EBSbeginner
Oracle EBS Module Overview: AP, AR, GL
Grasp the core financial modules and how they interrelate within EBS Financials
Accounts Payable (AP), Accounts Receivable (AR), and General Ledger (GL) form the backbone of Oracle EBS Financials. AP manages supplier invoices, payments, and expense reports, while AR manages customer invoices, receipts, and collections. GL is the central repository where all subledger transactions are ultimately posted as journal entries, rolled up into the chart of accounts.
AP and AR are like individual department ledgers in a household (grocery bills, salary deposits), while GL is the family's master budget spreadsheet that summarizes everything into one coherent financial picture.
Key Concepts
1
The relationship between these modules is sequential and transactional: a transaction is created in a subledger (say, an invoice in AP), validated, accounted for using Subledger Accounting (SLA), and then transferred to GL. This flow ensures that GL always reflects a summarized, auditable trail of what happened in the operational subledgers.
Subledger Accounting (SLA)
2
Each module has its own setup hierarchy: AP has payment terms, suppliers, and distribution sets; AR has customers, transaction types, and AutoInvoice rules; GL has the chart of accounts, calendars, and ledgers (or ledger sets in Fusion terminology). Interviewers frequently probe whether candidates understand the three Cs of GL: Chart of Accounts, Calendar, and Currency, since these define a ledger.
three Cs of GL