Oracle Cloud offers a broad portfolio of software as a service applications, platform as a service, and social capabilities, all on a subscription basis. Oracle Cloud delivers instant value and productivity for end users, administrators, and developers alike through functionally rich, integrated, secure, enterprise cloud services.
 Get a Free Magzine ...Profit:The Executive's Guide to Oracle Applications

Subscribe to the OracleAppsHub to receive notifications when there are new posts:

 get RSS feed
 Oracle Fusion Applications (OFA) is a portfolio of next generation suite of software applications from Oracle Corporation. It is distributed across various product families; including financial management, human capital management, customer relationship management, supply chain management, procurement, governance, and project portfolio management
 Get a Free Magzine ...Profit:The Executive's Guide to Oracle Applications

MOAC : Technical Insight

Posted on May 9th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

As we know in R12 , the existing Multiorg architecture includes a new feature Multiple Organizations Access Control (MOAC). Lot of queries and question were asked by my readers, therefore this post completely focus on some of technical Insight because of architectural change.The minimum you should suppose to know is that Access Control feature has backward compatible. Technically means that there are no code or procedural changes if MOAC is not implemented (i.e. The user is assigned one operating unit for a responsibility).

Read the rest of this entry »

Posted in R12, Release12, Technical | 4 Comments »

R12 : AP Trail Balance

Posted on April 20th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

double-arrow Background

Once the entries have been made and before any report are extracted from the accounts, a trail balance is drawn up.This is standard accounting practice. This is just what it says it is - a try at balancing the figure before the profit is worked out and the balance sheet drawn up. By rule of thumb,If the double entry is correct, ie all debit entry for every credit entry and viceversa, then the total of debit balance and total of the credit balances equal .

double-arrow In release 12:

o 11i Trial Balance is known as the Open Account Balances Listing report in R12
o It runs based on the Open Account Balances Listing Definition that you define.
o You can define the Listing Definition at a Ledger or Ledger Set level

It runs based on the Open Account Balances Listing Definition that you define then select as a parameter when you submit the Open Account Balances Listing report.

Trail Balance

As a prerequisite, you must run the Open Account Balances Data Manager and select the Open Account Balances Listing Definition in the parameter labeled "Trial Balance Definition".


Now , you can define the Listing Definition at a Ledger or Ledger Set level such that when you run the report, you can view open liability balances for operating units belonging to a given ledger or ledgers within a ledger set as shown below:


double-arrow Similar Post

Posted in Oracle Payable, R12 | 6 Comments »

R12 SLA: Transaction Account Builder

Posted on April 17th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

In R12 apart from AWB,there is yet another toolset which is called Transaction Account Builder aka TAB which normally used to derive default accounts for a particular transactions using sources , which is defined in the Accounting Methods Builder (AMB).

Normally this derives accounting codes from the TAB which internally driven the AMB setup attributes.

This is used derive default accounts for transactions before they are accounted and then it is used the AMB to generate the accounts that appear in the accounting.

TAB only derives default accounts for transactions. These accounts may not be the ones that appear on the subledger journal entries since these are generated by the Create Accounting program based on the application accounting definitions.

double-arrow What are key components

The TAB Components figure below shows the components


Moreover you can see the source and account derivation rules(ADD) are shared with the AMB which was discussed in one of the last post.


Will discuss some more details for this utility in some another post and we will try to compare how its different from Autoaccounting?

double-arrowSimilar Post

  1. R12 SLA: Analyzing Subledger Accounting
  2. R12 SLA: From Product Accounting to Subledger Accounting
  3. R12 SLA: Accounting Methods Builder
  4. R12 SLA: Transaction Account Builder

Posted in R12, Subledger Accounting | 8 Comments »

R12 SLA: Accounting Methods Builder

Posted on April 17th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

In Subledger Accounting, have you heard something called Accounting Methods Builder, which is sort of toolset to define journal entry rules for the transactions and events of a subledger application . This allows us defining multiple sets of rules to be used concurrently for different requirements.

How AMB work?

Lets try to understand on the basis of Journal entry. Normally a journal are split into three main components:

  • Descriptions
  • Line Types
  • Account Derivation rules

A particular Journal can be best described as figure 1.0(adopted) as below.

1-6 Description : Description can be on the entry or its individual lines. You set up descriptions, as many as you want, by using pieces of data from the transaction and constant values.

