1. -1- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Oracle E-Business Suite R12.1 General Ledger Overview Training Courseware

2. -2- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Safe Harbor Statement

3. -3- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Use of this Site (“Site”) or Materials constitutes agreement with the following terms and conditions: 1. Oracle Corporation (“Oracle”) is pleased to allow its business partner (“Partner”) to download and copy the information, documents, and the online training courses (collectively, “Materials") found on this Site. The use of the Materials is restricted to the non-commercial, internal training of the Partner’s employees only. The Materials may not be used for training, promotion, or sales to customers or other partners or third parties. 2. All the Materials are trademarks of Oracle and are proprietary information of Oracle. Partner or other third party at no time has any right to resell, redistribute or create derivative works from the Materials. 3. Oracle disclaims any warranties or representations as to the accuracy or completeness of any Materials. Materials are provided "as is" without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, and non- infringement. 4. Under no circumstances shall Oracle or the Oracle Authorized Delivery Partner be liable for any loss, damage, liability or expense incurred or suffered which is claimed to have resulted from use of this Site of Materials. As a condition of use of the Materials, Partner agrees to indemnify Oracle from and against any and all actions, claims, losses, damages, liabilities and expenses (including reasonable attorneys' fees) arising out of Partner’s use of the Materials. 5. Reference materials including but not limited to those identified in the Boot Camp manifest can not be redistributed in any format without Oracle written consent. Oracle Training Materials – Usage Agreement

4. -4- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Key Content Contributors Contributing Companies

5. -5- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential R12.1: Oracle Financials

6. Module: Oracle General Ledger

7. -7- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Oracle General Ledger Process Accounting Setup Manager Ledger Basic Journal Entries Accounting Setups Summary Accounts Advanced Journal Entries Advanced Security Financial Budgeting Multi-Currency Consolidations Period Close Financial Reporting Bootcamp Objectives

8. -8- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Create Recurring Journals Formulate Mass Allocation Journals AutoAllocations and related implementation considerations AutoScheduling Describe the Journal Scheduling process Key issues and considerations when implementing Advanced Journal Entry Business benefits of using Oracle General Ledger's Advanced Journal Entry functions

9. -9- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Recurring Journal Entries Define recurring journals for transactions that repeat every accounting period, such as accruals, depreciation charges, and allocations. Recurring journals can be used to create three types of journal entries: –Skeleton journal entries: Affect the same accounts each period, but have different posting amounts. –Standard journal entries: Use the same accounts and amounts each period. –Formula journal entries: Use formulas to calculate journal amounts that vary from period to period.

10. -10- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Creating Recurring Journal 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

11. -11- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Recurring Journal Entry Lines An unlimited number of journal entry lines can be created for each recurring journal entry. The journal entry lines specify the accounts to update with the recurring journals. Each line contains the amount to post to the designated account, or a formula to calculate the journal amounts. An automatic offsetting line can be used for a recurring journal entry by entering the line number 9999

12. -12- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Automatic Offset Example LineAccountDebitCredit 1 2 3 9999 Consulting Revenue Training Revenue Sales Revenue Services Revenue (Offset Line) 2,000 6,000 4,000 (System calculated)

13. -13- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Formula Recurring Journals Create a formula for each journal line. Each formula can contain an unlimited number of steps. The steps can use any combination of amounts, account balances, and/or operators. The operators that can be used are: –Enter –Add –Subtract –Multiply –Divide If the formula yields a positive amount, your account will be debited. If your formula yields a negative amount, your account will be credited.

14. -14- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Generating Recurring Journals Generate recurring journals to create un-posted journal entries from the recurring journal definitions. After generating the formulas, review or edit the recurring journal batches before posting them. After generating the skeleton journal entries, complete the journal information before posting them. Generate recurring journal batch according to schedules defined in General Ledger.

15. -15- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Recurring Journals

16. -16- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Create Recurring Journals Formulate Mass Allocation Journals AutoAllocations and related implementation considerations AutoScheduling Describe the Journal Scheduling process Key issues and considerations when implementing Advanced Journal Entry Business benefits of using Oracle General Ledger's Advanced Journal Entry functions

17. -17- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential MassAllocations Journal Entries MassAllocation formula is used to create journals that allocate revenues and expenses across a group of cost centers, departments, or divisions. MassAllocations can be created in the functional currency, a foreign currency or statistical currency. Total Rent Proportional Allocation based on Formula 1/3 London Rent Paris Rent Chicago Rent

18. -18- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential MassAllocations V/S Recurring Journals Type of Entry MassAllocations Recurring Journals Formula Entries Yes Standard Entries Yes Skeleton Entries 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

19. -19- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Create MassAllocations Journals This is a 5–Step process: –Create MassAllocation definition –Validate definition –Generate MassAllocation Journals –Review entries –Post entires

20. -20- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Creating MassAllocation Definition 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 1/3 Department 1 Department 2 Department 3

21. -21- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Defining MassAllocation Formula 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. Following account segment type can be associated with each formula line: –Looping –Summing –Constant Cost Pool * (Usage Factor/Total Usage) A * B/C

22. -22- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Target and Offset Accounts These are the lines that are the actual journal entry: –Target: Enter an account in the Target line to specify the destination for the allocations. –Offset: Enter an account in the Offset line to specify the account to use for the offsetting debit or credit from your allocation.

23. -23- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential MassAllocation Journal Example Allocate Total Rent 20 % of total Floor Space 30 % of total floor space 50 % of total floor space Human Resource Department Finance Department Research Department Dr. Human Resources2,000 functional dollars Dr. Finance rent 3,000 functional dollars Dr. Research rent 5,000 functional dollars Cr. Total Rent Expense 10,000 functional dollars

24. -24- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential 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

25. -25- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Generating Mass Allocation Journal Generate MassAllocations to create unposted journal batches based on the 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.

26. -26- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Mass Allocation Journal

27. -27- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Create Recurring Journals Formulate Mass Allocation Journals AutoAllocations and related implementation considerations AutoScheduling Describe the Journal Scheduling process Key issues and considerations when implementing Advanced Journal Entry Business benefits of using Oracle General Ledger's Advanced Journal Entry functions

28. -28- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Auto Allocations

29. -29- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Auto Allocations

30. -30- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Auto Allocations

31. -31- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

32. -32- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Create Recurring Journals Formulate Mass Allocation Journals AutoAllocations and related implementation considerations AutoScheduling Describe the Journal Scheduling process Key issues and considerations when implementing Advanced Journal Entry Business benefits of using Oracle General Ledger's Advanced Journal Entry functions

33. -33- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

34. -34- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential AutoScheduling Overview Automatic Journal Scheduling enables generation of Recurring Journals, AutoAllocation sets, Mass-Allocations, MassBudgets and Budget Formulas according to a schedule you define 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

35. -35- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

36. -36- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Create Recurring Journals Formulate Mass Allocation Journals AutoAllocations and related implementation considerations AutoScheduling Describe the Journal Scheduling process Key issues and considerations when implementing Advanced Journal Entry Business benefits of using Oracle General Ledger's Advanced Journal Entry functions

37. -37- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Key issues and considerations when implementing Advanced Journal Entry

38. -38- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Create Recurring Journals Formulate Mass Allocation Journals AutoAllocations and related implementation considerations AutoScheduling Describe the Journal Scheduling process Key issues and considerations when implementing Advanced Journal Entry Business benefits of using Oracle General Ledger's Advanced Journal Entry functions

39. -39- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Business Benefits of using Advanced Journal Entry functions