How to create accounting and reporting sequence in oracle cloud

In our Previous post we have discussed in detail about accounting and reporting sequence in oracle cloud. In this post we will see how to configure the accounting and reporting sequence in oracle cloud in detail. 

Steps to configure/create accounting and reporting sequence in oracle

Below are the detailed steps on "How to configure/create accounting and reporting sequence in oracle cloud"

1. Navigate to setup and maintenance and search for the task - > Manage Accounting and reporting sequence

How to configure Accounting and reporting sequence in oracle cloud

2. Under the sequence tab click on the (+) icon to crate a new sequence

How to create / configure accounting and reporting sequence in oracle cloud

3. Enter the sequence name , description , sequence version name , start date and Initial number of the sequence. Click Save and close

4. Now Navigate to sequencing assignment and click on (+) Icon 

How to configure Accounting and reporting sequence in oracle

5. Select the ledger name , Journal entry , sequencing even , then under sequences select the sequence which you have created in the column "Name". click Save and close.

How to configure accounting and reporting sequence in oracle|| Steps to configure accounting and reporting sequence in oracle

What is Accounting and reporting sequence in oracle cloud

In this post we will see accounting and reporting sequence in detail in oracle cloud. We will also see the importance of accounting and reporting sequence in oracle cloud. Also we will we see the major differences between the accounting and reporting sequence in oracle cloud.

The accounting and reporting sequence in Oracle Cloud involves several steps, which are designed to ensure that financial transactions are accurately recorded and reported.

What is a sequence?

A sequence is a unique number generated by the system and assigned to an application transaction, which is used to uniquely identify the transaction in the system.

For example each transaction in the system in general ledger is assigned a unique sequence in ascending order, a missing number in the sequence would probably denotes that the journal is deleted and raises a flag for auditors.

What is accounting and reporting sequence in oracle cloud?

What is Accounting sequence ?

Accounting sequence is assigned to a GL journal once the journals are posted and is assigned to a subledger transaction / journals once they complete accounting.

What is Reporting sequence? 

Reporting sequence is assigned to a GL journal or a subledger journal transaction once we perform the period closure. Once we close the period in general ledger , the system it self triggers a child program "Create reporting sequence" and assigns reporting sequence to the journals. 

What is journal entry type and sequencing event in accounting and reporting sequence?

1) Journal entry type : General ledger 

    Sequencing event : Posting 

    This combination will create the accounting sequence for the general ledger journals.

2) Journal entry type : General ledger 

    Sequencing event : Period Close

    This combination will create the reporting sequence for the general ledger journals.

3) Journal entry type : Subledger

    Sequencing event : Subledger Accounting

    This combination will create the accounting sequence for the subledger journals.

2) Journal entry type : Subledger 

    Sequencing event : Period Close

    This combination will create the reporting sequence for the subledger journals.

Overall, the accounting and reporting sequence in Oracle Cloud is designed to provide a structured and standardized way to record and report financial transactions. By following this sequence, organizations can ensure that their financial data is accurate, reliable, and easily accessible for decision-making purposes.

In our next post we will see the configuration of accounting and reporting sequence in oracle cloud.

Accounting and reporting sequence in oracle cloud || what is accounting and reporting sequence in oracle cloud || difference between accounting and reporting sequence in oracle cloud

What is Cross validation (CVR) rules in Oracle Cloud

Let is first understand what is cross validation rules, then we will see how we configure cross validation rules in oracle cloud.

Before we start let's just understand what is cross validation (CVR) rule in oracle cloud.

What is cross validation (CVR) rules

Let us understand what is cross validation (CVR) rule in general. In day to day business scenario there are cases where we want to restrict certain combinations to be generated into to the system as those are not valid/legal combinations. In those cases we want to put some restrictions on the users so that whenever someone enter a transaction against those combinations system will throw an error. Cross validation rules (CVR) provide such facility in oracle cloud and using this we can achieve these business requirements.

NOTE : There are two very important parameters in cross validation (CVR) rule definition. Let us see how to define value in condition and validation filters.

