Accounts Payable Module in Oracle is concerned with the creation of Payables Invoices, Making payments, bill payments, and expenses and performing other financial activities related to all the expenditures and liabilities of an organization. This is a sub-ledger module in Oracle and all the data recorded in this module need to be transferred into General Ledger so that these are reflected in the financial statements of the organization. Any data which is not transferred to General Ledger will not be reflected in the financial statements. Oracle has provided a standard Program: Payables Transfer to General Ledger to Transfer the Data from AP to GL.
This Program when run in Oracle will transfer all the eligible records from AP to General Ledger. On the Invoices front once the invoices have been created in the system, Validated and Accounted for we run the Payables transfer to General Ledger Program to transfer the invoice details to General Ledger.
When the payable accounting entries are created, then run the program called 'Payables Transfer to GL' Program. Which sends the invoice entries and payable entries to GL interface .Then submit a request called Journal import to import journal entries to GL
After transferring the data to General Ledger Payables retains the accounting entries, so you can continue to review them in Payables. Also, after you post journal entries in Oracle General Ledger, you can drill down to the related accounting entries or transactions in Payables.
Before Submitting the Payables transfer to General Ledger Program the user needs to ensure that certain prerequisites are met:
1. The Period of which data is being transferred to general ledger must be open
2. The Invoices which are to be transferred to General Ledger must be validated and accounted.
Payables Transfer to General Ledger Program takes a number of parameters as input. The values of these parameters determine what activities will be performed by the program.
The Parameters taken in by the Program are discussed below:
1. Set of Books Name: Specifies the set of books for which the user wishes to transfer the data to general ledger. If you do not define a secondary set of books in the Payables Options window, Payables automatically enters the name of your primary set of books and you cannot change the default. If we have defined a primary and reporting set of books then payables will display Both as the default meaning that an entry will be created for both the set of books , In case the user wishes to perform transfer for a given set of books he needs to change the value manually.
2. Transfer Reporting books : When transferring the data should the data be posted in the reporting set of books also
3. Batch Name: When the data is transferred to General Ledger Oracle will create a journal batch for these records. The Batch name specified here will be used when creating a batch in general ledger so that the user can easily identify their payables batch in general ledger. If no batch name is specified General Ledger uses the journal source, request id , the Actual Flag (A, B, or E for actual, budget, or encumbrance), and Group ID to automatically create a name for your journal entry batch . In case the user supplies a batch name this batch name will be appended to the oracle generated batch name.
4. From Date: Payables will transfer all the eligible records having GL date on or after this date.
5. To Date: Payables will transfer all the eligible records having GL date on or before this date.
6. Journal Entry Category: We can select from the LOV
a. Invoices: This will transfer only the eligible invoices to general ledger
b. Payments: Payables transfers journal entry information for the payments.
c. All: Payables will transfer the journal information of both , Invoices and Payments .
7. Validate Accounts: When transferring the records from Payables to General Ledger if the parameter value is ‘YES’ Oracle will check for the validity of the accounts in general ledger and ensure that these accounts are active in GL , If the user selects a value ‘NO’ , the data will be simply transferred to General Ledger and the account validation will be done In the General Ledger Module later
8. Transfer to GL Interface: This parameter is used to specify whether we wish to transfer summarized or detailed accounting entry lines. Even if the user chooses summary he still has the option to drill down from General Ledger to individual transactions in Payables.
a. In Detail: Do not summarize the entries. Transfer one accounting entry for each accounting entry.
b. Summarize by Accounting Date: Summarize the accounting lines by account and date.
c. Summarize by Accounting Period: Summarize the accounting lines by account and accounting period.
9. Submit Journal Import: This parameter specifies if Oracle should run Journal Import after Transferring data into the GL Interface.
a. YES : Once the data has been transferred to GL Interface , Oracle will also run the Journal Import to create Journals for the transferred records
b. NO : Do not submit the Journal Import , the data will be available in the GL Interface for user reference.
Even After transferring the data to General Ledger the AR module will still retain all the entries that have been transferred and can be used by for future reference.
How to Identify the Invoices that are transferred to GL Interface ?
Oracle has provided us with 2 columns : GL_SL_LINK_ID and GL_SL_LINK_TABLE
GL_SL_LINK_TABLE: value is APECL for Payables actuals, and APENCL for Payables encumbrances.
GL_SL_LINK_ID: value is a unique, sequential number
User can use this combination to fetch the details of the transaction which has been transferred to GL
Below is list of the reference columns from Oracle site which get populated when the Payables data is transferred to GL Interface.
When you do a transfer in details , these information get populated in GL_Interface.
Purchase Invoices: Records for the Purchase Invoices journal category debit the Expense account (including exchange rate variance and invoice price variance accounting entries), and credit the Liability account.
· Reference21: supplier name
· Reference22: invoice ID
· Reference23: distribution line number
· Reference25: invoice number
· Reference26: AP Invoices
· Reference27: set of books ID
· Reference30: type of account charged: Liability or Expense
Payments: Records for the Payments journal category debit the Liability account, credit the Cash account, and are charged to the Discount, Realized Gain/Loss, Future Payment, and Rounding accounts.
USER_JE_CATEGORY_NAME: Payments
USER_JE_SOURCE_NAME : Payables
USER_JE_SOURCE_NAME : Payables
· Reference21: supplier name
· Reference22: invoice ID
· Reference23: check ID
· Reference24: check number
· Reference25: Paid invoice number
· Reference26: AP Payments
· Reference27: set of books ID
· Reference28: invoice distribution line number
· Reference29: invoice payment ID
· Reference30: account charged: Liability, Cash, Discount, Exchange Gain, Exchange Loss, Future Pay, or Rounding
Reconciled Payments: Records for the Reconciled Payments journal category are charged to the Cash Clearing and Reconciliation Accounting accounts. The Payables Transfer to General Ledger program populates GL Interface reference columns with reconciled payment information as follows:
· Reference21: supplier name
· Reference23: check ID
· Reference24: check number
· Reference26: AP Reconciled Payments
· Reference27: set of books ID
· Reference30: account charged: Cash, Cash Clearing, Charges, Errors, Exchange Gain, Exchange Loss, or Rounding
AP to GL transfer process is required for transferring all the AP data to GL so that financial reports can be prepared for all the expected revenue, receivables for the business.
No comments:
Post a Comment