1.Explain about Accounts Payable. 
Ans)The Accounts Payable application component records and manages accounting data for all
vendors. It is also an integral part of the purchasing system: Deliveries and invoices are
managed according to vendors. The system automatically triggers postings in response to the
operative transactions. In the same way, the system supplies the Cash Management application
component with figures from invoices in order to optimize liquidity planning. 

2.What is the meaning of invoice?
Ans)An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms.

In the rental industry, an invoice must include a specific reference to the duration of the time being billed, so rather than quantity, price and discount the invoicing amount is based on quantity, price, discount and duration. Generally speaking each line of a rental invoice will refer to the actual hours, days, weeks, months etc being billed.

3Can you give a sample Process Flow for Procure to Pay Cycle?

Ans) Process flow for Procure to pay will go through two departments
(Commercial & Finance)
Procure – Commercial Department The following steps involve to procure any item
1. Received Requisition from concern Department
2. Request for Quotation from Suppliers at least three
3. Finalize the best Quotation by keeping in mind about our companies standard
4. Check the Budget for the same
5. Negotiate with supplier for more economic pricing and finalize the payment terms
6. Process the PO and forward to the supplier to supply the goods and services 

Pay Cycle – Finance Department 
The following steps need to be fulfill
1. Invoice should be match with PO
2. Invoice should has all the supporting documents such as PO copy,Delivery note duly signed by receiver (our staff who authorized to received goods / store keeper)
3. If the invoice is for services then it should be forwarded to the concern department head or project manager for his confirmation of work done and his approval 
4. Even if it not the services invoice, it should forwarded to the concern person’s approval who request the PO for the same
5. Finance can reject the invoice if it is not budgeted and ask for the reasons.
6. After receiving all the confirmation and approvals from the concern department heads the invoice will be update in to the accounting system first in order to avoid any duplication of Invoice and PO (it shown on accounting package if the invoice is duplicate if not, altelast it tells you if the PO already used or cancel)
7. Finance approved the invoice and process the payment base on payment terms with the supplier.

4)What are the journals entries in Procure to Pay Cycle.

Description                                                                             DR                                  CR

A) Po creation                                                                    No Entry                          No Entry

B)  While Receiving the goods                                       Material Receiving            Ap Accurval 

C) While Inspection                                                        No Entry                            No Entry 

D) While Trans ford the good to Inventory               Inv Org Material              Material Receiving
                                                                                     Purchase price Varience

F) While Po Is Matching to Invoices                         Ap Accurval                        Liability

G) While Making the Payment                                 Liability                               Cash Clearing 

 H) Ofter Reconciliation                                           Cash Clearing                     Cash

 I) Final Entry                                                            Inv Org Material                Cash

5)What is the difference between EFT & Wire?
Ans)EFT and WIRE are the most popular form of electronic payment method. EFT stands for electronic fund transfer and it is one of the fastest mode of electronic payment after WIRE. EFT is a batch oriented mechanism for transfering funds from one bank to another because of which clearing & settlement takes around 2 to 4 days. On the other hand, WIRE is a RTGS i.e. real time gross settlement system of making the fund transfer on real time and gross basis. Clearing and settlement happens on the same day. WIRE is more expensive and faster than EFT.  

6) What is meant by Distribution Sets:

Ans)You can use a Distribution Set to automatically enter distributions for an invoice when you are not matching it to a purchase order. For example, you can create for an advertising supplier a Distribution Set that allocates advertising expense on an invoice to four advertising departments.
You can assign a default Distribution Set to a supplier site so Payables will use it for every invoice you enter for that supplier site. If you do not assign a default Distribution Set to a supplier site, you can always assign a Distribution Set to an invoice when you enter it.

Use Full Distribution Sets to create distributions with set percentage amounts, or use Skeleton Distribution Sets to create distributions with no set distribution amounts. For example, a Full Distribution Set for a rent invoice assigns 70% of the invoice amount to the Sales facility expense account and 30% to the Administration facility expense account. A Skeleton Distribution Set for the same invoice would create one distribution for the Sales facility expense account and one distribution for the Administration facility expense account, leaving the amounts zero. You could then enter amounts during invoice entry depending on variables such as that month’s headcount for each group.

7)What is the meaning of GRN? 

GRN contains the following details.

1.Ordered quantity .
2.Received Quantity.
3.Defective quantity in received quantity .
4.Quality standards details.

8) How does the payment mechanism work?

Ans) The open items of an account can only be cleared once you post an identical offsetting amount to the account. In other words, the balance of the items assigned to each other must equal zero.During clearing, the system enters a clearing document number and the clearing date in these items. In this way, invoices in a vendor account are indicated as paid, and items in abank clearing account are indicated as cleared.

You generally use the payment program to clear invoices. Manual clearing of open items is therefore not usually necessary. However, you will sometimes have to clear items manually if, for example, you receive a refund from your vendor or you have set up a direct debit procedure.

9) Difference between interface tables and base tables?
Ans)   The difference between the interface and base tables is as below

Interface table: is the table where the data gets validated before data get posted to the base tables. There are many interfaces which are seeded with Oracle. You can consider as the entry point of the data, and the interface checks the sanity of data.

Base tables: As told earlier once the data is validated will get updated in the base tables, and is considered as the data which is in the base table is accurate and used in many ways. (Reporting..etc..)

The base tables in AP are as follows:

1) ap_invoices_all

2) ap_invoice_payments_all

3) ap_invoice_distibutions_All

4) ap_payment_schdules

5) ap_payment_dustributions_all

6) ap_checks_all

7) ap_accounting_events_all 

8) ap_bank_accounts_all

9) ap_bank_accounts_uses_all


10) What is the process of creating an Invoices and transferring it to GL?

 1. create batch
2. create invoice
3. create distribution
4. validate the invoice
5. actions -à approve
6. if individual create accounting click ok
7. If batch go to batch create accounting.
8. Create accounting hits Payable Accounting(Transfer) ??Program which will create accounting.
9. Run Transfer to GL Concurrent Program
10. Journal Import
11. Post journals
12. Hits balances.

11) How do u Transfer from AP to GL? 
Ans)“Payables transfer to GL program” is used to transfer from AP to GL.

12) How many types of invoices are there in AP.
1. Standarad invoice 
2. Debit Memo
3. Credit Memo
4. Mixed Invoice
5. Retain age Invoice
6. Transportation invoice
7. Prepayment invoice
8. Expenses Report Invoice
9. Payment Request Invoice
10. Po default
13) How many types of purchase order types/agreements are there?

A) Standard Purchase Order: You generally create standard purchase orders for one-time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known

B) Planned PO : A planned purchase order is a long-term agreement committing to buy it
items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities and estimated cost.
EX: Buying goods for Christmas from a specific dealer.

C) Contract PO : You create contract purchase agreement with your supplier to agree on specific terms and conditions without indicating the goods and services that you will be purchasing i.e. for $ amount you must supply this much quantity. You can later issue standard PO referencing your contracts and you can encumber these purchase orders if you use encumbrance accounting.

D) Blanket PO : You create blanket purchase agreements when you know the detail of goods or services you plan to buy from a specific supplier in a period , but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them.
A Blanket Purchase Agreement is a sort of contract between the you and ur supplier about the price at which you will purchase the items from the supplier in future. Here you enter the price of the item not the quantity of the items. When you create the release you enter the quantity of the items. The price is not updatable in the release. The quantity * price makes the Released Amount. Now suppose your contract with your supplier is such that you can only purchase the items worth a fixed amount against the contract.

14.Payment Method:
A funds disbursement payment method is a medium by which the first party payer, or deploying company, makes a payment to a third party payee, such as a supplier. You can use a payment method to pay one or more suppliers. Oracle Payments supports several payment methods for funds disbursement, including the following:

  • Check
  • Electronic
  • wire
  • Clearing

You can pay with a manual payment, a Quick payment, or in a payment batch.

Electronic An electronic funds transfer to the bank of a supplier.You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file during payment batch creation. If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.

Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of a suplier.A payment method where you pay invoices outside of Payables by notifying your bank that you want to debit your account and credit your supplier’s account with appropriate funds. You provide your bank with your supplier’s bank information, and your bank sends you confirmation of your transaction. Your supplier’s bank sends your supplier confirmation of the payment. You then record the transaction manually.


Clearing Payment for invoices transferred from another entity within the company without creating a payment document.Payment method you use to account for intercompany expenses when you do not actually disburse funds through banks. You do not generate a payment document with the Clearing payment method. When you enter the invoice, you enter Clearing for the payment method.You can record a Clearing payment using a Manual type payment only. 

15.What id recurring invoices? What are AP setup steps? 
Ans) some times suppliers would not be sending any invoices. but still the payment have to made to home: rent, lease rentals. in this situation we have to create invoice every period wise. For that purpose we have to create one recurring invoice template. Template means with one master copy creating the multiple invoices is called template. Here we are creating the one invoice master copy is formally known as recurring invoice or recurring invoice template.

 1)we have to create one special calendar 
2)we have to create one full distribution set 
3)we have to enter payment terms in the recurring invoice window 
4)enter the template no, first invoice amount, special invoice amounts
iExpenses is basically an extension Oracle Payables. Employee and Contingent Worker expense reports become supplier invoices and get paid from Payables. You will need following responsibilties to set up Internet Expenses: Payables Manager, Internet Expenses Setup and Administration, System Administration, Application Developer, and AX Developer. If you are also planning on charging expense reports to projects, you will also need Project Billing Super User and General Ledger Super User responsibilities. You will also need access to Oracle Workflow Builder to customize the Expenses workflow and Project Expense Reports Account Generator.

Setups for IExpenses : 

1.Define MOAC
2.Define Job
3.Define Position.
4.Define Employee.
5.Define Financial Options.
6.Define Expenses Template.
7.Define Payable Options.  
8.Assign Cost Center Flexfiedl qualifier to Department segment or Costcenter segment.
9.Define Signing Limits.
10.Assign Profile Option to IExpenses Responsibility.

 1.Define MOAC – See this article
  • Define Responsibilities for GL, AP,PO,HRMS,IEXPENSES
  • Define Business Group.
  • Define Ledger.
  • Define Operating Unit.
  • Define Security Profile.
  • Run Security List Maintenance Program. 
  • Assign Security Profile to Responsibilities. 
  • Run Replicate Seed Data Program.  

2.Define Job
Navigation: HRMS –> Work structures –> Job –> Description.
Click on New button. 

Enter the Job Name and Code.

 3.Define Position.
Click on New button. 

Enter Position number and name ,type, Organization,job,and Status of the position.


Note: If you want create more position please follow same as above procedure.

4.Define Employee.

Navigation: HRMS –> People –> Enter and Maintain.

Click on New. 

 Enter Employee Last name,gender,action and birth date.

Save and click on Assignments. 

Enter HR Organization name,job name and Position name.


Click left lov button and select the purchase order information.

 Enter the primary ledger name and default expenses account.


5.Define Financial Options.

Use the Financials Options window to define the options and defaults that you use for your Oracle Financial Application(s). Values you enter in this window are shared by Oracle Payables, Oracle Purchasing, and Oracle Assets. You can define defaults in this window to simplify supplier entry, requisition entry, purchase order entry, invoice entry, and automatic payments. Depending on your application, you may not be required to enter all fields.
Although you only need to define these options and defaults once, you can update them at any time. If you change an option and it is used as a default value elsewhere in the system, it will only be used as a default for subsequent transactions. For example, if you change the Payment Terms from Immediate to Net 30, Net 30 will be used as a default for any new suppliers you enter, but the change will not affect the Payment Terms of existing suppliers.

Navigation: Payables –> Setup –> Options –> Financial.

 Click on New button.

Accounting Tab:
You are required to enter defaults for the Accounting Financials Options in the Accounting region. 

Accounts Like:
Liability, Prepayment, Discount Taken.  

Supplier-Purchasing Tab:
If you do not also have Oracle Purchasing installed, you do not need to enter defaults in the Supplier- Purchasing region.

 Encumbrance Tab:
If you do not use encumbrance accounting or budgetary control, you do not need to enter defaults in the Encumbrance region. 

Tax Tab:

If your enterprise does not need to record a VAT registration number, you don’t need to enter defaults in the Tax region.

Human Resources Tab:
If you do not have Oracle Human Resources installed, you are not required to enter defaults in the Human Resources region.


 6.Define Expenses Template.
Navigation: Payables –> Setup –> Invoice –> Expenses Report Templates.

Enter operating unit name,template name and enable the enable for internet expenses. 
And finally enter your expenses.


7.Define Payable Options.  
Navigation: Payables –> Setup –> Options –> Payable Options.

Click on Find. 

Click on Expense Report Tab. 

Default Template. The default expense report template that you want to use in the Payables Expense Reports window. You can override this value in the Expense Reports window. A default expense report template appears in the Expense Reports window only if the expense report template is active.

Apply Advances. Default value for the Apply Advances option in the Expense Reports window in Payables. If you enable this option, Payables applies advances to employee expense reports if the employee has any outstanding, available advances. You can override this default during expense report entry.
If you use Internet Expenses and you enable this option, then Expense Report Export applies all outstanding, available advances, starting with the oldest, up to the amount of the Internet expense report.

Automatically Create Employee as Supplier. If you enable this option, when you import Payables expense reports, Payables automatically creates a supplier for any expense report where an employee does not already exist as a supplier. If the supplier site you are paying (HOME or OFFICE) does not yet exist, Payables adds the supplier site to an existing supplier. Payables creates a HOME or OFFICE supplier site with the appropriate address, depending on where you are paying the expense report. The Home address is from the PER_ADDRESSES table, and the Office address is from the HR_LOCATIONS table. Payables creates suppliers based on the defaults you select in this region and employee information from the Enter Person window. You can review suppliers and adjust any defaults in the Suppliers window.
If you do not enable this option, enter an employee as a supplier in the Suppliers window and link the Employee Name/Number to the supplier before you use Expense Report Export. Payables cannot export expense reports without corresponding suppliers, and lists them on Export Results page.
Payment Terms. Payment terms you want to assign to any suppliers that you create from employees during Expense Report Export.

Suggestion: Define and assign immediate payment terms for your employee suppliers.

Pay Group. Pay Group you want to assign to any suppliers that you create from employees during Expense Report Export. You can define additional values for Pay Group in the Purchasing Lookups window.
Payment Priority. Payment priority you want to assign to any suppliers that you create from employees during Expense Report Export. A number, between 1 (high) and 99 (low), which represents the priority of payment for a supplier.

Hold Unmatched Expense Reports. This option defaults to the Hold Unmatched Invoices option for the supplier and supplier site for any suppliers Payables creates during Expense Report Export.
When Hold Unmatched Invoices for a supplier site is enabled, Payables requires that you match each invoice for the supplier site to either a purchase order or receipt. If you enable this option for a site, then Payables applies a Matching Required hold to an invoice if it has Item type distributions that are not matched to a purchase order or receipt. Payables applies the hold to the invoice during Invoice Validation. You cannot pay the invoice until you release the hold. You can release this hold by matching the invoice to a purchase order or receipt and resubmitting Invoice Validation, or you can manually release the hold in the Holds tab of the Invoice Workbench. Payables will not apply a hold if the sum of the invoice distributions by accounting code combination is zero.

