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How to Setup iExpenses In R12

iExpenses is basically an extension Oracle Payables. Employee and Contingent Worker expense reports become supplier invoices and get paid from Payables. You will need following responsibilties to set up Internet Expenses: Payables Manager, Internet Expenses Setup and Administration, System Administration, Application Developer, and AX Developer. If you are also planning on charging expense reports to projects, you will also need Project Billing Super User and General Ledger Super User responsibilities. You will also need access to Oracle Workflow Builder to customize the Expenses workflow and Project Expense Reports Account Generator.

Setups for IExpenses : 

1.Define MOAC
2.Define Job
3.Define Position.
4.Define Employee.
5.Define Financial Options.
6.Define Expenses Template.
7.Define Payable Options.  
8.Assign Cost Center Flexfiedl qualifier to Department segment or Costcenter segment.
9.Define Signing Limits.
10.Assign Profile Option to IExpenses Responsibility.

 1.Define MOAC – See this article
  • Define Responsibilities for GL, AP,PO,HRMS,IEXPENSES
  • Define Business Group.
  • Define Ledger.
  • Define Operating Unit.
  • Define Security Profile.
  • Run Security List Maintenance Program. 
  • Assign Security Profile to Responsibilities. 
  • Run Replicate Seed Data Program.  

2.Define Job
Navigation: HRMS –> Work structures –> Job –> Description.
Click on New button. 


Enter the Job Name and Code.


 Save.
 3.Define Position.
Click on New button. 



Enter Position number and name ,type, Organization,job,and Status of the position.



Save.

Note: If you want create more position please follow same as above procedure.

4.Define Employee.

Navigation: HRMS –> People –> Enter and Maintain.

Click on New. 

 Enter Employee Last name,gender,action and birth date.


Save and click on Assignments. 

Enter HR Organization name,job name and Position name.

Save.

Click left lov button and select the purchase order information.

 Enter the primary ledger name and default expenses account.


Save. 

5.Define Financial Options.

Use the Financials Options window to define the options and defaults that you use for your Oracle Financial Application(s). Values you enter in this window are shared by Oracle Payables, Oracle Purchasing, and Oracle Assets. You can define defaults in this window to simplify supplier entry, requisition entry, purchase order entry, invoice entry, and automatic payments. Depending on your application, you may not be required to enter all fields.
Although you only need to define these options and defaults once, you can update them at any time. If you change an option and it is used as a default value elsewhere in the system, it will only be used as a default for subsequent transactions. For example, if you change the Payment Terms from Immediate to Net 30, Net 30 will be used as a default for any new suppliers you enter, but the change will not affect the Payment Terms of existing suppliers.

Navigation: Payables –> Setup –> Options –> Financial.

  
 Click on New button.

Accounting Tab:
You are required to enter defaults for the Accounting Financials Options in the Accounting region. 

Accounts Like:
Liability, Prepayment, Discount Taken.  

Supplier-Purchasing Tab:
If you do not also have Oracle Purchasing installed, you do not need to enter defaults in the Supplier- Purchasing region.


 Encumbrance Tab:
If you do not use encumbrance accounting or budgetary control, you do not need to enter defaults in the Encumbrance region. 


Tax Tab:

If your enterprise does not need to record a VAT registration number, you don’t need to enter defaults in the Tax region.

Human Resources Tab:
If you do not have Oracle Human Resources installed, you are not required to enter defaults in the Human Resources region.

 Save.

 6.Define Expenses Template.
Navigation: Payables –> Setup –> Invoice –> Expenses Report Templates.

Enter operating unit name,template name and enable the enable for internet expenses. 
And finally enter your expenses.


Save. 

7.Define Payable Options.  
Navigation: Payables –> Setup –> Options –> Payable Options.

Click on Find. 

  
Click on Expense Report Tab. 


Default Template. The default expense report template that you want to use in the Payables Expense Reports window. You can override this value in the Expense Reports window. A default expense report template appears in the Expense Reports window only if the expense report template is active.

