Oracle - GL COA - Setup and Maintainance

8/17/2019 Oracle - GL COA - Setup and Maintainance

1/27

General LedgerSetup Maintenance

Chart Of Accounts

Step by step uide

ohammed Raouf

Step


2/27

2

Chart of Accounts [ Accounting Flexfield ]

o Setting Up the Accounting Flexfield

o Adding Segments to the Accounting Flexfield

o Creating a Value Set for the Accounting Flexfield

o Adding Information on the Segmentso Adding and Maintaining Values for Your Accounting

Segments

o Viewing and Maintaining Account Hierarchies for

Parent/Child Relationships

o Account Maintenanceo Custom Segments for Tracking Additional Data (DFF)


3/27

3

Setups and the decisions surrounding any ERP or accounting system are critical not only to the

success of the project, but also to the usability of the system.

EBS is no exception. Taking the time to understand the setups and what they affect is time well spent

not only during an implementation or upgrade, but also for any person trying to understand, is there

a better way to use the system?

As stated already, ERP implementations are not projects with beginnings and endings, but a journey

that continues throughout the ever-changing landscape we call business.

Setup steps are broken down into two types: Required to use EBS and Optional, which means that

they only need to be performed to use that specific functionality. The Required setups include,

in this order:1. Configure the Accounting Flexfield.

2. Configure the Accounting Calendar.

3. Configure the Accounting Setups (required fields of Legal Entity and Ledgers only).

4. Assign the Ledger profile and other required Profiles in System Administration.

5. Assign Data Access Sets, even if it is blanket access for everyone.

6. Open the first period.

All other setups are optional, depending on your specific business needs.

You should know that …


4/27

4

Business Structure ..

Assuming that KSA &

UAE have the same

Tax reporting

Two Ledgers To represent

two Currencies as well as

differences in the SLA

Two Operating Units

allow for segregation

of the data in theSubledgers

The two companies [ Balancing

Segment Values BSV ] in Cairo

Operations will create two

complete Balance Sheets

Ledgers, Charts of Accounts, and Operating Units are difficult, are costly, and carry a high degree of risk to change.

Taking the time to create them with foresight into future business needs and growth will decrease your ERP cost in

future years.


5/27


6/27

6

Chart of ccounts

[ ccounting Flexfield ]


7/27

7

Setting up the Accounting Flexfield

The Accounting Flexfield is the basis for your Chart of Accounts, and how transactions can be accounted in the

system. When deciding the structure of your Chart of Accounts, be sure to allow room for growth [ Spare Segment ],

as it cannot be changed with any standard EBS functionality once it is defined.

Find your

Application GL , and

your title is Acc FF

It’s preferred to name

the Code as the Title,

it makes trouble

shooting and customreports easier

Click SEGMENTS to

create each segment

Ensure you do not select the GL Ledger Flexfield by mistake—this is a copy of the Accounting Flexfield that is

updated when the Flexfield is compiled and the program [ Program – General Ledger Flexfield ] runs. EBS does this

automatically when changes are saved. Changes should never be manually added to the GL Ledger Flexfield. The GL

Ledger Flexfield was added in R12 to improve processing times for some of the more intensive processes, like FSG

and Mass Allocations.

[N] Setup | Financials | Flexfields | Key | Segments

Use it after Defining

your Summary

accounts [ LATER ]

Use it after Finishing your

Accounting FF and the

COMPILE button will appear

Allow you to use the Cross-Validation

Rules feature in EBS, and you should

always use them when ALLOW

DYNAMIC INSERTS is checked


8/27

8

Adding Segments to the Accounting Flexfield

NAME is the name of the segment, while PROMPT is what appears on data entry screens. Making the NAME and

PROMPT consistent will help eliminate confusion when creating custom reports. You can identify up to 30

segments in your Accounting Flexfield, make it as detailed as required to track required data in the general ledger

COA consists of the different segments that make up your account combination. Some of these segments, such as

a segment for [Product ], have no significance in how the system behaves other than to store transactional dataseparated by Product. Other segments, such as the Balancing Segment, greatly impact how the system works,

because all debits and credits associated with any value in the Balancing Segment must net to zero. EBS requires

that a Balancing Segment and a Natural Account be assigned to every chart of accounts. A Cost Center, used to

track departmental expenses, is only required when Oracle Assets is implemented. Optionally, Intercompany,

Management, and Secondary Tracking segments, as well as other segments your business may require, can be

added to make up the entire Accounting Flexfield.

