What is ledger?
A ledger is a book or computer file for recording
economic transactions in terms of monetary unit with debits and credits and
a beginning monetary balance and ending monetary balance.
GL_ENTITY_BUILDER
Create OU
Check if OU is already
Created (HR_OPERATING_UNITS)
Check if location is
available (HR_LOCATIONS_ALL)
Check availability of
set of books (GL_LEDGERS)
Check availability of
legal entity (XLE_ENTITY_PROFILES)
Get business group id (PER_BUSINESS_GROUPS)
Create OU
HR_ORGANIZATION_API.CREATE_OPERATING_UNIT
Create location
check availability of
location code (HR_LOCATIONS)
check if business
group is available (PER_BUSINESS_GROUPS)
check availability of designated
receiver (PER_ALL_PEOPLE_F)
Check availability of
inventory org (HR_ALL_ORGANIZATION_UNITS, HR_ORGANIZATION_INFORMATION)
Check availability of
operating unit (HR_OPERATING_UNITS)
Create location
HR_LOCATION_API.CREATE_LOCATION
(
HR_LOCATION_API.ENABLE_LOCATION_LEGAL_ADR
(
Create ledger
legal entity (XLE_ENTITY_PROFILES)
Chart of Accounts
(FND_ID_FLEX_STRUCTURES_VL)
Accounting Method
(XLA_ACCTG_METHODS_FVL)
Retained Earning
Account (GL_CODE_COMBINATION_KFV)
Suspense Account
(GL_CODE_COMBINATIONS_KFV)
Entered Currency
Balancing Account (GL_CODE_COMBINATIONS_KFV)
Rounding Differences
Tracking Account (GL_CODE_COMBINATIONS_KFV)
Cumulative Translation
Adjustment Account (GL_CODE_COMBINATIONS_KFV)
GL_LEDGERS_PKG.INSERT_ROW
X_LEDGER_CATEGORY_CODE
=> 'PRIMARY'
Create ledger set
Ledger set is a
collection of ledgers having same chart of accounts and calendar. It is used to
access data of multiple ledgers from a single responsibility.
Duplicate of ledger
set (GL_LEDGERS)
Chart of accounts
(FND_ID_FLEX_STRUCTURES)
Calendar
(GL_PERIOD_SETS)
Period type
(GL_PERIOD_TYPES)
Default ledger
(GL_LEDGERS)
GL_LEDGERS_PKG.INSERT_SET
GL_LEDGERS_SET_NORM_ASSIGN_PKG.INSERT_ROW
Create legal entity
Legal entity is a
business entity or company that can enter into contracts, own assets, bank
accounts, pay debts, file returns, comply with legal requirements etc.
Direct insert into
XLE_ENTITY_PROFILES
Create reporting
ledger
Create secondary
ledger
Create je sources
Create je categories
Subledger Accounting
4C’s:
Chart of Accounts
(Accounting Flexfield Structure)
Currency
Calendar
Accounting Convention
(Not in Set of books)
What is Chart of Accounts and why is it used?
Chart of Accounts is
the accounting structure the organization uses to record transactions and
maintain financial account balances.
Purpose of COA is to
segregate expenditures, revenue, assets, liabilities and owner’s equity.
Tables:
GL:
OU HR_OPERATING_UNITS
Location HR_LOCATIONS_ALL
Ledger GL_LEDGERS, Ledger category code PRIMARY
Legal entity XLE_ENTITY_PROFILES
Reporting ledger GL_LEDGERS, ledger category code
ALC
Secondary ledger GL_LEDGERS, ledger category code
SECONDARY
AP:
Financial Options FINANCIAL_SYSTEM_PARAMS_ALL
Payable Options AP_SYSTEM_PARAMETERS_ALL
AR:
Batch sources RA_BATCH_SOURCES_ALL
System options AR_SYSTEM_PARAMETERS_ALL
Auto Accounting RA_CUST_TRX_LINE_GL_DIST_ALL
Transaction type RA_CUST_TRX_TYPES_ALL
Receivable Activities AR_RECEIVABLES_TRX_ALL
PO:
PO Option PO_SYSTEM_PARAMETERS_ALL
Receiving Option RCV_PARAMETERS
Document Types PO_DOCUMENT_TYPES_ALL_B
Expense Accounting Rules PO_RULE_EXPENSE_ACCOUNTS
FA:
Depreciation periods FA_DEPRN_PERIODS
Depreciation about assets FA_DEPRN_SUMMARY
Assets FA_ADDITIONS_B
Assets to calculate depreciation FA_BOOKS
Asset categories FA_CATEGORIES_B
FND_ID_FLEX_SEGMENTS Which
column in table is used for each segment
Depreciation amount and details FA_DEPRN_DETAIL
Credit memo
to Decrease and Debit memo to Increase our receivable.