Apply Advances. Default value for the Apply Advances option in the Expense Reports window in Payables. If you enable this option, Payables applies advances to employee expense reports if the employee has any outstanding, available advances. You can override this default during expense report entry.
If you use Internet Expenses and you enable this option, then Expense Report Export applies all outstanding, available advances, starting with the oldest, up to the amount of the Internet expense report.

Automatically Create Employee as Supplier. If you enable this option, when you import Payables expense reports, Payables automatically creates a supplier for any expense report where an employee does not already exist as a supplier. If the supplier site you are paying (HOME or OFFICE) does not yet exist, Payables adds the supplier site to an existing supplier. Payables creates a HOME or OFFICE supplier site with the appropriate address, depending on where you are paying the expense report. The Home address is from the PER_ADDRESSES table, and the Office address is from the HR_LOCATIONS table. Payables creates suppliers based on the defaults you select in this region and employee information from the Enter Person window. You can review suppliers and adjust any defaults in the Suppliers window.
If you do not enable this option, enter an employee as a supplier in the Suppliers window and link the Employee Name/Number to the supplier before you use Expense Report Export. Payables cannot export expense reports without corresponding suppliers, and lists them on Export Results page.
Payment Terms. Payment terms you want to assign to any suppliers that you create from employees during Expense Report Export.

Suggestion: Define and assign immediate payment terms for your employee suppliers.

Pay Group. Pay Group you want to assign to any suppliers that you create from employees during Expense Report Export. You can define additional values for Pay Group in the Purchasing Lookups window.
Payment Priority. Payment priority you want to assign to any suppliers that you create from employees during Expense Report Export. A number, between 1 (high) and 99 (low), which represents the priority of payment for a supplier.

Hold Unmatched Expense Reports. This option defaults to the Hold Unmatched Invoices option for the supplier and supplier site for any suppliers Payables creates during Expense Report Export.
When Hold Unmatched Invoices for a supplier site is enabled, Payables requires that you match each invoice for the supplier site to either a purchase order or receipt. If you enable this option for a site, then Payables applies a Matching Required hold to an invoice if it has Item type distributions that are not matched to a purchase order or receipt. Payables applies the hold to the invoice during Invoice Validation. You cannot pay the invoice until you release the hold. You can release this hold by matching the invoice to a purchase order or receipt and resubmitting Invoice Validation, or you can manually release the hold in the Holds tab of the Invoice Workbench. Payables will not apply a hold if the sum of the invoice distributions by accounting code combination is zero.

Save. 
 8.Assign Cost Center Flexfiedl qualifier to Department segment or Costcenter segment. 

Navigation: Payables –> Setup –> Flexfield –> Key –> Segments.

Query your COA

Un Freeze Flexfield Definition and click on segments.

 select Cost Center segment and then click on the Flexfield Qualifiers.

Enable cost center segment. 
Save.

 9.Define Signing Limits.
Navigation: Payables –> Employees –> Signing Limits.



10.Assign Profile Option to iExpenses Responsibility.


Navigation: System Administrator –> Profile –> Systems.

Please set the following Profile options in Site level as well as Responsibility level.   



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List of Payment Methods In R12

A funds disbursement payment method is a medium by which the first party payer, or deploying company, makes a payment to a third party payee, such as a supplier. You can use a payment method to pay one or more suppliers. Oracle Payments supports several payment methods for funds disbursement, including the following:

  1. Check
  2. Electronic
  3. wire
  4. Clearing

Check: 
You can pay with a manual payment, a Quick payment, or in a payment batch.

Electornic:
Electronic An electronic funds transfer to the bank of a supplier.You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file during payment batch creation. If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.

Wire:
Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of a suplier.A payment method where you pay invoices outside of Payables by notifying your bank that you want to debit your account and credit your supplier’s account with appropriate funds. You provide your bank with your supplier’s bank information, and your bank sends you confirmation of your transaction. Your supplier’s bank sends your supplier confirmation of the payment. You then record the transaction manually.

Clearing:
Clearing Payment for invoices transferred from another entity within the company without creating a payment document.Payment method you use to account for intercompany expenses when you do not actually disburse funds through banks. You do not generate a payment document with the Clearing payment method. When you enter the invoice, you enter Clearing for the payment method.You can record a Clearing payment using a Manual type payment only. 

Navigation: Payable Manager –> Setup –> Payment –> Payment Administrator.

Click on Go To Task.


 Click on Create button.

Enter the Payment Method name and code and then click on Next.


 Select the respective responsibilities which we want shown this payment method in these responsibilities.


Click on Next, Next, Finish.

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Deferred COGS Accounting in R12

The deferred COGS of goods account is the new feature introduced in Release 12. The basic fundamental behind the enhancement is that the COGS is now directly matched to the Revenue. The same was not possible till now.

Prior to this enhancement, the value of goods shipped from inventory were expensed to COGS upon ship confirm, despite the fact that revenue may not yet have been earned on that shipment. With this enhancement, the value of goods shipped from inventory will be put in a Deferred COGS account. As percentages of Revenue are recognized, a matching percentage of the value of goods shipped from inventory will be moved from the Deferred COGS account to the COGS account, thus synchronizing
the recognition of revenue and COGS in accordance with the recommendations of generally accepted accounting principles.

The Matching Principle is a fundamental accounting directive that mandates that revenue and its associated cost of goods sold must be recognized in the same accounting period. This enhancement will automate the matching of Cost of Goods Sold (COGS) for a sales order line to the revenue that is billed for that sales order line.

The deferral of COGS applies to sales orders of both non-configurable and configurable items (Pick-To-Order and Assemble-To-Order). It applies to sales orders from the customer facing operating units in the case of drop shipments when the new accounting flow introduced in 11.5.10 is used. And finally, it also applies to RMAs that references a sales order whose COGS was deferred. Such RMAs will be accounted using the original sales order cost in such a way that it will maintain the latest known COGS recognition percentage. If RMAs are tied to a sales order, RMAs will be accounted for such that the distribution of credits between deferred COGS and actual COGS will maintain the existing proportion that Costing is aware of.  If RMAs are not tied to a sales order, there is no deferred COGS.

SETUP and ACCOUNTING :
To set the deferred COGS account.

Inventory — Setup — Organization — Parameters — Other Accounts
A new account is added which is referred as the Deferred COGS accounts. 

Please note that when upgrading from a pre R12 version the DEFERRED_COGS_ACCOUNT will be populated if it is null with the cost_of_goods_sold_account on the organization parameter. This can then be changed accordingly if a different account is required.

NEW ACCOUNTING :

Release 12 : 
When a Sales order is shipped the following accounting takes place:

Inventory Valuation Account : Credit.
                   Deferred COGS account : Debit

Once the revenue is recognised, you would need to decide the percentage you wish to recognize the Revenue. A COGS recognition transaction will be created to reflect a change in the revenue recognition percentage for a sales order line.

The steps to generate such transactions are as follows:
1. Run the Collect Revenue Recognition Information program. This program will collect the change in revenue recognition percentage based on AR events within the user specified date range.
2. Run the Generate COGS Recognition Events. This program will create the COGS recognition transaction for each sales order line where there is a mismatch between the latest revenue recognition percentage and the current COGS recognition percentage.

Note that users can choose how often they want to create the COGS Recognition Events.

Navigation to run the COGS recognition request :
– Cost > COGS Recognition > Collect Revenue Recognition Information
– Cost > COGS Recognition > Generate COGS Recognition Events
– Cost > View Transactions > Material Transactions

The distribution for the COGS Recognition transaction associated with the Sales Order transaction now would be as follows:

       Deferred COGS : Debit revenue percentage
       COGS               : Credit (Actual revenue percentage )

Thus, essentially the recognized COGS balance is to move the value from Deferred COGS to COGS.

