The General Ledger (GL) sub-system is the pillar on which the various functional components of Oracle FLEXCUBE rest. Through this single entity, you can consolidate and maintain balances and turnovers of all types of accounts your bank holds. In addition, the module enables you to retrieve on-line information on the GLs maintained for your bank.
In Oracle FLEXCUBE, GLs have been structurally fashioned as a tree, bearing a multi-level structure (like a tree’s main branch and sub-branches). On the head stands the Head GL that does not report to any other GL. The subsequent levels consist of Nodes and Leaves. A Node GL is one that reports to another GL and has other GLs reporting to it. A Leaf GL is one that reports to another GL but does not have any GL reporting to it.
The number of levels in the tree structure, and the various constituents of the head, nodes, and leaves have been left open to your choice, the only restriction being that a report will be restricted to the number of levels that a 132-column paper can hold.
The GL structure for your bank has to be created at the bank level and maintained by different branches. Using this structure, you can consolidate the GL balances and turnovers across modules and products and retrieve on-line information on the same.
This chapter contains the following sections:
Flexible GL structure
Keeping in mind the different type of accounts maintained in your bank, GL has been broadly classified into the following categories:
A Head GL can be assigned any of the above categories. Two Head GLs can have the same category. All GLs that fall under a Head GL will essentially belong to the category defined for the Head. Each category can have any number of GLs under it, but the category allocated to a GL should be assigned at the head of any GL stream. All nodes and leaves by default take the category of the Head GL to which they report. At no other level can you assign a category.
Leaf GLs are merely points of contact through which all entries are passed to the nodes. It is at the nodes that consolidation of all accounting takes place. Therefore, any specification like the Currency type or GL type though specified at the leaf GL will be applicable only for the respective node of that leaf. Peripheral activities like linking a customer account to a GL or posting to a GL can be done only at the leaf.
All your profit and loss entries can be passed in LCY only; however, for reporting purposes you can also maintain a record of these in any FCY or even in all currencies. This makes it possible to have multi-currency GLs. Along with this, revaluation of currencies has also been provided for.
Categorization into MIS Classes
The sub-system enables you to categorize information into MIS Classes, which are exclusively for reporting purposes. This feature serves not only your need for classified information, but also helps simplify the GL structure of the bank.
For instance, you can categorize information by the defined Customer/Transaction MIS Class. Under each type — Customer or Transaction you can create several MIS Classes and Sub-classes. This is done at the Bank level and used by the different branches.
Information Retrieval
You have been provided with various report definition options, so that you can tailor your report to suit your needs. In addition, the report generator helps you prepare reports in the format of the Head Office and Central Bank debit/credit lines, which may be at variance with the existing GL structure at the branch level.
Consolidation of GLs can take place at different branch levels. That is, at the Regional Office or Head Office levels depending upon the branch structure that you have defined in the Core Entities Module. The final consolidation of all GLs is done at the Head Office where the total consolidated GL is provided in a report. Even during consolidation, the break-up based on MIS Classes will be provided.
You will need to invoke the General Ledger (GL) sub-system to: