structure and the dimensions of your business. By carefully evaluating your business needs, you can design your chart of accounts to take advantage of General Ledger's flexible tools for recording and reporting your accounting information.
Oracle General Ledger uses two types of key flexfields for the chart of accounts; the Accounting Flexfield and the GL Ledger Flexfield. The Accounting Flexfield is the primary Accounting Flexfield and should be the only key flexfield used to define and update your chart of accounts. The GL Ledger Flexfield is a copy of the Accounting Flexfield with an added Ledger segment that is created by running the
Generate Ledger Flexfield Program.
You should never make changes to the GL Ledger Flexfield directly. Doing so can cause data corruption issues. This flexfield is used exclusively for certain General Ledger features, such as MassAllocations, Recurring Journals and FSG reports.
To set up your chart of accounts:
1. Define Value Sets: Value sets determine the attributes of your account segments such as the segment length, value alignment, and value security.
2. Define Your Account Structure Using the Accounting Flexfield: Indicate how many separate segments your account will have, and for each segment, enter a name, sequence number, and an associated value set.
Note: Number your segments starting with 1, then 2, 3, 4 and so on.
Secondary Tracking Segment:
Management Segment:
Optionally assign a management segment if you want to secure management values or perform management reporting. The management segment can be any segment, except the balancing segment or natural account segment. Typically, the management segment is a segment that has management responsibility, such as the department, cost center, or line of business. By designating a segment of your chart of accounts to be the management segment, you can secure access to the management segment values with data access sets.
Note: You can assign a management segment to an existing chart of accounts at any time by running two programs in sequence: Prepare Journal Batches for Management Segment Upgrade and Complete Management Segment Upgrade.
Intercompany Segment:
Optionally, assign the intercompany flexfield qualifier to one of the segments in your chart of accounts. You cannot use the primary balancing, cost center, or natural account as the intercompany segment.
Note: The intercompany segment should use the same value set as the balancing segment. If you intend to use Advanced Global Intercompany System for Intercompany Accounting you must define a separate segment for intercompany and assign a intercompany qualifier to that segment.
Use dependent account segments when you want a "context-sensitive" segment whose values have different meanings when you combine them with different values of another segment.
Warning: Plan your chart of accounts segments carefully. You cannot make changes to your segments or flexfield qualifiers later. Any changes made to any segment, such as adding one, removing one, changing the associated flexfield qualifier, or changing the associated value set will cause data corruption.
6. Define Cross-Validation Rules: to control the account combinations that can be created during data entry. For example, you may decide that your sales cost centers, 600 to 699, should only enter amounts to product sales accounts, 4000 to 4999. If you have dynamic insertion enabled, it is recommended that you also define cross-validation rules to provide additional security to prevent invalid combinations from being created during data entry.
Note: Cross-Validation rules only affect new account combinations that are created after you define or enable the rules. If you have existing combinations that violate your rules, your cross-validation rules will not be enforced. You will need to disable all existing combinations that violate your rules before your cross-validation rules can take effect.
7. Define or Enable Descriptive Flexfields: Use descriptive flexfields to tailor General Ledger to fit your unique information needs. For example, you may want to collect additional information on budget organizations, such as the manager and the size of the organization. You can even define context-sensitive flexfields that prompt you for additional information based on your previous entries.
1. Define Value Sets: Value sets determine the attributes of your account segments such as the segment length, value alignment, and value security.
2. Define Your Account Structure Using the Accounting Flexfield: Indicate how many separate segments your account will have, and for each segment, enter a name, sequence number, and an associated value set.
Note: Number your segments starting with 1, then 2, 3, 4 and so on.
Warning: Plan your account segment order carefully. Once you freeze your Accounting Flexfield account structure in the Key Flexfield Segments window and begin using account numbers in data entry, you should not modify the flexfield definition. Changing the existing flexfield structure after flexfield data has been created can cause serious data inconsistencies.
Modifying your existing structures may also adversely affect the behavior of cross-validation rules and shorthand aliases. Designate one of your segments as the natural account segment and another as the balancing segment: You can optionally designate a cost center segment, management segment, secondary tracking segment and/or intercompany segment.
If you are using Oracle Assets or Oracle Projects, you must specify a cost center segment.
Secondary Tracking Segment:
The optional Secondary Tracking Segment qualifier designates another segment in your chart of accounts in addition to your balancing segment to track Retained Earnings, Cumulative Translation Adjustment, and Unrealized Gains and Losses. This segment can be any segment, except the balancing segment, natural account segment, or intercompany segment. This segment can be the same as your cost center segment.
