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INDEXKey Flex Fields -------------------------------000Flex Field Qualifiers-------------------------000Segment Qualifiers--------------------------000Compile Structure---------------------------0004 Cs---------------------------------------------000Value sets--------------------------------------000Currency---------------------------------------000Calendar---------------------------------------000Primary Ledger-------------------------------000Create Responsibility-----------------------000Open / Close Periods-----------------------000Journal Source-------------------------------000Journal Category----------------------------000Enter Journals-------------------------------000Post Journal

16. Reverse Journal 17. Suspense Journal 18. Recurring Journal19. Foreign Currency Journal20. Auto post 21. Auto Reversal

R12 GL Setup12R12 GL Setup3R12 GL SetupKey Flex FieldsFLEX FIELD QUALIFIERS & Segment Qualifiers IN GLFlex Field Qualifiers (Assign to Segments)

Balancing Segment FFQ2. Cost Center Segment FFQNatural Accounts Segment FFQInter Company Segment FFQSecondary Tracking Segment FFQManagement FFQ

Segment Qualifiers (Assign to Segment values)Allow BudgetingAllow PostingAccount type (Assets / Liability / Expenses / Revenue / Ownership)Third party controlReconcile

4R12 GL SetupAssignment of FFQ to SegmentsCompanyBalancing Segment FFQInter company Segment FFQ

DepartmentCost Center Segment

AccountsNatural Accounts Segment FFQ

Note:

One FFQ we can use only one time.One segment we can assign to more than one FFQ.We can create maximum 30 segments apart from General Ledger Segment (Total 31).5R12 GL SetupCompile StructureSegment separator is used to separate the segments in the code combination. (Dash, Period, Pipe and Custom).

Allow Dynamic Inserts: If we enable Allow Dynamic inserts, then we are able to enter the all possible code combinations at the time of transaction entry. If we want to know how many code combinations in our structure, multiply the number of values across the segments.If we disable allow dynamic inserts, we can not enter all possible code combinations at the time of transaction entry.

Enable Freeze Flex Field Definition and click on Compile button.The structure information will get stored in a tabular form GL_Code_Combinations_KFV. R12 GL Setup6Primary Ledger (Set of Books) 4 Cs 4 Cs

Chart of Accounts (Structure, Segments & Segment values)CurrencyCalendarAccounting Convention Method (Accrual / Cash)

Pre requisites for Chart of Accounts

Value SetStructure and SegmentsSegment Values

Value Set:

Value set is Set of rules or properties which are going to enforce or attach to segments.Upon enforcing or attaching value set to the Segment, your segment will behave or act according to the value set.

7R12 GL SetupContents of Value SetList TypeSecurity TypeFormat typeValidation Type3 Types3 Types7 Types8 Types1. List of Values1. No Security1. Char1. Dependent2. Long List of Values2. Hierarchical2. Date2. Independent3. Pop List3. Non Hierarchical 3. Date Time3. None4. Number4. Pair5. Standard date5. Special6. Standard date time6. Table7. Time7. Translatable Independent8. Translatable DependentR12 GL Setup8Validation Types in Value SetIndependent: If validation type is independent, we can define values for the value set and we can use at the time of transaction time.

Dependent: If validation type is dependent, then we cannot define values for value set. Dependent values are always depending on the independent value set.

None: If validation type is None, we can not define values for the value set. User can enter desire value at the time of transactions entry.

Pair & Special: Used in the programs to add additional pop up window for parameters.

Table: If validation type is table, then we can not define values but we can use values from tables.

Translate dependent & Independent: We use to translate the segment values into desire language.R12 GL Setup9R12 GL Setup10CalendarR12 GL Setup11Period TypePeriod types are used in defining Accounting Calendar.

Each ledger has an associated period type.

When you assign a calendar to a ledger using Accounting Setup Manager, the ledger only accesses the periods with the appropriate period type.

