General Ledger (FGL) User Manual

General Ledger (FGL) User Manual
Oracle FLEXCUBE General Ledger User Guide
Oracle FLEXCUBE Universal Banking
Release 12.0.2.0.0
Part No. E49740-01
September 2013
Oracle FLEXCUBE General Ledger User Guide
September 2013
Oracle Financial Services Software Limited
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Contents
1.
Preface ...................................................................................................... 1-1
1.1
1.2
1.3
1.4
1.5
1.6
2.
Introduction.............................................................................................................. 4-1
Setting up the Chart of Accounts ........................................................... 5-1
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
6.
Introduction.............................................................................................................. 3-1
Maintaining Bank Parameters ................................................................................. 3-1
Maintaining General Ledger Parameters ............................................... 4-1
4.1
5.
Introduction.............................................................................................................. 2-1
Features of Oracle FLEXCUBE General Ledger..................................................... 2-1
Maintaining Bank Level Parameters ...................................................... 3-1
3.1
3.2
4.
1-1
1-1
1-1
1-1
1-2
1-2
Oracle FLEXCUBE General Ledger - An Overview ............................... 2-1
2.1
2.2
3.
Introduction..............................................................................................................
Audience..................................................................................................................
Documentation Accessibility....................................................................................
Organization ............................................................................................................
Related Documents .................................................................................................
Glossary of Icons.....................................................................................................
Introduction.............................................................................................................. 5-1
Maintaining Chart of Accounts................................................................................. 5-1
Specifying General Ledger Details .......................................................................... 5-3
5.3.1 Linking a GL to the GAAP Codes ............................................................... 5-6
5.3.2 Specifying Position Details ......................................................................... 5-7
5.3.3 Viewing Hierarchy Details........................................................................... 5-8
Maintaining Inter-branch Parameters ...................................................................... 5-8
Maintaining Currency Positions .............................................................................. 5-9
Maintaining MIS Class Details............................................................................... 5-10
Maintaining Accounting Periods ............................................................................ 5-11
5.7.1 Maintaining Transaction Codes ................................................................ 5-12
Identifying External Systems ................................................................................. 5-12
Maintaining GAAP ................................................................................................. 5-14
5.9.1 Linking a Branch to GAAP Codes ............................................................ 5-14
5.9.2 Linking a GL to the GAAP Codes ............................................................. 5-15
System Accounts ..................................................................................... 6-1
6.1
Introduction.............................................................................................................. 6-1
6.1.1 System Defined Elements .......................................................................... 6-1
6.1.2 Defining SDE Classes ................................................................................ 6-3
6.1.3 Defining Number and Date Range Classes................................................ 6-4
6.1.4 Generating System Accounts Manually...................................................... 6-5
6.1.5 Processing System Account Generation .................................................... 6-7
6.1.6 Processing General Ledgers for Customers .............................................. 6-8
6.1.7 Tracking Balances of System Accounts ..................................................... 6-9
6.1.8 Tracking General Ledger Balances .......................................................... 6-13
6.1.9 Tracking MIS Balances............................................................................. 6-14
6.1.10 Adjusting Balances ................................................................................... 6-14
6.2
6.3
6.4
7.
6-15
6-16
6-16
6-17
6-18
6-19
6-20
6-22
6-22
6-22
Processing FGL Entries .......................................................................... 7-1
7.1
7.2
7.3
8.
Querying Balances ................................................................................................
6.2.1 Viewing General Ledger Balances ...........................................................
6.2.2 Viewing General Ledger Book Dated Balances .......................................
6.2.3 Viewing General Ledger Value Dated Balances ......................................
6.2.4 Viewing Transaction Details .....................................................................
6.2.5 Viewing Customer MIS Details .................................................................
Processing End of Day Operations .......................................................................
6.3.1 Tracking MIS Balances for Revaluation Entries .......................................
6.3.2 Automatic Financial Closure.....................................................................
Web Services Available for FGLs..........................................................................
Introduction..............................................................................................................
Maintaining Transaction Details ..............................................................................
7.2.1 Maintaining Customer MIS Details .............................................................
Uploading Entries ...................................................................................................
7.3.1 Upload Details ............................................................................................
7.3.2 Posting Journal Entries...............................................................................
7-1
7-1
7-3
7-5
7-5
7-7
Function ID Glossary ............................................................................... 8-1
1. Preface
1.1
Introduction
This Manual is designed to help you quickly get acquainted with the Oracle FLEXCUBE
General Ledger (FGL) system of Oracle FLEXCUBE.
It provides an overview to the module and takes you through various steps involved in setting
up FGL structure, Maintenance of system accounts and processing of FGL entries.
You can obtain further information specific to a particular field by placing the cursor on the
relevant field and striking <F1> on the keyboard.
1.2
Audience
This manual is intended for the following User/User Roles:
1.3
Role
Function
Operations
To define the FGL structure
Operations Managers/Officers
Authorization functions
Financial Control
To generate reports on FGLs
MIS Operators
Generation of reports
Documentation Accessibility
For information about Oracle's commitment to accessibility, visit the Oracle Accessibility
Program website at http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc.
1.4
Organization
This Manual is organized into the following chapters:
Chapter 1
About this Manual – Gives information on the intended audience. It also lists
the various chapters covered in this User Manual.
Chapter 2
Oracle FLEXCUBE General Ledger —An Overview is a snapshot of the features and functionality that the module provides.
Chapter 3
Maintaining Bank Level Parameters – explains the steps involved in maintaining the basic information about your Bank which are applicable for all the
branches.
Chapter 4
Maintaining General Ledger Parameters – Comprehends the steps involved
in maintaining various parameters for Oracle FLEXCUBE general ledgers.
Chapter 5
Setting up the Chart of Accounts - Details the procedure to set up a GL
structure for your bank.
1-1
1.5
1.6
Chapter 6
System Accounts – Comprehends the process of setting up system
accounts and help you get a break up of the GL balances which provide the
details on the various attributes of each transaction.
Chapter 7
Processing FGL Entries - Details out the steps involved in the process of
posting entries and the role of FGL in easing the task.
Chapter 8
Function ID Glossary has alphabetical listing of Function/Screen ID's used
in the module with page references for quick navigation.
Related Documents

The Oracle FLEXCUBE Procedures User Manual

The Oracle FLEXCUBE Operations User Manual

The Oracle FLEXCUBE Core Services User Manual

The Oracle FLEXCUBE Core Entities User Manual
Glossary of Icons
This User Manual may refer to all or some of the following icons.
Icons
Function
Exit
Add row
Delete row
Option List
1-2
2. Oracle FLEXCUBE General Ledger - An Overview
2.1
Introduction
Oracle FLEXCUBE General Ledger (FGL) system is the pillar on which various functional
components of Oracle FLEXCUBE rest. Through this single entity you can consolidate and
maintain balances and turnovers of all types of accounts your bank holds. In addition, this
module helps you retrieve the information on the FGLs maintained for your bank.
FGL is a standalone general ledger system with the ability to define chart of accounts. You
may also use this module to keep a complete track of the ledger balances of your
organization.
You need to create FGL structure at the bank level and maintain the same at different
branches. This structure helps you consolidate the GL balances and turnovers across
modules and products. You may further retrieve relevant information on the same online.
2.2
Features of Oracle FLEXCUBE General Ledger
Flexible GL structure
Based on various types of accounts that you maintain at your bank, GLs have been classified
into the following categories:

Asset

Liability

Contingent Asset

Contingent Liability

Income

Expense

Position

Position Equivalent
A Head GL can be assigned any of the above categories. Two Head GLs can have the same
category. All GLs that fall under a Head GL will essentially belong to the category defined for
the Head. Each category can have any number of GLs under it, but the category allocated to
a GL should be assigned at the head of any GL stream. All nodes and leaves by default take
the category of the Head GL to which they report. At no other level, you can assign a category.
Leaf GLs are merely points of contact through which all entries are passed to the nodes. It is
at the nodes that consolidation of all accounting takes place. Therefore, any specification like
the Currency type or GL type though specified at the leaf GL will be applicable only for the
respective node of that leaf. Peripheral activities like linking a customer account to a GL or
posting to a GL can be done only at the leaf.
All your profit and loss entries can be passed in LCY only, however, for reporting purposes
you can also maintain a record of these in any FCY or even in all currencies. This makes it
possible to have multi-currency GLs. Along with this, revaluation of currencies has also been
provided.
2-1
3. Maintaining Bank Level Parameters
3.1
Introduction
Oracle FLEXCUBE provides a facility to maintain basic information about your Bank. The
basic information details maintained for a bank are applicable for all the branches of your
Bank.
3.2
Maintaining Bank Parameters
You can maintain the basic information of your Bank in ‘Bank Parameters Detailed’ screen.
You can invoke the General Ledger Parameters Maintenance’ screen by typing ‘EGDBANKP’
in the field at the top right corner of the Application tool bar and clicking the adjoining arrow
button.
You can maintain the following parameters here:
Bank Code
Specify a valid code of your Bank from the adjoining option list.
Bank Name
Specify detailed name of your Bank.
Head Office Branch
Specify a valid Branch Code of Head Office of your Bank from the adjoining option list.
Bank Default Currency Codes
You can maintain the following currency details here:
Local
Specify local currency of your bank. The specified local currency is be considered as the local
currency for all branches of your bank. This currency will be the default currency for all
3-1
transaction inputs in the system. The income and expense balances of your bank are
maintained in this currency
Head Office Currency
Specify a valid default currency for your Bank’s Head Office.
Reporting Currency
Specify default currency in which you wish to report all financial reports. You cannot modify
the specified default currencies after you save and authorize the Bank Parameters record.
Format Mask
General Ledger Mask
Specify a mask for general ledgers maintained for your bank. System will enforce this mask
whenever you create a General Ledger at the ‘Chart of Accounts’ level.
Inter Branch Scheme
Inter Branch Account Schedule
Select the route through which you wish to settle accounting entries for inter-branch
transactions from the adjoining drop-down list. This list displays the following values:

Through HO – To settle inter-branch transactions through the Head Office

Through RO – To route accounting entries through the Regional Office. If two branches
involved in a transaction do not report to a common regional office, the accounting entry
would be routed through the HO.

Direct – To maintain an accounting relationship for each branch with every other branch.
3-2
4. Maintaining General Ledger Parameters
4.1
Introduction
In Oracle FLEXCUBE, you can maintain GL parameters using ‘General Ledger Parameters
Maintenance’ screen. You can invoke the General Ledger Parameters Maintenance’ screen
by typing ‘EGDGLPRM’ in the field at the top right corner of the Application tool bar and
clicking the adjoining arrow button.
Here, you need to specify the following details:
GL Period Check
You can set GL period check to ‘All’ or ‘Current’. Based on your selection, the system checks
for debit-credit mismatch in the balances of the financial periods. If you select ‘All’, the system
runs the check for all period. Similarly, if you select ‘Current’, the system runs the check for
the current period alone.
Year End PNL GL
Specify the code that identifies the Year End PNL GL. The system uses the said GL for PNL
transfer at the end of the year. All balances in Income and Expense GLs will be moved to the
selected GL in financial period FIN of every financial cycle.
Year End PNL TRN Code
Specify the transaction code to be used while passing PNL entries at the end of the year.
Auto Gen Position Entry
You may opt for position accounting in general ledger by checking this option. If you check
this, the system will proceed with position accounting and generate the accounting entries.
GL Update Online
If you check this option, the system will update the GL balances regularly by default. However,
you may push this activity to the end of the day by unchecking this option.
4-1
MIS Update Online
If you check this option, the system will update the MIS balance online. However, you may
push this activity to the end of the day by unchecking this option.
System Account Update Online
The system updates the system accounts by default. However, you may push this activity to
the end of the day by unchecking this option.
Value Date Balancing Check
If you check this option, the system will check for date wise currency debit / credit balance
mismatches during EOD processes. In case of mismatch, the system will display an error.
Move Balances on SDE Change
There can be cases wherein, a change in the transaction attributes or MIS cause a change in
the system accounts associated with an entry. Under such circumstances, if you have
checked this option, the system will adjusts the accounting entries posted for that particular
transaction.
4-2
5. Setting up the Chart of Accounts
5.1
Introduction
Oracle FLEXCUBE supports a multilevel structure for your bank’s Chart of Accounts. You can
create broad groups of accounts in the categories of assets, liabilities, income, expenses,
etc., and further divide these groups into several levels. The groups at each of these levels
are referred to as GLs. However, there is no limit to the number of levels that can be
maintained in the hierarchical structure of GLs. In Oracle FLEXCUBE, you may create a GL
structure as follows:
5.2
Maintaining Chart of Accounts
You can maintain a multilevel GL structure using the ‘Chart of Accounts Maintenance’ screen.
You can invoke this screen by typing ‘EGDCHACT’ in the field at the top right corner of the
Application tool bar and clicking the adjoining arrow button.
To define the details of a new GL, click new icon on the toolbar.
5-1
GL Code
In Oracle FLEXCUBE, a GL is identified by a code. Enter a unique code to identify the GL that
you are creating. The length and composition of the code depends upon the GL Mask defined
in the ‘Bank-wide Parameters’ Screen. The code that you enter can have a maximum of nine
alphanumeric characters.
Description
You can enter a brief description of the GL in this field. You can use this description for the
internal reference of your bank.
Level
Oracle FLEXCUBE GL can be created in two levels:

Node GL

Leaf GL
A Node GL is one that reports to another GL and has other GLs reporting to it. In the reporting
relationship, if a GL reports to another GL, but no GLs report to it, then it is a Leaf GL. A Head
GL is a Node that does not report to another GL.
The ‘Chart of Accounts Maintenance’ screen is designed with four tabs.

General Ledger Details — Under this tab, you can set up a GL, indicate its type, set
the restrictions and define the debit and credit reporting lines.

GAAP Linkages — Using this tab, you can link the GL to various GAAP codes.

Position Details —Under this tab, you can define the position GL to be used for
currencies.
5-2

5.3
Hierarchy Details – You can view the GL hierarchy connected to the GL that you are
creating.
Specifying General Ledger Details
To define details for a GL, click the tab ‘General Ledger Details’ button on the ‘Chart of
Accounts Maintenance’ screen. The details that you can specify for a GL depend on the type
of GL that you create. If a particular field is disabled, it means that the field is not relevant to
the type of GL that you are creating.
You can capture the following details pertaining to the GL:
Category
GL category can be specified only for a GL head. A Head GL can be assigned any of the
following categories:

Asset

Liability

Contingent Asset

Contingent Liability

Income

Expense

Position

Position Equivalent
5-3
Two Head GLs can have the same category. All GLs that fall under a Head GL will essentially
belong to the category defined for the Head. Each category can have any number of GLs
under it. But, the category allocated to a GL should be assigned at the head of any GL stream;
all nodes and leaves by default take the category of the Head GL to which they report.
General Ledger Type
Based on the way they are used in accounting, FGLs are classified into different types.
Choose one of the following from the option list:

Miscellaneous Credit

Miscellaneous Debit

Inter Branch

Cash

Normal

Revaluation
Parent GL and Description
Specify the parent GL to which the current GL is associated. Select the appropriate one from
the option list. Based on the parent GL selected, the system displays the description.
5.3.0.1
Specifying Position Accounting Details
Positioning Required
If you check this option, the system will pass position entries for the specific general ledger.
If you uncheck it, system will not pass any position entries.
Display on Report With
You may opt to report the currency position under any of the following heads:

Asset

Liability

Separate
Here, ‘Separate’ an independent head, other than Asset or Liability, for reporting currency
positions.
5.3.0.2
Specifying the Restriction Details
You may impose certain restrictions on the usage of the general ledger. Oracle FLEXCUBE
allows you to set the restrictions in the following fields:
Currencies
You may create a GL that takes entries in terms of:

A single currency

All foreign currencies

All currencies
Select the appropriate option from the dropdown menu. If you choose to impose restriction on
a single currency, you have to specify the restricted currency.
Restricted Currency
If you have chosen to impose restriction on a single currency, specify that currency here. The
option list displays all valid currencies maintained in the system. Select the appropriate one.
Branch Restriction
You can restrict access to the GL for:
5-4