Management Segment:
Optionally assign a management segment if you want to secure management values or perform management reporting. The management segment can be any segment, except the balancing segment or natural account segment. Typically, the management segment is a segment that has management responsibility, such as the department, cost center, or line of business. By designating a segment of your chart of accounts to be the management segment, you can secure access to the management segment values with data access sets.
Note: You can assign a management segment to an existing chart of accounts at any time by running two programs in sequence: Prepare Journal Batches for Management Segment Upgrade and Complete Management Segment Upgrade.
Intercompany Segment:
Optionally, assign the intercompany flexfield qualifier to one of the segments in your chart of accounts. You cannot use the primary balancing, cost center, or natural account as the intercompany segment.
Note: The intercompany segment should use the same value set as the balancing segment. If you intend to use Advanced Global Intercompany System for Intercompany Accounting you must define a separate segment for intercompany and assign a intercompany qualifier to that segment.
Use dependent account segments when you want a "context-sensitive" segment whose values have different meanings when you combine them with different values of another segment.
Warning: Plan your chart of accounts segments carefully. You cannot make changes to your segments or flexfield qualifiers later. Any changes made to any segment, such as adding one, removing one, changing the associated flexfield qualifier, or changing the associated value set will cause data corruption.
3. Define Rollup Groups: Define rollup groups to create summary accounts whose summary balances you can review. You assign parent segment values to rollup groups.
4. Define Account Segment Values: If you plan on defining summary accounts or reporting hierarchies, you must define parent values as well as child or detail values.
You can set up hierarchy structures for your segment values. Define parent values that include child values. You can view a segment value's hierarchy structure as well as move the child ranges from one parent value to another.
5. Define Security Rules: Define Security Rules to restrict user access to certain account segment values.
4. Define Account Segment Values: If you plan on defining summary accounts or reporting hierarchies, you must define parent values as well as child or detail values.
You can set up hierarchy structures for your segment values. Define parent values that include child values. You can view a segment value's hierarchy structure as well as move the child ranges from one parent value to another.
5. Define Security Rules: Define Security Rules to restrict user access to certain account segment values.
6. Define Cross-Validation Rules: to control the account combinations that can be created during data entry. For example, you may decide that your sales cost centers, 600 to 699, should only enter amounts to product sales accounts, 4000 to 4999. If you have dynamic insertion enabled, it is recommended that you also define cross-validation rules to provide additional security to prevent invalid combinations from being created during data entry.
Note: Cross-Validation rules only affect new account combinations that are created after you define or enable the rules. If you have existing combinations that violate your rules, your cross-validation rules will not be enforced. You will need to disable all existing combinations that violate your rules before your cross-validation rules can take effect.
7. Define or Enable Descriptive Flexfields: Use descriptive flexfields to tailor General Ledger to fit your unique information needs. For example, you may want to collect additional information on budget organizations, such as the manager and the size of the organization. You can even define context-sensitive flexfields that prompt you for additional information based on your previous entries.
For example, if you classify the budget organization as a large organization, your descriptive flexfield could ask for the name and telephone number of the controller of the organization.
8. Define Account Shorthand Aliases: To speed entry of account segment values. If you enable shorthand alias flexfield entry when you define your account structure, then you can define aliases, or codes, which stand for complete or partial accounts.
9. Define Summary Accounts: to create and maintain summary balances for quick reporting and online inquiry of summarized balances.
10. Create Account Combinations: If you allow dynamic insertion, you can create new account combinations automatically as you use them during journal entry. If you do not allow dynamic insertion, define new account combinations manually in the GL Accounts window.
You can define new account combinations or disable existing account combinations at any time.
In the GL Accounts window, check the preserve check box to preserve account combinations against attribute updates when you run the Segment Value Inheritance program.
8. Define Account Shorthand Aliases: To speed entry of account segment values. If you enable shorthand alias flexfield entry when you define your account structure, then you can define aliases, or codes, which stand for complete or partial accounts.
9. Define Summary Accounts: to create and maintain summary balances for quick reporting and online inquiry of summarized balances.
10. Create Account Combinations: If you allow dynamic insertion, you can create new account combinations automatically as you use them during journal entry. If you do not allow dynamic insertion, define new account combinations manually in the GL Accounts window.
You can define new account combinations or disable existing account combinations at any time.
In the GL Accounts window, check the preserve check box to preserve account combinations against attribute updates when you run the Segment Value Inheritance program.
No comments:
Post a Comment