Sunday, December 1, 2013

Oracle General Ledger Data Conversion Levels


Data Conversion Levels
Secondary Ledgers can be maintained at one of the following data conversion levels:
i)   Subledger Level Secondary Ledgers
ii)  Journal Level Secondary Ledgers
iii) Balance Level Secondary Ledgers
iv) Adjustments Only Secondary Ledger



Secondary Ledgers Data Conversion Levels

Conversion Rules

The following conversion rules are used to convert data from the primary ledger to the secondary ledger:
i) Chart of Accounts Conversion: If the secondary ledger uses a different chart of accounts from the primary ledger, a chart of accounts mapping is used to provide instructions for mapping accounts or entire account segments from the primary ledger to the secondary ledger.

ii) Calendar Conversion: If the secondary ledger uses a different accounting calendar from the primary ledger, the journal effective date determines the corresponding non-adjusting period in the secondary ledger.

iii) Currency Conversion: If the secondary ledger uses a different currency from the primary ledger, currency conversion rules are required to instruct the system on how to convert data from the currency of the primary ledger to the currency of the secondary ledger.

iv) Journal Conversion (Used by General Ledger Posting only): To select the journals for transfer to the secondary ledger based on journal source and category combinations. The General Ledger Posting program uses these rules to determine which journals to automatically transfer to the secondary ledger during posting.

Note: The above conversion rules do not apply to Adjustments Only level secondary ledgers because they must share the same chart of accounts, accounting calendar, and currency as the primary ledger.

Subledger Level Secondary Ledgers

The subledger level secondary ledger maintains an additional accounting representation of the subledger journals, journal entries, and balances. The subledger level secondary ledger is maintained using both Subledger Accounting and the General Ledger Posting program.

By assigning two different subledger accounting methods to the primary and secondary ledger, you can use Subledger Accounting rules to simultaneously account for the same legal entity transaction in both ledgers. This allows you to maintain multiple accounting representations of a single subledger transaction and have the different subledger journals produced in each ledger.

Note: Subledger Accounting integrates data from both Oracle and non-Oracle transaction sources. For a list of transaction sources that integrate with Oracle Subledger Accounting, query them in the Subledger Application page available from the Subledger Accounting setup menu.

When entering subledger transactions using Oracle financial subledgers that integrate with Subledger Accounting, Subledger Accounting automatically generates the appropriate accounting entries to both the primary and secondary ledgers in General Ledger based on the accounting rules defined for a particular subledger accounting method.

Journal Conversion Rules

By default, the following types of journals are replicated to the secondary ledger using General Ledger Posting, not Subledger Accounting:

 
i) journals created by Oracle subledgers that do not use Subledger Accounting

ii) manual journal entries entered in the primary ledger

iii) journals from spreadsheets or non-Oracle systems that were entered via the primary ledger's GL Interface table

Each time you post these journals in the primary ledger, they are automatically propagated to the subledger level secondary ledger, unless you defined journal conversion rules to exclude these journal sources from being transferred to the secondary ledger.

By default, journals that use the following journal sources are not transferred to the subledger level secondary ledger:

Move/Merge
 
Move/Merge Reversal
 
Revaluation
 
Subledger sources that use Subledger Accounting

Journal Level Secondary Ledgers

The journal level secondary ledger is an additional accounting representation of the primary ledger journal entries and balances. This type of secondary ledger is maintained using the General Ledger Posting Program only.

Every time you post a journal in the primary ledger, the same journal is automatically replicated and maintained in the secondary ledger, depending on the journal conversion rules specified for the secondary ledger.

By default, journals that use the following journal sources are not transferred to the journal level secondary ledger:
 
Move/Merge

Move/Merge Reversal

Revaluation

Balance Level Secondary Ledgers
The balance level secondary ledger only maintains the primary ledger balances in another accounting representation. To maintain balances in this type of secondary ledger, use General Ledger Consolidation to transfer the primary ledger balances to this secondary ledger.

If the balance level secondary ledger uses a different currency from the primary ledger, use General Ledger Consolidation to transfer balances from the primary ledger's balance level reporting currency to the balance level secondary ledger. This balance level reporting currency uses the same currency as the secondary ledger and represents the translated balances of the primary ledger.

Adjustments Only Secondary Ledger

The adjustments only secondary ledger is an incomplete accounting representation that only holds adjustments, manual adjustments, or automated adjustments created by Subledger Accounting. Create adjustments as follows:

To create manual adjustments, enter manual journal entries directly in the secondary ledger.

To create automated adjustments using Subledger Accounting, assign a subledger accounting method to both the primary and secondary ledger and define Subledger Accounting rules that transfer only the subledger accounting adjustment to this adjustments only secondary ledger.

Adjustments only secondary ledgers are useful if you do not need a complete ledger to perform management or statutory reporting. You can perform all of your daily transactions in the primary ledger and then book adjustments, such as management or statutory adjustments, in the adjustments only secondary ledger.

Using a secondary ledger as an adjustments ledger is not sufficient for companies that operate in countries that require companies to have two complete ledgers, one for statutory reporting and another for corporate accounting.

By itself, this adjustments only secondary ledger does not represent the complete accounting picture; it only holds the adjustments for the transactions contained in its associated primary ledger. Use a ledger set to combine the adjustments only secondary ledger with the primary ledger to obtain a complete secondary accounting representation that includes both the transactional data and the adjustments. Then report on the ledger set using General Ledger's Financial Statement Generator (FSG), which automatically summarizes data across ledgers in a ledger set.

Notes:

Ledger Sets enable you to group multiple ledgers together (that share the same chart of accounts and accounting calendar/period type combination) to obtain processing efficiencies, such as opening and closing periods and reporting across multiple ledgers simultaneously.

Adjustments only secondary ledgers must share the same chart of accounts, accounting calendar/period type combination, and currency as the associated primary ledger.

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