You must define the Value Set for eachsegment so you can choose them from

the LOV [ In the Next page ]

1

2


9/27

9

Creating a Value Set for the Accounting Flexfield

Click USAGES to see where Value Sets are

used as far as Concurrent Program

Parameters, Descriptive Flexfield Segments,

or Key Flexfield Segments. This is useful

information for determining where Value Sets

are used, both seeded and custom sets. always be LIST OF

VALUES, meaning

that the user must

enter a value that is

set up and active in

this value set.

A VALUE SET needs to be set up for each segment in your account; it

becomes the location where the valid values are stored for use.

NO SECURITY will not

add any security

when creating

combinations in your

accounting Flexfields.

NON-HIERARCHICAL

SECURITY will allow

Security rules to beset up, which will

restrict the values

users can have access

to for entry and

inquiry.

HIERARCHICAL

SECURITY works the

same as Non-

Hierarchical, except

the rules are assigned

at the parent level

and cascade down to

the child

Often set to CHAR,

where numbers are

used for data entryaccounts, and Alpha

characters can be

used for parent

accounts.

The number of characters in the segment

Usually no MINIMUM VALUES or MAXIMUM VALUES are

assigned for Accounting segments

VALIDATION TYPE for an accounting Flexfield can only be DEPENDENT, INDEPENDENT,

or TABLE VALIDATION (the other options are not valid for the accounting Flexfield’s

value sets). INDEPENDENT will validate against the predefined values but has no

restriction on their use. DEPENDENT means that the value of this segment is

dependent on the value in another segment; it offers similar validations as Cross-

Validation Rules (CVRs). Whereas CVRs state that all values are available in every

segment, but combinations can only be created where a rule is not violated,

DEPENDENT validation creates a subset of values that are valid for the previous

segment. As a rule, CVRs are easier to maintain than DEPENDENT validation


10/27

10

TABLE VALIDATION will require the value set to be validated against data in a specific table, and requires

SQL to be added on the Edit Information form, which will tell EBS how and where to validate the data.

This is commonly used with the accounting Flexfield value sets when the data must be validated against a

custom table that houses the accounts from a nonrelated system.

Click EDIT INFORMATION to select the segment you want to make this segment DEPENDENT on.Close the Edit Information and Value Set form to get back to the Segments Summary form to set up the

Flexfield Qualifiers.


11/27

11

Adding Information on the Segments

The Accounting Flexfield has three qualifiers that are required: Cost Center when Assets is implemented, NaturalAccount, and Balancing Segment. Optionally, an Intercompany segment can be defined for tracking intercompany

balances. Management segments are used to identify combinations as part of a specific management segment for

reporting, and a Secondary Tracking segment is used with revaluations, translations, and year-end processing to more

uniquely identify

these transactions.

They cannot be changed once the accounting Flexfield is used.


12/27

12

Segment Qualifier Description

Balancing Segment

(Required)

All transactions within a Balancing Segment value must balance for Debits and

Credits. Use a Balancing Segment value for each entity you want to obtain a Balance

Sheet and Income Statement for. If only an Income statement is required, then it is

not necessary to set up a balancing segment value for that entity.

Cost Center (Required

when Assets is implemented)

Used to classify Departmental or Cost Center transactions for segregated Income

Statements or Management Reports.

Natural Account (Required) This is the core segment of your accounting Flexfield and is used to classify eachtransaction into accounts such as Revenue from Sales. The Natural Account segment

determines if an account combination is classified as an Asset, Liability, Owners

Equity, Income, or Expense, and these classifications are used as part of the year-end

process to determine which accounts roll into retained earnings, and which carry abalance forward into the next year.

Management (Optional) Primarily used to restrict access, both Read and Write, with a Data Access Set. TheManagement segment will allow only specific data within a balancing segment to be

viewed or updated by a group of users. The Management segment qualifier can be

assigned to any segment of the account, except the

Balancing segment and the Natural Account.

Intercompany (Optional) This segment can help with intercompany and intracompany balancing by tracking allintercompany transactions in this segment.

Secondary Tracking (Optional) Utilized by Revaluation, Transaction Gains/Losses, fiscal Close Journals to recordcumulative translation adjustments, unrealized gains and losses, and fiscal close

entries to retained earnings into a unique account combinations of balancing

segment and secondary tracking segment.


13/27

13

To add additional info

INDEXED will default

to checked, ensuring

that this segment is

picked up with the

Program – Optimizer

concurrent request

and indexed for

faster transaction

processing and

reporting. The

Optimizer programwill gather statistics

and create indexes

for your Accounting

Flexfield, making

reports and such

processes as

interfaces run faster.

NAME,

DESCRIPTION,

COLUMN, and

NUMBER will

default from the

previous setup

and cannot be

changed on this

form.

