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Step 4
General Ledger
Part 1
Mohammed Raouf
Part 1
Part 2
Ledger
and
Legal
Entity
Setups
Setup | Financials | Accounting Setup Manager | Accounting Setups | Legal Entity tab | Create Legal Entity
Setting Up Ledgers
Under the Accounting Setups tab, Ledgers are defined. Each Ledger will have Legal Entities, Journal Processing setups,
Reporting currencies, Balancing Segment Assignments, Subledger Accounting Options, Operating Units, and
Intercompany and Intracompany accounts and rules, as well as Sequencing setups. If any of the data in each of these
areas is different for a legal entity, a new, secondary Ledger can be set up to accommodate the differences.
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Defined in step 1+2, here you choose them
The
common
seeded is
Standard
Accrual
where the
owner is
Oracle,
Customized
SLA will be
explained
in detail
later.
Lets Create
Accounting
Options
1
2
3
4
5
6
7
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1
Add the NUMBER suitable for
your organization. A future
period not for entering of
journal entries, but also the
generation of Reversing,
Recurring, and Mass
Allocation Journals, or
future-dated invoices in
Payables (such as a recurring
invoice generated for the
next period). But Future
periods will not allow these
transactions to be posted to
the General Ledger.
To account for the invoices in both
the Project costing and billing
module and when payables invoice is
paid as opposed to when it was
entered; this should be selected
along with a cash basis SUBLEDGER
ACCOUNTING METHOD. Selecting
this will create debits to expense and
credits to cash, and not generate an
Accounts Payable liability account
transaction.
Next Page
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Net Closing
Balance
R12.1.2
and
Higher
A. Let the open new period close down all the income statement accounts and put the results in the retained
earnings in the same way it has always done. This also rolls the balance sheet accounts into the first period of the
new year like it does any other period.
B. Create a journal showing the movement of the income statement accounts into retained earnings or an account
of your choice. You can also create a journal for the balance sheet accounts showing what will be used as opening
balances next year. This is to fulfill a legal requirement in some countries specially France.
If you choose B then the option in the 'Net Closing Balance Journal' choice in the Accounting Setup Manager comes
into effect. This will close the balances either as a net figure to the closing journal (when ticked) or as Cr and Dr
figure to the closing journal (by default).
Functionality before this fix - closes the account by posting the debit sum in the credit and vice versa.
The Net closing flag was introduced to allow users to choose between closing balances by journalling out both the
Dr and the Cr balance or just the net balance on a code combination [ Retained Earnings ]. Detailed Later
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If Currency Translations
are to be performed,
select a DEFAULT PERIOD
END RATE TYPE and the
DEFAULT PERIOD
AVERAGE RATE TYPE.
Enter the CUMULATIVE
TRANSLATION
ADJUSTMENT ACCOUNT
where EBS will record the
cumulative adjustment
for translations. Once this
account is used in a
translation, it cannot be
updated.
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Turns on budgetary
controls, this setting is
used most often in
Government agencies,
where the expenses are
fixed for a given year
based on the approved
budget and cannot be
exceeded.
The account where any
out-of-balance
encumbrance
transactions will be
posted. The company
segment of this account
will be overridden to
the balancing segment
on the out-of-balance
transaction.
Assign to capture your
net income on the
average balances.
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Reporting Currencies
Reporting currencies are additional currency representations of primary or secondary ledgers. Unlike secondary
ledgers, reporting currencies can only differ by currency from their source ledger and must share the same chart of
accounts, accounting calendar/period type combination, subledger accounting method, if used, and ledger
processing options. Reporting currencies can be used for supplementary reporting purposes, such as consolidation
or management reporting. They can also be used if you operate in countries with highly inflationary economies.
OR
After you finish your Ledger Options
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Balance Level: [primary and secondary ledgers] Using translation to convert the balances from
the ledger currency to the reporting currency, track your balances in more than one currency for
the balances only.
Detail / Journal Level: [primary and secondary ledgers] Each time you post a journal entry in the
associated primary or secondary
ledger, another journal is created and posted to the Journal level reporting currency within the
same journal batch.
Subledger Level: [primary ledgers only] creates the foreign currency transactions when the
subledger accounting is performed, They maintain a currency representation of the subledger
journals, journal entries, and balances.
EBS will use the rates defined under these types to complete the conversions.
Using this feature requires that the Rate Type selected is maintained at all times.
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