GL FAQS

1.Explain the steps for Mass Budget.

Def: Mass budget means allocation of budget amounts to the range of accounts.

Before going to the mass budget we have to ensure whether Budgetary control is checked at the Budgetary control Tab of Set of Books.

Step-1: Define parent segment value and assign the Child segment values.

In chart of accounts we have to create the on parent segment value. Then we have to assign the child segment value to the parent segment value and compile the chart of account.

Step-2:  Define Budget

Define the name of the budget and description, select the status of the budget and check the require budget journal box. Specify the first period and last period save the form and click on the open next year.

Step-3: Define Budget Organization.

Define the name of budget organization and description and choose the display sequence and set password (optional). Then go the ranges define the Low and High ranges one for cost pool a/c and other one for child values a/c. The cost pool a/c should type entered choose the functional currency and fund check level is absolute and select the defined budget in the step –1.  Foe the Child values give the type as calculated and functional currency. The funds check level by default it will be none. Then save the ranges till the status become Current. Then go to the range assignments then define one by one account which you mentioned in the ranges.

Step –4: Define budget Journals

Enter the budget amounts to the cost pool a/c through budget JVs and observe the status of funds if the status is passed then the funds are reserved. And post the JVs. Define the stat Journal for the allocation of the budget amounts and post the same.

Step-5: Define Mass budget.

    

To enter the mass budget define the name and description and create formula. In formula specify the cost pool account for allocating the budget amount to the child values on the bases of the stat journal proportion.

Formula: Target a/c = A*B/C

A= Cost pool A/c, B= Usage factor, C= Sum of usage factors.

 For Stat currencies define the balance type is actual other than this mention budget. Then save the work and validate the mass budget.

2.What are the options available with respect to budgets at set of books level and explain each in brief.

The options available with respect to budget at set books level are as follows

·         Reserves for Encumbrance.

·         Enable Budgetary control

·         Require Budget Journals.

Reserve for encumbrance: If you enter an out-of-balance encumbrance entry, General Ledger automatically posts the difference against the account you specify here. If you have multiple companies or balancing entities within a set of books, General Ledger automatically creates a Reserve for Encumbrance account for each balancing entity.

Enable Budgetary Control: To define the funding budget this should be optioned. then only we can create the funding budget. For planning budget it is optional.

Require budget Journals: Check Require Budget Journals to allow only those budget journal entry methods that create journal entries. If you are using budgetary control, General Ledger requires you to create budget journals for your funding budget. If you want to require budget journals for all budgets, choose this option. However, if you want to require budget journals for your funding budget only, do not choose this option

3.What are different types of budgets and explain each in brief.

There are two types of budgets as follows.

1. Non – funding budget (Planning Budget)
2. Funding budget.

Non – funding Budget: The budget is prepared for comparing the actual with budget figures to know the variance. This budget will have no impact on the transaction. For defining the budgets we can directly enter the amounts to this budgets.

Funding Budget: The funding budget is requires budget journal for defining the budget amounts. It will control the actual transaction. There are three fund check levels are there in funding budget they are None, Absolute, Advisory.

4.What is the profile name for setting Aliases option?

Profile name for Aliases is  Flexifield Shorthand entry

05. What is the mandatory source and category combination for Inter Company Accounts?

Source: Other

Category: Other

06. What do you mean by budget formula.

You define budget formulas to calculate budget amounts. Your budget formulas can be simple or complex. You can use any combination of fixed amounts and account balances, including actual or budget amounts, statistics, and period-to-date or year-to-date balances from the current period, prior period or same period last year.

When you define budget formulas, you create a budget formula batch. The batch contains one or more budget entries, and each entry contains one or more formulas. Use budget batches and entries to group your budget formulas. For example, you might combine all formulas for a single department or division into one batch, or group all formulas for certain types of calculations into separate entries.

When you calculate budgets using a budget formula, General Ledger replaces any existing budget amounts directly; it does not create a budget journal.

07. If my actual entry is    C1.D1.E1 ….. Dr       10,000.00

                                                 To     C2.D2.A1                     10,000.00

And if, my clearing company C3. what will be journal entry after posting.

	Particulars	Debit.	Credit.
1	C1.D1.E1	10,000.00
2	C2.D2.A1		10,000.00
3	C3.D3.ICR	10,000.00
4	C1.D3.ICP		10,000.00
5	C3.D3.ICP		10,000.00
6	C2.D3.ICR	10,000.00
	Total.	30,000.00	30,000.00

ICR = Inter company Receivable, ICP = Inter company Payable

C3.D3.ICP & ICR default clearing accounts.

