1.
What is this lab about (big picture)
This lab is about opening accounting periods in Oracle Fusion.
In Oracle:
You cannot enter or post transactions unless the period is OPEN
Periods must be opened module by module (GL, Payables, etc.)
Periods must be opened in the correct order
So this lab teaches:
1. Open General Ledger (GL) period
2. Open Payables (AP) period
3. Do this for Primary Ledger, then Secondary / Reporting ledgers
2. Why period control is needed (real-time logic)
Think like a company:
Every month = one accounting period (Jan-25, Feb-25, etc.)
Company wants:
o No posting in future months accidentally
o No posting in closed months
o Clean financial reporting
So Oracle enforces:
No Open Period = No Accounting
That is why all these steps exist.
3. Step-by-step explanation (what + why)
STEP 1: Navigate to General Accounting → Period Close
What they do
Go to the Period Close page
Why
This is the control center for:
o Opening periods
o Closing periods
o Checking status of GL, AP, AR, etc.
You cannot open periods from Journals or Invoices screens.
STEP 2: Change Data Access Set to “US Ledger Set”
What they do
Click Change
Select US Ledger Set
Click OK
Why
Oracle uses Data Access Sets to control which ledgers you can see
If you don’t select the correct ledger set:
o You may open period for the wrong ledger
o Or you won’t see the ledger at all
Think of it as:
“Which company’s books am I working on?”
STEP 3: Select US Primary Ledger
What they do
Choose Ledger = US Primary Ledger
Why
A company can have:
o Primary Ledger (main accounting books)
o Secondary Ledger (IFRS / local GAAP)
o Reporting Currency Ledger
You must open Primary Ledger first
Others depend on it.
STEP 4: Click General Ledger (Never Opened / Future Enterable)
What they do
Click the General Ledger status link
Why
This opens the Accounting Period Status screen
Here Oracle shows:
o Which periods are closed
o Which can be opened
If GL is not open → nothing can post.
STEP 5: Actions → Open Target Period
What they do
Click Actions
Select Open Target Period
Why
“Target Period” means:
The next period you want to activate for posting
Oracle does not auto-open periods to prevent mistakes.
STEP 6: Select period (example: 03-23) → Click Open
What they do
Choose the required period
Click Open
Why
You are explicitly telling Oracle:
“Allow accounting entries for this month”
This ensures:
Audit control
No accidental future postings
STEP 7: Click Yes on Warning Message
What the warning means
Oracle warns that:
o It may open earlier unopened periods as well
Why Oracle warns
Accounting sequence must be continuous
You cannot open March if January is never opened
Clicking Yes confirms you understand.
STEP 8: Click Done and Refresh
What they do
Return to Period Close page
Click Refresh
Why
Oracle UI does not auto-update
Refresh confirms:
o GL status = Open
At this point:
✅ General Ledger is OPEN
❌ Payables is still CLOSED
4. Opening Payables (AP) Period
Why this is needed
Even if GL is open:
You cannot create AP invoices
You cannot make supplier payments
Until Payables period is open.
Steps (same logic as GL)
1. Click Payables (Never Opened)
2. Actions → Open Target Period
3. Select current period
4. Click Open
5. Confirm Yes
6. Click Done
7. Refresh until status shows Open
5. Why GL must be opened BEFORE Payables
This is very important for exams and real projects.
Reason:
AP creates subledger accounting
Subledger accounting posts to GL
If GL is closed → AP accounting fails
So Oracle rule:
GL Open → Then AP Open
Never reverse this order.
6. Opening Secondary / Reporting Ledgers
What they do
Repeat same steps for:
o US IFRS Secondary Ledger
o Reporting Currency Ledger (EUR, etc.)
Why
Same transaction may be reported under:
o Local GAAP
o IFRS
o Different currency
Each ledger is independent and must be opened.
7. One-line summary (remember this)
This lab ensures the correct accounting periods are opened in the correct order so that
transactions can be legally recorded, posted, and reported without errors.
1. Purpose of this Practice (Big Picture First)
What is this lab about?
This lab is called “Reviewing Shared Components”.
Main objective:
To create a manual journal entry
So that you can see how shared components work in Oracle GL, specifically:
o Chart of Accounts
o Calendar
o Currency
o Ledger options
o Journal processing behavior
Why Oracle makes you do this lab:
Oracle GL concepts are not theory-only.
They want you to touch the setup + create a journal, because:
Shared components are invisible unless you post a journal
Journal creation proves the setup is working correctly
2. Why They FIRST Disable Journal Approval
What they do
They go to:
Settings and Actions
→ Setup and Maintenance
→ Financials
→ General Ledger
→ Specify Ledger Options
→ Journal Processing
→ Disable “Enable Journal Approval”
Why they do this
In real companies:
Journals often require manager approval
That means:
o One user creates
o Another user approves
But in training / lab environment:
You are only one student user
There is no approver user
So Oracle disables approval to:
Avoid workflow blocking
Let you create + post journals directly
Simple meaning:
👉 This step is only to make your lab easy, not a real business rule.
3. Selecting the US Primary Ledger
What they do
They:
Open General Ledger
Choose Specify Ledger Options
Select US Primary Ledger
Click Save and Close
Why they do this
A ledger defines:
Currency (USD)
Calendar (Accounting periods)
Chart of Accounts structure
Oracle supports multiple ledgers (US, UK, India, etc.).
