Accounting Setup Manager Concepts

An Oracle White Paper October 2007

........................................................................................................................ Accounting Setup Manager Concepts.................................10 Subledger Accounting Methods......... Technical Overview .............14 Conclusion....................13 4.............................................6 Conversion Levels for Reporting Currency Ledgers: .......................................................................................................... ASM Implementation Considerations ........................................................14 ASM Main Underlying Tables......12 Completing an Accounting Setup....3 2....................................................11 Setup Steps.......3 1.................................6 3.............................................. What is the Accounting Setup Manager?....17 White Paper Title Page 2 .......Accounting Setup Manager Concepts Table of Contents Introduction...........................4 Conversion Levels for Secondary Ledgers:..............10 Legal Entities.......4 Ledgers..............................................................................

Other accounting options like retained earnings account. Accounting Setup Manager or ASM is the central place where all the accounting setup is defined and maintained for: – Legal Entities – Ledgers – Reporting Currencies – Balancing Segment Value assignment – Sequencing (Accounting and Reporting) -. 1. It will also describe the underlying tables for the Accounting Setup Manager user interface. suspense account. White Paper Title Page 3 . What is the Accounting Setup Manager? It is one of the main features of the Ledger Architecture introduced in Release 12. which replaces the Set of Books form using a web-based interface.Accounting Setup Manager Concepts Introduction Oracle Accounting Setup Manager (ASM) is the new configuration tool for accounting setups in Oracle General Ledger in the Release 12 of Oracle E-Business suite. This paper provides information to help familiarize the users of Oracle E-Business Suite with the new setup tool for the definition of ledgers and accounting setups as well as with some implementation considerations regarding the assignment of legal entities to ledgers and the use of subledger accounting methods. currency conversion type. etc.

Subledger Accounting Method: determines the accounting standards to be followed according to industry or local country laws. Accounting and Reporting Sequencing: additional ways to assign document numbers to journal entries to satisfy legal requirements as gapless journal numbers. Reporting Currencies: this is the new implementation of reporting sets of books.2. There are 2 types of sequencing that can be setup via ASM: Accounting sequencing and Reporting Sequencing. The default Accounting Method is Accrual accounting. Inter and Intra Company Balancing: inter – across multiple legal entities and intra – within a legal entity. It is not mandatory to have a legal entity. Accounting Setup Manager Concepts In release 12 the following concepts are introduced: Ledgers: sets of books are now called ledgers. Legal Entities: This is not new in Release 12 but that has had some changes. A new product called Advanced Global Intercompany System (AGIS) now handles intercompany transactions but the Intracompany setup and the definition of intercompany accounts can be done via ASM. The modeling of legal entities can be done as one legal entity per ledger or multiple legal entities in one ledger depending on business needs. Ledgers Ledgers are defined by 4Cs as opposed to 3 in previous releases: Chart of Accounts Calendar Currency AcCounting Method White Paper Title Page 4 . Legal entities are mandatory if Oracle Subledgers require a legal environment or if AGIS is going to be used.

Secondary Ledger or SL: It is optional and differs in one or more of the 4Cs from the PL. It provides an additional accounting representation of the PL to comply with legal requirements. ASM does not provide access to the forms to perform that setup. Reporting Currency or RC: Used when the only element that differs from the PL is the Currency. The setup for the Accounting Method. Primary Ledger or PL: It is the main ledger and has the most detail of information. is done via the Accounting Methods Builder. Primary and secondary ledgers can have RCs assigned. There are 3 types of ledgers: Primary and Secondary ledgers and reporting currency ledgers. if one different than the default is to be used. Please review the Oracle Subledger Accounting Implementation Guide for more information. It is stored in the tables as a ledger but does not need to be setup as a ledger via ASM. The setup for the first 3Cs is still done in General Ledger.The 4Cs must be defined prior to starting an accounting setup. The secondary and reporting currency ledgers store additional accounting representations of the information present in the White Paper Title Page 5 . The SL can only be assigned to one PL. It can have more than one secondary ledger assigned. If a RC has not been assigned to a PL/SL. when Translation is run in a ledger the reporting currency is automatically added to the ledger setup.

