Copyright © 2007, Oracle. All rights reserved. Using Accounting Setup Manager R12 General Ledger Management Fundamentals.
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Copyright © 2007, Oracle. All rights reserved.
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
Copyright © 2007, Oracle. All rights reserved.
Objectives
After completing this lesson, you should be able to describe the following:
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Complete Accounting Setup
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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.
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Accounting Setup Prerequisites
• Complete General Ledger Setup Steps
• Optionally, define additional Subledger Accounting Methods
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Create Accounting Setup Demonstration
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Legal Entities Pages
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Accounting Setups Pages
Legal entities
Attributes
Ledgers
Accounting Setups
Use the Accounting Setups pages to analyze and update various accounting setups
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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.
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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.
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Legal Entities Overview
Use Accounting Setup Manager to define legal entities
and their accounting context
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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
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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
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Completing Accounting Setups
Accounting Setups
You must ensure the correct balancing segment values are assigned to legal entities
across all of your accounting setups
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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
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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
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Updating Balancing Segment Values
To update balancing segment value assignments for legal entity, use:
• Legal Entities tab
• Accounting Options page
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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
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Creating Accounting Setup Structures (continued)
Step Required? Description Application or Feature Name
4. Define cross- validation 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
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Creating Accounting Setup Structures (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
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Creating an Accounting Setup
Creating an accounting setup is comprised of the following
steps:
• Assigning Legal Entities
• Defining Accounting Representations
• Saving the Accounting Structure
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Completing Accounting Options
The structure of the Accounting Options page:
Displayed in checklist format to ensure
correctness of setup steps
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Updating Legal Entities
Using the Accounting Options page, you can make various revisions to legal entities
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Primary Ledger Setup Steps
The primary ledger setup steps are as follows:
• Ledger Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Completing Accounting Setup
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Ledger Options
The primary ledger setup steps are as follows:
• Ledger Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Completing Accounting Setup
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Reporting Currencies
The primary ledger setup steps are as follows:
• Ledger Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Completing Accounting Setup
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Ledger Balancing Segment Value Assignments
The primary ledger setup steps are as follows:
• Ledger Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Completing Accounting Setup
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Subledger Accounting Options
The primary ledger setup steps are as follows:
• Ledger Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Completing Accounting Setup
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Operating Units
The primary ledger setup steps are as follows:
• Ledger Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Completing Accounting Setup
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Intracompany Balancing Rules
The primary ledger setup steps are as follows:
• Ledger Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Completing Accounting Setup
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Sequencing
The primary ledger setup steps are as follows:
• Ledger Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Completing Accounting Setup
Copyright © 2007, Oracle. All rights reserved.
Secondary Ledgers
The primary ledger setup steps are as follows:
• Ledger Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Completing Accounting Setup
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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
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Secondary Ledgers
• Subledger Level Secondary Ledgers
• Journal Level Secondary Ledgers
• Balance Level Secondary Ledgers
• Adjustments Only Secondary Ledger
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Secondary Ledgers
• Subledger Level Secondary Ledgers
• Journal Level Secondary Ledgers
• Balance Level Secondary Ledgers
• Adjustments Only Secondary Ledger
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Secondary Ledgers
• Subledger Level Secondary Ledgers
• Journal Level Secondary Ledgers
• Balance Level Secondary Ledgers
• Adjustments Only Secondary Ledger
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Secondary Ledgers
• Subledger Level Secondary Ledgers
• Journal Level Secondary Ledgers
• Balance Level Secondary Ledgers
• Adjustments Only Secondary Ledger
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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
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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
Name: US Ops ConsolidationDescription: For Consolidation PurposesChart of Accounts: CorporateCalendar: MonthlyCurrency: EUR
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Using Ledgers for Consolidation
France(Parent Entity)
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
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Completing Accounting Setup
The primary ledger setup steps are as follows:
• Ledger Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Completing Accounting Setup
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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.
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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.
Copyright © 2007, Oracle. All rights reserved.
In this lesson, you should have learned how to describe the following:
• Create Accounting Setups
• Create Accounting Setup Structures
• Complete Accounting Options
• Reporting Currencies
• Ledger Balancing Segment Value Assignments
• Subledger Accounting Options
Summary
Copyright © 2007, Oracle. All rights reserved.
In this lesson, you should have learned how to describe the following:
• Operating Units
• Intracompany Balancing Rules
• Sequencing
• Secondary Ledgers
• Complete Accounting Setup
Summary
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