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 Get a Free Magzine ...Profit:The Executive's Guide to Oracle Applications

What does ASCP do?

Posted on November 26th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Oracle Advanced Supply Chain Planning (ASCP) is a comprehensive, internet-based planning solution that decides when and where supplies should be deployed within an extended supply chain (for example, inventory, purchase orders and work orders). This is the supply planning function.

Oracle ASCP addresses the following key supply planning issues:

  • Purchased parts planning
  • Capacity Modelling and Forecasting
  • Supplier Demand Forecasting
  • Production Planning and Scheduling
  • Available to Promise calculation
  • Sourcing Optimization, Supply Constrain Resolution
  • Excess and Obsolete Planning and Simulation
  • Distribution Planning

Posted in Oracle Manufacturing | No Comments »

Payables Transfer to GL

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

dgreybarrow-2 Transfer Program

In Oracle Applications, modules such as AP, AR, PO, INV ,PA and WIP have concurrent processes that take the information from database structures in which the business activity is stored and inserts it into the GL_INTERFACE table.

Here are the list of some of the transferring concurrent programs are:

  • Payables Transfer to General Ledger aka APPPST (AP)
  • Create Journal Entries aka FAPOST(FA)
  • General Ledger Transfer Program ak ARGLTP(AR)
  • AX Transfer to GL akaAXXPSTGL(AX)
  • Interface Burden Cost to GL PADTBC(PA)
    • PRC: Interface Labor Costs to General Ledger PAGGLT(PA)
    • PRC: Interface Usage Costs to General Ledger PASGLT(PA)
    • PRC: Interface Revenue to General Ledger PATTGL(PA)
  • Transfer transactions to GL INCTGL(Inv)
  • Payroll Transfer to GL(PAY)

dgreybarrow-2 Journal categories used while AP to GL Transfer

As you know journal categories classifications used to indicate the purpose or nature of your journal entry.Therefore in Payable the categories which are used are Invoices (also called Purchase Invoices), Payments, and All (both Invoices and Payments) and Reconciled Payments (for Payment Clearing and Payment Unclearing Events).

More Important the type of journal category you can select depends on the accounting method that you have selected for your set of books.

dgreybarrow-2Doing a Transfer to GL from AP

After you create accounting entries in Payables, submit the Payables Transfer to General Ledger program which send invoice and payment accounting entries to the general ledger interface which is triggered with Journal Import program.

dgreybarrow-2How and what Payables Populates into GL

Except Oracle Fixed Assets module, most of subledger transfer program moved via GL_Interface table.

ap-glOnce you submit the payables transfer to General Ledger program , the data get populates into GL Interface table with accounting information for Payables transactions.

If you use Oracle General Ledger, then Journal Import uses the data in the GL Interface to create journal entries and populates the General Ledger GL_JE_BATCHES, GL_JE_HEADERS,GL_JE_LINES, and GL_IMPORT_REFERENCES tables.

When the Payables Transfer to General Ledger program transfers accounting information to the GL Interface, it always populates the following columns:

  • GL_SL_LINK_ID: value is a unique, sequential number
  • GL_SL_LINK_TABLE: value is APECL for Payables actuals, and APENCL for Payables encumbrances.

When you submit the Payables Transfer to General Ledger program you specify whether you want to transfer accounting information in summary or detail, and you specify the journal category. The parameters you select affect what is transferred to GL Interface columns REFERENCE21–REFERENCE30.

Read the rest of this entry »

Posted in Oracle Payable | 20 Comments »

EBS Approvals goes Wireless

Posted on November 16th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

dgreybarrow Wireless Approval : What is meant for EBS user community iphone

Oracle Business Approvals for Managers is a new class of task focused built mobile application to enhance productivity via immediate notification of key tasks needing review /action, with relevant analytics provided to support and better decision-making.

This allow you to secure access to business information on the go

  • Performance Indicators
  • Contact Information
  • Sales data

This can be carried out Apple iPhone through flexible user interface features.

dgreybarrow Benefits in Oracle EBS

This allows executives and managers to respond quickly and easily to common tasks such as approvals for Finance, Purchasing,HR and Sales. These are the some of activity that they can do..

  • Expense approval
  • HR Job Offer & Vacancies
  • Purchase Requisition
  • Sales Quotes

dgreybarrow Other key features are:

  • Oracle BI Apps pre-built Analytics : Oracle Business Approvals for Managers allows users to view and interact with approval tasks that include expenses,purchase requisitions, job vacancies and job offers that originate from Oracle enterprise applications. Additionally,related business intelligence from Oracle Business intelligence enterprise Edition Plus or Oracle Business Intelligence Applications can be associated with approval tasks as an option to provide insight to support approval decisions.
  • Oracle SOA / BPEL technology :Oracle Business Approvals for Managers is tightly integrated with Oracle enterprise applications through the deployment of flexible and powerful Oracle SOA Suite technologies in a companion product called Oracle Business Approvals Connector
    for Managers.This also leverages the Identity Management facility within Oracle SOA Suite to authenticate user security which supports Secure Sockets Layer (SSL) protocol.

dgreybarrow System Requirement

These are versions of software required.

  • Apple iPhone 2.1 Software
  • Oracle Business Approvals Connector for Managers 1.0
  • Oracle E-Business Suite 12.0.4 (Purchasing, iProcurement, Financials, Human Resources or iRecruitment)
  • This is currently supported only in english

dgreybarrow iPhone + Apps R12 Integration Architecture

Check it out Steven Note, details post for iPhone + Apps R12 Integration Architecture

dgreybarrowHow much you have to pay

  • With assumption if you are using R12.0.4 with pre-requisite product, You have to pay extra for licensing cost for Oracle Business Approvals Connector.
  • Managers iPhone client application can be downloaded for free of cost from iTunes App Stores sites.

dgreybarrowMoving Forward

As per Oracle Datasheet Oracle plan is to extend this feature in CRM area in near future and will be supported in other language.

dgreybarrow Reference Notes

Check it out some of official documents from Oracle.

Posted in Centrestage | 1 Comment »

File -> Export : Enabling or disabling

Posted on November 16th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

User may request you for enabling or disabling menu for File -> Export in Oracle Forms.

Take a note, File ->Export works itself on the basis of User Cursor Control.

1. If Cursor control is at block where we can view multiple records at a time, the Export function is enabled.

2. If Cursor control is at block where we can view single record at a time, the Export function is disabled.

The reason for providing this functionality is that if there are many records in a block, then it might be difficult for the user to scroll down to view all the records in that block. So, the user can actually export them using the Export function.

Moreover there is no profile option which gives you control for this function.


Posted in AOL | 1 Comment »

Setting default to Excel for Exported file from “File ->Export “

Posted on November 14th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Oracle Applications allows you to export data that you see on the form to a file - like excel - which can be then be used as a normal excel file. These are really useful when you want a quick dump of the data for reference or are trying to trouble-shoot some issue.

The File - Export option allows you to dump the data you see on the form (or data set you have queried).

The default is a file type called "tsv", that means tab separated values and can be opened by default in Notepad in most cases, but can also be configured to open in Excel, which is a choice for most of user.

Problem : How Can you do a Setup File->Export as an XLS Type File default?

Here are the steps

1. Go to Explore(not IE) ->Tool -> Folder Options

file-export

Fig 1

2. Check out for TSV File format , if not exist , create a new type by Pressing NEW button.

2

Fig 2

3. Now you need to setup default to excel, go to change Button in fig 2, and point to Microsoft Excel

3

Fig 3

Posted in AOL | 8 Comments »

‘File ->Export’ Function is troubling

Posted on November 13th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Hard Time this week for me ,struggling with Finance user from another entity to see unexpected things reported , Out of the box File -> export function was not working properly, some of them reported Browser crashing some of them reported data not exported 100% from form, some of them reported longer duration to export for nearly 500 records from Invoice Inquiry or Invoice Entry form.

