Oracle Gl Questions

8/4/2019 Oracle Gl Questions

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ORACLE GL QUESTIONS

1. What is a flexfield? What are Key and Descriptive Flexfields ?

A flexfield is a field made up of subfields, or segments.

Two Types

A.Key Flexfields

B. Descriptive Flexfields.

A.Key Flexfields

Key Flexfields is a intalligent key code made up of sections, where one or more parts mayhave meaning. An intelligent key code uniquiely identifies an object such as on account,an asset, a part or a job. Intelligent keys are useful in applications because they are

usually easier for a user to remember and use than a unique number.

B.Descriptive Flexfields

Descriptive flexfields provide customizable expansion space on forms. We can usedescriptive flexfields to track additional information, important and unique to thebusiness, that would not otherwise be captured by the form. A descriptive flexfieldappears on a form as a singlecharacter, unnamed field enclosed in brackets. Each field or

segment in a descriptive flexfield has a prompt, just like ordinary fields.

2.What is the key flexfield name in GL ?


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Accounting Key flexfield

3.What is segment? What are the maximum segments that can be there for GL?

A segment is a single subfield within a flexfield. A segment is represented in database asa single table column.

Maximum 30 Segments

4.How many Flexfield Structures can you create for GL?

In Oracle General Ledger, we can have n no of flexfields structures.

5.What is a value Set ? What are the format types and validation types available in valueset ?

value set

A group of values and related attributes assigned to an account segment or to adescriptive flexfield segment. Values in each value set have the same maximum length,validation type, alphanumeric option, and so on.

Format types:

Character

Date

Date time

Standard Date

Standard Date time

Time


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Validation types:

Dependent

Independent

None

Pair

Special

Table

Translatable Independent

Translatable Dependent

6.what are flexfield Qualifiers and Segment Qualifiers ?

Flexfield Qualifiers

A flexfield qualifieridentifies a particular segment of a key flexfield. It is to identify aparticular segment for the purpose like security or computations. A flexfield qualifier actsas an "identification tag" for a segment.

Segment Qualifiers

A segment qualifier identifies a particular type of value in a single segment of a keyflexfield. A segment qualifier acts as an "identification tag" for a value. In the AccountingFlexfield, segment qualifiers can identify the account type for a natural account segmentvalue, and determine whether detail posting or budgeting are allowed for a particularvalue.

7. What are the flexfield Qualifiers and Segment Qualifiers available in GL ?

Flexfield Qalifiers


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Balancing Segment : Company

Natural Account Segment : Account

Cost Center Segment : Department

Inter Company Segment

Secondary Tracking Segment

Segment Qualifiers:

For Company : Allow Posting & Allow Budgeting

For Account : Allow Posting, Allow Budgeting, Account type, Cotrol Account &Reconciliation Flag

In Account type : Asset, Expenses,Liability, Ownership/Stockholders Equity & Revenue

8. What do you mean by Dynamic Inserts ?

A feature specific to key flexfields that allows to enter and define new combinations ofsegment values directly into a flexfield pop-up window. The new combination must satisfyany cross-validation rules, before your flexfield accepts the new combination.

9. What is a Roll up group ?

Rollup group is to identify a group of parent values for reporting or other application

purposes. It is used to create summary accounts for reporting purposes.

10. What are Security Rules and Cross Validation Rules ? How it can be set ?

Security Rules


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Security Rule to limit the access of different segment values for different responsibilities

To assign security rules:

1. Navigate to Security Rules window & Security rules

2. Assign it to application and responsibility that uniquely identifies the responsibility towhich we want to assign security rules.

Cross Validation Rule

A crossvalidation rule defines whether a value of a particular segment can be combinedwith specific values of other segments.Crossvalidation (also known as crosssegmentvalidation) controls the combinations of values that we can create when we enter valuesfor key flexfields.It is assigned to Chart of account

11. How do you define Parent-Child Relationship for segment values?

In segment value enable the parent value,define the child range and enter the low highranges of child value

12.What is Chart of Accounts? What are its pre-requisites?

chart of accounts

The account structure your organization uses to record transactions and maintain accountbalances.

Pre-Requisites for Chart of Accounts

1.Segment

2.Value Set

3.Flexfield Qualifier


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4.Values

5.Segment Qualifier

13.What are period types? What are period types provided in GL?

Period

A unit of time, such as one week, two weeks, or a month, on which your accountingcalendar is based.

Period types

1.Month

2.Year

3.Quater

4.Half yr

5.Half month

6.Week

14.What is an Accounting Calender ?

Accounting calender is to specify the number of periods in the year for the purpose oftransaction and manintaing accounting data

15.How do you open and close period in GL?

Navigate Open/close, in open/close window click open the next period push button toopen next period

To close the period choose close option from the open period lov


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16.Period status in GL:

Open: Journal entry and posting allowed.

Closed: Journal entry and posting not allowed until accounting period is reopened.Reporting and inquiry allowed.

Permanently Closed: Journal entry and posting not allowed. It cannot be reopened.Reporting and inquiry allowed.

Never Opened: Journal entry and posting are not allowed. This is the period preceding thefirst period ever opened in the calendar, or to any period that has been defined, but is notyet futureenterable. We cannot change this period status.

Future Entry: Journal entry is allowed, but posting is not. The period is not yet open, butfalls within the range of future-enterable periods designated in the Set of Books window.

We cannot change this period status without using the concurrent process to open theperiod.

17. What is Transcation calender?

This is a calender which determines which days in a week are business days and specifiesother non-business days,such as holidays.

Where it is used:

It must be assigned for set of books for which averege balancing is enabled to controltranscation posting.

18. What is Monetary currency?

Monetary currency is a currency which has monetary value

Eg: USD,INR etc..


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functional currency vs reporting currency:

The principal currency used to record transactions and maintain accounting data withinGeneral Ledger is functional currency where as the reporting currency is used for financialreporting.

19. What the types of conversion rates?

A process that converts foreign currency transactions in to functional currency.Types:

corporate

reporting

spot

user

Purposes:

For Year end Reporting purposes, the foreign currency balances need to be converted into

the functional currency balances.

20. What are the key functions provided by GL.

General Accounting Budgeting

Multiple Currencies Inter-company Accounting

Cost Accounting Consolidation

Financial Reporting

21. What is the Prerequisites for journal:

Period

Currency

Category

Source

22. What are all Different types journal?


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Reverse journal

Tax journal

Statistical journal

Suspense journal

Recurring journal

Foreign currency journal

23. How to do the Journal Import?

A General Ledger program that creates journal entries from transaction data stored in theGeneral Ledger GL_INTERFACE table.

Steps in journal import:

GL/Journal/Import/Run->Give specific selection criteria using request id and press import.

24. How to validate a journal import? How do you track errors during journal import?

Validation can be done through

-Batch Level Validation

-Journal Level Validation

-Journal Entry Line Level Validation

-Account Validation

-Effective Date Validation


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-Descriptive Flexfield Validation

Errors can be tracked through

-Batches

-Accounts

-Reference

-Journal lines

-Descriptive Flexifields

25. What is Mass allocation?

A single journal entry formula that allocates revenues and expenses across a group ofcost centers, departments, divisions, and so on.

Process steps for mass allocation:

Formula creation

Validatation

Generation

Submission

26. What are types of Recurring Journal:

Regular

Skeleton

Formula-statistical

Formula-currency


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27. What is meant by Journal Sources and Journal Categories?

It is an indicator by which General Ledger identifies and differentiates the origin of journalentries.

Journal Categories:

Journal entry categories specify what kind of transaction the journal entry represents. It isused to indicate the purpose or nature of your journal entry.

28.What is Suspense accounts, Summary accounts, and Intercompany account?

Suspense account is a balancing account which is used to post out-of-balance journal

entries, General Ledger automatically posts the journal difference against this account.summary account

An account whose balance represents the sum of other account balances. Summaryaccounts is used for faster reporting and inquiry as well as in formulas and allocations.

intercompany account

A general ledger account that is defined in an Accounting Flexfield to balanceintercompany transactions.

29 What is meant by encumbrance in oracle application?

EncumbranceThis is your any pre-expenditure, such as a purchase order, which will lead to a

charge against an account.

Commitment

A journal entry you make to record an anticipated expenditure, as indicated by

approval of a requisition.

Obligation

An encumbrance you record when you turn a requisition into a purchase order.

So...What Are Commitments?

Commitments are obligations for future expenditures made , and this should be for an

employee or vendor PO's. Commitments are tracked to help departments forecast theirexpenditures so that they do not exceed their budget available.

If you are using encumbrance you can get answer of these two question.

How much do I have left to spend?

Alert me if spending too much from allocated budget.


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How much I left to spend , will be based out of these formula

Funds Available = Budget - Actual - Encumbrances.

budget is always unaltered, Encumbrances is reversed when matching to AP invoice.

An entry is made to record anticipated expenditures of any type. We can create requisitionencumbrances and purchase order encumbrances automatically .We can have manualencumbrances also.

encumbrance type

Commitment

Obligation

Invoice

Labour

POInternal trading

30. Journal entry which dont want contra entry are:

suspense journal

Encumbrance journal

31) What is Journal Approval?

This is a method whereby we set up source of journal which requires approval orvalidation process.

enter journal ---validate if approval reqd approve it

if appvl not reqd

While creating the journal source Check the box REQUIRE JOURNAL APPROVAL

32) What is budgetary Control?


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This is the option used to have control over the amount spent against budgets.

Two types

Account wise

Journal entry source & category as a way of

33) What are the Oracle General Ledger Setups ?

1. Chart of Accounts

2. Account combinations(o)3. Period types4. Accounting Calendar5. Transaction Calendar(o)6. Currencies7. Set of Books8. Assign set of books9. Currency exchange rate types

34) What is Average Balance Processing

The amount computed by divinding an aggregate balance by the number of calendar daysin the related range.

The set up steps are in SOB Avg balances tab Check ENABLE AVERAGE BALANCES.

35) Budget

A predetermined estimate of cost for a task or cost center or a project


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36) Funding Budget

Funding Budget are those budgets in which we enforce budgetary control

Non-Funding Budget

This budget is used only for reporting purpose where we don't enforce any budgetarycontrol.

In SOB level and under budgetary control tab enable budgetary control then all budgetscreated willl be funding budget by default

37)Budget Organisation

An entity (depart or cost center or divisiion or other groups) responsible for entering and

maintainng budget data.

We can define budget orgn for the co then assign the appropriate a/c to each budget orgn.

Then that budget orgn becomes responsible for entering and maintaining budget data.

38)Budget Formulas

A mathematical expression used to calculate budget amounts based on actual results,other budget amounts and statistics.

With Budget formulas we can automatically create budgets using complex equations,calculations and allocations.


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39)Mass Budget

MassBudgeting gives you the flexibility to allocate budget amounts to

ranges of accounts throughout your organization using simple

formulas.

Process Steps:

GL/Budgets/Define/Mass

40)Diff budget journal and budget amount

We use budget journal for funding budget

We can have audit trail only if we enter budgets thru budget journals

Budget amount is used for non-funding budget

41) How to transfer budgt amounts

Under a budget we can opt to transfer budget amount from one orgn to anotherorgn(account wise also)

Gl/Budget/transfer/select the budget from which budget we have to transfer, then choosefrom budget orgn

and TO orgn, then allocate the a/c code combination and click transfer amounts.


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42) Upload Budget

We can upload amounts from budgets developed from an outside source (eg spreadsheet) and transfer it to the GL Budget Interface table.

The utility used is ADI Application Desktop Integrator. We can upload budget amounts toyour budget orgn from any existing a/c that falls

within the a/c ranges assigned to your budget orgn. At your request, gl uploads yourbudget interface data and automatically updates your fincl records

to include this budget informtn.

Once u upload ur budget data u can review the budget spread sheet upload execution

report for the status of your uploaded budget infn.

43)Budgetary Control

It is an option used to control actual and anticipated expenditure against a budget

What is online funds checking

Funds check is the process of verifying that sufficient funds are available to cover anexpdre.

44) Funds check level Options

The Options for budgetary control settings are as follows:

Absolute : If this is selected the transactions are rejected unless funds are available


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Advisory : If this is selected the transactions are approved even when no funds orinsufficient funds available (with warnings)

None : ------------------------------do------------then all transactions are approved.

45) Budgetary control group

We define one or more budg control groups to attach to sites or users. We can createbudg control groups by specifiying funds check level.

By journal source and category, together with tolerance %, amount, and an overrideamount (per journal) allow for insufficient funds transactions.

We can also create additional budgetary control groups to give people different budgetary

control tolerances and abilities to override

insufficient funds transactions.

46) what do you meant by encumbrance Accounting ? What are its related setup steps ?what are the types of encumbrance

encumbrance

An entry made to record an anticipated expenditure of any type the primary purpose oftracking encumbrances is to aviod overspending a budget.

Setup Step

Enable the budgetary control flag for a set of books.When you enable budgetary controlflag in set of books, the system automatically creates encumbrance from requistion ,purchase orders and other transcation from feeder system such as purchase and payable.

1. navtigate to the encumbrance type


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2. enter name and description

3. enable encumbrance type

4. save your work.

when you do not enable budget control flag ,you can still enter manually encumbrance viajournal entry. you cannot do encumbrance from requisition and purchase order.

