7/25/2019 Journal Approval Process : Oracle R12 Perspective | ritwiktheerpguy

ritwiktheerpguy
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Journal Approval Process : Oracle R12 Perspective

Posted on April 23, 2011

Journal Approval Process : Oracle R12

perspective

1 Introduction:
In any accounting cycle journals become an integral part of the financial reporting system. So as part of the
procedures before posting of journals decision needs to be taken whether the journals should be approved or not.
So this approval related decision needs to be setup and be part of the application through which financials
transactions are being done and regulated in real-time scenarios. This functionality of setting up the approval
process based on the journal details or amounts is called Journal Approval. Like any other ERP in oracle apps as
well journal approval functionality is available.

As we know that in real-time business scenarios journals are prepared by the employees who would be creating
the journals so in order to set it up the approval limits for the same need to be set with the employee. So in order
to do the testing we need to know the employee to whom the user ID is attached to in system administrator.

2 Pre-requisites:
Before setting the approval limit we need to do the pre-requisite set ups for this functionality. These setups are as
given below

Setting of journal approval in primary ledger

Setting of journal approval in journal sources
Setting of journal authorization limits for the employees

Once the above mentioned above setups are done then we need to start the process.

3.1 Settings for journal approval in the primary ledger:

As mentioned above the first pre-requisite for the setting up of journal approval is to enable journal approval at
primary ledger level. This is a setup which is present at the primary ledger level under the ledger options section
under journal processing.
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In order to do the above step we need to go to GL or general ledger module in the below navigation for ledger
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setup where all the ledger setups are available.

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Responsibility: General Ledger

Navigation: Setup > Financials > Accounting setup manager > Accounting setups

3.2 Setting up journal approval in journal sources

The second pre-requisite for setting up journal approval is to enable the check box for journal approval at journal
source setups. This also is available in GL or general ledger module and can be accessed by the below navigation.

Responsibility: General Ledger

Navigation:Setup > Journal > Sources

Query for your journal source and set the check box for “Require journal Approval”.

3.3 Setting the journal authorization limits for employee

If journals need to be sent for approval then subsequent approval limits need to be setup based upon which the
journal approval process will work. This need to be setup at employee level for the managers to whom the
approval for journal needs to be sent.

This also is available in GL or general ledger module and can be accessed by the below navigation.

Responsibility: General Ledger

Navigation:Setup > Employee > Limits

3.4 Required Profile Options

Approver method

Responsibility: System Administrator

Navigation: Profile > System

We need to enable a profile option which will define the approval method that will be used.

Profile Option : Journal : Find Approver Method

The profile option has the below values

Go Up Management Chain: The journal batch moves up the approval hierarchy until it has been approved
by an approver whose authorization limit is sufficient to allow approval. The journal batch must be approved
by all intermediate approvers as well.

Go Direct: The journal batch is sent directly to the first approver in the approval hierarchy who has an
authorization
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One Stop Then Go Direct: The journal batch is first sent to the preparer’s manager for approval. If further
approvals are required, the journal batch is sent directly to the first approver in the approval hierarchy who
has an authorization limit high enough to allow approval.

The default value for this profile option is Go up Management Chain.

You cannot view this profile option at the user level. Your System Administrator must set this profile option at the
site, application, or responsibility level.

As per the requirement if there should be one line of approval so we need to go for “Go Direct” option.

No self-approval

If the requirement is to have self-approval so for this we need to look into a profile option.

Responsibility: System Administrator

Navigation: Profile > System

Profile option name: Journals: Allow Preparer Approval

if the above profile option is set as “No” then self-approval will not happen i.e. the journal preparer cannot
approve the journal himself.

In addition to the above setup some more basic setup which is required is ensuring the employee level setup. This
is because as a standard oracle uses the employee level hierarchy defined in HRMS and that is being followed in
the process. So to have this setup go fine we need to ensure that the employee with which the testing is being done
has a supervisor assigned in HRMS who is active.

4 Transactions
Once all the required setups are done then the testing of the journal approval process can be done. The testing
steps will be as given below

Step 1 : Creation of journal

Step 2 : Once the journal is completed to continue further the system will prompt that the journal
has been forwarded for approval . So the next step will be to check for the approval notification
with the approver’s login. Approve the journal from approver’s login.

Step 3 : Checking the status of the journal post approval and posting it.

The detailed steps have been given in the below attached document where a test case has been done with
screenshots
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5 Conclusion:
So here we have seen the whole process by which the journal approval for a particular employee can be set up. but
the biggest lacunae of this process is that it facilitates parallel approval and does not facilitate if more approval
lines are required.

In order to meet the requirements apart from one given in standard we need to customize the standard journal
approval workflow.

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About ritwiktheerpguy
I am a PGDM in Finance and marketing and is currently working as an Oracle apps functional consultant . Personally speaking i
am a very clear hearted and a simple guy who likes to do lot of networking and believes in making lot of friends. As a
professional i am a very focussed person who is totally devoted towards his work and i believe in a certain degree of perfection.
When it comes to work for me the only thing that matters is self satisfaction of the fact that i have given my level best towards
accomplishment of the task. Last but not the least i believe on the fact that perfection is an utopian concept but the urge towards
perfection should always be there.
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2 Responses to Journal Approval Process : Oracle R12 Perspective

Saleem Javed says:

October 10, 2014 at 1:10 pm

Privacy &Thanks Ritwik

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site uses such an By awesome
continuing topost, it website,
use this has helped metoatheir
you agree lot.use.
Your post clearly speaks about the description you have
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given about yourself. Keep posting.
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Awoyade Olatokunbo says:

March 23, 2016 at 9:55 am

Good document and well detailed . Thank you for sharing this
Reply

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