Using Accounting Setup Manager: R12 General Ledger Management Fundamentals

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

(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

Accounting Setups
Legal
entities
Attributes
Ledgers
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
Step 7
Conditionally
Required
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.
Step 9
Conditionally
Required
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.
Step 12
Conditionally
Required
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 Value
Assignments 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.
Accounting
Setup Manager
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

(continued)
Step
Required?
Description
Application or
Feature Name
4. Define crossvalidation rules
Required
Carefully consider the number of accounting

setups that you need.
Accounting
Setup Manager
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

(continued)
Step
Required?
Description
Application or
Feature Name
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
Secondary Ledgers
Completing Accounting Setup
Ledger Options
Ledger Options
Operating Units
Sequencing
Secondary Ledgers
Ledger Options
Operating Units
Sequencing
Secondary Ledgers

Ledger Options
Operating Units
Sequencing
Secondary Ledgers

Ledger Options
Operating Units
Sequencing
Secondary Ledgers
Operating Units
Ledger Options
Operating Units
Sequencing
Secondary Ledgers

Ledger Options
Operating Units
Sequencing
Secondary Ledgers
Sequencing
Ledger Options
Operating Units
Sequencing
Secondary Ledgers
Secondary Ledgers
Ledger Options
Operating Units
Sequencing
Secondary Ledgers
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

Secondary Ledgers

Secondary Ledgers

Secondary Ledgers

Using Secondary Ledgers for Consolidated

Reporting
Legal Entity
France
(Parent Entity)
Primary Ledger
Name: France Operations Corp.

Description: For Corporate Accounting
Chart of Accounts: Corporate
Calendar: Monthly
Currency: EUR
Secondary Ledger
Name: France Statutory

Description: For Statutory Reporting
Chart of Accounts: Statutory
Calendar: Fiscal
Currency: EUR
US
(Subsidiary)
Name: US Operations
Description: For US Accounting
Calendar: Monthly
Currency: USD
Using Secondary Ledgers for Consolidated

Reporting
Legal Entity
France
(Parent Entity)
US
(Subsidiary)
Primary Ledger
Name: France Operations Corp.

Description: For Corporate Accounting
Calendar: Monthly
Currency: EUR
Name: US Operations
Description: For US Accounting
Calendar: Monthly
Currency: USD
Secondary Ledger

Description: For Statutory Reporting
Calendar: Fiscal
Currency: EUR
Name: US Ops Consolidation

Description: For Consolidation
Purposes
Calendar: Monthly
Currency: EUR
Using Ledgers for Consolidation

Accounting Setup
Legal
Entity
Exclusive
France
(Parent Entity)
Primary
Ledger
Name: France Operations

Calendar: Monthly
Currency: EUR
Secondary
Ledger

Calendar: Fiscal
Currency: EUR
Shared
US
(Subsidiary)
Name: US Operations
Calendar: Monthly
Currency: USD
Shared
UK
(Subsidiary)
Name: UK Operations
Calendar: Monthly
Currency: GBP

Ledger Options
Operating Units
Sequencing
Secondary Ledgers
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

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.
Subledger
Accounting
Method
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.
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.
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.
Summary
In this lesson, you should have learned how to describe the

following:
Create Accounting Setups
Create Accounting Setup Structures
Summary
In this lesson, you should have learned how to describe the

following:
Operating Units
Sequencing
Secondary Ledgers
Complete Accounting Setup

Using Accounting Setup Manager: R12 General Ledger Management Fundamentals

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Formats disponibles

Using Accounting Setup Manager

R12 General Ledger Management Fundamentals

Copyright 2007, Oracle. All rights reserved.

After completing this lesson, you should be able to

Copyright 2007, Oracle. All rights reserved.

After completing this lesson, you should be able to

Copyright 2007, Oracle. All rights reserved.

Creating Accounting Setups

Complete Accounting Options

Complete Accounting Options

Assign legal entities

Complete ledger options.

Define and assign operating

Specify ledger attributes

Define intracompany balancing

Specify the ledger

Assign balancing segment

Define sequencing options.

Assign balancing segment

Complete secondary ledger

Complete accounting setup.

Copyright 2007, Oracle. All rights reserved.

Accounting Setup Prerequisites

Complete General Ledger Setup Steps

Copyright 2007, Oracle. All rights reserved.

Create Accounting Setup Demonstration

Copyright 2007, Oracle. All rights reserved.

Legal Entities Pages

Copyright 2007, Oracle. All rights reserved.

Accounting Setups Pages

Use the Accounting Setups pages to analyze

Copyright 2007, Oracle. All rights reserved.

Accounting Setup Manager Checklist

Define Legal Entities

Create Accounting Setup Structure

Complete ledger options

Complete reporting options

Assign balancing segment values to legal

Assign balancing segment values to ledger

Define Subledger Accounting options

Define operating units. If using an accounting

Define intracompany balancing rules.

Copyright 2007, Oracle. All rights reserved.

Accounting Setup Manager Checklist (continued)

Define Sequencing. Define accounting and

Complete primary to secondary ledger

Complete the Accounting Setup

Perform additional General Ledger setup

Copyright 2007, Oracle. All rights reserved.

Legal Entities Overview

Use Accounting Setup Manager to define legal entities

Balancing Segment Value Assignments

Identifies legal entities

Copyright 2007, Oracle. All rights reserved.

Using Balancing Segment Values for Transaction

Copyright 2007, Oracle. All rights reserved.

Completing Accounting Setups

Copyright 2007, Oracle. All rights reserved.

Designating the Balancing Segment for a Chart of

You should designate

Copyright 2007, Oracle. All rights reserved.

Defining Legal Entities Using Accounting Setup

Define your legal