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- 2 Objectives After completing this lesson you should be able to do the following: Describe the key features of the following Oracle General Ledger advanced journal entries functions Recurring Journals, Mass Allocation Journals, AutoAllocations, Journal Scheduling, and Journal Approval Identify the key issues and considerations when implementing the advanced journal entry functions of Oracle General Ledger Explain the business benefits derived from utilizing Oracle General Ledger's advanced journal entries functions - 2
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Advanced Journal Entries
R12 General Ledger Management Fundamentals
Objectives
After completing this lesson you should be able to do the following:• Describe the key features of the following Oracle
General Ledger advanced journal entries functions– Recurring Journals, Mass Allocation Journals,
AutoAllocations, Journal Scheduling, and Journal Approval
• Identify the key issues and considerations when implementing the advanced journal entry functions of Oracle General Ledger
• Explain the business benefits derived from utilizing Oracle General Ledger's advanced journal entries functions
About Recurring Journals
Define recurring journals for transactions that repeat every accounting period, such as accruals, depreciation charges, and allocations
There are three major types of recurring journals
Dr. Temporary Labor…………..<No Amounts> Cr. Salaries Payable……………..<No Amounts>
Skeleton
StandardDr. Auto Lease Expense………..10,000 dollars Cr. Accounts Payable……………....10,000 dollars
FormulaDr. Bad Debt Expense………..<Variable Amounts> Cr. Bad Debt Reserve………..<Variable Amounts>
Recurring Journal Types
Creating Recurring Journals
Create Recurring Journal Definition
Generate Recurring Journals
Review Entries – Are the Entries Correct?
Post Entries
Yes
Delete the Journal Entry and Correct the
Definition
No
RecurringJE
Lines
Define an unlimited number of journal entry lines for each recurring journal entry
Specify the accounts to update with the recurring journals
Enter the amount to post to the designated account, or a formula to calculate the journal amounts
Indicate an automatic offsetting line for a recurring journal entry by entering the line number 9999
Recurring Journal Entry Lines
Automatic Offset Example
Line Account Debit Credit
10
20
30
9999
AR: Consulting Revenue
AR: Training Revenue
Sales Revenue
Services Revenue (Offset Line)
1,000
4,000
2,000
3,000
(System calculated)
Formula Recurring Journals
For Formula Journals:
Create the formulas that Oracle General Ledger uses to calculate the journal amount for each line
Each formula can contain an unlimited number of steps
For each step in the formula, enter an operator and an argument
Operators Arguments$ 500 or01-100-2100
Generating Recurring Journals
• Generate Recurring Journals to create unposted journal entries from the defined recurring journal templates
• Generate Skeleton Journal Entries and then, use the Enter Journals window to complete the journal information
• Generate Recurring Journal Batches according to schedules defined in Oracle General Ledger
MassAllocations Overview
MassAllocations: A single journal entry formula that allocates revenues and expenses across a group of cost centers, departments, divisions, or cost centers
Chicago rent
Total rent
Paris rent
Tokyo rent
1/31/3
1/3
MassAllocations versus Recurring Journals
Type of Entry MassAllocations Recurring Journals
Formula Entries Yes Yes
Standard Entries Yes Yes
Skeleton Entries Yes Yes
Currency Functional, Foreign, or STAT
Functional or STAT
Formulas per Journal Line
One formula for many lines
One formula per line
Formula A*B/C Any formula
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Create MassAllocation Definition
4
Validate Definition
Generate MassAllocation Journals
Review Entries
Post Entries
Step
Steps to Create MassAllocation Journals
Defining MassAllocation Journals
Define a single formula to allocate amounts across a group of balancing segment values, departments, or cost centers. You can create a new MassAllocation batch or copy an existing batch.
Allocate total rent expense.
Dept BDept A Dept C
Defining MassAllocation Formulas
All MassAllocation formulas use the following equation to determine allocation amounts:
Oracle General Ledger uses the following format to represent the equation. Each factor in this equation relates to a separate formula line:
You can enter any combination of fixed amounts and account combinations in formula lines A, B, or C.