Purposely it identify the journal line types, descriptions, and account derivation rules that will be used to create a journal entry for a particular event type

2-6 Type :The Line Type is another component, actually one of the two main components of the entry. The line type defines whether this is a debit or a credit, what the accounting class is, where the amount should come from etc. Again, you set up as many as you need of these for a particular entry. You can have a single invoice line or distribution create as many debits or credits as needed.

  • Under type you can identify the natural side of entry like Debit,Credit,Gain/Loss
  • This will determine the accounting class
  • You can set under which conditions the rule will create a line
  • This can be tighten by defining the values needed for entry line generation, such as amount, currency, conversion rate information

3-5 Account derivation rule : This determines to which GL account a line should be booked. You can have lot of flexibility around the account derivation rules. You can also set up a rule for each flexfield to be used, or you can make it more complex and build each flexfield segment by segment by combining multiple rules.

Normally these rules can be setup to derive the accounts or segment values from transactional data, including conditions of when to use a particular rule versus another.

You can also note,this will:

  • Determine which rule will be generic or specific for a given chart of accounts
  • This will identify what will be derived like Accounting flexfield or there respective segment or qualifier value or Value from a value set
  • This will also have a provision to define how the value will be derived for defaulting some Constant values or any Source value or any mapping set

double-arrowAccounting Methods Builder
The transaction objects and the sources carry transaction information into the rules defined for each component of an entry.

These components, for example, journal line type, account derivation rule, journal entry descriptions, are attached together as a journal line definition for a particular event.


Take a case if you set up a Journal line description for an invoice validation event, another one for a payment creation, another one for payment clearing. The set of such rules for a particular sub ledger application is called the application accounting definition. And the set of application accounting definition for multiple applications is called the sub ledger accounting method.

In reality this accounting methods is assigned to each ledger, which determines which rules are applied when accounting is being generated for a particular ledger. If you have a setup with a primary and a secondary ledger, you could have different accounting methods attached to and used for each. Sounds good.


double-arrow Your Navigation

  • Setup - Application Accounting Definition (Navigation)
    • Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions
  • Setup - Subledger Accounting Method (Navigation)
    • Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods
  • Setup - Account Derivation Rule (Navigation)
    • Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Account Derivation Rules

double-arrowSimilar Post

  1. R12 SLA: Analyzing Subledger Accounting
  2. R12 SLA: From Product Accounting to Subledger Accounting
  3. R12 SLA: Accounting Methods Builder

Posted in R12, Subledger Accounting | 4 Comments »

R12 : Management Reporting Security

Posted on March 2nd, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Do you know, in R12 there is a new management segment qualifier for your chart of accounts. This would qualify a segment to be the management segment if that segment has management responsibility and you can facilitate setting of Read, Write access permissions while defining Data access set in GL.

With this new concept you can:

  • Enables management reporting and analysis
  • Provide a better controls access to specific MSVs based on management responsibility and this can be
    • prevents managers/line managers from viewing or updating data for cost centers, lines of businesses, product lines, etc. that are outside their responsibility
    • Secures access to ledgers and management segment values
    • Grants read only or read and write access to management segment values

This can be best understood as with this simple example,assume you Business COA is based out of three thing like


  • line of business
  • cost center
  • product line

segemt You can set Qualifier with any of the segement, The added benefit of using a management segment is that you can now secure management segment values using data access sets. So you can grant read only or read and write access to specific management segment values to prevent certain managers from viewing and updating data for cost centers, lines of business, or product lines outside of their management authority.

double-arrowDefining and Designing your Management segment qualifier

Define a management segment if you want to perform management reporting and secure read and write access to segment values for the managementsegment. This segment can be any segment, except the balancing segment, natural account segment, or intercompany segment.

double-arrowHow it works

This can be understood as, lets we have four cost center like C0699,C0101,C0201,C0312 and these cost center have Vice President, director A, director B and Director C respectively.The Orginaztional Chart of cost center hierarchy is as figure below.


If you assign the cost center segment as the management segment, read and write access can be secured to certain management segment values based on the cost center manager.

In above example , Director A has read and write access to only cost center C101. Director A does not have access to Director B’s or Director C’s cost center or to the Vice President’s cost center. This will true for others when you set to other. This way you can secure Managment reporting.