Adding a DEFAULT

TYPE and a DEFAULT

VALUE will cause all

Accounting Flexfield

forms to default

the DEFAULT VALUE

in so that users do

not have to key the

data (but they can

change it). This

default can be

removed later

when the segment

is used. PROMPTS are what the userswill see in both the LIST OF VALUES

and WINDOW in EBS.

SECURITY ENABLED will determine if

this segment will use Security Rules.

Security Rules can restrict the values a

specific responsibility has access to.

The DISPLAY SIZE will default from the value set, whereas the

DESCRIPTION SIZE will determine how much of the value’s

description will appear on the forms and can be modified.

CONCATENATED DESCRIPTION SIZE is used on reports when this

segment is concatenated with the other segments, allowing a smaller

portion of each segment’s description to appear on the report—this

is really for space saving on the report, especially ones that are not

written in XML using Oracle’s BI Publisher.


14/27

14

Adding and Maintaining Values for your Accounting Segments

Once the Flexfield structure is set up, values will need to be created prior to using them in a combination. When

assigning values to each segment, ensure you leave room for future growth as follows:

100000 Cash – Parent Account

100105 Operating Account

100110 Petty Cash100115 Payroll

100000 Cash – Parent Account

100001 Operating Account

100002 Petty Cash100003 Payroll

You have 2 steps to start adding values :

1) Querying up the Accounting Flexfield 2) Add values to each segment in your structure

Company - Department - Account

Setup | Financial | Flexfields | Key | Values


15/27


16/27

16

Accounting Segment Values


17/27

17

Viewing and Maintaining Account Hierarchies for Parent/Child Relationships

Parent/child relationships can greatly reduce some of the maintenance involved in such EBS features as FSGs and

MassAllocations, but the logic of the relationships must be established and the accuracy maintained.

When you

define the

parent

value this

2 buttons

appear

Allows you to add an account or a

range of accounts to a parent. Both

Parent and Child accounts can bemade a child of other accounts. After

selecting the To and From accounts,

select either PARENT VALUES ONLY or

CHILD VALUES ONLY under the

INCLUDE field.

available for any child and allows a

range to be moved from one parentto another. These features work well

when you just need to look up a

specific account’s children or move a

range, but they can be cumbersome

and confusing and do not show a

complete picture of the account

hierarchy – It’s preferred to use the

Account Hierarchy Manager .

To move up and down the tree of the

hierarchy for this parent, starting at

the top, which is the parent itself,with other parents assigned to it, and

through each of these assigned

parents, showing their assignments

(both parent and child accounts).


18/27

18

VIEW HIERARCHIES

MOVE CHILD VALUES

DEFINE CHILD VALUES


19/27

19

Using the Account Hierarchy Manager

Selecting Yes prevents other users from making changes to the hierarchy

while your changes are being made. If this message does not appear, the

profile - GL AHM: Allow Users to Modify Hierarchy is set to No for your access.

Highlight the CHART OF ACCOUNT and

SEGMENT you want to see the hierarchy for.

1

2

3

Setup | Accounts | Manager Setup | Financials | Flexfields | Key | Rules


20/27

20

To modify an existing value,

right-click the value andselect View Attributes.

DESCRIPTION, EFFECTIVE

DATES, BUDGETING

ALLOWED, and POSTING

ALLOWED fields can all be

updated. Once any updates

or additions are completed to

the hierarchies and accounts,

use the yellow diskette icon

to save any changes made in

the hierarchy manager prior

to closing. You can change

existing Hierarchies by

REMOVING an account or by

modifying the rangeassociated with a parent;

these ranges can be deleted

or modified, or else you can

create a new range.

Add a ChildAdd a Parent

Export to Excel

View the

Hierarchy

tree

The arrows at the bottom of the screen allow you to scroll through all

of the values set up in your Chart of Accounts.


21/27

21

Account Maintenance

To accommodate changing that business needs Accounts will be disabled over time, sometimes requiring

balances to be moved from one combination to another, and rules set up and maintained. EBS offers a feature to

move not only balances, but the actual journal entries themselves, preventing the double account research when

performing reconciliations and analysis.

From To

Select the REQUEST TYPE of MOVE/MERGE

to move journals and

merge account

transactions and

balances. Add a

REQUEST NAME and

DESCRIPTION, and

select the LEDGER this

request pertains to. The

SOURCE is the account

you are moving the

transactions from, and

the TARGET is where

they are moving to.

PREVALIDATE to see a

report of all thetransactions that will

move. Once you have

validated that data,

requery the REQUEST

and select SUBMIT. This

will start a concurrent

process that will move

the transactions and

reflect the new account.

Can be used to

reverse any REQUEST

that has been

SUBMITTED in error

and therefore reverse

the move of the

transactions.

will take you to the screen

where segments arecreated and maintained.

