Content

Introduction............................................................................................................. 4
Purpose............................................................................................................. 4
Scope................................................................................................................ 4
Structure........................................................................................................... 5
Related documents........................................................................................... 5
Oracle Payables....................................................................................................... 6
Assumptions..................................................................................................... 6
Events............................................................................................................... 6
Accounts........................................................................................................... 7
Accountin entries............................................................................................ !
"otes............................................................................................................... #$
Oracle Receivables................................................................................................ ##
Assumptions................................................................................................... ##
Events............................................................................................................. ##
Accounts......................................................................................................... #%
Accountin entries.......................................................................................... #4
"otes............................................................................................................... #&
Oracle Purc'asin and Inventory...........................................................................%$
Assumptions................................................................................................... %$
Events............................................................................................................. %$
Accounts......................................................................................................... %$
Accountin entries.......................................................................................... %$
"otes............................................................................................................... %$
Oracle (i)ed Assets............................................................................................... %$
Assumptions................................................................................................... %$
Events............................................................................................................. %$
Accounts......................................................................................................... %$
Accountin Entries.......................................................................................... %$
"otes............................................................................................................... %$
Encumbrance Accountin...................................................................................... %$
Assumptions................................................................................................... %$
Events............................................................................................................. %$
Accounts......................................................................................................... %$
Accountin entries.......................................................................................... %$
"otes............................................................................................................... %$
Open en closed...................................................................................................... %$
Open............................................................................................................... %$
Closed................................................................................................. %$
Introduction
*'ile implementin Oracle Applications t'ere is o+ten a need +or an
interated +unctional overvie, on -ournal entries. .'is need is especially
+elt ,'en setup discussions are on ,it' t'e customer and decisions 'ave
to be made. .'e customer enters t'e discussions +rom a +unctional point
o+ vie,.
.'e available Oracle in+ormation and documentation is +ramented and
detailed. (or eac' module or application separate manuals e)ist. .'ese
manuals are +ocused on descriptions o+ ,indo,s and speci/c +unctions.
As part o+ t'e Practice 0evelopment pro-ect o+ Oracle .'e "et'erlands a
document is created t'at covers t'e accountin issues in Oracle
Applications in an interated ,ay. .'is is t'e result.
Purpose
.'e purpose o+ t'is document is to create an overvie, o+ t'e accountin
entries in Oracle Applications in a suc' a ,ay t'at1
#. t'e determination o+ t'e system accounts ta2es place in a structured
,ay. In practice3 as part o+ t'e implementation3 t'e customer ,ill
determine t'e c'art o+ accounts. O+ten system accounts are not ta2en
into account.
%. t'e document can be used as pro-ect documentation and in+ormation
to e)plain setup decisions. .'is is also t'e case +or (ast(or,ard
implementations +or ,'ic' all decsions already 'ave been made.
Scope
.'is document covers t'e +ollo,in applications1 4eneral 5eder3
Receivables3 Payables3 Cas' 6anaement3 (i)ed Assets3 Pro-ect
Accountin3 Purc'asin3 Order Entry en Inventory. Ot'er E78usiness
applications are not in t'e scope o+ t'is document. Cas' 6anaement is
covered as part o+ Payables and Receivables. Purc'asin3 Order Entry and
Inventory are 'andled in one c'apter.
(or eac' Application assumptions are made concernin t'e setup. .'ese
are made on base o+ best practices in .'e "et'erlands.
.'is document is +ocused on setup related options t'at a9ect t'e content
and structure o+ -ournal entries.
Ot'er topics t'at are not in t'e scope o+ t'is document1
#. "e, developments in +uture releases are not ta2en into account. .'is
document is solely based on Release ##.5: ##i.
%. .'e setup o+ t'e accountin ;e)/eld.
<. Reportin issues and tools li2e (S4 and Oracle discoverer.
ii
4. Speci/c intercompany and consolidation issues.
5. .ec'nical speci/cations o+ tables and prorams t'at support t'e
accountin process in Oracle Applications.
Structure
(or eac' application you ,ill /nd a separate c'apter. Eac' c'apter 'as t'e
+ollo,in content1
#. Eac' c'apter starts ,it' assumptions t'at 'ave been made. 6ost
assumptions are made on base o+ best practice in .'e "et'erlands.
%. In t'e second part t'e events o+ t'e application are described. An
event is a trier t'at causes a -ournal entry in 4eneral 5eder. .'e
events ,ill be used to cateori=e t'e accounts and -ournals t'at are
described in t'e ne)t parts.
<. .'e t'ird part ives an overvie, o+ t'e accounts t'at are part o+ t'e
setup o+ t'e application. (or eac' account a relation is made to one or
more events. A second table3 ,it' t'e same accounts3 ives an
overvie, in ,'ic' +orms t'e setup o+ t'at account 'as to ta2e place.
4. .'e +ourt' part s'o,s +or eac' event t'e structure and content o+ t'e
-ournal. .'is in+ormation is presented in a table.
5. (inally eac' c'apter ends ,it' notes.
A separate c'apter is introduced to cover encumbrance accountin.
Encumbrance accountin is related to Purc'asin3 Oracle Payables and
4eneral 5eder.
Related documents
#. (ast (or,ard documents
%. Accountin;o, in Oracle R##I voor Canon Consumer Imain
4roup by 5uu2 de >o2. ?ersion #3 dated %# auustus %$$#.
<. Oracle Payables @ser 4uide3 Release ##i3 -anuary %$$$.
4. @nloc2in t'e 6ystery o+ Encumbrance Accountin by ?ictoria
5eavy.
iii
Oracle Payables
In t'is c'apter accountin issues are described +or t'e application Oracle
Payables. .'is application covers t'e purc'ase invoice and payment
processes. .o be able to reconcile t'e payments it is best practice to
implement Cas' 6anaement as ,ell. .'e accountin entries t'at are a
result o+ reconciliation are processed by Oracle Payables.
(or encumbrance related issues see c'apter Encumbrance Accountin.
Assumptions
#. .'e Account +or Payment option is set to 8ot'. .'is means accountin
entries ,ill be created at t'e time o+ payment AcreationB and at t'e
time o+ payment reconciliation by usin Cas' 6anaement. In previous
releases o+ Oracle Applications t'is +eature ,as 'andled by t'e Allo,
Reconciliation Accountin option.
%. .'e Account +or 4ain:5oss option is set to 8ot' as ,ell. .'is means t'at
+orein currency losses and ains are recorded at t'e moment o+ t'e
payment issue and at t'e moment o+ t'e payment clearin.
<. Automatic *it''oldin .a) Payables is not used.
4. .'e accountin met'od is set to Accrual 8asis Accountin. .'is means
you create accountin entries +or invoices and payments by usin t'e
liability account. ACas' 8asis Accountin only creates accountin
entries +or t'e paymentB
5. .'e Automatic O9set 6et'od is set to 8alancin. .'is means t'e
liability accounts ,ill 'ave t'e same balancin sement value as t'e
accounts t'at are entered in t'e invoice distributions.
6. .'e pooled ban2 account option is set on yes. .'is means t'e ban2
account is s'ared by multiple balancin sement values.
7. Interest Invoicin ma2es it possible to create an interest invoice +or an
overdue invoice at t'e time o+ payment. Separate accounts are used to
record t'e accountin entries. .'is +eature is not commonly used in t'e
"et'erlands and t'ere+ore not recorded as an event in t'is c'apter.
!. .a) and +rei't are included.
Events
AP
Even
t nr.
Event name GL Source GL Category Notes
# Invoice Payables Purc'ase Invoice *'en ad-ustin or cancellin an
invoice t'e same accounts are
used. Only debit : credit ,ill be
reversed.
iv
AP
Even
t nr.
Event name GL Source GL Category Notes
% Prepayment Payables Purc'ase Invoice *'en ad-ustin or cancellin a
prepayment t'e same accounts
are used. Only debit : credit ,ill be
reversed.
< Prepayment application Payables Purc'ase Invoice *'en unapplyin a prepayment
t'e same accounts are used. Only
debit: credit ,ill be reversed.
4 Payment Payables Payment *'en ad-ustin or voidin a
payment t'e same accounts are
used. Only debit: credit ,ill be
reversed.
5 Payment maturity Payables Payment .'is event ta2es only place ,'en
t'e Account +or Payment *'en
Payment is Issued option is
enabled.
6 Reconciliation Payables Reconciled
Payment
*'en unreconcilin a payment
t'e same accounts are used. Only
debit: credit ,ill be reversed.
Accounts
ype ! " # $ % &
5iability 5iability ' ' ' '
E)pense E)pense '
Prepayment Asset ' '
(uture dated payment Asset '
PO rate variance ain Revenue '
PO rate variance loss E)pense '
0iscount E)pense '
Reali=ed ain Revenue '
Reali=ed loss E)pense '
Roundin E)pense
(rei't E)pense '
Interest invoice
e)pense
E)pense
Interest invoice
liability
5iability
Cas' clearin Asset ' ' '
Cas' Asset '
8an2 c'ares E)pense '
8an2 errors E)pense '
.a) Asset '
(inancia
ls
options
Payable
options
Supplie
r )Site
*an+
accou
nt
Payables
document
s
a, Invoice
5iability C ' ' '
E)penseCC '
Prepayment ' '
(uture dated payment
C
' ' ' '
PO Rate variance ain '
PO Rate variance loss '
0iscount C '
Reali=ed ain C ' '
Reali=ed loss C ' '
v
(inancia
ls
options
Payable
options
Supplie
r )Site
*an+
accou
nt
Payables
document
s
a, Invoice
Roundin C:CCC '
(rei't ' '
Interest invoice
e)pense
'
Interest invoice
liability
'
Cas' clearin C ' '
Cas' C '
8an2 c'ares C ' '
8an2 errors C ' '
.a) ' '
C.'ese are t'e accounts +or ,'ic' automatic o9sets are created.
CC.'is account is enerated by Account 4enerator ,'en t'e invoice is
related to a pro-ect.
CCC.'e roundin account ,ill be used ,'en1
#. Dou use multiple currencies and t'e payment currency does not
round ,it'in t'e payment currency precision.
%. .'e +unctional currency amounts o+ payments do not eEual t'e
amount recorded as t'e liability.
<. Dou 'ave enabled automatic o9sets and t'e cas' account is
pooled3 and you 'ave roundin errors.
*'et'er t'e +uture dated payment account is used +rom t'e supplier site
or t'e payables document is de/ned by t'e Payables Option F@se (uture
0ated PaymentG.
#7
Accounting entries
AP-! Invoice
Accounting entry .ebit Credit
E)pense Aor AP AccrualBC '
.a) '
(rei't '
5iability '
PO rate variance ain: lossCC /'0 /'0
Invoice Price varianceC /'0 /'0
C .'is ,ill be t'e AP Accrual account in case t'e AP invoice is matc'ed to
a Purc'ase Order and t'e item used on t'e Purc'ase order is an inventory
item. .'e AP Accrual account is an orani=ation parameter and is can be
+ound in t'e Oracle Purc'asin and Inventory C'apter.
CC .'ese accountin entries can only be created ,'en an invoice is
matc'ed to a purc'ase order.
vi
AP-" Prepayment
Accounting entry .ebit Credit
Prepayment '
5iability '
AP-# Prepayment Application
Accounting entry .ebit Credit
Prepayment '
5iability '
*'en applyin an invoice to a prepayment3 t'e prepayment 'as to be
paid. Only t'en t'e prepayment is available.
AP-$ Payment
Accounting entry .ebit Credit
5iability '
Cas' clearin '
0iscount '
Reali=ed ain: loss /'0 /'0
In case o+ a +uture dated payment t'e +uture dated payment account is
used instaead o+ t'e cas' clearin account. At time o+ maturity t'e +uture
dated payment is credited. 0iscount and reali=ed ain: loss is recorded at
t'e time o+ maturity.
PA-% Payment maturity
Accounting entry .ebit Credit
(uture dated Payment '
Cas' clearin '
0iscount '
Reali=ed ain: loss /'0 /'0
PA-& Reconciliation
Accounting entry .ebit Credit
Cas' '
Cas' clearin '
Reali=ed ain: loss /'0 /'0
8an2 c'ares '
8an2 errors '
vii
Notes
#. Automatic o9set only e+ects t'e accounts t'at are mar2ed ,it' C. Ot'er
accounts can only be balanced by manual entries in Oracle 4eneral
leder.
%. Automatic o9set is only relevant ,'en more t'an one balancin
sement value is used in an Operatin @nit.
<. Automatic o9set does not support Interest invoicin. Ho,ever Interest
invoicin is not common practice in .'e "et'erlands.
4. .'e pooled ban2 account option is only relevant ,'en more t'an one
balancin sement value is used in an Operatin @nit.
5. (uture dated payments are not common practice in .'e "et'erlands.
.'is +unctionality ma2es a di9erence bet,een issuin o+ a payment
and t'e moment a payment is mature. Only ,'en a payment is mature
Astatus o+ t'e payment is "eotiableB it is possible to clear t'e payment
by usin Cas' 6anaement. .o use t'is +eature t'e option @se (uture
0ated Payment Account 'as to be set to Payment 0ocument or Supplier
Site.
6. "ever c'ane accountin options in t'e payment Accoutin Payables
Options +orm. .'is could create inconsistent accountin entries in t'e
system.
7. .'e PO Rate ?ariance 4ain and 5oss accounts are only used in case you
matc' an invoice ,it' a purc'ase order t'at involves inventory items.
!. .'e e)pense clearin account in previous releases o+ Oracle
Applications does not e)ist anymore in Release ##i.
viii
Oracle Receivables
In t'is c'apter accountin issues are described +or t'e application Oracle
Receivables. .'is application covers t'e sales invoice and collection
processes. .o be able to reconcile t'e receipts it is best practice to
implement Cas' 6anaement as ,ell. .'e accountin entries t'at are a
result o+ reconciliation are processed by Oracle Receivables.
.,o main types o+ receipts can be distinuis'ed1
#. Cas' receipt. .'is is a receipt t'at potentially is lin2ed to an
outstandin item. *'en t'e outstandin item Aand t'e related liability
accountB can not be +ound a de+ault liability account ,ill be used.
%. 6iscellaneous receipt. .'is is a receipt t'at is not related to an
outstandin item. Instead o+ usin a liablity account3 any type o+
account can be used. .'ese account are related to receivable activities.
Assumptions
#. Clearance met'od I 8y 6atc'in
%. .'e accountin met'od is set to Accrual 8asis Accountin. .'is means
you create accountin entries +or transactions and receipts by usin
t'e liability account. ACas' 8asis Accountin only creates accountin
entries +or t'e receiptB
<. "o unallocated receipts are recorded.
4. Receipt remittance by usin t'e (actorin met'od is not in t'e scope.
Events
AR
Even
t nr.
Event name GL Source GL Category Remar+s
# Invoice AreularB Receivables Sales Invoices
% 8ill in arrears invoice Receivables Sales Invoices 0etermined by t'e invoicin rule
t'at is used in t'e more tab o+ t'e
transactions ,indo,. .'e revenue
reconition proram creates t'e
accountin entries.
< 8ill in advance Invoice Receivables Sales Invoices 0etermined by t'e invoicin rule
t'at is used in t'e more tab o+ t'e
transactions ,indo,. .'e revenue
reconition proram creates t'e
accountin entries.
4 0ebit memo Receivables 0ebit 6emos
i)
AR
Even
t nr.
Event name GL Source GL Category Remar+s
5 Credit memo Receivables Credit 6emos .'is event ta2es place by usin
t'e Credit transactions ,indo,s.
6 Apply credit memo to
invoice
Receivables Credit 6emo
Applications
7 On7account credit Receivables Credit 6emos On account credits are credits t'at
are not applied to a speci/c
transaction. .'is event ta2es place
by usin t'e Credit transactions
,indo,s or by applyin a receipt.
! Ad-ustment Receivables .'is event ta2es place ,'en usin
a separate ,indo,. It can be
positive or a neative ad-ustment.
& 0eposit Receivables A deposit is bein created by
usin t'e .ransactions ,indo,.
#$ Invoice applied to deposit Receivables Sales Invoices Application ta2es place by /llin
out t'e /eld Commitment in t'e
.ransactions ,indo,.
## 4uarantee Receivables A uarantee is bein created by
usin t'e .ransactions ,indo,.
#% Invoice applied to
uarantee
Receivables Sales Invoices Application ta2es place by /llin
out t'e /eld Commitment in t'e
.ransactions ,indo,.
#< Applied receipt Receivables .rade Receipts .'is is event includes a discount.
Also valid +or receipts on a deposit
and uarantee.
#4 @napplied receipt Receivables .rade Receipts
#5 @nidenti/ed receipt Receivables .rade Receipts .'is is t'e case ,'en a Acas'B
receipt 'as no customer. .'ese
can not be applied.
#6 C'ane +rom unidenti/ed
to unapplied
Receivables .rade Receipts
#7 C'ane +rom on account
to applied
Receivables .rade Receipts
#! On account receipt Receivables .rade Receipts .'is is t'e case ,'en a Acas'B
receipt 'as a customer but cannot
be related to a speci/c
transaction.
#& 6iscellaneous receipt Receivables 6isc Receipts .'is receipt is not matc'ed to an
invoice. .'e revenue account is
derived +rom t'e receivable
activity.
%$ Receipt ,it' discount Receivables .rade Receipts
%# Receipt Ato be remittedB Receivables .rade Receipts Create a receipt t'at needs to be
remitted by t'e ban2 AFincasso
tapeGB
%% Remittance o+ t'e receipt Receivables Remittance
%< Reconciliation o+ t'e
remitted receipts
Receivables @sin Cas' 6anaement
Accounts
ype ! " # $ % & 1 2 3 !4 !! !" !# !$
Reali=ed ain Revenue '
Reali=ed loss E)pense '
@nallocated Revenue Revenue
Cross currency
roundin
E)pense
Header roundin E)pense
Cas' Asset ' '
8an2 c'are E)pense ' '
Receipt con/rmation Asset
Remitted receipt Asset
)
ype ! " # $ % & 1 2 3 !4 !! !" !# !$
(actored receipt Asset
S'ort term debt
@napplied receipt Asset ' '
@nidenti/ed receipt Asset
On account receipt Asset
Receivable Asset ' ' ' ' ' ' ' ' ' ' ' '
Revenue Revenue ' ' ' ' ' ' ' '
Clearin Asset
@nbilled receivable Revenue ' ' '
@nearned revenue Revenue ' ' ' ' '
.a) 5iability ' ' ' ' ' ' '
(rei't Revenue ' ' ' ' ' ' '
Earned discount Revenue
@nearned discount Revenue
Ad-ustment A,rite7o9B E)pense '
8an2 Error E)pense ' '
(inance C'are Revenue '
6isc. Cas' Revenue
ype !