 8.Assign Cost Center Flexfiedl qualifier to Department segment or Costcenter segment. 

Navigation: Payables –> Setup –> Flexfield –> Key –> Segments.

Query your COA

Un Freeze Flexfield Definition and click on segments.

 select Cost Center segment and then click on the Flexfield Qualifiers.

Enable cost center segment. 

 9.Define Signing Limits.
Navigation: Payables –> Employees –> Signing Limits.

10.Assign Profile Option to iExpenses Responsibility.

Navigation: System Administrator –> Profile –> Systems.

Please set the following Profile options in Site level as well as Responsibility level.   

A funds disbursement payment method is a medium by which the first party payer, or deploying company, makes a payment to a third party payee, such as a supplier. You can use a payment method to pay one or more suppliers. Oracle Payments supports several payment methods for funds disbursement, including the following:

  1. Check
  2. Electronic
  3. wire
  4. Clearing

You can pay with a manual payment, a Quick payment, or in a payment batch.

Electronic An electronic funds transfer to the bank of a supplier.You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file during payment batch creation. If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.

Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of a suplier.A payment method where you pay invoices outside of Payables by notifying your bank that you want to debit your account and credit your supplier’s account with appropriate funds. You provide your bank with your supplier’s bank information, and your bank sends you confirmation of your transaction. Your supplier’s bank sends your supplier confirmation of the payment. You then record the transaction manually.

Clearing Payment for invoices transferred from another entity within the company without creating a payment document.Payment method you use to account for intercompany expenses when you do not actually disburse funds through banks. You do not generate a payment document with the Clearing payment method. When you enter the invoice, you enter Clearing for the payment method.You can record a Clearing payment using a Manual type payment only. 

Navigation: Payable Manager –> Setup –> Payment –> Payment Administrator.

Click on Go To Task.

 Click on Create button.

Enter the Payment Method name and code and then click on Next.

 Select the respective responsibilities which we want shown this payment method in these responsibilities.

Click on Next, Next, Finish.

1.  What responsibility should I use when doing the set up for General Ledger?
Use a seeded responsibility like ‘Oracle General Ledger Super User’.
You may also need to use the System Administrator responsibility.
2.  What are the pre-requisites required to define a new calendar?
According to your business needs you need to decide the calendar
type required i.e. monthly, weekly or biweekly, the number of periods,
adjusting periods and the maximum number of periods within a fiscal year.
3. What are the pre-requisites required to define a new Ledger?
Define a Calendar, Chart of Accounts and enable the functional Currency  and convention of subledger accounting method.
4. Why must I check the calendar definition before assigning to a Ledger?
The calendar definition cannot be changed once it is assigned to a
set of books so it is very important to check that the calendar
definition is suitable to the specific business needs, has been defined
correctly without any gaps and that the period type is in accordance
with the business requirements.
5.  What General Ledger profile options need to be set up for using
    a new ledger with a responsibility.
The profile option GL Ledger Name.
Once this profile option is set.
You may also need to set up other profile options as mentioned in the
Oracle General Ledger User’s Guide.
6.  Can I define more than one Ledger?
Multiple Ledgers may be defined within Oracle General Ledger,
however for a given installation of Oracle subledgers you can use
only one Ledger (unless you are multi-org).
7.  What type of Ledger do I need: Primary, Reporting or None?
The Primary and Reporting options are used with the MRC feature of
Oracle Applications.  If you are not using MRC then you may choose
8.  Are there any mandatory accounts that are required for the Ledger definition?
A valid Retained Earnings account needs to be assigned on the Ledger
form. Depending on the other options you may choose, such as
Translation, Suspense Accounting, Encumbrance, etc. you need to enter
valid accounts for those as well.
9.  What is Dynamic Insertion? Is it required during setup?
Dynamic insertion is an Accounting Flexfield feature whereby you can
allow users to create new combinations upon entering a flexfield
For every new flexfield combination entered, a unique code combination
id is also created which is used to enter and retrieve data.
You may enable or disable this Accounting Flexfield feature at any time,
on the Key Segments form.
10.  Do I need Cross Validation rules set up before entering journals in
     General Ledger?
If you plan to restrict certain accounts to be used only with certain
company or cost centers then you have to plan on this and define cross
validation rules before the code combination id is created.
Once the code combination id is created, new cross validation rules
will not restrict the account’s usage.
11.  Do I need to turn Suspense posting on?
It is not mandatory but if suspense posting is checked, a valid suspense
account must be entered in the Ledger form. It is used to balance
journal entries for which the entered amounts are out of balance.
12.  Is there an automated tool to load the account segment values
     in Oracle General Ledger?
No, the values have to be entered using the Segment Values form in
Oracle General Ledger.
 (N) Setup > Financials > Flexfields > Key > Values
Oracle General Ledger User Guide
13.  Do I need to set up Journal Approval?
It can be set up at any time and is not a mandatory step for completing
the General Ledger setup.
14.  What does the check box Balance Intercompany mean on the ledger form?
If journals are created for different balancing segment values, the
journal must be balanced by balancing segment value (debits must equal
credits for a particular balancing segment value). Checking this option
on the ledger form will allow GL to balance these journals by using
the default intercompany accounts set up in Oracle General Ledger.
If it is not checked, the journal must be balanced (by balancing segment
value) before it is imported or posted.
15. Is there any setup at the journal source level to view subledger data in GL?
Check the option ‘Import Journal Reference’ for each journal source/category
combination for which you wish to transfer the subledger reference data
from the subledgers during the Journal Import process.
Please note that the following may also have to be verified to view subledger
data in GL:
1. Subledger setup.
2. The parameters for the transfer process from the subledgers.
3. Journal import process parameters.
16.  What is the option Rounding Differences Account in the ledger form?
When transactions are entered in foreign currencies the conversion to
the functional currency may cause rounding differences.
The Rounding Differences account is used to balance any journal entry
for which the converted amounts are out of balance.
When this option is checked, a valid account combination must be
defined to track the rounding differences.
17.  Is there any additional maintenance for Sources and Categories in General
     Ledger after these items are initially setup?
Once General Ledger Sources and Categories are setup, there is no additional
18.  How to review GL: Ledger name  profile options at all levels ?
Responsibility = System Administrator
Navigation = Profile/System
  1. Check the desired display boxes:  Site, Application, Responsibility and User
  2. In the Profile field, enter GL Ledgers% and click on the
     [Find] button.
19.  Can I change the functional currency for an existing Ledger?
It is neither recommended nor supported to change the currency of a

