Oracle FLEXCUBE Center of Learning (FCOL)
GL Module
Frequently Asked Questions (FAQs)
General Ledger (GL)
Oracle Financial Services Software Limited, Embassy Business Park, C.V. Raman Nagar, Bangalore,
Karnataka 560 093. India.
www.oracle.com/industries/financial_services
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Oracle FLEXCUBE Center of Learning (FCOL)
GL Module
Copyright © 2014, Oracle Corporation and/or its affiliates.
All rights reserved.
This document is provided for information purposes only, and the contents hereof are subject to change without notice.
This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed
orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose.
We specifically disclaim any liability with respect to this document and no Contractual obligations are formed either
directly or indirectly by this document.
This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any
purpose, without our prior written permission.
Oracle is a registered trademark of Oracle Corporation and/or its affiliates.
Other names may be trademarks of their respective owners. All company and Product names are trademarks of the
respective companies with which they are associated.
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Oracle FLEXCUBE Center of Learning (FCOL)
GL Module
Frequently Asked Questions (FAQs): GL
1. What is a General Ledger (GL)?
A General Ledger is a book (called ‘ledger’ in accounting parlance) containing all the accounting entries that are posted
in a Bank. For example, cash GL would have records of all the business transactions involving cash.
2. What is the purpose of having GL in a Bank?
GL is used to consolidate and maintain balances and turnovers of all types of accounts the bank holds. The GL helps to
prepare the profit and loss statement and the balance sheet (snapshot of a Bank's financial condition) of the Bank.
3. Give an example of a typical GL Structure in the bank.
4. Which module in Oracle FLEXCUBE handles GL creation and operations?
GL creation and operations is handled by the sub-system called "General Ledger" in Oracle FLEXCUBE. GL is also
called as “Chart of Account”.
5. What does GL Module do?
The GL Module consolidates and maintains balances and turnovers of all types of accounts the bank holds. The GL
module also helps to prepare the “profit and loss statement” and the” balance sheet” of the Bank.
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Oracle FLEXCUBE Center of Learning (FCOL)
GL Module
6. How many GLs can you create in the Oracle FLEXCUBE GL Sub-system?
You can create any number of GLs in Oracle FLEXCUBE.
7. How is the GL structured in Oracle FLEXCUBE?
GLs have been structured in a “tree” format, bearing a multi-level structure. On the top stands the “Head” GL. The GLs
at the lower most level are referred to as “Leaf” GLs and all other GLs in between the “Head” and “Leaf” GLs are called
as “Nodes”.
8. Give an example of Head, Node and Leaf GLs.
9. What happens at Head, Node, and Leaf GLs?
Posting to a GL can be done only at the “Leaf” level. Leaf GLs are points of contact through which all entries are
passed to the “Nodes”. “Node” and “Head” GLs represent “consolidation points” for GL entries.
10. How can you create a GL tree structure?
You have to link a “Parent” GL to the “Leaf” and “Node” GLs to create a GL tree structure.
11. When do the balances in “Head”, “Node”, and “Leaf” GLs get updated?
By default, balances in all the GLs get updated at the end of the working/business day. As part of “Bank Preferences
Maintenance”, if the bank selects “GL Online Update”, then the “Leaf” GL balance gets updated online and “Head”,
“Node” GL balances get updated at the end of the working/business day.
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Oracle FLEXCUBE Center of Learning (FCOL)
GL Module
12. Can you create a GL both at Bank and Branch Level?
No. You can create GLs only at “Bank” level.
13. Can posting restrictions be placed on a GL?
Yes. Either “Head Office”, or “Branch”, or both can post entries into a GL.
14. What is a GL Category?
GL Category is the classification of GL which is done based on type of balances held in a GL such as loan account
balance and deposit account balance. GL categorization is done for reporting and management purposes.
15. What are the main categories of GLs?




Asset
Liability
Expense
Income
16. Give examples for main categories of GL.




Asset
: Example: Loan amount
Liability : Example: Deposit Amount
Expense : Example: Interest paid on Deposit
Income : Example: Interest Received on Loan
17. Can the category of a Head, Node, and Leaf GL be different?
No. 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.
18. What is the purpose of having “Position” and “Position Equivalent” category GLs?
Position GL is used to consolidate currency wise balances of foreign currency GLs.
The balance in a position GL will be converted into the local currency of the branch and shown in “Position Equivalent
GL”.
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Oracle FLEXCUBE Center of Learning (FCOL)
GL Module
19. Can the bank maintain one “Position” and one “Position Equivalent” GL?
No, “Position” GL and “Position Equivalent” GL must be maintained for each currency.
20. What is a “GL type”?
GL type indicates the type of accounting entries that are posted into the GL.
21. List the GL types?






Nostro
Miscellaneous Debit
Miscellaneous Credit
Inter Branch
Cash
Normal
22. What is a “Customer GL” and what is an “Internal GL”?
GL which holds the balances of savings, current, and nostro accounts of the bank is called as “Customer GL”.
All other GLs which are not “Customer GL” is called as “Internal GL”.
23. Can you impose “Currency Restrictions” on a GL?
Yes. Entries into a GL can be in all currencies, or in a specific currency or in any currency other than the local currency of
a bank.
24. Can you block entries into a GL?
Yes; you can block entries into a GL by selecting the “Blocked” option.
25. What is “GL revaluation”?
GL revaluation is a process by which the local currency equivalent of various foreign currency entries, or balances in the
GLs are recalculated to reflect the changes in the exchange rates.
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Oracle FLEXCUBE Center of Learning (FCOL)
GL Module
26. Can you revalue a GL in Oracle FLEXCUBE?
Yes, you can do this in Oracle FLEXCUBE. To enable revaluation of a GL, select the functionality “Revaluation”.
27. What are some of the standard GL reports that can be generated?
 Profit and Loss Statement
 Balance Sheet
 General Ledger Report
28. In a bank, more than 1000 GLs may exist. Should the bank create these GLs individually?
No, the bank need not create these GLs individually, but can upload them in bulk.
29. Can you close a GL?
Yes, you can close a GL, provided GL should not have any balance. Click on “Close” button to close a GL.
30. Can you reopen a closed GL?
Yes, you can reopen a closed GL. Click on “Re-open” button to Re-open a GL.
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Oracle FLEXCUBE Center of Learning (FCOL)
GL Module
FAQs—GL
Original Version Created on: July 2014
Original Author: Anitha Nagaraj
Last Updated on: 5th Sep 2014
Updated by:
Formatted by: Karpagam Karthik
Reviewed by: Vinod Gangadharan
Oracle Financial Services Software Limited
Embassy Business Park,
C.V. Raman Nagar,
Bangalore,
Karnataka 560 093
India
For Inquiries:
Phone: +91 080 6659 7535
www.oracle.com/industries/financial_services
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.
This document is provided for information purposes only and the contents hereof are subject to change without notice.
This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including
implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this
document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or
transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission.
Oracle is a registered trademark of Oracle Corporation and/or its affiliates.
Other names may be trademarks of their respective owner.
8