You are on page 1of 5

Can the Accounting Flexfield Segment name be changed?

Nothing about a flexfield structure should be changed since this could s


eriously impact your existing data and cause inconsistencies
The LOV (list of values) prompt and window prompt that appear on the seg
ment form can be changed so the users can see the segment with a different name.
1. Navigate to Setup: Financial: Flexfield: key: segments
2. Query all
3. Unfreeze your flexfield
4. Open the segment summary screen
5. Choose the segment you wish to change
6. Change the LOV and window Prompts and insert the new name.
7. Save your work
8. Freeze the Flexfield which should launch a concurrent request.
9. Check the log and make sure the compile worked OK.
--------------------------------------------------------------------------------
----------------
How to add a new value to an existing segment?

On the Segment Values form, insert a new row with your new value.
Make sure the segment qualifiers are set correctly (Allow Posting and Bu
dgeting).
If this is the natural account segment, specify the Account Type also.
--------------------------------------------------------------------------------
----------------
How to delete a segment value?
There is no supported way to delete a segment value. Segment values can
only be disabled not deleted.
--------------------------------------------------------------------------------
----------------
What are all different Journal Entry Types available in GL?
Within Oracle General Ledger, you can work with the following types of j
ournal entries:
Manual Journal Entries: The basic journal entry type is used for most ac
counting transactions.
Examples include adjustments and reclassificatio
ns.
Reversing Journal Entries: Reversing journal entries are created by reve
rsing an existing journal entry.
You can reverse any journal entry and post it
to the current or any future open accounting period.
Recurring Journal Entries: Recurring journal entries are defined once, t
hen are repeated for each subsequent accounting period you generate.
You can use recurring journal entries to defi
ne automatic consolidating and eliminating entries.
Examples include intercompany debt, bad debt
expense, and periodic accruals.
MassAllocations: MassAllocations are journal entries that utilize a sing
le journal entry formula to allocate balances
across a group of cost centers, departments, divisions
or other segments. Examples include rent
expense allocated by headcount or administrative costs
allocated by machine labor hours
--------------------------------------------------------------------------------
----------------
What to Convert in GL: Balance or Transaction Detail
A key question which all consultants face while handling GL conversion i
s what to convert, whether to convert the prior period balances
or to convert the detailed transactions.
Typically most organisations while converting GL from a legacy system br
ing in only the balances data and very rarely do we bring
in the transactions details. The reasons for the same is as follows:
1. Usually there is a change in COA while moving from legacy GL to Oracl
e GL, hence the code combination would never be the same in legacy and Oracle.
2. Drill down from Oracle GL to Oracle sub-ledger is not possible as the
re is no linkage between sub-ledger data and GL data post conversion.
3. The legacy system is usually archived for a defined period of time du
e to audit and legal reasons.
This archived instance can be used for resolving historical audit and
reconciliation issues that may arise at a later point in time.
However, if we are upgrading from an older version of Oracle to a new
one, then it makes sense to bring in the transaction data
because drill down feature would be available and code combination wo
uld remain the same across both the versions.
But, here again, we need not bring in the transaction details for all
historical data but only for a small period range,
typically we convert transaction details from start of the year to th
e cut-over date and balance data for prior period-years.
--------------------------------------------------------------------------------
----------------
What is Revaluation in GL
Revaluation adjusts liability or asset accounts that may be materially u
nderstated or overstated at the end of a period due to a fluctuation
in the exchange rate between the time the transaction was entered and th
e end of the period.
Revaluation is performed only on Assets and Liabilities.
1. Revaluations are typically used to update foreign currency balances t
hat will be cleared or settled at future date to the current exchange rates.
An example of this is Accounts Payable. If you have an invoice that i
s over 60 days old, and the exchange rate has had a material change,
you will want to revalue this balance to the current exchange rate.
2. Revaluations on Fixed Assets is useful to accurately describe true va
lue of the goods after some period of time. This brings fair market value
of your fixed assets in current period.
Example:
On 01-Dec-2009
-Functional Currency is USD
-Foreign Currency is ABC
-Conversion Rate is 2.
-Created invoice for 100 ABC, validated and accounted. Not Paid.
Accounting..
EnteredAmount(ABC) Accounte
dAmount(USD)
ItemExpenseA/C---------Dr----100---------------------200
LiabilityA/C--------------Cr----100---------------------200
As per the above journal lines on 01-Dec-2009, customer is liable to pay
200 USD to the supplier.
-End of the period, conversion rate has been changed to 2.5.