%
!& !1 !2 !3 "4 "! "" "#
Reali=ed ain Revenue
Reali=ed loss E)pense
@nallocated Revenue Revenue
Cross currency
roundin
E)pense
Header roundin E)pense
Cas' Asset ' ' ' ' '
8an2 c'ares E)pense ' '
Receipt con/rmation Asset ' '
Remitted receipt Asset ' '
(actored receipt Asset
S'ort term debt
@napplied receipt Asset ' ' ' '
@nidenti/ed receipt Asset ' '
On account receipt Asset '
Receivable Asset ' ' '
Revenue Revenue '
Clearin Asset
@nbilled receivable Revenue
@nearned revenue Revenue
.a) 5iability
(rei't Revenue
Earned discount Revenue '
@nearned discount Revenue '
Ad-ustment A,rite7o9B E)pense
8an2 error E)pense ' '
(inance C'are Revenue
6isc. cas' Revenue '
System
options
*an+
accounts
rans.
ypes
Custo
mer
Site
Sales Rep a, Receivable
activity
Reali=ed 4ain '
Reali=ed 5osses '
@nallocated Revenue '
Cross currency
roundin
'
Header roundin '
Cas' '
8an2 c'ares '
)i
System
options
*an+
accounts
rans.
ypes
Custo
mer
Site
Sales Rep a, Receivable
activity
Con/rmed receipts '
Remitted receipts '
(actored receipts '
S'ort term debt '
@napplied receipts '
@nidenti/ed receipts '
On account receipts '
Receivable C ' ' '
Revenue C ' ' '
Clearin C ' '
@nbilled receivableC ' '
@nearned revenueC ' '
.a) C ' ' ' '
(rei't C ' ' '
Earned discount '
@nearned discount '
Ad-ustment A,rite7o9B '
8an2 Error '
(inance C'are '
6isc. Cas' '
C .'ese are accounts t'at can be manaed by Auto Accountin.
#7
Accounting entries
AR-! Invoice regular
Accounting entry .ebit Credit
Receivable '
Revenue '
.a) '
(rei't '
AR-" *ill in arrears invoice
Accounting entry .ebit Credit
@nbilled Receivable '
Revenue '
.a) '
(rei't '
0ependin on t'e 8ill in arrears rule t'e revenue ,ill be ta2en in di9erent
periods and t'e -ournal entry above ,ill be enerated eac' time.
Accounting entry .ebit Credit
@nbilled Receivable '
Revenue '
.a) '
(rei't '
@nbilled Receivable '
)ii
Accounting entry .ebit Credit
Receivable '
At t'e /nal period t'e unbilled Receivable is trans+erred to Receivable. At
t'at time t'e sales invoice ,ill be enerated and send to t'e customer.
.'e amount o+ t'e Receivable entry is t'e total o+ all t'e @nbilled
receivable entries t'at 'ave been recorded in t'e previous periods.
AR-# *ill in advance invoice
Accounting entry .ebit Credit
Receivable '
@nearned revenue '
.a) '
(rei't '
@nearned revenue '
Revenue '
At t'e /rst period t'e total receivable amount is recorded and an invoice
is sent to t'e customer. .'e revenue ,ill be recorded in t'e comin
periods as it is de/ned in t'e 8ill in advance invoicin rule.
Accounting entry .ebit Credit
@nearned revenue '
Revenue '
AR-$ .ebit memo
Accounting entry .ebit Credit
Receivable '
Revenue '
.a) '
(rei't '
Receivable '
(inance c'are '
AR-% Credit memo
Accounting entry .ebit Credit
Receivable '
Revenue '
.a) '
(rei't '
)iii
AR-& Apply credit memo to invoice
Accounting entry .ebit Credit
Receivable '
Receivable '
AR-1 On-account credit
Accounting entry .ebit Credit
Receivable '
Revenue '
An on7account credit can be a credit on Revenue3 .a) or (rei't. .'e
-ournal entry above is a credit on Revenue.
AR-2 Ad5ustment
Accounting entry .ebit Credit
Receivable '
Ad-ustment '
.'e entry above is a postive ad-ustment. Ad-ustment must be seen as a
,rite7o9. Ad-ustment entries can be made in combination ,it' receipts.
AR-3 .eposit
Accounting entry .ebit Credit
Receivable '
@nearned revenue '
AR-!4 Invoice applied to deposit
Accounting entry .ebit Credit
Receivable '
Revenue '
.a) '
(rei't '
@nearned revenue '
Receivable '
AR-!! Guarantee
Accounting entry .ebit Credit
@nbilled receivable '
)iv
Accounting entry .ebit Credit
@nearned revenue '
AR-!" Invoice applied to guarantee
Accounting entry .ebit Credit
Receivable '
Revenue '
.a) '
(rei't '
@nearned revenue '
@nbilled receivable '
AR-!# Applied receipt
Accounting entry .ebit Credit
Cas' '
8an2 c'are '
8an2 error '
Reali=ed ain: loss /'0 /'0
Receivable '
@napplied receipt '
@napplied receipt '
.'e moment o+ creatin t'is -ournal entry is dependent on t'e settin
Clearance 6et'od in Receipt classes. *'en t'e met'od is set to 0irectly
t'e entry is created at t'e time o+ processin t'e receipt. I+ t'e met'od is
set to 8y 6atc'in t'e entry is created at t'e time o+ clearin t'e receipt
by Oracle Cas' 6anaement.
AR-!$ 6napplied receipt
Accounting entry .ebit Credit
Cas' '
8an2 c'are '
8an2 error '
@napplied receipt '
AR-!% 6nidenti7ed receipt
Accounting entry .ebit Credit
Cas' '
8an2 c'are '
8an2 error '
@nidenti/ed receipt '
AR-!& C8ange 9rom unidenti7ed to unapplied
)v
Accounting entry .ebit Credit
@nidenti/ed receipt '
@napplied receipt '
AR-!1 C8ange 9rom unidenti7ed to unapplied
Accounting entry .ebit Credit
Receivable '
@napplied receipt '
AR-!2 On account receipt
Accounting entry .ebit Credit
Cas' '
8an2 c'are '
8an2 error '
On account '
@napplied receipt '
@napplied receipt '
AR-!3 :iscelleneous receipt
Accounting entry .ebit Credit
Cas' '
6isc. cas' '
A miscelleneous receipt is a receipt t'at is not related to an outstandin
item.
AR-"4 Receipt ;it8 discount
Accounting entry .ebit Credit
Cas' '
Receivable '
Receivable '
Revenue '
Receivable '
0iscount Aearned: unearnedB '
AR-"! Receipt /to be remitted0
Accounting entry .ebit Credit
Receipt con/rmation '
@napplied receipt '
)vi
Accounting entry .ebit Credit
@napplied receipt '
Receivable '
AR-"" Remittance o9 t8e receipt
Accounting entry .ebit Credit
Remitted receipt '
Receipt con/rmation '
AR-"# Reconciliation o9 t8e remitted receipts
Accounting entry .ebit Credit
Cas' '
Remitted receipt '
Notes
#. .'e pro/le option AR1 @se Invoice Accountin +or Credit 6emos
determines t'e ,ay accountin entries +or credit memos are
enerated. I+ t'is option is set to Des t'en Receivables credits t'e
oriinal transaction. *'en t'e option is set to "o3 Receivables uses
AutoAccountin to determine t'e accounts.
%. *'en enterin a credit memo you 'ave to c'oose a Rulin 6et'od and
a Split .erm 6et'od. .'e options +or bot' are (I(O3 5I(O and prorate.
.'ese rules do not e9ect t'e -ournal entries t'emselves. .'e met'ods
determine ,'at element o+ t'e invoice 'as to be credited.
<. .'e accounts (actored receipt and S'ort term debt are only used +or
remittances ,'en usin t'e +actorin met'od.
4. .'e -ournals AR7%$3 AR7%# and AR7%% are related to t'e JIncassoK
+unctionality. .'is is common practice in t'e "et'erlands.
)vii
Oracle Inventory< Purc8asing and Order Entry
In t'is c'apter accountin issues are described +or Oracle Purc'asin and
Inventory. Only actual -ournal entries are included in t'is c'apter.
Encumbrances are 'andled in a separate c'apter.
Assumptions
#. Inventory is not used in a manu+acturin environment. 4oods are
received3 moved bet,een orani=ations and sold.
%. Receivin o+ oods is done in t,o steps. .'e /rst step is receivin
t'e oods +or inspection. .'e second step is to deliver t'e oods to
t'e inventory or ot'er department .
Events
IN=
Even
t nr.
Event name GL Source GL Category Remar+s
# Receipt o+
inventory item
Purc'asin Accrual: Receivin .'e cateory depends on t'e ,ay
receipt accountin is 'andled. .'e
cateory accrual is used ,'en t'e
met'od is period end. Receivin is used
,'en t'e receipt -ournal is enerated
directly.
% Receipt o+ e)pense
item
Purc'asin Accrual: Receivin .'e same.
< 0eliver Purc'asin Accrual: Receivin .'e same.
4 Return to vendor
Aoods not in
stoc2B
Purc'asin Accrual: Receivin .'e same.
5 Return to vendor
Aoods in stoc2B
Purc'asin Accrual: Receivin .'e same.