Cost Pool * (Usage Factor/Total Usage)
A * B/C
Account Segment Types
When entering an account into a Mass Allocation formula line, assign a segment type for each account segment
Looping
Summing
Constant
Target and Offset Accounts
Lines
Target Offset
MassAllocation Journal Example
Redistribute monthly rent expense to departments based on the amount of space each occupies
Rent Expense for Each Department =
Total Rent Expense X Area Used by Department / Total Area
In January 2002, the organization spends 10,000 dollars for rent
Dr. Rent expense 10,000 functional dollars
Cr. Rents payable 10,000 functional dollars
MassAllocation Journal Example
Allocate rent to three departments:
Human Resources 45% of total floor spaceResearch 30% of total floor spaceFinance 25% of total floor space
The rent expense is redistributed by the following MassAllocation Journal entry:
Dr. Human Resources 4,500 functional dollarsDr. Research rent 3,000 functional dollarsDr. Finance rent expense 2,500 functional dollars
Cr. Total Rent Expense 10,000 functional dollars
Rent Expense Example
Segment Value Description
Department 000 Corporate
Department 101, 102, & 103 Human Resources, Research, and Finance
Department 999 Parent of 101, 102, and 103
Natural Accounts: 5740 SQFT
Total Rent Expense Department Square Footage
Validating MassAllocation Journals
After defining a new allocation batch, or changing an allocation formula:
Run the MassAllocation / MassBudget Validation program
Validate
Use the Request ID to locate the problems on the MassAllocations Validation Report
Ready to Generate Mass Allocation
Journal
Correct Errors
No Errors
Generating Mass Allocation Journals
• Generate MassAllocations to create unposted journal batches based on your validated MassAllocation formulas– The generated journal batch contains one entry for each
allocation formula in the batch• Use MassAllocation journals to reverse existing
balances, post new allocation amounts, or generate journals that increment the existing balances to match the current allocation amount
• Generate MassAllocation journal batches for any range of open or future enterable periods
AutoAllocations Overview
• AutoAllocations is a powerful feature to automate journal batch validation and generation for:– MassAllocations– Recurring Journals– MassBudgets– MassEncumbrances
• Use AutoAllocations to process journal batches you generate regularly, such as month end closing
AutoAllocation Workbench
Allocate any financial data throughout the organization
Create allocation sets
Use step-down and parallel allocation sets
Use any combination of allocation rules
With AutoAllocation
Workbench
Oracle Workflow controls the approval and rollback processes
Workflow notifies users of
results
Business Benefits of AutoAllocation Workbench
Automates allocations
Monitors allocation
processes online
Automated rollback
Use Workflow to incorporate approvals
AutoAllocation Set Types
Step DownYou create journal
batches in a specific sequence
Step-down AutoAllocation sets automatically
validate, generate, and post all journals created
by the process
Parallel
Validates and generates all the journal batches in your AutoAllocation set simultaneously. You can then post the generated journals to update your
balances
Step-Down AutoAllocations
Define allocation formula
Calculate allocation entry
Post allocation entry
Repeat foreach levelof yourallocation
Parallel AutoAllocations
Define Recurring Journals
Define MassAllocation Journals
Enter in a Parallel allocation set
Enter in a Parallel allocation set
Additional Workbench Functionality
Extended functionality in the AutoAllocation Workbench window includes:
Query defined allocation or recurring journal batches to use in Parallel or Step-down AutoAllocation sets
Drill down to use any batch definition form and create new journal batches to use in a AutoAllocation set
Submit or schedule an AutoAllocation set and view the status of your set
AutoAllocation Sets and Oracle Workflow
Generate Batch Validate
ApprovalRequired?
Workflow
Approved Journal ready for posting
Notifies approver End
Yes No
Yes
No
AutoAllocations and Oracle Workflow
• Workflow Processes– Step-down AutoAllocation process– Journal Approval process
• Workflow Activity Settings– Request Approval for Approver Time-out– Reached Manager Notification Resend Limit– Default Error Notification: Performer
• Customizable Processes– Generated Journal Batch Validation– Generated Recurring Journal Batch– MassAllocation Validation process– Select and Validate Journal Batch process
AutoAllocations Constraints
Only an Oracle Projects responsibility can create AutoAllocation sets containing Projects and General Ledger steps
An Oracle General Ledger responsibility can view only General Ledger AutoAllocation steps
Any Step-down AutoAllocation set that includes a Projects allocation rule does not have the rollback option
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Submitting AutoAllocation Set Requests
AutoAllocation Workbench Window
Submit Schedule
Two Buttons for Submission
ImmediatelyScheduled Later
At Specified Intervals
Reviewing the Status of AutoAllocations
• To review the status of your AutoAllocation set, choose the Review Status button in the AutoAllocation Workbench window
• If more than one AutoAllocation set is pending, you can query the set you want to find
Implementation Considerations for AutoAllocation Workbench
What factors should you consider before implementing AutoAllocation Workbench?• Do you need to allocate any financial amount
throughout your organization? • Can you use the AutoAllocation Workbench to
automate your allocations?• Do you need to combine allocations in Oracle Projects
with Oracle General Ledger?• Should Journal Approval be part of the process?• Should AutoAllocation Rollback be an option of the
AutoAllocation process fails?
Choose from the following schedules:
Define your own schedule in
General Ledger, based on your General Ledger
calendar
Choose any defined schedule in the Application
Object Library (AOL), based on
a standard monthly calendar
Define your own AOL schedule or
use an AOL schedule you
previously defined and
saved
AutoScheduling Overview
AutoScheduling Process
Define a Recurring JE, Mass Allocation JE, Budget Formula, Mass Budget, and/or Allocation Set
Create a new General Ledger or AOL schedule, or use an existing schedule
Select one of the objects in Step 1 and select the Schedule button on the Parameters window
Review and post the generated journals after the scheduled process has been run
Step 1
Step 2
Step 3
Step 4
Financial Schedules
FinancialSchedules
Create General Ledger Financial schedules based on different calendars and period types
Schedule Recurring Journals, MassAllocations, Budget Formulas, MassBudgets, and AutoAllocation sets using the schedules you have defined
Share all schedules across ledgers
Define multiple schedules for each calendar and period type in General Ledger
Schedule any concurrent program
Scheduling Journals
You can schedule journals in the Submit Request window or by navigating to the following:
— (N) Journals > Schedule > Recurring— (N) Journals > Schedule > Allocation
Scheduling a Request Using a Financial Schedule
Navigate to the Submit Requests window
In the Name field, select the request that you want to submit
Choose the Schedule button to open the Schedule window
Choose the apply a saved schedule button to open General Ledger defined schedules
Choose the schedule you want and submit your request
Complete the fields in the parameters window
Periodic Submissions
General Ledger increments the period and date parameters based on user-defined resubmission intervals
Resubmission intervals can be based on the standard calendar or the fiscal calendar for your ledger
Incremental Submissions
You can choose to increment your scheduled submissions
Your ledger calendar must include all the schedule start dates for the schedule you are using
You must enter a non–adjusting period when you first submit your scheduled request
Prerequisites
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Implementation Considerations for Journal Entry Automations
• How can you utilize the Journal entry Automations feature in your organization?
• What kind of GL schedules should be set up?• What type of journals should be scheduled versus
being submitted as needed?
GL Journal Approval Process Overview
The GL Journal Approval Process obtains the necessary management approvals for manual journal batches. This process:• Validates the journal batch• Determines if approval is required• Submits the batch to approvers (if required)• Notifies appropriate individuals of the approval results
Journal Approval Features
To use the Approving Journals process:
You must enable the ledger so that journal entries be approved before posting
Create an approval hierarchy and define authorization limits for each user
Oracle Workflow Engine
Approval process is based on Oracle Applications Workflow engine
General Ledger provides a default approval workflow template which you can customize
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432
1Journal Approval Process
Start
End (validation failed)
GL Initialization and Journal Validation Process
End (approval not required)
GL Preparer Approval Process
End (approved)
GL Approval Process
Rejected (end)
Approved (end)
Journal Approval Process
Approver receives notification(N) Other > Notifications (M) Query > Find All
The approver has three choices when notified of a journal batch
for approval
Reassign Respond Open
Reassign notification to another person for approval
Approve or reject journal batch
Opens the Notifications window to monitor the WorkFlow process or view the original journal entry
Journal Approval Process
After examining the journal batch, the approver can take additional action using the More Actions options(N) Other > Notifications (M) Query > Find All (B) Respond (B) Enter Journals (B) More Actions
Option 1 - Reverse the Batch entry
Option 2 - Post the entry
Option 3 - Unapprove a preapproved batch
Journal Approval Process
Preparer receives notification
When the preparer of a journal batch receives notification regarding the approval or rejection of the batch, they can select one of the following three options:
Reassign To reassign the batch
OK To confirm receipt of notification
Open To open the Notifications window to view the full message, WorkFlow process, or the original journal entry
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Journal Approval Process
OpenWhen the Preparer opens the Notifications window to view the full message,
They can:
Drill down to the Enter Journals window to either directly post the batch or make corrections if the batch is rejected or invalid
If the batch was rejected or invalid and they make the appropriate corrections, they can use Journal Approval to resubmit the batch for approval
and
Approval Methods
There are 3 approval methods:• Go up the Management Chain• Go Direct to Person with Sufficient Authorization• One Stop Go Direct
Journal Approval Prerequisites
Before setting up Journal Approval, your system administrator must:
Set up Oracle Workflow
Set General Ledger Profile Options
Configure GL Journal Approval Process in Oracle Workflow Builder
Set three WorkFlow activity settings (Optional)
Setting Up Journal Approval
Enable Journal Approval
Specify journal sources
Create an approval hierarchy
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Summary
In this lesson, you should have learned how to:• Describe the key features of the following Oracle
General Ledger advanced journal entries functions– Recurring Journals, Mass Allocation Journals,
AutoAllocations, Journal Scheduling, and Journal Approval
• Identify the key issues and considerations when implementing the advanced journal entry functions of Oracle General Ledger
• Explain the business benefits derived from utilizing Oracle General Ledger's advanced journal entry functions