Copyright © 2007, Oracle. All rights reserved. Using Accounting Setup Manager R12 General Ledger...

Copyright © 2007, Oracle. All rights reserved.

Using Accounting Setup Manager

R12 General Ledger Management Fundamentals


Objectives

After completing this lesson, you should be able to describe the following:

• Create Accounting Setups

• Create Accounting Setup Structures

• Complete Accounting Options

• Reporting Currencies

• Ledger Balancing Segment Value Assignments

• Subledger Accounting Options


Objectives

After completing this lesson, you should be able to describe the following:

• Operating Units

• Intracompany Balancing Rules

• Sequencing

• Secondary Ledgers

• Complete Accounting Setup


Creating Accounting Setups

Create Accounting Structure

Complete Accounting Options Complete Accounting Options (continued)

Assign legal entities Complete ledger options. Define and assign operating units to the primary ledger.

Specify ledger attributes for primary ledger

Complete reporting currencies.

Define intracompany balancing rules.

Specify the ledger attributes for one or more secondary ledgers

Assign balancing segment values to legal entities.

Define sequencing options.

Assign reporting currencies

Assign balancing segment values to ledgers.

Complete secondary ledger setup steps.

Define subledger accounting options.

Complete accounting setup.


Accounting Setup Prerequisites

• Complete General Ledger Setup Steps

• Optionally, define additional Subledger Accounting Methods


Create Accounting Setup Demonstration


Legal Entities Pages


Accounting Setups Pages

Legal entities

Attributes

Ledgers

Accounting Setups

Use the Accounting Setups pages to analyze and update various accounting setups


Accounting Setup Manager Checklist

Step Number Required? Step Description

Step 1 Optional Define Legal Entities

Step 2 Required Create Accounting Setup Structure

Step 3 Required Complete ledger options

Step 4 Conditionally Required

Complete reporting options

Step 5 Optional Assign balancing segment values to legal entities

Step 6 Optional Assign balancing segment values to ledger


Define Subledger Accounting options

Step 8 Optional Define operating units. If using an accounting setup that has legal entities assigned, define operating units for your primary ledger.


Define intracompany balancing rules.


Accounting Setup Manager Checklist (continued)

Step Number Required? Step Description

Step 11 Optional Define Sequencing. Define accounting and reporting sequencing options for ledgers and reporting currencies. Repeat this step for each ledger.


Complete primary to secondary ledger mapping.

Step 13 Required Complete the Accounting Setup

Step 14 Optional Perform additional General Ledger setup steps.


Legal Entities Overview

Use Accounting Setup Manager to define legal entities

and their accounting context


Balancing Segment Value Assignments

Balancing Segment ValueAssignments to Legal Entities

Assigning balancing segment values to legal entities is considered optional

Identifies legal entities across your transaction processing and reporting


Using Balancing Segment Values for Transaction Processing

When a transaction with multiple balancing segment values is entered, the

Balancing Process automatically generates the correct accounting entries.

Transaction Processing

Oracle General Ledger


Completing Accounting Setups

Accounting Setups

You must ensure the correct balancing segment values are assigned to legal entities

across all of your accounting setups


Designating the Balancing Segment for a Chart of Accounts

You should designate the balancing segment of the chart of accounts as the legal entity or company segment


Defining Legal Entities Using Accounting Setup Manager

Accounting Setup Manager

is a central location to define accounting related setup

Define your legal entities and accounting context which includes the ledgers that will contain the accounting data for each legal entity


Updating Balancing Segment Values

To update balancing segment value assignments for legal entity, use:

• Legal Entities tab

• Accounting Options page


Creating Accounting Setup Structures

Step Required? Description Application or Feature Name

1. Review Oracle Financials Implementation Guide

Required Carefully consider the number of accounting setups that you need.


2. Define chart of accounts

Required Define at least one chart of accounts. For ease in assigning balancing segment values to legal entities, it is

recommended that all charts of accounts share the same value set for the balancing segment.

