This example shows how to define and generate formula recurring journals that are automatically generated every period.
You must have:
A role that can access the Journals work area in Oracle General Ledger.
A duty that can access the Create Allocation Rules task.
The following assumptions apply:
The chart of accounts includes segments for company, department, account, subaccount, and product.
Account 1210 is the trade receivables account.
The period-to-date activity in account 1210 is 100,000 USD.
Here are the goals for this example.
Create a journal that populates a monthly allowance for bad debt based on 5% period-to-date activity in the trade receivables account.
Account 7730 is the bad debt expense account and account 1260 is the allowance for bad debt account.
A formula rule must be defined to generate the following journal entry for the period Apr-17 and thereafter.
DR 01.000.7730.0000.000 5,000 USD
CR 01.000.1260.0000.000 5,000 USD
This worked example includes details for the following tasks:
Configuring the Formula Rule
Creating the Runtime Prompt Variable
Creating the Rule Set
Generating the Allocation Journal
Click the Value field for Accounting Period.
Click the Actions icon and select Variable from the drop-down list. A new window opens.
For the Category, select Database from the drop-down list.
Click the Value field for another dimension.
Click the Actions icon and select Member from the drop-down list.
Select a member and click the Add icon to move the member to the Selections panel.
Click OK. Repeat for all dimensions to include in the Point of View.
In this scenario, the following are fixed dimension values:
Currency Type: Total
From the New Objects list, click, hold, and drag the Formula component and place it between the Point of View nodes in the Rule Designer.
Enter a Caption: Bad Debts Calculation.
Enter the offset member.
In this scenario, the offset is defined as account 1260, the allowance for bad debt. The offset is child combination 01.000.1260.0000.000 when combined with the fixed member dimension values in the Point of View.
In this scenario, the formula member dimension value is defined as account 7730. The bad debt expense is charged to child combination 01.000.7730.0000.000 and combined with the fixed member dimension values in the Point of View.
Click the icon for the formula field and select Member from the drop-down list.
Select the Account dimension value, highlight the row, and click the Select icon to move the value to the Selections panel.
In this scenario, the goal is to calculate an allowance for bad debt based on the period-to-date activity in trade receivables account 1210. Trade receivable is child combination 01.000.1210.0000.000 when combined with the fixed member dimension values in the Point of View.
Repeat for the other formula member values and click OK when all formula members are selected.
In this scenario, the following dimension values are selected. Selection of members for the following dimensions is required for the source in a formula component.
Balance Amount: Period Activity
Amount Type: PTD
Multiply the formula expression by .05.
Click the Save icon.
Click the Validate and Deploy icon.
For example, use a runtime prompt variable of Accounting Period, which prompts you to specify the period to use in the allocation calculation. A runtime prompt variable can be created once and used in multiple rules.
Enter Accounting Period
Merge variables means that common variables among all of the rules in the rule set are merged. You only have to select the runtime prompt value once when submitting the Generate General Ledger Allocations process.