GL Questions

[gvnaresh84]

Hi,

I have few questions, which you can say they are primary. So, please give me answer so I can understand GL better.

1. If we want two set of books like one is for functional and other one is for reporting. How we accomplish this?

As per my knowledge, Creating 2 set of books and assign them to responsibility is fine?

When we create one journal entry, will have 1 record each in GL_INTERFACE table and GL_BALANCES for each set of book?


2. Where to define Journal Source & Journal Category? From which table Source name come TO GL_INTERFACE_TABLE.JE_SOURCE.NAME?

3. What is Summary account and Detail account.

4. Whats is actual batches, budget batches, and encumbrance bathces? Please give brief explanation.

5. In Reversing Journal, we are able to reverse the posted and unposted Journal.

Now, if the Journal is posted-> and if we want to reverse it, so after reversal we have to post that reversal journal?

and if the Journal is not posted-> and if we reverse it, we need to post it or not?

6. What is Avg and Period end exchange rates?

Thanks in Advance,

Naresh

[anu_uma]

Hi,

To your question on defining the Journal Sources and Categories
Navigation to define Journal Sources

Setup > Journal > Sources

Journal entry sources indicate where your journal entries originate.
General Ledger supplies a list of predefined journal sources for journal entries that originate in the sub ledgers in the applications, such as Payables, receivables or Assets .

With Journal Sources, we can

Define intercompany and suspense accounts for specific sources.
Run the AutoPost program for specific sources.
Import journals by source.
Reports based on Journal Sources.


Navigation to Define Journal Categories
Setup > Journal > Categories

Journal categories help you differentiate journal entries by purpose or type, such as accrual, payments, or receipts. When you create journal entries, you must choose the default or specify a category.

As like Journal Sources, Journal Categories also helps us to find the account details for a specific categories.

[anu_uma]

Hi,
I have not given the details of the Tables that are being used in Journal Sources and Journal Categories

GL_JE_SOURCES and GL_JE_CATEGORIES are the tables that are used.

[anu_uma]

Hi,

Answer to your Question 3.

3. What is Summary account and Detail account.

A Summary Account is an account whose balance is the sum of balances from multiple detail accounts and Summary accounts enable quick online inquiries of account groupings.

<b>Summary Accounts:</b>
Updated when journals are posted to a corresponding detail account
Enable online summary inquiries
Speed concurrent processing

<b>Detail Accounts:</b>
Allow direct posting of business transactions and journals

I hope my answers helps you.

[anu_uma]

1. If we want two set of books like one is for functional and other one is for reporting. How we accomplish this?

As per my knowledge, Creating 2 set of books and assign them to responsibility is fine?

When we create one journal entry, will have 1 record each in GL_INTERFACE table and GL_BALANCES for each set of book?

<b>Conversion </b>refers to foreign currency transactions that are immediately converted at the time of entry to the functional currency of the set of books in which the transaction takes place.

<b><b>Revaluation </b></b>adjusts asset or liability accounts that may be materially understated or overstated at the end of a period due to a significant fluctuation in the exchange rate between the time the transaction was entered and the end of the period.

<b>Translation </b>restates an entire set of books or balances for a company from the functional currency to a foreign currency.

[gvnaresh84]

Thanks Anu.

Can you answer the Question NO. 6?

[anu_uma]

<font color="blue">Hi,

Answer for your 6th Question

Translation uses either period-end rates or period average rates as a rule for Revenue, Expense or Liability accounts.


Period-Average Rate ? Used to translate income statement accounts.

Period-End Rate ? Used to translate balance sheet accounts.
Revaluation Rate:

General Ledger enters the inverse of the period-end rate as the revaluation rate.

Revaluations are performed on accounts that have foreign currency balances at the end of the period to properly.


Regards,</font id="blue">

[clickrudra]

Anu please correct me, i am novice in this field,

I think that there is no need to have two SOB, instead we can go for MRC option, this is also used for reporting purpose..

One benefit of this will be all the entries will be automatically transfered to MRC SOB.

[ramesh040671]

HI,

Just to add in Anu's answer in Translation,

Income statement accounts balances transalate on PTD or YTD basis but for balance sheet account balances need to be calculated on YTD basis.

Regards,
Ramesh

[ramkic]

Hi,
Answer to your question:
Q)When we create one journal entry, will have 1 record each in GL_INTERFACE table and GL_BALANCES for each set of book?

A)When you create a manual Journal entry GL_JE_BATCHES, GL_JE_HEADERS, GL_JE_LINES tables will be pouplated.
GL_INTERFACE will be used for transferring Sub-Ledger transactions (AP, AR etc..) and third party transactions.
GL_BALANCES table will get efffect when you post a journal.

Hope this will help
ramkic