Mar 3, 2013

Data Conversion: FA Opening Balance.


Hello Ramaswamy,


My name is Rajiv and I am from Mauritius. I am an Oracle Financials Consultant.



Would you please try to help me understanding the loading of Open FA, as I am having issues regarding in one of my project. I would be very grateful.



Suppose the the cut-off date is 30 April 2012 and go-live is as from 1st May 2012.



We are loading TB (include the FA Balance also)and as well as the Open FA as at 30 April 2012. Can you please help me the way forward from here.



DO we have to reverse the Journal Entries that is transferred from Oracle FA, and if yes, How, unfreeze the Journal or Manual reversal?



Thanking you in advance.



Best Regards,
Rajiv


----------------------------------------------------------------------------------------------------------------------------------------------------------------


Hello Rajiv

There are two key accounts relating to loading of FA. One is the asset account and the other is the Accumulated Depreciation Account. 

You could follow two approaches for loading the OB of Asset.

You can take TB as it is and let the accounting entries flow from Assets module and then manually reverse these accounting entries.

Or

You can create a separate Asset contra account of 9 series (let us say 999991). Before Taking in TB, replace all the asset accounts with this contra account. This means that from TB, the contra account will get a debit equal to the asset value.

Map this contra account in the Asset module as the charge account and then create Asset Accounting. On posting to GL, the original Asset accounts will get a debit and this contra account will get a credit. Since the values are equal, the net balance in contra account will be zero at the end of this exercise.

Then end date this account. And map the correct charge account in the Assets Module.

The advantage of this method is that there is no JV. In addition, this method clearly differentiates the Opening balance transactions from other transactions. I normally go for this approach.

Also please note that in Assets, uploading the Accumulated Depreciation is more challenging. I would love to know how you are planning to manage the Asset and Accumulated Depreciation Opening Balance. If you have a data conversion plan document please share it with me.

I had visited Mauritius twice. Love that place.

Regards

------------------------------------------------------------------------------------------------------------------------------------------------------------------

Hello Ramaswamy,


Thank you very much for your quick and prompt reply. 



I am really sorry, but I should have mentioned to you earlier. Actually, I was working for an Oracle Financials Project for xxxxxx Africa, in Chad.



The cut-off date was 30 April 2012 and the system live from 1st May 2012. What I did is as follows:



We have loaded the Open Assets as at 30 April 2012. Transfer all entries to General Ledger and I reverse the Journal entries created by Assets sub-ledger by removing the unfreeze flag in the Journal Source window (as balances already includes in the TB loaded as at 30 April 2012). 



Now, we are not able to reconcile the GL and FA balance. Can you advise the way forward why the balances are not tallying.



Was it the correct way of reversing the Journals??? I have done this way even for AP and AR....



Again, I appreciate very much your prompt reply.



Many Thanks 



Best Regards,
Rajiv

-----------------------------------------------------------------------------------------------------------------------------------------------------------------

Hi 

The problem appears to be that the opening balance of assets is not tallying with the Asset Value in TB. I suggest you check the data provided for loading.

Reversing the journals has nothing to do with reconciliation. The assumption behind reversing the journals is that the Asset value from TB will match the Asset Value in Asset Books. Kindly verify if this assumption is true.

Regards

-------------------------------------------------------------------------------------------------------------------------------------------------------------------

Hi Ramaswamy,


Thanks for your quick reply. That is very helpful.



If I understand, there is no impact of what so ever, if I reverse the Source Journal from Oracle Assets (the sub-ledger Journal) by unfreezing the Journal in the Journal Source window in GL.



Thanks Again Ramaswamy.

-------------------------------------------------------------------------------------------------------------------------------------------------------------------

Hi

Yes your understanding is correct. Reversing the source journal has nothing to do with Reconciliation. Reversing the journals is a GL activity and has no impact on the Asset books.

Regards

------------------------------------------------------------------------------------------------------------------------------------------------------------------


No comments: