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what is set of books? [message #216747] Tue, 30 January 2007 04:21 Go to next message
kanmani_karuppannan
Messages: 23
Registered: November 2006
Location: India
Junior Member

what is set of books,functional currency and accounting calendar.

please advice.

Regards
Mani
Re: what is set of books? [message #216762 is a reply to message #216747] Tue, 30 January 2007 05:10 Go to previous messageGo to next message
David.K.Dickson
Messages: 413
Registered: October 2005
Location: Surrey, England
Senior Member
Let's start with Functional Currency. This is the Currency in which your business funtions, i.e. the currency in which it raises (most if) its invoices, pays (most of) its bills and produces its accounts. It is the day-to-day currency of the business. In most cases, this will be the currency of the country in which it is based. However most oil companies have their functional currency as USD regardless of which country they are based in; this is because the oil industry works in USD and there is a lot less exposure to currency risks for oil companies if they function in the same currency as the rest of the market.

The Accounting Calendar reflects your business's financial year. A lot of businesses have their financial year end at the same time as their country's tax year end, because it makes the accounting for taxes a lot easier. Some businesses have their financial year equal to the calender year, i.e. the financial year ends on 31st December. Most businesses produce internal management accounts every calendar month, or 12 times a year. Some businesses produce internal management accounts every four weeks, or 13 times a year. Some businesses use 4-4-5 (4 weeks, 4 weeks and 5 weeks). The Accounting Calendar allows you to define the number of periods and their start and finish dates. In addition to "normal" periods, you can have adjustment periods, which are often used for year-end accounting adjustments that do not belong in a specific accounting period.

You also need to be aware of the Chart of Accounts, which defines the segments of your account number, what they mean, what size they are and what values (and combinations) are allowed.

If all parts of your business can share the same Currency, Calendar and Chart of Accounts (the three C's), then they can share the same Set of Books. If any parts of you business function in a different currency, then they will need to have their own Set of Books, but you can have the system translate their accounts into your Functional Currency for consolidation.

For more information on all of the above, please refer to the Oracle General Ledger User’s Guide. If you don't have a copy of the Oracle General Ledger User’s Guide, it can be downloaded, with all of the other Applications Documentation from http://www.oracle.com/technology/documentation/applications.html

Cool HTH

David
icon14.gif  Re: what is set of books? [message #216930 is a reply to message #216747] Tue, 30 January 2007 22:39 Go to previous messageGo to next message
merlinrajesh
Messages: 105
Registered: November 2006
Location: Chennai
Senior Member

Nice Explaination David.....

Merlin Rajesh
Re: what is set of books? [message #217039 is a reply to message #216747] Wed, 31 January 2007 08:02 Go to previous message
kanmani_karuppannan
Messages: 23
Registered: November 2006
Location: India
Junior Member

Excellent...

Thanks you, David!!!
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