1. Flow of Accounting entries in Oracle ApplicationsBy
Sivakumar Ganesan

2. Agenda Understanding the Accounting Flow in Oracle Applications
Transaction Flow
Modules Covered
Set up required in Oracle Applications
Defaulting Accounts
Posting to General Ledger from Sub-Ledger
Posting in General Ledger
Viewing 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
Subledgers supporting MRC: AP, AR, PA, PO & FA GL
Any journal source (even legacy system)
MRC integrated with AX (Global Accounting Engine)
Cash Management - through AP and AR
Cost Management - reporting solution only
Key differentiator

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

5. Modules Covered Oracle Purchasing Oracle Payables Oracle Inventory
Oracle Manufacturing (WIP Accounting)
Oracle Order Management
Oracle Receivables
Oracle Cash Management
Oracle General Ledger

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

7. Set up Required in Oracle Applications
Each 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 defaulted
Each Module Needs to set the Accounts for an Accounting Event Happening in that Module

8. Defaulting Accounts in Case of Purchasing

9. Defaulting Accounts in Case of Purchasing

10. Posting to General Ledger from Sub-Ledger
Sub-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.
You can run the Process Daily, Weekly, Monthly
You 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 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 permitted

12. Accounting Events – Oracle 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
Invoices
Invoice
Invoice adjustment
Invoice cancellation
Prepayment application
Prepayment un-application
Payments
Payment
Future dated payment maturity
Payment adjustment
Payment cancellation
Payment clearing
Payment un-clearing

14. Accounting Events – Manufacturing (WIP)
Oracle 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
Cost of Goods Sold Entry in Inventory Module

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

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

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

19. Accounting Event – General Ledger
Oracle 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