Primary Ledger Vs Secondary Ledger:
Reporting Currency Vs Secondary Ledger:
Reporting Currencies are not the same as secondary ledgers. Looking at the 4 C’s that define a ledger, we have a chart of accounts, calendar, accounting method, and currency. If you only need multiple currencies to support your reporting requirements, use reporting currencies. If you need to account for your data using different calendars, charts of accounts, accounting methods in addition to currency, use a secondary ledger.
In case of Standard Accrual, Invoice and Payment Accounting will be there.
Reason: Traction happens in two phases.
Since you are not paying the amount immediately, you need to keep track of the amount needs to pay to the supplier after phase one. You maintain this amount in LiabilityA/C(Cr). After second phase, you debit your LiabilityA/C and credit your CachA/C which shows your cash flow from your organization to the supplier.
In case of Standard Cash, only payment accounting will be there.
Reason: While purchasing an item you pay amount immediately to the supplier. So you don’t have any debt to the supplier to record. so there is nothing to record in LiabiltyA/C.
AP Invoice: it is nothing but what amount going out towards receiving Raw material from the vendor or supplier. (Expenses)
AR Invoice: it is nothing but what amount coming in buy selling the product to customer or parties (Revenues)
Key Flex field: is used to capture mandatory information of the organizations
In GL 3 types @Accounting flex field (mandatory) @Reporting attribute (optional) @Gl ledger flex field (optional)
IN AP No flex fields
IN AR Two types @Sales Tax Location flexfield (mandatory) @Territory Flexfield
In FA Three Flex field i.e. Category (mandatory), Asset key (mandatory), Locations flex field.
AR TRANSACTIONS (Invoice):
Payables uses payment terms to automatically calculate due dates, discount dates, and discount amounts for each invoice you enter. Payment terms will default from the supplier site. If you need to change the payment terms and the terms you want to use are not on the list of values, you can define additional terms in the Payment Terms window.
Making payments to the suppliers in 3 ways. what ever you have ordered for the PO we will make the payment for the suppliers in 2-way(we will compare two documents PO and Invoice).
eg:Suppose we Had given PO for 100 items ,for that we will receive invoice for 100 items. so that we will make payment for that 100 items. 2) In 3-Way we will compare 3 documents PO+reciept+Invoice Eg:Suppose we have ordered 100 items in PO. But we had received only 80 items ,But we had received invoice for 100 items. so, we will make payment for only 80 items 3) IN 4-Way we will compare 4 documents PO+Receipt+Invoice+Inspection Eg:Suppose we have 100 items in PO. Suppers send us 80 items We will do inspection on those items what ever we have received, If 10 items got damaged. finally, we are going to make payment to the 70 items only.
Typically, the last day of the fiscal year is used as an adjusting period to perform adjusting and closing journal entries. Once you begin using your accounting calendar, you cannot change its structure to remove or add an adjusting period. Choosing whether to include an adjusting period or not in your calendar is a very important decision. You can have an unlimited number of adjusting periods.
AP INVOICES: 11i invoice are there
Journals it is used to record the business traction it contains debit and credit lines always debit must be equal to credit. Types of journals are Suspense Journal or Unbalanced Journal, Recurring Journals and Reversal journals.
Sales orderàBook OderàRelease the OrderàConfirm the OrderàClose the OrderàImport InvoiceàPrint the InvoiceàRevenue RecognitionàDefer the Cost of Goods àenter ReceiptàApply the Receipt.
Trlation: It is used to trlate functional currency balances into foreign currency balances at the account level
Revaluation: It is used identify the unrealized gain or loss .which is occurring on the currency fluctuation.
This particular program is run in order to trfer un-accounted invioce to next opened period during period end closing of Accounts Payable. In fact you can’t close Payable Period if you have Un-Accounted Invoice in Payables. In order to negotiate (Trfer) these invoice to next open period this program is run. So that the Payable period can be closed.
Its negative amount identified by Customer and sent to Supplier.
Ex: Purchase Returns.
Its negative amount identified by Supplier and sent to the Customer.
Ex: TDS Payables.
Standard Invoices: Standard Invoice are invoices from a supplier representing an amount due for goods or services purchased. Standard invoices can be either matched to a purchase order or not matched. Standard invoices must be positive amounts.
Mixed Invoices: Mixed Invoices can be matched to both purchase orders and invoices. Mixed invoices can have either positive or negative amounts.
Prepayment is Advance Payment made to supplier by Organization or Employee. Later it will apply against the feature debit.
These are two types:
You can dynamically create new account code combinations when entering data by enabling dynamic insertion in the Key Flexfield Segments window. The alternative method for this is, you can require all accounts to be define manually in the Accounts Combinations window.
Points to Remember: