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Cross Instance Data Transfer

Posted on March 31st, 2008 by Sanjit Anand ||Email This Post Email This Post

Do you know, there is on feature called “Cross Instance Data Transfer” in GL which enables you to transfer subsidiary data to your remote parent instance over your corporate intranet. How it sounds..

Normally big enterprises manage their business operations in different database instances which need an automated way to transfer data from remote subsidiary database instances to a central consolidation database instance.Therefore this feature can be utilized for transferring Instance data.

Lets understand what you can do with this:

  • You can do automatic transfer of consolidation data from one instance to another using db links
  • This will import and post consolidation journals in one step process.

Therefore, the Global Consolidation System(GCS) facilitates the consolidation of data from remote subsidiary ledger database instances to a central consolidation database instance. Using db links, Global Consolidation System allows you to automatically transfer consolidation data from one instance to another, as well as optionally import and post the data automatically in the consolidation database instance.

  • You can also use the feature of notifying users of the transfer status using Workflow Notifications.

This feature automates the entire process and also includes workflow notifications providing notification of the cross instance consolidation status. Global companies with operations on multiple database instances can use this feature to consolidate their subsidiaries in a more efficient and automated manner.

the next question in mind is what about security of this feature?

  • You create a specific user name for the central consolidation database instance with limited access to specific objects in the database
  • Subsidiaries use this user name to define database links for cross instance data transfers

Therefore using this security, there is no need to re-enter your username and password every time you transfer consolidation data, saving time and redundancy. And, the username/password is now validated at the time you sign on to the EBS.

Reference Notes

  • 186235.1 :About Oracle General Ledger Mini-pack 11i.GL.G
  • Chapter 7, Global Consolidation System, Oracle General Ledger User Guide

Posted in Oracle General Ledger | No Comments »

What CFO and we need to Know about XBRL ?

Posted on March 28th, 2008 by Sanjit Anand ||Email This Post Email This Post

While researching more on XBRL, I came across a nice site had extended list of question about XBRL, thought to bring this to everyone in Oracle Community.

  1. Why should I care about XBRL?
  2. What is XBRL?
  3. Why should I learn about XBRL?
  4. What is different about my financial reports now and using XBRL?
  5. Why is the SEC involved with XBRL?
  6. Is the SEC going to require my financial statements (and other filings) in XBRL format?
  7. If so, when do you anticipate the SEC mandating XBRL?
  8. Who is using XBRL today?
  9. Why are they using this technology?
  10. What is a taxonomy?
  11. Are taxonomies country specific? Industry specific? Company specific?
  12. Does my company need to develop its own taxonomy? If so, is this proprietary information?
  13. What skills are required to create an XBRL filing?
  14. It seems like the costs and burden of using XBRL are on the shoulders of financial report preparers, while all the benefits go to regulators and investors, which seems unfair. Is this the case?
  15. What will it cost me to implement XBRL?
  16. Does XBRL work? How do you know?
  17. It seems like XBRL will be just another boon for consultants whom we have to hire to help us get the financial information into XBRL. Is that the case?
  18. Is XBRL the only thing I will have to file, or will I continue to submit the current EDGAR type filings?
  19. Clearly, XBRL is new and certain things will likely need to change with regard to financial reporting. What will need to change relating to financial reporting?
  20. Are private companies going to have to use XBRL?
  21. How will XBRL be audited?
  22. What are the risks of moving to required filings to the SEC in XBRL and how are those risks being mitigated?
  23. What are the benefits of adopting XBRL before the SEC requires it? What are the reasons not to adopt XBRL before the SEC requires it?
  24. Is the public accounting profession ready for XBRL if it is mandated?
  25. The adoption of XBRL will be a move from a “paper-based” reporting scheme, which is unstructured for the most part, to an “XBRL-based” reporting scheme, which uses structured information. That has got to cause some sort of impact on financial reporting, it seems. What will the impact be?
  26. What impact will XBRL have on BI (Business Intelligence)?
  27. How do I get started? How do I try XBRL?