General Ledger

3. Define accounts Required Define the following natural accounts that will be used to create your ledgers:•Retained Earnings Account•Suspense Account, if you want to enable suspense posting•Cumulative Translation Adjustment (CTA) Account•Non-Postable Net Income Account, if you plan to enable average balance processing•Reserve for Encumbrance Account, if you plan to use encumbrance accounting or budgetary control

General Ledger


Creating Accounting Setup Structures (continued)


4. Define cross- validation rules

Required Carefully consider the number of accounting setups that you need.


5. Define chart of accounts mapping

Conditionally Required

If you plan to use a secondary ledger that uses a different chart of accounts from the primary ledger, define a chart of accounts mapping. The mapping provides instructions on how to transfer data between disparate charts of accounts.

General Ledger

6. Define period types

Optional If you want to use period types that are not installed with General Ledger, define the period types that you will use for your accounting calendar.

General Ledger

7. Define accounting calendars

Required Define one or more accounting calendars. General Ledger

8. Define transaction calendars

Conditionally Required

If you plan to use average balance processing, define a transaction calendar to specify valid business days used by your organization.

General Ledger

9. Define or enable currencies

Required Define or enable one or more currencies. General Ledger


Creating Accounting Setup Structures (continued)


10. Define currency conversion rate types and rates

Required If you plan to enter foreign currency transactions, define conversion rate types and conversion rates.

General Ledger

11. Define journal reversal criteria

Optional Define a journal reversal criteria set that you will assign to each ledger to have journals for that ledger automatically reversed.

General Ledger

12. Define jurisdictions

Optional If you do not want to use the jurisdictions that are seeded, define a jurisdiction. The jurisdiction is used to assign a territory to a legal entity.

Legal Entity Configurator

13. Define legal entities

Optional Create a complete definition of your legal entity. It is recommended that you assign specific balancing segment values to legal entities to help you secure and identify transactions by legal entity.

Legal Entity Configurator or Accounting Setup Manager

14. Define subledger accounting methods

Optional If you do not want to use Standard Accrual or Standard Cash as your ledger's default accounting method, define subledger accounting methods using Oracle Subledger Accounting.

Oracle Subledger Accounting


Creating an Accounting Setup

Creating an accounting setup is comprised of the following

steps:

• Assigning Legal Entities

• Defining Accounting Representations

• Saving the Accounting Structure


Completing Accounting Options

The structure of the Accounting Options page:

Displayed in checklist format to ensure

correctness of setup steps


Updating Legal Entities

Using the Accounting Options page, you can make various revisions to legal entities


Primary Ledger Setup Steps

The primary ledger setup steps are as follows:

• Ledger Options




• Operating Units


• Sequencing


• Completing Accounting Setup


Ledger Options


• Ledger Options




• Operating Units


• Sequencing




Reporting Currencies


• Ledger Options




• Operating Units


• Sequencing




Ledger Balancing Segment Value Assignments


• Ledger Options




• Operating Units


• Sequencing




Subledger Accounting Options


• Ledger Options




• Operating Units


• Sequencing




Operating Units


• Ledger Options




• Operating Units


• Sequencing




Intracompany Balancing Rules


• Ledger Options




• Operating Units


• Sequencing




Sequencing


• Ledger Options




• Operating Units


• Sequencing




Secondary Ledgers


• Ledger Options




• Operating Units


• Sequencing




Secondary Ledgers

Data Conversion Levels

• Secondary Ledgers can be maintained at one of the following data conversion levels:– Subledger Level Secondary Ledgers– Journal Level Secondary Ledgers– Balance Level Secondary Ledgers– Adjustments Only Secondary Ledger


Secondary Ledgers

• Subledger Level Secondary Ledgers

• Journal Level Secondary Ledgers

• Balance Level Secondary Ledgers

• Adjustments Only Secondary Ledger


Using Secondary Ledgers for Consolidated Reporting

France(Parent Entity)

