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General Ledger Interview Questions in R12 – Part 1

1) Can a flexfield qualifier be changed after it has been created?
Ans)  No.

Once a segment qualifier has been designated for a specific segment and has been saved, it will permanently have the attributes with that qualifier.
For example, you accidentally designate the cost center segment as the natural account segment. Even though you do not compile this, the system saves the changes. And once it has been saved, it will have all the attributes designated for the natural account qualifier, even after it has been changed back, resaved with the correct qualifier and compiled. This is the inherent functionality of the software.
Unfortunately, there is no real easy solution for this issue. The only option is to create a new chart of accounts and attach a new set of books.

2) How to delete a segment value?
Ans) There is no supported way to delete a segment value. Segment values can only be disabled not deleted.

3) Is there a way to load values for a specific segment outside of the form?
Ans) iSetup is the Oracle product that provides supported APIs to load values into Oracle Applications flexfields.
To load code combinations ADI may be used. Uploading zero amount journals will create new code combinations.
In this case Dynamic Insertion should be enabled and all account segment values need to exist before the new account code combinations will be dynamically created.


4) What are the different types of Journals in General Ledger ?
Ans)  

1. Functional Currency Jv: This Journal, we enter Local Currency transaction purpose.

2. Foreign Currency Jv: this Journal, we enter other than local currency transaction purpose…before we define exchange rates

3.Suspense Jv: this Journal, whenever debit is not equal to credit that time, we enable in set of books window Suspense button, then it works otherwise it’s not working

4.Tax Jv: this Journal, calculate taxation of Purchased items

5.Reverse Jv: this Journal whenever we enter recurring journal, at the time of we using..We have two methods…one is Debit to Credit and second one is sign (+ to -)

6.Recurring Jv :this one is We define one template, we use Periodically, these are 3 types
1.Standard 2.Skeleton 3.Formula

7.Mass Allocation Jv :Set of Expenses or Set of Revenue allocate different parts using Formula A*B/C 
A is Total Cost Pool..B is Usage Factor…C is Total Usage Factor…

8. Batch JV: Group of Journal we enter at a time, We Define Control Amount

9. Stat JV: This JV we have one side of Amount either debit or Credit…..
 
5)  What is average Balance In Oracle Financials? 
Ans) The Average Balance feature of Oracle General Ledger provides organizations with the ability to track average and end-of-day balances, report average balance sheets, and create custom reports using both standard and average balances. Average balance processing is particularly important for financial institutions, since average balance sheets are required, in addition to standard balance sheets, by many regulatory agencies. Many organizations also use average balances for internal management reporting and
Profitability analysis.
The difference between an average and standard balance sheet is that balances are expressed as average amounts rather Than actual period-end amounts. An average balance is computed as the sum of the actual daily closing balance for a balance sheet account, divided by the number of calendar Days in the reporting period .


6) Is there a limit to the number of periods in a budget year or how many years a budget can span?
Ans) One can define budgetary control for n number of years however, one year can have maximum of 60 fiscal periods)
7) What is a funding budget?
Ans) A budget against which accounting transactions are checked for available funds when budgetary control is enable for your set of books.
8) What is planning budget
Ans) 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.
9) I was able to post a budget journal to a closed period, why? 
Ans) Yes you can do so, reason being budget journal is not linked with your accounting period. Once you have open the budget period then you can book budget journal for that whole period.
 10) What is the specific purpose of assigning Balancing Segment Values to the Legal Entity in Accounting Manager Setup (as once assigned, the same value is not allowed to be selected for any other Legal Entity), if this value is usable for the Operating Unit(s) that does not have this Legal Entity Context? 
Ans) Summary of key facts:

1. Common COA Structure used for Primary and Secondary Ledgers
2. Ledger shared by Multiple Legal Entities
3. Specific Balancing Segment Values assigned to Specific Legal Entity (Overlap not allowed)
4. Specific Legal Entity Vision Operations Assigned to Payables Manager OU for Legal Entity Context
5. User preference set to Access Vision Operations OU by Default in Payables

Conclusion and Findings:
1. Balancing Segment Value Assignment to the Multiple Legal Entities, sharing the same Ledger does not seem to restrict the user of these Balancing Segment Values in the Feeder, Operating Unit specific Modules Like AP, wherein Legal Entity Context is passed to the OU through the link of the Primary Ledger.