Charlie co-author of the site , nicely answered these 27 questions in his 17 page documents.

Read this

Posted in XBRL | 1 Comment »

XBRL Reporting & Singapore

Posted on March 28th, 2008 by Sanjit Anand ||Email This Post Email This Post

If you are planning to rely on system Data for XBRL reporting…I would say ..test..test …test….if you are planning to do it first time..

Early next month Finance Controller and Auditors will be quite busy in arranging XBRL reporting ,specially if they are from Singapore based registrated company.

Here is link for details for “Preparing and Filing of Financial Statements (XBRL) for ACRA ” the local Govt body.

Oracle E Business and Taxomony

The good is that ACRA have already made a Oracle qualified vendor for XBRL reporting, though there are very few reports which is compatible with ACRA taxonomy as reported.


Here are list of the some of Features that makes part of compatibility of ACRA.


Source :

arrow upSuggested Reading

Posted in XBRL | No Comments »

Protected: White Papers

Posted on March 28th, 2008 by Sanjit Anand ||Email This Post Email This Post

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Dealing with Foreign Currency

Posted on March 27th, 2008 by Sanjit Anand ||Email This Post Email This Post

Read this

In some of the Oracle installation site, dealing with foreign currency is one of key area in the Business process, essentially required to have a full understanding about the product and there seeded functionality product offers. Apart from above three core process foreign Currency reports is equally important. Therefore this post just recap of seven report from GL.You can see more details in GL documentation.

  • Foreign Currency General Ledger Report

This report is for each journal line entered in a foreign currency, the report prints the account affected, the description of the account segment value, the journal line amount in both your functional and foreign currency, and the beginning and ending account balances in both your functional and foreign currency. Very helpful..

  • Foreign Currency Journals Report

This report review journal batches and associated journals for your posted, unposted or error journals entered in a foreign currency.

You can run this report with line or source item reference information to help identify the origin of journals created by Journal Import.

  • Foreign Currency Detail Trial Balance Report

This report review actual General Ledger account balances and activity entered in a foreign currency.

  • Foreign Currency Summary 1 Trial Balance

This report is used to review summarized GL balances and activity entered in a foreign currency. This also summarizes balances and activity by account segment value.

  • Translation Trial Balance

This used to review your account balances and period activity after running translation.

  • Foreign Account Analysis Report

This report is used to review source, category and reference information to trace your foreign currency transactions back to their original source.

You can run this report with entry, line or source item reference information to help identify the origin of journals created by Journal Import.

  • Foreign Account Analysis Report with Payables Detail

This is used to review foreign currency balances and transactions for any accounts.

You can use this report to reconcile asset additions imported into General Ledger from Oracle Payables.

You can run this report, you must have Oracle Payables installed on your system and you must allow detail posting of invoices from Oracle Payables to General Ledger.

Reference Notes

Posted in Oracle General Ledger | 1 Comment »

Use of Secondary Tracking Segment

Posted on March 25th, 2008 by Sanjit Anand ||Email This Post Email This Post

Did you know in 11i with Family Pack E, a new flexfield qualifier has been added to enable you to nominate a segment in your chart of accounts to act as your secondary tracking segment.

This segment will be paired with the balancing segment when generating account balances for the Retained Earnings account, Unrealized Gains or Losses accounts, and the Cumulative Translation Adjustment account.

Oracle define this feature as:
A segment in the chart of accounts can be designated as a secondary tracking segment, in addition to the balancing segment, to perform more detailed analysis within Oracle General Ledger. The secondary tracking segment is used in the revaluation, translation, and fiscal year-end close processes. The system will automatically maintain unrealized gain/loss, retained earnings, and cumulative translation adjustments by unique pairs of balancing segment and secondary tracking segment values.”

