INDEX

1. Key Flex Fields -------------------------------000

2. Flex Field Qualifiers-------------------------000
3. Segment Qualifiers--------------------------000
4. Compile Structure---------------------------000
5. 4 Cs---------------------------------------------000
6. Value sets--------------------------------------000
7. Currency---------------------------------------000
8. Calendar---------------------------------------000
9. Primary Ledger-------------------------------000
10. Create Responsibility-----------------------000
11. Open / Close Periods-----------------------000
12. Journal Source-------------------------------000
13. Journal Category----------------------------000
14. Enter Journals-------------------------------000
15. Post Journal

16.
17.
18.
19.
20.
21.

R12 GL Setup

Reverse Journal
Suspense Journal
Recurring Journal
Foreign Currency Journal
Auto post
Auto Reversal

Descriptive Flex Fields

R12 GL Setup

Key Flex
Fields
General Ledger

R12 GL Setup

FLEX FIELD QUALIFIERS & Segment Qualifiers IN GL

Flex Field Qualifiers (Assign to Segments)

1.
2.
3.
4.
5.
6.

Balancing Segment FFQ

Cost Center Segment FFQ
Natural Accounts Segment FFQ
Inter Company Segment FFQ
Secondary Tracking Segment FFQ
Management FFQ

Segment Qualifiers (Assign to Segment values)

7. Allow Budgeting
8. Allow Posting
9. Account type (Assets / Liability / Expenses / Revenue / Ownership)
10.Third party control
11.Reconcile

R12 GL Setup

Assignment of FFQ to
Segments

Company

Department

Accounts

Balancing Segment FFQ

Inter company Segment FFQ
Cost Center Segment
Natural Accounts Segment FFQ

Note:

One FFQ we can use only one time.

One segment we can assign to more than one FFQ.
We can create maximum 30 segments apart from General Ledger
Segment (Total 31).
R12 GL Setup

Compile Structure

Segment separator is used to separate the segments in the code

combination. (Dash, Period, Pipe and Custom).

Allow Dynamic Inserts: If we enable Allow Dynamic inserts, then we are

able to enter the all possible code combinations at the time of transaction
entry.
If we want to know how many code combinations in our structure, multiply
the number of values across the segments.
If we disable allow dynamic inserts, we can not enter all possible code
combinations at the time of transaction entry.

Enable Freeze Flex Field Definition and click on Compile button.

The structure information will get stored in a tabular form
GL_Code_Combinations_KFV.

R12 GL Setup

Primary Ledger (Set of Books) 4

Cs
4 Cs

Chart of Accounts (Structure, Segments & Segment values)

Currency
Calendar
Accounting Convention Method (Accrual / Cash)

Pre requisites for Chart of Accounts

Value Set
Structure and Segments
Segment Values

Value Set:
Value set is Set of rules or properties which are going to enforce or attach to segments.
Upon enforcing or attaching value set to the Segment, your segment will behave or act
according to the value set.
R12 GL Setup

Contents of Value Set

List Type

Security Type

Format type

Validation Type

3 Types

3 Types

7 Types

8 Types

1. List of Values

1. No Security

1. Char

1. Dependent

2. Long List of Values

2. Hierarchical

2. Date

2. Independent

3. Pop List

3. Non Hierarchical

3. Date Time

3. None

4. Number

4. Pair

5. Standard date

5. Special

6. Standard date
time

6. Table

7. Time

7. Translatable
Independent
8. Translatable
Dependent

R12 GL Setup

Validation Types in Value Set

Independent: If validation type is independent, we can define values for the value
set and we can use at the time of transaction time.

Dependent: If validation type is dependent, then we cannot define values for value
set. Dependent values are always depending on the independent value set.

None: If validation type is None, we can not define values for the value set. User can
enter desire value at the time of transactions entry.

Pair & Special: Used in the programs to add additional pop up window for
parameters.

Table: If validation type is table, then we can not define values but we can use
values from tables.

Translate dependent & Independent: We use to translate the segment values

into desire language.

R12 GL Setup

NonFunctional
Monitory Currency
Currency

R12 GL Setup

10

Calendar
Accounting
Transaction
Calendar
Jan to
Starts
Calendar
Calendar
(Normal
Dec
at one
of the
year
/ Regular)
same
& ends
yearin next year

R12 GL Setup

11

Period Type

Period types are used in defining Accounting Calendar.

