1. General Ledger Questions Part 2:
11)Recurring Invoice
12)Budget's
13)After permanently closed period. in the same period how to pass transactions.
14)We passed one invoice with 90 days payments term but we paid amount to supplier after 10 days how do in apps a.p
15)What is use of set of books
16)Debit invoice and credit invoice accounting in apps
2. General Ledger Questions Part 1
1)Invoice approval work flow
2)Invoice validations
3)Invoice accounting
4)Auto invoice in Accounts pay ables
5)Legacy P.O's conversions
6)legacy Invoice's conversions
7)Autoaccounting,autocash rule set
8)How many set of books attach to one legal entity
9)Many set of books attach to one operating unit
10)Expense invoice
3. Do you know what is meant by business?
Business is an activity performed with the sole intention of earning profit. The activity may vary according to the scope and volume.
4. Do you know what is about Future Period and Adjustment Period?
Future period means in oracle not yet opened, u can't post any entry in this period, U can have two future periods or one displayed in calander options, adjustment period means, normally comany may have 12 months, or 13 months as per co's requiremens, if u have 13 month, jan to dec its 12 months, addtional one month i.e dec say example 25th to 31st Dec. So here we have 13 months, additional 5 days called adjustment period, this is use full to enter additonal entries Audit time,if your dec period is closed, u may still have 5 days period to entery adjustment entries given by auditiors.
5. Explain why do companies need adjusting journal entries?
Current account balances may not represent correct balances due to following reasons:
a. Company made mistakes in preparing journal entries in the past.
b. Accounting records are not updated to reflect new transactions or amount changes in previous transactions.
Adjusting journal entries are usually prepared at the end of an accounting period to update account balances to reflect correct balances as of the balance sheet date (the date at the end of an accounting period).
The timing differences in recognizing revenues and expenses between accrual basis and cash basis accounting are frequently corrected by adjusting journal entries.
6. Explain adjustments for saving a/c of branches and Head Office?
year closing of banking software which General ledger balance carried forward and which is closed. and tell me adjustment about the saving a/c of branches and Head Office for year ending operation
7. Tell me how the Sub Ledgers(AP,AR) integrate with GL?
we can integrate the general ledger with subledger through reconsilation account.
8. Explain scenario of Multi-Org. setup?
Meaning of Multiorg:Its a serverside enhancement which supports multiple organisations with single installation of oracle application product and its keep and stores data secure and safe way and seperately.
MULTI-ORG STRUCTURE
BUSINESS GROUP (HEAD COMPANY)
LEGAL ENTITY(SET OF BOOKS)
OPERATING UNIT(AP,PO,AR,FA)
INVENTORY ORG
10. Explain flow in General ledger?
1 Define value sets : setup--> financials--> flexfield--> key--> validation--> sets.
2.Define accounting flexfield(key flexfield) : setup--> financials--> flexfield--> key--> segment
A. Define segments
B .Assign value sets to segments
c.assign the flexfied qualifiers
d. select allow dynamic inserts or cross validate segment.
3.define values for value sets : setup--> financials--> flexfield--> key--> validation--> values
4. define set of books : setup--> financials--> books
5.defining responsibility in system administrator module : security--> responsibility--> define
6.assign your responsibility to the user in sysadmin module: security--> user--> define
7. assign your set of books to the responsibility in sysadmin module through the profile option GL: SET OF BOOKS NAME' : profile--> system
8.go to your responsbility and open periods : setup--> open/close
9.start entering transactions using journal form : journals--> enter
11. Can you please explain the difference between nominal, real and personal accounts?
Accounts of assets is called Real Accounts.
Accounts of persons or institutions is called Personal Account.
Accounts of expenses/losses, incomes/gains is called Nominal Account.
12. Explain what is planning budget in general ledger?
planning is generally part of controlling. however, we can plan for the general ledger accounts in finance module of sap. this can be done to prepare the variance analysis within financial accounting.
When company dispose there assets the following transaction takes place
Assets = Liabilities + Shareholders Equity
Suppose assets beginning balanceis $4900and accumulated depreciation is $1900
When you want sell, both of these should beeliminated from account book so asstes $4900 and accumulated depreciation debited by $1900,so both assetswill be clear.
Let us come for retained earnings,
This depends on profit or loss.
When it is disposedit depends uponassets sold more than or less than book value.
If more than book value is retained earnings is credited, if less than book value is retained then earningsis debited
14. Do you know what is an accrual?
Accrual basis of accounting means that the costs or revenues of events are recognized in the period in which they occur, though the cash flows may take place in another accounting period.
Like for a period of July 05 - October 05, if the organization was due to receive 1000K from an individual X but has not recieved yet for some reason, will recieve in November 05. It would be still be accounted for in the period July 05 - October 05 and not the period starting from November 05.
15. Tell me what is the significance of responsibility in oracle applications?
users cannot access the concurrent programs ( just like Forms) until unless the program is attached to a responsibility through a Request Group. Thus the responsibilities provide the complete security by restricting access to forms, reports, tables( through data-groups) and also to specific records ( through profile options like Set of Books Id, MO Org Id).
16. Can you please explain the difference between Letter of Credit and Letter of Guarantee?
Both Letter of Credit and Letter of Guarantee are commitment to payment by the issuer of the instrument (generally a Bank). In letter of credit, the issuer has to fulfill his commitment on fulfilling the terms and conditions of the letter of credit by the beneficiary. Whereas, on the other hand, in letter of guarantee the issuer has to make payment, when the beneficiary is unable to fulfill the terms & conditions of the letter of guarantee.
17. Explain Business unit, Legal entity, operating unit, Business Group?
1. What you mean by Business unit, Legal entity, operating unit, Business Group.
2. Can u tell me the Setup's for Auto Invoice and Multi-org.
3. What u mean by Parent and child relation ships and when we are using the same?
I believe that cash discounts are taken into P&L and not to the B/S.
The journal would be :
Dr. Bank A/c 90
Dr. Cash Discount given A/c 10
Cr. S. Drs 100
So it is taken into P&L and adjusted in the Net profit itself..
Hence, you add the Net profit with your capital in B/S.
So, net effect is given there.
"Prepaid Customer' Reconcillation Details. or Advance billing Customer List.
20. Tell me what experience do you have with general ledger?
General ledger contains all the ledger accounts including vendors,customers, revenue, asset & liability account type which are ultiamtely part of Chart of Accounts applicable for a particular company code.
21. Tell me what are the gaps in GL, AP?
every project has 5 phases.
In the first phase u define the business process. in this the client entire business structure represents.
in the second phase u define the blue print according to the requirement of client as specified in business process document(1 phase).
in the third phase u map the blueprint into SAP while defining and integration some problems will appear.ex posting periods,
the problems appearing in the realization phase basing on blueprint are called GAP. function consultants are together solve these GAPS.
22. Tell me which items belong in balance sheet statement and do not appear in income statement?
Captial A/c , Drawings a/c , Fixed assets purchasing and so on. According to the double entry system each transaction have two side debit and credit. there are some transaction satisfied with balance sheet items. For ex, advance given to manager for travelling. Mangaer is to be treated like debtors. other side cash is going outside will cash balance both items appear in assets side of the balance sheet.
23. Tell me what is fiscal year? Compare it with normal year?
Fiscal Year means the financial year .In india it is April to march. In singapore it is July to june. In hongkong it is Jan to dec.
Normal year is nothing but english calendar year jan to dec. If the company operating more than countries and it faces such a situation changes in finacial year , they will go for comparison analyis. in such that case the company may suggests all the country to follow the uniform year for make a conclusion.
A template used for document creation in which default values are provided for the posting of a business transaction.