Therefore, you can use any segment, except the balancing segment or natural account segment, can be specified as the secondary tracking segment.

secondary Segement

If you specified to use a Secondary Tracking Segment for Revaluation, the Unrealized Gains/Losses account will be tracked by the balancing segment and secondary tracking segment.

If you specified to use a Secondary Tracking Segment for Closing and Translation, the Retained Earnings account and the Cumulative Translation Adjustment (CTA) accounts will be tracked by both the balancing segment and secondary tracking segment.

This allows you to maintain accounting data at a finer level of detail for these accounts.

You should also note, Year-End Close refers to the standard process of closing out the year-to-date balances for your revenue and expense accounts to retained earnings when you open the first period of a new year. This does not apply to the Year-End Closing Journals feature. However, as per documentation you can achieve the same result using Income Statement Closing Journals by specifying different retained earnings accounts for a range of revenue and expense accounts.

You don’t get confused with secondary tracking segment is not a second balancing segment for journal entry. The control is still for only one balancing segment. The posting is effected only in the measure of the Retained Earnings Account effect (these accounts will also track for the secondary segment instead of just the balancing segment).

Usage with Secondary Segment

Lets try to understand with two example

Case 1:

If Secondary tracking segment/qualifier is to breakdown the retained earnings balance (brought forward) at the beginning of the new financial year. Here is an example how the system will breakdown the retained earnings.

If you enable Secondary tracking for the state segment:-
01.NY.3000.000 $60,000
01.CA.3000.000 $40,000

Without Secondary Tracking
01.00.3000.000 $100,000

Case 2:

Enabling Secondary and Translation Check box. The Retained Earnings Account and CTA Account will be tracked by the Pair of Balancing as well as Secondary Tracking Segment.

Suppose the following are the Entries made during the year:

Account USD Balance Cumulative Rate Translated INR
01.100.Revenue 1000 50 50,000 CR
01.100.Expense 500 50 25,000 DR
01.200.Revenue 2000 45 90,000 CR
01.200.Expense 750 50 35,000 DR

At the Year End Closing and Translation, the following pair of Accounts are created :

Account USD Balance Calculated Rate Translated INR
01.100.Retained Earnings 500 60 30,000 CR
01.200. Retained Earnings 1250 50 62,500 CR

Secondary Tracking Segment Benefits

  • Secondary tracking segments provide better audit and analysis capabilities.

You now have more visibility into the detailed components of Retained Earnings, Cumulative Translation Adjustment, and Unrealized Gains and Losses. Instead of tracking these accounts by a balancing segment alone, you can track them by the balancing segment and another segment of your choice, such as Department, Line of Business, or Cost Center.

  • A secondary tracking segment also provides better control and consistency of similar transactions because this option is set at the ledger level instead of through a profile option.
  • By being able to nominate any segment other than your primary balancing segment or natural account segment to act as your secondary tracking segment, you have greater flexibility in tracking accounts by pairs of segments.

How to Set Up Secondary Tracking Segment

Very simple, what you have to do it you need to navigate to:

(N) Setup > Financials > Flexfields > Key > Segments (B) Segments

Now you can choose any segment, other than your balancing segment or natural account segment, to be your secondary tracking segment.

You can set the Secondary Tracking Segment flexfield qualifier for new or existing charts of accounts at any time.

If you are currently using the Revaluation by Cost Center feature and wish to retain it, you do not have to do anything, this is very important.

(N) Setup > Financials > Flexfields > Books > Define

There is a new Secondary Segment Tracking region in the ledger form. Enable the Closing and Translation option to maintain account balances generated from the Closing and Translation process. Enable the Revaluation option to track account balances generated from the Revaluation process at a finer level of detail.

Both of these options are optional and can be turned on together or separately.

Oracle recommended that the Closing/Translation option be enabled when the ledger is first defined. This option cannot be disabled in the future.
The Revaluation option can be turned on and off at any time, but for consistency in processing, the setting should remain consistent throughout the life of your ledger.

There is separate process, who want to enable this feature in there existing setup, you can Follow Note 261961.1 for Enabling this feature for an Existing SOB, which requires some pre-requisite steps.

Some of query that end user or Finance Core user might interested

(1) Is the Secondary tracking segment qualifier mandatory

No, it is not mandatory.

(2) What is the benefit for using it during my closing process?

Very same as Better Audit and Analysis,Better Control and Consistency, Greater Flexibility are main key benefits as discussed above.

(3)Enabling a segment for secondary tracking does mean that you will get a tallied trial balance?

Enabling a segment for secondary tracking does NOT mean that you will get a tallied trial balance. What it means is that for some of the transactions you will get additional details.

(4) Which Version of Oracle Can use this functionality?

  • 11.5.5-11.5.9+ Patch 2930577
  • 11.5.10/
  • R12

(5)Two Balancing Segments at a time…

The scenario is FICO would like to have balance sheet/trial balance balanced by entity (company) and division (responsibility center).Is there any way that we can have two segments in COA enabled as balancing segment?

The answer would be : you cannot have two balancing segments. Please have a look at the secondary Tracking segment feature if it suits your requirements.

(6) Any Limitation for this Functionlity?

You should not forgot secondary tracking segment does not support suspense adjustment, intercompany segment value balancing and rounding imbalnce processing.

Reference Note :

  • Note 237968.1, the Secondary Tracking Segment qualifier is new to 11i with Family Pack E
  • Note 261961.1 Enabling Secondary Tracking Segment for an Existing Set of Books
  • Note 277888.1 Setup Checklist to Enable the Secondary Tracking Segment in Oracle General Ledger
  • Note 268393.1 How Do Secondary Tracking Segment’s Features Work
  • Note.268391.1 How to Enable Secondary Tracking Segment For A New SOB

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Posted in Oracle General Ledger | 4 Comments »

Purchasing Approvals

Posted on March 24th, 2008 by Sanjit Anand ||Email This Post Email This Post

In PO there are two methods to route documents for approval.

1Approval Hierarchies (uses position hierarchies)

2Employee/Supervisor Relationships (use employee/supervisor relationship)

1Approval Hierarchies

Purchasing utilizes positions as a roadmap to determine how and where documents will be routed once the approval process has been initiated. It is first necessary to have created all positions that are going to be used in the system. Once all positions have been created, it is necessary to build the position hierarchy.

Each position has approval limits, so when a purchase order exceeds the limits of the position, the purchase order is forwarded onto the next position in the Hierarchy

2Employee/Supervisor Relationships

This type of hierarchy does not use the Approval Hierarchy form,but is defined by the employee/supervisor relationship. The supervisor of an employee is defined on the Assignment region of the Employee form

If the purchase order entered by the employee exceeds the approval limits, the purchase order is forwarded onto the employees’ supervisor, as defined on the Employee form

To implement this form of approval routing, you need only to define JOBS. The JOB will then serve as the tie to the Approval group, and based on the approval limits from the Approval Group, the Document will either be Approved or Forwarded to the Employees’ Supervisor.

Similar Post

Posted in Oracle Purchasing | No Comments »

Key accounts – P2P Cycle

Posted on March 22nd, 2008 by Sanjit Anand ||Email This Post Email This Post

Here are some of the key accounts used in P2P(Procure to Pay) Cycle.


This is one of the clearing account.

The account is used for receipt accruals.

After receiving transactions are processed and the Transfer Transactions to GL process is run, the Receiving Inventory Account is cleared and the Material account is charged with the cost of the capitalized inventory .

You can specify this account when you define Receiving Information for your inventory organizations.


This is the account used by Purchasing to accrue your payable liabilities when you receive items you will capitalize as inventory.

This account represents your uninvoiced receipt liability and is usually part of your Accounts Payable Liabilities in the balance sheet.

Oracle payables relieves this account when the invoice is matched and validated.

So, you have to specify this account when you define Inventory Information for your inventory organizations in the Other Accounts tab.


