Friday, October 18, 2013

GL, Multi-Org, AP, AR Definations and FAQS



What is flex field? What are different types of flex field?
        Flex field is used to capture the information in organization these are two types i.e. KFF and DFF.

Difference between key flexfield and Descriptive flexfield?
        KFF is unique identifier, stored in segment column but DFF is used to capture additional information, stored in attribute column.

How many KFF are in GL, AP, and AR?
        In GL module KFF, GL Accounting flexfield, AP no KFF and AR Sales tax flex field, Territory flex field.

What is structure of KFF in the Accounting Flexfields?
        In accounting flexfield company, department, account, future.

What are the flexfield qualifiers?
        Flexfield qualifiers are used to identify the segments. These are various types i.e. balancing segment qualifiers, Cost center qualifier, Natural account segment qualifier, Inter company qualifier, Secondary tracking qualifier, Management segment qualifier.

What are different types of Currency?
        These are Functional currency, Foreign currency.

What are different types of Calendars?
        These are Fiscal and Accounting.

How many types of open/close periods?
        These are five types i.e. 1. Open, 2. Close, 3. Never open, 4. Permanently closed, Future.

How many journal approvals in GL?
        They are two i.e. Journal Source (it is origin of the journal), Journal Category (it is identifying the journal).

What is a Journal?
        Journals are used day to day business transactions. So journals are contain debit and credit transactions so it is always equal to both i.e. debit and credit these are two types i.e. Manual , Import.

What is Reverse Journal?  
        It is used to reverse the error journals they are two types of journal method i.e. Switch Dr/Cr (it is used to new journal created and change the debit to credit and credit to debit), Change Sign (it is used just change the +tive amount is to -tive).

What is batch journal?
        It is used to group the journal based on certain parameters.
What Suspense Journal?
        It is used to post the unbalanced journal entries when we posted unbalance journals suspense account will be added by the system.

What is Recurring Journal?
        Which accounting is repeating every month or time i.e. is called Recurring journal these are three types i.e. Standard, Skeleton, And Formula.

What is Auto Posting?
        This is used post journals automatically by the system.
What is Mass allocation?
It is used to distribute the particular amount various expenses heads using simple formula i.e.
Mass allocation =   Cost fool amount * Usage factor
                                                        = Target amount              
                                      Total usage factor     

What is aliases?
        It is used to define the short name for account code combination it will wok at structure level.

What Inter company?
        Transaction which is used two companies is called inter company these are two types 1. Inter company and Intra Company
        Inter Company: Transactions which is tacking place between two legal entities is called Inter Company.
        Intra Company: Transactions which taking with in the legal entity is called Intra Company.

What is Journal Approval?
        It is Security feature it is used to define the authorization limits for journal approval.

What is Budget?
        Budget are using better planning fund controls feature. These are two types i.e. Planing, Funding.
        Planing: it is used to plan expense and revenue but it not along with controlling exp and revenue.
        Funding: it is used to plan expense and revenue but it along with controlling exp and revenue.

What is Rollup group?
        It is used to group the parent value.



What is Summary template?
        This is used to calculation purpose that who will associate roll up group with the summary template 
       
What is Translation?
        Translation is used to convert the accounting balances from functional currency to foreign currency

What is revaluation?
        It is used to reflect the changes in the exchange rate.

What is consolidation?
        Multiple sub ledgers into parent ledger are called Consolidation.

What is a Security rule?
        These are used to restrict the user from entering the segment values it will work at responsibility level.

What is Cross validation rules?
        These are used to restrict the users from entering the code combination, it will work at chart of accounts level.

What is definition access set?
        It is used to provide using, view and modified access to the various users it will work at responsibility level.

What is secondary ledger?
        It is represent to the primary ledger accounting data when the following things are different i.e. chart of account, currency, calendar, conversion method, accounting option.

What is FSG (Financial Statement Generator)?
        It is standard report tool which is used to customize the required reports. They are five components. I.e. Row set, Column set, Content set, Row order, Display set. 

What is MOS (Multi Org Structure)?
        It is used to capture the multiple organizations in a single data base.

What is Business group?
        It is highest level in multi level it is used to secure the human recourses details.

What is Ledger?
        It’s a reporting entity which we record the day to day organization transactions and determine Four ‘C’ i.e. Chart of Accounts, Calendar, Currency, Accounting method.

 What is Legal entity?
        Legal entity nothing but a tax authority, ledger contain multiple legal entities but legal entity associate with one ledger 

What is Operating unit?
        It’s a Major business division, one legal entity contain multiple operating units but one operating unit associate with one legal entity.

What is inventory organization?
              Its nothing but where house or plant, one operating unit contains multiple inventory but one inventory associate with one operating unit.

What is Sub-Inventory?
        It’s a part of the inventory organization, one inventory contains multiple sub inventories but one sub inventory associate one inventory.

What is MOAC (Multiple Org Access Control)?
                  It is used to access the multiple operating unit information from single responsibility to access multiple operating we need to say Mo Security profile option.