Ledger that is currently in use.

Questions and Answers

What is the best source of information regarding Definition Access Sets?

See the Release 12 General Ledger Implementation Guide, beginning on page 1-137: Definition Access Sets.

How to properly assign/remove Definition Access Sets in Oracle General Ledger?

Follow Document 415901.1 for steps on how to remove the Definition Acess Sets, but please note that DAS definitions cannot be deleted. These will remain in the Definition Access Sets -> Define form but will not have the definition name assigned to it (if all definitions were removed – in this example we only created one – then deleted it).

R12 Accounting Flexfield and GL Ledger Flexfield are not matching, is this a problem?

As documented in the General Ledger User Guide and Implementation Guide, the new GL Ledger Flexfield is automatically created and maintained. Users should ignore this Flexfield and never change it. Development has confirmed that the value for the dynamic insertion will not cause a problem. So if you notice any inconsistencies between Accounting Flexfield and GL Ledger Flexfield can be completely ignored.
See Document 418154.1 for more information.

How can I setup a Legal Entity country, if the country is not available in LOV?

Navigate into Legal Entity manager responsibility ->Setup -> Jurisdictions -> create identifying jurisdiction by setting identifying to Yes and territory to the country required, enter any name. Then enter registration codes. If the jurisdiction is already set to yes, then go to System Administrator Responsibility> go to Profile options> select the application name as General Ledger> then select the user by your user> in the profile choose <Default Country> , change the default country to the country required.
See Document 438089.1Document 444633.1 for more information.

How do I remove Balancing Segment Value assignments from a Ledger?

Initially it was not possible to remove a BSV assigned to a Ledger once the setup has been complete, but it was delivered via recommended Patch 7529614:R12.GL.A.
However, this functionality does not apply to a Legal Entity. There is no possible way to remove a BSV assigned to a Legal Entity once the setup is complete.

Can I change the Ledger Currency after setup is complete?

No, it is not possible to change the ledger currency after the accounting setups have been completed. Same as in R11, in R12 the chart of accounts, calendar and currency cannot be changed after the setup has been completed and any attempt to perform such a change in the tables will not be supported and is highly un-recommended.
See Document 556220.1 for more information.

Can I enable Average Balances for a ledger after the ledger setup is complete?

No, it is not possible to enable average daily balances for a ledger once the ledger has been saved. Once the ledger setup is complete, the option to enable average daily balances is not available as part of the accounting setup manager.
See Document 734099.1 for more information.

Can I change the Subledger accounting method (SLAM) in the ledger definition after going live?

The accounting method should not be changed without advice from the subledger support team. Changing it can cause severe corruption, if, for example, you go from standard accrual to MFAR or the other way around. Please log a service request with the relevant subledger team to get further advice on whether the change is possible.

Can I delete, disable or end-date Primary Ledgers?

Document 782244.1 says that it is not possible to delete or end date the primary ledger whenever created and completed.
Yet, you can workaround this through the responsibilities – create a new Data Access Set, to prevent access to the ledgers that you wanted to delete and only allow access to the Primary Ledger required and attached this Data Access Set to the users responsibilities.

Can a Secondary Ledger be associated with more than one Primary Ledger?

No, a secondary ledger can only be associated with a single primary ledger.
See Document 735468.1 for more information.