For other sources/categories that do not use SLA. Journal level: This level maintains primary ledger journal entries and balances in an additional accounting representation. Adjustment only level: This type of ledger only provides an incomplete accounting representation holding only adjustments. or automated adjustments from SLA. It uses the Consolidation program to transfer balances from the PL to the SL. SLA creates the information directly into the SL for sources/categories that use SLA. which are called Conversion levels. Conversion Levels for Reporting Currency Ledgers: Reporting currencies have the following three conversion levels: White Paper Title Page 6 . The chart of accounts.primary ledger. Conversion Levels for Secondary Ledgers: Secondary ledgers have the following four conversion levels: Subledger Journals level: This level maintains subledger journals. the GL Posting program creates the information in the SL. accounting calendar. It can be determined which journal sources/categories will be replicated when posting takes place. it gets created in the Secondary Ledger. Note: Journals can be entered directly into any type of secondary ledger. which can be manual GL adjustment entries. This is done in ASM in the Journal Conversion Rules. There are different levels of detail in which this information is stored. Balances level: This level maintains primary ledger balances in another accounting representation. Posting in the Secondary ledger happens in a separate step. Every time a journal is posted in the Primary ledger. and balances in the additional accounting representation. and currency must be the same as the primary ledger. general ledger journal entries.

A subledger level RC can only be assigned to primary ledgers. This level is equivalent to full MRC. Balances level: Use the GL Translation program to maintain balances in the reporting currency. Following is a graphical representation of the conversion levels discussed above for secondary and reporting currency ledgers: White Paper Title Page 7 . Note: Journals can be entered directly into the subledger and journal level reporting currencies. This level is the equivalent of thin MRC. The journal created for the RC is created within the same batch of the primary ledger journal batch and is automatically posted. Journal level: The GL journals only are replicated via the Posting program.Subledger level: Use SLA and the GL Posting programs.

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journal approval. The general rule is to have a primary ledger per legal entity. If legal entities differ in any of the 4Cs or require different ledger processing options like: average daily balances.3. ASM Implementation Considerations Legal Entities Legal entities are used to provide a legal environment for Oracle financial subledgers or transactions that require a legal entity context. or sequencing a different primary ledger is required. Assigning balancing segment values to legal entities is strongly recommended to make easier the identification of transactions White Paper Title Page 10 . Legal requirements will also drive the decision of how many legal entities per primary ledger should be assigned.

It will only affect new journals. This is done in Subledger Accounting. for instance: Entered Currency Balancing Account. White Paper Title Page 11 . The accounting method can be changed at any time. Subledger Accounting Methods The subledger accounting method is required if using Oracle Subledger Accounting. Assignment of balancing segment values to legal entities is required for Intercompany accounting. Balance Subledger Entries by Ledger Currency.and for reporting purposes. The screen shot belows shows the fields under the Subledger Accounting section. There is optional information needed when an accounting method is selected in ASM. Additional accounting methods may be defined. A subledger level secondary ledger requires a subledger accounting method for both the primary ledger and the secondary ledgers.

Define and assign operating units to the primary ledger. 2. enable journal reconciliation. The items in bold are required: 1. Define intercompany accounts. subledger accounting options. a chart of accounts. White Paper Title Page 12 . journal approval. journal tax. first ever open period. 4. Complete reporting currencies. 3. enable intracompany. Assign a ledger name. accounting calendar-period type. Complete ledger options: retained earnings account. rate type. Create/assign a legal entity if required. cumulative translation adjustment account. budgetary control.Setup Steps The accounting setup manager allows creating an accounting setup including the tasks below. rounding difference account. currency and accounting method. 5. suspense account. 6.

