Oracle Cloud ERP key terms

The structured list of accounts an organization uses to record transactions and produce reports. In Oracle Cloud ERP it is defined once and shared across ledgers, with segments such as company, cost center, and natural account.

The key flexfield that assembles the Chart of Accounts into a single concatenated accounting combination. Each segment is validated by a value set, and combinations are generated or cross-validated before use in journals.

A registered organization that owns transactions and must report to a tax authority. It is assigned to a ledger and to business units, and it determines the registration and reporting context for statutory purposes.

The accounting book that combines a Chart of Accounts, calendar, and currency with an accounting method. It records subledger entries and holds balances for reporting.

The main ledger where an organization records its operational accounting entries. Each legal entity must be assigned to exactly one primary ledger, which defines its functional currency and accounting calendar.

An additional ledger attached to a primary ledger to satisfy a different accounting requirement, such as a statutory or group reporting basis. It can use a different Chart of Accounts, calendar, currency, or accounting method.

A currency balance maintained alongside the ledger currency so amounts can be reported in another currency. It is derived from rates and conversion rules rather than entered directly.

The calendar that defines the accounting periods in which transactions are recorded and closed. It specifies period names, start and end dates, and the number of periods per year, and is assigned to a ledger.

A unit that performs one or more business functions, such as procurement, sales, or payroll, and controls transaction data. It separates data by function and is linked to a legal entity and a primary ledger.

A container that groups common reference data, such as units of measure or payment terms, so it can be shared across business units. Assignment determines which reference values a business unit can use.

A definition of the values allowed for a key flexfield segment or other field, including its data type, length, and validation. It controls what users can enter and how values are secured.

A rule that restricts which combinations of segment values may be used together in a key flexfield. It prevents invalid accounting combinations from being entered or posted.

The rules-based engine that converts transactions from source applications, such as payables and receivables, into journal entries. It applies accounting methods, transaction event models, and journal line rules before transferring entries to the general ledger.

A set of subledger accounting policies and rules that determines how transactions are converted into journal entries. It is assigned to a ledger and can vary by application or transaction type.

A balanced accounting record with debit and credit lines that posts to a ledger. Entries may be created manually, imported, or generated automatically by subledger accounting.

The process of transferring approved journal entries into ledger balances. Unposted entries do not affect account balances, and posting can be automated or performed manually for a period.

An accounting entry that offsets a previously posted journal, typically on the first day of the next period. Reversals are used for accruals so temporary estimates do not carry forward.

The controlled sequence of tasks that finalizes an accounting period. It includes subledger close, journal posting, reconciliation, and locking periods so no further entries can be recorded.

An accounting period that is available for entering and posting transactions. The status of each period, open, closed, or permanently closed, is controlled by the ledger and by period-close exceptions.

An accounting entry that recognizes revenue or expense before the related cash movement occurs. Accruals are commonly reversed in the following period to keep balances accurate.

The process of comparing two sets of records, such as subledger balances to general ledger balances or bank statements to cash records, and explaining any difference. It supports period-close sign-off.

A detailed transaction register that feeds summarized accounting entries into the general ledger. Payables, receivables, assets, and expenses each maintain their own subledger balances.

The configuration of an organization's legal, business, and reporting units in Oracle Cloud ERP. It defines how legal entities, ledgers, and business units relate to one another for transactions and reporting.

The end-to-end business process from requisition and purchase order through receipt, supplier invoice, and payment. It spans procurement, payables, and cash management and is a core Oracle Cloud ERP flow.

The end-to-end business process from customer order through fulfillment, shipment, invoicing, and receipt of payment. It links order management, receivables, and cash management.

The end-to-end accounting process that collects transactions, posts journals, reconciles balances, closes periods, and produces financial statements. It relies on the general ledger and subledger accounting.

A control that compares a purchase order, a goods receipt, and a supplier invoice before payment is approved. Tolerances define acceptable differences in quantity, price, and amount.

A document sent to a supplier authorizing the supply of goods or services at agreed prices and terms. It encumbers funds and serves as the reference for receipts and invoices.

A document from a supplier requesting payment for goods or services delivered. It is validated against purchase orders and receipts, then accounted and paid through payables.

The conditions that determine when and how an invoice is paid, such as net days, discounts, and installment schedules. Terms drive due dates and can be shared through a reference data set.

A commitment recorded against budget when a requisition or purchase order is created. It reserves funds and is relieved when the actual expense is recorded.

The rules that check transactions against available budget and optionally block or warn when funds are insufficient. It can apply at different levels, such as ledger, business unit, or account.

A billing document that records amounts owed by a customer and creates revenue and receivable balances. It is accounted through subledger accounting and later settled by receipts.

The process of allocating and recognizing revenue according to contractual performance obligations and accounting standards. It can create schedules that defer revenue across multiple periods.

The module that manages bank accounts, reconciles bank statements, and monitors cash positions. It links payments and receipts to bank activity and supports liquidity reporting.

The process of matching bank statement lines to system payments, receipts, and other cash transactions. Unmatched items are investigated and cleared to confirm the cash balance.

A configured routing of documents, such as requisitions or journals, to approvers based on rules and hierarchies. It enforces segregation of duties and spending controls before a transaction proceeds.

The control principle that no single person should be able to initiate, approve, and record the same transaction. Oracle Cloud ERP supports it through roles, privileges, and approval rules.

A set of application privileges granted to users so they can perform specific tasks. Roles are assigned directly or through groups and are constrained by data access sets.

A security definition that determines which ledgers and balancing segment values a user can access. It limits transaction entry and reporting to an authorized portion of the enterprise.