Define a Chart of Accounts Mapping

What is Chart of Account Mapping?

Define a chart of accounts mapping to map two or more charts of accounts. The chart of accounts mapping is used by Accounting Setup Manager to complete the setup steps for secondary ledgers, and it is used by the Global Consolidation System (GCS) to consolidate data between ledgers. Chart of accounts mapping provide instructions for mapping accounts or entire account segments from one chart of accounts to another for consolidation purposes and secondary ledgers.

For consolidations using the Global Consolidation System, the chart of accounts mapping enables to transfer consolidation data from subsidiary ledger to parent ledger. For secondary ledgers that use a different chart of accounts from their associated primary ledgers, the chart of accounts mapping enables to transfer journals and balances from the primary ledger to the secondary ledger. A chart of accounts mapping is required for all secondary ledgers that use a different chart of accounts from the primary ledger.


Why we need Chart of Account Mapping?

If the primary and secondary ledgers use different charts of accounts, the chart of accounts mapping is required to instruct the system how to propagate journals from the main transactional chart of accounts to the target chart of accounts. If the primary and secondary ledgers use different accounting calendars, the accounting date is used to determine the corresponding non adjusting period in the secondary ledger. The date mapping table also provides the correlation between dates and non-adjusting periods for each accounting calendar.

Chart of Account mapping option helps to correlate source chart of account to target chart of account for creating journal entries. One can also define account rules as a part of chart of account mapping which further helps to map complete account combinations in multiple chart of accounts. If the primary ledger and secondary ledger use different ledger currencies, currency conversion rules are required to instruct the system on how to convert the transactions, journals, or balances from the source representation to the secondary ledger.