This Document Contains Confidential Company Information. Do Not Disclose It To Third Parties Without Permission From The Company

Copyright 2012 NTT DATA This document contains confidential Company information.
on. Do not disclose it to third parties without permission from the Company.
GENERAL LEDGER OVERVIEW
The Oracle General Ledger is the central repository of accounting information.
The main purpose of a general ledger system is to record financial activity of a company and to produce financial and
management reports to help people inside and outside the organization make decisions.
General Ledger Overview : Oracle General Ledger is a comprehensive financial management solution that enables
you to:
Record and Review Accounting Information
Import data from subsidiary ledgers, or enter journals to record actual or budget transactions directly into Oracle
General Ledger.
Review account balances online or through reports.
Manipulate Accounting Information
Correct actual, budget, and encumbrance information.
Revalue and translate balances denominated in foreign currencies.
Consolidate balances from multiple sets of books.
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GENERAL LEDGER ACCOUNTING CYCLE
Open period
Create/reverse journal entries
post
Review
Revalue
Translate
Consolidate
correct balances
Run accounting reports

Close accounting period

CHART OF ACCOUNTS
VALUE SET
VALUES
FLEXFEILD
KEY QUALIFIER
FLEXFEILD
SEGMENTS

HIERARCHY WITH EG

TRANSLATION
Translation is the process of translating account balances from your functional currency to another
currency. This process translates balances only, it does not translate individual transactions.
You can translate your actual and budget account balances from your functional currency to another
currency.
For Example If you want to report financial results in Euro you can use General Ledger's translation
feature to translate your account balances from your functional currency to Euro.
This feature can translate both actual and budget balances. If the system have enabled average balance
processing then the system can translate average balances as well.
Translation is frequently used to prepare financial reports for consolidation into global financial
statements.

HOW DOES THE SYSTEM RUN TRANSLATE
BALANCES
Assets and liabilities are translated by multiplying the YTD balance by the Period End Rate.
YTD (translated currency) = Rate X YTD (functional currency)
Where as, revenue and Expense balances are translated using the PTD balance for each period and the
corresponding Period Average rate for each period
Therefore, translation must be performed for the first period of the fiscal year forward to the period for which
translation is required.
Rates must also exist in the Period Rates table back to the first period of the fiscal year in which the translation is
being performed.
PTD (translated currency) = Rate X PTD (functional currency)

CONSOLIDATION
Consolidation is required to combine or consolidate Accounting and Financial results of multiple companies from
multiple Ledgers, Currencies, Calendars & Accounting flex field structures.
Consolidation is a period-end process of combining the financial results of separate subsidiaries with the parent
organization to form a single, combined statement of financial results. Consolidation is a year end process when
companies prepare their balance sheets
TYPES OF CONSOLIDATION
Reporting Only Consolidations- used when subsidiaries and the corporate ledger share the same chart of
accounts and calendar.
Balance Transfer Consolidations: This type of Consolidation is used when subsidiaries and the corporate
ledger have either or both different charts of accounts and different calendars.
Financial Management Consolidations: If there are complex factors in financial consolidation requirements

DIAGRAMATIC OVERVIEW OF CONSOLIDATION
Subsidiary sharing Multiple Subsidiary Complex Financial

same chart of sharing same chart of consolidation and
account account reporting
Reporting only Balance transfer Financial

consolidation consolidation Management
Consolidations

REVALUATION
Revaluation is the process of revaluing balances that have transactions denominated in foreign currency.
Revaluation reflects the change in conversion rates between the date of the transaction and the current market rate
of each currency.
When you run revaluation, a journal entry is created that either increases or decreases the functional currency
amount for that account, based on the fluctuation of the exchange rate.
The resulting gain or loss amounts are posted to Gain/Loss or Cumulative Translation Adjustment account you
specify.
This process creates a revaluation batch containing separate journal entries for each revalued foreign currency
The revaluation adjustment is created in your functional currency, this is where the fluctuation is. The foreign
currency of the transaction will stay the same, it is the functional currency balance that is adjusted.


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Copyright 2012 NTT DATA This document contains confidential Company information.

The Oracle General Ledger is the central repository of accounting information.

Record and Review Accounting Information

Review account balances online or through reports.

Manipulate Accounting Information

Correct actual, budget, and encumbrance information.

Revalue and translate balances denominated in foreign currencies.

Consolidate balances from multiple sets of books.

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Run accounting reports

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YTD (translated currency) = Rate X YTD (functional currency)

PTD (translated currency) = Rate X PTD (functional currency)

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Subsidiary sharing Multiple Subsidiary Complex Financial

Reporting only Balance transfer Financial

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