There are few cases which user can experience

  • File - Export does not bring up a Save As prompt
  • File -Export may leads to Browser crashes
  • File - Export takes long time to export into Excel
  • File - Export not exporting 100% data from form
  • File - Export creates zero byte file
  • File -Export on selecting "Continue to End" causes system to hang

More less, these problems are encountered by some additional setup requirement in IE . Here are few troubleshooting points, if you are using IE 6 or 7.

1. Make sure your browser will have setup completed for these 2 categories:

  • ActiveX controls
  • Downloads

You should follow these Steps:

  • Go to IE Tools menu - Internet Options - Security - Custom Level
  • Adjust all the settings for ActiveX Controls and Downloads to be either 'enable' or prompt for zones Internet, Local Intranet, and Trusted Zones
  • Restart the browser and now test if the export process works

2. Make sure if users desktop are using a proxy server to access the web via MSIE. If you set "Bypass proxy server for local addresses" in Internet Options -> Connection -> LAN Settings check if the File > Export works without error.

3. Make sure you have set System Profile Options 'Export: Mime type' to 'text/tab-separated-values' or or 'application/vnd.ms-excel'

4.Delete Browser Cache > Tools > Internet Options > zone=temporary internet files : delete files {checked offline content}

5. You should also delete C:program files/oracle/jinitiator<version>/jcache/*

6. Make sure you disable Pop-up Blocker

7. If you have still an issue , try this based out of note :338545.1

  • Make sure you have checked step 1,2,3.
  • Login to AP responsibility and try exporting from the data from Invoice workbench after search for invoice batch.
    Are you able to export?
  • If not ,Go to (Tool Bar) Help -> Diagnostics -> Examine
    Set Block = ENVIRONMENT
    Set Field = FND_EXPORT_DEBUG
    Set Value = TRUE
  • Export and observe the messages that are generated during the export process.
    What is the last pop up message ?
  • Try to run the following piece of code in SQLPLUS*

declare
db_file number;
mime_type varchar2(255) :='text/plain' ;
out_string varchar2(32767) :='Just some plain text that is stored' ;
web_server_prefix varchar2(500);
url varchar2(500);
begin
fnd_global.apps_initialize(user_id => <put your user id>,resp_id => <put your resp id>,resp_appl_id => <put your appl id>);
DBMS_SESSION.SET_NLS('NLS_LANGUAGE','AMERICAN');
db_file :=fnd_gfm.file_create(content_type =>mime_type,program_name=> 'export');
fnd_gfm.file_write_line(db_file,out_string);
db_file :=fnd_gfm.file_close(db_file);
url:=fnd_gfm.construct_download_url(fnd_web_config.gfm_agent,db_file,TRUE);
dbms_output.put_line(url);
end;

If still not able to fix, ask Oracle for further resolution.

8.If you are not able to 100% export in excel do a quick check

Run this query immediatly after Export get completed
select count(*) from fnd_lobs where program_name='export';

If counts not matches then you need to recreate the index using script $FND_TOP/sql/aflobbld.sql. This is because the File/Export functionality of EBS uses system LOB columns to store temp data before it is outputed to a browser. If that temp data becomes large enough as the result of large export query set, then the max_extents limitation of the column is reached thereby causing the export to fail.

Most of my user experinces these issues with WIN2K or XP SP1 and SP2, but not with SP3.No clue for me with service pack.

Is there any linkage with window XP or 2000 .Net Framework installation and Service pack in client desktop for this feature? Do share some thoughts if anyone got such kind of issue in past.

Posted in AOL | 4 Comments »

Dissecting TCA Architecture

Posted on November 10th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Before start , you try to understand the a Typical Business model as per figure below then you can able to understand the TCA Data Architecture easily.

TCA

 

dgreybarrow Hz_Parties

Information Stored

  • The HZ_PARTIES stores information about parties such as organizations, people, and groups, including the identifying address information for the party.Several pieces of data, such as the identifying address, organization profile information, and person profile information, are denormalized onto this table for performance reasons.Although a record in the HZ_PARTIES table represents a unique party, multiple parties can have the same name.
  • The identifying address contained in the HZ_PARTIES table is denormalized from the HZ_LOCATIONS table.
  • Example, It stores the information about Hub Inc. as Party_Relationship, Hub Corp. as Organization and Mike as Person

dgreybarrow Hz_Person_Profiles

Information Stored

  • The HZ_PERSON_PROFILES stores detail information about people (including demographic information, phonetic name pronunciation, academic/professional titles,
    etc.).
  • Some of the information stored on this table is denormalized to the HZ_PARTIES table.
  • Example, It stores complete details about Mike.

dgreybarrow Hz_Organization_Profiles

Information Stored

  • The HZ_ORGANIZATION_PROFILES table stores a variety of information about a party. This table gets populated when a party of the Organization type is created.This table stores credit rating, financial statistics, socio-economic and corporate linkage information for organizations.Each time organization information is changed, the effective end date column for the original record is updated and a new record that contains the updated information is created.Some of the information stored on this table is denormalized to the HZ_PARTIES table.
  • Example, it stores complete details about the Hub Corp Organization.

dgreybarrow Hz_Person_Language

Information Stored

  • Hz_Person_Language table stores information about a language spoken by a party of the Person type.
  • Example, Mike may speak Spanish as his primary language. You would create another record if he speaks French, but it is not his primary language. Note that a separate record must exist for each language.

dgreybarrow Hz_Relationships

Information Stored

  • Hz_Relationships table stores information about relationships between one party and another party. The SUBJECT_ID and OBJECT_ID columns specify the relationship that exists between two parties.

Linking Details

  • Subject_id is stored in the party id of Hz_Parties when the party type of Hz_Parties is person.
  • Object id is stored in party of Hz_Parties when the party type of Hz_Parties is Organization.

dgreybarrow HZ_RELATIONSHIP_TYPES

The HZ_RELATIONSHIP_TYPES table defines the business rules that are associated with a relationship type. A non-directional relationship type consists of a single record with the same forward (FORWARD_REL_CODE) and backward (BACKWARD_REL_CODE) relationship codes. A directional relationship type consists of two records: one for the parent (DIRECTION_CODE is P) and the other for a child (DIRECTION_CODE is C) of that parent. Forward and backward relationship codes are validated against the PARTY_RELATIONS_TYPE lookup type.

dgreybarrow Hz_Party_Relationships

Information Stored

  • Hz_Party_Relationships table stores parent – child information and the relationship between them.
  • Example, It stores information about the Hub Inc with the subject as John and Object as Hub Corp and relationship as Employee of.

Linking Details

  • Subject_id is stored in the party id of Hz_Parties when the party type of Hz_Parties is person.
  • Object id is stored in party of Hz_Parties when the party type of Hz_Parties is Organization.

dgreybarrow Hz_Org_Contacts

Information Stored

  • Hz_Org_Contacts table stores information about the position of the contact for a party or party site. The records in this table provide information about a contact position such as JOB_TITLE,DEPARTMENT_CODE and general contact information.
  • This table is not used to store information about a specific person or organization, such as name and identification codes, that information in stored in the HZ_PARTIES table.
  • Example, this table may include a record for the position of vice president of manufacturing that indicates that the contact is a senior

Linking Details

  • HZ_RELATIONSHIPS is the ‘parent table’ to HZ_ORG_CONTACTS (i.e. 1-to-Many) but there is a Many to-1 relationship enforced in the API. That is, inserting a row into HZ_ORG_CONTACTS will insert two rows into HZ_RELATIONSHIPS table One row is inserted for the relationship and another one for the reciprocal relationship.
  • Example “Mike Employee of Hub Corp.” and “Hub Corp. Employer of Mike”.

