M y Ex Ex p e rie n c e in se se t t in in g u p Fin a n c ia ls (G L, A P, A R a n d FA ) a lo n g w it h O U se t u p s
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Ex e c u t iv iv e O v e rv ie ie w .................................................... .................................................. 3 I n t r o d u c t i o n ................................................ ................................................ ........................................................ ............. 3 Sc o p e .................................................. ........................................................ ...................... 4 Error! Bookmark not defined. Fe e d b a c k ........................................................................ . .......................................................................Error! Busin usin e ss C a se s ..................................................... ....................................................... .... 4 En v ir iro n m e n t C re re a t io io n ................................................ .................................................. 5 G e n e ra l Le d g e r Ba sic Se t u p s...................................................... . ..................................................... ............................... 7 O rg a n iz iza t io io n Hie r a r c h y Se t u p ..................................................... ............................... 9 Pa ya b le s (AP) Ba Ba sic Se tup s ................................................ ....................................... 15 Fixe d A sse ts Ba sic Se tu p s .................................................... ....................................... 20 .................................................... A c c o u n t s Re c e i v a b le s ( A R) R) Ba Ba sic Se t u p s.................................................. . ................................................. ........... 24 R e f e r e n c e s.................................................. ........................................................ ........... 33
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Ex e c u t iv iv e O v e r v ie ie w
Thi This s do c ument ument dis disc c us uss ses a bout bo ut how I did the the co mplete mplete setups setups of Ora Ora c le Applications Financial modules (GL, AP, AR, FA) along with required O rg a niza niza tio tio n Hierarchy Hierarchy setups etup s.
Introduction
I did this this setup a s a n experienc experience e for mys myself elf and to develop d evelop a n understanding of the various modules and to get a global idea of what setups a re done d one a nd how ho w they inter intera a c t with with ea c h other. other.
As of now there there is no d oc ument whic whic h talks talks a bo ut the the setups setups at Fi Financ na nciia ls level. eve l. There a re b ea utiful utiful des de sc riptio iptio ns o f setup setups s, that tha t too a t leng length, th, in in individual user guides. But mostly I found myself lost in those long pages of user us er guides guid es.. Als A lso o my objec ob jecti tive ve wa s just just to unders und erstand tand the b a sic setups etup s (just (just to make it wor wo rking) ing) and a nd not no t advanc ad vanc ed setup. So So I prep prepa a red this this doc do c ument ument to to a c hieve hieve tha tha t objecti objec tive. ve.
I used used this this d o c ument at a t lea lea st few times times to to d o so me test setups etup s a nd found to be pretty handy to fix the issues in the setups.
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Sc o p e
Scope for this document is a very basic setup from scratch for Orac le Financ ials. The setup will be a working setup but certainly a very ba sic setup and not an advanced kind of a setup.
This do cument tries to understand the setups required a nd interaction of the various setups that we do at various modules level. This will prove to be useful to do the setups as well as troubleshoot at the very basic level.
Note that, what I show here is my understanding of financials setup, under no c ase I c an claim that this is ac curate and is the only po ssible wa y of setting up Oracle Applications. But this c ertainly shows my understanding.
Busine ss Ca se s
I have worked extensively in support a financial module and henc e I used to face the peculiar problem wherein the data is transferred across the sub-led gers. E.g. a ll sub-led gers transfer da ta to GL, AP transfers data to FA, FA in turn to G L. To troubleshoot something in one module need s data transfers and henc e interaction with other sub-led gers. Also to study changes in setups on one module, the effect of the same on other modules needs to be tested before app lying in Live instanc es.
So I had to use the AP, AR, and FA as well. Lot of times, we have test instances which have most of the setups already in place. But there are times when existing setups do not help a nd one is working on a completely different line o f thinking. This mea ns a completely new a nd different setup to b e done on your own to unde rstand what goes in setting up. Also to understand, implications of setups done in one module on other module. For the beginners there is no joy like joy of setting up complete O racle Ap plication a nd see it doing the b asic transactions. It is a rea lly good lea rning a s well for beginners.