08. What is the maximum Aliases Size?

The maximum aliases Size is 20 characters.

09. How to disable one particular Alias instead of all?

Go to the Aliases, Effective Tab page of Aliases screen, there uncheck the enable for a particular alias.

10. What is the difference between summery and detail balnce option in Inter company accounts?

Summery: Summery means it will show single journal for account balance.

Detail: Detail means it will show Transaction wise balance.

11. If set of books is defined with enabling “ Require Budget journals” option, can I change it later?

Yes, once you have saved your work, you cannot choose to require budget journals later provided if there is any planning budget in set of books. You can, however, disable this option at any time.

12. What are fund check levels available?

There are three-fund check levels available in budget they are

• None
• Advisory
• Absolute

13. What are different statuses of Budget Organization?

There are four statuses in Budget organization they are.

• Adding
• In Process
• Reporting
• Current

14. What do you mean by Master Budget?

Compilation of all budgets is called Master budget. Master budgets are informational only when used with budgetary control. Master budgets do not affect funds checking, budgetary control options, or the relationships between detail and summary accounts used for budgetary control.

15. Is there a limit to the number of periods in a budget year? And how many years a budget can span?

Yes, budget can include up to sixty periods per year, and can span an unlimited number of fiscal years.

16. Is it required to open accounting periods before defining budget for that period?

No, it is not required to open the accounting periods before defining budget for that period provided budget periods should be opened.

17.Can I post a Budget Journal to a closed period?

Yes, We can post a Budget Journal to a closed period also.

18. What are different statuses of Budget?

There are three statuses of Budget they are

• Current
• Frozen
• Open

19. If I delete my Budget Organization, will the budget amounts be deleted?

No, by deleting the budget organization the budget amounts will not be deleted.

20.Can I Update/adjust an existing account range in my budget Organization?

You cannot update/adjust an existing account range in budget organization because as the account range field is grayed out after saving the account range. But we can delete the existing account range and redefine the required account range.

21. Is it required to provide offset account in Mass Budget formulae?

No, You can enter an Offset account if you want to generate balanced MassBudget journals. The offset formula line is optional for MassBudgets, since budgets do not have to balance.

SET OF BOOKS

1.What are the different types of value set (or) validation types? Explain each in brief?

The validation types are 8 they are

1. Independent                      : the nature of segment is independent

2.    Dependent                        : this segment depends on independent segment

3. None                               : none is free field   
4. Pair                                 : pair means range of segments
5. Table                               : table means calculation purpose 
6. Special                             : special means based on conditions
7. Translatable independent     : we use it other than English language
8. Translatable dependent        : we use it other than English language

2.Can I increase/decrease the size of value set?

No, only we can increase the value set size but not decrease

3.What are the difference between KFF and DFF?

Sl. No.	Key Flex field	Descriptive Flex field
1	This field is Intelligent Flex field and Mandatory and there are 33 KFF in Oracle finance out of which accounting structure is the one of the KFF in GL module	This flex field is optional to capture the additional information. There is no such limit
2	KFF is application Specific	DFF is form Specific
3.	Cross Validation Rules are Specific to KFF	Cross validation are not applicable to DFF
4.	Aliases are applicable to KFF	Not applicable to DFF
5.	KFF is Inbuilt (Oracle Provides)	We have to define DFF.

4.How can we identify whether DFF is allowed for a specific form or not?

The DFF is available to a form where the symbol  “ [ ] ” (square bracket) is displayed

5.Explain the difference between flex field qualifiers and segment qualifiers.

Flex Field Qualifier identifies the segment (to which it is assigned) with a specific property. There are 4 types of flexfield qualifiers that can be assigned to segments, namely,    

1. Balancing segment Qualifier
2. Cost center segment Qualifier
3. Natural account segment Qualifier
4. Intercompany segment Qualifier

è1 & 3 are mandatory flexfield qualifiers

èOne Segment can have more than one qualifier not vice versa.

   

Segment Qualifier identifies the segment values with a specific property.

There are five types of segment qualifiers assigned to Natural account segment qualifier, namely,    

1. Allow budgeting
2. Allow posting
3. Control account
4. Account type
5. Reconciliation flag

Other then above flexfield qualifier others show only two segment qualifiers i.e.

1. Allow budgeting
2. Allow posting

6.What are the components of set of books?

The components of set of books are 3C’s + 6 mandatory accounts + future period

     The 3c’s are

1. Chart of accounts
2. Calendar
3. Currency

     The 6 mandatory accounts are

1. Retained earnings
2. Net income
3. Suspense account
4. Translation adjustment account
5. Rounding difference
6. Reserve for encumbrance

     

 And Future period 

7.What are the different types of set of books?