Setup | Other | Mass Maintenance

Mass Creation feature to

create new accounts

automatically based on

existing accounts. For

example, if you add a

new cost center to your

organization you can use

mass creation to create

all the accounts youneed based upon one of

your other cost centers.

Replaced by SUBMIT

button on R12.1.3


22/27

22

Program – Inherit Segment Value Attributes

[Updates account combinations to have the same

attributes as the segment values. This includes enddates, enabled status, and posting status.

Account Combination Maintenance Although Dynamic Insertion allows EBS to create account combinations automatically, you may still need to do some

maintenance in the combinations screen. Adding an alternative account for processing subledger transactions for a

disabled account is one example.

Adding a TO

date is the

recommendedway to disable

an account

combination

NOT unckeck

the ENABLED

check box.

The ALTERNATE ACCOUNT field is used when a combination has been disabled or end-dated or ALLOW

POSTING has been unchecked. For journals being imported via the Journal Import interface when the

inactive account is on one of the journal lines, ALTERNATE ACCOUNT will be used by EBS instead when

creating the journal entry. This is a powerful tool in coordinating the timing of disabling combinations when

transactions are being fed into the General Ledger from subledgers and feeder systems.

PRESERVED will preventthis account from being

updated when the

PROGRAM – INHERIT

SEGMENT VALUE

ATTRIBUTES is run.

The TYPE will default in

from the TYPE assigned

to the natural account

value; it cannot be

updated in this form.

Setup | Accounts | Combinations

will allow

reconciliationsto be

performed on

this

combination.


23/27


24/27

24

3

2

Query the General Ledger APPLICATION and select the FLEXFIELD TITLE you want to add an alias to. Select ENABLED, and add the MAX

ALIAS SIZE to set a limit on the alias name, as well as the PROMPT, which is seen by the users when entering the alias on a form. The

ALIAS is the name the user will enter instead of the actual account combination. The TEMPLATE determines which segments will

default in for this ALIAS, and what the defaults will be. Notice that on the Bad Debts alias in the example, the Cost Center is not

completed, allowing the user to add a cost center when using the alias. The ALIAS DESCRIPTION is the description that appears on the

Alias form. Under the ALIASES, EFFECTIVE tab, the aliases can be ENABLED and given a FROM and TO date. Recompile your Flexfield to

engage the alias on the forms, by going into the Key FlexfieldSegments screen (Setup | Financials | Flexfields | Key | Segments),

querying the accounting Flexfield and clicking COMPILE. Once this is set up, the alias pop-up box will appear when usersencounter a form where an account combination is available to be entered.

S i U R l f V lid A C bi i


25/27

25

Setting Up Rules for Valid Account Combinations

Setup | Financials | Flexfields | Key | Rules

Cross-Validation Rules (CVRs) are used to prevent inaccurate combinations from being created in EBS, and are essential

in preventing mispostings when Dynamic Insertion is turned on. Using a find box where the Accounting Flexfield is

queried up. Select the Accounting Flexfield, and click FIND. General Ledger will appear in the APPLICATION, and

Accounting Flexfield in the FLEXFIELD TITLE, and the STRUCTURE that was selected in the Find box.

- Keep it Simple and clear to assists in maintenance and help with troubleshooting.

- Make sure to include the entire segment values first and exclude the invalid accounts

An important thing to remember is

that CVRs only prevent new

combinations from being created.

They do not disable any existing

combinations that were created

prior to creating the rule. Run the

concurrent process calledCross-Validation Rule Violation

Report, found in System

Administrator. This report can be

run to review or disable all the

combinations that violate all the

active CVRs in your system.

Combinations can also be disabled

manually in the General Ledger |

Setup | Accounts | Combinations

form.


26/27

26

Custom Segments for Tracking Additional Data (Optional) Descriptive Flexfields [ ]

A powerful feature in EBS is the ability to add custom fields on many of the forms. DFF setups look exactly like the

Key Flexfield used for creating your Accounting Flexfield. Perhaps the hardest part of setting up DFF is finding out the

DFF name that appears on the form and table you want to use. The easiest way to see all the DFFs on a specific form

is to use the Examine feature. This feature requires either that the user enter the APPS password or that the profile

option called Utilities: Diagnostics be set to Yes (this can be set for just a few users, as it can be set at the user level).

Also you can perform a standard Find as you see here.

Setup | Financials | Descriptive | Segments

The next steps like

the KFF setup

This name appear soon

you click the DFF icon []

In the form of Enter

journals Header DFF.

Then you choose the

values from the

segments that you

defined here.


27/27

27

he beginning is always the

hardest

Documents

Oracle - GL COA - Setup and Maintainance