In this video I'm going to demo our financial model. General Ledger. General Ledger. General Ledger is the first model in Oracle financials. What is agenda ledger agenda ledger is their central repository of all other models. General Ledger is the central repository of all models.
What is the repository it's a storage location. It is a storage location. In the GL we are going to store all the different models transactions. So that's why we call it is as a central repository. in Oracle Application, there is a different models out there right like financial model sem, supply chain management, HR and CRM, these are the different models okay. So, therefore all models are key financial is their most important model in the financial the GL Elisa, Heart of the RP bi because here we are going to define our company structure.
Here we are going to define our company structure. And whenever we complete any transactions, all the transactions are stored into that GL. All the transaction details are stored stored into that GL. So that's why we call the GL as a central repository. So we are going to define different type of transactions different type of setups into that GL module. Let us see what are the setups and what are the transactions we are going to create within the GL model.
The first setup is go to define that flexor freeze flexor face actually the Oracle Application provided different type of the flexor things. There is a two types of flexible sat there. The first one is the key flexor failed and second one is the script to flex surfing. The Oracle Application provided two types of flexo fails. The first one is a key Flexi fail. And second one is that this tape too flexible.
What is the key flexible, key flexible captures their key business information are mandatory information of the business of the organization. Key flexibility captures key information are mandatory information of the business and there is a descriptive flex field. The descriptive flexible captures the exchange information of the organization. Okay, suppose if you want to work on the GL module, first we'll define a key flex field. How to define the key flex offense. Basically, the Oracle Application provided different type of key flexibilities in each and every module.
The application provided different type of the key flex fields in each and every module. But out of all key flexes, the GL key flexible is the most important flexible. What does the flexor fills in GL? There is a three types of lexical sat there. The first one is GL ledger key flexible. Second one is reporting attribute and third one is accounting key flexibility.
These are the three key flexibilities in GL module out of three key flex okay the accounting key flexible is that mandate reflexively with help of this accounting key flex of fame, we are going to define that our company structure our company structure. So, how do you find the company structure? So, what does a conference you want to create me? Actually if you want to define a key flexible structure will require that forces will require that forces is a key flexible compressing of that forces. What kinds of forces the forces One music check of icons second one is the currency third one is the calendar and fourth one is a convention convention Okay, the first of all music chart of records, what is a chart of accounts? a chart of accounts is a collection of segments.
A Chart of Accounts is a collection of segments, what is a segment? A segment is a one field we can store some list of values into that segments. If you want to constructing any company Chart of Accounts, minimum we require that three segments only. So, what are the three segments? The first one is a company segment. Second one is that department segment and third Mr. Atkinson So, these these segments are the mandatory segments if you want to constructing any company chart of accounts will require three types of segments, but does it three segments The first one is a company segment.
In the company's segment we are going to start out all companies names. Suppose if you have multiple companies, we are going to store the company names into our company's segment. Under the department segment, we are going to store all the department details. Any company you take there is a different type of departments are there right. So, we'll store all the department details under their department segments. And the last one is a count segment account is the mandatory segment.
In this segment, we are going to to store all our company mandatory accounts because the company maintains different type of accounts right, like a cash account bank account purchases, sales, liabilities, assets, expenses, losses, incomes gains. So, they maintain different type of icons, all the icons information is saved into that account segment one by one. So, these are the three segments, maybe under the out of three two as a mandatory company account department is not mandatory if you want to create you can create a device No need also that company account is to us there are mandatory segments Okay, with the help of this three segments, we are going to constructing our company chat app icon. So these are the three with minimum will create a three and maximum is 30. According to our client requirement we can define maximum that is segments for example you our client asking I want to say location wise information wherever company located at the time we'll create a one more segment or location All right, I want to see product wise information because any company you take there is a different type of products right?
If you want to store that data according to the product wise we'll create a one more segment per product okay like this, you have to define that segments according to our requirement, minimum is two as a mandatory and maximum is 30 segments. Okay, next one is the currency. What is a currency means currency is nothing but a company functional currency. currency is nothing but a company functional currency. Functional currency means what currency the company used while defining that transaction. Actually nautical application already different types of currencies are there already currencies are defined according to the location according to the country, the currencies are defined, but out of all currencies we need to create our one currency or you can select the existing currency also is the company maintains only one functional currency with only one currency that currency called as a functional currency of your company.
How to decide the functional currency means based on your company location wherever company's located So, based on that location we are going to define our functional currency suppose our companies in India we have To use a currency as INR only suppose your company in us you have to use a currency as $1 why because the only we have to use it currency right local currency right. Okay. Always the company maintains only one functional currency, but they can have multiple reporting currencies but they can have multiple reporting currencies but as the reporting currencies a partial your functional currency, what are the currency they used so that all currencies comes under the reporting currency a part of your functional currency for example, your functional currency Diana, our company in India, our currencies are not, but you have a client all over hold on right. So, if you have a client in us at the time we required $1 currency See right but our functional currencies are not on.
If you want to work on with the dollar currency at the time we require that conversion currency conversions, we have to go for currency conversions. If you want to work on the multiple currencies compass that we have to go for that currency conversions, the current if you want to do the currency conversions will require that conversion rates the conversion rate is not a fix is fluctuating daily. Whenever you want to do the conversion will require up to date conversion rate. Based on the conversion date, the currency is converted from INR into USD USD to INR INR into Emirate currency and read currency into UK dollar. Whatever it may be, according to our requirement Okay, so by default compulsive A must and should select one currency as our functional currency. And third one is a calendar.
What is a calendar a calendar can contain some months right different drop months are there. In Nigeria there is a two types of calendars are there. The first one is the fiscal calendar and second one is the financial calendar. The first one is the fiscal calendar and second one is staff financial calendar. What is your fiscal calendar a fiscal calendar is a standard calendar starts from first to January and ending is 31st of December. Total it contains that 12 months 12 periods we call the month as a period and you take the financial calendar starts from April 1 and then English that refers to March next year.
So this kind of is also contents totally 12 period. According to the periods we are going to define the transactions one by one. Okay whenever we assign the calendar to our flexibility, so we are going to define it transactions according to the period wise, date wise. Okay, so first we'll go to suppose whenever we create a new standard calendar according to the database period ways that transactions are saved into the ledger. One calendar is mandatory, maybe you can create any type of calendar. And the last one is a convention.
What is the convention it's a enhancement in our tool. The convention is enhancement in our tool. So this is not available in the 11. A version 11 is the old version now. Now the latest version is our tool. In our tool, the convention method is that enhancement.
What is a convention is a subledger method is simply a method Sub ledger method is salia method. What is SLE? It's a sub ledger method. Actually this method is not mandatory into the GL. This method is not mandatory into the GL, if you apart from the GL, if you want to work or in any other models like payables, receivables, purchasing inventory, order management, say partion the GL if you want to work or in any other models, this method is mandatory. By default darcheville application provided standard SLM method, we must enter assign the method before going to work on other modules.
Because of this method, whenever we complete any transactions in any other models, by default, are saved into that GL module. So that's the reason only a GL is a central repository of all the source materials Okay, so firstly, Go to define the structure. After that in the GM there is a different type of transactions are there likely are going to rise a different type of journal entries? What is a journal a journal is a comprising of the two lines in journalism comprising of the two lines, what is it two lines the first one is a debit line and second one is a credit line. However, it becomes debit how it becomes credit means according to the accounting rules according to the accounting rules, but as accounting rules, what comes in debit what goes out credit, all expenses losses are the debit, all incomes and gains are the credit.
According to this tools, whatever we comes into the business that become as a debit, whatever goes out of business that comes with credit only. Whatever expenses whatever losses You can help you can help. So, that is nothing but a debit what we received as incomes as against what we receive that is nothing but credit. Okay based on this rose, we are going to rise a different type of the journal entries, standard journals, recurring journal suspensions budget journals, multiple currency journals, this is a different type of general sat there, according to the requirement we are going to rise the journals one by one. After rising the journal then we have to pose a gentle into the ledger and that journal status is completed. And also we can work on the multiple currency transactions Also, if you want to work on the multiple currency transaction before that, first we need to define a conversion rates.
The conversion rates is not a fix is fluctuating daily, daily we need to upload that conversion If you want to do the conversion dial and the rate is different from one country to another country okay and also there is a cross validation those are there. So, we are going to define the budgets in the organization and we are going to define a consolidation process in the consolidation we are going to do the translation revaluation of currency. So, in the GL there is two types of reports are there, one is a trial balance report and second one is FSC. So, these are the two standard reports in GL now, we are going to download these two reports with help of our primary ledger. So, these are the different topics we are going to cover into the GL model. Okay, so, that is To type reports, SLC Fs is a financial statement generator report trial balance report as a function consultant we are going to define these two reports into that GL model with help of the primary ledger Okay, so these are the different topics we are going to cover into the GL module.
Okay, so first we will define the key flexible structure comprising of the three C's Chart of Accounts currency calendar, After defining the ledger now go to opening the accounting careers after that go to definer transactions one by one. So this is all the different tax transactions we are going to create within the GL model with the help of that key flexible structure means primary ledger. Okay,