If you have given Read/Write to Parent Cost center 0699 to the Vice President, on the other hand, would have full read and write access to cost center C0101,C0201 and C0312 which is the parent of the direct reports. Thus,in that case the VP has full access to all direct reports’ data.

double-arrowBenefits of Management Reporting Security

The new management segment qualifier in combination with data access sets paves the way for management reporting and analysis.You can restrict access to different management segment values and assign them to different managers in your organization.

double-arrowHow this can be achieved in EBS

This can be achieved by setting three steps

  1. Fisrt step you have to to find designate a Management Segment for Chart of Accounts
  2. Then you have to define Data Access Set to Secure the above designate Specific Management Segment Values
  3. Then you have to assign Data Access Set To Responsibility.
    That all, to make security takes effect for that responsibility.

Your Naviagation should be from Responsibility: General Ledger

Navigation: Setup : Financials : Data Access Sets


Data Access Set and Management segment Value

As we know in Release 12,data access sets control which ledgers can be accessed by different responsibilities. Data access sets can also limit a user from accessing certain balancing segment values or
management segment values or grant read–only or read and write access to data in a ledger.

GL automatically creates a data access set when you define a ledger or ledger set. This system-generated data access set provides full read and write access to ledgers. You can also provide more limited access to your ledgers and ledger sets by defining your own data access sets.

double-arrowSuggested Reading

Posted in Oracle General Ledger, R12, Release12 | 1 Comment »

Highlights:Release 12 Oracle EBS Financials

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

R12, Financial track is one of BEST release Ever. We have already seen some great functionality like:

  • A single responsibility to access and transact on multiple organizations
  • A single ledger to manage multiple currencies
  • Ledger sets to manage accounting processes across ledgers
  • Centralized rules engines for tax, accounting and inter company
  • A separate and simple payment creation and delivery solution
  • Centralized trading partners (suppliers, banks, first party legal entities)
  • Simplified reporting via XML Publisher and DBI
  • Netting across trading partners

Here are some of features old post :

double-arrowOracle Payable

Few Features like invoice Lines,Line level approvals,Matching to a PO shipment or receipt,Suppliers in TCA makes a complete new look. Read in details:

Read for more details

double-arrowLegal Entity & Legal Entity Architecture

Read for Details

For more from David's blog

double-arrowMulti-Org Access Controls

Multi-Org Access Control feature allows you to enter, process data and generate reports from a single responsibility.

Read for More:

double-arrowAP-AR netting

This is used to offset Payable & Receivables and other functionlity like trading Partner Approval.

Read for More:

double-arrowGeneral Ledger

New Features like :

Eliminate Accounting Errors by providing Alternate Accounts Replace Disabled Accounts,Introduction for Definition Access Sets,Introducing Ledger Sets in place of SOB

Read for More:

double-arrowR12 Ledger

Read as partly covered

double-arrowSubledger Accounting

Rule based accounting engine, toolset & repository supporting ALL Oracle E-Business Suite modules.

Read for More:


New featues centralized processing, a tight integration with Receivables & Payables along with nicly coupled with flexible approval rules makes a brand new A(advanced)GIS .New Reconciliation Tools is yet another that makes settlement progress easy.

Read for More details

double-arrowCash Managment
As bank Data Model has been changed and moved at a centralized place which get associated with legal entity association. Bank statement reconciliation become easier by more user friendly parameter.Other Features like centralized Balances & Interest,Interest Calculator,Bank Account Transfers makes a complete different look.

Read for More details


Central Engine for Payment Disbursement and Funds Capture,Secure Repository for Credit Cards and Customer/Supplier Bank Accounts

Read for more details for technical coverage:


To Support Intercompany & Intracompany Transaction, the difference can be best understood as:


  • Balancing Journal Entries generated at posting time by the General Ledger Posting routine

In R12, the Balancing Routine:

  • Generates balancing accounting entries for subledger journal entries at time accounting is created
  • Generates balancing journal entries at posting time for all other journals Centralized Balancing Routine

Check out details from David's blog

double-arrowOracle Receivables

double-arrowFixed Assets

Posted in Oracle Application, R12, Release12 | Comments Off on Highlights:Release 12 Oracle EBS Financials

Release 12: 6 New and Changed Feature in “Oracle Assets”

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

Here are the six new and Changed features for Oracle Assets in Release 12 .