Branches only

Head office only

Both branches and head office
Choose the appropriate option as applicable.
Blocked
You may opt to restrict the entries from being posted to a GL by checking this option. You can
aptly use this option to stop entries to a GL temporarily. No entries can be posted into a GL
while it is blocked. You can open a GL marked with blocked status by unchecking the blocked
status box.
This feature is useful as you need not close the GL. Blocking is temporary whereas closure is
permanent.
Back Period Entry Allowed
Using this option, you can regulate the posting of entries into past periods. Check this box to
allow the system to post entries into back periods.
5.3.0.3
Specifying Revaluation Details
You need to set your preferences as to revaluation for all leaf GLs.
Revaluation
Check this option to enable revaluation of foreign currency balances. You can revalue the
balances of asset, liability, contingent asset, and contingent liability GLs. You can also revalue
the balances in Income / Expense GLs. If you indicate that revaluation is applicable, Oracle
FLEXCUBE will revalue the GL during End of Day (EOD) processes.
Reval Split Required
Check this option to indicate that you require trading split for the leaf GL.
5.3.0.4
Specifying Year End Profit and Loss Accounts
In case of income and expense GLs, the system will move the balances in the GLs to year
end profit and loss accounts at the end of every financial cycle. You need to specify the
accounts in the following fields:
Profit Account and Description
Specify the profit account to which you wish to move the GL balances at the end of the year.
The option list displays all valid profit accounts maintained. Select the appropriate one. Based
on the account selected, the system displays the description.
Loss Account and Description
Specify the loss account to which you wish to move the GL balances at the end of the year.
The option list displays all valid loss accounts maintained. Select the appropriate one. Based
on the account selected, the system displays the description.
5.3.0.5
Specifying Central Bank Reporting Lines
For Central Bank reporting purposes, you should associate a GL with a debit and credit
reporting line.
Debit Line and Description
The Central Bank debit line indicates the line to which an account under a GL should report,
if in debit.
5-5
Credit Line and Description
You can indicate the line to which an account under a GL should report, if in credit.
You can select the reporting lines from the option list. The option list displays all lines
maintained in the ‘Reporting Line Maintenance’ screen. Based on the selection, the system
displays a description of each reporting line. The debit and credit reporting lines you define
for a leaf can be the same.
5.3.0.6
Specifying Head Office Reporting Lines
In order to include a GL under a Head Office reporting line, you should associate it with debit
and credit reporting line.
Debit Line
The Head Office debit line indicates the line to which an account under a GL should report, if
in debit.
Credit Line
You can indicate the line to which an account under a GL should report, if in credit.
You can select the reporting lines from the option list. The option list displays all lines
maintained in the ‘Reporting Line Maintenance’ screen. The system displays the description
of each reporting line based on the selection. The debit and credit reporting lines you define
for a leaf can be the same.
Once you have made the required entries save the maintenance.
5.3.1
Linking a GL to the GAAP Codes
You may link a general ledger to one or more GAAP codes using ‘GAAP Linkage’ tab of ‘Chart
of Accounts Maintenance’ screen.
You need to specify the following details under this tab:
5-6
GAAP Code
Specify the GAAP code that you wish to link to the selected GL. The option list displays all
valid GAAP codes maintained in the system. Select the appropriate one.
GAAP Description
Based on the GAAP code selected, the system displays the description.
SDE Class
Select the SDE class to be linked to the GL for generating system accounts.
Class Description
The system displays the description of the selected SDE class.
You may add more rows to the list and link any number of GAAP codes to the GL. Once you
have specified the above details, save the linkage maintenance. As a result, the system posts
all entries to the GL in the books of linked GAAPs.
5.3.2
Specifying Position Details
You can enter the details on position accounting under the Position Details tab. If you have
checked the option ‘Position Accounting Required’ under the ‘General Ledger Details’ tab,
you have to specify the details pertaining to the position accounting.
Here, you can capture the following details:
Currency Code
You may define the position GL and position equivalent GL for each currency. Select the code
that identifies the currency for which you wish to specify the details.
Position GL
Specify the position GL to be used for the selected currency. The option list displays all valid
GLs maintained in the system. You can choose the appropriate one.
5-7
Position Equivalent GL
Specify the position equivalent GL to be used for the selected currency. The option list
displays all valid GLs maintained in the system. You can choose the appropriate one.
In case you do not provide the above details, the system takes the position GL and position
equivalent GL information maintained at the Currency Definition level.
5.3.3
Viewing Hierarchy Details
You can view the hierarchy of the general ledgers connected to the current GL under the
‘Hierarchy Details’ tab.
This tab displays all child GLs connected to the current GL. It also displays a list of GLs that
are linked to the parent GL of the current GL.
5.4
Maintaining Inter-branch Parameters
You can maintain inter-branch parameters for passing inter-branch entries. You need to set
the inter-branch (IB) currency for each branch in the ‘Interbranch Parameters Maintenance’
screen.
Here, you need to capture the following details:
Branch 1 and Branch Name
Specify the code that identifies the first branch for passing interbranch entries. Based on the
branch code specified, the system displays the branch name.
5-8
Branch 2 and Branch Name
Specify the code that identifies the second branch for passing interbranch entries. Based on
the branch code specified, the system displays the branch name.
Due to Branch 1
This is the general ledger in Branch 2, into which the system passes the credit accounting
entries.
Due from Branch 1
This is the general ledger in Branch 2, into which the system passes the debit accounting
entries.
IB Currency for Branch 1
Specify the interbranch currency to be used for branch 1. The dropdown menu displays the
following options:

Account Currency

Transaction Currency
If you select ‘Account Currency’ as the IB Currency, the system will pass inter branch entries
in the account currency. Otherwise, it passes the entries in the transaction currency.
Due to Branch 2
This is the general ledger in Branch 1, into which the system passes the credit accounting
entries.
Due from Branch 2
This is the general ledger in Branch 1, into which the system passes the debit accounting
entries.
IB Currency for Branch 2
Specify the interbranch currency to be used for branch 2. The dropdown menu displays the
following options:

Account Currency

Transaction Currency
If you select ‘Account Currency’ as the IB Currency, the system will pass inter branch entries
in the account currency. Otherwise, it passes the entries in the transaction currency.
Descriptions
The system displays the descriptions for each general ledger selected, in the respective
fields.
5.5
Maintaining Currency Positions
FGL provides you an option to maintain position general ledger and position equivalent
general ledger for a currency. In case position information is not maintained in ‘Chart of
Accounts Maintenance’ screen, system picks up the details of position and position equivalent
GL from ‘Currency Position Details’ screen.
5-9
Enter the following details:
Currency Code and Name
You may define the position GL and position equivalent GL for each currency. Select the code
that identifies the currency for which you wish to specify the details. The system displays the
currency name accordingly.
Position GL and Description
Specify the position GL to be used for the selected currency. The option list displays all valid
GLs maintained in the system. You can choose the appropriate one. Based on the GL
selected, system updates the description.
Position Equivalent GL and Description
Specify the position equivalent GL to be used for the selected currency. The option list
displays all valid GLs maintained in the system. You can choose the appropriate one. Based
on the GL selected, system displays the description.
5.6
Maintaining MIS Class Details
In Oracle FLEXCUBE, you can maintain MIS classes using ‘MIS Class Maintenance’ screen.
Each MIS class that you maintain may contain a number of MIS codes, based on the type of
MIS that you choose.
Here, you need to specify the following details.
MIS Class
Enter a unique code to identify the MIS class that you are maintaining.
Description
Enter a brief description on the nature of the MIS class. You may use this description later to
refer to the MIS class.
5-10
MIS Type
Specify the type of MIS class that you are maintaining. In Oracle FLEXCUBE, you may
maintain the following types of MIS classes:

Transaction Class

Customer Class
You may maintain a maximum of 20 Transaction MIS classes. Similarly, you can maintain a
maximum of 10 Customer MIS classes in Oracle FLEXCUBE. Each such MIS class
maintained may contain several MIS codes.
MIS Code
Specify the MIS code that you wish to add to the MIS class. You may add more rows to the
list of MIS codes using add icon on the screen.
Code Description
Enter a brief description on the nature of the MIS code selected.
5.7
Maintaining Accounting Periods
Oracle FLEXCUBE allows you to maintain various period codes that correspond to a specific
financial cycle for Oracle FLEXCUBE general ledger. You can use the ‘Period Code
Maintenance’ screen to do the same. You can invoke this screen by typing ‘STDPRCDE’ in
the field at the top right corner of the Application tool bar and clicking the adjoining arrow
button.
Here, you need to capture the following details:
5.7.0.1
Specifying Financial Cycle Details
Cycle
Specify a unique name to identify the financial cycle corresponding to which, you wish to
maintain the period codes.
5-11
Description
Enter a brief description of the financial cycle.
Start Date
Specify the date of beginning of the financial cycle.
End Date
Specify the day on which the financial cycle ends.
5.7.0.2
Adding Period Codes
The financial cycle defined above, can be divided into different accounting periods. To define
individual accounting periods, click on the first row under period code. The system creates a
period called ‘FIN’. This is an open ended period coinciding with the last day of the financial
cycle.
You can maintain the following parameters for each accounting period within a financial cycle:
Period Code
Enter a code to identify the accounting period. For example, if your period length is a quarter
you can enter - Q1 for the first period; Q2 for the second; Q3 for the third and so on. If your
period length is a bimonthly you can enter BM1, BM2. If your period length coincides with a
month, you can input M1, M2.
Start Date
This is the first day of the corresponding period.
End Date
This is the last date of the corresponding period. ‘End date’ of a period should always end on
a month end.
5.7.1
Maintaining Transaction Codes
Transaction codes are attributes at accounting entry level that identify the nature of an entry.
An attribute specific to an accounting entry can be a part of the transaction code. You can
maintain transaction codes using ‘Transaction Code Maintenance’ screen in Oracle
FLEXCUBE.
On this screen, you need to capture the following details:
Transaction Code
Enter a unique code to identify the transaction.
Description
Enter a brief description on the nature of the accounting entry.
Once you have specified the above details, save it. Any attribute specific to the entry can form
a part of the transaction code.
5.8
Identifying External Systems
You need to maintain information on all external systems that post entries to a Oracle
FLEXCUBE General Ledger. You can set your preferences specific to such external systems
in the ‘External Systems’ screen. You can invoke this screen by typing ‘EGDSORCE’ in the
field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
5-12
On this screen, you need to capture the following details:
Source Code
Specify the source code of the external system. The preferences that you have set on this
screen will be applied to this system.
Source Description
The system displays the description of the source code specified.
Generate Position Entries
If you wish Oracle FLEXCUBE to generate the position entries, check this option. If you
uncheck it, the external system will handle the position entries.
Move Balances on SDE Change
There can be cases wherein, a change in the transaction attributes or MIS cause a change in
the system accounts associated with an entry. Under such circumstances, if you have
checked this option, the system will adjusts the accounting entries posted for that particular
transaction.
Balancing Check
If you check this option, the system will check for debit / credit balancing of the batch of entries
sent by the external system.
Value Date Balancing Check
If you check this option, the system will check for balances based on the value date. Batch of
entries sent by the external system will balance for debit / credit by the value date. If there is
a mismatch, the system will display an error message or a warning based on the
configurations set.
Once you have set your preferences, save the settings.
5-13
5.9
Maintaining GAAP
FGL is a multi GAAP accounting system. You can maintain various GAAP codes that are
applicable for the organization, using ‘GAAP Maintenance’ screen in Oracle FLEXCUBE. You
can invoke this screen by typing ‘EGDGPMST’ in the field at the top right corner of the
Application tool bar and clicking the adjoining arrow button.
Here, you need to specify the following details:
GAAP Code
Specify a code to identify the GAPP that you are maintaining. This code will be the unique
identifier for the GAAP.
GAAP Description
Enter a brief description of the GAAP.
Once you have specified the above details, save the maintenance.
5.9.1
Linking a Branch to GAAP Codes
You can link one or more GAAP codes to a specific branch using ‘Branch GAAP Linkage’
screen. Using this screen, you may even link each branch to all the GAAP codes maintained.
5-14
You can invoke this screen by typing ‘EGDBRNGP’ in the field at the top right corner of the
Application tool bar and clicking the adjoining arrow button.
Here, you need to specify the following details:
Branch Code
Specify the code to identify the branch to which you wish to link the GAAPs. The option list
displays all valid branch codes maintained in the system. Choose the appropriate one.
Branch Name
Based on the branch code specified, the system displays the name of the branch.
GAAP Code
Specify the GAAP code that you wish to link to the branch. The option list displays all valid
GAAP codes maintained in the system. Choose the appropriate one.
Description
Based on the GAAP code selected, the system displays the description.
Once you have specified the above details, save the linkage maintenance. As a result, the
system posts the entries in the books of GAAPs that are linked to the specific branches.
5.9.2
Linking a GL to the GAAP Codes
You may link a general ledger to one or more GAAP codes using ‘GAAP Linkage’ tab of ‘Chart
of Accounts Maintenance’ screen.
5-15
You need to specify the following details on this screen:
GAAP Code
Specify the GAAP code that you wish to link to the selected GL. The option list displays all
valid GAAP codes maintained in the system. Select the appropriate one.
GAAP Description
Based on the GAAP code selected, the system displays the description.
SDE Class
Specify the SDE class to be linked for generating system accounts.
Class Description
The system displays the description of the selected SDE class.
Similarly, you may add more rows to the list and link any number of GAAP codes to the GL.
Once you have specified the above details, save the linkage maintenance. As a result, the
system posts all entries to the GL in the books of linked GAAPs.
5-16
6. System Accounts
6.1
Introduction
System accounts are the lowest level at which accounting entries are posted in Oracle
FLEXCUBE. The system stores FGL balances at this level. System accounts help you get a
break up of the GL balances which provides the details on the various attributes of a
transaction. You may configure all such parameters for the generation of system accounts in
Oracle FLEXCUBE.
6.1.1
System Defined Elements
You need to set certain parameters called ‘System Defined Elements’ for generation of
system accounts. You can map a system-defined element to an actual transaction using ‘SDE
Maintenance Detailed’ screen. Oracle FLEXCUBE collects the data required for system
account generation from the details maintained on this screen. You can invoke this screen by
typing ‘EGDSDMST’ in the field at the top right corner of the Application tool bar and clicking
the adjoining arrow button.
Here, you need to capture the following details:
Element ID
Select an element ID from the dropdown menu. However, if the element type is chosen as
transaction attribute, you may maintain a maximum of 30 elements in FGL. Similarly, you may
maintain a maximum of 20 elements of transaction MIS code and 10 elements of customer
MIS code.
Element Type and Description
For an FGL, you may set one of the following system defined element types:

Transaction Attributes: In FGL, you can maintain a maximum of 30 elements of
transaction attributes. Oracle FLEXCUBE has placeholders for transaction attributes.
You can map these attributes to the actual transaction details.
6-1

Transaction MIS Codes: You may maintain a maximum of 20 elements of transaction
MIS codes for FGL. Every transaction MIS class that you define for FGL will be
considered as a system defined element.

Customer MIS Codes: The system converts all customer MIS classes that you create
for FGL, to system defined elements. You can maintain a maximum of 10 elements of
customer MIS classes for FGL.

Entry Level Attributes: Apart from the above, the following entry level attributes
influence the generation of system accounts:

–
Related Reference
–
Related Account
–
Financial Cycle
–
Financial Period
–
Posting Date
–
Book Date
–
Posting Currency
Balance Attributes: For auto generated entries, Oracle FLEXCUBE generates system
accounts based on balances. Balance attributes are used in defining SDE classes for
Revaluation Profit and Loss GLs, Revaluation into GLs, Position GLs and Year End PNL
GLs. In FGL, you can have the following balance attributes as system defined elements:
–
Balance GL
–
Balance System Account
–
Financial Cycle
–
Financial Period
–
Balance Currency
You can select the appropriate element type from the above. Based on the selection, the
system displays the description.
Element Code
Enter a unique code to identify the element that you are maintaining. You can modify the
element code for transaction attributes. However, if you are maintaining an MIS code, the
system defaults the MIS class as the transaction code. In that case, you cannot modify it.
However, you may modify the description.
Data Type
Specify data type to be used. You can select one of the following from the dropdown menu:

Date

String

Number
Max Length
Specify the maximum number of characters that can be used in the attribute. However, for
MIS attributes, you can set this length to a maximum of 9.
Minimum Length
Specify the minimum number of characters to be used in the attribute.
Range Required
Check this option to capture the value in range of buckets. When you define an attribute of
type ‘Number’ or ‘Date’, you may configure the system to consider the value in ranges
(buckets).
6-2
Active
Once the SDE is mapped, the system checks this option and updates the status.
Based on the selected attributes and MIS codes, Oracle FLEXCUBE generates the system
accounts. These system accounts belong to a specific GAAP.
6.1.2
Defining SDE Classes
You can define System Defined Element Class, which consists of various SDE codes in the
‘SDE Class Details’ screen. You can invoke this screen by typing ‘EGDSDCLS’ in the field at
the top right corner of the Application tool bar and clicking the adjoining arrow button.
Here, you need to capture the following details:
Class Code
Specify a unique code to identify the class.
Class Description
Enter a brief description on the nature of the class.
Element Class Type
You need to specify the type of SDE class that you are defining. Select a type from the
dropdown menu. For FGL, you may define the following element class types:


Direct: You may choose this class if you wish to post the entries directly. If you choose
this option, the system will not generate the entries by itself. Nor will it generate the
entries as part of batch processes. You may add the following elements to Direct class:
–
Transaction Attributes
–
Transaction MIS Codes
–
Customer MIS Codes
–
Entry Level Attributes
Derived: You may use this class when external systems post the entries. Inter branch
entries generated by the system is an instance of this. You may add the following SDEs
to Derived class:
6-3