Let's take an example 

Case 1 : 01 cost centre is valid with legal entity 01 

Case 2 : 01 legal entity is valid with 01 cost centre

 

The above two statements seems similar but are totally different and based on such statements the cross validation (CVR) rules definition may change

Case 1 - 01 cost center is valid with legal entity 01. 

Now whenever you enter a code, system will check the cost centre, if the cost centre is 01 system will put a validation that legal entity used must be 01 only. If there is any other legal entity used, system will throw an error message. Means if LE 01 is coming with 02 cost centre system will not put any validation and will pass the code. So here we saw that this cross validation rule will focus on cost centre. So cost centre will serve as condition for cross validation rule definition.

Case 2 - 01 legal entity is valid with 01 cost centre

Now whenever you enter a code, system will check the legal entity, if the legal entity is 01 system will put a validation that cost centre used must be 01 only. If there is any other cost centre used, system will throw an error message. Means if the LE 01 is coming with any other cost centre system will throw an error message. So here we saw that the cross validation rule focus is on legal entity so legal entity will serve as condition for cross validation rule definition.. 

How to define/configure cross validation (CVR) rule in oracle cloud

Below are the detailed steps on " how to define/configure cross validation (CVR) rules in oracle cloud".

Step 1 : Go to setup and maintenance and select "Manage Cross validation rules"

Cross validation rules in oracle Cloud

Step 2 : Manage cross validation rules page will open up. Select the chart of account from the LOV and then click on the "+" Icon to create new rule.

Cross validation rules in oracle Cloud

Step 3 : Give any valid name in the name section and give a brief description of the cross validation (CVR) rule which you are defining. Enter the values in condition filter.

Step 4 : Enter the values in the validation filter. Enter the error message which you want to display if any wrong combination is entered and violating this CVR. Also enable the cross validation rule and save and close.

Cross validation rules in oracle Cloud

Note : Once you have created any cross validation ( CVR ) rule in the system, system starts putting validation on all the new combinations and restricts all invalid combinations, but if there are combinations which are violating the cross validation rule you have created and are created in the system before you defined the CVR system will not put any restrictions on them. You still will be able to create those combinations. 

In order to restrict all the combination even though those are created before your CVR definition, you need to run an ESS job " Cross Validation Violation Rule ". This ESS job validates all the combinations which are created in system already and shows you the combinations which violates your cross validation CVR rule. It allows you to disable all those combinations hence restrict their creation in future as well.

what is cross validation rules in oracle cloud | Cross validation rules in oracle cloud | How to define/configure cross validation rules in oracle cloud

What is Cross Validation Rule (CVR) In Oracle Cloud

What is cross validation rules (CVR) in oracle cloud general ledger

In this post we will see the concept cross validation rules (CVR) in oracle cloud general ledger.

What is Cross Validation rules (CVR)

Let us understand what is cross validation rule (CVR) in general. In day to day business scenario there are cases where we want to restrict certain combinations to be generated into to the system as those are not valid/legal combinations. In those cases we want to put some restrictions on the users so that whenever someone enter a transaction against those combinations system will throw an error. This functionality can be achieved via cross validation rules (CVR) in oracle cloud.

Let us understand cross validation rules (CVR) with an business example to make things clear

Lets say there is a organization HSRoracentre which has business in multiple countries, lets suppose in UK and US.

There are three segments in the chart of accounts i.e. Company , Account and Cost Centre

Company segment has following values 

01- HSRoracentre US

02 -HSRoracentre UK

Accounts segment has following values 

01-Cash

02-Liability 

03-Revenue and so on

Cost Centre segment has following values 

01- Admin US

02- Admin UK 

03- IT global

04- HR global

Now there is case where the organization HSRoracentre wants that cost Centre Admin US is Valid with US Company and Admin UK is Valid with UK company. for example

Combination     01.02.01 - Is valid

                          01.02.02 - Is Invalid

Similarly           02.02.01 - Is invalid

                          02.02.02 - Is valid

How to achieve this type of security in system in oracle cloud

In order to achieve the above security in system we will have to configure the cross validation rules (CVR) in oracle cloud. These cross validation rules put restrictions on the users to enter any invalid combination by displaying an error message as well.

