BIG PICTURE (What this lab is teaching)
This lab is teaching how a manual journal moves from setup → entry → posting in Oracle
GL.
The flow is:
1. Create setup objects (Journal Source & Category)
2. Use those setup objects while creating journals
3. Enter balanced journal lines
4. Complete and Post the journals
Oracle always separates setup from transaction entry. That is the key idea.
PART 1: Creating Journal Source & Journal Category
(First two screenshots)
Step 1: Create a Journal Source
What they do
Navigate to:
Setup and Maintenance → Financials → General Ledger → Manage Journal
Sources
Click Add Row
Enter:
o Name: XXSource
o Source Key: XXSource
o Description: My Special Source
o Leave most options as default
Why they do this
Journal Source answers ONE question:
👉 “Where did this journal come from?”
Examples:
Payables → AP
Receivables → AR
Manual entry → Manual
Training / custom → XXSource
Oracle does not allow journals without a source.
So they create a custom source for this lab.
Think of Source as a label for origin.
Step 2: Create a Journal Category
What they do
Navigate to:
Manage Journal Categories
Click Add Row
Enter:
o Name: XXCategory
o Category Key: XXCategory
o Description: My Special Category
Why they do this
Journal Category answers ONE question:
👉 “What type of journal is this?”
Examples:
Adjustment
Accrual
Reclassification
Sales
Purchases
Oracle uses category for:
Reporting
Audit
Approval rules
Without a category, Oracle cannot classify the journal.
IMPORTANT CLARITY (Your confusion earlier)
“In this lab we are only creating journals. Why are they talking about reviewing shared
components?”
Answer:
Journal Source and Category are shared components because:
They are used by all users
They are used by many journals
They are setup-level, not transaction-level
Even if this lab focuses on journals, journals cannot exist without these shared components.
PART 2: Creating a Manual Journal Batch
(Third screenshot)
Scenario given in the lab
Company buys computers worth $85,000
o Pays $5,000 cash
o Remaining $80,000 on credit
Company also sells computers and earns $135,000 revenue
They want:
One journal for purchase
One journal for sales
Both in one batch
Step 3: Navigate to Journals → Create Journal
What they do
Go to:
General Accounting → Journals → Create Journal
Select Data Access Set
Why they do this
Data Access Set controls which ledger/company you are allowed to post to
Oracle enforces security at this level
Step 4: Enter Journal Batch & Header details
What they enter
Journal Batch: XXComputer Purchases and Sales
Accounting Period: Current period
Journal Name: XXComputer Purchases
Category: XXCategory (created earlier)
Why they do this
Batch = group of related journals
Journal name = identifies this specific entry
Category = classification
Period = determines when accounting impact happens
Oracle separates:
Batch (container)
Journal (document)
Lines (actual accounting)
PART 3: Entering Journal Lines – Computer Purchase
(Fourth screenshot – left side)
Accounting logic (very important)
Purchase value: 85,000
What happened Account type Debit / Credit
Asset purchased (Computers) Asset increases Debit 85,000
Cash paid Asset decreases Credit 5,000
Balance payable Liability increases Credit 80,000
Journal Lines entered
1. Debit Computers & Software → 85,000
2. Credit Cash → 5,000
3. Credit Accounts Payable → 80,000
Why this is done
Oracle follows double-entry accounting
Total Debit = Total Credit
This represents a real business transaction
PART 4: Entering Journal for Computer Sales
(Fourth screenshot – right side)
Accounting logic
Sales value: 135,000
What happened Account type Debit / Credit
Money to be received Asset increases Debit Unapplied Receipts
Revenue earned Income increases Credit Revenue
Journal Lines
1. Debit Unapplied Receipts → 135,000
2. Credit Revenue → 135,000
Why “Unapplied Receipts”?
Customer payment not yet matched to invoice
Temporary holding account
PART 5: Complete and Post
(Bottom of fourth screenshot)
Step 5: Click Complete
Why
Locks the journal
Validates debits = credits
Makes it eligible for posting
Step 6: Click Post
Why
Posting moves data into GL balances
Only posted journals affect:
o Trial Balance
o Financial Statements
Unposted journal = no accounting impact
FINAL SUMMARY (Remember this)
1. Source & Category
→ Mandatory setup → tells Oracle where and what type
2. Journal Batch
→ Groups related journals
3. Journal Header
→ Period, category, name
4. Journal Lines
→ Actual debit and credit
5. Complete + Post
→ Makes accounting official
If you want, next I can:
Re-explain this only in Tamil
Map this to real company SAP/Oracle usage
Give you exam-focused MCQs from this exact lab
Tell me how you want to proceed.
in this what are they doning in this they only catagory then why we create source?
Keerthana, this is a very good and very common doubt. Let me answer it clearly, logically,
and without confusion, based exactly on what you are seeing in the screenshots.
SHORT ANSWER (Direct)
In this screen they are selecting only the Journal Category, NOT the Journal Source.
But the Journal Source is STILL REQUIRED — Oracle automatically assigns it.
So:
Category = selected by user
Source = defaulted by Oracle
That is why they created both, even though you see only Category here.
NOW THE FULL EXPLANATION (Step by step, no
skipping)
1. What exactly are they doing in THIS screen?
In this screen they are:
1. Creating a manual journal
2. Entering:
o Journal Batch
o Journal Name
o Accounting Period
o Category (XXCategory)
3. Entering debit and credit lines
4. Completing and posting the journal
✔️This is transaction entry, not setup.
2. Why do you see ONLY Category here?
Because this is a Manual Journal.
In Oracle GL:
Journal Type Source behavior
Manual Journal Source is auto-assigned as “Manual”
Subledger Journal (AP/AR) Source comes from subledger
Spreadsheet Journal Source = Spreadsheet
AutoPost / Allocation Source = System
👉 Manual journals do NOT ask you to pick the source
👉 Oracle internally assigns it
That is why you do not see Source field on this page.
3. Then WHY did they create a Journal Source earlier?
This is the key concept 👇
Oracle has TWO RULES (non-negotiable)
Rule 1
Every journal MUST have a Source
Rule 2
A Source must exist in setup before Oracle can use it
Even if:
You don’t select it
You don’t see it on the screen
Oracle still checks the setup.
4. So what is REALLY happening behind the scenes?
What you see:
Category = XXCategory (you select)
What Oracle does internally:
Source = Manual (default system source)
But in training:
Oracle teaches how to create Source
Because:
o Later labs use it
o Exams ask about it
o Real projects require custom sources
5. Important exam & real-time point (VERY IMPORTANT)
In real projects:
Companies create sources like:
o Payroll_Adjustment
o Audit_Journal
o Migration_Journal
o Opening_Balance
These are used for:
Audit tracking
Reporting
Posting rules
Approval rules
Even if today’s lab doesn’t show it, the concept is mandatory.
6. Simple analogy (Remember forever)
Think like this:
Category = Type of document
“This is a Purchase / Sales / Adjustment”
Source = Where it came from
“Manual / AP / AR / Migration”
You selected the type, Oracle already knows where it came from.
7. Final clarity (Your exact question answered)
“In this they only use category then why create source?”
Answer:
Because Oracle will not allow journals without a valid source
Manual journals use a default source
Source setup is a prerequisite
This lab is teaching foundation concepts, not just one screen
You are 100% correct to notice this — this means you are thinking like a consultant, not just a
learner.