  • Sub Ledger Accounting Architecture
  • Enhanced Mass Additions for Legacy conversions
  • Automatic Preparation of Mass Additions
  • Flexible Reporting using XML publisher
  • Automatic depreciation rollback
  • Enhanced functionality for Energy industry


Fixed Assets tied with SLA(Sub Ledger accounting)

As we have already seen in few earlier post "Oracle Subledger Accounting " is a rules-based engine for generating accounting entries based on source transactions from ALL Oracle Applications. Therefore Fixed Asset module does integrated with such functionality to cater the asset accounting at ledger level. With this feature:

  • Oracle Assets is fully integrated with SLA, which is a common accounting platform for Sub Ledgers.
  • Customers can use the seeded Account Derivation definitions or modify them as required.
  • Continue to support Account Generator functionality for existing Asset Books.
  • New SLA Accounting report and online account inquiry.

What you will notice create Journal Entries (FAPOST) process feeding into the GL_INTERFACE table is no more exist .This is replaced with the Create Accounting – Assets process (FAACCPB). With this replacement, the some of high point in term of benefits are:

  • It leads to faster closings: Since there is no requirement of having to close the period, accounting can be created for FA transactions and sent to GL on a continual basis throughout the period.
  • There is no need to wait until the end of the month to run Create Accounting in order to get the data to GL.

Therefore with this new enhancement allows clients to meet multi-GAAP, corporate, and fiscal accounting requirements. The tool, Accounting Methods Builder, allows you to determine the accounts, lines, descriptions, summarization, and dates of your journal entries.

This can be best understood as this example, if you do a large amount of asset additions on the first day of the month, you can run Create Accounting and get all the Cost and Cost Clearing lines over to GL at the close of business that day.

2 Enhancements have been made to the FA_MASS_ADDITIONS table.

Now with this enhanced feature, we can populate the values for the new attributes directly in the FA Mass Additions interface table rather than accepting default values from the asset category. Legacy conversion can be completely automated.These are new adds-on:

  • Asset Life
  • Depreciation Method
  • Prorate Convention
  • Bonus Rule Ceiling Name
  • Depreciation Limit

What it is understood , is that Web ADI has also been upgraded to include the new Attributes.

  • New columns in the Asset Additions WebAdi
  • Additional attribute can be used to populate values directly thereby eliminating the need to override the defaults from the Asset Category
  • These new data fields will benefit data conversion by allowing the converted data to be brought into Oracle with the asset life information.

3New Automatic Preparation of Mass Additions

  • This new feature consists of default rules and Public APIs that can be used by customers to complete the preparation of mass addition lines automatically.
    • Auto populate required fields such as Expense Account, Asset Category etc.
    • Avoid manual intervention during the Mass Additions prepare process
    • Avoid customization and use public APIs to effect custom business logic.
  • Assets now uses Flexible Reporting using XML publisher
    • Major Asset Transaction reports have been modified to support XML publisher.
    • Users can modify or use new templates to view report output.

Those who are very new to Asset module must have question, What is maent by Default Rules.

  • Asset Category – this is derived from the asset cost clearing account, as long as there is a one to one relationship between the account and asset category. This process will only impact items in the ‘New’ and ‘On Hold’ queue names.
  • Expense Account – this is derived from the clearing account combination and overlaying the natural account segment with the value of the natural account segment of the depreciation expense defined in the asset category. If the program cannot derive an expense combination, the queue name is set to ‘On Hold’.

So what is meant for Consultant by this feature..please note

  • This should minimize the amount of manual efforts involved in the Prepare Mass Additions Process. Manual updating is still required some fields may not be populated but are required.
  • Asset Category – a one to one relationship between cost clearing account and asset category – this will expand the COA of many companies.
  • Expense Account – the expense combination is going to be derived from a BS account. Oracle will simply overlay the natural account segment, replacing the cost clearing account with the depreciation expense account leaving all other segment values alone. If there are certain requirements for P&L accounts versus BS accounts, I.e. cost center required for P&L, this may present issues.
  • Manual efforts are required to perform Merging, Splitting, Add to Assets, and Merge Then Split functionality.

4Flexiable Reporting into XML Publisher

These Thirteen asset reports have been converted in XML Publisher based report.