2. However, access to these Balancing Segment Values could be controlled through Security Rules being assigned to the Value Set and the Respective Responsibility

3. The Key question is: If Legal Entity having the context to the Operating Unit that shares the common Ledger does not have assignment to it, what impact it has on the integrity of data when this access is otherwise allowed, except through Security Rules?
11) What are the interface tables in General Ledger ?
Ans)
GL_BUDGET_INTERFACE 
GL_DAILY_RATES_INTERFACE 
GL_IEA_INTERFACE 
GL_INTERFACE 
GL_INTERFACE_CONTROL 
GL_INTERFACE_HISTORY 
 12) What is DFF.
Question: What does DFF mean?
Answer: DFF is a mechanism that lets us create new fields in screens that are delivered by Oracle. 

Question: Oh good, but can these new fields be added without modifying/customization of the screen?.
Answer: Yes, certainly. Only some setup is needed, but no programmatic change is needed to setup DFF.

Question: Why the word Descriptive in Name DFF?
Answer: I think Oracle used this terminology because by means of setup…you are describing the structure of these new fields. Or may be Oracle simply used a silly word to distinguish DFF from KFF(discussed in latter training lesson).

Question: Are these DFF’s flexible?
Answer: A little flexible, for example, depending upon the value in a field, we can make  either Field1 or Field2  to appear in DFF. 

Question: So we create new fields in existing screen, but why the need of doing so?
Answer: Oracle delivers a standard set of fields for each screen, but different customers have different needs, hence Oracle lets us create new fields to the screen.

Question: Are these new fields that get created as a result of DFF free text?
I mean, can end user enter any junk into the new fields that are added via DFF?
Answer: If you attach a value set to the field(at time of setup of dff), then field will no longer be free text. The entered value in the field will be validated, also a list of valid values will be provided in LOV. 

Question : Will the values that get entered by the user in dff fields be updated to database?
Answer: Indeed, this happens because for each field that you create using DFF will be mapped to  a column in Oracle Applications.

Question: Can I create a DFF on any database column?
Answer: Not really. Oracle delivers a predefined list of columns for each table that are meant for DFF usage. Only those columns can be mapped to DFF segments. These columns are named similar to ATTRIBUTE1, ATTRIBUTE2, ATTRIBUTE3 ETC. Usually Oracle provides upto 15 columns, but this number can vary.  

Question: Can I add hundreds of fields to a given screen?
Answer: This depends on the number of attribute columns in the table that screen uses. Also, those columns must be flagged as DFF enabled in DFF Registration screen. Don’t need to worry much about this because all the ATTRIBUTE columns are by default flagged for their DFF usage.

Question: Hmmm, I can see that DFFs are related to table and columns…
Answer: Yes correct. Each DFF is mapped to one table. And also each segment(or call it field) is mapped to one of the attribute columns in that table.

Question: I want these fields to appear in screen only when certain conditions are met. Is it possible?
Answer: Yes, we have something known as Context Sensitive Descriptive Flexfields.

In Order to do this, we will follow the below steps(screenshots will follow) :- 
1.    Navigate to the DFF Registration screen in Oracle Apps and query on Table AP_BANK_BRANCES. Now click on Reference Field
2.    Navigate to DFF Segments screen and query on the Title of the “Bank Branch” and Unfreeze the Flexfield and add segments as to Section “GLOBAL Data Elements” as shown in screenshots.
13)   What is Journal Import?
Ans) Journal import is an interface used to bring journal entries from legacy systems and other modules into the General Ledger.(Specifically Journal Import gets entries from legacy data into the GL base tables.

