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 Multi-Currency concepts Use Currency Rate Manager Perform Foreign currency journals Entry Perform Revaluation of foreign currency balances Translate functional balances into foreign currency Overview of Secondary Tracking Segment Use Foreign Currency Reports

9. -9- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential What is Multi–Currency? Capability to handle transactions in any number of currencies. Helps to develop and maintain productive relationships with international customers and vendors.

10. -10- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Multi Currency Concepts Three key Multi currency concepts: Conversion: –Conversion refers to foreign currency transactions that are immediately converted at the time of entry to the functional currency of the ledger in which the transaction takes place. Revaluation: –Revaluation adjusts asset or liability accounts that may be materially understated or overstated at the end of a period due to a significant fluctuation in the exchange rate between the time the transaction was entered and the end of the period. Translation: –Translation restates an entire ledger or balances for a company from the functional currency to a foreign currency.

11. -11- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Setup: Defining Foreign Currencies Enable multiple currencies as the first step to use the multi-currency features.

12. -12- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Setup: Conversion Rate Types Conversion rate is used to convert foreign currency journal amounts to functional currency equivalents. Conversion rate types: –Spot –Corporate –User –EMU Fixed –User Defined

13. -13- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Multi-Currency concepts Use Currency Rate Manager Perform Foreign currency journals Entry Perform Revaluation of foreign currency balances Translate functional balances into foreign currency Overview of Secondary Tracking Segment Use Foreign Currency Reports

14. -14- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Setup: Rates Rates are shared across ledgers Subledgers share the same General Ledger rate definition Loading rates automatically Maintain daily and historical rates

15. -15- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Setup: Rates Manager A new user-friendly tool to manage daily and historical rates Cross Rate rules can be applied to maintain consistency

16. -16- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Multi-Currency concepts Use Currency Rate Manager Perform Foreign currency journals Entry Perform Revaluation of foreign currency balances Translate functional balances into foreign currency Overview of Secondary Tracking Segment Use Foreign Currency Reports

17. -17- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Foreign Currency Journals from Subledger Many foreign-denominated transactions are originally entered and then settled in subledgers such as Payables and Receivables. Foreign currency obligation is entered in Oracle Payables Payables journal entry is recorded in General Ledger Foreign currency is revalued and the unrealized gain or lost is recorded Payables journal entry is recorded in General Ledger Realized foreign currency gain or loss is calculated Foreign currency obligation is paid in Oracle Payables

18. -18- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Concepts: Conversion Based on the foreign currency, conversion rate type and conversion rate, General Ledger converts foreign currency journal amounts to functional currency equivalents. Functional currency DR. Rent…………………..………………….2,500 Euro CR. Cash…..…………………………………………2,500 Euro CONVERT 1 Euro =.9 US Dollars DR. Rent…………………..………………….… 2,250 US$ CR. Cash…..……………………………………….….. 2,250 US$ Foreign currency

19. -19- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Multi-Currency concepts Use Currency Rate Manager Perform Foreign currency journals Entry Perform Revaluation of foreign currency balances Translate functional balances into foreign currency Overview of Secondary Tracking Segment Use Foreign Currency Reports

20. -20- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Concepts: Revaluation Revalue account balances to reflect the change in the exchange rate between the transaction entry date and the reporting date. Upon revaluation, the change will be applicable only on the functional currency. Functional currency Conversion at the time of the foreign currency transaction Revaluation at the end of the accounting period Foreign currencies

21. -21- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Concepts: Revaluation Example REVALUE 1 Euro =.81 US Dollars CR. Unrealized Gain…………………………………….. 100 US$ Entered Journal Entry Lines DR. Rent…………………………………….10,000 Euro CR. Cash….…………………………………………10,000 Euro Convert 1 Euro =.8 US Dollars DR. Rent…………………………………….… 8,000 US$ CR. Cash….……………………………………….….. 8,000 US$ DR. Rent…………………...………………….… 100 US$

22. -22- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Multi-Currency concepts Use Currency Rate Manager Perform Foreign currency journals Entry Perform Revaluation of foreign currency balances Translate functional balances into foreign currency Overview of Secondary Tracking Segment Use Foreign Currency Reports

23. -23- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Concepts: Translation Foreign currency translation is a process that lets you restate your functional currency account balances into a reporting currency. Foreign currency Functional Balance Sheet AssetsLiabilities Foreign Balance Sheet AssetsLiabilities 100,00060,000 Period end Rate = 0.75 Historical Rate = 0.70 75,00045,000 Owner's Equity 40,000 28,000 Period end Rate = 0.75 Functional currency

24. -24- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Concepts: Translation General Ledger selects translation rates based on the GL Account Type and Translation Rate Type: GL Account TypeTranslation Rate Type Monetary Assets, Liabilities Period-End Non-Monetary Assets, Liabilities Historical Revenue, ExpensePeriod-Average Equity Historical

25. -25- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Translation: Balances & Rates Used Account Type Assets Liabilities Revenue Expense Equity Balance and Rate Used in Translation Cumulative balance and period-end rate Periodic balances and period average rates Cumulative balance and period-end rate Cumulative balance and period-end rate unless historical rates are defined for these accounts

26. -26- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Multi-Currency concepts Use Currency Rate Manager Perform Foreign currency journals Entry Perform Revaluation of foreign currency balances Translate functional balances into foreign currency Overview of Secondary Tracking Segment Use Foreign Currency Reports

27. -27- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

28. -28- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Section Objectives Multi-Currency concepts Use Currency Rate Manager Perform Foreign currency journals Entry Perform Revaluation of foreign currency balances Translate functional balances into foreign currency Overview of Secondary Tracking Segment Use Foreign Currency Reports

29. -29- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Foreign Currency Reports Daily Conversion Rates Listing Historical Rates Listing Period Rates Listing Foreign Currency General Ledger Report Foreign Currency Journals Report Foreign Currency Detail Trial Balance Report Foreign Currency Summary 1 Trial Balance Translation Trial Balance Foreign Account Analysis Report Foreign Account Analysis Report with Payables Detail

30. -30- For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential Multi–Currency Profile Options GL: Income Statement Accounts Revaluation Rule GL: Revaluation: Autoquery Last Run Ranges GL: Owners Equity Translation Rule Journals: Allow Multiple Exchange Rates Journals: Display Inverse Rate