Each ledger has an associated period type.

When you assign a calendar to a ledger using Accounting Setup Manager, the
ledger only accesses the periods with the appropriate period type.

You can assign up to 366 accounting periods per fiscal year for any period type,
and maintain actual balances for those periods.
For example, you could define a Week period type and specify 52 periods per year.

However, for budgets you can only use the first 60 periods.

General ledger have 3 standard period types:

1. Month
2. Quarter
3. Year

R12 GL Setup

12

Calendar Status
Calendar Status:
1.
2.
3.
4.
5.

Open
Closed
Permanently Closed
Future Entry
Never Opened

Year Types
1. Calendar
2. Fiscal

R12 GL Setup

13

Define Accounting Calendar

Accounting Calendar Determines the accounting periods for General ledger
application where we enter transactions.
Step: 1 Define Period Type
Navigation: Setup Financials Calendars Type
Step:2 Define Accounting Calendar
Navigation: Setup Financials Calendars Accounting

Enter Name and Description your accounting Calendar

Enter the periods as per period types you choose
Choose period type
Enter from To dates
Enable adjusting Check box for Adjusting period
Validate your current calendar

R12 GL Setup

14

Mandatory Accounts for Set of

Books
1.
2.
3.
4.
5.
6.

Retained Earnings Account (Ownership)

Translation Adjustment Account (Expenses)
Suspense Account (Assets / Liabilities)
Rounding Difference Account (Expenses)
Reserve for Encumbrance (Ownership)
Net Income (Expenses / revenue)

Note:
From the above Retained Earnings account is mandatory to
create primary ledger. Remaining 5 accounts are optionally
mandatory based on the requirement.

R12 GL Setup

15

Define Primary Ledger

Ledger is a reporting entity in which we will record the all our

organization transactions and also it will determine Chart of
accounts, Currency, Calendar and Accounting Convention method.

Step:1
Define Retained Earnings Account. (Ownership)
Navigation:
Setup Financials Flex Fields Key Values

Step:2
Define Ledger
Navigation:
Setup Financials Accounting Setup Manager Accounting Setup

R12 GL Setup

16

Click on Create Accounting Setup tab

Enter your desired Primary Ledger Name
Choose Chart of Accounts, Calendar, currency and Sub ledger
accounting method
Click on Update accounting options
Update ledger options by choosing Retained earnings account,
then it will turn
as with your Primary ledger name.
And also update : 1) Balance segment values 2) Reporting
Currency 3) Sequencing 4) Sub ledger accounting options
Step: 3
Create Legal Entity
You will find one more legal entity as Establishment
Query your primary ledger and add legal entity to assign LE to
Ledger.
R12 GL Setup

17

Define Primary Ledger

Now you will find 6th option as Operating unit

By following this legal entity registration which companies are
using this legal entity registration we have to assign them.
Add balancing segment values to Legal entity level.
Now system will add one more option Inter company accounts
At this point you can remove some legal entities
Say Complete
Now you can not remove any information.
Update operating unit option and also inter company option.
Note: Structure created under Accounting Flex Field will added to
GL Ledger KFF. It will adding one more segment called as Ledger
as a mirror. This is used at mass allocation purpose.

R12 GL Setup

18

Create Responsibility
Navigation:
System Administrator Security Responsibility Define
1) Menu:
Menu will determine what are all the windows we are going to having
access under the particular responsibility.
2) Request Group:
It will determine which are all programs will be available under particular
responsibility.
3) Profile option:
Profile option is a security feature to restrict the access into application.
By using profile option we will assign ledger to the responsibility.
Navigation: System administrator Profile System.

R12 GL Setup

19

Open / Close periods in GL

Step: 1
Open the periods
Navigation:
Setup Other Open / Close
To change the status of period select and change.
There are 5 types of period status:
Status
Entry Posting
1. Never opened
X X
2. Open

3. Closed
X X
4. Future
X
5. Permanently ClosedX X

R12 GL Setup

20

Journal Source

It is a Journal Component, it is used to identify the ORIGIN of the journal.

To define journal source: Setup Journal Sources.

When we import data from legacy systems to GL we require source names.

Importing journal Reference:

To import detailed information from summary journals we use this option.

Require Journal approval:

This field is used to get the journal approval by higher management for different journal
sources.

Import using key: This is used to define whether journals will be imported using source
key or not.

Freeze Journals:
To freeze the journal source, preventing users from making changes to any un posted
journals from that source, or reversing journals for Sub ledger Accounting journal
sources.
R12 GL Setup

21

Journal Source

Effective date Rule:

1. Fail
2. Leave alone
3. Roll Date

Fail: Journal Import will reject transactions when the effective date is not a
valid business day. No posting takes place.
Leave Alone: Journal import will accept all transactions regardless of the
effective date.
Roll Date: Journal Import will accept the transaction, but roll the effective
date back to the nearest valid business day within the same period. If there is
no prior valid business day within the same period, the effective date is rolled
forward.

Note: The Effective Date Rule field will not appear unless you have average
balance processing enabled for at least one ledger.
R12 GL Setup

22

R12 GL Setup

23

Journal category

Journal Category determines the purpose or type of the journal entry.

When you enter a journal you specify a journal category.

Examples:
1. AP Invoices
2. AP Payments
3. Adjustment
4. Budget
5. Intercompany
6. Inventory
7. Payments
8. Payroll
9. Receipts
10.Year end close.
R12 GL Setup

24

Enter Journals

It is used to record the day to day business transactions. It contain Dr and

Cr lines. Always debit must be equal to credit.
You can enter several types of journal entries, including foreign currency
journals, statistical journals, and intercompany journals.
Journals can be created in two ways:

1. Manual 2. Import

1. manual: Enter journals manually by using navigator

Navigation to enter Journal:
Journals Enter
Manual journals can be enter in 2 ways:
1. individual Journal 2. batch Journal.

R12 GL Setup

25

Enter Journals

Journal body contains two areas: 1. Header 2. Lines

We have 2 types of methods: 1. Standard Journal 2. Average Journals
We have 3 types of balances: 1. Actual 2. Budget 3. Encumbrance.

R12 GL Setup

26

Post Journal

Navigation: Journals Post

Use Post button available in Journal window
Through Navigator (Journal Post)

R12 GL Setup

27

Reverse Journal

We generally reverse that journal, which got entered also got posted,
where you find there is an error in the posted entry.
Once the journal is got posted it wouldnt allow the user to make any
changes.
The only solution or remedy is to reverse the journal.
In order to reverse the journal, first review the journal, use reverse button
available in the journal window, also indicate the period where the reversal
entry should get created.
Navigation: Journal Entry
Once we reverse the journal system will create one un posted journal,
showing the earlier debit balance to credit side & earlier credit balance to
debit side.
Post this un posted journal.
After the journal reversal the particular account in the journal will show the
balance Zero.
Reverse is of two types:
R12 GL Setup
Change sign (Profile option is required)

28

Suspense Journal

As per Accounting principles Debit amount should always equal to Credit amount
for the same Company Value.
If both amounts are not equal, the difference amount will go to Suspense Account.

Setup required for Suspense Journal:

1. Create Suspense Account (Expenses / Revenue)
Navigation: Setup Financials Flex Fields Key Values.
2. Enable suspense account feature at ledger level under journal processing tab
Navigation: Setup Financials Accounting setup manager Accounting setup
3. Define Suspense account Rules
Navigation: Setup Accounts Suspense
4. Create Journal / Review Journal Navigation: Journal Enter.

R12 GL Setup

29

R12 GL Setup

30

Recurring Journal

Journals which are repeating every accounting period is called a recurring journal.

Recurring journals are 3 types:

1. Standard Recurring Journal
2. Skeleton Recurring Journal
3. Formula Recurring Journal
. Standard Recurring Journal:
Under standard recurring journal method same accounts with the same amounts
will be effected with the each accounting period. We know account and amount
already.
. Skeleton Recurring Journal:
Under skeleton journal method partial information will be entered at the time of
recurring journal creation. We know the account but do not know the amount.
. Formula Recurring Journal:
Using formula recurring method, journal lines amounts will be calculated by
recurring journal program based on simple formula.
R12 GL Setup

31

Recurring Journal Setup

Step:1 Define Recurring Journal

Navigation: Journals Define Recurring.