–
Transaction Attributes
–
Transaction MIS Codes
–
Customer MIS Codes
–
Entry Level Attributes
Balance: When system accounts are generated based on the balances, you need to
define a Balance class. You can add all balance attributes to the Balance class.
You need to attach Balance SDE class for Revaluation Profit and Loss GLs, Position /
Position Equivalent GLs and Year Profit and Loss GLs.
Element Code
Specify the element codes that you wish to add to the class. The option list displays respective
valid element codes maintained in the system. You can select the appropriate one.
You may add more rows to the list of element codes using add icon.
Element Description
The system displays the description based on the element code selected.
Range Class
Specify a range class to which the selected element code belongs. Select the appropriate one
form the option list.
6.1.3
Defining Number and Date Range Classes
You can define number range classes and date range classes for FGLs in Oracle FLEXCUBE
using the ‘Number Range Class Maintenance’ screen. To define a number range class,
invoke ‘Number Range Class Details’ screen. You can invoke this screen by typing
‘EGDNORNG’ in the field at the top right corner of the Application tool bar and clicking the
adjoining arrow button.
Here, you can capture the following details:
Class Code
Specify a class code to identify the number range class.
6-4
Class Description
Enter a brief description on the nature of the number range class.
Add the bucket IDs to the list using add icon button. Further, enter the ‘From Number’ and ‘To
Number’ to indicate the number range.
In order to define the date range class, invoke ‘Date Range Class Details’ screen. You can
invoke this screen by typing ‘EGDDTRNG’ in the field at the top right corner of the Application
tool bar and clicking the adjoining arrow button.
Enter the following details:
Class Code
Specify a unique code to identify the date range class.
Class Description
Enter a brief description on the nature of the class.
Add more rows to the class details using add icon button. Enter the bucket IDs in the space
provided, and specify the range.
6.1.4
Generating System Accounts Manually
You can manually generate system accounts using ‘System Accounts Detailed’ screen.
Entries can be directly posted to these manually generated accounts. You can invoke this
screen by typing ‘EGDSYSAC’ in the field at the top right corner of the Application tool bar
and clicking the adjoining arrow button.
6-5
The system displays the following details of the account:

The system account number

The GL code associated with the system account and description

The GAAP code associated with the system account and description

Whether the account is generated manually, or by the system. If it is generated by the
system, the check box ‘System Generated’ remains checked.
However, you may modify the following details:
Alternate System Acc Number
You can enter an alternative system account number, and use the same for your reference.
System Account Description
You can enter a brief description on the nature of the system account.
You can view the details of system defined elements and their corresponding values in the
‘System Account Elements’ screen. To invoke the screen, click ‘System Account Elements’
button on the ‘System Accounts Detailed’ screen.
6-6
6.1.5
Processing System Account Generation
The parameters for system accounts generation are maintained for a combination of GL and
GAAP codes. The following illustration will help you comprehend the process of system
account generations in FGL.
Consider the following details:

Transaction attributes1 and 2 are mapped to ‘PRODUCT’ and ‘TENOR’ respectively.

SDE class ‘INCOME’ is a set of transaction attributes ‘PRODUCT’ and ‘TENOR’.

SDE class ‘INCOME’ is attached to the combination of the general ledger (GL1) and
GAAP (G1).

Tenor in terms of range are as follows:

–
0000 - 360 BCKT1
–
361 - 999 BCKT2
A number range class ‘LDTNR’ is maintained for the above ranges and is attached to
the tenor in SDE class ‘INCOME’.
Entry 1:
GAA
P
DR/
CR
Account
Branch
Accoun
t
Currenc
y
Posting
Date
Amoun
t
G1
D
BR1
GL1
USD
1-Jan-08
10,000
Following are the transaction attributes:
PRODUCT: LD01
TENOR: 300 Days
This is the first entry to the GL. The system generates a new system account’S1’ and posts
the balance to it.
6-7
Entry 2:
GAA
P
DR/
CR
Account
Branch
Accoun
t
Currenc
y
Posting
Date
Amoun
t
G1
D
BR1
GL1
USD
1-Jan-08
10,000
Following are the transaction attributes:
PRODUCT : LD01
TENOR: 370 Days
Primarily, the system resolves the number range bucket as ‘BCKT2’ and checks whether a
system account has been generated for that combination. Again, for such combination, the
system generates a new system account ‘S2’ and posts the balances to it.
Entry 3:
GAA
P
DR/
CR
Account
Branch
Accoun
t
Currenc
y
Posting
Date
Amoun
t
G1
D
BR1
GL1
USD
1-Jan-08
10,000
Following are the transaction attributes:
PRODUCT: LD01
TENOR: 250 Days
Initially, the system resolves the number range bucket as ‘BCKT1’ and checks whether a
system account has already been generated for this combination. In the above case, system
account ‘S1’ has already been generated for the GAAP ‘G1’ with the same transaction
attributes. Hence, the system posts this entry to the system account ‘S1’ itself.
6.1.6
Processing General Ledgers for Customers
Based on the parameters set for customer accounts, Oracle FLEXCUBE sends customer
account balances to asset and liability general ledgers, based on their nature. For an external
system that reports the balances, Oracle FLEXCUBE provides the following options:

Receive the customer GL and update the balance

Directly receive the entries into the customer accounts, along with the current balance
of the account and its reporting GLs
In the latter case, based on the current balance and the entry, FGL senses a difference in the
account balance and adjusts the balances in the reporting GLs accordingly.
Consider the following details:
Balance in the customer account: 100 USD (Credit )
Reporting GL (credit): G1
Reporting GL (debit): G2
6-8
Now, suppose that the following entry is posted to the customer account.
Dr Customer Account 150 USD
The system identifies the balance flip in the customer account and moves the balance from
G1 to G2.
Then, the system treats the above entry as shown:
Dr G1100 USD
DrG2 50 USD
This entry manages the movement of the account balance from the general ledgers G1 to G2.
6.1.7
Tracking Balances of System Accounts
FGL tracks the balances in system accounts, general ledgers and MIS classes maintained in
the system.
System accounts are the lowest level of entry points to the books of accounts. General ledger
balance is a consolidation of total balances of all such system accounts.
FGL tracks the following balances for each system account:


Balances
–
Opening Balance
–
Opening Balance in Local Currency
–
Current Balance
–
Current Balance in Local Currency
Turnovers
–
Opening Debit Turnover
–
Opening Debit Turnover in Local Currency
–
Opening Credit Turnover
–
Opening Credit Turnover in Local Currency
–
Debit Turnover
–
Debit Turnover in Local Currency
–
Credit Turnover
–
Credit Turnover in Local Currency
The balances that the system updates could be:

Book dated balances: The system receives the branch date of the account branch and
updates the book dated balance.

Value dated balances: FGL updates the value dated balances based on the posting
date sent by the external system.