DEBIT MEMO In
AR , Debit memo is issued to a customer to increase his liability. For
example , if the customer was not charged with freight charges and we need to
add them to his liability, as we can’t prepare one more invoice for the freight
charges. We prepare a debit memo.
Debit memo information is stored in RA_CUSTOMER_TRX_ALL, the type of transaction a particular row represents can be found out from the field class of AR_PAYMENT_SCHEDULES_ALL by linking the CUSTOMER_TRX_ID field in the two tables.
Debit memo is usually not linked to any other Invoice like credit memos; the whole idea behind creating a debit memo is to increase the customer outstanding balance.
CREDIT MEMO Credit memo is issued when the customer is over invoiced, that customer’s charged more than what customer should have been charged. Credit Memos with negative amount are typically used for crediting the customer’s account with some balance. Credit memo information is also stored in RA_CUSTOMER_TRX_ALL
Credit memo can be created in two different ways; the idea behind creating a credit memo is to reduce the customer invoice balance.
Debit memo information is stored in RA_CUSTOMER_TRX_ALL, the type of transaction a particular row represents can be found out from the field class of AR_PAYMENT_SCHEDULES_ALL by linking the CUSTOMER_TRX_ID field in the two tables.
Debit memo is usually not linked to any other Invoice like credit memos; the whole idea behind creating a debit memo is to increase the customer outstanding balance.
CREDIT MEMO Credit memo is issued when the customer is over invoiced, that customer’s charged more than what customer should have been charged. Credit Memos with negative amount are typically used for crediting the customer’s account with some balance. Credit memo information is also stored in RA_CUSTOMER_TRX_ALL
Credit memo can be created in two different ways; the idea behind creating a credit memo is to reduce the customer invoice balance.
Example of scenario in which a Credit Memo is created
Say you have created an invoice of $5000 for a customer ABC and have sent it across. Later upon receiving the goods, customer realized one of them worth $1000 is defective and had to return it. We have already issued an invoice of $5000 but now we are supposed to charge them only $4000 because of the refund of $1000 for the defective piece. In such a situation, we create a credit memo of $1000 and apply to the invoice of $5000 to bring down its balance to $4000. We again send the credit Memo note to the customer to let them know that they have to pay us only $4000.
Say you have created an invoice of $5000 for a customer ABC and have sent it across. Later upon receiving the goods, customer realized one of them worth $1000 is defective and had to return it. We have already issued an invoice of $5000 but now we are supposed to charge them only $4000 because of the refund of $1000 for the defective piece. In such a situation, we create a credit memo of $1000 and apply to the invoice of $5000 to bring down its balance to $4000. We again send the credit Memo note to the customer to let them know that they have to pay us only $4000.
Credit
Memo can be created in two ways
1.
Manually creating a credit memo like any other AR manual invoice.
- Invoice Class: Credit Memo
- Invoice Type: OM Credit Memo, Credit Memo
2.
Querying an existing AR Invoice and calling the Credit function from Actions
menu
Query the AR Invoice for which you want to create a credit memo
Query the AR Invoice for which you want to create a credit memo
- Click on “Actions menu”
- Specify the “Reason for Credit Memo”
- Enter the Line % for Credit memo (Eg: 25% entered)
- Enter the Tax % for Credit memo (Eg: 10% entered)
- Click the Save button
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