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General Ledger Interview Questions

Q) What is Planning Budget?

A) The plan for the future expenses is planning budget. It is a paper work. There is no funds requirement. It does not require journals. There are no restrictions for estimating of funds. It is a budget through which you cannot excercise budgetary control . But you can compare your actual budgets through inquiry window.

Q) After creating Journal Source how do we approve to the specific set of Books?

A) To approve journals from specific source, while creating the source ‘Require Journal Approval’
check box should be enabled. To approve all the journals that come from different sources In the Set of Books window under ‘Journaling’ tab ‘journal approval’ should be enabled.

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Integration with Oracle E-Business Tax

In Release 12, Oracle E-Business Tax, a new product, will manage transaction tax across
the E-Business Suite. In prior releases, the setup, defaulting and calculation of
transaction tax for Payables was managed within Payables using tax codes, their
associated rates and a hierarchy of defaulting options. This method of managing tax is
still available to you in Release 12. During the upgrade, E-Business Tax migrates the tax
codes and their rates to corresponding tax rules so that your tax processing can get the
same results after the upgrade as it did before. If you choose to use the features of
E-Business Tax, you can make the transition at your own pace, incrementally adding
E-Business Tax rules to meet your requirements.

In Release 12, there are new fields added to the supplier, invoice, and related entities
that track tax attributes used by E-Business Tax. Many of these attributes were
implemented with Global Descriptive Flexfields in prior releases and are upgraded to
regular fields on these entities.

Also during the upgrade, E-Business Tax takes information from the AP invoice lines
and creates summary and detail tax lines in the E-Business Tax repository. The tax lines
are upgraded based on the time period you specify during the submission of the
upgrade. During the upgrade, Payables creates payment distributions and prepayment
application distributions for existing transactions and creates links between these new
distributions and the original invoice distributions. After the upgrade, if you adjust a
historical transaction that was not upgraded, E-Business Tax automatically upgrades
the transaction to the Release 12 entities.

Tax Attributes Controlled by Global Descriptive Flexfields Migrated to Core Payables and E-Business Tax Entities

The following tax attributes were implemented using descriptive flexfields on the
invoice entities in Release 11i and are now implemented using named columns. The
Invoice Lines upgrade will upgrade the values from the descriptive flexfields segments
to the new columns.

The following are new fields on the invoice header and in the invoice interface:
• Business Category
• Fiscal Classification
• Invoice Sub-type
• Port of Entry
• Supplier Exchange Rate
• Supplier Tax Invoice Date
• Supplier Tax Invoice Number
• Tax Date
• Tax Reference Number

The following are new fields on the invoice line and in the invoice lines interface:

• Assessable Value
• Business Category
• Deferred Option, Distribution Account
• Fiscal Classification
• Intended Use
• Product Category
• Ship-To Location
• Supplier Exchange Rate
• User Defined Fiscal Classification

The following are new fields on the invoice distribution:

• Fiscal Classification
• Distribution Account
• Intended Use

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Integration with Oracle Subledger Accounting

Release 12 introduces a new module, Subledger Accounting (SLA), for managing
accounting across subledger transactions. With the introduction of SLA, Payables will
no longer create accounting entries, but will instead rely on the central SLA engine to
do so. During the upgrade, accounting options and their settings, and the existing
accounting entries in the Payables data model are moved to the new SLA accounting
data model. Also during the upgrade, Payables sets up SLA to replicate the accounting
created by Payables in Release 11i.

The new SLA architecture requires Payables to maintain specific data relating to
transactions. SLA uses this data to generate accounting entries. In order to achieve this
it was determined that both payment distributions and prepayment application
distributions would be introduced into the Payables data model. Unlike invoice
distributions that can be entered by the user, payment distributions will be generated
automatically and will be associated with each accounted payment.

During the upgrade, all accounting events, headers and lines from the 11i data model
are upgraded to the new Subledger Accounting events, headers and lines data model,
regardless of the number of periods you specify when submitting the upgrade. If the
Global Accounting Engine (AX) is enabled for the set of books associated with a given
Operating Unit, then the upgrade migrates the AX accounting events, headers and lines
to SLA instead of those in Payables. The payment distributions and prepayment
application distributions are upgraded based on time periods you specify during the
submission of the upgrade. During the upgrade, Payables creates payment distributions
and prepayment application distributions for existing transactions in the periods you
specify for upgrade and creates links between these new distributions and the original
invoice distributions.