This particular COGS recognition transaction actually correspond to a revenue recognition percentage change.

You can view the transactions as :
Navigation:
– Cost > View Transactions > Material Transactions > Distributions

A new COGS Revenue Matching Report shows the revenue and COGS information of sales order that fall within the user specified date range by sales order line

SIMPLER TERMS ( Table level details ) : 
Once the whole cycle is complete we will have 2 transactions lines in mtl_material_transactions.

1. Sales Order
2. COGS Recognition transaction

Accounting will be in mtl_transaction_accounts and the Subledger accounting tables as follows:

Transaction 1:
Inventory Valuation Account : Credit. (item_cost)
             Deferred COGS account : Debit (item_cost) 

Transaction 2:
Deferred COGS : Credit (Actual revenue percentage)
              COGS : Debit (Actual revenue percentage ) 
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MOAC Setups (Multi-Org Access Control) in R12

Multi-Org Access Control’ (also known as ‘MOAC’ in short form) is an enhanced feature of Release 12. MOAC enables users to access secured data in multiple operating units from a single responsibility. End-Users can access/transact data within several operating units based on a Security Profile attached to the responsibility.   

                                                            MOAC Setups
1. Define Responsibilities for GL, AP,AR,FA,CM.
2. Define Business Group.
3.Define Ledger.
4.Define Operating Unit.
5. Define Security Profile.
6. Run Security List Maintenance Program.
7. Assign Security Profile to Responsibilities.  
8. Run Replicate Seed Data Program. 

 1. Define Responsibilities for GL, AP,AR,FA,CM.

Navigation: System Administrator –> Security –> Responsibility –> Define.

Responsibility for GL.

 Responsibility for HRMS.


   Responsibility for AP.

    
  Responsibility for AR.


Responsibility for FA.

                                                     

Responsibility for CM.


Setup 2: Define Business Group
Navigation: HRMS –> Work Structures –> Oraniazation –> Description.
Click on New button.


 Click on Others.
Select Business Group information.

  
Click on Ok and Save.

Once we created the business group system default assigned the business group to your HRMS Responsibility.

 Assign Business group to your HRMS Responsibility.
Navigation:  System Administrator –> Profile –> Systems.

Setup 3: Define Ledger.

Setup 4: Define Operating Unit.

Setup 5: Define Security Profile.
The security profile determines which applicant, employee, contingent worker and other person type records are available to holders of the responsibility the profile is linked to.
You can define security profiles in the Security Profile window to give access to a single business group or the Global Security Profile window (to allow users to access records from more than one business group).
Using the Global Security Profile window does not give Oracle HRMS users access to records from multiple business groups within the same responsibility; users must still switch responsibilities to see records from different business groups. However, HRMS users can see a restricted set of information in records from more than one business group within a single responsibility if the HR:Cross Business Profile profile option is set to Yes. In addition, you can use people management templates to query and update worker information across business groups using a single responsibility.
Navigation: HRMS –> Security –> Profile.
Click on Save.
Note: The above security profile will access only single business group information.

 6. Run Security List Maintenance Program.

Navigation: HRMS –> Processes and Reports –> Submit Processes and Reports —> Single Request
Click on Ok and click on Submit.
Global Security Profile:
  
By using Global security Profile we can access one or more business group at a time under single Responsibility.
Navigation: HRMS –> Security –> Global.
 Click On save.
 Run Security List Maintenance Program.
Navigation: HRMS –> Processes and Reports –> Submit Processes and Reports —> Single Request

Click ok and then submit.

7. Assign Security Profile to Responsibilities.
Navigation: System Administrator –> Profile –> System
Click on Find.
  Save.
8. Run Replicate Seed Data Program.
Navigation: System Administrator –> Request –> Run –> Single Request
 Click ok and submit.


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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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