation of foreign currency balances Verify all journals are posted Reconcile account balances Translate balances Perform consolidation Run Trial Balance and other reports Close the GL period Open the next period

-12- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives The Accounting Cycle Key steps in the close process Journal import of subledger balances Subledger Reconciliation The Period Closing Process and Reports Consolidate account balances

-13- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Importing Journals from Subledgers GL_JE_LINESGL_JE_HEADERSGL_JE_BATCHES SubledgersGL_INTERFACE Transfer in summary or detail Automatic or manual Journal Import PostGL_BALANCES

-14- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Journal Import Verification Process Load GL_INTERFACE Table Import Journals by Source and Group ID Do any of the journals have errors? Number of errors? Correct errors in feeder system Journal Import creates a postable journal batch Delete source from Journal Import Correct Journal Import online No High Low Yes

-15- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Posting Journals Manual Posting Auto Posting Update balances by posting journals.

-16- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives The Accounting Cycle Key steps in the close process Journal import of subledger balances Subledger Reconciliation The Period Closing Process and Reports Consolidate account balances

-17- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Reconciliation of Subledgers Reconcile the subledger data to General Ledger to ensure transfer and accounting of all subledger transactions in General Ledger Perform reconciliation by: –Reports –Account Analysis Flows: –Procure to Pay –Order to Cash –Projects –Non-Oracle subledgers

-18- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives The Accounting Cycle Key steps in the close process Journal import of subledger balances Subledger Reconciliation The Period Closing Process and Reports Consolidate account balances

-19- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Procure to Pay Close Processes Inventory Payables General LedgerAssets Purchasing/ iProcurement Payables Transfer to General Ledger Mass Additions Create Post Mass Additions/ Depreciation GL Interface Receipt Accruals - Period End Transfer Transactions to GL Create Journal Entries

-20- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Overview of Procure to Pay Period Close Run Invoice Validation/ Review and resolve holds Run Payables Accounting Process to Transfer Close the period in AP Reconcile AP activity for the period Post journal entries in GL Prepare for period close Close the PO period Run PO Period Accruals

-21- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential AP to GL Reconciliation January Accounts Payable Trial Balance + February Posted Invoice Register - February Posted Payment Register - February Accounts Payable Trial Balance = 0 Reconciliation for February Balance of the Accounts Payables Trial Balance should equal the AP Liablility Account balance in General Ledger

-22- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Reports: Procure to Pay Process Unaccounted Transactions Report Uninvoiced Receipts Report Accrual Reconciliation Report Accrual Write-Off Report Matched and Modified Receipts Report Payables Account Analysis Report Payables Accounting Entries Report Posted Invoice Register Posted Payment Register Receipt Accruals – Period End Receiving Account Distribution Report Unaccounted Transactions Report Uninvoiced Receipts Report

-23- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Order to Cash Period Close Process Inventory Receivables General LedgerOrder Management Cash Management Transfer to General Ledger AutoInvoice Send all Orders/Credit Memos GL Interface Receipt Reconciliation Transfer Transactions to GL

-24- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Overview of Order to Cash Period Close Process Post journal entries in GL Review, balance, and reconcile Receivables, Cash Management, and Inventory transactions Complete the transfers from Receivables and Inventory to the General Ledger Review the transfer results, and correct transfer issues Close Receivables and Inventory Periods

-25- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Reconciling Receivables Transactions, Receipts, and Customer Balances Reports available for reconciliation purpose: AR Reconciliation Report Sales Journal by Customer Transaction Register Receipts Register Sales Journal by GL Account Journal Entries Report Receipts Journal Report Receipts Register Aging Report Transaction Detail Report Unapplied Receipts Register Applied Receipts Register Invoice Exceptions Report

-26- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential GL Reconciliation Report for Cash Management The GL Reconciliation Report: Reconciles the General Ledger cash account to the bank statement balance Lists the General Ledger cash account balance and adjusted balance Lists separately the adjustment amount for unreconciled receipts, payments, journal entries, and bank errors

-27- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Project Period Close Overview Projects Payables General LedgerAssets Transfer Payables Invoices and Expense Reports Mass Additions Create Post Mass Additions/ Depreciation GL Interface Transfer Open Purchase Orders Transfer Labor and Usage Costs Create Journal Entries Purchasing Transfer Project Assets &

-28- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Project Period Close Final Step to close PA period: Run PRC: Interface Revenue with General Ledger Open the new period. Period Close Exception Reports: EXC: Summarization Period Exceptions EXC: Transaction Exception Details EXC: Transaction Exception Summary

-29- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Close the Subledgers Subledgers Close Period Suggested order for closing subledgers: –Projects –Payables –Purchasing –Assets –Receivables –Inventory

-30- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Perform Revaluation Revaluation is run at the end of each accounting period as part of the close process to revalue balance sheet accounts that are denominated in a foreign currency The journal is then reversed at the beginning of the next period. The Realized Gain/Loss will be recorded by the appropriate subledger and transferred to the General Ledger at the time the obligation is settled.

-31- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Period Status Each accounting period has one of the following five statuses: Open Period Closed Period Permanently Closed Period Never Opened Future Enterable

-32- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives The Accounting Cycle Key steps in the close process Journal import of subledger balances Subledger Reconciliation The Period Closing Process and Reports Consolidate account balances

-33- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Balance Sheet Close Closes your balance sheet accounts to a specified balance sheet closing account You can automatically reverse this journal at the beginning of the next period The balance sheet journal entries are created to zero out the ending year-to-date balances for balance sheet accounts, with the offset posted to the closing account you specify.

-34- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Income Statement Close The Income Statement Closing Journals program generates journals to close out the year-to-date (YTD) balances of a range of revenue and expense accounts. This program can be submitted for any open period. The Income Statement Closing Journals process can accept two account templates as parameters for the closing journal. These are: –Retained Earnings account template (Required) –Income Statement Offset account template (Optional)

-35- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Overview of Consolidation The consolidation process combines the financial results of different companies, typically combining subsidiary accounting information into a parent company for reporting purposes. Methods to perform consolidation: –Financial Statement Generator (FSG) –Global Consolidation System (GCS)