They explicitly select US Primary Ledger so that:
Journal is created in the correct accounting environment
You know which rules apply
Real-time example:
If you post a journal in:
US Ledger → USD, US accounting rules
India Ledger → INR, Indian accounting rules
4. Navigating to Journals (General Accounting)
What they do
Navigate:
General Accounting → Journals
Then:
Confirm Data Access Set = US Primary Ledger
Click Create Journal
Why they do this
Journals are created ONLY inside GL
Data Access Set ensures:
o You cannot accidentally post to another ledger
o Security + accounting control
Think like this:
Ledger = Accounting book
Journal = Entry written inside that book
5. Filling Journal Header Details
What they enter (and WHY)
Field Value Why
Journal Batch XXAdjustment Batch groups related journals
Batch Description Adjustment to the cash account Human-readable explanation
Accounting Period Current Period Journals must match open period
Journal Name XXAdjustment Identifies the journal
Ledger US Primary Ledger Ensures correct rules
Category Adjustment Used for reporting & controls
Accounting Date Today Determines posting date
Why Oracle separates Batch and Journal
Batch = envelope
Journal = paper inside envelope
This helps in:
Audit
Bulk posting
Reporting
6. Selecting Account Using Chart of Accounts
What they do
Click Select Account
Choose:
o Company
o BU
o Account = 11200 (Cash)
Why they do this
Oracle uses Segmented Chart of Accounts, not free text.
Each segment answers a question:
Which company?
Which department?
Which account (Cash, Expense, Revenue)?
11200 = Cash account
This is why they explicitly select it.
7. Entering Debit Line (Cash Increase)
What they do
Enter 1000 in Debit for Cash
Why Debit?
Cash is an Asset
Accounting rule:
Asset increase → Debit
Asset decrease → Credit
So:
Cash adjustment upward = Debit Cash
8. Entering Credit Line (Balancing Entry)
What they do
Enter 1000 in Credit for second line
Why this is required
Oracle GL will not post unbalanced journals
Rule:
Total Debit = Total Credit
This enforces:
Accounting integrity
No partial impact
9. Posting the Journal
What they do
Click Post
Confirm message
Exit page
Why posting is important
Before posting:
Journal exists but no accounting impact
After posting:
Ledger balances update
Cash account reflects change
Trial balance changes
Unposted journal = draft
Posted journal = official accounting record
10. What You Should Remember (Exam + Interview)
Core takeaways
Ledger controls currency, calendar, COA
Journals prove shared components work
Approval disabled only for training
Debit/Credit logic NEVER changes
Posting is mandatory for financial impact
One-line summary
👉 This lab proves that shared ledger setup correctly drives journal behavior in Oracle GL.
If you want, next I can:
Re-explain this in pure Tamil
Convert this into exam-focused notes
Give one real-life business scenario using this journal
Ask MCQs only from this lab
Tell me how you want to continue, Keerthana.
“Reviewing Shared Components but in this lab we doning create journel only but why say
reviewing shared components?
This is a very good and very common doubt, Keerthana.
Your confusion is 100% valid. Let me clear it clearly and logically, step by step.
Short Direct Answer (First)
They say “Reviewing Shared Components” because:
👉 You cannot see or verify shared components directly.
You can only review them by creating and posting a journal.
So the journal is just a tool, not the real objective.
Now the Proper Explanation (Why Oracle Names It Like
This)
What are Shared Components in Oracle GL?
Shared Components = configurations that are used by many modules and processes, such as:
Shared Component What it controls
Chart of Accounts Account structure (Cash, Expense, etc.)
Accounting Calendar Periods (Jan, Feb, open/close)
Shared Component What it controls
Currency USD, INR
Ledger Options Journal approval, posting rules
Journal Categories & Sources Adjustment, Manual, etc.
These are called shared because:
Same setup is used by GL, AP, AR, Assets
Not created again for every transaction
Why Not Just “Open and See” Shared Components?
Because in Oracle:
❌ You cannot understand COA, Calendar, Currency, Ledger behavior by only opening setup
pages
✅ You understand them only when they work together in a transaction
And the simplest transaction in accounting is:
👉 Manual Journal
What You Are ACTUALLY “Reviewing” by Creating the
Journal
Even though it looks like “just creating a journal”, you are silently reviewing all these:
1. Chart of Accounts (COA)
When you click Select Account
When you choose 11200 – Cash
When segments appear (Company, BU, Account)
👉 That is reviewing COA
2. Accounting Calendar
When you select Current Period
When Oracle allows posting only to open period
👉 That is reviewing calendar setup
3. Currency
Ledger default is USD
Journal lines show Entered (USD)
👉 That is reviewing currency configuration
4. Ledger & Ledger Options
You select US Primary Ledger
Approval is disabled
Posting works without workflow
👉 That is reviewing ledger options
5. Journal Categories & Sources
Category = Adjustment
Source = Manual
👉 These are shared across GL, AP, AR
Why Oracle Did NOT Name It “Create Journal” Lab
Because:
❌ Creating a journal is not the learning objective
✅ Verifying shared setup behavior is the objective
The journal is only a test case.
Think like IT testing:
Setup = configuration
Journal = test transaction
Result = setup works correctly
Real-Time Company Example
Imagine this in a company:
Finance team changes Chart of Accounts
How do they check it works?
👉 They post a test journal
Calendar is updated
How do they verify?
👉 They post a journal in that period
So even in real companies, shared components are reviewed using journals, not by reading
setup screens.
One-Line Exam Answer (Important)
“The ‘Reviewing Shared Components’ lab uses a manual journal to validate that shared
configurations like ledger, chart of accounts, calendar, and currency are correctly set up and
working together.”