Defining Your Account Structure

Follow these guidelines, in addition to generic flexfield definition instructions, when defining your Accounting Flexfield structure.

Note: The Accounting Flexfield has several special requirements and limitations for its definition. Follow these recommendations carefully, since an incorrectly-defined Accounting Flexfield will adversely affect your chart of accounts, and application features such as Mass Allocations.

To define your account structure:

  1. Define your Accounting Flexfield value sets using the Define Value Set form. General Ledger does not support the use of predefined value sets with the Accounting Flexfield.

  2. Enable the Allow Dynamic Inserts option for each chart of accounts until you have created an accounting setup using Accounting Setup Manager and assigned a data access set to the GL: Data Access Set profile option. Keep this option enabled if you want to allow the automatic creation of new accounts as you enter them in transactions. If you disable this option, you must define all accounts manually in the GL Accounts window before entering transactions.

    Suggestion: Enable Dynamic Insertion for new charts of accounts to allow you to perform your setup, such as assigning a retained earnings account to your ledger in Accounting Setup Manager. After you have completed your accounting setup and have assigned a data access set to the GL: Data Access Set profile option, you can disable Dynamic Insertion for the chart of accounts for transaction processing purposes.

    Attention: If you are defining an Accounting Flexfield for Oracle Projects, you must define your segments with the Allow Dynamic Inserts option set to Yes. Refer to the Oracle Projects User's Guide for further suggestions on using the Accounting Flexfield with Oracle Projects.

  3. Define your Accounting Flexfield segments. You can define up to 30 segments for your account structure. You must define at least two segments for your account structure, one for the balancing segment and one for the natural account segment (the two required flexfield qualifiers).

  4. Define your flexfield qualifiers for your Accounting Flexfield. Oracle Applications use flexfield qualifiers to identify certain segments in your Accounting Flexfield. You specify your flexfield qualifier values in the Qualifiers region of the Define Key Flexfield Segments form.

  5. Define the natural account segment. A natural account segment contains values representing account types, such as cash, accounts receivable, product revenue and salary expense. In the Flexfield Qualifiers window, select the Enabled check box for the Natural Account Segment to indicate that the segment you are defining is your natural account segment. You can define only one natural account segment in your account.

  6. Define the primary balancing segment. General Ledger uses your primary balancing segment to ensure that all journals balance for each value of your primary balancing segment. General Ledger also uses your primary balancing segment to ensure that entries that impact more than one balancing segment use the appropriate intercompany or intracompany balancing.

    Indicate whether the segment you are defining is a primary balancing segment. You can define only one primary balancing segment for an account. The segment you use as a primary balancing segment must be an independent segment (it cannot use a dependent value set). Most users of General Ledger designate company/legal entity or fund as their primary balancing segment. If using multiple charts of accounts, you should share the same balancing segment across all charts of accounts.

  7. Define the Cost Center segment. Cost centers indicate functional areas of your organization, such as Accounting, Facilities, Shipping, and so on. In the Flexfield Qualifiers window, select the Enabled check box to indicate that the segment you are defining is a Cost Center segment.

    Oracle Assets and Oracle Projects require you to qualify a segment as cost center in your account.

  8. (Optional) Define a management segment if you want to perform management reporting and secure read and write access to segment values for the management segment. This segment can be any segment, except the balancing segment, natural account segment, or intercompany segment.

  9. Identify a secondary tracking segment in your chart of accounts and assign the Secondary Tracking Segment qualifier to it. General Ledger tracks retained earnings, cumulative translation adjustments, and revaluation gains/losses by both the balancing segment and the secondary tracking segment to provide you with more accounting detail. The secondary tracking segment cannot be the same segment as the balancing segment, intercompany segment, or natural account segment. See: Secondary Tracking Segment.

  10. (Optional) Define the intercompany segment. General Ledger automatically uses the intercompany segment in account code combinations to track intercompany transactions within a single ledger and among multiple ledgers. The intercompany segment has the same value set as the balancing segment.

  11. Define dependent segments to create context-sensitive segments. Context-sensitive segment values can have one meaning when combined with a particular independent segment value, and have a different meaning when combined with a different segment value.

    You can define more than one dependent segment for an independent segment. You can also define more than one independent segment to have different dependent segments. You cannot, however, define a dependent segment for any segment with validation type other than Independent nor have multiple levels of dependency for the same segment.

  12. Define your Accounting Flexfield segment values. When specifying a parent value, be sure to mark the Parent check box and enter the rollup group level information and hierarchy details. Be sure you do not assign overlapping ranges of child values to the same parent value. For multi-level hierarchies, be sure that grandparents do not share the same child ranges as their lower level parent values. This causes looping and will affect your summary accounts.

    You use rollup groups to create summary accounts. Decide your segment hierarchy before you create parent and child segment values.

  13. Enter Segment Qualifiers. Segment qualifiers hold extra information about individual segments such as if the account is an asset, liability, or expense, if you can post to the account, and more.

  14. Freeze and compile your account structure in the Key Flexfield Segments form when you are ready to begin using it. You must recompile your flexfield every time you make changes to your structure and segments, including enabling or disabling cross-validation rules and enabling or disabling shorthand entries using the Shorthand Aliases window.

    You will see your flexfield changes immediately after you freeze and recompile your flexfield. Other users will see the changes after they change responsibilities or exit the application and log back in.

    Warning: Plan your key flexfield structures carefully. Once you freeze your structure and begin using it, you should not modify your structure. Attempting to do so may create data inconsistencies that can seriously impact your application or require a complex conversion program.

  15. After you freeze and compile your Accounting Flexfield, you should submit the Generate Ledger Flexfield program from the Requests window. This program dynamically creates the GL Ledger Flexfield. This flexfield is a copy of the Accounting Flexfield with an added Ledger segment. This flexfield is used exclusively by General Ledger features, such as MassAllocations, Recurring Journals and FSG reports that use the Ledger segment.

    Warning: You should never use the GL Ledger Flexfield to modify your chart of accounts structure or segment values. You should only use the Accounting Flexfield.

    Note: If one or more segments in your Accounting Flexfield use table validated value sets, you must run the following programs after you freeze and compile your Accounting Flexfield:

    • Setup Flattening Program for Table Validated Value Sets: This program needs to be submitted for each table-validated value set in your Accounting Flexfield.

    • Generate Ledger Flexfield: This program needs to be submitted once for each Accounting Flexfield.

  16. Define cross-validation rules to control the combinations of values you use to create accounts. Refer to the Designing Your Cross-Validation Rules essay for suggestions on designing your Accounting Flexfield cross-validation rules.

  17. Define Flexfield security rules for a responsibility to restrict access to specific segment values or ranges of segment values. Security rules can be applied to hierarchies. Security rules defined for a parent in a hierarchy can extend to all its children.

    Security rules restrict access to specific segment values or ranges of segment values:

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