Period balances: Based on the posting date, the system receives the financial cycle and
period code and updates the period balances.
The system maintains the opening balance, based on the type of balance. For instance, in
case of period balance, opening balance refers to the balance at the beginning of the period.
6-9
6.1.7.1
Handling of Back Dated Entries
FGL receives back dated entries and updates the balances accordingly. The following
example illustrates the period balance tracking mechanism for back dated entries.
Consider the following system data:
Current Business Date: 01-AUG-2008
Current Financial Cycle: FY2008
Current Financial Period: Q3
Balance of System Account S1
Balance Type
Balanc
e
Branch Code
CHO
System Account
S1
Currency
USD
Financial Cycle
FY2000
Financial Period
QT3
GL Code
GL003
GAAP Code
G1
Opening Debit Balance
0
Opening Credit Balance
0
Opening Debit Balance in Local Currency
0
Opening Credit Balance in Local Currency
0
Opening Debit Movement
0
Opening Credit Movement
0
Opening Debit Movement in Local Currency
0
Opening Credit Movement in Local Currency
0
Debit Balance
0
Credit Balance
0
Debit Balance In Local Currency
0
Credit Balance In Local Currency
0
Debit Movement
0
Credit Movement
0
6-10
Debit Movement In Local Currency
0
Credit Movement In Local Currency
0
Assume that the following entry is posted into S1 –
GAAP
DR/
CR
Branch
GL
Code
System
Account
Currency
Posting
Date
Amount
G1
D
BR1
GL1
S1
USD
1-Aug-08
10,000
Balance in the system account ‘S1’ is updated as follows:
Balance Type
Balance
Branch Code
CHO
System Account
S1
Currency
USD
Financial Cycle
FY2008
Financial Period
Q3
GL Code
GL1
GAAP Code
G1
Opening Debit Balance
0
Opening Credit Balance
0
Opening Debit Balance in Local Currency
0
Opening Credit Balance in Local Currency
0
Opening Debit Movement
0
Opening Credit Movement
0
Opening Debit Movement in Local Currency
0
Opening Credit Movement in Local Currency
0
Debit Balance
10000
Credit Balance
0
Debit Balance In Local Currency
10000
Credit Balance In Local Currency
0
Debit Movement
10000
Credit Movement
0
Debit Movement In Local Currency
10000
6-11
Credit Movement In Local Currency
0
Assume that the following entry is posted into S1:
GAAP
DR/
CR
Branch
GL
Code
System
Account
Currency
Posting
Date
Amount
G1
D
BR1
GL1
S1
USD
1-Jun-08
5,000
This is a back period entry. As a result, the system will update ‘Posted into Past Period’
turnovers for the period Q3 and ‘Posted from Future Period’ turnovers for period Q2.
Following is the balance of the system account S1 for Q3:
Balance Type
Balance
Branch Code
CHO
System Account
S1
Currency
USD
Financial Cycle
FY2008
Financial Period
Q3
GL Code
GL1
GAAP Code
G1
Opening Debit Balance
5000
Opening Credit Balance
0
Opening Debit Balance in Local Currency
5000
Opening Credit Balance in Local Currency
0
Opening Debit Movement
0
Opening Credit Movement
0
Opening Debit Movement in Local Currency
0
Opening Credit Movement in Local Currency
0
Debit Balance
15000
Credit Balance
0
Debit Balance In Local Currency
15000
Credit Balance In Local Currency
0
Debit Movement
15000
Credit Movement
0
Debit Movement In Local Currency
15000
6-12
Credit Movement In Local Currency
0
This entry has updated the ‘Posted into Past Period’ turnovers of the balance record for period Q3. Since
it is a back dated entry, the system has changed the opening balance to 5000 Debit.
Balances for the quarter Q2 will be as follows:
6.1.8
Balance Type
Balance
Branch Code
CHO
System Account
S1
Currency
USD
Financial Cycle
FY2000
Financial Period
Q2
GL Code
GL1
GAAP Code
G1
Opening Debit Balance
0
Opening Credit Balance
0
Opening Debit Balance in Local Currency
0
Opening Credit Balance in Local Currency
0
Opening Debit Movement
0
Opening Credit Movement
0
Opening Debit Movement in Local Currency
0
Opening Credit Movement in Local Currency
0
Debit Balance
5000
Credit Balance
0
Debit Balance In Local Currency
5000
Credit Balance In Local Currency
0
Debit Movement
0
Credit Movement
0
Debit Movement In Local Currency
0
Credit Movement In Local Currency
0
Tracking General Ledger Balances
General ledgers in Oracle FLEXCUBE are the consolidation points of system accounts.
Balance tracking for general ledgers is hence, same as that of system accounts.
6-13
For details with illustration, please refer the section ‘Tracking Balances of System Accounts’
in this chapter.
For FGLs, the system can track the following balances:


6.1.9
Balances
–
Opening Balance
–
Opening Balance in Local Currency
–
Current Balance
–
Current Balance in Local Currency
Turnovers
–
Opening Debit Turnover
–
Opening Debit Turnover in Local Currency
–
Opening Credit Turnover
–
Opening Credit Turnover in Local Currency
–
Debit Turnover
–
Debit Turnover in Local Currency
–
Credit Turnover
–
Credit Turnover in Local Currency
Tracking MIS Balances
MIS balance is the breakup of the general ledger balance based on MIS codes and MIS
classes. The sum of all MIS balances for a particular class will reflect the total GL balance.
The external system provides the details of MIS codes. However, if it does not provide the
MIS code, the system will consider the code as ‘UNDEFINED’. The MIS balances will be
updated accordingly.
6.1.10
Adjusting Balances
FGL identifies any change in the transaction data provided. The change in the transaction
data has an impact in the system account balances. In that case, the system may consider
the balances as invalid, if it is posted with the old data. Hence, whenever there is such a
change, the system readjusts the system account balances. FGL will reverse the balances
posted and rebook the balances in a new set of system accounts.
This is an optional feature. You can set your preferences related to the same at the ‘Source
Preferences’ level.
Consider the following details:

The transaction attributes 1 and 2 are mapped to PRODUCT and TENOR respectively.

SDE class INCOME is a set of transaction attributes PRODUCT and TENOR.

SDE class attached for the combination of the general ledger GL1 and the GAAP G1 is
INCOME.

No SDE class is attached to the general ledger GL2 and GAAP G1. It indicates that the
balance breakup of G2 is not required. There will only be one system account for G2.

Tenor is considered in the following ranges:

–
0000 - 360 BCKT1
–
361 - 999 BCKT2
A number range class LDTNR is maintained with the above ranges. It is attached to the
tenor in SDE class INCOME.
6-14
Entry 1:
GAA
P
DR/
CR
Account
Branch
Accoun
t
Currenc
y
Posting
Date
Amoun
t
G1
C
BR1
GL1
USD
1-Jan-08
10,000
G1
D
BR1
GL2
USD
1-Jan-08
10,000
Following are the transaction attributes:
PRODUCT: LD01
TENOR: 300 Days
This is the first entry to the GL. The system generates a new system account S1 and posts
the balance to it.
Now, suppose that the loan contract has been amended with an increase in the tenor. The
new tenor is 500.
The external system will send this information during such an amendment and accordingly,
the system will adjust the balances by passing relevant adjustment entries.
As GL2 does not have any SDE class attached to it for GAAP G1, system does not pass any
adjustment entry to adjust the balance in GL2.
Whereas, GL1 is attached to SDE class ‘INCOME’ for GAAP G1. INCOME has ‘TENOR’ as
one of its attributes and that will result in a change in the system account to be used. FGL
determines the new system accounts and posts the balances to those accounts.
Assume that the new system account is S2. In the above scenario, the system will generate
the following entries
6.2
GAA
P
DR/
CR
Account
Branch
Accoun
t
Currenc
y
Posting
Date
Amoun
t
G1
D
BR1
S1
USD
1-Jan-08
10,000
G1
C
BR1
S2
USD
1-Jan-08
10,000
Querying Balances
In FLECUBE, you can query and view the following balances:

General Ledger Balance

System Account Balances

MIS Balances
In this section, we will examine how Oracle FLEXCUBE helps you view these balances.
6-15
6.2.1
Viewing General Ledger Balances
You can view the period wise balances in a general ledger using ‘GL Period Balance Details’
screen. You can invoke the ‘GL Period Balance Details’ screen by typing ‘EGDLINE’ in the
field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Here you can view the following details:

Debit and credit opening balances and movements of the general ledger

Debit and credit current balances and turnovers in the general ledger
You can query the general ledger balances by the following parameters:
6.2.2

Branch Code

GL Code

GAAP Code

Currency Code

Financial Year

Period Code
Viewing General Ledger Book Dated Balances
You can view the balances in a general ledger and query it based on booking date using ‘GL
Book Dated Balance Detailed’ screen. You can invoke the ‘GL Book Dated Balance Detailed’
screen by typing ‘EGDGLBDB’ in the field at the top right corner of the Application tool bar
and clicking the adjoining arrow button.
6-16
Here you can view the following details:

Debit and credit opening balances and movements of the general ledger

Debit and credit current balances and turnovers in the general ledger
You can query the general ledger balances by the following parameters:
6.2.3

Branch Code

GL Code

GAAP Code

Currency Code

Booking Date
Viewing General Ledger Value Dated Balances
You can view the balances in a general ledger and query it based on value date using ‘GL
Book Date Balance Details’ screen. You can invoke the ‘GL Book Date Balance Details’
screen by typing ‘EGDGLVDB’ in the field at the top right corner of the Application tool bar
and clicking the adjoining arrow button.
6-17
Here you can view the following details:

Debit and credit opening balances and movements of the general ledger

Debit and credit current balances and turnovers in the general ledger
You can query the general ledger balances by the following parameters:
6.2.4

