Basic Journal Entries: 11i General Ledger Management Fundamentals

Basic Journal Entries
11i General Ledger Management Fundamentals
Copyright © 2005, Oracle. All rights reserved.

Objectives
After completing this lesson, you should be able to do

the following:
• Describe how journal entries are positioned in the
accounting cycle
• Identify the types of journal entries
• Create manual journal entries
• Post journal entries using various posting options
• Perform account inquiries
• Perform drilldowns to Oracle subledger
applications
• Create reversing entries
• Use ADI to create journal entries
Objectives
After completing this lesson you should be able to do

the following:
• Import journal entry information using the
GL_INTERFACE table
• Describe the setup options available to process
journal entries
• Identify reports, listings and inquiry options
available for journal entries
• Identify the profile options necessary to process
journal entries
• Identify the key implementation issues regarding
journal entries and General Ledger

Objectives
After completing this lesson, you should be able to do

the following:
• Identify the key elements of Applications Desktop
Integrator (ADI)
• Setup ADI security
• Setup database connections
• Setup the ADI toolbar, general and language
options
• Identify ADI profile options
• Perform ADI diagnostic system checks

Journal Entries and the Accounting Cycle
Review/
Correct
Balances
Consolidate Run Reports/
Close Period
Revalue/
Translate
Open Period
Review
Create/Reverse
Post Journal Entries

Integrating Journal Entries
in Oracle eBusiness
Inventory Purchasing WIP Receivables
Cost Payables
Management
General Ledger
Payroll Projects Assets

Performing Journal Entry Functions
Create Use ADI
Run reports Post
Drill down to Import

subledgers
Inquiry Reverse

Journal Entry Types
Manual
Journal
Entry
Reversing
Journal
Entry
Recurring
Entries
Mass
Allocations

Journal Creation Methods
Manual Entry
Reversals Journal Import Application
Recurring Desktop
Integrator
MassAllocations

Journal Components
Every journal entry in Oracle General Ledger has three

components.
Enter Journals
Batch Header Lines

Grouping Journals into Batches
You can organize journal entries with common

attributes into batches.
Batch 01 Mar-02 journal entries
Batch 02 Accrual journal entries
Batch 03 Euro journal entries

Manual Journal Entries
A manual journal entry is entered directly into Oracle

General Ledger. Typical manual journal entries include
the following:
• Functional currency entries
• Foreign currency entries
• Statistical entries
• Intercompany entries

Performing Additional Journal Actions
Reverse Journal Change Period
Post Check Funds

Reserve Funds
View Results

Posting Journals
Account Balance
Prepost $500
Journal entry $ 25
Enter journal After post $525
Report and inquire

Post journal on updated
account balances

Posting to a Prior Period
July
Open
June
Current period
Open May
Closed

Overview of AutoPost
Define criteria
Schedule Submit
Review report

Defining AutoPost Criteria Sets
Specify the parameters to select journal batches to be

posted automatically.
Parameters Value
Days before current date 0 to 1000
Days after current date 0 to 999
Priority number 1 to 99
Source Specify or All
Category Specify or All
Balance Type Specify or All
Period Specify or All

Running AutoPost
You can run the AutoPost program from:

• AutoPost Criteria Sets window by selecting the
Submit AutoPost button
• Submit Request window
– Enter the AutoPost criteria set name in the
Parameters window
You can easily schedule AutoPost runs to fit the needs
of your organization
As soon as possible
Once: Select a date and time
Periodically: Specify interval of minutes,
hours, days, or months
On specific days: Select day of week or month
Advanced: Apply a saved schedule

Performing Online Inquiries
for Accounts and Journal Entries
Journal Enter
Account Inquiry Journal Inquiry
Balance information T Accounts

Account Information Activity Summary
Dr Cr
Drilldown to
subledgers

Performing Account Inquiry
Account
Inquiry
(B) Show (B) Show (B) Show

Balances Journal Details Variance
Detail Journals Variance

Balances (Inquire)
Journals
Summary
Balances

Reviewing Balances with Account Inquiry
Account Inquiry
Summary account Detail account
Detail Balances
Journal entries Summary
for balances in accounts
specific period

