1.Explain P2P cycle? Ans.P2P means Procure to Pay,where we purchse the goods and pay for it.

The modules involved in P2P are as follows: 1.Inventory(INV):This is the common space to store the items and as well we can check the item availability.Requisitions will be raised for the items and will get the approval for the requisition from the concerned manager. 2.Purchase order (PO):Once received the approval from the inventory,PO will request for quotations(RFQ) fro m various vendors available.Vendors will send the quotations to PO,and then the analasys of the quotations will be done by PO based upon the pricing and terms and conditions involved in the vendor quotations.So that PO will select the best quotation out and then send a purchase order(PO) to the vendor to supply the goods.After receiving the PO,the vendor will supply the goods and the moment the goods are received by PO,they will prepare a goods receipt note(GRN).In case of any damage of goods,then purchase return may take place. 3.Accounts payable(AP):Based upon the GRN prepared by PO people,AP will record a purchase invoice and payments will be done to the vendor. 4.Cash management(CM):After payment is done to the vendor,CM with perform the payment reconcialation by comparing the payment with the bank statement. 6.Fixed assets (FA):In case of any fixed asset purchase,the details should be recorded in FA and subsequently to share the same with AP for the payments. 7.General ledger(GL):All the above details should be sent to GL to prepare a financial report. 2.Explain O2C cycle? Ans:O2C means order to cash. 1.Inventory(INV):This is the common space to store the items and as well we can check the item availability.Requisitions will be raised for the items which are not available and the will get the approval for the requisition from the concerned manager. 2.Order management(OM):After receiving the sales order from a customer,OM will check with the inventory for the item availability.If the items are available OM will book the sales order.Now according to the items mentioned in the sales order,the items will be moved from the sub-inventory to the staging area which is called as pick release.So that the goods now can be loaded into the vehicle and shipping can be done. In case of any damage of goods,the customer can send the goods back to the company,then sales return may take place. 3.Accounts receivable(AR):Based upon the ship confirmed,AR will prepare the sales invoice.Acoording to the sales invoice customer will pay the amount,so that AR will generate a receipt for that payment.

4.Cash management(CM):Receipt reconcialation will be done by comparing the receipt and the bank statement. 5. General ledger(GL):All the above details should be sent to GL to prepare a financial report. 3.How many year types we have,expalin? Ans:We have 2 year types as follows: 1.Calander year:The financial year starts in one year and ends in the same year .For example,USA will follow calander year as 1-Jan-12 to 31-Dec-2012 2.Fiscal year:The financial year starts in one year and ends in the next year.For example,India will follow the fiscal year as 1-Apr-2012 to 31-Mar-2013. 4.How many period types we have,explain? Ans:we have 6 period types as follows: 1.Yearly:1 year can be considered as 1 period. 2.Half yearly:This has 2 periods in an year as first 6 months as 1st period and the second 6 months as 2nd period. 3.Quarterly:This has 4 periods in an year as JAN-MAR(1st period),APR-JUN(2nd period),JUL-SEP(3rd period) and OCT-DEC(4th period) in case of calander year.But in case of fisacl year the 1st quarter starts from APR-JUN and go on ends with JAN-MAR as the (4th quarter) 4.Monthly:This has 12 period types starts from JAN-DEC(same year) in case of calander year and APR-MAR(next year) in case of fiscal year. 5.Weekly:This has 52 periods in an year. 6.Daily:This has 365 periods an year. Note:We can have to enable the feature named Adjustment in case of any adjustments to be done in the end of year/halfyear/quarter/month/week/daily. 5.What is Functional and Foreign currency journals,explain? Functional currency journal:If we record a business transaction in journal using the currency as local currency,then we call it as functional currency journey. Foreign currency journal: If we record a business transaction in journal using the currency which is other than local currency,then we call it as foreign currency journey.

6.How many types of currencies we have,explain? Ans:We have 2 types currencies as follows: 1.Monitory currency:Currency which can be measurable in terms of money is called as monitory currency.Again this is classified into 2 types as follows: 1.1.Functional currency:Local currency can be called as functional currency.For example,if we are doing business in India,then the INR will become the functional currency. 1.2.Foreign currency:Any currency other than local currency can be called as foreign currency.For example,if we are doing the business in USA,then the USD is local currency and the rest of the currencies are foreign currencies. 2.Non-monitory currency:In other words we can call this as STAT currency,which cant be measured in term of money.This can be used when the units are like KGs,KMs,Days,Decibels etc.. Note:The currencie which are defined or suggested by Oracle can be called as Seeded Data. 7.How do you create the calander,expalin with the navigation? Ans:To create a calander in the system,one should know the financial years followed by different countries.And should specify the year type as calander year or fiscal year and as well should specify the period types for the calander as year/halfyear/quarter/month/week/daily. First we have to create a period type calander where we specify the range of the period. Then,we have to create a accounting calander based upon the period type calander. Navigation to create the period type calander is as follows: SetupFinancialscalanderstypes Navigation to create the accounting calander: SetupFinancialscalandersaccounting 8.How do you create the Chart of Accounts(COA)? Ans:We can create the COA by using the Accounting key flex field(KFF) feature which is available in General ledger(GL).Under GL we can find 3 types of flex fields as follows: 1.Accounting flex filedCan be used to design the organisation structure 2.GL ledger flex field 3.Reporting attribute

COA consists of: 1.Organisation structure:Here we will create the organisation structure by specifying the title of the structure.The navigation to create the organisation structure is as follows: SetupFinancialsFelxfiledsKeySegments 2.Segments:Here we will create the segments available under the structure.We can create a maximum of 30 segments and a minimum of 2 segments,out of which company and accounts segments are mandatory.The navigation to create the segments is as follows: SetupFinancialsFelxfiledsKeySegments The above navigation can be used to create the structure also,but after creating the structure we can go ahead with creating the segments by using the option Segments in the structure creation form. Now we can create the segments like Company,Dept,Accounts etcAfter creation of the segments,we have to create the value sets for the segments created,and assign the value sets created for the segments.After assigning the value sets we have to assign the flexfiled qualifiers to the segments. Note:We have 2 qualifiers: 1.Flexfield qualifier which can be used to assign the segments 2.Segmanet Qualifier which can be uses to assign the segment values Note:Each segment must have a valueset which maintains the numbers and the segment values. Note:We give numbering to the segment values,because when ever we have to retrieve a record we can call it by using the codes,so the combination of such codes can be called as code combination. We have 6 flexfiled qualifiers as follows: 1.Balancing segment flexfiled qualifiers 2.Natural account segment flexfiled qualifiers 3.Cost center segment flexfiled qualifiers 4.Secondary tracking flexfiled qualifiers 5.Managing segment flexfiled qualifiers 6.Inter company segment flexfiled qualifiers Out of which balancing and natural account segment flexfiled qualifiers are mandatory to use. For company segment we assign the balancing segment flexfiled qualifiers

For account segment we assign the natural account segment flexfiled qualifiers After assigning the valuesets and the flexfiled qualifiers to the segments,we have to create the segment values.The navigation to create the segment values is as follows: SetupFinancialsFelxfiledsKeyValues Now we can enter the segment values for all the segments seperately.After creation of segment values we have to assign the segment qualifiers to the segment values. We have 5 segment qualifiers as follows: 1.Allow budgeting 2.Allow posting 3.Account type(Revenue,Expense,Ownership,Asset,Liability) 4.Third party control account 5.Reconcile / Reconcialation flag Out of which Allow budgeting and allow posting will be assigned to company segment and all the 5 segment qualifiers can be assigned to the accounts segment. After assigning the segment qualifiers to the segment values we have to go back to the Key flexfiled form where we created the structure and enable the option Freeze Flexfiled Definition which allows to compile the structure as well to provide the security for the structure,so that others cant do any modifications. We have to enable the option Allow Dynamic Inserts,which helps us to create a new code combination. Now,we have to compile the structure for the purpose of validation,so that we can see the status of our structure whether it is normal or are there any errors in it. 9.How do you create the primary ledger,explain? Ans:After creation of the COA successfully,we will create the primary ledger by assigning the COA to PL. PL can be created by using 3 Cs as:Calander,Currency and COA and also can be prepered by using 4Cs as:Calander,Currency,COA and Subledger Accounting method. The navigation to create the PL as follows: SetupFinancialsAccounting setup managerAccounting setup Now,we will have a web page where we can create our PL.We have to specify the details like: PL name,COA,Accounting calander,Currency and SL accounting method as Standard Accrual.

Here we have to Update the ledger options by giving the ledger name,currency,COA etc..and the should specify the Retained Earnings account which is a mandatory account type. Now,create the code combination which takes the segments and the segment values . Now,reporting currencies should be updated.

Legal entity:The process of getting a company registered with the Govt. according to the Govt. act and also based on the nature of the business of the company. We have to create the legal entity for our company and has to be assigned to the PL.And the balancing segment values can be assigned to the legal entity and as well we have to update the balancing segment values to the PL also. Note:The balancing segment values can be assigned to the company segment only as we assigned the balancing segment flexfiled qualifier to the company segment while creation. Note:Whenever we assign the legal entity to the PL,the system will add options called Operating units and Intercompany accounts which has to be updated and completed. 10.How do you create the Responsibility,explain? Ans:Responsibilities can be created in the System administrator responsibility,where we can create our own responsibility.The navigation to create the responsibility is as follows: FileSwitch responsibility We need to specify the responsibility name,Application and the Responsibility key. Data group should be specified as standard and the request group should be specified as GL concurrent program group. Menu should be specified as GL_Superuser which is defined by Oracle or if required we can create our own menu according to our requirement. After creation of the responsibility we have to assign the same to the user by creating a new user. 11.How do you assign the profile option to the responsibility? Ans:We can assign the PL to the responsibility by using the profile option as GL Ledger name and the same can be done by using system administrator responsibility The navigation is as follows: ProfileSystem

Under file system profile values, we have to enable the responsibility and specify the responsibility name in the field and should specify the profile option as GL Ledger Name to assign the PL to the responsibility.