The tables populated during journal Import are
GL_JE_BATCHES,
GL_JE_HEADERS,
GL_JE_LINES,
GL_IMPORT_REFERENCES


14) What is the use of GL_Interface?
Ans) Gl_Interface is the primary interface table of General ledger. It acts as an interface between data originating from other modules such as AP,AR, Legacy data and the Gl Base tables.

15) What is Actual Flag?
Ans) Actual flag represents the Journal type.
A-Actual
B-Budget
E- Encumbrance.

16) What is Encumbrance?
Ans) It is a process of Reservation of funds for anticipated expenditure from a budget. Encumbrance integrates GL, Purchasing and Payables modules.

17) How many Key Flex Fields are there in General Ledger?
Ans)  One. Accounting Key Flex Field.

18) How many types of Budgets are there?
Ans) Two Types.
Expenditure Budgets
Revenue Budgets.

19)What are Spot Rate, Corporate Rate, Transaction Calendar and Accounting Calendar?
Ans) Spot Rate:
An exchange rate which you enter to perform conversion based on the rate on a specific date. It applies to the immediate delivery of currency.

 Corporate Rate:
An Exchange rate that we define to standardize rates for our company. This rate is the standard market rate determined by the senior financial management for use through out the organization.

 User Rate:
Conversion rate that is defined by the user.
EMU Fixed Rate: An exchange rate that is provided automatically by the General Ledger while entering journals. It uses a foreign currency that has a fixed relationship with the euro.
Transaction Calendar: Defines the business days and holidays for any calendar.
Accounting Calendar: Defines different types of calendars namely Fiscal, Federal Fiscal, Month etc.

20)What is Security Rule?
Ans) Security Rules are defined to control the access of a flexfield segment value (Financial information) at a responsibility level.

21) What are Cross Validation & ADI?
Ans) CVS – Cross validate segments – Allows only valid code combinations.
ADI – Allow dynamic inserts. – Allows any code combination irrespective of validity.
ADI would prevail if both of CVS and ADI are checked.

22)What is Translation?
Ans) Translation is a process used to convert functional currency to other reporting currencies at the account balances level.

23)What is Revaluation?
Ans) It is process used to revalue assets and liabilities denominated in foreign currency into functional currency based on period end exchange rate we specify. Unrealized gains/losses are resulted because of exchange rate fluctuations which are recorded in unrealized gain/loss account in GL.

24)What is FSG (Financial Statement Generator)?
Ans) Financial statement generator feature helps us to generate reports such as balance sheets and income statements with out programming. It also provides a high degree of control on the rows, columns, contents and calculations on the report. Different components such as row set, column set, content set, row order, display set have to be defined before a statement is generated, of which row set and column set are mandatory.

25) What is Consolidation?
Ans) Consolidation is a period-end process of combining the financial results of separate business subsidiaries with the parent company to form a single combined statement of financial results.

26) At what level General Ledger data is secured?
Ans) GL data is secured at Set of Book level. Subledger module data is secured at Responsibility level (i.e., at Operating Unit Level).

27) Difference between Primary Ledger and Secondary Ledger in R12 ?
Ans) Primary ledger:
The primary ledger acts as the primary accounting representation

Secondary Leger:
Secondary ledgers represent the primary ledger’s accounting data in another accounting representation that differs in one or more of the following ways: 
chart of accounts
accounting calendar/period type combination
currency
subledger accounting method
ledger processing options
Use secondary ledgers for supplementary purposes, such as consolidation, statutory reporting, or adjustments for one or more legal entities within the same accounting setup. For example, use a primary ledger for corporate accounting purposes that uses the corporate chart of accounts and subledger accounting method, and use a secondary ledger for statutory reporting purposes that uses the statutory chart of accounts and subledger accounting method. This allows you to maintain both a corporate and statutory representation of the same legal entity’s transactions in parallel. 
Assign one or more secondary ledgers to each primary ledger for an accounting setup. 
The secondary ledgers assigned can only perform the accounting for the legal entities within the same accounting setup. 

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How to Define Access Sets in R12

Definition Access Sets are an optional security feature that allow you to secure shared General Ledger definitions such as Mass Allocations, Recurring Journal Formulas, and Financial Statement Generator (FSG) components. Definition Access Sets allow you to:
• Assign a user or group of users access to specific definitions.
• Specify what actions can be performed on secured definitions for a user or group of users.
For example, you can secure FSG reports to allow some users to modify the report definition, other users to only view the report definition, while other users can modify, view, and submit the report.

To use Definition Access Set security you:

1. Create a Definition Access Set.
2. Assign it to one or more responsibilities.
3. Create a definition.
4. Secure the definition in its respective window and assign it to a Definition Access
Set with the proper privileges.

Prerequisites

• Define your charts of accounts.

Access Privileges
You can control who has access to definitions by assigning them to Definition Access Sets with one or more of the following privileges:

• Use: 

Enables a user to use a definition in a process or report, such as FSG Report components, Recurring Journal, and Mass Allocation definitions. It also enables a user to use the definition to create another definition, such as using a Recurring Journal to create an AutoAllocation Set or using a FSG Report component to create a FSG report.
If a user only has Use access to a definition, that user cannot view or modify the definition. For example, if a user only has Use access to a Mass Allocation definition, that user can generate journals using the Mass Allocation in the Generate Mass Allocation Journals window, but she cannot view or modify the definition in the Define Mass Allocation window.

• View:

Enables a user to view a definition. If a user only has View access to a definition, that user cannot use or modify the definition. If AutoCopy is available as a function for that particular definition, the
user will be able to use AutoCopy to create a copy of the definition. This allows the user to create a definition based on an existing definition without changing the original.
• Modify: Enables a user to View and Modify a definition. Modify access automatically includes View access.
If a user only has Modify access to a definition, that user cannot use the definition.
1.Defining Definition Access Sets
Navigation: General Ledger –> Setup –> Financial –> Definition Access Sets –> Define
1. Enter a Name and Description. You cannot modify or delete the Name once it is saved.
Tip: You can initially create a Definition Access Set that has no associated definitions. While subsequently creating a definition, you can secure it by choosing the Definition Access Set from the List of Values in the Definition’s Assign window.
Tip: For ease of maintenance, consider a naming convention foryour Definition Access Sets that group similar definitions together.
For example, you can create a Definition Access Set that groups similar definitions together, such as all of your FSG components. Alternatively, you can create definition access sets that group definitions by privileges, such as Use, View, and Modify privileges. Because you can have an unlimited number of Definition Access Sets assigned to a responsibility, a good naming convention prevents confusion as you secure more definitions in the future.
2. (Optional) From the Definitions region, you can add definitions to the Definition Access Set. To do so, choose a Definition Type and Name from the List of Values. Only definitions that have been secured with the Enable Security checkbox checked in the definition window will be available.
3.Assign one or more privileges to the definition:
Use: The definition can be used.
View: The definition can be viewed.
Modify: The definition can be viewed and modified. View defaults automatically.
4. Repeat steps 3 and 4 to add more definitions to the Definition Access Set.
5. Save your work.
2.Assign Definition Access Set to a Responsibility.
Navigation: General Ledger –> Setup –> Financial –> Definition Access Sets –> Assign.
1.. Select a General Ledger Responsibility that will be assigned to the Definition Access Set .
2. In the Assignments region, choose one or more Definition Access Sets to assign.
Note: The definition access sets you assign will appear in the list of values in the Assign window when securing each definition in their respective definition window.
3. (Optional) Enable the AutoAssign checkbox to automatically have definitions created by responsibility assigned to the Definition Access Set. If you enable AutoAssign, you must choose default privileges for those responsibilities. Specify one or more AutoAssign Privileges for the Definition Access Set: your choices are
Use, View, and Modify.
Note: You will be able to override the privileges when securing the individual definitions if you have the Assign Access button available in the respective definition window. If the Assign Access function has been excluded for this definition from your responsibility, the button will not appear in the respective definition window. The following table lists General Ledger definitions that can be secured and explains what Use, View, and Modify access mean for each definition.
Securing Calendars
You can secure your calendar definition using definition access sets. Definition access sets are an optional security feature that allows you to control use, view, and modify access to your General Ledger definitions.
For accounting calendars, only View and Modify access are applicable.
View Access: Allows specific users to view the calendar definition from the Accounting Calendar window. If you have view access, you will be unable to make changes to the calendar definition.
Modify Access: Allows specific users to view and make changes to the calendar from
the Accounting Calendar window.
Prerequisite
• Carefully consider the type of calendar you need for your organization, since it canbe difficult to change your calendar (e.g., from a fiscal year to a calendar year) once you’ve used it to enter accounting data. Changing your calendar may require assistance from an Oracle consultant.
• Define your accounting period types
To define a new calendar:
1. Navigate to the Accounting Calendar window.
2. Enter a Name and Description for the calendar.
3. Add the periods that make up the calendar year.
4. (Optional) Select the Enable Security check box to apply definition access set
security to the Calendar definition. If you do not enable security, all users who have access to this calendar definition will be able to view and modify the calendar definition. If the Assign Access function is available for your responsibility, the Assign Access button is enabled once you check the Enable Security check box. Choose the Assign Access button to assign the calendar definition to one or more Definition Access Sets with the desired privileges. If the Assign Access function has been excluded from your responsibility, you will
not be able to view the Assign Access button in the Accounting Calendar window. You can still secure the calendar by checking the Enable Security check box, but only Definition Access Sets that are AutoAssigned will be automatically assigned to this calendar. See your System Administrator for more information on Function Security.
5. Save your work.
Note: When you exit the Accounting Calendar window, full calendar validation is launched. You can choose to validate all calendars or the current calendar. Navigate to Help > View > My Requests to view or print the Calendar Validation Report. This report helps you identify any errors in your calendar that might interfere with the proper operation of General Ledger.
Save.
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R12 – How to Create a Bank and Branches in Oracle Apps