So with the above example we have seen how we can restrict certain invalid combination to be created into the system by configuring cross validation rules (CVR) in oracle cloud. The above case was just an example there can be more complex requirements and scenarios where this type of security can be placed via cross validation rules (CVR).

In our next post we will see how to configure cross validation rules (CVR) in oracle cloud in detail.

What is cross validation rules ||What is CVR|| Cross validation rules in oracle cloud

What is Chart of account structure instance in oracle cloud?

What is chart of account structure instance in oracle cloud?

In this blog we will see what is chat of structure instance in oracle cloud and what is the importance of chart of account structure instance in oracle. We will also see scenario when we create multiple chart of account structure instances.

What is chart of account (COA) Structure in oracle cloud?

Defining chart of account (COA) structure in oracle cloud is one of the very important steps for any organization. Chart of account (COA) is used to record the transaction in a ledger for a company. In chart of account you define different segments for the business , segments can be referred as different dimensions of the business.

The Chart of Accounts (COA) structure in oracle cloud is a framework used to organize and categorize financial transactions and accounts within an organization. The COA is a key element in the Oracle Financials system and is used to classify and report financial information, such as revenues, expenses, assets, and liabilities.

The chart of account COA structure in oracle cloud is typically based on a hierarchical model, with each account represented by a unique account code or number. The account codes are organized into segments, which correspond to different levels of the hierarchy. For example, a typical chart of account COA structure in Oracle might consist of segments for Company, Division, Department, Account, and Sub-Account.

What is chart of account structure instance (COA instance) in oracle cloud?

Previously there was no concept of chart of account structure instance in oracle E- business suite but with the development of oracle cloud we have this new functionality known as chart of account structure instance (COA).

With this new chart of structure instance in oracle cloud we can create multiple instances of a single char of account COA structure as per our requirement.

In Oracle, a Chart of Accounts (COA) instance is a specific implementation of the chart of accounts COA structure that is tailored to the needs of a particular organization. The chart of account structure instance defines the specific account codes, segments, and values that are used to classify and report financial transactions within the organization.

A chart of accounts structure COA instance in Oracle cloud is typically created as part of the implementation process for the Oracle Financials system. During this process, the COA structure is customized to meet the specific needs of the organization, and a chart of accounts structure COA instance is created that reflects this customization.

Let us understand Chart of account structure instance (COA instance with an example)

Let us assume we have a organization ATC limited which operates in UK and US

Both the UK and US entities follows the same chart of account structure (COA) the only difference is that UK has a completely different set of accounts for its accounting.

In the above scenario, there will be two ledger's 

ATC UK limited

ATC US limited

So as per the case we will define the chart of account structure only once as both entities follows same structure but as UK has different set of accounts wo we will define a chart of account structure instance which is copy of the parent chart of account structure and just will change the account segment value set. 

So the key point here is chart of account structure instance in oracle cloud keeps all the identities of parent structure simultaneously it allows you to change the value sets attached to the particular segments which makes if more flexible to adjust the requirement.

Chart of account structure (COA) structure || what is chart of account structure instance || What is chart of account structure instance || COA structure instance

 Overview of Value sets in Oracle Cloud

In this post we will see the complete overview of value sets in oracle cloud and all of its properties

What is value sets in oracle could

First of all let us understand what is a value set. In easy words we can say a value set is a container which stores values based on some validations. You can use these value sets in your key flex filed segments ,  descriptive flex flied segments , for reports etc.

In Oracle Cloud, a value set is a predefined list of values that is used to define the allowable values for a particular attribute in an application. A value set is essentially a set of validation rules that ensures that the values entered for a particular attribute conform to a specific format or range.

Value sets can be used across multiple applications in Oracle Cloud, and they can be shared by different users and roles within the same application. Value sets are designed to help ensure data accuracy and consistency, which can help improve the quality of data and reduce errors in applications.

Setups to create value sets in oracle cloud

So far we have understood what is a value set in oracle cloud. In order to create a value set you need to go to oracle cloud application and choose ‘Manage Value Sets’ Task under ‘Setup and Maintenance’.

Navigator->Setup and Maintenance->Manage Value Sets

Click on the '+' icon below page will open up

What is Value sets in Oracle Cloud

Value Set Code :    Enter the name of the value set.

