Mastering Summary Accounts in General Ledger Management

Summary Accounts R12 General Ledger Management Fundamentals

Objectives • After completing this lesson you should be able to do the following: • Discuss summary accounts and how they are used in General Ledger • Define rollup groups for summary account creation • Assign parent values to rollup groups • Determine the number of summary accounts created by a template using a specific formula • Enter summary account templates to create summary accounts • Maintain summary accounts • Discuss key implementation considerations in planning summary accounts

Overview • What are Summary Accounts? • A summary account is an account whose balance is the sum of balances from multiple detail accounts • Use summary accounts to perform online summary inquiries, as well as speed the processing of financial reports and Mass Allocations, and Recurring journal formulas • You do not enter or post transactions directly to summary accounts

Overview • Summary accounts store the sum of the balances of groups of detail accounts Summary Revenue Account……….15,000 Detailed Revenue Account A…..10,000 } Detailed Revenue Account B…….3,000 Detailed Revenue Account C…….2,000

Defining Summary Accounts • Summary accounts enable quick online inquiries of account groupings • The following are common segments you can use to summarize information: Company Cost Center Account Product District

Summary Account Examples • Here are some common dimensions and examples of ways you can summarize information within each dimension: • Company • Cost Center • Account • Product • District

Detail Versus Summary Accounts Summary Accounts Detail Accounts Provide many efficiencies for business processing Provide accurate and direct posting for transactions and journals

Summary Accounts • Parent Values • Store summary balances. • Do not store account balances. • View balances online. • Cannot be viewed online because they do not maintain balances. • Use in recurring journals or • budget formulas. • Cannot be used in recurring journals or budget formulas because they do not maintain balances. • Use the constant segment type • in Mass Allocations. • Use the looping segment typein Mass Allocations. • Get quicker FSG reporting • because no summations are required. • Result in slower FSG reporting because summations are • required. • Require posting to additional accounts because balancesmust be updated each time journals are posted to one of the corresponding detail accounts. • Expedite the posting process because parent values maintain no balances and therefore do not have to be updated each time journals are posted. Summary Accounts Versus Parent Values

Parent Values and Rollup Groups • Assign related parent values to rollup groups before creating summary accounts Western area rollup Rollup Group California 199 Nevada 299 Oregon 399 State Parents Detail Segments East CA 101 West CA 102 East NV 201 West NV 202 East OR 301 West OR 302

Rollup Groups Rollup Groups

Summary Account Templates • General Ledger uses summary templates to: • Create summary accounts • Perform online summary inquiries • Speed processing of reports

Template Values Your template creates and maintains a summary account for every detail segment. This value creates the most summary accounts of any template value. D Your template creates and maintains a summary account that sums balances of all detail segments. T Your template creates and maintains a summary account for each parent segment value assigned to the rollup group you specify. Rollup Group

Defining Summary Accounts • Determine the number of summary accounts created by a template using this formula Number of Summary Accounts Created = Number of Detail Segment Values for Each Segment with a "D" Value X Number of Parent Segment Values for Each Segment with a Rollup Group Name X 1 For Each Segment with a "T" Value

Summary Account Creation Example Suppose a company has the following account segments and values: Company - Department - Account 01 - US 02 - CAD 101- East 102- West 4000- Parent Value Rollup Group = Revenue 4001- Revenue Prod A 4002- Revenue Prod B To create summary accounts to reflect total revenue for each company, all departments, the following summary template would be defined: D - T - Revenue This template would create the following summary accounts: 01 - T - 400002 - T - 4000

Adding child ranges Removing child ranges Assigning a new value to a Rollup Group Removing a rollup group assignment Changing a rollup group assignment Maintain Summary Accounts Overview • The following changes to your parent values cause changes in the summary account reporting structure:

D - T- Revenue Summary Template Maintaining Summary Templates Posting automatically updates summary templates if you have added new detail accounts since your last posting for your ledger To improve the performance of your posting program, run the Maintain Summary Templates program to update your summary templates

Setting Budgetary Control Setting Summary AccountBudgetary Control Options • Enter budgetary control options for summary account template • Choose Incremental Add/Delete Summary Templates from the Submit Request window

D - T- Revenue Summary Template Incremental Add/Delete Summary Templates Program Changes to your Flexfield Hierarchy? Run the Maintain Summary Template program Run the Incremental Add/Delete Summary Templates program No Yes To Update

Incremental Add/Delete Summary Templates Program Oracle General Ledger Summary Accounts

Various elements exist when planning your summary accounts Planning Summary Accounts Summary Account Summary Account Structure Parent Segment Values/Rollup Groups Summary Account Templates

Determine Summary Account Needs To determine your summary account needs: Consider Summary information you need for reports Summary balances you need for online inquiries How you want to use summary accounts in formulas and allocations

Plan Summary Account Structure • Select ways to summarize accounting information based on the structure of your accounting flexfield segments and your informational needs • Some common dimensions include: Company District Account Cost Center Product

Summary of Organizational Levels Regions Rollup Group: Level 3 Industry Groups Divisions States Product Categories Rollup Group: Level 2 Industries Cost Centers Districts Product Groups Rollup Group: Level 1 Companies Departments Stores Products Detail Segments Plan Summary Account Structure • Think about how you want to combine your summary views across different organizational dimensions

Plan Summary Account Structure • To clarify your plans, sketch out your summarization levels Rollup Group: Regions Western Region 100 Rollup Group: States Washington State 110 Oregon State 120 California State 130 Western Washington 111 Western Oregon 121 Northern California 131 Detail Segments: Districts Eastern Washington 112 Eastern Oregon 122 Central California 132 Southern California 133

Plan Summary Account Structure • Use Reporting Hierarchies • when: • You want to easily reorganizeyour summary views in thefuture • The primary use for summarization is reporting • Use Summary Accounts • when: • Your summary relationships are more permanent • You want to use summary accounts in formulas and allocations • You want online inquiry of these summary amounts • You want faster financial reporting of these summary amounts

Plan your parent segment values Define the parent segment values and enter meaningful segment value descriptions Select a naming or numbering method for rollup groups that is similar for all segments Plan Values and Groups To determine the parent values and rollup groups you need to:

Plan Summary Account Templates • Set up templates to define and maintain summary accounts. The number of summary accounts your template creates depends on the template segment values. Number of Summary Accounts Created = Number of Detail Segment Values for Each Segment with a "D" Value X Number of Parent Segment Values for Each Segment with a Rollup Group Name X 1 For Each Segment with a "T" Value

Summary • In this lesson you should have learned how to: • Explain what summary accounts are and how they are used in Oracle eBusiness applications • Define rollup groups for summary account creation • Assign parent values to rollup groups • Determine the number of summary accounts created by a template using a specific formula • Enter summary account templates to create summary accounts • Maintain summary accounts • Explain key implementation considerations in planning for summary accounts

Mastering Summary Accounts in General Ledger Management