Two types of set of books

1. Primary set of books
2. Reporting set of books 

8.What are different Year types?

Two types of Year types

1. Calendar year
2. Fiscal year

9.What are the different statuses of accounting periods?

The statuses of accounting periods are

1. Open
2. Closed
3. Permanently closed
4. Future enterable
5. Never open

10.Why does an accounting period does not appear in the accounting periods list of values on the journal entry form?

The periods which have the status of closed, permanently closed and/or never open will not appear in accounting periods list of values on the Journal entry form.

11.Whether is it allowed for entering negative amount in journal lines?

A) Yes, it is possible but after posting it will be shown in brackets “< >”

12.Is it allowed to reverse, a reversed journal entry?

Yes, it is allowed to reverse journal entry. We can reverse a Journal entry only once.

13.Can I post the reversal entry in before period of actual journal entry?

No, reversal entry should be in current date or future date in the accounting periods of actual Journal entry.

14.What is the formula for funds available?

Funds available = Budget – Encumbrance - Actual

15.Whether system allows the reversing journal to posted even if the original journal is posted or not?

Yes, The original journal is posted or not. The reversal entry can be posted. Reversal meaning is to nullify the particular account balance.

16.How will it display if I use my segment separator in description?

It will appear as “?“ mark

Ex: my segment values are company1, dept1, A/C

We can select the segment separator is “ / “ in value set at the time of journal entry   

posting the A/C in between “/ “ is appear ? in description.

17.What do you mean by Translation?

Translation means we can translate actual and budget account balances from functional currency to Reporting currency. Actual we perform translation for reporting purpose.  We need to define average, period end and historical rates. Average rate will be applicable to expenses and revenues, Period end rate will be applicable to Assets and Liabilities and Historical rate for Owners equity. Run translation after we have completed all journal activity for an accounting period. If you post additional journal entries or change your translation rates after running translation for a period, you must retranslate. Additionally, if you change the account type for an account Segment value and want to retranslate your actual account balances, you must re-enter or change the period-end and average exchange rates for the periods you want to retranslate.

18.What are the rules for Translation?

Rule for translation

1. Prior period and future period should be open
2. Define Average and Period end rates

We cannot perform translation for the first period.

19.How can I deactivate the segment value?

We can deactivate the segment value by uncheck the enable box of the particular segment value in value set of the particular segment.

20.What type of accounts will display in list of values while entering retained earnings account in set of books?

Only Balance sheet items are display like Assets, Liabilities and Owner’s equity.

21.Briefly list the steps for foreign currency journals.

Before entering the foreign currency journals we need

1. Conversion type
2. Conversion rate
3. Conversion Effective date

22.An entire batch was reversed and posted, while trying to reverse and post just one journal entry in the batch. How can this be corrected?

Leave the wrong reverse entry and reverse all other reversed entries manually and post them.

23.Can a Flex field Qualifies be changed after it has been created?

Cannot change.

24.Can different set of books share the same value set?

Yes, the value set is an independent because the value set is share different set of books.

25.What are the three options available in oracle application with respect to foreign currencies?

Three options are

1. Conversion
2. Translation
3. Revaluation

Topics: Recurring Journals, Revaluation, Mass Allocation, Tax journals & CVR

1.Why my cross validation rules not working?

·         The desired combination may be already used.

·        The combination entered manually in account combination.

·        If you uncheck the cross validate segments in key flex field segment form.

·        If we uncheck enable check box at define cross validation rule.

         

2.List any six-validation reports of calendar.

• The following periods have a date gap.
• The following periods overlap.

·         The following periods number are greater then the maximum period number for this period.           

·         The following periods number are missing.

·         The following periods number are not in sequential order by date.

·         The following quarters are missing.

·         The following quarters are not in sequential order by period.

·         The following periods start or end rates are more than one year before or after its fiscal year.

3.Briefly explain the steps for Mass Allocation.

Allocation of account balance to the range of segment values for specific period.

Steps for mass allocation.

·         Define parent Segment and assign child ranges.

(N): Setup/Financial/Flex fields/Validation

·         Enter stat journals.

·         Define mass allocation Formula. (N): Journal/Define/Allocation

·          Validate the formula.

·         Generate Mass Allocation.

·         Post the entry.

