AR Receipts to GL link in oracle R12

AR Receipts to GL link in oracle R12

SELECT glp.start_date,
       gjh.je_header_id,
       gjh.doc_sequence_value voucher_no,
       gjh.je_source,
       gjh.je_category,
       entity_code,
       gjh.period_name,
       gjh.status,
       gjh.actual_flag,
       gjh.default_effective_date,
       gjl.je_line_num,
       gjl.code_combination_id,
       gjl.description voucher_desc,
       xal.accounted_dr debit,
       xal.accounted_cr credit,
          gcc.segment1
       || '-'
       || gcc.segment2
       || '-'
       || gcc.segment3
       || '-'
       || gcc.segment4
       || '-'
       || gcc.segment5
       || '-'
       || gcc.segment6
       || '-'
       || gcc.segment7
          account_code,
       TO_CHAR (acr.receipt_number) trx_num,
       acr.receipt_date trx_date
  FROM gl.gl_je_headers gjh,
       gl.gl_je_lines gjl,
       gl.gl_code_combinations gcc,
       gl.gl_periods glp,
       gl.gl_import_references imp,
       xla.xla_ae_lines xal,
       xla.xla_ae_headers xah,
       xla.xla_events xe,
       xla.xla_transaction_entities xte,
       ar_cash_receipts_all acr
 WHERE     1 = 1
       AND gjh.je_header_id = gjl.je_header_id
       AND gjl.status || '' = 'P'
       AND gjl.code_combination_id = gcc.code_combination_id
       AND gjh.period_name = glp.period_name
       AND glp.period_set_name = :p_period_set_name
       AND glp.adjustment_period_flag <> 'Y'
       AND gjh.je_source = 'Receivables'
       AND gjl.je_header_id = imp.je_header_id
       AND gjl.je_line_num = imp.je_line_num
       AND imp.gl_sl_link_id = xal.gl_sl_link_id
       AND imp.gl_sl_link_table = xal.gl_sl_link_table
       AND xal.application_id = xah.application_id
       AND xal.ae_header_id = xah.ae_header_id
       AND xah.application_id = xe.application_id
       AND xah.event_id = xe.event_id
       AND xe.application_id = xte.application_id
       AND xte.application_id = 222
       AND xe.entity_id = xte.entity_id
       AND xte.entity_code = 'RECEIPTS'
       AND xte.source_id_int_1 = acr.cash_receipt_id
       AND gjh.default_effective_date BETWEEN :p_period_from_start_date
                                          AND :p_period_to_end_date
       AND (gjh.actual_flag = :p_actual_flag OR :p_actual_flag IS NULL)

Oracle fusion blog

Flex-field Qualifiers and Segment Qualifiers - "Natural Account"

Flex-field Qualifiers and Segment Qualifiers - "Natural Account"

Let us go step by step for understanding the significance of Natural Acccount Qualifier,

1.       Types of Natural Accounts and their Details
2.       Flexifield Qualifiers Setup
3.       How and where the type of account was assigned to Natural segment values in oracle apps 


Types of Natural Accounts and their Details


Flexifield Qualifiers Setup
Flexifield Qualifiers are registered as part of Flexifield Registration.
Navigation: Flexifield Registration Form


Query For the title “Accounting Flexifield”


Then Click the Qualifiers button in the above form to check the registration of Flexifield Qualifiers and Segment Qualifiers.


To check the types of Segment Qualifiers allowed… Query for the Quick code type mentioned in the above screenshot in quick codes form.



In Oracle General Ledger, when we attach the “Natural Account” Flexfield Qualifier to a segment. System attaches the above set of nature on the Value form. When we add the Natural Account Value, we have to define the nature of the account as well.

How and where the type of account (Segment Qualifiers) was assigned to Natural segment values in oracle apps.  

Query for the title “Accounting Flexifield” in the SEGMENTS Form


Click on the segments button in the above form to view segment details


Choose the appropriate segment and click the “Flexifield Qualifiers” button to view the below screen


Close the form and open the “values” to check the values attached to segment


Query for the Accounting Flexifield

Choose the segment which has flexifield Qualifier as “Natural Account” and then click the “Values, Hierarchy, Qualifiers” tab to checkthe segment qualifiers assignment.



" When we define the natures of the account, the accounting rules of Debit and Credit works accordingly. Like in Payables, the line item is Debit side, so if you’ll give an expense or asset account, it will increase and vice versa. Thus the Flexifield qualifiers has more significant in COA setup".

Types of Natural Accounts in Accounting

Types of Natural Accounts in Accounting

There are 5 natures of account. Every account can have any one nature and that’s why we can also call it natural account. These natures are:
  1. Assets
  2. Liabilities
  3. Revenue
  4. Expenses
  5. Owner’s Equity
ASSET: Literally asset is any thing which is valuable to a person, organization or any entity. For example we say that “his quick learning ability is an asset to him” or “Her writing ability is her asset”. Why do we say that? Because quick learning skill or writing ability adds value to a person. A writer sells his writing skills to earn money, similarly in terms of business anything which is valuable to a business is the asset.
Say your organization is a pharmaceutical and manufactures Medicines, then all the chemicals used to manufacture medicine is your asset or in other words the Raw Material is your asset. The cash your organization own is an asset because it can be used to buy items or pay your employee who in turn are used to run your business. There are different types of assets, the broader categories of asset are Current Asset and Fixed, but let’s not discuss it here. For now it is enough to know that asset is anything which is valuable to your organization.
Asset INCREASES when it is Debited and DECREASES when Credited.
Any organization which is registered with the government and exists as Legal Entity is obligated to disclose its Assets on the balance sheet to the government and its Creditors. You might ask Who are creditors and Why is it that an organization is obligated to disclose asset to them? With Creditor comes in the liability.