  • Create Accounting – Assets
  • Transfer Journal Entries to GL – Assets
  • Journal Entry Reserve ledger Report
  • Asset Additions Report
  • Asset Transfer Report
  • Asset Retirement Report
  • Transaction History Report
  • Asset Reclassification Report
  • Mass Additions Create Report
  • Mass Additions Posting Report
  • Cost Adjustment Report
  • Cost Detail report
  • Cost Summary Report
  • Reserve summary Report
  • Reserve Details Report
  • Mass Revaluation Preview Report
  • Revalution Reserve Details Report
  • Revalution Reserve Summary Report
  • CIP Capitaliization report
  • CIP Detail Report
  • CIP Summary Report

You can design and control how the report output will be presented in separate template files. Publish in PDF format that can support colors, images, font styles, headers and footers, and other formatting. You can create new report templates, or modify existing templates to view your report output.

5Automatic Depreciation Rollback

Depreciation is rolled back automatically by the system when any transaction is performed on an asset if the following conditions are met:

  • Depreciation has been processed in that period
  • The period is not closed

That mean, it is no longer required to run depreciation rollback program manually as we have seen in release 11i.

Depreciation rollback is executed only on select assets as required and not on the entire Asset Book this enhances performance of the program.

Since release 11i, users have been able to run depreciation for an asset book without closing the period. If additional adjustments are required in the current period, then the user submits a process to roll back depreciation for the entire book, performs the necessary adjustment(s) and then resubmits the depreciation program. In Release 12 the intermediate manual step of rolling back depreciation for the entire book in order to process further adjustments on selected assets is no longer necessary. As before users may submit depreciation for the entire book prior to closing the period. If it becomes necessary to process financial adjustments on one or more assets, the user may proceed with the transaction normally via the asset workbench or mass transactions.

Oracle Assets automatically rolls back the depreciation on just the selected assets (instead of the whole book) and allows the transaction(s) to be processed normally. The asset(s) for which depreciation was rolled back is automatically picked up during the next depreciation run or at the time that the depreciation period is finally closed.

6Enhanced functionality for Energy Industry

As per RCD , this can be understood as;

  • Energy Units of Production Method for Group Assets

In the oil & gas industry, asset properties may include fields, leases and wells. These assets are typically associated with units of production (UOP) and are depreciated using a special UOP depreciation method. ‘Energy’ assets are generally structured into two levels, group and member assets, where the group asset is a collection of several members.

  • Allow Production method for Group Assets
  • Allow Production upload to Group Assets
  • Energy Straight line Method

This feature is used in oil & gas industry ,where non-producing assets are depreciated using the energy straight-line method based on the asset’s net book value. Assets that depreciate using the energy straight-line method may either depreciate at the member asset level or group asset level.

A note on Straight-Line Depreciation – Assets that depreciation using energy straight-line method may either depreciate at the member asset level or group asset level.

  • When at the member level, depreciation is calculated based on each member’s life and then summarized up to the group asset.
  • When at the group level, depreciation is calculated at the group asset level, the life of the group asset is used.
  • Net Book Value / Remaining Life
  • Asset Impairment – this is basically an unplanned depreciation and will utilize this feature to perform asset impairments. Now the ‘impairment’ expense account may be derived from the asset category setup or manually entered.

Suggested Reference

  • Note:421352.1 :Release 12: Where is the Option for Rollback Depreciation?

Posted in Oracle Asset, R12, Release12 | 4 Comments »

R12 : Setting up for AP/AR Netting

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

AP/AR Netting automatically compares Payables to Receivables and creates the appropriate transaction in each system to net supplier invoices and customer invoices. With this functionality, A receivables user can

  • View netted receipt details directly from the receipt
  • Create Netting Agreements and Netting Batches

With this functionality, there is significant increase in user productivity and effectiveness because of tight integration and automation.

You can access the process via:

  • Navigation: Receipts > Netting > Netting Batch
  • Navigation: Receipts > Netting > Netting Agreement
  • Receipts > Receipts > Action Menu : AP/AR Netting
    After Querying a netted receipt, the user can see more details about the batch by selecting AP/AR Netting from the Action menu. This launches the AP/AR Netting batch window. Netted Receipts are created automatically by the AP/AR Netting process and cannot be updated by the user from the Receipts Workbench

As we have seen Contra charging has been replaced by AP/AR Netting, lets take a setup walk though to use this functionality.

