General Ledger Interview Questions Part 4

1.What are the steps for Multi Reporting Currencies or MRC ?

MRC is used for reporting in any other Currency including functional currency. We use Primary and reporting set of books for MRC, the primary and the reporting Ledger should have the same COA and Calendar but may have different currency.

Steps for MRC

1. Define Primary Ledger, this is done at Ledger level at MRC tab by checking the Primary Ledger radio (B).
2. Define Reporting Ledger, this is also done at Ledger by checking the reporting Ledger radio (B) and uncheck the budgetary control at Budgetary control Tab as they are mutually exclusive. This Ledger should have the same Chart of Accounts & Calendar but the Currency may differ.
3. Open the  periods in Primary & Reporting Ledger.
4. Define daily conversion rates
5. Assign Reporting Ledger to Primary Ledger. Here we have to define the Conversion options and GL Conversion Rules.

 

2.Explain difference between Translation and Multiple Reporting Currencies?

 

Translation	Multiple Reporting Currencies
Translation can be done for unlimited  Reporting Currencies.	It is restricted to 8 reporting Currencies in MRC
For translation we should open prior period and following periods.	No such conditions prevails in MRC
Translation cannot be done for first period.	We can  translate for first period also in MRC
For Translation we have to define period average rate and period end rate.	In MRC only daily rates are defined.
The difference arising between period average rate and period end rate will go to Translation adjustment a/c	Here no such difference as we are taking the daily rates for translation.
Translation is done Manually	MRC is automatic.
Translation will be done by balance wise	MRC is Transaction wise

 

 

3.Explain concept of budget formula. And what are the steps for defining budget formula?

• We define budget formulas to calculate budget amounts. Budget formulas can be simple or complex.
• When you define budget formulas, you create a budget formula batch.
• The batch contains one or more budget entries, and each entry contains one or more formulas.
• Use budget batches and entries to group your budget formulas.
• For example, you might combine all formulas for a single department or division into one batch, or group all formulas for certain types of calculations into separate entries.
• When you calculate budgets using a budget formula, General Ledger replaces any existing budget amounts directly; it does not create a budget journal.
• We can use budget formulas only for planning budgets

Steps for Budget formula

• Define planning budget
• Define budget organization for the planning budget, in this define the ranges of accounts and in assign ranges the first line should be main account (on which we perform the calculation with type as entered & line 2 should be the target A/c with type Calculated.
• Create Budget formula here enter the main A/c and the target A/c and formula for calculation and calculate for the required period.

 

4.What is the Difference between the Segment Rules and Account Rules? And explain in brief?

Segment rules are defined in Consolidation. In segment rules we mention the mapping rules between the parent & subsidiary Ledger.

The mapping rules are of four types

1. Assign Single Value
2. Copy Value from
3. Use Rollup Rules
4.  Not Assigned

 

Segment rules make consolidation process fast and easy transfer of data between the parent and subsidiary books.

 

Account rules: Map a specific subsidiary account or a range of accounts to a specific account in your parent set of books.

For example, you can map subsidiary account 02.300.5400.100 to account 01.100.3000.000.000 in your parent set of books. Or, you might map the entire range of subsidiary accounts 02.300.5400.100 through 02.300.6999.100 to account 01.100.3000.000.000 in your parent set of books

Account Rules override segment rules if any conflict.

 

5.Is it required to have Translation for GCS?

No, Translation is required if the currency in parent and subsidiary Ledger is different.

 

6.Can I use different mandatory account combination for reporting Ledger?

Yes, we can have, but this will not have any effect in the primary SOB and will override RSOB.

 

7.Whether my Budget Journals do transfer to Reporting SOB automatically?

No, budget journals will not transfer to Reporting SOB. Both are mutually exclusive

 

 

8.If I run a concurrent program to post all journals in primary whether the same will post all journals in reporting Ledger?

No, we need to post in Reporting Ledger because while posting the entry in Primary Ledger it will create only unposted entries in Reporting Ledger.

 

9.What is difference between Conversion options and GL conversion rules?

These options are available in MRC, while assigning the Reporting Ledger to Primary Ledger.

In Conversion option we specify the Oracle Application and affective date of Conversion

In GL Conversion Rules we specify the Source, Category and Conversion type.

 

10.Which date’s conversion rate will be used for reversing journal in MRC i.e the date of  journal or date of  reversal?

Date of Journal.

 

11.Can I have different first periods for primary and reporting Ledger?

Yes, we can have different first periods due to which we can’t transfer the data from Primary Ledger to Reporting Ledger for the prior periods of the Reporting Ledger.

 

12What are the differences between Cross Validation Rules (CVR) and Security rules?

 

Cross Validation Rules	Security Rules
1. The CVR are specific to COA	Specific to responsibility
2. Restrict the Combination	Restrict to define segment value
3. Available for KFF	Available for both KFF & DFF

 

13.What type of Value sets will not support the security rules?

None, Pair & Special.

 

14.If I perform consolidation whether my budget balances will also consolidate?

No, we can perform consolidation for budgets also but the calendar should same.

 

15.Can I transfer different period’s subsidiary SOB balances to parent SOB by using ‘ Transfer Consolidation Data Set?

Yes, There is option of “Subsidiary period” available in Transfer Consolidation data set where we can enter different period’s of the Subsidiary Ledger balances.

 

16.What are different methods of Consolidation?

• Balances
• Transactions

 

17.Whether my Budget amounts are converted to reporting currencies automatically?

No, because budget and reporting set of books are mutually exclusive