6 Sales order
s'ipment
Inventory Inventory
7 Cycle count
ad-ustment
Inventory Inventory
! 6iscelleneous
.rans+er
Inventory Inventory
& Interor. .rans+er Inventory 6.5
#$ Subinventory
.rans+er
Inventory 6.5
)viii
Accounts
ype ! " # $ % & 1 2 3 !4
Receivin Inspection Asset ' ' ' '
Purc'ase Price
?ariance
E)pense ' '
Receivable Asset '
Payable 5iability '
Intrasit Inventory Asset '
6aterial Asset ' ' ' ' ' ' '
Outside Processin Asset
6aterial Over'ead Asset
Over'ead Asset
Resource Asset
E)pense E)pense '
Invoice Price ?ariance E)pense
Inventory AP Accrual 5iability ' ' ' '
Sales Revenue
Cost o+ 4oods Sold
ACO4SB
E)pense '
Cost ?ariance Account E)pense
Cycle count
ad-ustment
E)pense '
Scrap E)pense '
Ot8er Organi>atio
n
Subinvento
ry
Receivin Inspection '
Purc'ase Price
?ariance
' '
Receivable ' '
Payable ' '
Intrasit Inventory '
6aterial ' '
Outside Processin ' '
6aterial Over'ead ' '
Over'ead ' '
Resource ' '
E)pense ' ' '
Invoice Price ?ariance '
Inventory AP Accrual '
Sales '
Cost o+ 4oods Sold '
Cost ?ariance Account '
Cycle count
ad-ustment
'
Scrap '
Accounting entries
IN=-! Receive to Inspect
Accounting entry .ebit Credit
Receivin inspection '
Inventory AP AccrualC '
)i)
C .'is account ,ill be posted 0ebit ,'en matc'in an AP Invoice to t'e related Purc'ase order.
IN=-" .eliver to Inventory
Accounting entry .ebit Credit
6aterialC '
Receivin inspection '
Purc'ase Price ?ariance /'0 /'0
? In case o+ t'e use o+ an e)pense item on t'e related Purc'ase order3 t'is account ,ill be an
e)pense item.
IN=-# Return to =endor /Goods not in stoc+0
Accounting entry .ebit Credit
Inventory AP Accrual '
Receivin inspection '
IN=-$ Return to =endor /Goods in stoc+0
Accounting entry .ebit Credit
Inventory AP Accrual '
Receivin inspection '
Accounting entry .ebit Credit
Receivin inspection '
6aterial '
Purc'ase Price ?ariance /'0 /'0
IN=-% Receive an E,pense Item
Accounting entry .ebit Credit
E)pense account '
Inventory AP Accrual '
IN=-& Sales Order S8ipment
Accounting entry .ebit Credit
CO4S '
6aterial '
))
IN=-1 Cycle count ad5ustments
Accounting entry .ebit Credit
Cycle count ad-ustment /'0 /'0
6aterial /'0 /'0
IN=-2 :isc. trans9er
Accounting entry .ebit Credit
Scrap '
6aterial '
IN=-3 Interorg trans9er
Accounting entry .ebit Credit
6aterial AOrani=ation AB '
6aterial AOrani=ation 8B '
Accounting entry .ebit Credit
Receivable AOrani=ation 8B '
.rans+er Cost '
Accounting entry .ebit Credit
Intrasit '
Payables AOrani=ation AB '
IN=-!4 Subinventory trans9ers
Accounting entry .ebit Credit
6aterial AAB '
6aterialA8B '
Notes
))i
Oracle (i,ed Assets
8e+ore ,e o into t'e details o+ Events3 Assumptions3 Accounts en
Accountin Entries3 t'is c'apter ives a lobal introduction o+ t'e
terminoloy used ,it'in assets concernin +unctionality t'at in;uences
t'e construction o+ -ournal transactions.
CIP versus Capitali>ed transactions.
Assets supports t'ree types o+ Assets3 JCapitali=edK3 JCIPK and
JE)pensedKL every Assets 'as a correspondin status.
#. JE)pensedK 'as no Asset -ournals as a resultL t'e cost o+ assets
'as been ta2en Aas e)penses in t'e PM5B in t'e period t'e purc'ase
invoice ,as distributed in eneral 5eder.
%. JCIPK Assets are not Det depreciatedL
<. And JCapitali=edK
Assets support t'e +ollo,in Events1 +or3 JCapitali=edK and JCIPK
transactionsL
Additions L
0epreciation L
Ad-ustments L
.rans+ers L
Reclassi/cations L
RevaluationGs L
Retirements and L
.a) accountin.
0ependin on t'e type o+ an Asset3 t'e transaction ,ill be a CIP
transaction or a Capitali=ed transaction.
In t'e t'ird part o+ t'is c'apter ,'ere ,e ,ill describe t'e -ournal
transactions. (or JAdditionsK t'e -ournals +or JCIPK and JCapitali=edK ,ill
be discussed separately 3 +or all ot'er events Capitali=ed type ,ill be
described. .'e bi di9erence ,it' CIP is t'at CIP assets ,ill not
depreciate3 and 'as no Jaccumulated deprecationK to account +or in all
ot'er events.
Asset @CorporateA< @a,A and @*udgetA boo+s types
Dou cannot allo, eneral leder postin +or your budet boo2s.
Asset boo2s o+ t'e .ype J.a)K and JCorporateK produce -ournal lines i+ you
allo, 4:5 Postin +or t'is Asset 8oo2.
))ii
E,pensed versus Amorti>ed Ad5ustmentsB
An ad-ustment mi't in;uence t'e 'istorical depreciation calculation in
retrospect. .'e correction can be ta2en Ae)pensedB in t'e current asset
period3 or can be spread over t'e remainder o+ an asset li+e Aamorti=edB.
8ot' Ad-ustments types are part o+ t'e 0utc'Gs best practice. .'e
di9erence is not really t'e -ournal A,itc' accounts are 'itB3 but t'e
di9erence is t'e ,ay t'e amounts are calculated.
.'e only di9erence in t'e accounts t'at are 'it is t'e depreciation -ournal.
0epreciation -ournals +or E)pensed ad-ustments 'ave one e)tra -ournal
lineL .'e depreciation e)pense Aad-ustmentB line ,'ic' represents t'e
part o+ t'e depreciation e)pense t'at is a result o+ t'e ad-ustment. It is
t'e depreciation e)pense +or t'e current period as a result o+ t'e
ad-ustment on top o+ t'e normal periodic depreciation.
Prior period transactions versus Current Period transactionsB
Any transaction can be relevant +or depreciation as o+ t'e period t'e
transaction ,as made in. 8ut it can also in;uence t'e depreciation o+ any
number o+ prior periods in t'e same /scal year. I+ a transactions is sub-ect
to prior period e9ect. It does not in;uence t'e -ournal +rom t'e prior
period addition 3 ad-ustment3 trans+er3 reclassi/cation or retirement itsel+3
but t'e depreciation transaction as a result o+ a prior period transaction is
di9erent as a depreciation transaction as a result o+ current period
transaction

))iii
Assumptions
"ot all +unctionality o+ Oracle (i)ed Assets is ,ill be discussed in t'e
remainder o+ t'is c'apter. (or t'e 0utc' best practice t'e +ollo,in
assumptions are made1
0epreciation 6et'od Set up1
depreciate an asset in t'e year it is retired is set to Des
0epreciation 8oo2s N Calendar Set up1
depreciate assets in t'eir /rst year o+ li+e is set to "o
0epreciation 8oo2s N Accountin rules Set up1
Allo, Amorti=e c'anes is set to Des
Allo, Revaluation is set to Des
Revalue accumulated 0epreciation I Des 3 because t'e J"oK7
option ,ill trans+er t'e accumulated depreciation to t'e
revaluation reserve on every revaluation. Amorti=ation o+
Revaluation Reserve or Retire Revaluation reserve I Des3 t'ere
are not bot' no.
revaluation o+ +ully reserved asset is not limitedL AemptyB
0epreciation 8oo2s N "atural Accounts Set up1
Every account /eld3 'as a separate valueL
only e)ception is t'e ain and loss account +or COR I ACost o+
removalB it can be # value. .'e same oes +or POS APro/t o+
SaleB and "8? A"et 8oo2 ?alueB retired.
Intercompany Receivables and Payables clearin account
numbers are speci/c accounts +or Assets3 t'ey can 'ave t'e
same value.
.'e de+ault Account enerator Account is a balance s'eet
account ,it' al ot'er sement set to =ero value Anot
applicableBL
.a)7boo2 setup
t'ere are no .a) boo2s de/nedL
Investment .a) Credits are not usedL
li+e e)tension +actor I A#3$B L and no li+e e)tension ceilin L
"o Asset cost3 0epreciation3 Revaluation and E)pense Ceilins
are used
0e+erred Income .a) 5iabilityL is not used
no Ad-ustment Current Earnins depreciation rules and 8oo2s
are used.
))iv
Events
.'e Asset accounts +or 4eneral 5eder transactions are a result o+ t'e
reconi=ed Events3 Assumptions made in previous pararap's3 and t'e
Account enerator set up.
Per Event (A7#3 (A7% e)t3 t'e most common variations o+ t'e relevant
accountin entries a mentioned in t'e Remar2 section o+ t'e table belo,.
Event
number
Pre7,C(A
Event name GL Category Remar+
# Payables3 Pro-ect
and t'ird party
create 6ass
Additions.
Purc'ase
Invoice
Pro-ects
@ser de/ned
0i9erent oriinate +rom
PayablesL Create 6ass Additions
Pro-ectsL Create 6ass Additions OOO
SP57loader
% Asset 6ass Addition
5ine 0eletions
":a PS .'is event is mentioned because it
speci/cally 'as no 45 transaction as a result.
.'e transaction s'ould be made manually or
be avoided by only deletin 6ass addition
lines i+ you also delete a correspondin 6ass
addition credit line.
< Additions Addition
CIP Addition
0i9erent Qournals +or Additions because o+1
A<aB Capitali=ed and A<bB CIP Additions
Current and Prior period additionsL
A<cB Sinle and mered Additions
A<dB is t'e prior period e9ect o+ t'is
transaction
4 Capitali=ation o+ CIP
Assets
CIP Addition 0i9erent Qournals +or capitali=ation because o+1
Capitali=ationGs A4aB in t'e period and A4bB
A+ter t'e period t'e asset ,as added.
C'ane Asset type to CIP A4cB 0e7
capitali=ationL PS AIt can only be don as a
current period transactionB
5 Periodic
0epreciation
Depreciation 0i9erent Qournals +or 0epreciation because o+1
A5aB 0epreciation +or Assets ,it'out
ad-ustments and amorti=ed ad-ustments3 or
A5bB ,it' E)pensed ad-ustmentsL
A5cBL 0epreciations +or Revaluated Assets and
Parameter1 Amorti=e Revaluation Reserve I
Des
6 Ad-ustments Ad-ustments
CIP Ad-ustment
0i9erent Qournals +or Additions because o+1
6aB E)pensed ad-ustment o+ recoverable
cost L
6bB Amorti=ed ad-ustment o+ recoverable cost
L
6cB .rans+er o+ Source lines +rom assets added
in a prior period ,itc' result in trans+er o+
cost3 trans+er o+ depreciation3 and trans+er o+
e)pense.
A6dB .rans+er o+ Source lines +rom assets
added in t'e current periods or
A6eB Addin mass addition lines to an e)istin
Asset.
Ps. 0epreciation 6et'od3 5i+e Ad-ustments3 Rate
Ad-ustments and capacity Ad-ustments do not
directly result in -ournal transactions. 0ependin
on t'e e9ect t'ey 'ave on t'e depreciation t'e
,ill in;uence t'e amounts o+ t'e depreciation
transaction Aamorti=ed or E)pensedB
7 .rans+er
As a
assinment
trans+er
Or as number
o+ unit
.rans+er
CIP trans+er
0i9erent Qournals +or Additions because o+1
A7aB .'e trans+er bet,een cost centers results
in trans+er o+ cost and depreciation +or
current period trans+ersL
A7bB +or t'e prior period e)pense part in a
prior period trans+er.
))v
Event
number
Pre7,C(A
Event name GL Category Remar+
ad-ustment A7cB.'e trans+ers bet,een balancin
sements
! Reclassi/cation Reclass M
CIP Reclassi/cation
0i9erent Qournals +or Reclassi/cation because o+1
A!aB Current Reclassi/cation3 and
A!bB Prior period Reclassi/cationGsL

$& A Retirement Retirement

CIP Retirement
0i9erent Qournals +or Retirement because o+1
*'et'er Cost o+ removal and Proceeds o+ sale
amount are entered on retirement1 &aB +or
e)pensin t'e "et boo2 value retired 4ain
A&bB +or clearin t'e COR clearin account3
A&cB +or clearin t'e POS clearin account3
A&dB +or retirin a revaluation reserve
A&bB entries +or retirement ain an loss
accounts on # PM5 accountL
A&cB Retire Revaluation Reserve I Des:no
$& 8 Reinstatements Retirement
CIP Retirement
0i9erent Qournals +or Reinstatements because o+1
A#$aB "umber o+ periods since Retirement
A#$bB entries +or retirement ain an loss
accounts on # PM5 accountL
A#$cB Retire Revaluation Reserve I Des:no
#$ Revaluations Ad-ustments OOO
CIP
Ad-ustments OOO
0i9erent Qournals +or 0epreciation because o+1
A##bB Revalue Accumulated 0epreciation I
Des A"O I move t'e accumulated
0epreciation to t'e Revaluation reserve on
revaluationGs. A##cB
Retire Revaluation Reserve I Des:no Aloo2 at
t'e retirement transactionB
))vi
Accounts
Asset uses modi/able Account enerator de/nitions to enerate all t'e
reEuired account code combinations ACCI0GsB .
/All possible Asset Accounts
Ass
et
*oo
+
Ass
et
Cate
gory
Ass
et
:as
s
Addi
tion
Line
Retrieved t8roug8 Account Generator
/?!0 de7nitions
Category Account
Names
Asset Cost ' Yes
Asset Clearin ' ' "o. At leased not al,ays1
For manual additions, Oracle Assets gets the
clearing account from the category (Account
Generator)
(or mass additions3 t'e clearin account
comes +rom your source system.
(for details exceptions on Account generator rules)
Asset Manual, chapter Accounting
CIP R Cost ' Yes
CIP R Clearin ' ' "o. At leased not al,ays L
A Identical to t'e Asset clearin accountB.
0epreciation Reserve ' Yes
Revaluation Amorti=ation ' Yes
Revaluation Reserve ' Yes
Asset Account Names
0epreciation E)pense ' Yes,
but not on Reclassification (for details exceptions on
Account generator rules) Asset Manual, chapter
Accounting
*oo+ Account Names
0epreciation Ad-ustment ' Yes
"et 8oo2 ?alue Retired 4ain ' Yes
"et 8oo2 ?alue Retired 5oss ' Yes
Proceeds o+ Sale 4ain ' Yes
Proceeds o+ Sale 5oss ' Yes
Proceeds o+ Sale Clearin ' Yes
Cost o+ Removal clearin ' Yes
Cost o+ Removal 4ain ' Yes
Cost o+ Removal 5oss ' Yes
Intercompany Accounts Payable ' Yes
Intercompany Accounts
Receivable
' Yes
Revaluation Reserve Retired
4ain
' Yes
Revaluation Reserve Retired
5oss
' Yes
0e+erred 0epreciation E)pense '
Yes
0e+erred 0epreciation Reserve '
Yes
/?!0 Account generator
Account enerator uses a ;o-step generation process to enerate all
t'e reEuired segment values usin 4 Sources< +or t'e potent ional %<
di9erent accounts per assetL .'e Account enerator ,or2;o, process is
divided into < parts usin < di9erent account name groups.
))vii
Account name groups
Every one o+ t'e %< account names belons to only # Account name
roup t'is results in1
.'e Cateory Accounts names.
Asset Account "ame3 and
8oo2 Account names.
Sources
Seeded t'ere are < speci/c rules t'at enerate all t'e sements o+ t'e %<
account names. .'e sources used in t'ese rules are1
speci/c natural account values per account name located on t'e
Asset boo2 de/nitionL
speci/c account7code7combinations per account name located on
t'e Asset cateory de/nition per account boo2L
a speci/c account7code7combinations 5ocated on t'e Asset
assinment de/nitionL
and de+ault Account enerator values located on t'e Asset boo2
de/nition.
Generation o9 asset CCI. segments in a nuts8ell
Seeded t'e eneration ,or2s as described belo,L
t'e balancin sement Ait is al,ays retrieved +rom t'e Asset levelB
t'e "atural Account uses a di9erent source per account name Aas
described in t'e
All ot'er sements et t'eir value sourced +rom t'e de+ault
Account enerator values located on t'e Asset boo2 de/nition.
Account name 7 0epreciation E)pense R ,or2s di9erent3 all
sements are retrieved +rom t'e Asset Assinment de/nition.
;o-step procedure
.'e derivation +or asset Accounts is a t,o7step procedure.
.'e /st time any account is needed +or t'e accountin o+ a
particular asset. account enerator ,ill enerate t'e account and
store t'ese values per asset:per account name in an interim table
+or assets L
Every time accountin event +or an asset a+ter t'is /rst eneration
Asset ,ill use t'e stored CCI0 values +rom t'e interim table.
))viii
Accounting Entries
I+ an asset is depreciated3 J0epreciation e)penseK is al,ays a part o+ t'e
accountin entry +or a particular asset in a iven asset period. .o ma2e
t'e e)amples easier to understand t'e J0epreciation e)penseK line is
e)cluded o+ t'e Accountin entries belo,. I+ you loo2 into t'e e)amples in
t'e Asset @ser uide3 c'apter accountin3 t'e J0epreciation e)penseK
lines are al,ays t'ere.
(or t'e ease o+ compre'ension o+ t'e entries you ,ill not miss t'e
J0epreciation e)penseK line. It ,ill only disturb t'e compre'ension
process. *'en you ,ill c'ec2 t'e accountin entry aainst t'e system or
t'e manual you ,ill notice t'e di9erence. Please note t'at t'e system and
manual are correct3 ,e too2 t'e liberty o+ s2ippin t'is line to simpli+y t'e
e)amples.
! 0 Relevant non Asset transaction
(A-! Create :ass addition lines
Accounting entry .ebit Credit
Asset Clearin '
Payables or CIP pro-ects '
.'is transactions is a result o+ Payables or Pro-ect JCreate 6ass
Addition linesK prorams. I+ you are +eedin t'e 6ass addition lines
t'rou' t'e 6ass addition open inter+ace +rom a t'ird party system
you ,ill 'ave to in;uence t'e credit account in t'is transaction to /t
your needs in t'e ;o, o+ your /nancial transactions.
" 0 .elete :ass Additions transaction
(A-" .elete :ass addition lines
Accounting entry .ebit Credit
":a '
":a '
.'is Asset transaction 'as no 45 e9ect Ano 45 7 transactions as a
resultB. So i+ you do delete asset ,it'in t'e 6ass Addition
+unctionality3 6a2e sure you delete a debit and credit line +rom mass
additions +or t'e same amount. So 'ave Payables AAPB or Pro-ect APAB
reverse incorrect transactions so can delete bot' t'e debit and t'e
credit line in Asset 6ass Additions.
I+ you delete mass addition lines in asset ,it'out t'e reversal in AP
and PA your JAsset Clearin accountK ,ill not balance at period end.
))i)
#0 Additions
(A-#a Capitali>ed Addition
Accounting entry .ebit Credit
Asset Cost '
Asset Clearin '
.'is is t'e normal situation3 an automated addition t'rou' 6ass
additions A+rom Payables3 Pro-ects or t'ird party so+t,areB or a
manual additions Adetailed or Euic2B t'rou' t'e additions +orms o+
t'e Asset 6enu.
(A-#b Construction in Progress Addition
Accounting entry .ebit Credit
CIP Cost '
CIP Clearin '
Idem As +or <a3 but no, t'e asset 'as t'e status CIP.
(A-#c Capitali>ed Addition /as a result o9 :erged :ass addition Lines0
Accounting entry .ebit Credit
Asset Cost '
Asset Clearin Amass addition line #B '
Asset Clearin Amass addition line %B '
Asset Clearin Amass addition line <B C#B '
Idem As +or <a3 but no, t'e capitali=ed asset 'as been mered
,it'in 6ass Additions. PS t'is can also be in t'e case +or a CIP Asset.
A#B (or JAdditionK -ournals +rom mass additions. t'e Accountin
entry ,ill al,ays 'it t'e clearin account as mentioned in t'e
6ass addition 5ine3 no matter ,'at Account enerator 'as
de/ned.
(A-#d Addition /prior period eDects0
Accounting entry .ebit Credit
0epreciation E)pense AAd-ustmentB '
0epreciation Reserve '
.'is entry occurs ,'en t'e date placed in service is in a period
,itc' lies be+ore t'e current Assed period. .'e missed depreciation
is e)pensed in t'e /nancial t'at corresponds ,it' t'e current asset
period.
)))
$ 0 Capitali>ationEs /status Asset c8anges 9rom CIP to Capitali>ed0
(A-$a Capitali>ation /in t8e same (A-period t8e CIP Asset ;as added as CIP0
Accounting entry .ebit Credit
Asset Cost '
CIP Clearin '
(inancially3 in 45 It is as i+ t'e assed 'as never 'ad t'e status CIP.
.'e CIP Cost Account is not 'it t'is event. CIP Clearin must be 'it
because payable 'as 'it t'is account as ,ell.
(A-$b Capitali>ation /in a (A-period a9ter t8e CIP Asset ;as added as CIP0
Accounting entry .ebit Credit
Asset Cost '
CIP Cost '
*'en you capitali=e an asset in a period a+ter t'e period you added
it3 Oracle Assets creates -ournal entries t'at trans+er t'e cost +rom
t'e CIP cost account to t'e asset cost account. .'e clearin account
'as already been cleared. "o +urt'er corrections needed because
Assets are not depreciated until t'ere capitali=ed.
(A-$c .e-Capitali>ation /in t8e period t8e asset ;as entered0
Accounting entry .ebit Credit
CIP Cost '
Asset Clearin '
%0 .epreciations
.'ere are 4 di9erent depreciation accountin entries1 A(A75aB depreciation
entries +or assets ,it'out ad-ustments or +or assets ,it' amorti=ed
ad-ustments. A(A75bB3 depreciation entries +or assets ,it' e)pensed
ad-ustments. 8ot' typeGs can be ,it' or ,it'out A(A75cB +or t'e
amorti=ation o+ a revaluation reserve.
(A-%a .epreciation /9or Asset ;it8out or Amorti>ed ad5ustments 0
Accounting entry .ebit Credit
0epreciation E)pense '
0epreciation Reserve '
.'e amount o+ t'is -ournal is in;uenced by a lare number o+ settin
AAsset setupB but t'e only settin t'at in;uence t'e -ournal structure
is e)pense:or amorti=ation o+ ad-ustments. I+ t'ere are amorti=ed
ad-ustments t'e ad-ustment ,ill be spread over t'e remainder o+
t'e asset live.
)))i
(A-%b .epreciation /9or Asset ;it8 E,pensed ad5ustments 0
Accounting entry .ebit Credit
0epreciation E)pense '
0epreciation E)pense Aad-ustmentB '
0epreciation Reserve '
I+ ad-ustments are e)pensed t'e ad-ustment ,ill in;uence t'e PM5 in
t'e period t'e ad-ustment ,as made3 t'is on top o+ normal
depreciation.
(A-%c Amorti>ing revaluation reserve
Accounting entry .ebit Credit
Revaluation Amorti=ation '
Revaluation Reserve '
Is only possible i+ t'e asset is revaluated and t'e Asset depreciation
boo2 c'ec2bo) JAmorti=e Revaluation ReserveK is set to yes.
&0 Ad5ustments
.'ere are 4 di9erent accountin entries +or t'e many di9erent possible
ad-ustments to an asset Cost3 6et'od3 5i+e rate an capacity Ad-ustments.
.'ey all result in t'e same accountin entries. A cost ad-ustment includes
any ad-ustment t'at a9ects t'e recoverable cost3 i.e.3 a c'ane in cost3
salvae value3 depreciation3 or depreciation e)pense3. .'e A4B are
A(A76aB 7 manually per+ormed cost ad-ustment in t'e 8oo2s ,indo,L
A(A76bB 7 .rans+er o+ Source 5ines entered in prior periodsL
A(A76cB 7 .rans+er o+ Source 5ines entered in t'e current period.
A(A76dB 7 cost ad-ustment by addin a mass addition to an e)istin
asset usin 6ass Additions.
C'anes to assets t'at 'ave not been depreciated and c'anes to CIP
assets do not result in @Ad5ustmentA entries since no depreciation
'as been ta2en.
I+ you c'ane /nancial in+ormation a+ter you 'ave run depreciation3 you
must c'oose ,'et'er to e,pense or amorti>e t'e ad-ustment. (or bot'
situations you could et t'e e)tra ad-ustin -ournal entry.
E,pensed Ad5ustment
(or e)pensed ad-ustments3 Oracle Assets recalculates depreciation usin
t'e ne, in+ormation and e)penses t'e entire ad-ustment amount in t'e
current period. E)pensin t'e ad-ustment results in a oneRtime ad-ustin
-ournal entry.
Amorti>ed Ad5ustment
(or amorti=ed ad-ustments3 Oracle Assets spreads t'e ad-ustment amount
over t'e remainin li+e or remainin capacity o+ t'e asset. Dou can set up
your amorti=ed ad-ustments to 'ave a retroactive start date by c'anin
t'e de+ault amorti=ation start dateAusually t'e system dateB to a date in a
previous period. Any ad-ustment amount missed since t'e amorti=ation
start date is ta2en in t'e current period.
)))ii
(A-&a Recoverable cost Ad5ustment
Accounting entry .ebit Credit
0epreciation E)pense '
0epreciation E)pense
Aad-ustment ?!B
'
0epreciation Reserve '
A#B .'is line is only t'ere i+ t'e ad-ustment is e)pensed. Or
Amorti=ed ,it' a retroactive date.
(A-&b adding mass addition to an e,isting asset using :ass Additions
Accounting entry .ebit Credit
Asset Cost '
Asset Clearin '
(A-&b Ad5ustment /trans9er o9 source lines o9 assets added in prior period0
Accounting entry Asset .ebit Credit
Asset Cost "e, ?! '
Asset Cost Old '
0epreciation E)pense "e, '
0epreciation E)pense Old '
0epreciation E)pense
Aad-ustmentB ?"
"e, '
0epreciation Reserve "e, '
0epreciation Reserve Old '
.'is could be t'e case i+ additions ended up ,it' an incorrect asset.
And t'ese lines are trans+erred to t'e appropriate assets t'at 'ave
'ad depreciation in prior asset periods.
A#B "e, and Old re+er to t'e source and destination Asset3 Asset
enerates accountin entries +or bot' assets.
A%B .'is line is only t'ere i+ t'e ad-ustment is e)pensed. Or
Amorti=ed ,it' a retroactive date.
(A-&c Ad5ustment /trans9er o9 source lines o9 assets added in t8e current period
Accounting entry .ebit Credit
Asset Cost Adestination AssetB '
Asset Clearin A source AssetB '
.'is could be t'e case i+ additions ended up ,it' an incorrect
asset. And t'ese lines are trans+erred to t'e appropriate asset t'at
'as no depreciation.
)))iii
10 rans9ers
(A-1a rans9er /bet;een Cost Centers0
Accounting entry Cost
center
.ebit Credit
Asset Cost "e, '
0epreciation E)pense
AC#B
"e, '
0epreciation Reserve "e, '
Asset Cost Old '
0epreciation Reserve Old '
0epreciation e)pense
AC% B
"e, '
0epreciation e)pense Old '
A#B 0epreciation +or t'e ne, cost center in t'e current period
A%B .'e reali=ed e)penses in t'e past are optionally trans+erred to
t'e ne, balancin sement AIprior period e9ectB. .'e trans+er
'as to be reali=ed as a prior period transaction.
(A-1b rans9er /bet;een *alancing Segments0
Accounting entry *alancin
g
Segmen
t
.ebit Credit
Asset Cost "e, '
0epreciation E)pense
AC#B
"e, '
0epreciation Reserve "e, '
Intercompany Accounts Payables
A C%B
"e, '
Intercompany Accounts
Receivable
(rom '
Asset Cost (rom '
0epreciation Reserve (rom '
0epreciation e)pense
A C< B
"e, '
0epreciation e)pense (rom '
A#B 0epreciation +or t'e ne, balancin sement in t'e current
period
A%B .'is -ournal 'its t'e JAsset Intercompany Account PayablesK and
JAsset Intercompany Account ReceivablesK to create a -ournal
transaction t'at is in balance per 8alancin sement.
A<B .'e reali=ed e)penses in t'e passed are optionally trans+erred to
t'e ne, balancin sement AIprior period e9ectB. .'e trans+er
'as to be reali=ed as a prior period transaction
20 Reclassi7cations
(A-2 Reclassi7cations
Accounting entry Categor
y
.ebit Credit
Asset Cost Old '
0epreciation Reserve Old '
Asset Cost "e, '
)))iv
Accounting entry Categor
y
.ebit Credit
0epreciation E)pense At'is
periodB
Old '
0epreciation Reserve A7:7 t'is
periodB
"e, '
Oracle Assets does not ad-ust +or prior period e)penses ,'en you
reclassi+y Assets
30 Retirements And Reinstatements
(A-3A Retirements
/?!0 Accounting entry .ebit Credit
A#B C# Asset Cost '
A#B 0epreciation Reserve '
A#B 0epreciation E)pense C%
B
'
A#B "et 8oo2 ?alue Retirement
A4ainB
C<
B
/'0
A#B "et 8oo2 ?alue Retirement
A5ossB
C<
B
/'0
A%B Proceeds o+ Sale Clearin C4
B
/'0 /'0
A%B Proceeds o+ Sale A4ainB C<
B
C4
B
/'0
A%B Proceeds o+ Sale A5ossB C<
B
C4
B
/'0
A<B Cost o+ Removal A4ainB C<
B
C4
B
/'0
A<B Cost o+ Removal A5ossB C<
B
C4
B
/'0
A<B Cost o+ Removal Clearin C4
B
/'0 /'0
A4B Revaluation Reserve C5
B
'
A4B Revaluation Reserve Retired
A4ain
C<
B
C5
B
/'0
A4B Revaluation Reserve Retired
A5ossB
C<
B
C5
B
/'0
A#B .'is accountin entry is build +rom +our separate parts1
Retirement o+ Asset 8oo2 ?alue3
E)pense t'e proceeds o+ sale3
E)pense t'e cost o+ removal3
Retirement o+ t'e value o+ t'e Revaluation reserve
AC%B .'e 0epreciation e)pense ,ill be reversed +rom retirement
date up t'e current period i+ it is a prior period retirement.
AC<B Apart #74B .'e /Gain0 accounts ,ill be 'it3 i+ t'e sum o+ t'e
PM5 elements is a positive revenue. .'e ALoss0 accounts are 'it
i+ t'e sum is a neative resultL .'e PM5 elements are A "8?
retired3 Revaluation reserve retired3 cost o+ removal and
proceeds o+ saleB .
I9 all 4ain and loss account 'ave t'e same value AI t'e same
accountB Assets ,ill summari=e retirement PM5 accounts to one
line. I9 not separate lines ,ill be account +or 4 di9erent account
names.
)))v
AC4B APart %7<B .'e accountin +or proceed o+ sales APOSB and Cost o+
removal ACORB depend on t'e amount mentioned +or POS and
COR /elds in t'e retirement (OR6L IN A "o amount I no
transactionsB
AC5B APart 4B.'is accountin entry is only possible i+ t'e asset is
revaluated and t'e Asset depreciation boo2 c'ec2bo) JRetire
Revaluation ReserveK is set to yes.
)))vi
(A-3* Reinstatements / reversal o9 retirement ?!0
/?!0 Accounting entry .ebit Credit
A#B C# Asset Cost '
A#B 0epreciation Reserve '
A#B 0epreciation E)pense C%
B
'
A#B "et 8oo2 ?alue Retirement
A4ainB
C<
B
/'0
A#B "et 8oo2 ?alue Retirement
A5ossB
C<
B
/'0
A%B Proceeds o+ Sale Clearin C4
B
/'0 /'0
A%B Proceeds o+ Sale A4ainB C<
B
C4
B
/'0
A%B Proceeds o+ Sale A5ossB C<
B
C4
B
/'0
A<B Cost o+ Removal A4ainB C<
B
C4
B
/'0
A<B Cost o+ Removal A5ossB C<
B
C4
B
/'0
A<B Cost o+ Removal Clearin C4
B
/'0 /'0
A4B Revaluation Reserve C5
B
'
A4B Revaluation Reserve Retired
A4ain
C<
B
C5
B
/'0
A4B Revaluation Reserve Retired
A5ossB
C<
B
C5
B
/'0
A#B All remar2s on retirements are also relevant +or Reinstatements
Aremar2s (A7&A A# trou' 5B. 8ut t'e accountin entries 'ave
s,itc'ed 0ebit and Credit ,it' t'e transactions (A7&A +or
Retirements.
A%B 0epreciation E)pense ,ill also be 'it i+ t'ere are periods in
bet,een retirin and reinstatin. A(or t'e depreciation o+ missed
periodsB
!40 Revaluation
(A-!4 Revaluation
Accounting entry .ebit Credit
Asset Cost '
0epreciation Reserve '
Revaluation Reserve /?!0 '
A#B .'is -ournal is as presented 'er only ,'en t'e Asset 8oo2
c'ec2bo)es Revaluation allo,ed3 and revalue J0epreciation
ReserveK are bot' set to yes.
A%B (or ot'er variation o+ revaluation -ournals loo2 at t'e e)amples
made in JQournal entries +or revaluationsK in t'e c'apter
Accountin o+ t'e Asset user 4uide.
)))vii
Notes
(A7#B Setup reEuirements in (i)ed Assets Relevant to Accountin entries
+rom Assets
(A7%B Common setup c'oices t'at in;uence J(A Account eneratorKL
(A7<B Common customi=ations on +or (A Account eneratorKL
(A74B Customi=ed Account enerator de/nitionsL
(A75B Asset Accountin 4otc'aGs
(A76B Ho, do Asset -ournals3 end up in 4eneral lederL
(A77B Recoverable cost3 versus ot'er ad-ustmentsL
(A7!B .a) accountin
(A-!0 Setup reFuirements in (i,ed Assets Relevant to Accounting entries 9rom Assets
I+ you ,ant to create -ournal entries +rom your ta) boo23 your ta) boo2
must 'ave t'e same account structure3 eneral leder calendar3 and
+unctional currency as t'e associated corporate boo2. And you must
enter a di9erent set o+ boo2s +or your ta) boo2 and t'e associated
corporate boo2.
Dou cannot create -ournal entries +rom your budet boo2.
.'e create mass additions process only imports mass addition lines +or
Assets c'ared to accounts t'at are already set up in your asset
cateories. And are de/ned as an Asset account AAccount typeB. So t'e
clearin account you use in Payables must be used in t'e asset Setup
as clearin account on one o+ t'e Asset cateories. And asset7clearin
accounts must be set op in 45 as an Asset account7type.
I+ Dou are ,or2in ,it' more t'an # SO8 an more t'an # Operatin
@nit Payables must be tied to t'e same eneral leder set o+ boo2s as
t'e corporate Asset boo2 +or ,'ic' you ,ant to create mass additions
in Oracle Assets3 and Dou cannot create mass additions +or ta) boo2s.
(A-"0 Common setup c8oices t8at inGuence @(A Account generatorAB
.'e setup c'oices mentioned belo, are common in a 0utc'
implementation1
All Potential Asset Accounts 'ave t'eir o,n value in t'e ;e) /eld
sement natural Account.
0e+ault account combination 'as J$$$$$7$$$$7)))))7$$$$$K on
all sements e)cept company and account. .'e natural account
A)))))B is a balance s'eet account.
Common 6odi/cations are t'e ad-ustment to t'e Asset boo2
account into t,o type APM5B and A8alance s'eetB3 ,'ere t'e
balance s'eet accounts 'ave no Cost center3 and all t'e APM5B
Accounts do 'ave a cost enter3 as +or depreciation e)pense.
)))viii
(A-#0 Common customi>ations on 9or (A Account generatorAB
.'e customi=ations mentioned belo, are common in a 0utc'
implementation1
.'e Cost center is derived +rom t'e asset E)pense Account
.'e 8alance s'eet accounts are enerated separately +orms PM5
Accounts in t'e Account enerator process +or boo2 control
accounts Abecause o+ t'e reEuired value Jn:aK on balance s'eet
accounts. And t'e JCost center valueK +or all PM5 accounts.
Standard derivation +rom account enerator
o 8y de+ault3 Oracle Assets creates -ournal entries ,it'out
cost center level detail3 e)cept +or depreciation e)pense.
o @sin t'e de+ault assinments3 it creates -ournal entries
usin t'e balancin sement +rom t'e distribution line in
t'e Assinments ,indo, and t'e account sement.
o .'e Account 4enerator ets t'e ot'er sements +rom t'e
de+ault sement values you entered +or t'e boo2.
o Dou can modi+y t'e de+ault Account 4enerator process so
t'at Oracle Assets creates -ournal entries to a di9erent
detail level.
(A-%0 Asset Accounting Gotc8aEs
(A-%.!0 Period names o9 Asset Calendar must map identically to
t8e de7ned GL calendar names.
So c'ec2 t'e 45 calendar de/nition be+ore de/nin an Asset
depreciation calanderSSS
(A-%."0 Customi>ed Account generator de7nitions
Patc'es can over,rite customi=ed Account 4enerator de/nitions3 I+
you do not notice t'is3 youGre Asset accountin is incorrectSSS
6a2e sure you 'ave tested and approved all transaction be+ore you
o in production. ASee remar2 JAccount enerator determines
4eneral leder accounts only ones +or every [Link]
Save a copy o+ t'e approved and accepted J*or2;o, de/nitions1
+or (A Account eneratorK on a local ore common dis23 Anot only in
t'e databaseB3 be+ore you o in production. Applyin Patc'es can
over,rite ,or2;o, de/nitions.
Re7save t'e your customi=ed J*or2;o, de/nitions1 +or (A Account
eneratorK a+ter every alteration
(A-%.#0 Account generator determines General ledger accounts
only ones 9or every asset.
.'e values are enerated only onesL Account 4enerator is a t,o7step
process. In t'e /rst step At'e initial J4enerate accountsK runB3 t'e
accounts are enerated +or every ne, AssetB. Account enerator stores
t'e result o+ t'e process in (AT0IS.RI8@.IO"TACCO@".SL /)ed assets ,ill
use t'ese accounts.