Hz_Org_Contact_Roles

Information Stored

  • Hz_Org_Contact_Roles stores information about the role of the contact position that is specified in the Hz_Org_Contacts table. Contacts may have multiple roles.
  • Example an employee may have a role a Manager, Assistant etc

dgreybarrow Hz_Party_Sites

Information Stored

  • Hz_Party_Sites table stores location specific party information. One party can Optionally have one or more party sites.
  • Example, It stores SFO and LA as sites for the party Hub Corp..

dgreybarrow Hz_Party_Site_Uses

Information Stored

  • Hz_Party_Site_Uses table stores information about how a party site is used.
  • Party sites can have multiple uses for example, Bill to and Ship to uses.

dgreybarrow Hz_Locations :

Information Stored

The HZ_LOCATIONS table stores information about a delivery or postal address such as building number, street address, postal code, and directions to a location. This table provides physical location information about parties (organizations and people) and customer accounts. Records in the HZ_LOCATIONS table can store delivery and postal information about a location through columns such as the LOCATION_DIRECTIONS, POST_OFFICE,
and TIME_ZONE columns. You can also use the HZ_LOCATIONS table to store latitude and longitude information. Data in the HZ_LOCATIONS table is also used to determine the appropriate tax authority and tax rates for sales tax and VAT calculations

dgreybarrow Hz_Loc_Assignments

Information Stored

  • Hz_Loc_Assignments table stores information about the relationship between a location defined in the HZ_LOCATIONS table and a tax
    authority defined in the AR_LOCATION_COMBINATIONS table.
  • The appropriate sales tax can be calculated when you assign a location to a tax authority.
  • In a multi–org environment, a record is created for each organization at the location.

dgreybarrow HZ_CUST_ACCOUNTS

Information Stored

  • The HZ_CUST_ACCOUNTS table stores information about customer relationships established with a party. Since a party can have multiple customer accounts, this table may contain several records for a single party. For example, an individual person may establish a personal account, a family account, and a professional account for a consulting practice. Note that the focus of this table is a business relationship and how transactions are conducted in the relationship.

  • Example, When Hub Corp or Mike becomes the customer, and then their account information is stored in this table.

dgreybarrow Hz_Cust_Acct_Relate_Al

Information Stored

  • Hz_Cust_Acct_Relate_All stores information about relationships between customer accounts.
  • A flag allows you to indicate whether a relationship is reciprocal.

Linking Details

None

dgreybarrow Hz_Cust_Account_Roles

Information Stored

  • Hz_Cust_Account_Roles table stores information about a role or function that a party performs in relation to a customer account. Note that only Parties of type Relationship should be inserted into this table.
  • Example, Jack is an employee of Hub Corp. Jack might be a legal contact for Hub Corp. So the role type is Contact.

dgreybarrow Hz_Role_Responsibility

Information Stored

  • Hz_Role_Responsibility table stores information about the required or expected activities of a party based on the party’s role or function in relation to a customer account.
  • Example, Jack might be the first contact for Hub Corp. So the responsibility type is First Contact.

dgreybarrow Hz_Cust_Acct_Sites_All

Information Stored

  • Hz_Cust_Acct_Sites_All table stores information about customer account sites or locations for customer accounts. One customer account can have multiple sites or locations

Linking Details

  • Address information for a site is stored in Hz_Locations table. But it is linked via Hz_Party_Sites table.

dgreybarrow Hz_Cust_Site_Uses_All

Information Stored

  • Hz_Cust_Site_Uses_All table stores information about the business purposes assigned to a customer account site.
  • Example, Bill to and Ship to uses.

dgreybarrow Hz_Customer_Profiles

Information Stored

  • Hz_Customer_Profiles table stores information about the credit characteristics of a single customer account.

dgreybarrow Hz_Cust_Profile_Amts

Information Stored

  • Hz_Cust_Profile_Amts table stores information about the credit limits specified for a customer profile class for a single currency.
  • The credit limits of the profile class can then be assigned to specific customer accounts or customer account sites.