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En v i ro n m e n t C re a t io n This would involve crea tion of Users, Responsibilities and assigning the responsibilities to users. 1] I created a new User for myself. Na viga tion = System Administrator Responsibility : Security > Users
2] Assign the following responsibilities to him System Administrator Inventory Super User • •
These responsibilities were required since the Orga nization hierarchy and related setups are done in Inventory Responsibility.
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3] Now I defined a new GL responsibility as well and assign this to my user. Na viga tion = System Administrator: Security >Responsibilities
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G e n e ra l Le d g e r Ba sic Se t u p s 4] Logged into the G L responsibility and c rea ted a chart of ac counts. Na vigation =General Ledger Super User Responsibility: Setup > Financials > Flex fields > Key > Segments
And then I defined a new Set of Book in the new responsibility. Navigation: General Ledger Super User > Setup > Financials > Books > Define
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5] I set the profile option GL: Set of Books for the new G L responsibility Navigation: System Administrator : Profile > System, query at the responsibility level.
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O rg a n i za tio n Hie ra rc h y Se t u p 6] Now I move to Organization setup. Navigation: Inventory Super User Responsibility: Setup> Organizations> Organizations My understanding of Organization hierarchy is roughly like this:
Employee
Business Group
Set of Books
Balance Entity
Asset book
Legal Entity
Asset Organization
Project Organization
Operating Unit
Inventory Organization
So I first define the Business Group. This business group (BG) is attac hed to the responsibility that I am using for doing organization setups (in this case the inventory responsibility). This is done using the profile option HR: Business Group.
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Once the BG is c rea ted and I attac hed the same to the responsibility, then go aga in to the orga nization form and then define the Lega l Entity (LE). Note that one single organization can work as lega l entity +operating unit + inventory org, this is the setup I am do ing here. Alternatively I c ould ha ve crea ted separate orga nizations as well. 7] I defined the following information there: Important Data are: Date from Orga nizations Classifications to be added – G RE / Legal Entity Orga nizations C lassifications to be a dded – O perating Unit Orga nizations Classifications to be add ed – Inventory Orga nization Enable all of these • • • • •
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8] I select GRE / Legal Entity and click on others, in the LOV that appears selec t “Legal Entity Ac counting” and C lick OK
9] In the Legal Entity Accounting, I entered Set of Books name. Save and click ok. (This will establish a link between Legal Entity and the set of books)
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10] After the Legal Entity, I came back to the main form. Now, Operating Unit setup. Selec t Operating Unit and C lick Others.
11] In the list of va lues I selec t Operating Unit Information and click ok Provide following information there: Legal Entity Set of boo ks So this c rea tes the link between O perating Unit (OU) and Legal Entity (LE) • •
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12] Back to the main form I now selec t Inventory Organization and C lic k Others. Select Accounting Information and click ok
13] I Enter the following information: Set of boo ks Legal Entity Operating Unit And clic k ok. This crea tes the link between IO and OU. • • •
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14] I again select Inventory Organization and click on Others in the main form. Selec t Inventory Information this time.
15] I defined the required information in the inventory organization form as follows:
Once the a bove things are d one the IO and O U definition is complete.
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Pa y a b les (A P) Ba sic Se tup s 16] Now, I go to System Administrator responsibility and crea te a n AP responsibility. Assign this new responsibility to my set of books.
17] I defined the two profile options for this new AP responsibility. GL: Set of Books Name MO: Operating Unit • •
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At this stag e the basic OU and SOB setup is rea dy. 18] Now I need to setup AP. So here we logon to AP responsibility. Na vigation: Setup> Set of Books> C hoose, here I assign the set of books to the responsibility and this crea te the link of O U and SOB to the responsibility.
19] Next Step go to Setup> Options> Financ ials. I will have to enter numerous cod e c ombinations in accounting tab, but main is the Supplier- Purchasing Tab where I will enter the Inventory Organization. This creates the link for IO to OU for the responsibility.
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20] Another important tab here is Encumbranc e tab: (not releva nt in this case but just shown for information)
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21] Next Step go to Setup> Options> Payables The important setups in this form are: Tab: Acc ounting Method > Primary Ac counting Method -> Ac crual / C ash. In this tab I will see that the SOB name is coming automatically based on what we entered in Books Assign form and the profile options in earlier steps.