LIABILITY: Comes from the word “Liable”. Literal meaning of Liable is “to be obligated” , “to be responsible” or “Legally responsible”. In terms of accounting you become liable, responsible to pay when you buy or purchase any thing from another entity. You are liable to compensate whatever you’ve bought. Generally an organization records its liability and pays it afterward. Again, there are different types of liabilities like Short Term Liability and Long Term Liability.
Liability INCREASES when it is Credited and DECREASES when Debited.

OWNER’S EQUITY: This is the share of owner in the business.
Equity INCREASES when it is Credited and DECREASES when Debited.

REVENUE: By definition it is the total gain before inducting any expense. It is mostly associated with the Asset. When any organization sell goods or renders its services, it records an increase in Asset and with this increase comes the gain it has made from selling the goods or services. This gain is called Revenue or Income.
Revenue INCREASES when it is Credited and DECREASES when Debited.
Revenue are not displayed in Balance Sheet. They are reflected in Owner’s Equity.

EXPENSE: By definition any payment made is an expense. How payments are made? Either by Cash or Credit which eventually means Cash. So redefining Expense “The outflow of cash to any person or organization for its supplied Goods or rendered Services”. We incur expenses daily, for example, taxi fare is an expense, dine-out payments are expenses. Expenses are associated with Liability. Whenever an organization books a liability, it is mostly against some expense. There are different type of expense
Expense INCREASES when it is Debited and DECREASES when Credited.
Following table shows the Tabular form of the effect
Nature
DEBIT
CREDIT
Asset
Increase (+)
Decrease (-)
Liability
Decrease (-)
Increase (+)
Equity
Decrease (-)
Increase (+)
Revenue
Decrease (-)
Increase (+)
Expense
Increase (+)
Decrease (-)

Accrual Basis Accounting for Oracle Apps Beginners

Accrual Basis Accounting for Oracle Apps Beginners


Introduction:

Accrual Basis Accounting is a system of accounting that matches revenues and expenses, respectively, to the period they were earned and incurred

With the accrual method, you record income when the sale occurs, whether it is the delivery of a product or the rendering of a service on your part, regardless of when you get paid.
On the other hand, you record an expense when you receive goods or services, even though you may not pay for them until later.

The accrual method gives you a more accurate picture of your financial situation than the cash method. This is because you record income on the books when it is truly earned, and you record expenses when they are incurred. Income earned in one period is accurately matched against the expenses that correspond to that period, so you get a better picture of your net profits for each period.

Revenue recognition: Revenue is recognized when both of the following conditions are met,
  • Ø      Revenue is earned.
  • Ø      Revenue is realized or realizable.


Revenue is earned when products are delivered or services are provided. Realized means cash is received. Realizable means it is reasonable to expect that cash will be received in the future.Expense recognition: Expense is recognized in the period in which related revenue is recognized

Timing differences in recognizing revenues and expenses:

Four types of timing differences
1.       Accrued Revenue:   Revenue is recognized before cash is received.
2.       Accrued Expense:   Expense is recognized before cash is paid.
3.       Deferred Revenue:  Revenue is recognized after cash is received.
4.       Deferred Expense:  Expense is recognized after cash is paid.

Accrued Revenue Example:
Example: Products are sold at $5,000 on May 1, 2010 and cash is received on May 10, 2010.

Date

1-May-10
Revenue is recognized.
10-May-10
Cash is received.


Date
Account
Credit
Debit
1-May-10
Accounts receivable

5000
1-May-10
Sales
5000

10-May-10
CASH

5000
10-May-10
Accounts receivable
5000



Accrued Expense Example: On May 1, 2010, Company A borrowed $100,000 from a bank and promised to pay 12% interest at the end of each quarter.


Date

31-May-10
Interest expense is recognized for May.
30-Jun-10
Cash is paid at the end of the quarter.

Date
Account
Credit
Debit
1-May-10
CASH

100,000
1-May-10
Borrowings From Bank
100,000

31-May-10
Interest expense
1000

31-May-10
Interest Payable

1000
30-Jun-10
Interest expense
1000

30-Jun-10
Interest Payable

1000
30-Jun-10
Interest Payable
2000

30-Jun-10
CASH

2000


Deferred Revenue Example: On May 1, 2010, Company A had a new lease contract with a tenant and received $6,000 for two month rent.


Date

1-May-10
Cash is received.
May 31 and June 30 2010
Revenue is recognized at the end of May and June

Date
Account
Credit
Debit
1-May-10
CASH
6000

1-May-10
Unearned rent revenue

6000
31-May-10
Unearned rent revenue

3000
31-May-10
rent revenue
3000

6/31/2010
Unearned rent revenue

3000
6/31/2010
rent revenue
3000


Deferred Expense Example: Company A purchased an insurance for a period from May 1, 2010 to July 31, 2010 and paid $6,000 cash for three month insurance premium


Date

1-May-10
Cash is paid.
May 31, June 30, July 31, 2010
Expense is recognized at the end of May, June and July.


Date
Account
Credit
Debit
1-May-10
Prepaid Insurance
6000

1-May-10
CASH

6000
31-May-10
Insurance Expense
2000

31-May-10
Prepaid Insurance

2000
30-Jun-10
Insurance Expense
2000

30-Jun-10
Prepaid Insurance

2000
31-Jul-10
Insurance Expense
2000

31-Jul-10
Prepaid Insurance

2000