dgreybarrow Hz_Cust_Profile_Classes

Information Stored

  • Hz_Cust_Profile_Classes table stores information about credit characteristics those are common across a group of customer accounts.
  • Example, you can create a profile class called Trade and can specify several attributes that describe this class of customer. In the future, you can assign new customers to this class so that the new customer inherits the characteristics of the class.

dgreybarrow Hz_Contact_Points

Information Stored

  • Hz_Contact_Points table stores information about how to communicate to parties or party sites using electronic media or methods such as Electronic Data Interchange (EDI), e-mail, telephone, telex, and the Internet.
  • Example, telephone related data can include the type of telephone line,a touch-tone indicator, a country code, the area code, the telephone number, and an extension number to a specific handset.
  • NOTE: Each media or method should be stored as a separate record in this table.with Hz_Parties via Hz_Relationships.
  • If the party type is Person,then Hz_Contact_Points can be directly linked with Hz_Parties

Linking Details

  • If the party type is Organization, then Hz_Contact_Points is linked here.

dgreybarrow Hz_Contact_Restrictions

Information Stored

  • Hz_Contact_Restrictions table stores information about limitations on when and how parties should be contacted or why no contact should be made with the party.
  • Example, a customer contact that is on vacation for several weeks may request that no faxes be sent during a specific time period.

Posted in Oracle TCA | No Comments »

What are Workflow Listeners

Posted on November 10th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Listeners are the Service Components with in Oracle Workflow.

Following are the types:

  • Workflow Agent Listener: Process inbound messages on Business Event System agents in the database.
  • Workflow Java Agent Listener : This is only Limited to E-Business Suite Only: This process inbound message on the Business Event System agents in the middle tier. An agent listener monitors a Business Event System agent for incoming messages and dequeues messages using the agent's queue handler. PL/SQL agent listeners process event subscriptions with a PL/SQL rule function in the database where as the Java agent listeners(Oracle E-Business Suite only) process event subscriptions with a Java rule function or subscription to events with a Java generate function in the middle tier.

Oracle Workflow provides the following seeded PL/SQL agent listeners:

  • Workflow Deferred Agent Listener: Handles messages on WF_DEFERRED to support deferred subscription processing.
  • Workflow Deferred Notification Agent Listener: Handles notification messages on WF_DEFERRED to support outbound notification processing.
  • Workflow Error Agent Listener: Handles messages on WF_ERROR to support error handling for the Business Event System.
  • Workflow Inbound Notifications Agent Listener: Handles messages on WF_NOTIFICATION_IN to support inbound e-mail notification processing.

Within Oracle E-Business Suite, Oracle Workflow provides the following seeded Java agent listeners:

  • Workflow Java Deferred Agent Listener: Handles messages on WF_JAVA_DEFERRED to support deferred subscription processing in the middle tier.
  • Workflow Java Error Agent Listener: Handles messages on WF_JAVA_ERROR to support error handling for the Business Event System in the middle tier

arrow-up-3 SOMETIMES LISTENERS MIGHT BE DOWN AND OUR WORKFLOW MIGHT NOT RUN. HOW TO IDENTIFY THIS AND MAKE THEN COME UP?

You should configure agent listeners to run by default in Oracle Applications even if you do not use Oracle Workflow.

Other modules such as Oracle Application Object Library and the directory service use the Business Event System for internal processing and enqueue messages on the WF_DEFERRED and WF_JAVA_DEFERRED agents.

You should run the Workflow Deferred Agent Listener and the Workflow Java Deferred Agent Listener to process these events and prevent the queues from growing too large causing performance issues. System Administrators need to ensure that these listeners are always running. Use the following navigation to check the status and start if they are down:

Oracle Applications Manager -> Workflow Manager -> Agent Listeners

Posted in Tool | No Comments »

Accounting fundamentals for Techies : Encumbrance

Posted on November 3rd, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Before start of this topic you should be clear on these term;

  • Encumbrance
    This is your any pre-expenditure, such as a purchase order, which will lead to a charge against an account.
  • Commitment
    A journal entry you make to record an anticipated expenditure, as indicated by approval of a requisition.
  • Obligation
    An encumbrance you record when you turn a requisition into a purchase order.

dgreybarrow So...What Are Commitments?
Commitments are obligations for future expenditures made , and this should be for an employee or vendor PO's. Commitments are tracked to help departments forecast their expenditures so that they do not exceed their budget available.

If you are using encumbrance you can get answer of these two question.

  • How much do I have left to spend?
  • Alert me if spending too much from allocated budget.

How much I left to spend , will be based out of these formula

Funds Available = Budget - Actual - Encumbrances.

budget is always unaltered, Encumbrances is reversed when matching to AP invoice.

dgreybarrow Oracle Vanilla encumbrance accounting -Briefing

Oracle encumbrance accounting feature is supported by a process called funds reservation, which is implemented in the General Ledger as a user-exit or spawned program.

What is required if enabled Purchase Orders and Purchase Requisitions to first undergo a funds check when they are submitted. The system checks the line amount(s) of the requested purchase against the budget for the GL account(s) and alerts the user if that PO or Req. will exceed the funds on the account.This process of verification of available funds based on pre-defined summary templates.

Journals are then recorded in a special table called GL_BC_PACKETS, where they will sit temporarily before being converted by a concurrent process called “Program – Create journal” into permanent encumbrance journals.

The modules capable of initiating such transactions are the purchasing module for the creation of three documents, Standard Purchase Order, Requisition and Purchase Order Releases and the Accounts Payable module for the different invoices. It is possible to control the type of encumbrance created by these modules via the set-up of the applications.

The benefit of the encumbrance accounting feature is the ability to have the system control the expenditure budget from the General Ledger, reducing the risks of potential over expenditure.

This is often a legislated requirement for public organizations.

embubrance

The transactional flow has funds reservation being performed through the GL_BC_PACKETS table when reserving funds for purchasing documents, and through the GL_INTERFACE table for receipt accruals which can be either On Receipt or at Period End. The funds checker process takes place whenever funds reservation and/or adjustment is made.

After transactions have taken place in Purchasing, it will become necessary to run the Create Journals program in GL. This program essentially sweeps through the GL_BC_PACKETS table and creates journals for the entries as entered.

Essentially this process allows the different manager to understand their “funds available” based on the following formula.

Funds Available = Budget – Actual – Encumbrance

Emburence

The Oracle system has the ability to control this formula per fiscal period using the different balances tracked within GL_BALANCES (Essentially the General Ledger) by PTD (Period To Date), QTD (Quarter To Date), YTD (Year To Date),PJTD (Project To Date).

If you are coming from other Products like SAP or SUN , let clear these two terms in Oracle context in Project module specific.

  • Actual Transactions - Actual transactions are recorded project costs. Which may includes labor, expense report, usage, burden, and miscellaneous costs.
  • Commitment Transactions - Commitment transactions are anticipated project costs. Such examples include purchase requisitions and purchase orders or contract commitments.

dgreybarrowBasic Oracle Process

The basic process flow for encumbrance accounting activity related to Oracle Purchasing typically is as follows:

  1. Create a requisition.
  2. Approve and reserve funds for the requisition.
  3. AutoCreate requisition onto a purchase order.
  4. Approve and reserve PO (which automatically reverses the requisition funds reservation)
  5. Receive against the purchase order (either period-end or online accruals) and the funds are reversed for the amount received and entered against the charge account.

Take a note, funds reversal also occur when documents are cancelled or finally closed.

Requisitions, when autocreated onto a purchase order, have their funds reversed either when the PO is approved and reserved or when the requisition line(s) are rejected or returned.

dgreybarrowOracle Product associated with encumbrance

  • General Ledger
  • Purchasing
  • Payables
  • Projects
  • Grants

Next will see Accounting Treatment in encumbrance.

Posted in Basic Accounting, Oracle Purchasing | 2 Comments »

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