EDU3FB1Y

8/12/2019 EDU3FB1Y

1/12

Copyright 2007, Oracle. All rights reserved.

Accounting Setup Manager

R12 General Ledger Management Fundamentals

8/12/2019 EDU3FB1Y

2/12


Objectives

After completing this lesson, you should be able to do the

following:

Describe Accounting Setups

Ledger Processing Options

Secondary Ledgers

Describe Reporting Currencies

Describe Accounting Setup Considerations

Accounting Setups with One Legal Entity

Accounting Setups with Multiple Legal Entities

Accounting Setups with No Legal Entities

8/12/2019 EDU3FB1Y

3/12


Accounting Setups

An accounting setup is based on several factors, such as: legal environment

number of legal entities maintained in the same primary

ledger

business needs transaction processing needs

8/12/2019 EDU3FB1Y

4/12



Ledger

Attributes

U.S. East

Operations

U.S. West

Operations

U.K.

Operations

France

Operations

Chart of Accounts Corporate Corporate Corporate French Statutory

Accounting

Calendar/Period

Type

Monthly/Month Monthly/Month Monthly/Month Fiscal/Fiscal

Currency USD USD USD EUR

Subledger

AccountingMethod

Standard

Accrual

Standard

Accrual

Standard

Accrual

French GAAP

Ledger Options Enable Average

Balances

Enable Journal

Approval

No Average

Balances or

Journal Approval

enabled

No Average

Balances or

Journal Approval

enabled

No Average

Balances or

Journal Approval

enabled

This table is an example of ledger attributes for a global company

that has four legal entitiestwo in the U.S., one in the U.K., and one

in France.

8/12/2019 EDU3FB1Y

5/12


Secondary Ledgers

Additional ledgers called secondary ledgers can optionally beassigned to an accounting setup to maintain multiple

accounting representations for the same legal entity. For

example:

Subledger Level Secondary Ledgers

Journal Level Secondary Ledgers

Balance Level Secondary Ledgers

Adjustments Only Secondary Ledgers

8/12/2019 EDU3FB1Y

6/12


Reporting Currencies

If you only need a different currency representation of theprimary or secondary ledgers, assign reporting currencies to

them. For example:

Subledger Level Reporting Currency

Journal Level Reporting Currency Balance Level Reporting Currency

8/12/2019 EDU3FB1Y

7/12Copyright 2007, Oracle. All rights reserved.

Accounting Setup Considerations

Legal Entity Vision Credit

Group Legal

Entity

Vision Services &

Vision Consulting

Legal Entities

Vision Operations

Legal Entity

Number of Legal

Entities

One Multiple One

Primary Ledger Vision Credit Group Vision Services Vision Operations

Chart of Accounts Corporate Corporate Corporate

Calendar Monthly Monthly Monthly

Currency USD USD USD

8/12/2019 EDU3FB1Y



One Legal EntityAssign one legal

entity to an

accounting setup

type

Providedyour legal

entities meet

certain criteria.

8/12/2019 EDU3FB1Y



Multiple Legal

Entities

When an

accounting setup

has more than one

legal entity

Multiple

legal entitiescan share the

same primary

ledger

attributes.

8/12/2019 EDU3FB1Y



No Legal EntitiesAccounting setups

that have no legal

entities

assigned

Can be used

for multiplepurposes

according to

business

needs.

8/12/2019 EDU3FB1Y


Designing the Chart of Accounts

Feature Comparison by Accounting Setup

The number of legal entities assigned to an accounting setupaffects different key features available in the E-Business Suite.

Review the features in the following table to understand how

different features are affected.

Feature One Legal EntityAssigned

Multiple LegalEntities Assigned

No Legal EntitiesAssigned

Open/Close GL

Accounting Periods

Legal entities can

open/close periods at

different times.

All legal entities in a

ledger must open/

close periods at the

same time.

The standalone ledger

can open/close

periods independently.

Document Sequencing Legal entities canhave autonomous

document sequencing

rules.

All legal entities in aledger must share the

same document

sequencing rules.

The ledger can haveautonomous

document sequencing

rules.

Multiple Legal Entity

Journals

No Journal entries can

cross multiple legal

entities.

N/A

No legal entities exist.

8/12/2019 EDU3FB1Y

12/12Copyright 2007 Oracle All rights reserved

Summary

In this lesson, you should have learned how to:

Describe Accounting Setups


Secondary Ledgers

Describe Reporting Currencies

Describe Accounting Setup Considerations




Documents

EDU3FB1Y