ORACLE FUSION and SCM FINANCIALS:
MODULES -> General Ledger
Accounts Payables
Accounts Receivables
fixed Assets
Cash Managment
->
Inventory
Cost Management
procurement (Purchasing)
order Management
product management
logistics
Manufacturing
Finnacials Business Cycles and processes:
-> Financial Management (Process)
-> Financial Reporting and Analytics (Process)
-> Budgetary Controls (Process)
-> Billing to Collections (Business Cycle)
-> Invoice to pay ( Business Cycle)
-> Asset life Cycle Management (Business Cycle)
-> Cash Management (Process)
-> Travel and Expense Management (Process)
GL : Oracle General ledger is a module which stores the balances and details
journals of all natural accounts.
-> It is mainly used for the Financials Reporting like Financial Statements (
BS , IS and CF )
-> All the summarised balances are stored in the two places ( gl_balances
table with multi currency and multi calender plus multi dimensional essbase cube)
-> finacnails statement will be generated based on the multi dimensional
essbase cube.
Concept of Natural Accounts : it is a convention of an account against which
balances are maintained blances are maintained in two ways either credit balances
or debit balances against a company(legal entity).
types of Natural Accounts : there are five (5) types of Natural Account.
-->1) Asset
-->2) Liability
-->3) Equity
-->4) Revenue
-->5) Expense
In Accouting world by default each type represnets them selves as debit
or credit balance.
--> Asset types of Account always debit balance ( means by debit their
balances are increasing and by credit their balanaces are decreasing)
--> Liability types of Account always credit balances ( means by credit
their balances are increasing and by debit their balances are decreasing)
--> Equity types of Account always credit balances ( means by credit
their balances are increasing and by debit their balances are decreasing)
--> Revenue types of Account always credit balances ( means by credit
their balances are increasing and by debit their balances are decreasing)
--> expense types of Account always debit balances ( means by debit
their balances are increasing and by credit their balances are decreasing)
--> Accounting method
-> cash based accounting method ( direct hitting the cash)
-> accrual based accounting method ( based on payment tersm accrual
carry forward till get the cash)
--> mostly company used accrual base accounting method.
--> companies are of three types -> propereitership (soley owned company
and incase of bankruptcy can be taking owners all personal asset to payoff all
liabilities)
-> partnership
(owned by partnership and incase of bacnkruptcy can be taking partners personal
asset to payoff all liabilities)
-> corporation ( in
coporation company is seperate entity and stake (share) holders will be separate
entity who invest money as equity in the company)
--> most of the companies now a days are corporate type of company that's why
equity role will play a vital role.
--> accounitng method is of dual entry in the ledger or accounitng book
where total debit is always equal to total credit , that is
negation of total debit and total credit should 0 which represnets that
every entry will have minimum of two lines one with debit
side and another with credit side.
Ledger (accounting book) :
--> Ledger is like a bucket where are all the business financial
accounting final entries are dumped.
--> financials entries is called as journal entries in ledger
language (accounting language) : what ever the dual line entry made in
the ledger (accounting book ) is known as Journal (or)
Journal entry (or) Journal Voucher.
--> Each Journal voucher will have minimum of two lines one is
debit line and other is credit line
eg: expense dr 100
bank cr
100
(total dr) 100 =
(total cr) 100
--> How Journals are balanced : Journal should always balanced
by atleast one.
eg: Company A expense dr 100
Company A bank cr
100
(total company A dr ) =
(total company A cr)
abive eg., shows that Company A is like
balacing element betwee dr and cr.
so all the journals entries in the ledger should balance by
balancing element.
