The Global Accounting Engine (GAE) is a new functionality in Oracle Applications. The Global Accounting Engine avoids the need to run the "Transfer to GL program" that forms part of each sub ledger application. The GAE creates journal entries, adjusts the balances and posts directly to the general ledger. Let me try and give an overview of some important features of the global accounting engine.

1. With GAE, one can define accounting rules per set of books. In case an enterprise uses more than one set of books, GAE can help post different accounting rules to different set of books.

2. GAE helps in reconciling a subledger accounts to the general ledger. One can create all accounting entries, miscllaneous entries and inter organization entries with sub ledgers itself. GAE does not require any adjusting entry to general ledger.

3. One important feature of GAE is securing sub ledger accounting entries. There are two ways in which sub ledger accounting entries can be secured, one can secure accounts individually, on the other hand, one can
secure the procedure required to create accounting entries. This requires the use of control accounts to define accounts. Since a control account can only be accessed via the sub ledger, a valid audit trail is maintained.

4. GAE also provides for maintaining audit trails as per fiscal and legal requirements. GAE allows defining journals as well as accounting entries. However, one needs to number these journals sequentially in line with legal and statutory requirements.

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