General Ledger

Chart of Accounts and Segments

nAccount structure you use to record accounting transactions and maintain account balances

nIn Oracle General Ledger Chart of Accounts is a Key Flexfield – “Flex” field because, the data segments are defined by the user

nA Chart of account (alternatively called Accounting Flexfield) comprises of various segments that the user defines

nSegments for a certain chart of account could look like – Company – Department – Account

Segment Value

nEach segment of the chart of accounts should have valid values. Values for each segment combine to form an “Account”

An Account could look like “01-TRAVEL-150001”

nValid Values for a segment are defined using “Value Sets”, that stores all values that can be used for a segment

nIn the above example, 01 is a value defined under a value set that is attached to the company segment. The value set may be called “Company Value Set”

Use Of Currencies

nAccounting transactions should have a denominations, like USD, Rs. etc

nThe users should identify applicable currencies and define them before use

Use Of Accounting Calendar

nTransactions should relate to specific periods, like April-04,Dec-04 etc.

nA set of such periods form an Accounting calendar

 

n

nn

Periods are user defined, can be a month, quarter etc. depending on the business requirement

Understanding Accounting Ledger – the Set of Books 

nEvery accounting transaction would be created –

- Using a specific chart of account structure

- For a particular Accounting period and

- Using a particular currency

nA combination of the Accounting Flexfield, the Accounting Calendar and Functional Currency comprise the Set of Books

Oracle Inventory

                                                        Figure:1

 Description

Oracle Inventory maintains quantities on hand using a variety of stock maintenance tools, controlled transactions, and planning methods.

Organization and Item Definition

•Set up inventory structure.

•Group inventory organizations into multilevel, hierarchical trees for managing large organization structures.

•Define stock and nonstock parts.

•Establish planning and purchasing attributes.

•Track inventory by item, item revision, serial number, or lot number.

Transactions and Maintenance

•Receive parts from and return parts to suppliers.

•Transfer inventory between organizations directly or as in-transit shipments.

•Create move orders for subinventory transfers.

•Receive alerts or notifications about material shortages.

•Add material overhead to the cost of a part.

•Conduct inventory cycle counts based on ABC classification.

•Record physical inventory counts and adjustments.

•Track serial controlled items from receipt through work in process and inventory to the customer sale.

Forecasting and Planning

•Generate forecasts for future product demand.

•

Generate requisitions using the min/max or the reorder point planning methods.

 

                                                        Figure:2

 

Oracle Inventory Item Definition

An item definition is defined for inventory items (part numbers), engineering items (bills of material), and purchasing items (outside processing). For each item definition, you can specify cost information, unit of measure, lead times, physical attributes, and other pertinent business information related to each unique item.

An item is defined in an item master organization. Then, you assign it to other organizations that need to recognize this item.

 

(N) Inventory > Items > Item Master

Oracle Applications ERD Standards

                                                    Figure:1

Oracle Applications ERDs do not use "softboxes".  They use regular rectangles.  This has no impact on reading Oracle Applications ERDs other than the shape change.

At the top of each entity, or Table, will be the Table Name.  Beneath the Table Name is the primary key columns for that Table.  There will always be at least 1 column, and there may be several.

Generally, Oracle Applications does not list mandatory columns.  These are too numerous to include.  However, sometimes for sake of clarity, a mandatory column will be included.  If so, that column will be marked with an asterisk (­).

Note:  Generally, Oracle Applications ERDs use size to indicate importance and relative sizing to other Tables.  This is done in the most generic of uses.  For almost any case, you could easily find a customer, who because of the special case of their business needs, has Tables that aren't sized in the proportions shown. 

                                                    Figure:2 

 This diagram shows how Oracle Applications ERDs diagram relationships.  Oracle Applications ERDs use solid lines to indicate mandatory relationships where a value entered in the column in the foreign key must match a value in the primary key column.  Applications ERDs use dashed lines (- - - - -) to indicate optional relationships where a value entered in the column in the foreign key must match either a value in the primary key column, or else it must be null. Oracle Applications ERDs also have recursive foreign keys or pig's ears.

The Delete Rule Indicator determines the action to be taken when an attempt is made to delete a related row in a join table. A line through the foreign key constraint, as shown on the above diagram, indicates that this action is restricted.

