Introduction to Oracle General Ledger

The Oracle General Ledger module within Oracle Financials is an integrated part of the ERP package Oracle applications. It is a financial management solution within E-business suite for entering journals, planning and budgeting, financial reporting etc of large companies.  Oracle claims that it's GL module can import and post 42 million journal lines per hour, which would make it a suitable GL application for very large enterprises whose volume of GL transactions are very high.

Ledger:  A general ledger is the master set of accounts that summarize all transactions occurring within an entity. The general ledger contains a debit and credit entry for every transaction recorded within it, so that the total of all debit balances in the general ledger should always match the total of all credit balances.

Ledger prerequisites:

Currency;

Calendar

Chart of Accounts

Accounting Method (or ) Accounting convention

 Currencies:

There are two type of currencies

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1 Monitor currency

2 Non Monitor currency

1 Monitor currency :

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a) Functional Currency : It is a local country currency.

       Ex: INR in India, USD in America

B) Foreign Currency : Other than local currency is called a foreign currency.

2 Non monitory Currency :

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It is nothing but a STAT currency which is used in the calculations.

Ex: Ratio, Feet, cm, meter, etc….

Calendar:

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Create a calendar to define an accounting year and the periods it contains. You should set up one year at a time, specifying the types of accounting periods to include in each year. Defining one year at a time helps you be more accurate and reduces the amount of period maintenance you must do at the start of each accounting period. You should define your calendar at least one year before your current fiscal year.

You can define multiple calendars and assign a different calendar to each set of books. For example, you can use a monthly calendar for one set of books, and a quarterly calendar for another.

Prerequisite

   Carefully consider the type of calendar you need for your organization, since it can be difficult to change your calendar (e.g., from a fiscal year to a calendar year) once you've used it to enter accounting data. Changing your calendar may require assistance from an Oracle consultant.

   Define your accounting period types

There are two type of calendars

1) Accounting calendar:

    A) Fiscal calendar-Starts in One year and ending with another year.

    B) Calendar Year -Starts and ends with same year

Once you save the Accounting Calendar it will ask for calendar validation as shown above.

2) Transaction calendar:is used for average balancing . When you define the transaction calendar, you choose which days of the week will be business days and you can also specify other non-business days, such as holidays, by maintaining the transaction calendar.

There are 6 standard period types

     1.  Daily

     2.  Weekly

     3.  Monthly

     4.  Quarterly

     5.  Half-Yearly

     6.  Yearly

    

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