1.Define netting control account

Setup>Financials>Flex field>key>values

2.Create bank

Setup>payment>Bank and Bank Branches

You should note ,Payment document is not required for netting bank account.

3.Go to receivables responsibility, receipt class definition form

Setup>Receipts>Receipt class

Query the 'AP/AR Netting' receipt class which is a seeded one.


4. Attach your bank account in this receipt class.

5.Go to system options, transaction and customer tabbed region, there enable 'Allow payment of Unrelated Transactions'check box


6. Create netting agreement

Receipts>Netting>Netting Agreement


7. Enter an Invoice in Payables, validate and run create accounting.

8. Enter a transaction in receivables.

9. Create Netting Batch

Receipts >Netting >Netting Batch


10. Query your netting batch and see the status as Complete. also click on view report icon on right on run push button, you can see the final netting report.

11.Go to view>request>find

You can see 3 concurrent request programs

  • Create Netting batch
  • Settle netting batch
  • Netting Data Extract

12.Now go to receipts and query the AP/AR netting receipt.

13.Now Go to Tools >view Accounting, you can see Netting control account (defined in first step a) debited and receivable account credited.

14. Now go to payables and query your invoice number and click the tab view payments. You can see the payment details and copy the document number.

15.Query your copied payment document number.What you can see the payment type as Netting .

16.Click actions button and enable the check box create accounting .

17.Go to tools>view accounting .You can see the accounting entry

Posted in Oracle Payable, Oracle Receivable, R12, Release12 | 10 Comments »

“Contra Charging” to “R12 AP/AR Netting”

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

  1. Customer ABC raise an order to your company and your have made shipment of goods they have requested and you have raised an invoice of X amount, that you are expecting the money should be paid by customer.
  2. Same time , you have some taken some services to the same customer which is a vendor in your Payable, and now you have liability to pay the amount Y, you received against PO.

What the business demand here is "Net off your supplier balance in AP (Payables) with customer balance in AR (Receivables)"

These kinds of business scenario always exist, specially if you are dealing with client whose line of business is either Airlines or Cargo or Healthcare domain. Such events are always there, therefore designing, configuring and identifying such need is foremost important step while implementing ERP.

What we seen after 11.5.9 , where similar kind of functionality Oracle has offered in term of "Contra Charging" which initially limited in European Localization and on and after 11.5.10, the same functionality have been standardize and incorporated in the product.

double-arrowContra Charging

Contra Charging allows you to select customer and suppliers through the screen and net their balances. This will submit two requests used to populate the Receivables and Payables Transaction Interface. This credit memos can then be imported through the standard invoice import in AR and AP.The base Functionality that currently exist in 11.5.10 are:

  • Use the Contra Charging window to physically match the customer to the supplier and allocate an amount for contra charging
  • Automatically populate the AR and AP Invoice Interface tables to create credit memos for the source Contra
  • Import the invoices
    • in AR with the Submit Invoice Import window, using the source Contra
    • in AP with the Auto Invoice Import Program on the Run Auto Invoice window, using the source Contra
  • Use the standard functionality to post the imported credit memos to Oracle General Ledger
  • Use the Contra Netting Report
    • to report on the netted contra charging transactions
    • to check that the contra charging has been carried out successfully in Oracle Receivables and Oracle Payables

double-arrowHow to make Contra Charging Feature enabled

Follow the below mentioned steps and you should be able to use the contra charging functionality.

1.Define document sequences, assign the document sequence to Contra document category.

  • You can assign a unique document sequence to each invoice and payment document in your Payables system so you have a unique identifier for each document.
  • A document category is a set of documents (invoices or payments) that share similar characteristics. You can assign a single document sequence to one or more document categories.
  • Use assignment window in System administrator responsibility to attach the document category with the document sequence created for contra charging invoices.

2. Setup Payables Contra Source.

A lookup is any predefined value that was not defined in a setup window.

3. Setup user profile for AP Responsibility, including the following:

  • Tax: Allow Override of Tax Code (Yes)
  • Tax: Allow Override of Customer Exemption (Yes)
  • Sequential Numbering (Partially Used)
  • JG: Contra - Include Future Dated Payment in Supplier Balance (Yes)

4.Define Document Category called 'Contra'.

5. Define Payables Lookup for 'Contra'.

A lookup is any predefined value that was not defined in a setup window. Use the Oracle Payables Lookups window to review and maintain sets of values, or lookups, that you use in Payables. Use the Oracle Payables Lookups window to create a new Payables lookup for contra charging.

