Sunday, December 1, 2013

The Primary Ledger Setup steps in oracle r12


The Primary Ledger Setup Steps in oracle r12

       Ledger Options

       Reporting Currencies

       Ledger Balancing Segment Value Assignments

       Subledger Accounting Options

       Operating Units

       Intracompany Balancing Rules

       Sequencing

       Secondary Ledgers

       Completing Accounting Setup

Ledger Options

       A ledger determines the chart of accounts, accounting calendar, currency, subledger accounting method, and ledger processing options for each company, legal entity, or group of companies and legal entities.

       Each accounting setup requires a primary ledger that acts as the main record-keeping ledger for none or one or more legal entities that use your main chart of accounts, accounting calendar, subledger accounting method, and currency to record and report on all of your financial transactions.

       To maintain an additional accounting representation, use secondary ledgers.

       To maintain an additional currency representation, use reporting currencies.

Reporting Currencies

To report on account balances in multiple currencies, assign reporting currencies to ledgers.

Reporting currencies can only differ by currency from their source ledger and must share the same chart of accounts, accounting calendar/period type combination, subledger accounting method, and ledger processing options as their source ledger.

Reporting currencies can be maintained at one of the following currency conversion levels:

          Subledger

          Journal

          Balance

Ledger Balancing Segment Value Assignments

Optionally assign specific balancing segment values to ledgers to track non-legal entity-related transactions or adjustments using a specific balancing segment value.

Note: Assign specific balancing segment values to all legal entities in an accounting setup before assigning a specific balancing segment value to the ledgers in the accounting setup.

Balancing segment values can be added to ledgers at any time.

          Before the accounting setup is complete, you can remove balancing segment values from ledgers.

          After the accounting setup is complete, you can only disable the balancing segment value by entering an end date.

To assign balancing segment values to ledgers:

1.       Open the Accounting Options page.

2.       Select the Update icon for the Balancing Segment Value Assignments step.

3.       View the balancing segment values assigned to the legal entities associated with the accounting setup in the Legal Entity Assignment region.

4.       In the Ledger Assignment region, enter a balancing segment value.

5. Optionally, enter a start and end date to make the value effective for a limited   time.

To remove balancing segment values:

Balancing segment values can only be removed from ledgers before the accounting setup is complete.

1.       Open the Ledger Balancing Segment Value Assignments page. You access this page by updating the Balancing Segment Value Assignments step for the ledger.

2.       To remove balancing segment values, click the Remove icon for each balancing segment value.

To disable balancing segment values:

Disable balancing segment values by entering an end date for the value. You cannot use the balancing segment value to enter new transactions or journals after the end date. You can only use the value for reporting and viewing historical data.

1.       Open the Ledger Balancing Segment Value Assignments page. You access this page by updating the Balancing Segment Value Assignments step for the ledger.

2.       To disable a balancing segment value, enter an end date.

Subledger Accounting Options

If you assigned a subledger accounting method to your ledgers, the Subledger Accounting Options step will be displayed with a status of Complete.

If you did not assign a subledger accounting method to your ledger, then this step will not be displayed.

You can update this step at any time from the Accounting Options page. Subledger Accounting Options allow you to define how to generate the accounting entries from subledger transactions.

Note: All of the subledgers assigned to a ledger inherit its subledger accounting method from that ledger.

Operating Units

You can assign operating units to the primary ledger to partition subledger transaction data when multiple operating units perform accounting in the context of one or more legal entities.

If using an accounting setup that has legal entities assigned, the Operating Units step will be displayed. The status for this step will be Not Started.

You can update the Operating Units step at any time from the Accounting Options page. You do not have to complete this step to complete your accounting setup.

Note: If you defined operating units in the Define Organization window in Oracle HRMS, then those operating units will be automatically assigned to the appropriate primary ledger in Accounting Setup Manager.

Prerequisites

The following prerequisites are required if you plan to assign operating units to a primary ledger in the Accounting Setup Manager:

          Define legal entities and assign them to accounting setups

          Complete primary ledger setup steps

To Define and Assign Operating Units:

1.       Open the Operating Units page.

2.       Select Add Operating Unit to both create and assign an operating unit to the primary ledger.

3.       In the Add Operating Units page, enter the following:

-          Name: The name of the operating unit

-          Short Code: The short name of the operating unit

-          Business Group: The highest level in the organization structure, such as the consolidated enterprise, a major division, or an operation company that secures human resources information

-           Default Legal Context: One of the legal entities assigned to the accounting setup to act as the default legal context

4.       Alternatively, you can create operating units by clicking Open Organization Form to open the Define Organization window in Oracle HRMS. When you define your operating unit and assign it to a primary ledger and default legal context, you will be able to view the operating unit assignment from Accounting Setup Manager.

5.       Click Apply or Add Another to define and assign multiple operating units.

6.       To mark the Operating Units step complete, select Complete.

Note: Once you add an operating unit to a primary ledger, you cannot remove it. You can prevent the use of that operating unit by not assigning it to a Security Profile in Oracle HRMS.

Intracompany Balancing Rules

If you enabled the Intracompany Balancing option for your ledger, the Intracompany Balancing step will be displayed. The status for this step will be Not Started.

Update the Intracompany Balancing step to define rules to balance journal entries between balancing segment values that are assigned to the same legal entity or ledger.

Note: You do not have to complete this step to complete your accounting setup. You can update this step at any time from the Accounting Options page.

Sequencing

Sequencing enables you to define accounting and reporting sequencing options for ledgers and reporting currencies. You can update this step at any time from the Accounting Options page.

Note: It is not necessary to complete this step to complete your accounting setup.

Secondary Ledgers

Secondary ledgers represent the primary ledger's accounting data in another accounting representation that differs in one or more of the following ways:

          chart of accounts

          accounting calendar/period type combination

          currency

          subledger accounting method

          ledger processing options

Use secondary ledgers for supplementary purposes, such as consolidation, statutory reporting, or adjustments for one or more legal entities within the same accounting setup. For example, use a primary ledger for corporate accounting purposes that uses the corporate chart of accounts and subledger accounting method, and use a secondary ledger for statutory reporting purposes that uses the statutory chart of accounts and subledger accounting method. This allows you to maintain both a corporate and statutory representation of the same legal entity's transactions in parallel.

Assign one or more secondary ledgers to each primary ledger for an accounting setup.

The secondary ledgers assigned can only perform the accounting for the legal entities within the same accounting setup.
Note: If an additional ledger is needed to perform accounting across legal entities or ledgers in different accounting setups, use a ledger in an accounting setup with no legal entity assigned. This can be used for multiple purposes, such as performing management reporting or consolidation across multiple legal entities.

2 comments:

  1. Regards
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