US(Subsidiary)

Legal Entity

Secondary Ledger

Primary Ledger

Name: France Operations Corp.Description: For Corporate AccountingChart of Accounts: CorporateCalendar: MonthlyCurrency: EUR

Name: US OperationsDescription: For US AccountingChart of Accounts: CorporateCalendar: MonthlyCurrency: USD

Name: France StatutoryDescription: For Statutory ReportingChart of Accounts: StatutoryCalendar: FiscalCurrency: EUR


Using Secondary Ledgers for Consolidated Reporting


US(Subsidiary)

Legal Entity

Secondary Ledger

Primary Ledger

Name: France Operations Corp.Description: For Corporate AccountingChart of Accounts: CorporateCalendar: MonthlyCurrency: EUR

Name: US OperationsDescription: For US AccountingChart of Accounts: CorporateCalendar: MonthlyCurrency: USD

Name: France StatutoryDescription: For Statutory ReportingChart of Accounts: StatutoryCalendar: FiscalCurrency: EUR

Name: US Ops ConsolidationDescription: For Consolidation PurposesChart of Accounts: CorporateCalendar: MonthlyCurrency: EUR


Using Ledgers for Consolidation


US(Subsidiary)

Legal Entity

Secondary Ledger

Primary Ledger

Name: France OperationsChart of Accounts: CorporateCalendar: MonthlyCurrency: EUR

Name: US OperationsChart of Accounts: CorporateCalendar: MonthlyCurrency: USD

Name: France StatutoryChart of Accounts: StatutoryCalendar: FiscalCurrency: EUR

UK(Subsidiary)

Name: UK OperationsChart of Accounts: CorporateCalendar: MonthlyCurrency: GBP

Accounting Setup Exclusive Shared Shared


Completing Accounting Setup


• Ledger Options




• Operating Units


• Sequencing




Completing Accounting Setup

Secondary Ledger Steps in the Accounting Options Page

Step Number Step Description Note

Ledger Options Defines and updates the journal and transaction processing options for the ledger.

The Ledger Options for the primary ledger must be completed before completing the Ledger Options for the secondary ledger

Primary to Secondary Ledger Mapping

To specify conversion options to transfer data from the primary ledger to the secondary ledger.


Adding, Deleting, Disabling Secondary Ledgers

If defining an Adjustments Only secondary ledger for manual adjustments in General Ledger, do not assign a subledger accounting method. To use the Adjustments Only secondary ledger for both manual and automated adjustments from Subledger Accounting, assign a subledger accounting method to both the primary and secondary ledger.

If defining a balance or journal level secondary ledger, do not assign a subledger accounting method.

If defining a subledger journals level secondary ledger, a subledger accounting method must be assigned to the secondary ledger and its primary ledger.

Subledger Accounting Method

Field Description Note

Accounting Calendar

General Ledger uses the calendar periods that have the period type specified for journal entry, budgeting, and reporting with this ledger.

Accounting Setup Manager reports an error if there are any gaps between periods in the accounting calendar or if any of the non–adjusting periods overlaps.

Data Conversion Level

To select Subledger, a subledger accounting method must be assigned to both the primary and secondary ledger.

To select Adjustments Only, the secondary ledger must share the same chart of accounts, accounting calendar, and currency as the primary ledger. The subledger accounting method, if used, can be different from the primary ledger. However, to assign a subledger accounting method to the adjustments only secondary ledger, you must also assign one to the primary ledger.


In this lesson, you should have learned how to describe the following:

• Create Accounting Setups

• Create Accounting Setup Structures

• Complete Accounting Options




Summary


In this lesson, you should have learned how to describe the following:

• Operating Units


• Sequencing


• Complete Accounting Setup

Summary

Copyright © 2007, Oracle. All rights reserved. Using Accounting Setup Manager R12 General Ledger...

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