You can assign up to 366 accounting periods per fiscal year for any period type, and maintain actual balances for those periods. For example, you could define a Week period type and specify 52 periods per year.

However, for budgets you can only use the first 60 periods.

General ledger have 3 standard period types:1. Month2. Quarter3. Year

R12 GL Setup12Calendar StatusCalendar Status:

OpenClosedPermanently ClosedFuture EntryNever Opened

Year Types

1. Calendar2. FiscalR12 GL Setup13Define Accounting CalendarAccounting Calendar Determines the accounting periods for General ledger application where we enter transactions.

Step: 1Define Period TypeNavigation:Setup Financials Calendars Type

Step:2Define Accounting CalendarNavigation:Setup Financials Calendars Accounting

Enter Name and Description your accounting CalendarEnter the periods as per period types you chooseChoose period typeEnter from To datesEnable adjusting Check box for Adjusting periodValidate your current calendar

R12 GL Setup14Mandatory Accounts for Set of Books1. Retained Earnings Account (Ownership)2. Translation Adjustment Account (Expenses)3. Suspense Account (Assets / Liabilities)4. Rounding Difference Account (Expenses)5. Reserve for Encumbrance (Ownership)6. Net Income (Expenses / revenue)

Note:

From the above Retained Earnings account is mandatory to create primary ledger. Remaining 5 accounts are optionally mandatory based on the requirement.R12 GL Setup15Define Primary LedgerLedger is a reporting entity in which we will record the all our organization transactions and also it will determine Chart of accounts, Currency, Calendar and Accounting Convention method.

Step:1Define Retained Earnings Account. (Ownership)Navigation:Setup Financials Flex Fields Key Values

Step:2Define LedgerNavigation:Setup Financials Accounting Setup Manager Accounting Setup R12 GL Setup16R12 GL Setup17Click on Create Accounting Setup tab

Enter your desired Primary Ledger NameChoose Chart of Accounts, Calendar, currency and Sub ledger accounting method

Click on Update accounting options

Update ledger options by choosing Retained earnings account, then it will turn as with your Primary ledger name.And also update : 1) Balance segment values 2) Reporting Currency 3) Sequencing 4) Sub ledger accounting options

Step: 3Create Legal Entity

You will find one more legal entity as Establishment

Query your primary ledger and add legal entity to assign LE to Ledger.

Define Primary Ledger

Now you will find 6th option as Operating unitBy following this legal entity registration which companies are using this legal entity registration we have to assign them.Add balancing segment values to Legal entity level.Now system will add one more option Inter company accountsAt this point you can remove some legal entitiesSay CompleteNow you can not remove any information.Update operating unit option and also inter company option.

Note: Structure created under Accounting Flex Field will added to GL Ledger KFF. It will adding one more segment called as Ledger as a mirror. This is used at mass allocation purpose.

R12 GL Setup18Create ResponsibilityNavigation:System Administrator Security Responsibility Define

Menu: Menu will determine what are all the windows we are going to having access under the particular responsibility.

2) Request Group:It will determine which are all programs will be available under particular responsibility.

3) Profile option:Profile option is a security feature to restrict the access into application. By using profile option we will assign ledger to the responsibility.Navigation: System administrator Profile System.

R12 GL Setup19Open / Close periods in GLStep: 1Open the periodsNavigation:Setup Other Open / CloseTo change the status of period select and change.

There are 5 types of period status:StatusEntryPostingNever openedXXOpen ClosedXXFuture XPermanently ClosedXXR12 GL Setup20Journal SourceIt is a Journal Component, it is used to identify the ORIGIN of the journal.To define journal source: Setup Journal Sources.

When we import data from legacy systems to GL we require source names.

Importing journal Reference:To import detailed information from summary journals we use this option.

Require Journal approval:This field is used to get the journal approval by higher management for different journal sources.

Import using key: This is used to define whether journals will be imported using source key or not.

Freeze Journals: To freeze the journal source, preventing users from making changes to any un posted journals from that source, or reversing journals for Sub ledger Accounting journal sources.R12 GL Setup21Journal SourceEffective date Rule:1. Fail2. Leave alone3. Roll Date

Fail: Journal Import will reject transactions when the effective date is not a valid business day. No posting takes place.Leave Alone: Journal import will accept all transactions regardless of the effective date.Roll Date: Journal Import will accept the transaction, but roll the effective date back to the nearest valid business day within the same period. If there is no prior valid business day within the same period, the effective date is rolled forward.

Note: The Effective Date Rule field will not appear unless you have average balance processing enabled for at least one ledger.

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Journal categoryJournal Category determines the purpose or type of the journal entry.When you enter a journal you specify a journal category.

Examples:AP InvoicesAP PaymentsAdjustmentBudgetIntercompanyInventoryPaymentsPayrollReceiptsYear end close.

R12 GL Setup24Enter JournalsIt is used to record the day to day business transactions. It contain Dr and Cr lines. Always debit must be equal to credit.You can enter several types of journal entries, including foreign currency journals, statistical journals, and intercompany journals.

Journals can be created in two ways:1. Manual 2. Import

manual: Enter journals manually by using navigator Navigation to enter Journal:Journals EnterManual journals can be enter in 2 ways:1. individual Journal 2. batch Journal.

R12 GL Setup25Enter JournalsJournal body contains two areas:1. Header 2. LinesWe have 2 types of methods: 1. Standard Journal 2. Average JournalsWe have 3 types of balances: 1. Actual 2. Budget 3. Encumbrance.

R12 GL Setup26Post JournalNavigation:Journals PostUse Post button available in Journal windowThrough Navigator (Journal Post)

R12 GL Setup27Reverse JournalWe generally reverse that journal, which got entered also got posted, where you find there is an error in the posted entry.Once the journal is got posted it wouldnt allow the user to make any changes.The only solution or remedy is to reverse the journal.In order to reverse the journal, first review the journal, use reverse button available in the journal window, also indicate the period where the reversal entry should get created.

Navigation:Journal EntryOnce we reverse the journal system will create one un posted journal, showing the earlier debit balance to credit side & earlier credit balance to debit side.Post this un posted journal.After the journal reversal the particular account in the journal will show the balance Zero.

Reverse is of two types:Change sign (Profile option is required)Switch Dr/Cr.

R12 GL Setup28Suspense JournalAs per Accounting principles Debit amount should always equal to Credit amount for the same Company Value.If both amounts are not equal, the difference amount will go to Suspense Account.

Setup required for Suspense Journal:

Create Suspense Account (Expenses / Revenue)Navigation:Setup Financials Flex Fields Key Values.

Enable suspense account feature at ledger level under journal processing tabNavigation: Setup Financials Accounting setup manager Accounting setup

Define Suspense account RulesNavigation:Setup Accounts Suspense

Create Journal / Review JournalNavigation: Journal Enter.

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Recurring JournalJournals which are repeating every accounting period is called a recurring journal.

Recurring journals are 3 types:Standard Recurring JournalSkeleton Recurring JournalFormula Recurring Journal

Standard Recurring Journal: Under standard recurring journal method same accounts with the same amounts will be effected with the each accounting period. We know account and amount already.

Skeleton Recurring Journal:Under skeleton journal method partial information will be entered at the time of recurring journal creation. We know the account but do not know the amount.

Formula Recurring Journal:Using formula recurring method, journal lines amounts will be calculated by recurring journal program based on simple formula.

R12 GL Setup31Recurring Journal SetupStep:1Define Recurring JournalNavigation:Journals Define Recurring.

Line:1 Enter Expenses account (Debit Account) and the amount for Standard Recurring JournalEnter only Debit account for Skeleton recurring, do not enter amountEnter debit account & enter the formula for the amount for Formula recurring journal

Line: 2Enter the credit accountWe can enter 9999 lines in a recurring journal. In which 9998 lines are for debit lines and only one line is for credit line. We call this line as offset account line. Hence we have to enter line 2 as a offset line and key in the number 9999 in line 2.Do not enter amount for line 2. System will add all the debit lines amount and consider the credit amount as offset account.If you wish to enter more credit lines, we have to give negative sign for the lines, for example -9998, -9997 etc.