Q4.Difference between Translation & Revaluation

Translation	Revaluation
Translation is done from functional currency to Reporting currency.	Revaluation is done to know the actual balance on specific date with respect the prevailing foreign exchange rate of a particular account.
In translation Period end rate & Average rates are used.	In Revaluation Only Period end rate is used.
Translation is Optional.	Revaluation is mandatory.
Difference in Translation will be transferred to “Translation adjustment account”.	Difference in Revaluation will be transferred to “Unrealized Gain/loss account”.
Translation should satisfy the conditions, namely, 1. Prior & following period should be opened; 2. It cannot perform for the first period	No Condition is required for revaluation.

5.How do I enable Cross Validation?

Check the Cross validate Segments and Check the Freeze flexfield defination and compile in Key Flexfield segments.

6.Can you define cross validation rules for a set of books?

No, Cross validation rules are specific to chart of account.

7.Can you run revaluation again in a previous period?

Yes, we can run revaluation again in a previous period. But the revaluation will effect the transaction, which are entered after the First revaluation.

8. On what basis auto post criteria set will be created.

On the basis of Priority, Source, Category, Balance type & Period the auto post criteria set will be created.

9.Briefely explain the purpose of Revaluation.

Revaluation is done to know the actual balance on specific date with respect the prevailing foreign exchange rate of a particular account.

10. Is it possible to do Translation for more than one segment at a time?

Yes. In translation you having the option “All” under balancing segment TAB by selecting it we can do the translation for more than one segment.

11. Can you generate Recurring journal more than once in one period?

Yes, recurring journal means Journal, which are repetitive in nature. In a particular period a journal may be expected for more than once .So we can generate Recurring Journal more than once in one period.

12.What are the steps for revaluation?

Steps for Revaluation:

·         Define the daily rate using the conversion rate and type.

·         Define the period end rate.

·         Define unrealized gain /loss account

·         Perform Revaluation for the particular account.

13. Can you allocate part of your cost pool account by using Mass Allocation? If yes, how will you define formula?

Yes, by entering desired amount in the amount column of cost pool A/c. or by entering base number in the amount column of sum of usage factor.

14 What are the available segment types in mass allocation?

Three segment types are available in mass allocation.

Constant (C), Looping   (L), Summing (S)

15.Explain the concept of recurring journals.

Recurring journals means journals, which are repetitive nature in a year. On the basis of amount recurring journals are three types.

·         Skeleton journal

·         Standard journal

·         Formula journal

Skeleton journal means journals have same account but have different posting amounts.

Standard journals means journal entries use the same accounts and amounts in each period.

Formula journal means journal entries use formulas to create journal amounts that vary from period to period.

16.Do you think Translation and Revaluation are mutually exclusive?

Yes, The translation and revaluation independent with each other, there is no           relation between translation and Revaluation. We can have both in a single set of book.  

17.Can I use stat journal of previous period for mass allocation.

Yes, you can use stat journal of previous period by Using amount type as PTD and period type as previous period in mass allocation or by using amount type as YTD and period type is current period you can use the stat journal for the entire year.

18.What is the difference between full and incremental allocation.

Full Allocation	Incremental Allocation
Full allocation method to generate journals that reverse previous allocations or to post new allocation amounts.	Incremental allocation method when you want to update allocated balances without reversing the previous allocation batches.
Recommend that you use this method only if you are allocating amounts for the first time, or only once.	Recommend that you do not use the incremental method the first time you generate a Misallocation entry.

19.Is there any difference between definition of period rates and historical rates?

Period rate	Historical rate
The daily exchange rate on the last day of an accounting period	A weighted-average rate for transactions that occur at different times
In translation period end rate is used to translate the assets and liability account balances.	Historical rates to translate owner's equity accounts

MULTIPLE REPORTING CURRENCIES, SECURITY RULES, CONSOLIDATION

01. What are the steps for MRC?

MRC is used for reporting in any other Currency including functional currency. We use Primary and reporting set of books for MRC, the primary and the reporting SOB should have the same COA and Calendar but may have different currency.

Steps for MRC

• Define Primary SOB; this is done at SOB level at MRC tab by checking the Primary SOB radio (B).

• Define Reporting SOB, this is also done at sob by checking the reporting SOB radio (B) and uncheck the budgetary control at Budgetary control Tab as they are mutually exclusive. This SOB should have the same Chart of Accounts & Calendar but the Currency may differ.

• Open the periods in Primary & Reporting SOB.

• Define daily conversion rates

• Assign Reporting SOB to Primary SOB. Here we have to define the Conversion options and GL Conversion Rules.