Branch Code

GL Code

GAAP Code

Currency Code

Value Date
Viewing Transaction Details
You can view the latest transactions and MIS details using ‘View Transaction Details’ screen.
You can invoke the ‘View Transaction Details’ screen by typing ‘EGDTXINF’ in the field at the
top right corner of the Application tool bar and clicking the adjoining arrow button.
6-18
Using this screen, you can query the transaction details as well as transaction MIS details,
based on the transaction attribute reference number.
6.2.5
Viewing Customer MIS Details
You can view the MIS details for a customer using ‘View Customer Details’ screen. You can
invoke the ‘View Customer Details’ screen by typing ‘EGDCMINF’ in the field at the top right
corner of the Application tool bar and clicking the adjoining arrow button.
You can query the MIS details based on customer MIS reference number. The system will
display the MIS classes, codes and respective descriptions on this screen.
6-19
6.3
Processing End of Day Operations
During end of the day, you can run a batch program for account revaluation for Oracle
FLEXCUBE general ledgers. As a result of the batch, the system revalues the system account
balances and posts the revaluation profit or loss into a predefined account.
You can set your preferences pertaining to account revaluation using ‘Account Revaluation
Setup’ screen. You can invoke the ‘Account Revaluation Setup’ screen by typing
‘EGDRVSTP’ in the field at the top right corner of the Application tool bar and clicking the
adjoining arrow button.
Here, you need to capture the following details:
GL SL
Specify the code to identify the general ledger account for which you wish to set the
parameters.
Description
Enter a brief description of the general ledger account for which you wish to set the revaluation
parameters.
Transaction Code and Description
Specify the transaction code under which the accounting entries are posted to the revalued
general ledger account. Based on the transaction code, the system displays the description.
Rate Type
Specify the rate type that you wish to use for revaluation of the general ledger.
Netting Indicator
You may wish to net the entries for all accounts linked to the GL code. If you check this option,
the system will pass single consolidated entries each for profit and loss.
6-20
Revalue into GL and Description
Specify the GL into which you wish to pass the revaluation entries. The system will use this
GL instead of the GL being revalued for passing the entries. As a result, the revaluation
entries will not affect the balance in the GL that under revaluation.
The system will debit this GL account is, if the result of revaluation is a profit. On the other
hand, it will credit this GL if the result of revaluation is a loss.
By default, this is the GL under revaluation. For all non-contingent GLs belonging to the asset
or liability categories, the system defaults to the GL being revalued.
You can specify a different account for posting these entries. Select it from the option list
which displays all GLs maintained in the system.
The system displays the description based on the GL selected.
Profit GL and Description
If the result of GL revaluation is a profit, the system credits the profit amount to the profit GL
that is specified here. Similarly, if you have opted for revaluation split for the GL, then the
revaluation profit, as opposed to the trading profit, is posted into this profit GL.
On revaluation split, the system segregates the revaluation profit / loss into:

Trading Profit / Loss: Profit or loss due to revaluation of FCY entries posted into the
GL during the current day

Revaluation Profit / Loss: Profit or loss due to revaluation of opening FCY balances
(excludes current day’s turnover)
Trading Profit Account and Description
If you have opted for revaluation split, you need to specify the trading profit account into which
the profits of trading revaluation should be posted.
The system displays the description based on the account selected.
Loss GL and Description
If the result of revaluation is a loss, the system debits the loss amount to the loss GL specified
here. If you have opted for revaluation split, then the revaluation loss (as opposed to trading
loss) will be posted into this GL.
Trading Loss Accounting and Description
If you have opted for revaluation split, you need to specify the trading loss account into which
the losses of trading revaluation should be posted.
The system displays the description based on the account selected.
Based on the preferences set on ‘Account Revaluation Setup’ screen, the system books profit
and loss to the Profit GL and Loss GL respectively. You may also direct the revaluation entries
into another GL in order to stabilize the balance in the GL under revaluation. For this purpose,
you may use the option ‘Revalue into GL’.
Based on the revaluation results, the system adjusts the position balances as well. The
system takes into account the positioning preferences of the GL under revaluation for this
purpose.
6-21
6.3.1
Tracking MIS Balances for Revaluation Entries
During GL revaluation, the system updates the local currency balances of the GL. This
requires an adjustment in the MIS balance breakup of the GL. To tackle this, the system has
been configured in such a way to update the MIS balance for the revaluation entry.
For all MIS codes under each MIS class, the system splits the net balance posted into the GL.
This splitting is based on the ratio of the current balances of the MIS codes.
6.3.2
Automatic Financial Closure
Oracle FLEXCUBE automatically triggers Oracle FLEXCUBE General Ledger financial
closure on the last day of the financial cycle. You have maintained year-end profit and loss
GLs in the ‘Chart of Accounts Maintenance’ screen. The system moves the income and
expense balances into those year-end profit and loss GLs respectively. The system applies
the break up schemes defined at the same level, while generating system accounts for PNL
entries. This process is initiated within the financial period ‘FIN’ of the financial cycle.
For Oracle FLEXCUBE general ledgers, the system attaches an SDE class of type ‘Balance’
to the year end profit and loss GLs. The system uses this SDE class and the attributes of the
balance being transferred, to generate the system accounts. However, for such entries, if the
SDE class is of any type other than ‘Balance’, the system displays an error message.
6.4
Web Services Available for FGLs
In case of general ledgers, you may use the web services provided by Oracle FLEXCUBE for
the following purposes:

To accept entries into the system

To provide GL balances to external systems
The web services available for Oracle FLEXCUBE general ledgers are listed below:

Entry Upload

Transaction Details Upload

Customer MIS Upload

GL Details - Query

GL Balance Query
–
Period Wise balance
–
Book Dated Balances
Value Dated Balances


System Account Balance Query
–
Period Wise Balance
–
Book Dated Balances
–
Value Dated Balances
MIS Balance Query
–
Period Wise Balance
–
Book Dated Balances
–
Value Dated Balances
6-22
7. Processing FGL Entries
7.1
Introduction
Oracle FLEXCUBE General Ledgers (FGL) eases the process of posting entries by capturing
the entries, transaction details and the customer MIS details separately, yet maintaining a
linkage. FGL also identifies the entries posted from a deal in an external system. Additionally,
FGL reduces the quantity of data to be exchanged while uploading files.
For every contract, you may often have to post accounting entries at various stages. However,
the transaction and MIS information of the contract may remain the same at those stages.
FGL helps you capture the transaction and MIS data initially and use the same information
whenever similar entries are posted. You may even capture transaction and MIS information
along with each entry in Oracle FLEXCUBE.
In this chapter, you will find more information on processing of various transactions in Oracle
FLEXCUBE general ledgers.
7.2
Maintaining Transaction Details
You can maintain details pertaining to transaction attributes for FGL using ‘Transaction
Details – Detailed’ screen. You can invoke the ‘Transaction Details – Detailed’ screen by
typing ‘EGDTXNAT’ in the field at the top right corner of the Application tool bar and clicking
the adjoining arrow button.
On this screen, you need to capture the following details:
Operation Reference
The system displays the operation reference number.
7-1
Transaction Attribute Reference
Specify the transaction attribute reference. You can use this reference while posting entries
to pass on transaction data. The system uses this reference number for all entries of the same
nature, so that you need not send the transaction data along with every entry.
However, Oracle FLEXCUBE adjusts the system account balances only if the transaction
data is sent separately with a transaction attribute reference.
This screen consists of two tabs:

Transaction Details: This section captures details of transaction attributes. You can
define a maximum of 30 attributes on this screen.