Reviewing Variances
Between Account Balance Types
• You can compare amounts for any two account

balance types, and calculate the difference, by
using the variance calculation
• Select the Show Variance button in the Account
Inquiry window to navigate to the Variance
window
Variance = Primary Balance Type – Secondary Balance Type

Drilling Down to Subledger Details
GL Account Inquiry
Balance
Enter JE JE Lines View JE
View Subledger Accounting Entry
AP AR Inventory WIP
PO Assets Projects
View Subledger Transactions
View Accounting Lines
T Accounts Summary Activity

T Accounts and Drilldown
(M) Tools >T Accounts

Journals
(M) Tools >

Drilldown
Select JE line
(M) Tools >T Accounts Subledger

Accounting
Select JE line
T Accounts Activity
Summary
Subledger Subledger View

Transaction Accounting

Display Options Available While Viewing
Options
Activity
T Accounts
Summary

T Accounts
Use the T Accounts window to view General Ledger

journal entries or subledger accounting entries in a
graphical T Account format.
01.1100
Operations.Cash
1250.00
1250.00
01.7550
Operations.Travel Expense
1250.00
1250.00

Activity Summary
Use the Activity Summary window to view accounting

information summarized by account in a trial balance
format.
01.1100 Operations.Cash USD 1250.00

01.7550 Operations.Travel Exp USD 1250.00
Total Net Activity 1250.00 1250.00

Reversing Journal Entries
Generate a reversal of any journal entry.
Original
Dr. Rent Expense……..10,000 functional dollars
Cr. Cash………………...10,000 functional dollars
Reversal
Dr. Cash……..………....10,000 functional dollars
Cr. Rent Expense……..10,000 functional dollars

Creating Reversing Journals
Choose a reversal
More Actions period to create
reversing journal
Enter Journals entry.
Enter a reversal
More Details period. Reverse
at later time.
Reverse Generate reversals for

Journals predefined period

Reversing Journals Automatically
Define AutoReverse criteria by

journal category
Create journal entries

Balance type: Actual
Category: AutoReverse enabled
Set profile option

Submit request: Or GL: Launch
Program - Automatic AutoReverse After
Reversal Open Period to Yes

Journal Reversal Prerequisites
General Ledger automatically generates and posts

reversals for journal entries if:
• Journal balance type is Actual
• Journal category has AutoReverse enabled
• Journal is posted but not yet reversed
• Journal reversal period is open or future enterable

Journal Reversal Criteria
Assign criteria to journal categories to automatically

select journal entries to reverse.
Reversal method: Switch Dr/Cr or Change sign
Reversal Period rule
Select AutoReverse checkbox
Select AutoPost Reversal checkbox

Overview
Applications Desktop Integrator (ADI) is an extension

to Oracle Applications that offers full cycle accounting
within the familiarity of a spreadsheet.
Journal Wizard
Budget Wizard
Report Wizard
Analysis Wizard
Account Hierarchy Editor

ADI Elements
Applications Desktop Integrator (ADI) has Wizards that

let you modify or access specific areas of General
Ledger:
Journal Wizard Analysis Wizard
Budget Wizard Account Hierarchy Editor
Report Wizard Request Center

Getting Started
When starting Applications Desktop Integrator (ADI),

the ADI Toolbar appears. Before signing on, you have
access to any functionality that does not require
connection to a database, such as a saved budget,
journal, or report worksheets.

ADI Toolbar
Signon Close
General Ledger Minimize
Applications Help
Options Tip Wizard

Signing On to ADI
Use your Oracle Applications Username and Password

to sign on to Applications Desktop Integrator (ADI).
ADI
Username……………….
Password……………….
Oracle General
Ledger

Selecting an Applications Database
When you sign on, choose a database from the

Database poplist.
Oracle
General
Ledger
ADI
Oracle Applications
Databases

Selecting a Responsibility
Oracle
General Set of
Ledger books
Responsibility
Oracle
Applications
Databases
Oracle Set of
Assets books

Validation and Segment Security
Applications Desktop Integrator enforces a variety of

validation and segment security rules with Oracle
Applications.
ADI Value Set Validation Oracle General

Segment Security Rules Ledger
Cross Validation Rules

Toolbar Options
You can customize your Applications Desktop

Integrator (ADI) Toolbar to:
• Create shortcuts to programs and processes
external to ADI
• Arrange and group the icons displayed on the
toolbar
Options button

General Options
Define general options and default settings for

Applications Desktop Integrator (ADI). Choose your
settings for:
• Worksheet colors
• Theme defaults
• Miscellaneous settings
• Installation parameters
Options button

General Options

settings for:
• Theme defaults
Options button

General Options

settings for:
• Theme defaults
Options button

General Options

settings for:
• Theme defaults
Options button

Ledger Options
Define specific options for use with:

• Budget Wizard
• Journal Wizard
• Report Wizard
• Analysis Wizard
Options button

Ledger Options
Budget Options
Format
Graph

Ledger Options
Journal Options
Format
Layout
Header

Ledger Options
Report Definition Options

Defaults
Indicators
Copy Options

Ledger Options
Report Analysis Options

Drill Options
Environment Options

Language Options
Change the language Applications Desktop Integrator

(ADI) uses in windows, menus, and tool tips. You can
also change the font and font characteristics.
Options button

Choosing Values from Lists
Choose from a list of values for data entry fields on the

following worksheets:
• Journal
• Budget
• Report
01 Corporate

Overview of Using ADI
to Create Journal Entries
Create worksheet Enter journal Save worksheet

entries as a template
Link journal Upload journal

worksheets entries to GL

Integrating with Oracle General Ledger
After creating journal entries in ADI, you must upload

them to the interface table and then import them into
Oracle General Ledger for posting.
Run
Journal
Upload Import
Enter journal GL_INTERFACE Journal entry

information table created in:
GL_JE_BATCHES
GL_JE_HEADERS
GL_JE_LINES

Getting Started with ADI Journal Wizard
Enter Journals
Create Journal
Worksheet

Creating Journal Worksheets
Journal Type Functional Actuals

Foreign Actuals
Budgets
Encumbrances
Number of Journals Single
Multiple
Create Worksheet in: New Workbook
Current Workbook

Customizing Journal Worksheets
Use the Define Worksheet Layout window to customize

the layout of your journal worksheet.
Define Worksheet
Layout
Worksheet Headers Lines

Entering Data
• Use the list of values, account aliases or enter

data directly to enter valid in your journal
worksheet
• Enable cross-validation to verify segment values
• Mark the Upload column to flag journal lines for
upload
Upload
column
Upl

Uploading Journal Entries
Create journal Upload to

Run Journal
entry in ADI GL_INTERFACE
Import
table
GL_JE_BATCHES
GL_BALANCES Post GL_JE_HEADERS
table GL_JE_LINES

ADI Diagnostic Wizard
Applications Desktop Integrator (ADI) includes a self-

checking utility that performs over 50 checks to
ensure that your client PC is correctly configured to
run ADI.

ADI Performance Test Scenarios
If you experience poor performance when uploading

your journals to Oracle General Ledger, you can run a
series of performance test scenarios to analyze your
journal upload process.
Upload journals Journal Import
GL_INTERFACE
table
Oracle
ADI General
Ledger

Excel Versions Supported
The following versions of Excel are supported with

Applications Desktop Integrator (ADI), Release 7.1:
• Excel 7 (Office 95)
• Excel 97 (Office 97)
• Excel 2000

Profile Options
Profile options allow Applications Desktop Integrator

(ADI) users access to various features and functions
of General Ledger.
Profile
Options
ADI
Oracle
System General
Administrator Ledger

Other Uses of Journal Wizard in ADI
Use Journal Wizard in Applications Desktop Integrator

(ADI) for other purposes:
• Create templates for recurring journals
• Create GL code combinations
• Convert financial history

Setting Up the ADI Journal Features
Use the Journal tab on the Ledger Options window to

control the appearance of your journal worksheets.
Ledger Options
Journal

Setting Journal Profile Options for ADI
System Administrator
Profile Option User
User Resp App Site
GLDI: Allow Drilldown
Across Books
GLDI: Converted
Entry Threshold
GLDI: Create Group ID

GLDI: Force Full
Validation
GLDI: Force Journal to
Balance
GLDI: Journal Source

GLDI: Journal Wizard
Privileges

Overview of Importing Journal Entries
Transfer in Summary Automatic or Manual

or Detail
Journal
Import
Subledgers GL_INTERFACE
Post
GL_JE_BATCHES
GL_BALANCES GL_JE_HEADERS
GL_JE_LINES

Importing Descriptive Flexfields
If you use descriptive flexfields to capture extra

information that is otherwise not tracked by Oracle
applications, you can import line-level descriptive
flexfield information along with journal entry
information into General Ledger.
When importing descriptive flexfields, consider the
impact of the following:
• Validation
• Table population
• Summary journals

Importing Journals
GL_JE_BATCHES
Journal
Import GL_JE_HEADERS
Program
GL_INTERFACE GL_JE _LINES

Multi-Table Journal Import
General Ledger allows you to import data from

multiple interface tables:
• Enables you to customize alternative interface
tables to your specific data requirements
• Using alternative tables can help you improve
performance since Journal Import more efficiently
processes high volumes of data from multiple
tables than from the single GL_INTERFACE table
• Data load routines can be created which can
choose the interface table in which to data will go,
and whether the table should be dropped when
Journal Import completes successfully

Journal Import Group By Effective Dates
Description
A new profile option, GL Journal Import: Separate

Journals by Accounting Date, allows you to choose
how Journal Import will group journal lines.
• Yes: Journal Import will place journal lines with
different accounting dates into separate journals
• No: Journal Import will group all journal lines with
different accounting dates that fall into the same
period into the same journal, unless average
balance processing is enabled

Journal Import Group By Effective Dates
Benefits
More Flexibility
• Account for business transactions by effective
date or by accounting period
• Better Auditing
• Track transactions by date to facilitate financial
auditing and compliance of the Sarbanes-Oxley
Act
• Better Information
• Make daily updates to Daily Business Intelligence
(DBI)
• Make better business decisions with up-to-date
information

How to Set Up Journal Import Group By
Effective Dates
Setup Journal By Effective

Import Group Dates
- Set profile option - Run the

called GL Journal Journal Import
Import: Separate process
Journals by
Accounting Date

Using Journal Import Group By
Effective Dates
The following journal lines exist in the GL_INTERFACE table:
Line Account Amount Effective Date

1 Office Expense 5,000 USD 08/06/2003
2 Utilities 8,500 USD 08/21/2003
Profile Option Settings

Yes: Creates 2 journals for No: Creates 1 journal
the same batch
Line 1 Line 2 Lines 1 and 2

Importing Journal References
You have the option of transferring journal entry

information in summary or in detail when you run the
journal import process.
Summary Journal: Summarizes all source transactions

into one journal line.
Detail Journals: Preserves all source detail information for

journal lines in General Ledger

Reviewing Journal Import Data

Journal Import Verification Process
Load GL_INTERFACE
table
Correct errors in
feeder system
Import journals by
Source and Group ID
Delete source from
Do journals Journal Import -
Yes Not Oracle AP or AR
have errors?
No
No Number of
High
errors?
Journal import
creates a postable Low Correct Journal
journal batch Import online

Using Journal Entry
Sources and Categories
• Use journal entry sources and categories to

differentiate journal entries and to enhance your
audit trail
• Select pre-defined sources and categories or
define your own
Sources Categories
Assets Accrual
Purchasing Adjustment
Projects Credit Memos
AX Receivables Headcount
Manual Receipts
Budget Journal Revaluation
Payroll WIP

Defining Suspense Accounts
• Use suspense accounts to post balancing

amounts for out of balance journal entries
• The out of balance amount for the journal entry is
automatically placed in the suspense account
enabling you to post the transaction
Dr. 04.420.4310.0000.000 $100

Cr. 04.110.5130.0000.000 $90
Cr. Suspense account $10

Setting Up Statistical Entries
• You can associate statistical amounts with

monetary amounts by using statistical units of
measure
• This enables you to enter both monetary and
statistical amounts in a single journal entry line
New York Consulting Revenue Dollars and Hours
Dr. 04.420.4310.0000.000 $10,000 50 Hours

