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Using Accounting Setup Manager

Using Accounting Setup Manager

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Using Accounting Setup Manager

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  1. Using Accounting Setup Manager R12 General Ledger Management Fundamentals

  2. 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

  3. Objectives After completing this lesson, you should be able to describe the following: Operating Units Intracompany Balancing Rules Sequencing Secondary Ledgers Complete Accounting Setup

  4. 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.

  5. Accounting Setup Prerequisites Complete General Ledger Setup Steps Optionally, define additional Subledger Accounting Methods

  6. Create Accounting Setup Demonstration

  7. Legal Entities Pages

  8. Accounting Setups Pages Accounting Setups Legal entities Attributes Ledgers Use the Accounting Setups pages to analyze and update various accounting setups

  9. Accounting Setup Manager Checklist

  10. Accounting Setup Manager Checklist (continued)

  11. Legal Entities Overview Use Accounting Setup Manager to define legal entities and their accounting context

  12. 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

  13. 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

  14. Completing Accounting Setups Accounting Setups You must ensure the correct balancing segment values are assigned to legal entities across all of your accounting setups

  15. 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

  16. Defining Legal Entities Using Accounting Setup Manager • Accounting Setup Manageris 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

  17. Updating Balancing Segment Values To update balancing segment value assignments for legal entity, use: • Legal Entities tab • Accounting Options page

  18. 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

  19. 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

  20. 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

  21. Creating an Accounting Setup Creating an accounting setup is comprised of the following steps: Assigning Legal Entities Defining Accounting Representations Saving the Accounting Structure

  22. Completing Accounting Options The structure of the Accounting Options page: Displayed in checklist format to ensure correctness of setup steps

  23. Updating Legal Entities Using the Accounting Options page, you can make various revisions to legal entities

  24. 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

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. 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

  32. 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

  33. 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

  34. Secondary Ledgers Subledger Level Secondary Ledgers Journal Level Secondary Ledgers Balance Level Secondary Ledgers Adjustments Only Secondary Ledger

  35. Secondary Ledgers Subledger Level Secondary Ledgers Journal Level Secondary Ledgers Balance Level Secondary Ledgers Adjustments Only Secondary Ledger

  36. Secondary Ledgers Subledger Level Secondary Ledgers Journal Level Secondary Ledgers Balance Level Secondary Ledgers Adjustments Only Secondary Ledger

  37. Secondary Ledgers Subledger Level Secondary Ledgers Journal Level Secondary Ledgers Balance Level Secondary Ledgers Adjustments Only Secondary Ledger

  38. Using Secondary Ledgers for Consolidated Reporting France(Parent Entity) US(Subsidiary) Legal Entity Name: France Operations Corp.Description: For Corporate AccountingChart of Accounts: CorporateCalendar: MonthlyCurrency: EUR Name: US OperationsDescription: For US AccountingChart of Accounts: CorporateCalendar: MonthlyCurrency: USD Primary Ledger Name: France StatutoryDescription: For Statutory ReportingChart of Accounts: StatutoryCalendar: FiscalCurrency: EUR Secondary Ledger

  39. Using Secondary Ledgers for Consolidated Reporting France(Parent Entity) US(Subsidiary) Legal Entity Name: France Operations Corp.Description: For Corporate AccountingChart of Accounts: CorporateCalendar: MonthlyCurrency: EUR Name: US OperationsDescription: For US AccountingChart of Accounts: CorporateCalendar: MonthlyCurrency: USD Primary Ledger Name: US Ops ConsolidationDescription: For Consolidation PurposesChart of Accounts: CorporateCalendar: MonthlyCurrency: EUR Name: France StatutoryDescription: For Statutory ReportingChart of Accounts: StatutoryCalendar: FiscalCurrency: EUR Secondary Ledger

  40. Using Ledgers for Consolidation Accounting Setup Exclusive Shared Shared Legal Entity France(Parent Entity) US(Subsidiary) UK(Subsidiary) Name: US OperationsChart of Accounts: CorporateCalendar: MonthlyCurrency: USD Name: UK OperationsChart of Accounts: CorporateCalendar: MonthlyCurrency: GBP Name: France OperationsChart of Accounts: CorporateCalendar: MonthlyCurrency: EUR Primary Ledger Name: France StatutoryChart of Accounts: StatutoryCalendar: FiscalCurrency: EUR Secondary Ledger

  41. 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

  42. 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.

  43. 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.

  44. 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

  45. In this lesson, you should have learned how to describe the following: Operating Units Intracompany Balancing Rules Sequencing Secondary Ledgers Complete Accounting Setup Summary