How do I disable a Reporting Ledger?

Disable the Reporting currency from Accounting Setup Manager. In Accounting Setup Manager disable the conversions to the reporting ledger.
Create a new ledger set and a new data access set that contains only the Primary ledger
Update the GL: Data Access Set profile option at the responsibility level with this new data access set.See Document 563546.1 for more information.

How do I disable a Secondary Ledger already created?

Query for your Primary Ledger from the ASM and click on the “Disable” icon next to the secondary ledger you in the Secondary Ledger table.
See Document 761380.1 for more information.

How do I set up the Responsibilities and Data Access Sets needed for a Primary Ledger and Secondary Ledger, when the ledgers have different charts of accounts? Can a Ledger Set be used in this case?

All ledgers in a Ledger Set must share the same chart of accounts and accounting calendar/period type combination. So a Ledger Set cannot be used in this case, where the charts of accounts are different. Instead, separate responsibilities must be used for access to each ledger. See Document 460654.1 for more information.

Can I change Primary Ledger to Secondary and Secondary to Primary?

No, changing ledger types is not permitted for the time being. The only way is to create new ledger after R12 implementation and use consolidation to put the ‘history’.
See Document 603624.1 for more information

How to generate Reporting Sequence?

The ledger is setup to have Sequencing Context defined for GL Period Close – GL Journal Entry or GL Period Close – Subledger Journal Entry.
See Document 744962.1 for more information.

How can I post a journal in an error status? It does not show in the post journal batches screen.

The Posting Journal Batches screen will only display journals available for posting. A batch in error is not available for posting. If you cannot clear the error you need to post from the journal entry screen.
For more information see :
    • Document 1390899.1 Troubleshooting Journal Batch Posting Status with Error%
    • GL Users Guide: Reviewing the Batch Posting Status
    • GL Users Guide: Correcting Batch Posting Errors

What are the batch posting error statuses?

Error1: The batch has a control total violation
Error2: Selected for posting to a period that is not open
Error3: Showing no journal entries for this batch
Error4: Showing journal control total violation
Error5: Showing multiple problems preventing posting of batch
Error6: Showing an unbalanced journal entry, and suspense posting is not allowed
Error7: Showing invalid journal entry lines or no journal entry lines for this batch
Error8: Showing unbalanced encumbrance entry without reserve account
Error9: Showing an encumbrance journal entry with no encumbrance type
Error10: Showing unbalanced intercompany journal entry
Error11: Showing unbalanced journal entry by account category
Error12: Funds reservation failed
Error13: Showing invalid period and conversion information for this batch
Error14: Showing journal entry with invalid or inactive suspense account
Error15: Showing encumbrance entry with invalid or inactive reserve account
Error16: Showing journal entry with invalid or inactive intercompany account
Error17 – Showing untaxed journal entry
Error18 – Showing unapproved journal batch
Error19 – Unopened reporting currency period
Error20 – Unopened reporting currency encumbrance year
Error21 – Unable to determine conversion rate to replicate journal
Error22 – Invalid or inactive rounding differences account in journal entry
Error23 – Showing sequence assignment failure
Error24 – Showing cutoff rule violation
Error25 – Unable to validate or create CTA
Error26 – Showing insufficient access to ledger or segment value
Error27 – Showing insufficient access to generated accounts defined for ledger
Error28 – Showing invalid balancing or management segment value for the ledger
Error29 – Showing insufficient access to reporting currency or segment value
Error30 – Showing invalid balancing segment value for generated accounts
Error31 – Unopened secondary ledger period
Error32 – Unopened secondary ledger encumbrance year
Error33 – Unable to retrieve accounts from chart of accounts mapping
Error34 – Unable to determine journal effective date
You can find the possible known causes and solutions for each error code in Document 1390899.1 Troubleshooting Journal Batch Posting Status with Error%.

Why is the Post button grayed out on the Enter Journals form?

In Release 10.7, you must set the profile option ‘Journals:Allow Posting During Journal Entry’.
In Release 11, 11i and 12 this is controlled with Function Security.
See Document 1051909.6: Enable/Disable Posting From Enter Journals Form In General Ledger (GLXJEETN), for more information.Also, the Post button is grayed out also when journal approval is required. This is indicated when the Approve button is enabled for the journal.

Can I delete a batch from the Post Journals form?

No. This form will show all the batches with a status allowing to post.

Is it possible to select all batches for posting on post journal form ?

There is currently no select all option on the Post Journals (GLXJEPST) form to select all batches for posting. An alternative would be to setup Autopost which would select multiple batches but not manually from the form.
See Document 1136093.1

What reports are available for journal posting?

A report is available on the Requests form for the journal post concurrent request run. This report summarizes the status of the request and reports on any errors. A log of the concurrent request run is also available.
The Journals General report can be run for Posted, Unposted or Error status batches.

Can I post out-of-balance journal entries?

