General Ledger Setup in R12

Overview of Setting Up:

Consider the guidelines in this chapter as you set up General Ledger for your
organization. References in this chapter to other areas of this and other Oracle
Applications User's Guides can enhance your understanding of how setting up General
Ledger affects the behavior of specific features and functions.

Implementation Considerations:
Oracle Applications is an integrated suite of business applications that connects
and automates the entire flow of business processes across both front and back
office operations and addresses the needs of a global enterprise. Because
Oracle Applications are engineered to work together, you can streamline your
setup process by sharing common setup data across applications.

Define Accounting Setups Using Accounting Setup Manager

The Accounting Setup Manager streamlines the implementation of your Oracle
Financial Applications by centralizing the setup steps for the following common
setup components that are shared across Oracle Financial Applications:

Legal entities
Ledgers (primary and secondary ledgers)

Reporting currencies

Oracle Subledger Accounting (SLA)

Intercompany accounts

Intracompany balancing rules

Sequencing options

Use the Accounting Setup Manager to define an accounting setup. Each

accounting setup defines the accounting context for one or more legal entities or
a business need that does not involve legal entities.
If defining an accounting setup for one or more legal entities, the accounting
setup includes the legal entities, ledgers, and transaction processing options that
control the accounting for the legal entities.
The accounting setup process consists of the following steps:

1. Create an Accounting Setup Structure: The accounting setup structure

creates the framework of the accounting setup and identifies the legal
entities, if any, type of accounting setup, and ledgers.
2. Complete Accounting Options: Depending on the type of accounting setup
you define, you must complete different accounting options to specify how
you want to perform accounting and process transactions. Accounting
options include ledger options, reporting currency options, subledger
accounting options, intercompany accounts, intracompany balancing
rules, and sequencing options.
3. Complete the Accounting Setup: Completing the accounting setup marks
the accounting setup complete and launches the General Ledger
Accounting Setup program. This program performs the necessary
validations to make the setup components of an accounting setup ready
for transaction processing and journal entry.
See: Oracle Financials Implementation Guide

Complete General Ledger Setup Steps

To create accounting setups, you must complete the General Ledger
prerequisites that are used to create ledgers and other setup components in
Accounting Setup Manager.
You need to perform this step once for each ledger you define with differences in
charts of accounts, accounting calendars, and currencies.
See: Setting Up General Ledger.

Setting Up General Ledger

Oracle iSetup
If you are implementing a new instance of the Oracle e-Business Suite and have
relatively standard implementation requirements, you can use Oracle iSetup to
rapidly configure the following applications:

Oracle General Ledger

Oracle Payables

Oracle Receivables

Oracle Cash Management

Oracle Assets

Oracle Purchasing

Related Product Setup Steps

The following steps may need to be performed to implement Oracle General
Ledger. These steps are discussed in detail in the Setting Up sections of other
Oracle product user's guides. The following table lists each step with a reference
to the various Oracle Application user guides.

Set Up Underlying Oracle Applications Technology

During GL setup, you need to complete several steps related to other products:

Performing system-wide setup tasks such as configuring concurrent

managers and printers
Managing data security, which includes setting up responsibilities to allow
access to a specific set of business data and complete a specific set of
transactions, and assigning individual users to one or more of these
responsibilities.
Setting up Oracle Workflow

System Administration Setup Steps

Use the Oracle Applications System Administrator's Guide and Oracle
Applications Flexfields Guide for help in completing the following setup steps.
Step

Reference

Set up printers, security, and audit trails.

Common Applications
See: Oracle Applications System Administrator's Guide
Set up accounting and descriptive flexfields.
See: Oracle Applications Flexfields Guide

Common Applications

Oracle Human Resources Setup Steps

Use the Setting Up Oracle Human Resources section in the Oracle Human
Resources User's Guide for help in completing the following setup steps.
Step

Reference

Define Your Employees Common Applications

See: Enter Person.
Note: You can enter employee information in Oracle General Ledger if
Oracle Human Resources is not installed. See: Entering a New Employee.
Other Sources

Oracle Applications System Administrator's Guide

Oracle Workflow Guide

Define Legal Entities

If you plan to record accounting transactions for one or more legal entities, you
can use Oracle Legal Entity Configurator or the Legal Entities tab in Accounting
Setup Manager to define your legal entities.
Note: The Legal Entity pages of Accounting Setup Manager are the same
as the Legal Entity pages in Legal Entity Configurator. The only difference
is that you can assign balancing segment values to legal entities using
Accounting Setup Manager. It is strongly recommended that you assign
specific and unique balancing segment values to your legal entities to help
you identify legal entities during transaction processing and reporting and
take full advantage of all of the legal entity-related features.
Note: If you plan to use jurisdictions that do not come seeded, you can
define your own jurisdictions using Legal Entity Configurator before you
define legal entities. A jurisdiction is the intersection of the physical territory
and type of legislation within which judicial authority may be exercised. The
jurisdiction is used to assign a territory to a legal entity.
See: Defining Jurisdictions.
See: Defining Legal Entities.

Define Subledger Accounting Methods

If you plan to use Oracle Subledger Accounting (SLA) to integrate data from
Oracle Financial Subledgers and non-Oracle systems with Oracle General
Ledger, you can define subledger accounting methods using Oracle Subledger
Accounting (SLA).
Oracle Subledger Accounting seeds two subledger accounting methods:
Standard Accrual and Standard Cash. If you want to define your own subledger
accounting methods, you must define them using Oracle Subledger Accounting.
When you define ledgers in Accounting Setup Manager, you can optionally
assign a subledger accounting method to your ledger to use this feature.
You must perform this step for each subledger accounting method.
See: Defining Subledger Accounting Methods.

General Ledger Setup Flowchart

While you can set up your Oracle General Ledger application in many different
ways, and defer optional set up steps until you are ready to use the
corresponding functionality, we recommend you use the order suggested in the
following flowchart:
Some of the steps outlined in this flowchart and setup checklist are Required
and some are Optional. You need to perform Optional steps only if you plan to
use the related feature or complete certain business functions.
The following setup steps are a high level overview of the setup steps related to
Oracle General Ledger and Accounting Setup Manager. The detailed steps are
listed on the following pages.