How to use Purchasing?
        All the purchasing related activity information will be declared in purchasing these are two cycles in PO i.e. Procure 2 Pay, Order 2 Cash.

Procure 2 Pay Cycle.
        This cycle start with Requisition and end with Reconciliation i.e.
RequisitionàRFQàQuotationàQuotation analysisà PurchasingàReceivingàInvoice
àPaymentàReconciliation.   
        
   The Accounting entries in P2P cycle when we receive the goods
1.      When we receive the goods
Receiving Inventory A/c Dr
        To Inventory AP Accrual A/c Cr
2.      When we transfer the goods
Inventory A/c Dr
        To Receiving Inventory A/c Cr
3.      When we create Invoice
Inventory AP Accrual A/c Dr
        To Liability A/c Cr
4.      (a)  When we make payment and follows Reconciliation
Liability A/c Dr
        To Cash Clearing A/c Cr
(b) When Payment is cleared
      Cash Clearing A/c Dr
              To Cash A/c Cr


5.      When we make the payment and we are not following Reconciliation

Liability A/c Dr
        To Cash A/c Cr
6.      Final entry is
Inventory A/c Dr
        To Cash A/c Cr.
                       
What is option how many options in PO?
        Options are nothing but a controlling future at the operating unit level. In PO these are three types’ i.e. financial options, Purchasing options, Receiving Options.

Who is Employee?
        A person who is worked in organization or company is called employee.

Who is Supplier?
        Either person or organization who is supplying goods or services is called supplier. They are two levels of data in supplier i.e. Supplier header, Supplier site.
        Supplier header (Head office): This information is global specific
        Supplier site (Branch office): This information is operating unit specific.

What is Item?
        Item will be defined in either inventory or purchasing application so it is used inventory key flexfield to define the item. These are seven key flexfield in inventory applications.

Category Codes: Category cods are used to categories the item

Category Set: It is used to group the values categories.

Why are used Document types?
        It will determine the futures of various purchasing documents

Why are used Approval groups?
        This are used to define the authorized limit for various job.

Why are used Approval assignments?
        It is used to assign approval goods to the jobs.

Who is Buyer?
        A person who is buying goods or services behalf of organization is called a buyer.

What is Requisition?
        Requisition is first steps in PO, it means requirement specification, and specifies the requirement, quantity, expected date etc.
        These are two types i.e. Internal requisition, Purchase requisitions.
Internal requisitions: it is created by employee and send to the where house to adjust items internally.
Purchase requisition: it is also created by employee and send to the purchasing department to accrue goods from external sources.

What is RFQ and Who will create?
        Require the goods information at the time buyer created RFQ and send to the supplier to quotation.
        These are three types Catalog, Standard, Bid.

What is Quotation?
        Quotations are received from the supplier and enter in to Oracle PO it contains all item segments details
        These are three types Catalog, Standard, Bid.
        Quotation are created by two ways i.e. Manual, Auto Create.
What is Purchase order and who will create?
        It’s a legal document which will be crated by organization and send to the supplier to buy the goods or services
        These are four types i.e. Standard, Plan, Blanket, Contract.

What is Receiving and how many types of Receiving methods.
        Entering the delivery information in the system is called receiving
These are three types i.e. Direct delivery, Standard, Inspection.

What is use of Accounts Payables in Oracle?
        Any types of payments will record in the account payables

How many options in account payables?
        These are three types options i.e. financial, payable, payable system setup.

What is Standard invoice?
        A trade invoice which will receive from the supplier and entered in Oracle AP.

What is Credit Memo?
        It’s a negative amount invoice which will be received from the supplier and enter in to AP to record the credit for the purchases goods or services.

What is Debit Memo?
        It’s a negative amount invoice which will be created by organization and send to the supplier to record for feature debit items.

What is Prepayment?
        It’s a Advance payment made to the supplier by organization later it will applying against feature debit items.
        These are two types i.e. Permanent, Temporary.

What is Interest invoice?
        An invoice which created by automatically system to pay interest on over due invoices

What is Recurring invoice?
        Which invoice repeating each accounting period is called a recurring invoice.

What is Retain age?
        Holding the portion of percentage the invoice in organization is called retain age.

What is With Holding Tax?
        An invoice which is created automatically by system to pay tax amount to the tax authority

What is Pay on receipt?
        Under this feature invoice will be created by system automatically in AP when receive the goods in the AP.

Order cash cycle.
        Sales orderàpick orderàshippingàreceiptsàreconciliationàcash management

How many flexfield in Account Receivable?
        They are two types i.e. Sales tax location flexfield, Territory flexfield.

What is sales tax location flexfield and what is territory flexfield?
        It is mandatory flexfield which is used to calculate the tax based on the location. When we define up to 10 segments under this location.
        It is optional flexfield which is used to identify where sales is taking place, to identify profit for each sales territory.

What are payment terms?
        Payments terms are used to determine the payment schedule for the various invoices.

What use of Statement Cycle?
        This cycle will determine the when to sent statement to the customer.

Who is Collectors?
        The person who is collecting the money from the customers is called collectors.