Yes, if you turned on suspense posting for the set of books or ledger.
If you enabled suspense posting when you defined the set of books/ledger, General Ledger automatically balances each out-of-balance journal entry against a suspense account you specify for your set of books/ledger.
In R12, you can define additional suspense accounts if you want to balance journal entries with specific sources and categories to corresponding suspense accounts automatically.
References: Oracle General Ledger User’s Guide, Release 12, page 1-192 and Defining Suspense Accounts, Oracle General Ledger Implementation Guide (R12)

Can I post to a parent account?

No, you can only post to detail level accounts. Parent accounts do not hold balances.

How do I find out who posted a journal for internal control and audit purposes?

In 11i, an enhancement request bug:3613631 added a new column POSTED_BY in the gl_je_batches table since 11i.FIN_FP.G. Fixed file versions are :

GLXJEENT.fmb 115.71
glpubr.lpc 115.15
glmcje.lpc 115.7

This is included in base R12 version.

Are security rules enforced in posting?

No. Posting is controlled at the user level. A user can post all journals for a set of books/ledger, or none at all.
This is controlled by function security in Release 11, 11i . In Release 10.7, you can remove the Post form from the user’s menu, to restrict posting.
Posting in R12 will check on the security rules assigned to the user (see Bug:12433242), in particular regarding the intercompany/intracompany account combinations required for balancing.

Can I post to a period prior to my latest open period? Are the balances rolled forward? Is retained earnings account updated?

Yes, this is valid for all versions. From Oracle General Ledger User’s Guide, Release 12, page 1-188:

When you post to an earlier open period, actual balances roll forward through the latest open period; budget balances roll forward through the end of the latest open budget year; and encumbrance balances roll forward through the end of the latest open encumbrance year.

If you post a journal entry into a prior year, General Ledger adjusts your retained earnings balance for the effect on your revenue and expense accounts.

Note: the budgets and encumbrances balances do not automatically roll forward into a new year. This is accomplished by the Year-End Carry Forward program.

I opened the first period of the new year without closing the prior year. Will this cause a problem if posting is still required to the last year?

No. In general, closing a period in General Ledger does nothing more than close that period. There is no additional processing that goes on behind the scenes when you close a period.
Care should be taken in case of using document sequences, as the numbers could start to be consumed in the new period journals.
In R12 the closing period program performs additional work (for example accounting and reporting sequences generation).

Can I drop the GL_POSTING_INTERIM_XX tables?

Yes you can. However, before doing so, you should check the posting, translation, open period or summarization processes that created these files.
The GL_POSTING_INTERIM_XX tables are temporary tables and are normally dropped after the process has completed successfully.TIP: Wait a week or so before you delete the table manually, just in case your processes did not complete.

WARNING: Do not drop the GL_POSTING_INTERIM and GL_SUMMARY_INTERIM tables (i.e., the tables without the numbers at the end of their names), as these tables are used by the General Ledger system.

See the following notes for more information:

Document 416542.1: Is there any Program to Drop Temporary tables which are no more required?,
Document 364040.1: GL_POSTING_INTERIM_xxxx Tables are Not Being Dropped after Successful Posting.

How do I run posting from the command line in debug mode?

You can run GL programs from the command line.
See Document 1031719.6 for more information.

How can I find and delete a batch that is shown on the Posting execution report with the error ‘No journal entry lines for this batch’?

A batch is available for posting on the Post Journals form that has no debit or credit amounts shown for it.
You post the batch and the Posting execution report contains the error ‘No journal entry lines for this batch’.
Now the batch is greyed out on the Post Journals form and I can not find it on the Enter Journals form.The reason for this error is that this batch does not have any journals.
You need to use the Find Batches window to find the Batch on the Enter Journals form. From there, you can delete the batch.
The first window that is displayed when you navigate to the Enter Journals form is the Find Journals window. You can not find the batch using this window, since there are no journals associated with the batch.
See Document 275992.1 for more information.

I submitted posting and receive the following ORA-01403: no data found error in the log file. How do I correct this?

The log file shows the following errors :
glpmpi() 04-MAR-1998 08:00:00
SHRD0030: glpmpi() encountered an error returning from errexit:SHRD0042: Error in ROUTINE: glpmpi, status: 0
sqlcaid: sqlabc: 0 sqlcode: 0 sqlerrml: 0
ORA-01403: no

  data found
These errors occur frequently after you apply a major patch or upgrade your database.
See Document 1050587.6: ORA-1403 in glpmpi when posting in General Ledger, for more information.

When I submit a batch for posting I receive the error ‘APP-8058: This form failed to submit your posting concurrent request. Please ensure that your concurrent manager is running.’ What is the cause?

Set the ‘Printer’ profile option. This profile option must be set to successfully submit most concurrent requests.

Posting fails with Error 10: Showing unbalanced intercompany journal entry, or Error 16: Showing journal entry with invalid or inactive intercompany account. How can I correct this and resubmit the posting?

This is an unbalanced intercompany journal.
If automatic intercompany balancing is not enabled, you must manually add lines to the journal to balance the companies (balancing segment values).
If automatic intercompany balancing is enabled, then one of the following is true:An intercompany account has not been defined for one or more balancing segments and dynamic insertion is not enabled.
The system is trying to create an account code combination that violates a cross-validation or security rule.
The system is trying to create an account code combination that contains a segment that is disabled or not postable.
An intercompany account combination is disabled or not postable.