02. Explain difference between Translation and Multiple Reporting Currencies.

Translation	Multiple Reporting Currencies
Translation can be done for unlimited  Reporting Currencies.	It is restricted to 8 reporting Currencies in MRC
For translation we should open prior period and following periods.	No such conditions prevails in MRC
Translation cannot be done for first period.	We can  translate for first period also in MRC
For Translation we have to define period average rate and period end rate.	In MRC only daily rates are defined.
The difference arising between period average rate and period end rate will go to Translation adjustment a/c	Here no such difference as we are taking the daily rates for translation.
Translation is done Manually	MRC is automatic.
Translation will be done by balance wise	MRC is Transaction wise

03. Explain concept of budget formula. And what are the steps for defining budget formula?

We define budget formulas to calculate budget amounts. Budget formulas can be simple or complex. When you define budget formulas, you create a budget formula batch. The batch contains one or more budget entries, and each entry contains one or more formulas. Use budget batches and entries to group your budget formulas. For example, you might combine all formulas for a single department or division into one batch, or group all formulas for certain types of calculations into separate entries. When you calculate budgets using a budget formula, General Ledger replaces any existing budget amounts directly; it does not create a budget journal. We can use budget formulas only for planning budgets

Steps for Budget formula

1              Define planning budget

2              Define budget organization for the planning budget, in this define the ranges of accounts and in assign ranges the first line should be main account (on which we perform the calculation with type as entered & line 2 should be the target A/c with type Calculated.

3              Create Budget formula here enter the main A/c and the target A/c and formula for calculation and calculate for the required period.

04. What is the Diff between the Segment Rules and Account Rules? And explain in brief?

Segment rules are defined in Consolidation. In segment rules we mention the mapping rules between the parent & subsidiary SOB.

The mapping rules are of four types

         1.Assign Single Value

         2.Copy Value from

         3.Use Rollup Rules

         4.Not Assigned.

Segment rules make consolidation process fast and easy transfer of data between the parent and subsidiary books.

Account rules: Map a specific subsidiary account or a range of accounts to a specific account in your parent set of books. For example, you can map subsidiary account 02.300.5400.100 to account 01.100.3000.000.000 in your parent set of books. Or, you might map the entire range of subsidiary accounts 02.300.5400.100 through 02.300.6999.100 to account 01.100.3000.000.000 in your parent set of books

Account Rules override segment rules if any conflict.

05. Is it required to have Translation for GCS?

No, Translation is required if the currency in parent and subsidiary SOB is different.

06. Can I use different mandatory account combination for reporting SOB?

Yes, we can have, but this will not have any effect in the primary SOB and will override RSOB.

07.Whether my Budget Journals do transfer to Reporting SOB automatically.

No, budget journals will not transfer to Reporting SOB. Both are mutually exclusive

08. Can I have more than one Reporting SOB?

Yes, We can have up to 8 Reporting SOB

09. If I run a concurrent program to post all journals in primary whether the same will post all journals in reporting SOB?

No, we need to post in RSOB because while posting the entry in PSOB it will create only unposted entries in RSOB.

10. What is difference between Conversion options and GL conversion rules?

These options are available in MRC, while assigning the Reporting SOB to Primary SOB.

In Conversion option we specify the Oracle Application and affective date of Conversion

In GL Conversion Rules we specify the Source, Category and Conversion type.

11.Which date’s conversion rate will be used for reversing journal in MRC i.e the date of  journal or date of  reversal.

Date of Journal.

12.Can I have different first periods for primary and reporting SOB.

Yes, we can have different first periods due to which we can’t transfer the data from PSOB to RSOB for the prior periods of the RSOB

13. What are the differences between CVR and Security rules

Cross Validation Rules	Security Rules
1. The CVR are specific to COA	Specific to responsibility
2. Restrict the Combination	Restrict to define segment value
3. Available for KFF	Available for both KFF & DFF

14. What type of Value sets will not support the security rules?

None, Pair & Special.

15. If I perform consolidation whether my budget balances will also consolidate?

No, we can perform consolidation for budgets also but the calendar should same.

16. Can I transfer different period’s subsidiary SOB balances to parent SOB by using ‘ Transfer Consolidation Data Set?

Yes, There is option of “Subsidiary period” available in Transfer Consolidation data set where we can enter different period’s of the Subsidiary SOB balances.

17. What are different methods of Consolidation?

1. Balances 2. Transactions

18. Whether my Budget amounts are converted to reporting currencies automatically?

No, because budget and reporting set of books are mutually exclusive

19.Whether Global consolidation consolidates my subsidiary foreign currency balances also?

Yes, while entering the foreign currency JVs in Subsidiary SOB there itself it will convert to the functional currency of Subsidiary SOB.