This account defaults from the supplier site and is credited when a standard invoice is entered or debited when a credit memo or debit memo is entered. The account is relieved when the invoice is paid.

When you are creating an invoice, the liability account will get defaulted based on the hierarchy i.e., it can be from Financial options/Supplier /Supplier site.However you will still have an option to modify the Liability account by replacing the defaulted account.

(0r) do you see a different account getting defaulted during Invoice creation


This is the account used by Purchasing to accrue your payable liabilities when you receive items you will expense. This account represents your uninvoiced receipt liability when you run the Receipt Accruals – Period End process.

When you receive the goods,the accounting entry will be
Receiving Inv Dr
To Expense Accrual Cr

In Payables

Expense Accrual Dr
To Liability Cr.

So the Expense Accrual will knock-off

You can specify this account on the Accrual tab when you set up Purchasing Options.


An asset account is used for to tracks material cost .

In the average costing, this account holds your inventory and in transit values. Once you perform transactions, you cannot change this account.

You can specify this account when you define Inventory Information for your inventory organizations in the Valuation Accounts region for the Costing Information tab.


This is the charge account is the account that will be charged for the purchase on either the balance sheet or income statement.

  • If the destination type for the distribution is Inventory, this account will be the Material account associated with the subinventory and you cannot override it. This is the balance sheet account that will be charged after inventory is capitalized.
  • If the destination type is expense, you can specify this account (provided it isn’t project related) and override any defaults. This account will be either an asset clearing account that will be included on the balance sheet or an expense account that will be included on the income statement. This account is either created or specified when you create a purchase order.

Look at the Material Account on the destination inventory organization, or (if specified), destination subinventory.
Under Inventory: Setup/Organizations/Parameters or Sub inventories


This account is used to record differences between purchase order line price and standard cost.

The Purchase Price Variance is calculated when items delivered to inventory are costed.

You should note, this account is not used with the average cost method.

For example, assume the purchase order line price for an item was set at $100 per item but standard cost was set to $120 per item and you purchased 10 items. The Purchase Price Variance would be $200.

You can specify the Purchase Price Variance account when you define Inventory Information for your inventory organizations in the Other Accounts tab.


The variance account used to record differences between purchase order price and invoice price.

This account is used by Payables to record the invoice price variance for inventory items.

For expense items, the account generator uses the charge account to record any invoice price variance.

You can understand with this set of example, how its works;

1). Create a purchase order with expense type item having the above
Navigation: Purchasing->Purchase Orders->Purchase Orders

2). Receive the goods for this PO.
Navigation: Purchasing->Receiving->Receipts

3). Login as Payables manager, create an invoice and match it to the PO created in step 1.

for example

PO Quantity=100
PO Price = 5

Now you match an invoice to the PO and Invoice(match) details are as follows:
Matched Quantity=100
Price on Invoice= 1

in this case, probably you have set the Invoice price variance account in define Organization Parameters form( alternate region: other accounts) same as the expense account on the PO

Invoice Price Variance= (PO Price – Invoice Price) x Qty. Invoiced

You can specify this account when you define Inventory Information for your inventory organizations in the Other Accounts tab.

Similar Post

Posted in Oracle Payable | 7 Comments »

Procure to Pay (P2P) – Accounting Entries

Posted on March 21st, 2008 by Sanjit Anand ||Email This Post Email This Post

In response of my last post ,yet another reader asked for “Asset ,Purchasing & Inventory Purchasing and there corresponding accounting entry within P2P cycle. Therefore this post highlights some of key accounting entry in each steps with respect to th

As you know “procure to pay” Business Flow start Purchasing requisition till paying to vendors and most important, in all the case the purchase is made for basic element called Items.

As you know there are three types of items:

  • Inventory Expense Item
  • Inventory Asset Item
  • Expense item

Definition of above Items used in Purchasing can be best understood as:


Asset flag means means it is an asset and the items value will show in your inventory valuation.

1Inventory Item

inventory item

2Expense Item

These are one which is used for consumable items purchase for your organization. More importantly , for creating an expense item you have to perform following setup doing in the Master Item form.Go to same path in oracle inventory

Oracle Inventory -> Items -> Master Items

When master items form open Go to Inventory Menu you need to tick followings

  1. Inventory item
  2. Stock able
  3. Transactble
  4. Resolvable

And you can also setup in Costing and purchasing menu account code as per your requirement.


3Asset Item

As discussed above , the following attributes need to be enabled for such an item.

  • Inventory item
  • Stock able
  • transact able
  • Costing flag
  • Inventory asset value

For entering on purchase orders
It should have purchased and purchasable flags enabled and you have to make sure you are assigning this item to the Purchasing org which you have defined at

Oracle Purchasing > Setup > Organizations >
Financial Options > ‘Supplier-Purchasing’ alternate region ‘Inventory Organization’ field.

The accounting can be best described for such kind of items is;

asset Item

Is there any effect on Step 5 in all three cases, that mean do matching have different accounting entry?

The answer is no; as per my understanding purpose of setting the PO to a 2way, 3 way or 4 way match is to ensure that the corresponding hold is generated on the invoice.

The holds are basically designed for control purposes, they do not have any accounting effects.

Additional Reading

Posted in Oracle Payable | 15 Comments »

Understanding “Cash Flow Statement”

Posted on March 21st, 2008 by Sanjit Anand ||Email This Post Email This Post

Lets start with the basic concept ;

bluWhy Is Cash So Important?”

Cash is the necessary element which runs the business. We need to know where the cash comes from (sources, or inflows) and where it is spent (uses or outflows).

  • Most of bills, Salaries, etc are paid in cash
  • Most vendors are paid in cash
    • Even on a “good day,” the small business will owe its debts in 30 days
    • Those purchasing products/services from the small business though will have 90 days to pay their debts.


What is Cash Flow?

  • CF Statement is a ‘flow’ statement.
  • CF Statement indicates changes that took place between tow successive Balance Sheets.
  • The statement of cash flows provides a thorough explanation of the changes that occurred in a firm’s cash balance during the entire accounting period.
  • The statement of cash flows reports cash receipts and payments of a company during a given period for operating, financing, and investing activities.
  • Cash includes cash and cash equivalents.

purpCash Flow & Accrual method of accounting

Cash Flows, although related to net income, are not same. This is because of the accrual method of accounting. As we know,under accrual accounting, a transaction is recognized on the income statement when the earnings process is completed, that is , when the goods and /or services have been delivered or performed or an expense has been incurred.

ora..that mean …Cash Flow Statement

  • Cash flow statements ARE NOT budgets
  • Cash flow statements are concerned only with ACTUAL cash inflows and outflows .

An Example of the Difference Between Budgets and Cash Flows

If you take a “Prepaid insurance” for a year costing $3,000 – or $250 a month

  1. A budget will account for 12 equal installments of $250
  2. A cash flow statement will recognize a 1-time only outflow of $3,000.
  3. You can also see more details inflows and Outflows attributes at the end.

purpWhy do we need CFS as financial reporting?

  • Balance Sheet & P&L A/c is not sufficient in term of pure financial Reporting.
  • It shows the relationship of net income to changes in cash balances.
  • It reports past cash flows as an aid to:
    • Predicting future cash flows
    • Evaluating the way management generates and uses cash
    • Determining a company’s ability to pay interest and dividends and to pay debts when they are due
  • It identifies changes in the mix of productive assets.
  • The statement of cash flows, along with the income statement, explains why balance sheet items have changed during the period.
  • Some time , there is legal rules to provide the cash Flow statement.

redDo you know ..What is Float?

Float refers to the difference in time between when the check is deposited and cash is received.

This makes a significant impact of your CFS.

red1Statements of Cash Flow

A statement of cash flow is one of several financial statements that public companies construct and share with their stake holders. In general this statement will include a formula or calculation that considers:

Cash and Cash Equivalents (Beginning)
+ Cash from Operations
– Cash Flows from Investing Activities
+ Cash Flows from Financing Activities
= Cash and Cash Equivalents (Ending)

bluIts all about Relation ship

This is family pack of financial reporting. The relationship among the balance sheet, income statement, and statement of cash flows:

cash flow


greCASH FLOW CLASSIFICATIONS- Activities Affecting Cash

Cash Activities are divided into three main categories

  • Operating activities – transactions that affect the income statement ..these are mostly used for Normal day-to-day activities
    • Cash effects of revenue and expense transactions
      • Deal with the income statement accounts
      • Included interest paid (on debt) and income taxes (to the government) which enters in the determination of net income
      • Cash receipts from sales of good and services,miscellaneous income
      • Cash payments for inventory, wages, insurance, utilities,rent
      • Changes in current asset and liability accounts from the prior year.
  • Investing activities – activities that involve (1) providing and collecting cash as a lender or as an owner of securities and (2) acquiring and disposing of plant, property, equipment, and other long-term productive assets …like changes in long term assets and investment
  • Financing activities – activities that include obtaining resources as a borrower or issuer of securities and repaying creditors and owners..and these are basically changes in equity and non Operating Liabilities

1-6 Operating Activities

Cash Inflows are typically Understood as

  • Cash Receipts from sale of goods/rendering of services
  • Cash Received from royalties, fees, commission, etc.
  • Other operating receipts

where the cash outflow can be best understood as:

  • Cash payments to suppliers for Goods/services
  • Cash payments to employees
  • Interest and taxes paid
  • Other operating cash payments

2-6Investing Activities

Cash Inflows are typically Understood as

  • Sale of property, plant, and equipment
  • Sale of securities that are not cash equivalents
  • Receipt of loan repayments

where the cash outflow can be best understood as:

  • Purchase of property, plant, equipment
  • Purchase of securities that are not cash equivalents
  • Making loans

3-5Financing Activities

Cash Inflows are typically Understood as

  • Borrowing cash from creditors
  • Issuing equity shares
  • Issuing debt securities

where the cash outflow can be best understood as:

  • Repayment of amounts borrowed
  • Repurchase of equity shares
  • Payment of dividends

oraHow To Develop an Accurate Initial Cash Flow Projection

  • Contact vendors/suppliers and ask about payment terms
  • Check with credit card companies and get information about when the accounts will be processed as well as what the percentages are.

purpDeveloping a Cash Flow Statement

  • The cash flow statement of a small business is different than that of a corporation
  • Corporation will have operating, investing, and financing sections to their Statement of Cash Flows
  • The small business is only interested in the cash flows resulting from operations
    • Operations signifies all the cash flows in/out of the business…
  • A cash flow statement will maintain an accurate representation of the overall cash position if used effectively
  • A cash flow statement begins with expenses
    Examples of possible expenses
    • Salaries
    • Cost of Goods Sold
    • Taxes
    • Office Supplies (often underestimated)
    • Rent
    • Most important to account for EVERY expense…you have defined in system.
  • Begin accounting for revenues once done with all expenses
  • If possible, the company should separate their revenues into separate categories
    It will help focus the business on which sectors of its revenues are important and will influence the operations of the business…

redDo you know Who can utilize information processed by the SCF?

These is utilized by Management,Investors

yelCash Flow Statement in Oracle Financials?

  • Important to know, there is no seeded report that cater the need for Cash Flow.
  • Most of cash flow statement is prepared by account department.
  • We can achieve CFS by using OFA.
  • We can also generate CFS by FSG, but it is bit difficult, unless until, the format is not very simple.
  • you can pull the reports based out of data in the GL_BALANCES table.

Similar Post

Posted in Basic Accounting, JumpStart | 6 Comments »

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