Many of you might have known it earlier, but people who don’t know, setup of Banks are moved into the Cash Management Module. The short name for Cash Management is CE.  In this Article, we will discuss how to Create Banks / Bank Branches , step by step.
Responsibility – Cash Management Super User
Navigation – Setup – Banks – Banks
Clicking on this opens an OAF page
Click on Create – opens the following.
Enter the necessary details required and click Save and Next.
Update the Bank Addresses by clicking on Create
Enter the information and click on Finish
Click on Save and Next
Click on Create Contact .
Enter the necessary information required.
Click Apply once the details are entered.
Click on Finish.  The bank details are here in this screen.
Bank is Created Successfully. Now we will see how to create a Branch underneath the Bank which we just Created.
Click on Create Branch icon
Click on Continue from the below screen
In the below screen enter the Branch Details as shown
Click Save and Next.
Click on Create button in the above screen to add the Branch’s address
Enter the address and then click Apply.
Click Save and Next
Click on Create Contact button to add the Contact Details
Click on Apply
Click on Finish.
To Create Account – click on the Icon below…
Click on Create button from the below screen
Enter the details in the screen below
Click on Continue
Enter the necessary details in the screen above
Click on Next
Click on Save and Next
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R12 – Step by Step – Retainage in Payables(AP)

Retainage refers to a portion of the payment that is withheld until the completion of a project. In that case the client doesn’t pay the contractor/party the retainage until all work on the project is complete. Retainage is negotiated upfront and is stated as a percentage or amount of the overall cost of the project.  There is no limit for Retainage.
Steps Involved in Retainage
1. Create a document style in Oracle Purchasing
2. Create Retainage Account through Payables
Let’s discuss the steps below …
1. Create a document style in Oracle Purchasing.
Responsibility: Purchasing
Navigation:  Setup –  Purchasing – Document Styles  – Create
Click – Create
Click Apply
2. Create a retainage account in Financials Options setup.
Responsibility: Payables
Navigation:  Setup – Options – Financials Options
Enter the retainage account to use during accounting.
Enter the Retainage Account –
  1. Create a procurement purchase order in Oracle Purchasing.
    Responsibility: Purchasing
    Navigation: / Buyer Work Center / Orders
    Select the complex PO document style in the Create drop down box or select ‘More’ to find the complex PO document style if it is not listed in the LOV.
  2.  Create –Choose  Complex PO
Click Go
Enter the Details here
Enter the Header info and click on Lines.
Enter the line information
Click on Update icon to enter the Financing  Options.
Enter the Distributions details
Click Save
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R12 – Difference between Draft, Final, etc in Create Accounting

Part -I: Online Accounting: (For single entity)

DRAFT will create Journal Entries, which are NOT final, which means they are NOT ready to be transferred to GL.
  • You can see the accounting in XLA_AE_HEADERS and XLA_AE_LINES.

         XLA_AE_HEADERS.accounting_entry_status_code is ‘D’
         XLA_EVENTS.process_status_code is ‘D’
         XLA_EVENTS.event_status_code is ‘U’ 

  • You can run create accounting on this transaction again and again, which will delete the old journal entries and create new ones.
  • You can’t transfer these journal entries to GL.
FINAL will create journal entries, which can be transferred to GL.

  • You can see the accounting in XLA_AE_HEADERS and XLA_AE_LINES.

         XLA_AE_HEADERS.accounting_entry_status_code is ‘F’
         XLA_EVENTS.process_status_code is ‘P’
         XLA_EVENTS.event_status_code is ‘P’

  • Once it is finally accounted you can NOT run create accounting on the particular transaction (specifically on that event).
  • You can transfer them to GL using Transfer Journal Entries to GL program.
FINAL POST will create journal entries in Final Mode, Transfer them to GL and Post them.
  • You can see the accounting in XLA_AE_HEADERS and XLA_AE_LINES.

         XLA_AE_HEADERS.accounting_entry_status_code is ‘F’
         XLA_EVENTS.process_status_code is ‘P’
         XLA_EVENTS.event_status_code is ‘P’

  • Once it is finally accounted you can NOT run create accounting on the particular transaction (specifically on that event).
  • It will transfer the journal entries to GL using Journal Import and you can find the data in GL_JE_HEADERS and GL_JE_LINES.

         XLA_AE_HEADERS.transfer_status_code is Y.
         It will post to gl_balances also (GL_JE_HEADERS.status is ‘P’).

Part -II: Create Accounting (Concurrent Program): (For more entities)

1. Accounting Mode: Draft
It is same as Draft online accounting.

2. Accounting Mode: Final, Transfer to GL: No
It is same as Final online accounting.

3. Accounting Mode: Final, Transfer to GL: Yes, Post to GL: No

  • It will create journal entries in Final mode, transfer them to GL.
  • You can see the accounting in XLA_AE_HEADERS and XLA_AE_LINES.
  • Once it is finally accounted you can NOT run create accounting on the particular transaction (specifically on that event).

         XLA_AE_HEADERS.accounting_entry_status_code is ‘F’
         XLA_EVENTS.process_status_code is ‘P’
         XLA_EVENTS.event_status_code is ‘P’

  • It will transfer the journal entries to GL using Journal Import and you can find the data in GL_JE_HEADERS and GL_JE_LINES.

         XLA_AE_HEADERS.transfer_status_code is ‘Y’
         GL_JE_HEADERS.status is ‘U’.

4. Accounting Mode: Final, Transfer to GL: Yes, Post to GL: Yes


It is same as Final Post online accounting.
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