-So customer's liability will get increased to 250 USD(100*2.5).
-So customer suppose to pay 250 USD instead of 200 USD to the supplier.
-This is the true liability at the end of the period and this need to be
reflected in customer's General Ledger. Loss 50 USD should be populated in Loss
account.
-Revaluation adjusts these amounts and keeps gain/loss amounts in Unreal
izedGain/Loss accounts defined in Revaluation window.
You can define and run revaluation as shown below
Navigation Path: General Ledger->Currency->Revaluation
It is two step process.
1. Define Revaluation(one time job)
2. Run CP 'Program - Revalue Balances'
--------------------------------------------------------------------------------
----------------
When the Rounding Account is used and when the Suspense Account is used?
A. During Journal Import of a foreign currency journal
1.If the currency conversion type in GL_INTERFACE is not provided, and t
he accounted amounts are provided,
then any imbalance in the accounted amounts will go to Suspense.
2.If the currency conversion type is provided in GL_INTERFACE for the f
oreign currency journal, and the currency conversion type
is User with a currency conversion rate of 1, then any imbalance in th
e accounted amounts will be posted to the Suspense account.
3.If the currency conversion type is provided for a foreign currency jou
rnal, and it is not User with a rate of 1, then and only
then will the imbalance go to the rounding account.
This is because when Journal Import and consequently Posting is presente
d with user-defined accounted amounts, GL has no way of knowing
the if the difference in the accounted amounts is due to suspense or rou
nding. Currently, we are assuming that the difference should go to suspense.
B. In the Enter Journals form:
If the user manually overrides the accounted amounts, the assumption
is that the difference in the accounted amounts is due to
suspense and not rounding, since the user explicitly chose to override t
he accounted amounts.If you manually change the accounting amount
the conversion_flag is set to 'N' in the created headers, therefore,
posting is rejecting the batch instead of balancing it by adding
the rounding difference to a journal lines.
--------------------------------------------------------------------------------
----------------
What is Financial Statement Generator Reports (FSG)?
Oracle General Ledger s Fiancial Statement Generator (FSG) is a powerful a
nd flexible tool you can use to build your own custom reports without programmin
g.
You can define custom financial reports, such as income statements and b
alance sheets, online with complete control over the rows,
columns, and content of your report. You can control account assignments
, headings, descriptions, format, and calculations in
addition to the actual content. The reusable report components make buil
ding reports quick and easy. You can copy a report
component from one report, make minor edits, then apply the report compo
nent to a new report without having to create a new report from scratch.
--------------------------------------------------------------------------------
----------------
Using Secondary Ledgers for Consolidated Reporting
Use secondary ledgers for consolidated reporting to prevent the need to
perform balance transfer consolidations, and to obtain a
cross-company view of your enterprise. For example, assume the two accou
nting setups described in the following picture defined for
the company's legal entities. The France legal entity uses a primary led
ger for corporate accounting purposes and a secondary ledger for
statutory reporting purposes. Both ledgers use different charts of accou
nts and accounting calendars. The US subsidiary uses its own chart of accounts
and currency to account for its transactions in its main record-keeping
ledger, the primary ledger.
For ease of consolidation, the US subsidiary can assign a secondary ledg
er to its primary ledger. The secondary ledger should
use the same chart of accounts, accounting calendar, and currency as the
parent entity, France. Then, by using a ledger set to
group the secondary ledger of the US subsidiary with the primary ledger
of the parent entity, consolidated results can be obtained
by simply running an FSG report using the ledger set. This prevents the
need to perform balance transfer consolidations every period.

Primary Ledger Vs Secondary Ledger Vs Reporting Currency


Primary Ledger Vs Secondary Ledger
Use secondary ledgers for supplementary purposes, such as consolidation,
statutory reporting, or adjustments for one or more
legal entities within the same accounting setup. For example, use a prim
ary ledger for corporate accounting purposes that use the
corporate chart of accounts and subledger accounting method, and use a s
econdary ledger for statutory reporting purposes that use the
statutory chart of accounts and subledger accounting method.
This allows you to maintain both a corporate and statutory representatio
n of the same legal entity's transactions in parallel.
Reporting Currency Vs Secondary Ledger
Reporting Currencies are not the same as secondary ledgers. Looking at t
he 4 C's that define a ledger, we have a chart of accounts,
calendar, accounting method, and currency. If you only need multiple cur
rencies to support your reporting requirements,
use reporting currencies. If you need to account for your data using dif
ferent calendars, charts of accounts, accounting methods
in addition to currency, use a secondary ledger.