Oracle Fusion Cloud/EBS Knowledge Sharing Blog

What is a Bank Charge? Bank charges are fees levied by banks for processing fund transfers between a disbursement bank account and a supplier's or customer's bank account. Handling Bank Charges in Oracle Fusion is usually done through Cash Management or Payables, depending on when the bank charges are identified and on client requirements. How to handle Bank charges in Finance Modules? Cash Management Method1 : Manual This method is used when the bank deducts charges directly in the bank statement. Based on this, clients create an External Transaction and reconcile it with the Bank Statement line. Method2 Automatic : Based on the configuration in Cash Management (Bank Statement Transaction Creation Rules and Cash Transaction Type Mapping), the system can create Bank Charge as the External Transaction when running the Generate Cash Transactions program. Accounts Receivables There are two ways to handle Bank Charges in AR.  There are some charges we need to record as bank c...

There are different types of leases that we can record in the Oracle FLA(Fusion Lease Accounting) module.  FLA is a separate module under Finance suit which is used to manage leases. Oracle Lease Accounting has the key features of lease creation, generating amortization schedules, and maintaining accounting balances. It generates the balances required as specified by IFRS16 and ASC842 guidelines. ASC842 is nothing but US GAAP and IFRS16 is international GAAP. A lease is a contract where a party (the lessee) gains the right to use an asset owned by another party (the lessor) for a specific period. Here we have two parties. Lessor:  The owner of the asset who grants the use of the asset.  Lessee:  The party who uses the asset and makes payments to the lessor.  There are two types of Leases. Expense Lease An "expense lease" refers to the cost recorded by a lessee for using an asset that is not owned but rather leased. An expense lease...