See Document 1012982.102: How to Check The Correct Setup of Intercompany Accounts to Avoid the Error16, for more information on how to resolve this.

Note: Error16 can also be caused by a cross validation rule preventing the creation of a suspense account. Suspense logic is always applied before intercompany balancing in posting. If you have unbalanced journal headers in your batch, suspense posting will first try to balance them with the suspense accounts, i.e. making the total header debit = total header credit, and also making the journal entries balanced within the balancing segment values.

Error10 is received due to Cross Currency line added by Journal Import having the wrong balancing segment value. How can this be resolved?

If Journal Import is not able to create the appropriate account (due to security rules, cross validation rules, disabled account combination, etc.), it will use the original value for the balancing segment value. This results in the unbalanced intercompany journal – Error10. To resolve this, ensure the account combination, if already defined, is enabled. If it does not exist, dynamic insertion must be enabled, and have no security or cross validation rules that would prevent the creation. Bug:1617219 has this information.
The deferred COGS of goods account is the new feature introduced in Release 12. The basic fundamental behind the enhancement is that the COGS is now directly matched to the Revenue. The same was not possible till now.

Prior to this enhancement, the value of goods shipped from inventory were expensed to COGS upon ship confirm, despite the fact that revenue may not yet have been earned on that shipment. With this enhancement, the value of goods shipped from inventory will be put in a Deferred COGS account. As percentages of Revenue are recognized, a matching percentage of the value of goods shipped from inventory will be moved from the Deferred COGS account to the COGS account, thus synchronizing
the recognition of revenue and COGS in accordance with the recommendations of generally accepted accounting principles.

The Matching Principle is a fundamental accounting directive that mandates that revenue and its associated cost of goods sold must be recognized in the same accounting period. This enhancement will automate the matching of Cost of Goods Sold (COGS) for a sales order line to the revenue that is billed for that sales order line.

The deferral of COGS applies to sales orders of both non-configurable and configurable items (Pick-To-Order and Assemble-To-Order). It applies to sales orders from the customer facing operating units in the case of drop shipments when the new accounting flow introduced in 11.5.10 is used. And finally, it also applies to RMAs that references a sales order whose COGS was deferred. Such RMAs will be accounted using the original sales order cost in such a way that it will maintain the latest known COGS recognition percentage. If RMAs are tied to a sales order, RMAs will be accounted for such that the distribution of credits between deferred COGS and actual COGS will maintain the existing proportion that Costing is aware of.  If RMAs are not tied to a sales order, there is no deferred COGS.

To set the deferred COGS account.

Inventory — Setup — Organization — Parameters — Other Accounts
A new account is added which is referred as the Deferred COGS accounts. 

Please note that when upgrading from a pre R12 version the DEFERRED_COGS_ACCOUNT will be populated if it is null with the cost_of_goods_sold_account on the organization parameter. This can then be changed accordingly if a different account is required.


Release 12 : 
When a Sales order is shipped the following accounting takes place:

Inventory Valuation Account : Credit.
                   Deferred COGS account : Debit

Once the revenue is recognised, you would need to decide the percentage you wish to recognize the Revenue. A COGS recognition transaction will be created to reflect a change in the revenue recognition percentage for a sales order line.

The steps to generate such transactions are as follows:
1. Run the Collect Revenue Recognition Information program. This program will collect the change in revenue recognition percentage based on AR events within the user specified date range.
2. Run the Generate COGS Recognition Events. This program will create the COGS recognition transaction for each sales order line where there is a mismatch between the latest revenue recognition percentage and the current COGS recognition percentage.

Note that users can choose how often they want to create the COGS Recognition Events.

Navigation to run the COGS recognition request :
– Cost > COGS Recognition > Collect Revenue Recognition Information
– Cost > COGS Recognition > Generate COGS Recognition Events
– Cost > View Transactions > Material Transactions

The distribution for the COGS Recognition transaction associated with the Sales Order transaction now would be as follows:

       Deferred COGS : Debit revenue percentage
       COGS               : Credit (Actual revenue percentage )

Thus, essentially the recognized COGS balance is to move the value from Deferred COGS to COGS.

This particular COGS recognition transaction actually correspond to a revenue recognition percentage change.

You can view the transactions as :
– Cost > View Transactions > Material Transactions > Distributions

A new COGS Revenue Matching Report shows the revenue and COGS information of sales order that fall within the user specified date range by sales order line

SIMPLER TERMS ( Table level details ) : 
Once the whole cycle is complete we will have 2 transactions lines in mtl_material_transactions.

1. Sales Order
2. COGS Recognition transaction

Accounting will be in mtl_transaction_accounts and the Subledger accounting tables as follows:

Transaction 1:
Inventory Valuation Account : Credit. (item_cost)
             Deferred COGS account : Debit (item_cost) 

Transaction 2:
Deferred COGS : Credit (Actual revenue percentage)
              COGS : Debit (Actual revenue percentage )