Assign balancing segment values to ledgers. The navigation steps to access the ASM in General Ledger are: Setup : Financials : Accounting Setup Manager: Accounting Setups Completing an Accounting Setup An accounting setup needs to be complete before it can be used. 11. The General Ledger Accounting Setup program performs the necessary validations to make the setup components of an accounting setup ready for transaction processing and journal entry. When clicking on the ‘Complete’ button in ASM. some components cannot be deleted: legal entities. a message appears to confirm whether the setup should be saved. Please review concurrent request id. This is a new program in Release 12. the General Ledger Accounting Setup Program is launched automatically. Upon completion. You have just completed the accounting setup: <primary ledger name example: CN1 PL (Corp) (USD)>.7. Complete accounting setup. <request id>. The General Ledger Accounting Setup Program has been submitted. 12. If the response is ‘Yes’. Specify the ledger attributes for one or more secondary ledgers. 8. 10. This program creates the following Data Access Sets: White Paper Title Page 13 . which is a flattening program introduced to precalculate data that can be used to speed up queries and data processing. 9. Assign balancing segment values to legal entities. and reporting currencies. Define sequencing options. Define intracompany balancing rules. balancing segment values. The following message appears in ASM when the program in launched: Confirmation JavaScript enabled browser required. Make sure this request completes successfully before you enter transactions.

A backward compatible view called Gl_Set_Of_Books was created. ASM Main Underlying Tables • GL_LEDGERS: Replaces GL_SETS_OF_BOOKS. This profile option can be assigned to a single ledger or a ledger set. The ‘SLA: Enable Data Access Security in Subledgers’ profile option determines whether the General Ledger Data Access Set security mechanism is applied for a subledger application responsibility when viewing. Technical Overview There are several new tables with ASM. The Oracle subledgers use the profile option ‘GL Ledger Name’ to determine the ledger a subledger responsibility will have access to. White Paper Title Page 14 . Following is a description of the tables and what they store. One for the Primary Ledger and the Reporting Currencies. One for a ledger set The General Ledger Accounting Setup program is also launched upon: .a. One for each Secondary ledger d. This profile option is used by GL responsibilities.The creation of a data access set Once the setup program has completed successfully it is necessary to define the following profile options: ‘GL: Data Access Set’ replaces the ‘GL: Set of Books’ name profile option of previous releases. 4.The creation of a ledger set . One for the Reporting Currencies c. or creating subledger journal entries associated with a given ledger. b. reporting. The field set_of_books_id is now called ledger_id. •GL_LEDGERS_CONFIGURATIONS: stores every accounting setup.

•GL_LEDGER_NORM_SEG_VALS: stores BSV assignments to ledgers.g. then in addition to the ledger set tables. Following is a graphical representation of the tables used in ASM: White Paper Title Page 15 . Each event could result in multiple tables getting updated.•GL_LEDGER_CONFIG_DETAILS: Keeps track of various configuration steps and statuses. If you add a new ledger to a ledger set. •GL_LE_VALUE_SETS and GL_LEGAL_ENTITIES_BSVS: store Balancing segment value (BSV) assignments to legal entities. E. •GL_LEDGER_RELATIONSHIPS: stores all ledger relationships such as PL to RC and PL to SL. then all values are valid for the legal entity. the data access set tables that store data to access the ledger set would also get updated. •GL_JE_INCLUSION_RULES: stores Source-category conversion rules. Every BSV or balancing segment value assigned to the legal entity is also assigned to the ledger. If no values are assigned to the legal entity.

GL_LEDGER_SEGMENT_VALUES stores information on balancing segment value assignments to ledgers. Programs like MassAllocation and FSG use this data.Other tables: GL_ACCESS_SET_ASSIGNMENTS and GL_ACCESS_SET_LEDGERS store flattened information to improve security checks on data access sets that contain privileges for ledger sets or parent segment values. GL_LEDGER_SET_ASSIGNMENTS stores flattened information to speed up queries on ledger sets that contain other ledger sets. it will be expanded and stored as detail segment values. GL_SEG_VAL_HIERARCHIES stores parent and child segment value mappings based on the segment value hierarchy. White Paper Title Page 16 . If a parent segment value is assigned.

some implementation considerations and the underlying tables for this accounting setup interface.Conclusion This document covered the main concepts of Accounting Setup Manager. White Paper Title Page 17 .

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