Transaction MIS Details: This section captures the details of transaction MIS. You can
define a maximum of 20 attributes.
You can even capture these details as name-value pairs. You can invoke the ‘Transactions
Details – Detailed’ screen by typing ‘EGDTXNDT’ in the field at the top right corner of the
Application tool bar and clicking the adjoining arrow button.
Under the tab ‘Transaction Details’, you can add more information on transaction attributes.
You can add more attributes to the list using add icon
Here, you need to specify the following details:
Attribute Code
Specify the attribute code.
Attribute Description
Based on the attribute code, the system displays the description.
Attribute Value
Specify a value for the selected attribute code. FGL generates system account number based
on this value. For instance, in case of Attribute PRODUCT, attribute value will be LD.
However, you need to define the same based on the parameters set in 'SDE Class Definition'
screen.
7-2
Similarly, you can capture the transaction MIS details on this screen. To enter the details, click
‘Transactions MIS Details’ button on ‘Transaction Details – Detailed’ screen.
You need to capture the following details pertaining to transaction MIS.
MIS Class and Description
Specify the MIS class for the transaction. Based on the class code selected, the system
displays the description.
MIS Code and description
Specify the MIS code that you wish to add to this operation. Based on the MIS code selected,
the system displays the description.
You may add more rows to the list using add icon
7.2.1
Maintaining Customer MIS Details
You can capture customer MIS details using ‘Customer Details – Detailed’ screen. You can
invoke the ‘Customer Details – Detailed’ screen by typing ‘EGDCMSAT’ in the field at the top
right corner of the Application tool bar and clicking the adjoining arrow button.
7-3
Here, you need to capture the following details:
Operation Reference
The system displays the operation reference number.
Customer MIS Reference
Specify the customer MIS reference number. The system will use this reference number while
posting entries for FGL.
You can maintain a maximum of 10 MIS codes corresponding to 10 MIS classes. However, if
you wish to modify the data sent, you will have to provide all existing information along with
the modifications.
If the MIS information undergoes any change, the system automatically adjusts the system
account and MIS balance.
7-4
You can even capture the customer MIS information as name value pairs. You can invoke the
‘Customer Details – Detailed’ screen by typing ‘EGDCMSDT’ in the field at the top right corner
of the Application tool bar and clicking the adjoining arrow button.
You can enter the following details:
MIS Class and Description
Specify the MIS class for the transaction. Based on the class code selected, the system
displays the description.
MIS Code and Description
Specify the MIS code that you wish to add to this operation. Based on the MIS code selected,
the system displays the description.
You may add more rows to the list using add icon
7.3
Uploading Entries
Oracle FLEXCUBE general ledger receives entries uploaded in specific formats. It can
receive entries from external systems through Entry Upload Request of Web Services. FGL
will process such entries.
You can send the entries directly to the system accounts. However, an external system can
post such entries only to manually created system accounts.
FGL can receive all attributes along with each entry. Separate records with unique reference
number may also be sent. Such records can be linked with respective entries.
7.3.1
Upload Details
You can upload the following details:
7-5
Maximum
Length
Field Name
Data Type
Serial Number
NUMBER
GAAP Code
VARCHAR
2
2
N
Account or GL(A/G)
VARCHAR
2
1
Y
Account Branch
VARCHAR
2
3
Y
Account Currency
VARCHAR
2
3
Y
Account Number
VARCHAR
2
50
Y
Debit GL
VARCHAR
2
9
N
Credit GL
VARCHAR
2
9
N
Current Balance in case of
Customer Accounts
NUMBER
System Account Number
VARCHAR
2
50
N
Debit / Credit
VARCHAR
2
1
Y
Transaction Code
VARCHAR
2
3
Y
Amount in Posting Currency
NUMBER
Y (for foreign
currency only)
Exchange Rate
NUMBER
Y (for foreign
currency only)
Amount in Local Currency
NUMBER
Y
Posting Date
DATE
Offset Entry serial No
NUMBER
Amount Code
VARCHAR
2
50
N
Related Reference Number
VARCHAR
2
255
N
Related Account
VARCHAR
2
255
N
7-6
Mandatory
Y
N
7
Y
N
7.3.2
Transaction Attribute Reference
Number
VARCHAR
2
50
N
Customer MIS Reference
VARCHAR
2
50
N
Posting Journal Entries
You can use FGL to post entries into the general ledgers using ‘Journal Entries Detailed’
screen. You can invoke the ‘Journal Entries Detailed’ screen by typing ‘EGDJRENT’ in the
field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
On this screen, you need to capture the following details:
Batch Reference
As you select ‘New’ from the action menu, the system generates a batch reference number.
Source Code
If the entry is posted through front end, system displays the source code as ‘Oracle
FLEXCUBE’. Otherwise, it displays the source code of the external source.
Branch Code
The system displays the branch code of the current branch.
Branch Name
Based on the branch code specified, the system displays the branch name.
Based on the preferences set, the system processes the entries in the following order:
7.3.2.1

Resolve inter branch entries

Prepare position entries

Run balancing check based on source preferences

Run a check for currency and value date balancing based on source preferences

Explode GAAP entries

Update the system account, GL and MIS balances
Exploding GAAP Entries
External systems may send entries to FGL for specific GAAPs as well as for all the GAAPs.
The following example illustrates how FGL handles GAAP entries:
7-7
Consider the following entries passed by an external system:
GAA
P
DR/
CR
Account
Branch
Accoun
t
Currenc
y
Posting
Date
Amoun
t
AL
D
BR1
GL1
USD
1-Jan-08
10,000
G1
C
BR1
GL3
USD
1-Jan-08
10,000
G2
C
BR1
GL4
USD
1-Jan-08
10,000
In the above table, GAAP indication has been set to ‘AL’. Hence, the system resolves all
applicable GAAP indicators for the combination of the branch BR1 and the general ledger
GL1.
Now, assume that
Applicable GAAPs for BR1 are G1, G2 and G3
Applicable GAAPs for GL1 are G1, G2 and G4
In such case, the system resolves the applicable GAAPs as G1 and G2 as these are common
for both BR1 and GL1.
Further, system prepares the GAAP wise entries as follows:
7.3.2.2
GAA
P
DR/
CR
Account
Branch
Accoun
t
Currenc
y
Posting
Date
Amoun
t
G1
D
BR1
GL1
USD
1-Jan-08
10,000
G2
D
BR1
GL1
USD
1-Jan-08
10,000
G1
C
BR1
GL3
USD
1-Jan-08
10,000
G2
C
BR1
GL4
USD
1-Jan-08
10,000
Inter Branch Accounting
FGL passes inter-branch entries based on source level preferences. If external system
preferences are configured in such a manner to generate inter branch entries, the system
resolves the inter branch accounting setup and passes extra pairs of entries.
Consider the following entries passed by the external system:
DR/
CR
Account
Branch
Accoun
t
Currenc
y
Posting
Date
Amoun
t
D
BR1
GL1
USD
1-Jan-08
10,000
C
BR2
GL2
USD
1-Jan-08
10,000
7-8
Oracle FLEXCUBE general ledger will resolve the inter branch maintenance and pass extra
pairs of entries to balance the books at each branch. Now, suppose that the inter branch
scheme is ‘DIRECT’, the system will pass the following entries:
In the books of BR1:
DR/
CR
Account
Branch
Account
Currenc
y
Posting
Date
Amoun
t
D
BR1
GL1
USD
1-Jan-08
10,000
C
BR1
Due to
BR2
USD
1-Jan-08
10,000
In the books of BR2:
DR/
CR
Account
Branch
D
BR2
C
BR2
Currenc
y
Posting
Date
Amoun
t
Due From
BR1
USD
1-Jan-08
10,000
GL2
USD
1-Jan-08
10,000
Account
If the inter branch accounting scheme is ‘THRURO’ or ‘THRUHO’, the system routes the inter
branch entries through Regional Office or Head Office respectively. On such circumstances,
the number of system generated entries will be more.
7.3.2.3
Position Accounting
In Oracle FLEXCUBE, you may track the currency positions by passing position entries.
Position GLs are linked to FGLs using ‘Chart of Accounts’ screen. Each general ledger can
have multiple sets of position and position equivalent GLs for different currencies. If you have
not linked a position GL, the system uses the position GLs maintained on the ‘Currency
Maintenance’ screen.
Suppose that the local currency for branch BR1 is USD.
The external system passes the following entries:
DR/
CR
Account
Branch
Accoun
t
Currenc
y
Posting
Date
Amoun
t
D
BR1
GL1
GBP
1-Jan-08
10,000
C
BR2
GL2
USD
1-Jan-08
8,000
Suppose that the inter branch scheme is ‘DIRECT’. The system will post the entries as
follows:
In the books of BR1:
DR/
CR
Account
Branch
Currenc
y
Account
7-9
Posting
Date
Amou
nt
7.3.2.4
D
BR1
GL1
GBP
1-Jan-08
10,000
C
BR1
Position GL
GBP
1-Jan-08
10,000
D
BR1
Position Equivalent
GL
USD
1-Jan-08
8,000
C
BR1
GL2
USD
1-Jan-08
8,000
Debit-Credit Balancing Check
You may perform a debit-credit balancing check when data is received from an external
system. By default the option is enabled in FGL. However, you can modify it. The system
verifies the debit-credit balances and displays an error message if it finds a mismatch.
For each GAAP, FGL ensures the balancing of batches by branch.
7.3.2.5
Posting Date-wise Balancing Check
For data received from external systems, you can configure Oracle FLEXCUBE to check the
balances by posting date. However, you need to set the configurations in the external system.
Further to completion of the check, the system displays an error, in case of errors, and a
warning in case of successful configuration.
7-10
8. Function ID Glossary
EGDRVSTP ........................ 6-20
EGDSDCLS .......................... 6-3
EGDSDMST ......................... 6-1
EGDSORCE ....................... 5-12
EGDSYSAC ......................... 6-5
EGDTXINF ......................... 6-18
EGDTXNAT .......................... 7-1
EGDTXNDT .......................... 7-2
E
EGDBANKP ......................... 3-1
EGDBRNGP ....................... 5-15
EGDCHACT ......................... 5-1
EGDCMINF ........................ 6-19
EGDCMSAT ......................... 7-3
EGDCMSDT ......................... 7-5
EGDDTRNG ......................... 6-5
EGDGLBDB ....................... 6-16
EGDGLPRM ......................... 4-1
EGDGLVDB ....................... 6-17
EGDGPMST ....................... 5-14
EGDJRENT .......................... 7-7
EGDLINE ............................ 6-16
EGDNORNG ........................ 6-4
G
GLDCHACT .......................... 5-1
S
STDPRCDE ........................ 5-11
8-1
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