)))i)
So you must et t'e initial run correct. Correctin t'e Accounts
enerated in a production situation is not a simple tas2. SSS
C'anes to Account 4enerator 'ave no e9ect on t'e e)istin Asset
distributions3 it does in;uence ne, asset AdistributionsB. .o c'ane t'e 45
accountin +or assets you need to +orce re7eneration o+ t'e asset
Accounts1
So 6a2e sure youGre customi=ed Account enerator process is saved
in t'e production database be+ore you run t'e JAsset depreciation
runK or J4enerate AccountsK +or t'e /rst time. SSS
Production environment A0atabaseBL
o (orce Oracle Assets to create ne, distribution lines
Aro,s inL (AT0IS.RI8@.IO"TACCO@".SB by. J6ass
.rans+ersK.
.est and implementation environments A0atabaseBL
o .R@"CA.E (AT0IS.RI8@.IO"TACCO@".S3 and rerun
4enerate Accounts process.
(A-&0 Ho; do Asset 5ournals< end up in General ledgerB
.'e 4enerate Account3 and UCreate QournalU prorameVs t'at are a part o+
t'e 0epreciation run3 enerate3 create and trans+er t'e Asset Qournal
transactions to 45.
@p to Release ##i Asset ,as:is a little di9erent +rom ot'er modules. .'e
-ournal does not 'ave to be imported in 4eneral leder. .'e accountin
entries end up unposted 4eneral 5eder ,it'out 'avin to JImport any
asset transactionsK in 45.
(A-10 Recoverable cost< versus ot8er ad5ustments /Li9e time-B .epreciation :et8od-<
Rate- and Capacity Ad5ustments.0
Recoverable cost Ad-ustments
Ad-ustments to t'e JAsset recoverable cost A
#
BK can be a result o+ an
asset cost ad-ustment in an Asset +orm and t'e trans+er o+ source lines
A
%
B +rom one asset to t'e ot'er. 8ut it can also be a cost ad-ustment by
addin a J6ass addition lineK to an e)istin Asset.
All t'ese JRecoverable Cost Ad-ustmentsK result in a di9erent Asset
Cost and t'e resultin -ournal transactions all 'it t'e Asset Cost
Account o+ t'e relevant Asset Cateory.
All ot'er ad-ustments
Ot'er Ad-ustments Adepreciation met'od3 depreciation rate or capacity
ad-ustmentsB do not result in a di9erent -ournal. 8ut t'e ad-ustments
in;uence t'e outcome o+ t'e depreciation calculation.
(A-20 a, accounting
.a) Accountin is not an issue +or t'e ma-ority o+ 0utc' companies
because t'ey ,ill account t'e depreciation in t'eir JCompany Asset
#
Recoverable cost Ad-ustments is t'e amount t'at needs to be recovered by depreciation Aea. .'e
recoverable cost is t'e portion o+ t'e asset cost t'at can be depreciated. It is t'e current cost less
t'e salvae value.
%
.rans+er o+ source lines I is t'e trans+er o+ lines t'at initiated t'e value AAsset CostB o+ t'e assetL
Aore part o+ t'is valueB. Source line trans+ers c'ane t'e asset cost3 depreciation reserve and
e)pense o+ old and t'e ne, asset.
)l
0epreciation 8oo2sK in a manner t'at ,ill be accepted by t'e 0utc' /scal
aut'orities. .'ere+ore usually .a)7boo2s ,ill not be reEuired. As a result
,e ,ill not discuss t'e in;uence o+ ta) related +unctionality +or t'e asset
-ournal transactions.
.'ere is no reulation +or Asset cost73 0epreciation73 Revaluation7
and E)pense CeilinsL
(unctionality as JInvestment .a) creditsK are not used since t'e
J*IRK reulated is abandoned in Holland.
Ad-ustment Current Earnins depreciation rules and 8oo2s are not
used in HollandL
.'ere is no reulation t'at ,ould introduce t'e use o+ li+e
e)tension +actorL or li+e e)tension ceilinsL
Revaluation o+ +ully reserved asset is not common practiceL
0e+erred Income .a) 5iabilityL is sometime used because t'ere are
some reulations +or accepted economic li+e3 but t'ese rules are
also common practice +or t'e commercial valuation o+ assets.
)li
Encumbrance Accounting
In t'is c'apter encumbrance accountin issues are described.
Encumbrance accountin is supported by Oracle Purc'asin3 Oracle
Payables and Oracle 4eneral 5eder.
Compared to actual accountin as described in t'e c'apters be+ore3
almost no system accounts are involved. 6ore comple) is t'e
encumbrance process itsel+. It is not -ust one -ournal at a certain point o+
time but a serie o+ moments at ,'ic' encumbrance amounts are posted3
liEuidated and posted aain.
Assumptions
#. It is possible to enter Encumbrance -ournals in Oracle 4eneral
5eder directly. Ho,ever t'is is not common practice and ,ill not
be covered in t'is c'apter as an event. @sually encumbrances are
created +rom events in Oracle Purc'asin and Payables.
%. Encumbrance -ournals are cateori=ed by a type. It is common to
de/ne t'e type o+ Commitment +or ReEuisitions and t'e type o+
Obliation +or Purc'ase Orders and Invoices. *'en t'e types +or
Invoice and Purc'ase Order are t'e same no additional
encumbrance -ournal ,ill be enerated at t'e time o+ approvin a
matc'ed invoice.
<. .'e c'are account and t'e budet account 'ave t'e same value.
In t'e Accounts and Accountin entries c'apters t'ese accounts
are identi/ed toet'er as t'e e)pense account.
Events
Eve
nt
nr.
Event name GL
Source
GL Category Encumbranc
e ype
Remar+s
# ReEuisition Purc'asin

Purc'ases Commitment *'en reservin or approvin

a ReEuisition.
% Cancel ReEuisition Purc'asin

Purc'ases Commitment
< Purc'ase order Purc'asin

Purc'ases Obliation:
Commitment
*'en reservin or approvin
a Purc'ase Order.
4 Cancel Purc'ase order Purc'asin

Purc'ases Obliation
5 Invoice Aunmatc'edB Payables Purc'ase
Invoice
Invoice *'en approvin t'e invoice.
6 Invoice Amatc'edB Payables Purc'ase
Invoice
Invoice:
Obliation
*'en postin t'e -ournals
+rom AP to 45.
7 Receipt Purc'asin

Receivin Obliation *'en postin t'e -ournals

+rom Purc'asin to 45.
)lii
Accounts
ype ! " # $ % & 1
Reserve +or
Encumbrance
Asset ' ' ' ' ' ' '
E)pense E)pens
e
' ' ' ' ' ' '
ReF) PO)
Invoice
Set o9
*oo+s
Reserve +or
EncumbranceC
'
E)penseCC '
C .'is account is al,ays enerated in 4eneral 5eder ,'en postin t'e
-ournals.
CC At a reEuisition and PO t'is account is enerated by Account enerator.
*'en enterin an invoice in AP t'is account is only enerated by
Account enerator ,'en a pro-ect is involved.
Accounting entries
ENC-! ReFuisition
Accounting entry .ebit Credit
E)pense ACommitmentB '
Reserve +or Encumbrance ACommitmentB '
ENC-" Cancel reFuisition
Accounting entry .ebit Credit
E)pense ACommitmentB '
Reserve +or Encumbrance ACommitmentB '
)liii
ENC-# Purc8ase order
Accounting entry .ebit Credit
E)pense AObliationB '
Reserve +or Encumbrance AObliationB '
E)pense ACommitmentB '
Reserve +or Encumbrance ACommitmentB '
ENC-$ Cancel Purc8ase order
Accounting entry .ebit Credit
E)pense AObliationB '
Reserve +or Encumbrance AObliationB '
ENC-% Invoice /unmatc8ed0
Accounting entry .ebit Credit
E)pense AObliationB '
Reserve +or Encumbrance AObliationB '
E)pense AObliationB '
Reserve +or Encumbrance AObliationB '
.'e debit entry o+ t'e E)pense account ta2es place a+ter t'e invoice is
approved and t'e concurrent proram Proram R Create Qournals is ran.
.'e credit entry o+ t'e E)pense account ta2es place ,'en t'e proram
.rans+er Qournals to 45 is ran.
ENC-& Invoice /matc8ed0
Accounting entry .ebit Credit
E)pense AObliationB '
Reserve +or Encumbrance AObliationB '
.'e debit entry o+ t'e E)pense account 'as already ta2en place in Oracle
Purc'asin. 8ecause t'e encumbrance type +or Purc'ase orders and
Invoices is bot' Obliation AAssumptionsB no debit entry ta2es place ,'en
t'e matc'ed invoice is approved.
ENC-1 Receipt
Accounting entry .ebit Credit
E)pense AObliationB '
Reserve +or Encumbrance AObliationB '
)liv
.'is -ournal entry only ta2es place ,'en receipt accountin is
implemented.
Notes
#. .o import encumbrance -ournals in Oracle 4eneral 5eder t'e
proram Create Qournals 'as to be run. .'is is "O. t'e case +or
encumbrance -ournals t'at are triered by t'e events Invoice
Amatc'ed M unmatc'edB and Receipt. .'ese are imported by t'e
proram Import Qournals. .'e reason is t'at t'e timin o+ t'ese
-ournals is related to t'e actual -ournals.
%. An encumbrance -ournal ,ill be balanced by t'e Reserved +or
Encumbrance Account. .'is 'appens ,'en t'e -ournals are posted
in 4eneral 5eder.
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:odules interconnectivity I Period-end close dependencies
6odule Interaction
Period Close Interdependencies
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