Running Journal Entry Reports
• Run standard journal entry reports to review

information pertaining to your journal entries
• Create custom reports for journal entries as
needed
Journal batches
Journal entries
Journals with errors
Unposted journals
Posted journals

Setting Profile Options
System Administrator
Profile Option User
User Resp App Site
Journals: Allow Multiple
Exchange Rates
Journals: Allow Posting
During Journal Entry
Journals: Default
Category
Journals: Enable Prior
Period Notification
Journals: Mix Statistical
and Monetary
Journals: Override
Reversal Method

Summary
In this lesson, you should have learned how to:

• Describe how journal entries are positioned in the
accounting cycle
• Identify the types of journal entries
• Create manual journal entries
• Post journal entries using various posting options
• Perform account inquiries
• Perform drilldowns to Oracle subledger
applications
• Create reversing entries
• Use ADI to create journal entries

Summary

• Import journal entry information using the
GL_INTERFACE table
• Describe the setup options available to process
journal entries
• Identify reports, listings and inquiry options
available for journal entries
• Identify the profile options necessary to process
journal entries
• Identify the key implementation issues regarding
journal entries and General Ledger

Summary

• Identify the key elements of Applications Desktop
Integrator (ADI)
• Setup ADI security
• Setup database connections
• Setup the ADI toolbar, general and language
options
• Identify ADI profile options
• Perform ADI diagnostic system checks

Basic Journal Entries: 11i General Ledger Management Fundamentals

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Basic Journal Entries

11i General Ledger Management Fundamentals

Copyright © 2005, Oracle. All rights reserved.

After completing this lesson, you should be able to do

After completing this lesson you should be able to do

Copyright © 2005, Oracle. All rights reserved.

After completing this lesson, you should be able to do

Copyright © 2005, Oracle. All rights reserved.

Copyright © 2005, Oracle. All rights reserved.

Inventory Purchasing WIP Receivables

Payroll Projects Assets

Copyright © 2005, Oracle. All rights reserved.

Create Use ADI

Run reports Post

Drill down to Import

Copyright © 2005, Oracle. All rights reserved.

Copyright © 2005, Oracle. All rights reserved.

Copyright © 2005, Oracle. All rights reserved.

Every journal entry in Oracle General Ledger has three

Batch Header Lines

Copyright © 2005, Oracle. All rights reserved.

You can organize journal entries with common

Batch 01 Mar-02 journal entries

Batch 02 Accrual journal entries

Batch 03 Euro journal entries

Copyright © 2005, Oracle. All rights reserved.

A manual journal entry is entered directly into Oracle

Copyright © 2005, Oracle. All rights reserved.

Reverse Journal Change Period

Post Check Funds

Copyright © 2005, Oracle. All rights reserved.

Enter journal After post $525

Report and inquire

Copyright © 2005, Oracle. All rights reserved.

Copyright © 2005, Oracle. All rights reserved.

Copyright © 2005, Oracle. All rights reserved.

Specify the parameters to select journal batches to be

Copyright © 2005, Oracle. All rights reserved.

You can run the AutoPost program from:

Copyright © 2005, Oracle. All rights reserved.

Account Inquiry Journal Inquiry

Balance information T Accounts

Copyright © 2005, Oracle. All rights reserved.

(B) Show (B) Show (B) Show

Detail Journals Variance

Copyright © 2005, Oracle. All rights reserved.

Summary account Detail account

Copyright © 2005, Oracle. All rights reserved.

• You can compare amounts for any two account

Variance = Primary Balance Type – Secondary Balance Type

Copyright © 2005, Oracle. All rights reserved.

Enter JE JE Lines View JE

View Subledger Accounting Entry

View Subledger Transactions

View Accounting Lines

T Accounts Summary Activity

Copyright © 2005, Oracle. All rights reserved.

(M) Tools >T Accounts

(M) Tools >

(M) Tools >T Accounts Subledger

Subledger Subledger View

Copyright © 2005, Oracle. All rights reserved.

Copyright © 2005, Oracle. All rights reserved.