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Accounting Setup in Oracle General Ledger

The document discusses accounting setup in Oracle General Ledger R12. It describes how accounting setup is used to define the accounting structure and control transaction processing across Oracle Financial Applications. There are three main steps to accounting setup: 1) assign legal entities, 2) define primary and secondary ledgers to create the accounting representation, mapping ledgers to charts of accounts and assigning attributes, 3) save the accounting structure. The purpose is to set up the necessary structure to process transactions properly based on attributes like legal entity, currency, calendar, and accounting method.

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151 views3 pages

Accounting Setup in Oracle General Ledger

The document discusses accounting setup in Oracle General Ledger R12. It describes how accounting setup is used to define the accounting structure and control transaction processing across Oracle Financial Applications. There are three main steps to accounting setup: 1) assign legal entities, 2) define primary and secondary ledgers to create the accounting representation, mapping ledgers to charts of accounts and assigning attributes, 3) save the accounting structure. The purpose is to set up the necessary structure to process transactions properly based on attributes like legal entity, currency, calendar, and accounting method.

Uploaded by

Ashwin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Accounting setup in Oracle General Ledger - R12

Accounting setup is used to set up the accounting structure which controls transaction
processing across Oracle Financial Applications . With Accounting setup manager we
can define and maintain the accounting setup for Legal Entities,
Ledgers,

Operating Units,
Subledger Accounting,
Intercompany and Intracompany Balancing, and
Reporting Currencies
Responsibility: General Ledger
Navigation:
Setup : Financials : Accounting Setup Manager Accounting
Setups

Click on Create Accounting setup to setup the Accounting structure.


There are three steps in Accounting setup process.
1. Assign Legal Entities:
Here we may create or assign existing LE to the accounting structure. We need not
assign legal entity if there is no legal entity context.
If legal entities are involved, we need to define separate accounting setup for each
legal entity, which require it's own primary ledger. So ledgers have to be defined for
each legal entity separately.
The need for other legal entity depends on Chart of Accounts, calendar, Currency,
Accounting Method and Ledger processing options. If a legal entity requires any one
of the above attributes to be different, a separate primary ledger is required.
Chart of accounts refers to the number of segments that a Chart of accounts
structure consistes of.
Calendar refers to the type of accounting calendar that a legal entity uses. Ex:
Monthly or Quarterly Calendar.
Currency refers to the primary currency that a legal entity belongs to.
Accounting Method refers to the subledger accounting methods based on the

different accounting standards that a legal entity operates.


Ledger Options refers to the options that control how journals and transactiones are
processed for a ledger.
Ex: Journal approval, Suspense account, Average balances, Intracompany
balancing option, etc.
If we assign Legal entities to the accounting structure, we must assign specific
balancing segment values to legal entities to identify and secure transactions by
legal entity.

2. Define Accounting Representations:


Here we need to define Primary and Secondary ledgers to make the Accounting
representation.
Primary Ledgers are mandatory. We need to define the primary ledger for each legal
entity and accounting setup.
Secondary ledgers are optional. Secondary ledgers have to be assigned to the
accounting setup or primary ledger to maintain multiple accounting representations
for the same legal entity. A secondary ledger can differ in one or more of the
following attributes from primary ledger.
Chart of Accounts,
Currency,
Calendar,
Accounting Convention
Secondary ledgers can be maintained at different levels such as:
Subledger level
Journal level
Balance level
Adjustments

In this step we can map the ledgers to chart of accounts and assign currency,
calendar, subledger accounting method and reporting currency.
Reporting currencies have to be assigned when you want diferent currency
representation to primary or secondary ledgers. Reporting currencies must share
same chart of accounts,calendar,accounting method and ledger processing options
as their source ledger. Reporting currencies can be assigned at different levels.
Subledger level
Journal level
Balance level
We can not use subledger level reporting currencies for secondary ledgers.
3. Save Accounting structure: This step is to review and complete the accounting
setup.

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