Tab: Transfer to GL
Now the AP responsibility setup is also complete 22] Now, I need to open the p eriods in AP (assuming that the G L period is alrea dy opened. In GL naviga tion is Setup> Open / C lose). Naviga tion: Ac counting > C ontrol Payables Period s I noticed that Adjustments periods are missing here. J ust set the req uired period status to O pen. It will not trigger anything.
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Here AP setup is over and I can start entering invoices, tranferring data to GL and FA
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Fixe d A sse ts Ba sic Se tup s 23] I move a hea d to setup FA. I start with crea tion and assignment of new responsibility to our user:
24] Set the G L: Set of Books Na me profile option at the Responsibility Level
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25] Now I have to c rea te an FA Book, so I logo n to FA responsibility. Navigation: Setup > Asset System > Book C ontrols Here I can create my own FA Book. I will define the link between Asset Book and the G L Set of Book in this form.
26] Refer to Na tural Ac counts, I need to define numerous natural accounts over there.
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27] Now I move on to the J ournal C ategories tab to define numerous journal c ategories that will be used by FA when crea ting journals in GL.
Now my FA Book is ready as well. But before I start entering asset I need to do one last step. 28] Now g o to Setup > Asset System > Asset C ategories. N o t e f o r p e o p le w h o h a v e n e v e r w o rk e d o n FA b e f o re : .
This is a bit of trick form, so be wa tchful on this one if you have never worked on FA b efore. Query any major-minor ca tegory co mbination. Keep the c ursor where it is shown in the sc reenshot below a nd press the do wn key. You will find that the boo ks keep on changing for the same category combination. So here you define the link between category combination a nd the Asset Boo k. (J ust clic k on new button) If you want to add the category co mbination, then keep your cursor in the C ategory and c lic k on the new button.
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Once a ll the required category co mbinations are a ssigned to the Asset books, I am all set to enter the assets as well.
Steps for creation of Assets using AP (Mass Additions) 1] Enter Invoices in AP, ensure tha t the a cc ount that you enter in the invoice distribution, is the A sset C lea ring a ccount or in distributions window the flag ‘Trac k as Asset’ is ena bled (Note that this flag is hidden, so you need to ‘show’ the field) 2] In AP -> Run Req uest Set: Mass Additions Create 3] In AP -> Run Request: Payables Transfer to G eneral Ledger 4] In GL, Post transasc tions 5] In FA, go to M ass Additions> Prep are Mass Additions, enter the details for the a sset, mainly the c ategory, the a ssignment (employee, expense ac c ount and loca tion) 6] C hange the queue to PO ST from NEW 7] In FA, go to Mass Additions> Post Ma ss Additions (Note that this can be run only in the periods in which depreciation has not been run)
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A c c o u n t s Re c e iv a b le s ( A R) Ba sic Se t u p s 29] I crea te Rec eivab les Responsibility for my user
30] I assign the user to my responsibility
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31] I assign O perating Unit to the A R responsibility. MO : Operating Unit Profile Option
32] Ad d OM Menu in AR Menu to simplify the things. Navigation: System Administrator : Applica tion > Menu
Na vigate to OM > Setup> System Pa rameters > Va lues form in the AR responsibility
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33] If I had not defined the Inventory Organization classifica tion then the next step would not have worked for me. So far this step, it is important that Inventory Organization is setup. The screenshot of my IO definition are as follows:
34] Now in AR responsibility only go to Setup > System > System O ptions
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35] Saving the setup will trigger some requests, “Flexfield PL/SQL PreProcessor” 36] Once these req uests are finished . Please submit one more req uest from System Administrator responsibility
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37] After that, I go bac k to Rec eivable Responsibility. Open Transactions form. Now I will not see any error. Before replicating seed data if you open this Form it shows an error.
38] Before entering transactions ensure that the Periods are Open b oth in AR and G L. Go to C ontrol > Ac counting > Open / C lose Period s
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Now I will create C ustomer Navigation: Receivable Responsibility: C ustomers > Standard 39] For crea ting c ustomer I need to c rea te the c ustomer ad dress as well run-time
40] After that crea te remit-to addresses
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41] Create a Tax C od e Setup > Tax
42] Now enter transaction
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43] Now transfer to GL Interfac e > General Led ger > Submit single request.
44] That will trigger a lot of requests
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