Order Management, Receivables and General Ledger Cross Flow

Order Management to Receivables Flow

If you are using Oracle Order Entry, no accounting information is available until you run AutoInvoice. Order Management Transfers all the transactions to Oracle Receivables using the Receivables Interface. When you run AutoInvoice that creates the actual transactions and uses AutoAccounting to derive the segment values for the GL Accounts.
Whether you are manually entering your receipts or processing them through AutoLockbox, the accounting information is automatically determined by Oracle Receivables when you create and apply the receipts (not when it is still a “QuickCash” batch). The values used are based on the setup values for the bank where the receipts were deposited and the invoices they are paying.

General Ledger Interface

GL Interface Transfers accounting information from Oracle Receivables to Oracle General Ledger. If you have properly set up Oracle Receivables, you should never have to create manual journal entries in your General Ledger and the two systems should always be in sync.
When you invoke the General Ledger Interface process, you initiate multiple programs that:

• Finds all of the records for the period you specified that have not yet been passed to the General Ledger;
• Determines if the debits equal the credits;
• Passes the data to GL for editing; and
• Marks the records as having been passed (so they will not pass twice).
• If you have specified that you want the Journal Import to also run, this process verifies that the individual segments and combinations of segments are valid. Only when the Journal Import completes successfully are the Journals available for posting.

Always run the General Ledger Interface using the starting date of the period through the last day of the period. This is applicable no matter when you are running the process or if you know you will never have activity for that date, since sometimes the system uses dates other than the dates you expect.
Depending on which patches you have applied, you may or may not see the Unposted Items Report. If this report does run, always check each page to ensure that you have no items that could not be passed to the General Ledger. If anything besides headings appears, work with your IT department to resolve (since this is usually caused by a bug).
Verify that the amounts in the General Ledger Interface Report are reasonable and that the debits equal the credits.
Verify that the Journal Import has a status of “SUCCESS.” If not, you had a problem that will need to be resolved or none of the items in the batch will be available for posting. Generally you have a problem if an account was valid when the activity was created, as you know, you cannot save with invalid values but, someone has since disabled either a segment or the combination. An example of this is your Accounts Receivable account that may have been valid when the invoice was originally created but it is not longer valid, and a receipt was just applied against it. When you apply a receipt to an invoice it always causes an offsetting entry against the original Accounts Receivable account.
Should this occur, I suggest that you:

• Re-enable the segment or combination;
• Re-run the Journal Import (in GL — be sure to include the applicable id);
• Create a manual journal entry (also in GL) to move the activity from the bad account to the proper account (this is my one exception to never creating manual journal entries); and
• Re-disable the segment or combination.

By making the corrections in this way you are able to keep your GL in sync with your AR activity and you have an audit trial of what you did to make the correction. You have the option to correct in the Import Corrections form (in GL), but you lose the audit trail of what you did and why. I also recommend noting what you did and why and storing the notes in a handy binder so you will be prepared when the auditors ask why you did what you did.

Journal Entries Reports

The Journal Entries reports are the best way to verify the actual accounting for Oracle Receivables’ activities and the only way to view the accounting for the foreign currency gains and losses. There are actually four reports that give you varying levels of details regarding the journal entries you will be creating or have already created. These reports may be run at anytime before or after you run the General Ledger Interface. Your options are: Detail by Account (very large), Summary by Account, Detail by Category (also large) and Summary by Category.
I always recommend that you at least run the Summary by Category and review to insure that there are no invalid or illogical accounts, prior to running the General Ledger Interface. If you find funny accounts, you can correct or create offsetting entries prior to posting. Run the Detail by Category (just for that category and account) to see which specific activities used the funny account. Correct the activity if possible. If not possible (i.e., adjustment), create an offsetting entry using the proper account.
If you run this report for Unposted Items only, you must leave the Posted Date range blank or nothing will appear on the report