Financial transactions are entered into ledgers. Oracle uses Subledgers (for example, Payables, Receivables, Assets, and Inventory) and the General Ledger to record the financial transactions. The transactions are entered in the Subledger and then transferred to the General Ledger through the Subledger Accounting engine. The General Ledger is used mainly to produce financial reports for decision-making.
The following diagram summarizes the process for transferring financial transactions from the Subledger to the General Ledger:
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1. The transactions are entered in the Subledger, for example, in Payables.
2. Tax is calculated on the transactions based on the E-Business tax settings.
3. The transaction is completed and we run the Create Accounting program to transfer the transactions to the General Ledger.
4. The journals are created and posted in the General Ledger.
