Accounting Setup Manager

R12 General Ledger Management Fundamentals

Copyright 2007, Oracle. All rights reserved.

Objectives

After completing this lesson, you should be able to do the

following:
Describe Accounting Setups
Ledger Processing Options
Secondary Ledgers

Describe Reporting Currencies

Describe Accounting Setup Considerations
Accounting Setups with One Legal Entity
Accounting Setups with Multiple Legal Entities
Accounting Setups with No Legal Entities

Copyright 2007, Oracle. All rights reserved.

Accounting Setups
An accounting setup is based on several factors, such as:
legal environment
number of legal entities maintained in the same primary
ledger
business needs
transaction processing needs

Copyright 2007, Oracle. All rights reserved.

Ledger Processing Options

This table is an example of ledger attributes for a global company
that has four legal entitiestwo in the U.S., one in the U.K., and one
in France.
Ledger
Attributes

U.S. East
Operations

U.S. West
Operations

U.K.
Operations

France
Operations

Chart of Accounts

Corporate

Corporate

Corporate

French Statutory

Accounting
Calendar/Period
Type

Monthly/Month

Monthly/Month

Monthly/Month

Fiscal/Fiscal

Currency

USD

USD

USD

EUR

Subledger
Accounting
Method

Standard
Accrual

Standard
Accrual

Standard
Accrual

French GAAP

Ledger Options

Enable Average
Balances
Enable Journal
Approval

No Average
Balances or
Journal Approval
enabled

No Average
Balances or
Journal Approval
enabled

No Average
Balances or
Journal Approval
enabled

Copyright 2007, Oracle. All rights reserved.

Secondary Ledgers
Additional ledgers called secondary ledgers can optionally be
assigned to an accounting setup to maintain multiple accounting
representations for the same legal entity. For example:
Subledger Level Secondary Ledgers
Journal Level Secondary Ledgers
Balance Level Secondary Ledgers
Adjustments Only Secondary Ledgers

Copyright 2007, Oracle. All rights reserved.

Reporting Currencies
If you only need a different currency representation of the
primary or secondary ledgers, assign reporting currencies to
them. For example:
Subledger Level Reporting Currency
Journal Level Reporting Currency
Balance Level Reporting Currency

Copyright 2007, Oracle. All rights reserved.

Accounting Setup Considerations

Legal Entity

Vision Credit
Group Legal
Entity

Vision Services &

Vision Consulting
Legal Entities

Vision Operations
Legal Entity

Number of Legal
Entities

One

Multiple

One

Primary Ledger

Vision Credit Group

Vision Services

Vision Operations

Chart of Accounts

Corporate

Corporate

Corporate

Calendar

Monthly

Monthly

Monthly

Currency

USD

USD

USD

Copyright 2007, Oracle. All rights reserved.

Accounting Setups with One Legal Entity

One Legal Entity

Assign one legal
entity to an
accounting setup
type

Provided
your legal
entities meet
certain criteria.

Copyright 2007, Oracle. All rights reserved.

Accounting Setups with Multiple Legal Entities

Multiple Legal
Entities
When an
accounting setup
has more than one
legal entity

Multiple
legal entities
can share the
same primary
ledger
attributes.

Copyright 2007, Oracle. All rights reserved.

Accounting Setups with No Legal Entities

No Legal Entities
Accounting setups
that have no legal
entities
assigned

Can be used
for multiple
purposes
according to
business
needs.

Copyright 2007, Oracle. All rights reserved.

Designing the Chart of Accounts

Feature Comparison by Accounting Setup
The number of legal entities assigned to an accounting setup
affects different key features available in the E-Business Suite.
Review the features in the following table to understand how
different features are affected.
Feature

One Legal Entity

Assigned

Multiple Legal
Entities Assigned

No Legal Entities
Assigned

Open/Close GL
Accounting Periods

Legal entities can

open/close periods at
different times.

All legal entities in a

ledger must open/
close periods at the
same time.

The standalone ledger

can open/close
periods independently.

Document
Sequencing

Legal entities can

have autonomous
document sequencing
rules.

All legal entities in a

ledger must share the
same document
sequencing rules.

The ledger can have

autonomous
document sequencing
rules.

Multiple Legal Entity

Journals

No

Journal entries can

cross multiple legal
entities.

N/A
No legal entities exist.

Copyright 2007, Oracle. All rights reserved.

Summary

In this lesson, you should have learned how to:

Describe Accounting Setups
Ledger Processing Options
Secondary Ledgers

Describe Reporting Currencies

Describe Accounting Setup Considerations
Accounting Setups with One Legal Entity
Accounting Setups with Multiple Legal Entities
Accounting Setups with No Legal Entities

Copyright 2007, Oracle. All rights reserved.