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R12 Creating and Using A Ledger PDF
R12 Creating and Using A Ledger PDF
R12 Creating and Using A Ledger PDF
General Ledger
Product: Oracle General Ledger Product Version: 12.X.X
This document was authored by an Oracle customer and has not been subject to an independent technical
review.
Abstract
Recently we made presentations to a client about the R12 features in Oracle
General Ledger. The client was interested in knowing various new features in
R12 for their financial modules. We started with the General Ledger
Applications Ledger feature.
This document details the steps we performed as part of our Demo to create
a Ledger in R12 of Oracle General Ledger. We also noted down the
observations of the new features for ease of implementation and
requirement gathering.
We illustrated the Ledger definition cycle by tying the following 4 Cs:
1 Calendar
2 Currency
3 Chart of Accounts
4 Convention (Accounting Convention also known as Subledger Accounting
Method)
Observation: There is no set of books in R12, instead a Ledger had to be
created. In addition to the 3 Cs of Calendar, Chart of Accounts and Currency
which were the components of Set of Books in R11i, R12 introduced a 4th C,
Convention. The Convention represents the accounting method used at
subledger level like Accrual basis of accounting or Cash basis of accounting
The following are the major steps we performed during our demo of a
Ledger creation and usage:
1. Defining Accounting Flexfield
2. Defining Legal Entity
3. Defining Ledger
4. Completing mandatory Accounting Options
5. Assigning a Ledger to a Responsibility
6. Using the Ledger
The following are the further attributes for the above segments
Segment
Length Format
Validation
Flexfield Qualifier
Type
Company
2
Char
Independent Balancing
Cost Center
3
Char
Independent Cost and Secondary
Tracking
Account
4
Char
Independent Natural
Intercompany 2
Char
Independent Intercompany
Ensured the following:
a) Minimum of one value for each segment had been defined
b) A value in the Natural Account with Type as Ownership/Stockholder's
Equity was used for Retained Earnings
c) If Dynamic Insert was not to be enabled, the proposed retained
earnings account was to be created manually in the Setup > Financials
> Combinations form.
Unlike the prior application releases majority set up screens being form
based, the Accounting set up manager is a user friendly HTML based
interface guiding the user in performing all the steps. The first screen is a
multi screen use screen which allowed users create/update both legal
entities and Accounting setups.
The above screen was also a multi use screen that allowed us to query the
predefined Legal Entities as well as create new legal entities. Then we
clicked on Create Legal Entities button to open the Create Legal Entities
screen which appeared as below:
Observations
A completed legal entity is required for assigning balancing
segment values as part of completing the Accounting Set up
Options
A Legal Entity is required for associating an Operating Unit where
Oracle Subledgers are used in the Organization
For usage / definition of Ledger, usage of Legal Entity is not a prerequisite, so we can have ledgers which are not associated to any
Legal Entity.
3. Defining a Ledger
Once we defined the legal entity, the next step was the creation of a ledger.
As mentioned earlier we found Ledger in R12 is effectively the substitution
for Set of Books in prior releases.
We ensured the following prerequisites before defining a ledger
Since it was the first ledger, it became a Primary ledger. The following is the
Define Accounting Representations screen
Once we completed the Required ( those marked with *) and the optional
steps depending on what features we intended to use, the last step showed
all the information for review before we Finished the setups
We noticed that the name of the Ledger Options changes to the Ledger
Name we defined and that all other set up steps are enabled for Update (this
will not be the case before the completion of the Ledger Options)
The Reporting Currencies Option
Reporting currencies are additional currency representations of ledgers.
Reporting currencies can be used for supplementary reporting purposes,
such as consolidation or management reporting. Reporting currencies can be
maintained at the following currency conversion levels:
Balance Level: The Balance level reporting currency is maintained only
for GL account balances by using translation to convert the balances from
the ledger currency to the reporting currency. This is same as Translation in
earlier versions of Oracle General Ledger
Journal Level: The Journal level reporting currency is maintained for GL
journal entries and balances when you post journals in your primary or
secondary ledger. This type of reporting currency is maintained using the
General Ledger Posting program. This is same as the Thin MRC in 11i
Version of General Ledger
Subledger Level: The Subledger level reporting currency is maintained
for primary ledgers only. They maintain a currency representation of the
primary ledgers' subledger journals, journal entries, and balances. This type
is maintained by Oracle Subledger Accounting (SLA) and the GL Posting
program. This is the Multiple Reporting Currencies Feature in earlier releases
of Oracle General Ledger
(From R12 Oracle General Ledger User Guide for reference purposes)
The above screen reflects the updated status for the Reporting Currencies
Option.
The Balancing Segment Values Assignments Option was found to be a
new feature in R12. This was used to tie the Legal Entity/Ledger to the
balancing segment values.
We observed the following:
a) What was assigned at LE level automatically flowed to the Ledger level
b) The one assigned at the Ledger level stayed at Ledger level
c) Whatever was assigned to the legal Entity were the only VALID subledger
values.
d) Some forms still displayed all the balancing segment values (but at some
stage or the other validation was done to ensure that only those attached to
an LE/Ledger are used in the system) - Journal entry form displayed all the
segment values, but on completion threw up a message that The particular
BSV is not valid for that ledger
e) If nothing was assigned to the LE/Ledger, all the values of the balancing
segment were valid
When we clicked on the update icon for this option and clicked on add
balancing segment values button, the system showed all the values for the
segment which is qualified as the Balancing Segment in our chart of
accounts, we chose one of the value(s) and click on complete.
The above screen reflects the updated status for Balancing Segment Values
Assignments Option.
The Operating Units Options is relevant if Oracle Subledgers are used in
the Organization. By using this option, we defined a new operating Unit and
associated with a Legal Entity and Ledger. This form gave us the option to
access the Define Organizations form and complete the other information
related to an operating Unit.
The above screen reflects the updated status for Operating Units Option.
The next option Intercompany Accounts is used if there are transactions
across legal entities which have balancing segment values associated to
them. Since we had defined only one Legal Entity this option was not
applicable to us
The next option Sequence is used to generate numbers for Journal
entries. We were not using sequences, so this optional step was ignored.
Document History
Author: Kulasekhar Sribhashyam
Title: Oracle Financials Certified Professional
Date Created: 11-Sep-07
References
R12: Financials Implementation Guide
R12: Oracle General Ledger User Guide
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