An account assignment model may contain any number of G/L line items, and can be changed or enhanced as needed. Unlike sample documents, account assignment models may contain incomplete G/L line items.
Transaction Code used - Fast Entry (F-02).
25. Tell me what is the procedure for creation of Retained earnings account in different COA?
t/code ob53, give COA and then type X or Y in pl account head and then give the account number in the acoount head.... this u can create prior to the creation of the account group reserve and surplus as well as after creating the account group .....
26. What is your experiences with cash flow statement? How is a cash flow statement generated?
Cash Flow statement is a generate income, not the invoices. there are two types of cashflow 1.
Inflow 2. Outflow
1 Inflow: eg. if you received cash from your credit customers,
you will decrease your debtors and it's become inflow to your cashflow statement. Therefore, it's mean that whenever u received in cash that is called inflow.
2.
Outflow: eg. if you made a payment to your suppliers, you will decrease your
creditors and it's outflow, therefore decrease in creditor is outflow.
Direct Expenses are those expenses which are incurred in relation to manufacture of products directly Eg: Machinery repairs, Labour, Factory etc.
Indirect Expenses are those expenses which are incurred after manufacturing of goods. Eg: Administrative Exp, Advertisement, Selling & Distribution etc.
28. Explain what is the effect of not reconciling the expense accounts?
If the company is being reimbursed by another organization for the expense incurred earlier then it will be a credit to the expense account. If the expense was over accrued and the actual is lower than the accrual then it will be reversing entry reducing the expense.
29. What is Salary Computation? How to file the salary returns?
Generally, the salary is computed as
Basic : 30 - 35% of CTC
HRA : 50% of Basic
DA : Regulated by Govt. notifications (nominal amounts)
CCA : Is normally a filler on negotiated salary (put the balance amount in
this). Otherwise, 30% of CTC
Gratuity : Is statutory (consider 4.81%)
Superannuation : 15% - 27% of basic (27% if there is no PF)
Leave Encashment : Taxable under provision of IT Act.
Tax deduction is based on various things like HRA claim (least of the 3 conditions under the IT Act - could also be non-taxable if claimed properly), investments done by employee, attraction of 80C/cca, (basic, cca fully taxed based on IT slabs), etc. Please refer to the IT Act (direct taxes) or your Finance deptt for more details..)
The above comp. structure can be tweaked or more components added based on the Co's requirements. That needs a discussion.....It may vary co. to co. or industry to industry
consolidation is a gathering the information in sap for specific purpose and useful information for management
31. Explain what is special GL in SAP?
Special GL is an GL other than the normal GL for AR and AP. Like Down payments (made or received), Bills of exchange etc.
Yes, there would be two accounts for a particular client one normal and one special.
32. Tell me what are the procedures of elimination during consolidation of financial statements?
After transferring the subsidiary data to the parent set of books, combine the subsidiary and parent data.
Once parent and subsidiary data has been combined, enter eliminating journal entries.
* Choose the State Controller's Eliminate button to create journal entries in the parent set of books for consolidation eliminations.
* Create elimination sets with which you can define eliminating entries that repeat every accounting period.
33. Explain Capitalization of Internal, External Asset?
Asset becomes capitalised when it is bought for profit motive, as an investment, and most important : when it is used.
Asset available within an organisation - Internal Asset.
Asset where they are present physically out of organisation - External Asset.
In this case you have to have a additional field in the COA called "Alternate Account". Your month end consolidated reports must be based on the alternate account.
Example: Retail sales company has 52000.000 as the Purchase account
Property Management Co. has 54240.912 as the Purchase account
Both these account will have a common "alternate" account example CO52000.000
Please note - If you are using alternate accounting; ensure "Account Creation" is in the hands of "Central" finance so that they can allocate a "alternate number"
35. Tell me What is how to exceed the funding budget amount limit in the actual journal?
We can exceed the funding budget through using alternative depreciation methods and through borrowing short term loans.
