General Ledger

Oracle General Ledger Overview

Oracle General Ledger (GL) is the core or central repository for accounting information in any organization. Primarily used for accounting and financial reporting. 

General Ledger Module is used to Record, Analyze and To Report (RTR) financial information.

All the accounting related information from other modules such as below are fed to GL.

• Order Management (OM)
• Purchasing (PO)
• Account Receivables (AR)
• Inventory (INV)
• Oracle Projects (PA)
• CRM etc

Accounting Cycle in General Ledger

• Open the Period
• Receive the Data (Sub-Ledger Modules like AR, PO etc)
• Create Journal Entries
• Review/Edit Journal
• Approve Journals
• Post Journals
• Revalue Journals
• Consolidate Journals
• Reconcile Journals
• Run Financial Reports
• Close Period

Data Flow in General Ledger

Accounting Related Data  ------> Oracle SLA ----> GL Interface --->  

(OM,PO,AP,AR)

Journal Import ---> Create/Review Journal Entries ---> Approve Journal --> Post Journal ---> Review GL Balances---> Run Reports

General Ledger Concepts

• Accounting & Adjustment Periods
• Chart of Accounts
• Calendar
• Currency
• Journals (Create/Import)
• Posting Journals & GL Balances
• Review Journals
• Approve Journals
• Accurals & Reversals
• Allocations
• Intercompany
• Consolidation
• Trial Balance

Reporting

• General Ledger provides the following categories of standard reports and listings:
  
  
  • Account Analysis: These reports list the accumulated balances of a range of accounts and all journal entry lines that affect that range.
  • Budget: These reports and listings contain information about your budgets and budget organizations, including account assignments and budget hierarchies.
  • Chart of Accounts: These reports and listings provide information about the accounts in your chart of accounts, including segment values, rollup ranges and suspense accounts.
  • Multi-Company Accounting and Consolidation: These reports and listings provide information about your multi-company accounting and consolidation activities. You can request reports about intercompany transactions made using General Ledger's CENTRA feature.
  You can also request reports about a specific consolidation, including how your subsidiaries' accounts are mapped into your parent accounts. You must use the audit mode run option in order to request the Consolidation Audit Report and the Consolidation Exception Reports, and you can only request the Consolidation Journals Report for consolidations using the Transactions method.
  • Currency: These listings show the daily, period and historical rates you defined for foreign currencies.
  • Financial Statement Generator: These listings provide summary or detail information about the definitions of your Financial Statement Generator report components, reports and report sets.
  • General Ledger: These reports list beginning and ending account balances, and all journal entry lines affecting each account balance in your functional and foreign currencies.
  • Journals: These reports provide journal information in functional and foreign currencies, including posted, unposted and error journals. You can also review journal activity for particular periods and balancing segments.
  • Trial Balance: These reports list account balances and activity for functional and foreign currencies, budgets, encumbrances and actuals. You can request this information by currency, accounts, and so on.
  • Other: These reports and listings provide information about MassAllocation/MassBudget definitions, actual or budget recurring journal formulas, statistical units of measure and value-added taxes received and paid.

Oracle Tables involved (Generally) in General Ledger

• GL_JE_BATCHES
• GL_JE_HEADERS
• GL_JE_LINES
• GL_CODE_COMBINATIONS
• GL_IMPORT_REFERENCES
• GL_BALANCES
• GL_PERIODS
• GL_SET_OF_BOOKS
• GL_DAILY_RATES (Stores the daily conversion rates for foreign currency transactions)

Debit vs Credit

In general below types of accounts will be increased with Debit

• Dividends
• Expenses
• Assets
• Losses

In general below types of accounts will be increased with Credit

• Gains
• Income
• Revenue
• Liability
• Equity (Owner's/Stockholders)

Cash Received - Debit Cash Account

Cash Paid        - Credit Cash Account