Line:1
Enter Expenses account (Debit Account) and the amount for Standard Recurring
Journal
Enter only Debit account for Skeleton recurring, do not enter amount
Enter debit account & enter the formula for the amount for Formula recurring journal
Line: 2
Enter the credit account
We can enter 9999 lines in a recurring journal. In which 9998 lines are for debit lines
and only one line is for credit line. We call this line as offset account line. Hence we
have to enter line 2 as a offset line and key in the number 9999 in line 2.
Do not enter amount for line 2. System will add all the debit lines amount and
consider the credit amount as offset account.
If you wish to enter more credit lines, we have to give negative sign for the lines, for
example -9998, -9997 etc.

R12 GL Setup

32

Recurring Journal Setup

Step: 2
Generate the recurring journal = Click on Generate button
Say Submit
Schedule the journals for recurring.
Enter parameters
Run program.

Step: 3
Ensure Concurrent program completed Normal

View Request

Step: 4
Query the recurring journal and post.
Journal Enter.
With the above report system will generate un posted journals in GL.,
with the source : recurring.
Post the journals after review.

R12 GL Setup

33

Foreign Currency Journal

Step: 1
Define Conversion Rate Type
Navigation: Setup Currencies Rates Types.
Enter currency types which you want conversion
Choose conversion rate type
Enter the daily rates by choosing Enter by date range

Step: 2
Navigation:

Define foreign currency rates.

Setup Currencies Rates Daily (USD to INR)

Step : 3 Enter Journal

Navigation Journal Enter
Choose Currency as foreign currency
Choose Exchange rate type
Post the journal

R12 GL Setup

34

R12 GL Setup

35

Auto Post

We Can post the journals automatically by specifying the some criteria in

Auto post criteria set.

Criteria could be : combinations of ledger or ledger set, journal source,

journal category, balance type, and period.

Once you define an Auto Post criteria set, run the Auto Post program to
select and post any journal batches that meet the criteria defined by the
criteria set.

You can also schedule the Auto Post program to run at specific times and
submission intervals.

You can submit the Auto Post program or schedule Auto Post runs directly
from the Auto Post Criteria Sets window. Alternatively, you can use the
Submit Request window.

R12 GL Setup

36

Auto Post = Setup

Step:1 Define Auto post Criteria Set

Navigation: Setup Journal Auto post
Name your auto post criteria set
Select Submit all priorities in order
Choose:
Ledger or ledger Set
Source
Category
Balance type
Period
Step: 2
submit or Schedule the Program Automatic Posting
Navigation: View Request

R12 GL Setup

37

Auto Reversal

If you routinely generate and post large numbers of journal

reversals as part of your month end closing and opening
procedures, you can save time and reduce entry errors by using
Automatic Journal Reversal to automatically generate and post your
journal reversals.

Prerequisites for Auto Reversal:

The journal balance type is Actual.
The journal category is enabled to be Auto reversed.
The journal is posted but not yet reversed.
The journal reversal period is open or future enterable.

Note: Automatic Journal Reversal reverses posted journals

of the balance type Actual. You cannot use this feature to
automate budget or encumbrance journal reversals.
R12 GL Setup

38

Auto Reversal = Steps

Step: 1 Define Reversal Criteria

Nav:
Setup Journal Auto reverse
Name your Auto Criteria Set
Choose Category
Choose Reversal Period
Reversal Date
Method
Enable Auto Reverse
Enable Auto post reversal

Step: 2 Enter Journal Journal Enter

Step: 3 Run Program Automatic Reversal

R12 GL Setup

View Request.

39

R12 GL Setup

40

Mass Allocation
Mass allocation means:
Allocation of Revenues and cost expenses across any cost center, department or
division by using of parent values by using simple formula.
Example: Rent paid based on square feet used.
Formula:

T = A x B/C

A = Cost pool Amount

B = Usage factor
C = Total Usage
T = Target Account
O = Off set account
Segment types in mass allocation:
1. Constant 2. Looping
3. Summing
Mass Allocation Methods:
1. Full type allocation 2. Incremental Allocation
R12 GL Setup

41

Mass Allocation = Steps

Step: 1 Create Usage factor account and Cost pool account
Nav: Setup Financials Flex fields key Values
Step: 2 Define Parent and child values for departments
Nav: Setup Financials Flex fields key Values
Step: 3 Create cost pool journal and post.
Nav: Journal Enter
Step: 4 Create and Post Statistical Journal
Nav:
Journal Enter
Step: 5 Define and Generate Mass allocation formula
Nav: Journals Define Allocation
Step: 6 Query mass allocation journal
Nav: Journals Enter

R12 GL Setup

42