The following table describes the steps to create accounting setups using Accounting Setup Manager. Each required setup step must be completed before you can complete your accounting setup.
Accounting Setup Manager Checklist
| Step Number | Required | Step |
|---|---|---|
| Step 1 | Optional | Define Legal Entities If you plan to record accounting transactions for one or more legal entities, you can use the Legal Entities tab in Accounting Setup Manager or Oracle Legal Entity Configurator to define your legal entities. Note: If you plan to use jurisdictions that do not come seeded, you can define your own jurisdictions using Legal Entity Configurator before you define legal entities. A jurisdiction is the intersection of the physical territory and type of legislation within which judicial authority may be exercised. The jurisdiction is used to assign a territory to a legal entity. |
| Step 2 | Required | Create Accounting Setup Structure
Repeat this step for each accounting setup. Additional Information: Creating Accounting Setup Structures |
| Step 3 | Required | Complete ledger options. Define and update journal and transaction processing options for the ledger. If a secondary ledger is assigned, complete the ledger options for the primary ledger before completing the ledger options for the secondary ledger. Repeat this step for all ledgers in an accounting setup. Additional Information: Ledger Options |
| Step 4 | Conditionally Required | Complete reporting currencies. If reporting currencies are assigned to the accounting setup when creating the accounting setup structure, it is required to complete the currency conversion options for each reporting currency. Assign reporting currencies to the primary or secondary ledger at any time. Repeat this step for each reporting currency assigned. Additional Information: Reporting Currencies |
| Step 5 | Optional | Assign balancing segment values to legal entities. If you did not assign balancing segment values to legal entities when you created them, you can assign them now. It is strongly recommended that you assign specific balancing segment values to each legal entity to help identify legal entities during transaction processing and reporting. Note: See Balancing Segment Value Assignments |
| Step 6 | Optional | Assign balancing segment values to ledger. If you assigned balancing segment values to legal entities and want to reserve one or more balancing segment values for adjustments or nonlegal entity related transactions, assign specific balancing segment values to the ledger. For the accounting setup with no legal entity assigned, assign balancing segment values to the ledger to indicate which values are to be used for journal processing in the ledger. If balancing segment values are not assigned to the ledger, then all values will be available. Repeat this step for each ledger. Additional Information: Ledger Balancing Segment Value Assignments |
| Step 7 | Conditionally Required | Define Subledger Accounting options. If a Subledger Accounting Method is assigned to the ledger, complete the Subledger Accounting options to provide instructions on how to create the accounting from Oracle financial subledgers or external systems to one or more ledgers in General Ledger. Repeat this step for each ledger that has a subledger accounting method assigned. Additional Information: Subledger Accounting Options |
| Step 8 | Optional | Define operating units. If using an accounting setup that has legal entities assigned, define operating units for your primary ledger.
Additional Information: Operating Units |
| Step 9 | Optional | Define intercompany accounts. If the accounting setup has legal entities with specific balancing segment values assigned, define intercompany accounts. Intercompany accounts account for intercompany transactions between legal entities. Additional Information: Intercompany Accounts |
| Step 10 | Conditionally Required | Define intracompany balancing rules. If the Intracompany Balancing option for the ledger is enabled, define Intracompany Balancing rules to provide instructions on how to balance journal entries between balancing segment values for the same legal entity or ledger. Repeat this step for each ledger that has this option enabled. Additional Information: Intracompany Balancing Rules |
| Step 11 | Optional | Define Sequencing. Define accounting and reporting sequencing options for ledgers and reporting currencies. Repeat this step for each ledger.
Additional Information: Defining Sequences |
| Step 12 | Conditionally Required | Complete primary to secondary ledger mapping. If using secondary ledgers, specify how to convert subledger journals, General Ledger journals, or balances from the primary ledger to the secondary ledger. For example, if the secondary ledger uses a different chart of accounts and currency from the primary ledger, assign a chart of accounts mapping and currency conversion rules. Perform this step once for each secondary ledger that is assigned to an accounting setup. Additional Information: Primary to Secondary Ledger Mapping |
| Step 13 | Required | Complete the Accounting Setup After all required setup steps for both the primary and secondary ledgers of an accounting setup are completed, complete the accounting setup by clicking Complete on the Accounting Options page. This button is enabled after all required setup steps have a Complete status. Review the successful completion of the General Ledger Accounting Setup Program in the Concurrent Manager before proceeding. Perform this step once for each accounting setup. Additional Information: Completing Accounting Setup |
| Step 14 | Optional | Perform additional General Ledger setup steps. Take advantage of additional General Ledger features, such as ledger sets and data access sets, to improve processing efficiency and add additional security to secure access to ledgers.
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| Step 15 | Required | Assign profile options to responsibilities. To control access to ledgers used by General Ledger users, assign a data access set to the profile option GL: Data Access Set for each General Ledger responsibility. If using subledgers, you should also set the SLA: Enable Data Access Security in Subledgers profile option to control the generation of accounting entries for subledger transactions. This profile option determines whether the General Ledger Data Access Set security mechanism is applied for a subledger application responsibility when viewing, reporting, or creating subledger journal entries associated with a given ledger. The General Ledger Data Access Set security mechanism is always applied for responsibilities associated with the General Ledger application. The profile option enables you to combine data access security with subledger transaction security and therefore control access to subledger journal entries depending on the ledger to which they belong. For example, you can implement a Multiple Organizations Security Profile that allows you to create Oracle Receivables invoices for two different operating units, each associated with different ledgers, but restrict drill-down from the subledger transaction to the associated subledger journal entry based upon the destination ledger contained in the Access Set. If you skip this step, you cannot control access to ledgers and process data optimally in Oracle subledgers and General Ledger. |