What is Remit to Address?
        An address where customer to send receipt information.

What is Application Rule Set?
        This is used how to apply receipt amount against the invoice component, the invoice components are line, tax, fright and finance charges.
What is Customer Profile class and How many types?
        This are used to classify the customer based on certain parameters. Generally these are three types i.e. good, average, below average.

Who is customer?
        Either person or organizations who are selling goods or services is called a customer.

What is Transaction?
        Transaction can be created by org and send to the customer they are three levels of information i.e. header, lines, distribution
        Transaction can be created in two ways i.e. Manual, Auto Invoice.
What is Transaction Source?
        This source will determine numbering for single transaction and batch transaction and also it will be determine transaction type for various transactions, these are two types Manual, Imported.

What is Receipt class?
        At the time defining receipt class we have define Creation method + Remittance method + Clearance method
        They are two types i.e. Manual, Automatic
What is receipt source?
        At the time of receipt source we have to assign Receipt Class + Payment method + Bank Accounts.
        They are two types i.e. Manual, Automatic.

What is Debit Memo in Account Receivable?
        When customer is under charged debit memo will be created by organization and send to the customer.

What is Credit Memo in Account Receivable?
        When customer is over charged credit memo will be created by organization and send to the customer.

What is Deposit?
        It’s an advance amount which is received from the customer later it will be adjusted against the invoice it will come under commitment transaction

 What is Guarantee?
        It is assurance from the customer to buy the good or services it will come under commitment transactions

What is Charge back?
        Charge back nothing but closing old transaction and create a new transaction.


What are Invoice rules and Accounting rules?
        Invoice rules will be determine the accounting period in which receivable amount will be recognized. These are two types i.e. Bills in Advance, Bill in Arrears
        Accounting rules will be determine accounting period in use recognize the amount. They are four types i.e. fixed schedule, variable schedule, daily revenue rate all periods, daily revenue rate partial periods

What is Reconciliation?
        Matching either payment or receipt with the book statement is called reconciliation.
        These are two types i.e. Manual, Auto Reconciliation.

Difference between 11i and R12
             11i
                       R12
Set of book i.e. Primary, Reporting
Ledger i.e. Primary, Secondary, reporting
SOB is collections of 3’c’ and Defined of sub ledger level (accounting method)
Ledger is collections of 4’c’ and defined at main ledger level
Forms on screen i.e. D2K, Tabs
JSP/HTML pages i.e. ledger options & Hyper lines
Key flexfields i.e. Accounting Flexfields, Reporting Attributes
Accounting Flex field i.e. Reporting Attributes, General ledger
Can see one Structure
Two Structure
Flex field qualifiers are five i.e. Balancing segment, Natural A/C segment, Cost center, Inter company transactions, Secondary tracking segments  
Flex field qualifiers are six i.e. Balancing segment, Natural A/C segment, Cost center, Inter company transactions, Secondary tracking segments, Management segment
Legal entity define in HRMS
Legal entity define in GL
Primary and Reporting
COA can be same/ different
Calendar can be Same/ different
Currency would be difference
Primary and Reporting
COA can be same / difference
Calendar can be same / difference
Currency can be difference
A/C method can be Same / Difference
Profile options: GL set of books names to assign SOB to Responsibility
Profile options: GL ledger name to assign to Responsibility


In R12 introduced MOAC (Multi Org Access Control) so this features are

  1. To Access different operating unit from the same responsibility selecting that particular responsibility
  2. We can do the steps for multiple operating units and SOB
  3. We can run report for multiple operating units from single responsibility
  4. MOAC features can be used only for Multi Org Environment.
  5. To access MOAC features in R12 we have define “Security Profile” in HRMS while defining security profile select one branch group.
11i and R12 differences in Account Payables.

Invoice forms in 11i, header and distribution
Invoice forms in R12 header, distribution, line

Invoice types are added in R12 i.e. Transaction invoice, Retain age 
AP/AR netting is available in 11i Indirect
This concept AP/AR netting is introduced in as Direct Functionality,
In AP module the menu “Contra Charge Menu” attaching to the responsibility AP/AR netting will be available.
Supplier and Customer are called separate
Supplier and Customer will be commonly called “Trading Partner”
If we define Supplier in PO & AP we can use Supplier in these two modules only
If we want same Supplier information in other modules we have to define again we can use TCA (Trading Community Architecture)
Only Customer & Legal Entity are Global
In R12 Customer, Legal entity, Supplier, Bank, Branch also Global.
We cont use bank, branch, bank a/c information of one operating unit to other operating unit
Here ledger entity is the owner of bank account so we can use one bank a/c to different operating units which are under same legal entity.
Here transfer AP to GL in two ways i.e. Payable Accounting Process Program and By Transaction Data.
In R12 only one transfer to GL any Module i.e. Creating Accounting.
SLA (Sub ledger accounting) move in 11i i.e. AP transactionàGL interfaceàGL
SLA (Sub ledger accounting) move in R12 i.e. AP transactionàSLA Accounting àGL

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