Description      :     Enter the description of the value set.

Module            :     Select the appropriate module for which this module is going to be used.

Validation Type:   This Parameter is important and decides what type of validation to be put on this value set. Following values are available in Validation type.

                             

Independent : An independent value set is a predefined list of values that is not dependent on any other value set or attribute. This type of value set is typically used for simple attributes with a limited number of allowable values.

Dependent   : A dependent value set is a predefined list of values that is dependent on another value set or attribute. This type of value set is typically used for more complex attributes that require a hierarchical or multi-level set of values. For example you created a value set City which depends on another value set State. So this this case based on the values of value set State values in the Value set City are available to choose.

Table           :  A table-validated value set is a predefined list of values that is based on a table in the Oracle Cloud database. This type of value set is typically used for attributes that require a large number of allowable values or for attributes that need to be updated frequently.

Subset        : Subset value set validation type is used when you want subset of values of an independent value set.

Format Only:  Format only value set is used when you want end user to enter the values for this value set.  

Value Data Type : This filed is used to define the validation on the values which will be stored in the  value set. Following are the List of values available for selection.

Character     : If you select character , then you need to define , Value sub type whether values are Text , Numeric or alphanumeric

Number       : If you select Number , you need to define the precision and scale for the numbers.

Date            : Select if you want to store date only without time.

Date and time: Select If you want to store date with time stamp

After providing all the information click save and close.

Overview of value sets in oracle cloud | Value sets in oracle cloud | Value set setup in oracle cloud | What is value set in oracle cloud

 General ledger setups in sequence in oracle cloud

Oracle cloud general ledger setups in sequence

In this post we will see the oracle cloud general ledger setups task in sequence. All the necessary setups in order to run the general ledger module in oracle cloud. With the help of these sequential setups we can easily run the general ledger module of oracle cloud.

Below are the oracle cloud general ledger setups in sequence to be done to make the GL module functional

Note : Apart from these there are many other setups which can be done in GL module as per the client specific requirements, but I have just tried to highlight the basic setups to be done in order to make general ledger module functional.

General ledger setups in sequence in oracle cloud

Sequence Number                                              Setups to be done

1                                                                     Create Accounting Calendar

2                                                                     Create Currencies ( If required )

3                                                                     Create Accounting method (if required )

4                                                                     Create Value sets

5                                                                     Create Chart of Accounts (COA)

6                                                                     Create Chart of accounts structure 

7                                                                     Create COA segments and assign sequence                                                                              and value sets to segments

8                                                                      Create COA structure instance and Deploy                                                                              Accounting Flexfield

9                                                                     Create value set values

10                                                                     Create Legal Address

11                                                                     Create Legal Entity

12                                                                     Create Primary Ledger

13                                                                     Specify Ledger Options for primary ledgers

14                                                                     Assign Legal Entity to Primary Ledger

15                                                                     Assign Balancing Segment Values to Legal                                                                                Entity

16                                                                     Review and submit Accounting                                                                                                Configuration

17                                                                     Assign GL Roles to User

18                                                                     Assign Data Access Set to GL roles

19                                                                     Open General ledger Periods

20                                                                     Create Journal and Post

Additional setups which can also be done in GL as per requirements

21                                                                     Cross Validation Rules for security

22                                                                     Security Rules for restrictions

23                                                                     Create Ledger Set for security and reporting                                                                              purposes 

24                                                                     Creation of Reporting Ledger for reporting                                                                              currency  requirements

25                                                                     Creation of Secondary Ledger for statutory                                                                               requirements

26                                                                     Auto Posting for subledger journals                                                                                         autoposting

27                                                                     Auto Reversal ( if required )

28                                                                     Create Budget ( for control )

29                                                                     Journal Approval (for control )

Oracle cloud general ledger setups in sequence || general ledger setups in sequence || Oracle cloud general ledger setups

How to search payable Invoice Journal in oracle general Ledger

How to search a payable Invoice Journal entry in oracle general ledger

In this post we will see how to search a payable Invoice journal entry in general ledger for a specific AP invoice.

For this let us assume we have a invoice in AP which is accounted and posted to general ledger.