R12 GL Setup32Recurring Journal SetupStep: 2Generate the recurring journal = Click on Generate buttonSay SubmitSchedule the journals for recurring.Enter parameters Run program.Step: 3Ensure Concurrent program completed NormalView Request

Step: 4Query the recurring journal and post.Journal Enter.With the above report system will generate un posted journals in GL., with the source : recurring.Post the journals after review.R12 GL Setup33Foreign Currency JournalStep: 1Define Conversion Rate TypeNavigation:Setup Currencies Rates Types.Enter currency types which you want conversionChoose conversion rate typeEnter the daily rates by choosing Enter by date range

Step: 2Define foreign currency rates.Navigation:Setup Currencies Rates Daily (USD to INR)

Step : 3Enter JournalNavigationJournal EnterChoose Currency as foreign currencyChoose Exchange rate typePost the journal

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Auto PostWe Can post the journals automatically by specifying the some criteria in Auto post criteria set.

Criteria could be : combinations of ledger or ledger set, journal source, journal category, balance type, and period.

Once you define an Auto Post criteria set, run the Auto Post program to select and post any journal batches that meet the criteria defined by the criteria set.

You can also schedule the Auto Post program to run at specific times and submission intervals.

You can submit the Auto Post program or schedule Auto Post runs directly from the Auto Post Criteria Sets window. Alternatively, you can use the Submit Request window.R12 GL Setup36Auto Post = SetupStep:1Define Auto post Criteria SetNavigation:Setup Journal Auto postName your auto post criteria setSelect Submit all priorities in orderChoose:Ledger or ledger SetSourceCategoryBalance typePeriod

Step: 2submit or Schedule the Program Automatic PostingNavigation:View Request

R12 GL Setup37Auto ReversalIf you routinely generate and post large numbers of journal reversals as part of your month end closing and opening procedures, you can save time and reduce entry errors by using Automatic Journal Reversal to automatically generate and post your journal reversals.

Prerequisites for Auto Reversal:The journal balance type is Actual.The journal category is enabled to be Auto reversed.The journal is posted but not yet reversed.The journal reversal period is open or future enterable.

Note: Automatic Journal Reversal reverses posted journals of the balance type Actual. You cannot use this feature to automate budget or encumbrance journal reversals.

R12 GL Setup38Auto Reversal = StepsStep: 1Define Reversal CriteriaNav:Setup Journal Auto reverseName your Auto Criteria SetChoose CategoryChoose Reversal PeriodReversal DateMethodEnable Auto ReverseEnable Auto post reversal

Step: 2 Enter JournalJournal EnterStep: 3 Run Program Automatic Reversal View Request.R12 GL Setup39R12 GL Setup40

Mass AllocationMass allocation means: Allocation of Revenues and cost expenses across any cost center, department or division by using of parent values by using simple formula.

Example: Rent paid based on square feet used.

Formula: T = A x B/C

A = Cost pool AmountB = Usage factorC = Total UsageT = Target AccountO = Off set account

Segment types in mass allocation:Constant2. Looping3. Summing

Mass Allocation Methods:1. Full type allocation2. Incremental Allocation

R12 GL Setup41Mass Allocation = StepsStep: 1Create Usage factor account and Cost pool accountNav:Setup Financials Flex fields key Values

Step: 2Define Parent and child values for departmentsNav: Setup Financials Flex fields key Values

Step: 3Create cost pool journal and post.Nav:Journal Enter

Step: 4Create and Post Statistical Journal Nav:Journal Enter

Step: 5Define and Generate Mass allocation formulaNav:Journals Define Allocation

Step: 6Query mass allocation journalNav:Journals EnterR12 GL Setup42