Flexfield Qualifiers and Segment Qualifiers - "Natural Account

Let us go step by step for understanding the significance of Natural AcccountQualifier, 1. 2. 3. Types of Natural Accounts and their Details Flexifield Qualifiers Setup How and where the type of account was assigned to Natural segment values in oracle apps.

Types of Natural Accounts and their Details

There are 5 natures of account. Every account can have any one nature and that’s why we can also call it natural account. These natures are:

1. 2. 3. 4. 5.

Assets Liabilities Revenue Expenses Owner’s Equity ASSET: Literally asset is any thing which is valuable to a person, organization or any entity. For example we say that “his quick learning ability is an asset to him” or “Her writing ability is her asset”. Why do we say that? Because quick learning skill or writing ability adds value to a person. A writer sells his writing skills to earn money, similarly in terms of business anything which is valuable to a business is the asset. Say your organization is a pharmaceutical and manufactures Medicines, then all the chemicals used to manufacture medicine is your asset or in other words the Raw Material is your asset. The cash your organization own is an asset because it can be used to buy items or pay your employee who in turn are used to run your business. There are different types of assets, the broader categories of asset are Current Asset and Fixed, but let’s not discuss it here. For now it is enough to know that asset is anything which is valuable to your organization. Asset INCREASES when it is Debited and DECREASES when Credited. Any organization which is registered with the government and exists as Legal Entity is obligated to disclose its Assets on the balance sheet to the government and its Creditors. You might ask Who are creditors and Why is it that an organization is obligated to disclose asset to them? With Creditor comes in the liability. LIABILITY: Comes from the word “Liable”. Literal meaning of Liable is “to be obligated” , “to be responsible” or “Legally responsible”. In terms of accounting you become liable, responsible to pay when you buy or purchase any thing from

Navigation: Flexifield Registration Form . How payments are made? Either by Cash or Credit which eventually means Cash. Revenue are not displayed in Balance Sheet. OWNER’S EQUITY: This is the share of owner in the business. Again. You are liable to compensate whatever you’ve bought. Revenue INCREASES when it is Credited and DECREASES when Debited. We incur expenses daily. Equity INCREASES when it is Credited and DECREASES when Debited. Following table shows the Tabular form of the effect Nature Asset Liability Equity Revenue Expense DEBIT Increase (+) Decrease (-) Decrease (-) Decrease (-) Increase (+) CREDIT Decrease (-) Increase (+) Increase (+) Increase (+) Decrease (-) Flexifield Qualifiers Setup Flexifield Qualifiers are registered as part of Flexifield Registration. There are different type of expense Expense INCREASES when it is Debited and DECREASES when Credited. there are different types of liabilities like Short Term Liability and Long Term Liability. Whenever an organization books a liability. Liability INCREASES when it is Credited and DECREASES when Debited. So redefining Expense “The outflow of cash to any person or organization for its supplied Goods or rendered Services”. This gain is called Revenue or Income. dine-out payments are expenses. REVENUE: By definition it is the total gain before inducting any expense. it records an increase in Asset and with this increase comes the gain it has made from selling the goods or services. Expenses are associated with Liability. It is mostly associated with the Asset. taxi fare is an expense.anotherentity. Generally an organization records its liability and pays it afterward. They are reflected in Owner’s Equity. it is mostly against some expense. EXPENSE: By definition any payment made is an expense. for example. When any organization sell goods or renders its services.

Query For the title “Accounting Flexifield” Then Click the Qualifiers button in the above form to check the registration of Flexifield Qualifiers and Segment Qualifiers. To check the types of Segment Qualifiers allowed… Query for the Quick code type mentioned in the above screenshot in quick codes form. .

How and where the type of account (Segment Qualifiers) was assigned to Natural segment values in oracle apps. System attaches the above set of nature on the Value form. When we add the Natural Account Value. Query for the title “Accounting Flexifield” in the SEGMENTS Form . we have to define the nature of the account as well. when we attach the “Natural Account” Flexfield Qualifier to a segment.In Oracle General Ledger.

Click on the segments button in the above form to view segment details Choose the appropriate segment and click the “Flexifield Qualifiers” button to view the below screen Close the form and open the “values” to check the values attached to segment .

Query for the Accounting Flexifield Choose the segment which has flexifield Qualifier as “Natural Account” and then click the “Values. . Qualifiers” tab to check the segment qualifiers assignment. Hierarchy.

Thus the Flexifield qualifiers has more significant in COA setup". . Like in Payables." When we define the natures of the account. so if you’ll give an expense or asset account. the accounting rules of Debit and Creditworks accordingly. it will increase and vice versa. the line item is Debit side.

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