Steps on how to find/search the payable invoice journal entry in oracle

There are two ways to search the invoice journal entry in general ledger

1st

In the AP module, on invoice we can see the accounting entry and the journal batch name and query that batch in general ledger directly.

2nd

You query the with Payables journal source for a specific period in general ledger.

Let us see the both ways to find the payable invoice journal entry in oracle general ledger

Method 1;

1. Open the invoice in AP module 

    Search for the invoice for which you want to see the accounting 

How to search payable Invoice Journal in Oracle GL

2. Open the invoice and click on Validated>Accounting, you can see the accounting entry of the       invoice. click on the side arrow of any of the line and note down the journal batch and journal name.

How to find payable Invoice Journal in Oracle GL

3. Open general ledger and navigate to search journal page 

    Search for the particular journal obtained in the step 2

    you can the the journal entry for the invoice in GL

How to search payable Invoice Journal in Oracle

2nd way to see the invoice journal entry in oracle

1. Open general ledger and navigate to search journal page 

    In the search criteria 

    Under period : enter the period for which you want to see the invoice journals

    Under Source : select Payables

    Under Category : Select Purchase Invoices 

    click on search 

    You will see all the invoice journal entries for that particular period.

How to find the payable journal in oracle general ledger|| How to search payable journal entry in oracle general ledger

How to assign job roles in oracle cloud

How to assign job roles in oracle cloud

In this post we will see how to assign job roles to users in oracle cloud application.

With the introduction of oracle's new cloud technology oracle has also introduced a new concept of job roles, which are very important part of application security controls. In oracle to access application ( specific module of a task/function) we need to have specific job roles assigned to our users, unless those job roles are not assigned we will not be able to perform any task in the system. Today in this post we will see in detail how we assign job roles to users in oracle cloud.

Below are the detailed steps on how to assign job roles in oracle cloud 

Step 1  : Login to the cloud application. Navigator-> Security console

                                                              How to assign Job roles in oracle cloud or fusion

Step 2 : Click on Users sub menu. Enter the user name and click on search Icon. 

              User will appear in search results. Click on the user name to open it’s details

How to assign job roles to users in oracle cloud

Step 3: Click on Edit Button

How to assign job roles to users in oracle cloud

 

Step 4: Click on Add role.

How to assign job roles in oracle cloud

Step 5 : Now enter the desired role name and role will appear in the search result.  Select that particular role and click on add role. Click on Done

Job Roles in oracle cloud

Step 6 : Click on Save and close

                                                                             How to assign Job roles in oracle cloud

How to assign job roles in oracle cloud|| How to assign roles in cloud

How to setup delegation or vacation rules in oracle

How to setup or create delegation or Vacation rules in oracle cloud 

Here in this post we will see how to setup or create delegation or Vacation rules in oracle cloud.

First let us understand why we need to delegate approval or setup vacation rules in oracle. There are situations when we are on vacation or out of office and do not have access to application or system to approve the Invoices/Journals/order/budget etc. In such cases we can delegate, re-assign approval in oracle on our behalf to someone else for that time period so that there is no delay and business runs smoothly.

 

For the above requirement we have feature available in oracle cloud known as Vacation rule setup.

Let us see how we setup/create delegation or vacation rules in oracle cloud.

Steps to setup/create delegation or Vacation rules in oracle cloud.

Below are the detailed steps given on how to setup delegation or vacation rule in oracle cloud. You can easily follow the steps and setup delegation or vacation rules in oracle.

 

Step 1 : Login to Oracle Cloud. On the home page click on the bell Icon and Click More details

                              

Step 2 : On the right hand side top corner under your user name select > Preferences

How to setup/create delegation or vacation rules in oracle/fusion

Step 3 : Delegation or Vacation Rules setup window will open up in oracle cloud

               Select the check box Enable Vacation Period

               Enter start and end date (dates between which you want to delegate or reassign the approval)

               Under re-assign or delegate select the user email Id  to whom you want to delegate or reassign  the approval on your behalf.

 

 

How to setup/create delegation or vacation rules in oracle/fusion

How to setup vacation rules in oracle cloud ||How to setup delegation rules in oracle cloud | How to setup vacation rules in oracle fusion || How to setup delegation rules in oracle fusion