General Ledger

Open And Close Balance Open and close accounting periods to control journal entry and journal posting, as well as compute period- and year-end actual and budget account balances for reporting. Accounting periods can have one of the following statuses: Open: Journal entry and posting allowed. Closed: Journal entry and posting not allowed until accounting period is reopened. Reporting and inquiry allowed. Permanently Closed: Journal entry and posting not allowed. You cannot change this period status. Reporting and inquiry allowed. Never Opened: Journal entry and posting are not allowed. General Ledger assigns this status to any period preceding the first period ever opened in your calendar, or to any period that has been defined, but is not yet future-enterable. You cannot change this period status. Future-Entry: Journal entry is allowed, but posting is not. Your period is not yet open, but falls within the range of future-enterable periods you designated in the Set of Books window. You cannot change this period status without using the concurrent process to open the period. Note: When you define a new set of books, choose carefully the first accounting period you want to open. Once you open your first accounting period, General Ledger does not allow you to open prior accounting periods. Additionally, you cannot translate account balances for the first period ever opened. Therefore, we recommend that you open at least one period prior to the first accounting period in which you wish to enter transactions. Additional Information: If you use Multiple Reporting Currencies, you must open/close accounting periods in your primary set of books and in each of your reporting sets of books.

=> To open a new accounting period: Setup -> open/close 1. Navigate to the Open and Close Periods window. 2. General Ledger displays the Latest Open accounting period. Note that while a period may be the most recently opened accounting period, this period may have a current status of closed. 3. Choose Open Next Period. General Ledger calculates the ending account balances for the current period, and launches a concurrent process to open the next period. The current period remains Open. Suggestion: Although you can have several open accounting periods, to maximize the efficiency of the General Ledger posting process, as well as to minimize the possibility of user error, limit the number of accounting periods that are open at one time. If you open the first period of a new fiscal year, General Ledger automatically updates the Retained Earnings account. 4. Save your work. => To close an accounting period 1. Navigate to the Open and Close Periods window. General Ledger displays all accounting periods defined for your calendar with the period type of your set of books. 2. Select the open period that you want to close. 3. Enter a new status for the period.

Enter Closed to prevent entering or posting journals to that period. You can reopen a closed period at any time. Enter Permanently Closed to prevent entering or posting journals to that period. You cannot reopen a permanently closed period.

4. Save your work.

=> To reopen an accounting period 1. Navigate to the Open and Close Periods window. General Ledger displays all accounting periods defined for your calendar with the period type of your set of books. 2. Select the period that you want to reopen. You can reopen any closed period that is not permanently closed. 3. Change the status to Open. 4. Save your work. Overview Of Ecumbarance Year With General Ledger you can record pre-expenditures commonly known as encumbrances. The primary purpose of tracking encumbrances is to avoid overspending a budget. Encumbrances can also be used to predict cash outflow and as a general planning tool. To use the full capabilities of encumbrance accounting, you must enable the budgetary control flag for a set of books. When you enable the budgetary control flag, the system automatically creates encumbrances from requisitions, purchase orders and other transactions originating in feeder systems such as Purchasing and Payables. When you do not enable the budgetary control flag, you can still enter manual encumbrances via journal entry, but you cannot generate encumbrances from requisitions and purchase orders.

 Open Encumbrance Year When you open the first period ever for your set of books, General Ledger automatically opens your first encumbrance year as well. When you open additional encumbrance years, General Ledger automatically rolls your project-to-date encumbrance balances forward through the last period of the latest open encumbrance year. You do not need to open encumbrance years if you are not using encumbrance accounting. To open an encumbrance year: 1. Navigate to the Open and Close Periods window. General Ledger automatically displays your Latest Open encumbrance year. You can enter and post encumbrance balances up to the last period of your latest open encumbrance year. 2. Choose Open Next Year. General Ledger submits a concurrent process to open the next encumbrance year. To Enter An Encumbrance Batch (Journals -> Encumbrance ) 1. Navigate to the Enter Encumbrances window. 2. Choose New Batch. 3. Enter a batch Name, an appropriate Accounting Period, and an optional Control Total. You can enter encumbrances up to the last period of your latest open encumbrance year. 4. Choose Journals to enter your encumbrance journals. 5. Create your encumbrance journal by entering a name, category, encumbrance type, and optional description, reference and control total. 6. Enter encumbrance lines, specifying an account and debit or credit amount for each. General Ledger automatically validates each segment value as well as the combination of segments you enter. If the debit amounts do not equal the credit amounts in either your manual or imported encumbrance entries, General Ledger automatically enters a balancing

amount to the Reserve for Encumbrances account at posting. Your encumbrance entries always balance by balancing segment value. 7. Save your work. Defining Encumbrance Type Encumbrance types let you classify and track expenditures according to the purchasing approval process. You can define encumbrance types in addition to the General Ledger standard encumbrance types or disable existing encumbrance types. General Ledger has the following predefined encumbrance types: Commitment An encumbrance you record when you complete a purchase requisition. Obligation An encumbrance you record when you turn a requisition into a purchase order. You can define as many additional encumbrance types as you want or change the names of the standard encumbrance types to reflect the terminology you use within your organization. You specify an encumbrance type when you enter an encumbrance and when you perform inquiries. To define an encumbrance type: (Setup -> Journal -> Encumbrances ) 1. Navigate to the Encumbrance Types window. 2. Enter a name and description. 3. Enable the encumbrance type. 4. Save your work View Funds Available You can review funds available and compare encumbrances and expenditures with budgets. You can review functional currency budget, actual and encumbrance balances, and funds available for any detail or summary account. General Ledger calculates funds available by subtracting expenditures and encumbrances from budgets. When you inquire on funds available, the amount type you specify determines how General Ledger calculates funds available. Amount Type How the System Calculates Funds Available

Period-toDate Quarter-toDate Extended

Calculates funds available as the budgeted amount for the period, less actuals and encumbrances for the period. Calculates funds available as the budgeted amount to date for the quarter, less actuals and encumbrances to date for the quarter. For example, you budget $100 to an account for each of the three months in a quarter. The available amount for the second month of the quarter is $200. Year-to-Date Calculates funds available as the budgeted amount to date for the year, less Extended actuals and encumbrances to date for the year. For example, you budget $100 to an account for each of the 12 months. The available amount for the first half of the year is $600. Project-to- Calculates funds available as the budgeted amount to date, less actuals and Date encumbrances to date. You can review the cumulative funds available total only by selecting Year-to-Date Extended as the amount type. For example, if you budget $100 for January, spend $50 and have $10 in encumbrances, the funds available for January is $40. If you view funds available for the amount type PTD for February, the February balances will not include the $40 available at the end of January. When you choose an amount type of YTDE, you can view cumulative amounts so the February balances will include the $40 available for January.