If you have customizations based on the 11i AP accounting tables, you need to
transition them to use the SLA data model. Also note, if you use Oracle Projects,
Projects uses SLA in Release 12 and creates accounting entries for adjustments rather
than using Payables to create those entries as in prior releases. If you have any
customizations based on Project adjustments, you will need to transition them to the
SLA data model.

The Deferred Expenses feature, supported with Global Descriptive Flexfields at the
invoice distribution level in Release 11i, has been replaced by the Multi-Period
Accounting feature in SLA.

Upgrading Payables Accounting Entries to Subledger Accounting

The following table displays the mapping from 11i entities to new Release 12 entities.

Source 11i Entity
Release 12 Entity
AP/AX Accounting Events, Headers, Lines
SLA Accounting Events, Headers, Lines
AP Payment History, Invoice Payments and
Invoice Distributions
AP Payment History and AP Payment
Distributions
AP Prepayment History and Invoice
Distributions
AP Prepayment Application Distributions
AP Accounting Lines and Invoice
Distributions
AP Distribution Links

Upgrading Payables System Options to SLA

The following table displays the mapping from 11i system option settings to the new
accounting setup entities and settings.

Source 11i Window and Field
Release 12 Window and Field
Payables Options: Primary Accounting
Method
GL Accounting Setup: Sub-ledger Accounting
Method
Payables Options: Secondary Accounting
Method
GL Accounting Setup: Sub-ledger Accounting
Method
Payables Options: Primary Set of Books
GL Accounting Setup: Primary Ledger
Payables Options: Secondary Set of Books
GL Accounting Setup: Secondary Ledger
Payables Options: Prevent Prepayment
Application Across Balancing Segment
Obsolete. Supported by SLA inter-company
Balancing.
Payables Options: Relieve Future Dated
Payment Liability When:
• Payment is Issued
• Payment Matures
• Payment Clears
Obsolete. Supported by Payments bills
payable feature.

Creating Payment Distributions and Prepayment Application Distributions

During the upgrade, Payables creates payment distributions for existing payments,
links those distributions with the original invoice distributions and adds payment,
payment adjustment and payment cancellation information to the payment history
records. Since you control the periods that are upgraded (by setting them during the
SLA upgrade), Payables also adds an indicator to mark which historical data has been
upgraded.

Also during the upgrade, Payables creates prepayment application distributions for
existing prepayment invoices, links those distributions with the original prepayment
distributions and adds a prepayment history entity to track historical prepayment
application and non-application entries. Since you control the periods that are
upgraded (by setting them during the SLA upgrade), Payables also adds an indicator to
mark which historical data has been upgraded.

After the upgrade, if you find that you need to adjust a historical payment or need to
unapply a prepayment application that did not have its data upgraded, you can run the
SLA postupgrade process to upgrade the entries for that record.

Creating Distribution Links

During the upgrade, Payables migrates invoice distribution links, prepayment
application distribution links and payment distribution links into the SLA distribution
links entity for the data that has been populated in the payment distributions and
prepayment application distributions table for the periods you selected to upgrade.

Populating the Initial Balances for the Open Account Balances Listing Report

As part of the Subledger Accounting introduction, a new report, the Open Account
Balances Listing, replaces the 11i Payables Trial Balance. During the upgrade, Payables
and SLA populate the initial liability balances by ledger, formerly “set of books,” based
on Payables transactions as of the periods you selected to upgrade.

The following table displays the mapping from 11i standard reports to the new
SLA-based reports.

Obsolete 11i Standard Reports
Release 12 SLA Report
Accounts Payable Trial Balance
Accounts Payable Trial Balance
Payables Accounting Entries Report
Journal Entries Report (SLA)
Payables Account Analysis Report
Account Analysis Report (SLA)
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R12 – Procure To Pay Cycle in Oracle Apps (P2P)

I tried to explain the steps involved in Procure to Pay Cycle. This is a pure functional Stuff and helps you to understand the navigation steps.
I tried to keep as simple as Possible for clear understanding. The screenshots given below are taken from R12.1.1 apps instance.
Stage 1: Choosing an Item
Let us choose an item to be procured in our example.
Go to Purchasing Responsibility and follow the below navigation to check for the suitable item.


The item picked for our example should be purchasable item as above. Click on tools and choose “Categories” to view the below screen.

Stage 2: Creation of Requisition
Follow the below Navigation to reach Requisition Form.

Create a new Requisition for the item viewed in Stage 1.

Click on Distributions to View the charge Account.

Save and Submit for Approval

Now note down the Requisition number and open the “Requisition Summary Form” to view the status of it. For our Example, Requisition number is: 14855

Stage 3 : Checking the Status of Requisition

Query for the Requisition Number and click Find.

Here for our example purpose, I kept the submitted and approved person has same and hence it shows the status as approved.

To see the approval status, please follow the below navigation.

Stage 4 : Creation of Purchase Order
For creating a Purchase order, let us use the “Autocreate Documents” Form. Follow the below Navigation


Query for the Requisition

Click on Automatic as shown in the above figure to create a Purchase Order

Click on “Create” button to create a Purchase order

View the shipment screen to change the “Match Approval Level” to “2-Way”.

Click the “Receiving Controls” to make sure that the “Routing” is made as “Direct Routing”

Click Save and submit for Approval.


Note down the PO Number.

Stage 5: Creation of Receipts


Query with the Purchase order created in the above stage.

Check the check box near to the lines that are received and click save.

Click the “Header Button” to view the Receipt Number.

Stage 6: Checking the On Hand
Go to any Inventory Responsibility and follow the below Navigation

Query for our Receipt and make sure the Organization is the same as we received.

Below screen will show that our inventory has been increased by 5 quantities.

Stage 7: Check the Material Transactions
Follow the below Navigation to reach “Material Transactions” Form


Query for the item and date as below


Below screen shows the source and transaction Type

Below screen shows you the Serial Numbers of the items received.

Stage 8: Creation of Invoice
Navigate to any Purchasing Responsibility and view à Requests
Submit the below requests by providing the Receipt number as Parameter to create an invoice.

Check the status of the program.

Stage 9: Checking the Invoice
Change to any Payables Responsibility and open the invoices Form.
Query for the Purchase order as below,


Click “Actions” Button then tick the “Validate Check Box” and press “Ok” to validate the invoice

Below screenshot will give you the status of the invoice

Stage 10: Creation of Accounting and Payment
Once invoice got approved, we can “Create Accounting” and “Create Payments” via “Action” Button in the “Invoice Form” as we validated the invoice.

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MULTI ORG in Oracle Application

The ability to define multiple organizations and the relationships among them within a single installation of Oracle Applications is called multi organization or Multi-org. Multi Org is the future used to store the data of multiple organizations in a single Database instance.
Basic Business Needs:

  • Use a single installation of any Oracle Applications product to support any number of organizations, even if those organizations use different sets of books.
  • Define different organization models.
  • Support any number of legal entities within a single installation of Oracle Applications.
  • Secure access to data so that users can access only the information that is relevant to them.
  • Sell products from a legal entity that uses one set of books and ship them from another legal entity using a different set of books, and automatically record the appropriate intercompany sales by posting intercompany accounts payable and accounts receivable invoices.
  • Purchase products through one legal entity and receive them in another legal entity.

Basically the different entities in multi-org are:

  • Business Group (BG)
  • Sets of Books (SOB)
  • Legal entities (LE)
  • Operating units (OU)
  • Inventory organizations (IO)

Organization Structure Example:

Business Group (BG):
The business group represents the highest level in the organization structure, such as the consolidated enterprise, a major division, or an Operation Company. A BG is used to secure human resources information like generation of employee numbers, generation of applicants, position flex fields, Job flexfields, Grade Flex field, Fiscal year, etc.
Set of Books (SOB):
A SOB is a collection of Currency, Calendar and Chart of Accounts (COA). Oracle General Ledger is used to secure Journal transactions (such as journal entries and balances) of a company by set of books. For each organization of the Business Group we need to define a set of Book. A company which operates in separate cities or separate line of businesses may separate their accounting transactions across units through separate Set of Books. A Business Group can have one or more set of Books.
Legal entities (LE):
A legal entity represents a legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to these types of organizations. Separate Legal Entities may share same set of Books.

Operation Unit (OU):
An operating unit is a division or a Business unit of the legal entity. At this level we are going to maintain the information of sub‐ledgers. We are going to maintain the ledgers at Legal Entity level. Receivable, Payables, Assets, etc. are comes under Operation Unit level. Each user sees information only for their operating unit. Responsibilities are linked to a specific operating unit by the MO: Operating Unit profile option.

Inventory organizations (IO):
An inventory organization represents an organization for which you track inventory transactions and balances, and manufactures or distributes products. Examples include manufacturing plants, warehouses, distribution centers, and sales offices. The following products and functions secure information by inventory organization: Inventory, Bills of Material, Engineering, Work in Process, Master Scheduling/MRP, Capacity, and purchasing receiving functions. To run any of these products or functions, you must choose an organization that is classified as an inventory organization.

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