This New Contra Lookup Code will be used as a source when the Contra Charging Credit memos are created.

6. Assign a 'Contra Charging' Menu to 'AP_NAVIGATE_GUI12' main menu,which tied to AP Responsibility.

To attach the Contra Charging Form to the Existing Payables Responsibility, attach JG_CONTRA_CHARGE_GUI Sub Menu to AP_NAVIGATE_GUI12 Main Menu.

Navigation Path: System Administrator responsibility: Application: Menu Form

7. Having created the new form 'Contra Charging', enter Contra Charging Transactions, then 'Submit Contra transaction.

double-arrow What's new in Release 12

When a trading partner is both a customer and a supplier, an agreement may be made to offset open receivables’ against open payables’ items. Netting Agreements add trading partner terms as well as deploying company controls. A selection program automatically pulls information from Oracle Receivables and Oracle Payables taking into consideration discounts, late fees, and withholding taxes prior to determining the final netting amount. A review process and trading partner approval afford further verification to support the netting event.

The matching of open receivables and open payables is automated. You are now able to determine whether you or your trading partner has a greater balance outstanding and update your books, collect payments or make payments accordingly.


AP/AR Netting provides for the ability to “collect” on your receivables balances with the amount owed for your purchases by offsetting one against the other.This will Reduce bank Charges , Fewer Transactions to Process and thus significant Cash flow Improvement.

double-arrowFrom 11i to R12

R12 Netting solution replaces 3 solutions(FV,JE,IGI) in 11i.

In R12 the Contra Charge functionality has been optimized and therefore changed into the AP/AR Netting functionality. In the Payables module as well as the Receivables module, there is a Netting submenu.

  • Payables: Payments -> Entry -> Netting
  • Receivables: Receipts -> Netting

Suggested Reading

  • Oracle Financials Common Country Features user guide.

Posted in Oracle Receivable, R12, Release12 | 5 Comments »

R12 : Sequence in GL made Legal Compliance Easy

Posted on January 17th, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

In R12, to cater the need for legal compliance some other counties like Asia, Latin America, and Europe ,two Journal Sequencing options have been provided. These are accounting and reporting sequence, in reality there is bit difference in these two terms.

double-arrowAccounting Sequence
This is sequence used in GL journals when posted in GL ,Sequence subledger journals when completed in Subledger Accounting.

What we have seen in Release 11i, we had document sequencing that sequentially numbered documents upon creation. Accounting Sequencing will automatically assign a sequence number to GL journal entries that are posted in GL. There's also an option to sequence subledger journals when they are completed in SLA Accounting.

double-arrowReporting Sequence
This sequence is used in GL Journals when you close a GL Period.Sequence sub ledger Journals when you complete the accounting in SLA .This is one of replacement of Accounting Engine (AX) legal sequencing and Italian Journal Book commonly known Libro Giornale.

These two Sequences can be assign mutually exclusive sequences based on:

  • Ledgers or Reporting Currencies
  • Journal sources
  • Journal categories
  • Balance types

double-arrowThe benefit of using these sequnces are summarized :

a) Legal Compliance made easy: The one biggest advantage of it will now addresses business requirements in many countries, such as Europe & Asia. Therefore its allows fiscal authorities to verify the completeness of a company's accounting records.

b)Flexibility get enhanced:With this it provides greater flexibility in choosing different journal sequencing options, as mention above, these can be based out of these different criteria, such as by ledgers, reporting currencies, journal sources, journal categories, and balance types.

c)No Localization Required: Somehow related to (a) discussed above, earlier it the local reporting need was catered by localization , which now is part of GL activity.

double-arrowWhere to Define the the sequence.

You can define the accounting sequence in the context of a ledger in Accounting Setup Manager.There is another way ie Accounting Sequencing menu function which we can create and manage our sequencing rules.



For Accounting Sequences which is internally a posting event, the GL journals are sequenced when they are posted in GL and Subledger journals are sequenced when completed in SLA. For Reporting Sequences (period close event), GL journals and subledger journals are sequenced when a GL period is closed.You can see both can be appear in the Journal screen as below.



Posted in Oracle General Ledger, R12, Release12 | 7 Comments »

Page 3 of 41234

« Previous Entries Next Entries »