Encumbrance Type

lets you classify and track

commitment : A encumbrance you record when complete a purchase requisition.

obligation : A encumbrance you record when we turn the purchase requisition intopurchase.

47 )How do you create encumbrance?

you can create encumbrance either manual or automatic

48) How to view funds available for Budget Transcations?

1. Navigate to the funds avaiable Inquiry window

2. Enter the budget Name for the enquiry .

3. Enter the period name for the inquiry

4. select an amount type.


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5. Enter an encumbrance type. you can view all encumbrance type

by entering ALL.

6.Do one of the following:

1. choose the find button to query all acounts that meet your

selection critieria.

2. Navigate to the funds avaiable region and query a partial or complete account.

49) what is year end Encumbrance Processing ? How is it performed?

Performing Year - end encumbrance processing

Performing year-end processing is to identify outstanding purchase order and requisitionencumbrance , To cancel some or all of these encumbrance and to carry forwardencumbrance , budget , and funds available balance in the new fiscal year

You can carry forwards encumbrance into the fiscal year. if you do not carry forwards

encumbrance , you might want to cancel exisiting requistion and purchase order behindthe encumbrance.

To perform year end encumbrance processing.

1. Identify outstanding encumbrance in oracle Purchasing to determine whichencumbrance to cancel or to carry forward.

2. Review purchase order and reqisition encumbrance by requesting the following reports.

a) Encumbrance Details Report in oracle Purchasing

b) open encumbrance balance with transaction details report.

3. Define the MassCancel criteria in oracle purchase to select the encumbrance you wantto cancel.


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4. Run MassCancel in oracle purchasing to cancel selected outstanding purchase orderand requisition encumbrance.

5. Post all encumbrance , budget , and actual journal entries.

6. Request the encumbrance Trial balance report in general ledger to review in details

encumbrance balance and activity for the general ledger accounts before year -end carryforward.

7. close the last period of the current fiscal year ,

8. open the first period of the fiscal year.

9. open the next encumbrance year

10. open the next budget year.

11. carry forward year -end encumbrance.

12. Request the encumbrance Trial balance Report.

50) How can you inquire Account Balance?

navigation path

Inquiry / account

by giving the date , account number , we can see the account balance for period.

51) What is step-down AutoAllocation?

You must create journal batches in a specific sequence when using step -downautoallocation. order your journal batches so that the posted result of one step are used inthe next step of the AutoAllocation set.

52) what are Statistical Accounts?


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Defining Statistical Accounts

General Ledger lets you maintain statistical as well as monetary balances for any account.However, in some cases you may want to set up separate accounts specifically for

statistical information. For example, you might want to enter the units sold statistic in yourSales Revenue and Sales Expense accounts, but enter the square feet statistic in only asingle account, say the SQFT account.

53) what are GL Tax Assignments? what are the level of tax calculation?

You can assing Input tax - AP and Output tax - AR , for general ledger journal entry

level of tax calculation

1) set of books level

2) account level

54) what is Mass Maintenance ? What are the business Rules for Mass Maintenance?

use Mass maintenace to move balance by period from one account to another or mergerbalance by period from multiple accounts into a single account.. The moved / mergedbalances are added to the existing balance in your target accounts.

Archieve and purge account balance , as well as journal batches, entries , lines, andassociated journal reference for one or more accounting periods, provided the periods arepermanently closed.

you can arhieve and purge actual , budget, or encumbrance balances. In addition , fortranslated actual and budget balances

55) what is Multi-currency accounting ? what are the setup steps?


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One set of books will have functional currency, when we want Multi-currency accounting ,we have set foreign currency in another set of books. same company will have two set ofbooks , one for functional currency, and another foreign currency.

setup step

1) create a another set of books with chart of account , calendar , currency. ( currencyotherthan funtional currency)

2) go to the Multiple Reporting currenies tap , enable as Reporting set of books

3) Assign the reporting set of books to primary set of books , define conversion type ,rate , application .

56. What are the three types tables available in Oracle Applictions

Master Table: Store Static data,. This is shared with in each module as well asacross all of the Oracle financial application modules ex. ACCOUNTS,SUPPLIER, CUSTOMER etc.

Setup Table : it store setup data. That is never shared betweenapplications such as application parameters and LOOK UP tables.

Transaction Tables: these tables stores day-to-day transaction data suchas payables invoices, journal entries etc.

10.


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Oracle Gl Questions

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