Note: Oracle Applications ERDs are not always clear on foreign key relationships.  For example, Table 2's primary key is the foreign key into Table 1 even though it may not be part of Table 1's primary key.  As such, the foreign key relationship would be implied rather than explicitly described.

                                                       Figure:3

Oracle Applications ERDs use an arc.  The arc, shown above with circles and an arc, is used to specify that, for any given row in a table, a value must be entered in one of the arc columns. The remaining columns within the arc must be null.

Descriptive Flexfields

 

The diagram above shows the Descriptive Flexfields ERD.

Table Name

FND_DESCR_FLEX_COLUMN_USAGES

Primary Keys:

APPLICATION_ID

DESCRIPTIVE_FLEXFIELD_NAME

DESCRIPTIVE_FLEX_CONTEXT_CODE

APPLICATION_COLUMN_NAME

FND_FLEX_VALUE_SETS

Primary Keys: FLEX_VALUE_SET_ID

FND_DESCR_FLEX_CONTEXTS

Primary Keys: APPLICATION_ID

DESCRIPTIVE_FLEXFIELD_NAME

DESCRIPTIVE_FLEX_CONTEXT_CODE

FND_COMPILED_DESCRIPTIVE_FLEXS

Primary Keys: APPLICATION_ID

DESCRIPTIVE_FLEXFIELD_NAME

COMPILER_VERSION_NUM

SEQUENCE

LANGUAGE

FND_DEFAULT_CONTEXT_FIELDS

Primary Keys: APPLICATION_ID

DESCRIPTIVE_FLEXFIELD_NAME

DEFAULT_CONTEXT_FIELD_NAME

FND_DESCRIPTIVE_FLEXS

Primary Keys: APPLICATION_ID

DESCRIPTIVE_FLEXFIELD_NAME

FND_TABLES

Primary Keys: APPLICATION_ID

TABLE_ID

FND_APPLICATION

Primary Keys: APPLICATION_ID

Data Flow Among Applications

Purchasing to Payables

Data is copied out of purchasing tables into Payables tables when invoices are received and matched against purchase order shipments or receipts.

 

Payables to Assets

When invoice information is entered in the Payables module for an item which will become a fixed asset, such as a vehicle or a building, the MassAdditions process can be used to create asset records from information entered on the Payables invoice. The MassAdditions process may use the Account Generator function to determine the appropriate asset accounts.

Order Management to Inventory

When material is shipped, the Inventory Interface process passes shipment information from Oracle Order Management to Oracle Inventory to decrement inventory item quantities and to record cost of goods sold and a decrease in inventory asset value. This process may use the Account Generator function to determine the appropriate cost of goods sold account.

Order Management to Receivables

Once orders have been shipped, the Receivables interface and AutoInvoice processes may be run to generate customer invoice records automatically from Sales order information. The AutoInvoice process may use the AutoAccounting function described above to determine the appropriate sales revenue, freight revenue, tax revenue, Receivables, and account numbers.

Data Flow to General Ledger

Oracle General Ledger is the central repository for accounting information, receiving transactions from other Oracle applications.

 

Purchasing

The only information passed to General Ledger by the purchasing module is accrued receipt information (asset information for material received but not yet delivered, and liability information for material received but not yet billed).

Payables

The Payables module passes expense and liability information from invoices and cash and liability information from payments to the General Ledger.

 

Assets

The Assets module passes information about asset additions, asset adjustments, transfers, retirements, and depreciation to the General Ledger.

Inventory

The Inventory module passes financial information about material receipts, material shipments, cost of goods sold, changes in inventory asset value due to standard cost adjustments, and changes in inventory asset value due to physical inventory adjustments to the General Ledger.

Order Management

The Order Management module does not pass any information directly to the General Ledger. When material is shipped, order management passes information through the inventory interface to the Inventory module to record the shipment, and Oracle Inventory then passes that information on to the General Ledger.

 

Receivables

The Receivables module passes sales revenue and Receivables information from customer invoices, and miscellaneous revenue, cash, and Receivables information from cash receipts to the General Ledger.

Default Account Sources

To minimize data entry errors, Oracle Applications provides many sources of default account information. These sources provide the default accounts that are utilized for subledger transactions, but can sometimes be overridden on the transaction itself.