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Oracle® Financials Implementation Guide Release 12
raviteja mupparapuRelated papers
Formal Specifications of Computer-Based Systems - J.UCS Special Issue
Zenodo (CERN European Organization for Nuclear Research), 2003
The Challenge of the Astronomical Diaries from Babylon: Authors, Concern, Scholarship, and Worldview Reconsidered
R.J. van der Spek, "The Challenge of the Astronomical Diaries from Babylon: Authors, Concern, Scholarship, and Worldview Reconsidered", Journal of the American Oriental Society 142.4 (2022) 975-981, 2022
The Astronomical Diaries are a unique corpus of documents from Babylon containing daily observations of celestial and terrestrial phenomena in the last half millennium before the common era. They provide direct information on how Babylonian scholars conducted scientific research and viewed political, economic, and religious events of their time-in other words, how they experienced their era. The book under review is a good introduction to this corpus. This is a review article of: Johannes Haubold, John Steele, and Kathryn Stevens eds., Keeping Watch in Babylon: The Astronomical Diaries in Context. Leiden, Boston: Brill, 2019.
Atajos hacia el humanismo cívico
2018
Con este libro de consulta se cierra un ciclo de diez anos de investigacion filosofica del proyecto Humanismo Civico. El humanismo civico es un largo camino en el que, como todo postulado de filosofia politica, las palabras se entretejen con muchisima mas celeridad y holganza que las acciones concertadas de los hombres libres. Pues bien, como buenos latinoamericanos, junto con 10 miembros de la Red Humanismo Civico que han contribuido con este pequeno proyecto, hemos querido abrir atajos para llegar por caminos tal vez mas arduos, pero tal vez mas cortos, por los que el grato discurrir literario y el dificil ejercicio practico conducen conjuntamente a una meta muy clara: la revitalizacion y el empoderamiento de la ciudadania en el seno de las democracias occidentales.
Proto-Japanese and Eastern Old Japanese innovations inherited in Hachijō
2024
Supplement to Kupchik 2023 (Azuma Old Japanese: A Comparative Grammar and Reconstruction, De Gruyter Mouton).
Emre DİZDAR - Hekimlerin Cezaî Sorumluluğu-s.1-50.pdf
Hekimlerin Cezaî Sorumluluğu, 2018
Application of medical science to human body is an important part of human life. Medical interventions that assist to protect human health, to treat diseases or to reduce pain, directly concern a person’s rights to life and body integrity. As the application of medical science has major importance from the perspective of human life and health, the law should foresee protective norms and liability regime against risk areas such as abusing of medical practice and malpractice. The purpose of this study is to evaluate medical practice, which serves the physical and spiritual integrity of the human body, from the point of view of criminal law. Initially, medical intervention was defined in our study; its relationship with fundamental rights as well as the major aspects of the liability regime within other branches of law were mentioned. In the second part, the theoretical basis of the lawfulness of medical intervention is examined in terms of criminal law. In accordance with the theoretical view that we adopt, the legitimacy terms of medical intervention in the Turkish law and the cases of medical malpractice are explained in the light of the relevant legislation and judicial precedents. In the third part, criminal responsibility arising from medical intervention has been assessed in terms of certain typical offenses and these crimes have been systematically explained. Our scope of explanation is limited to offenses directly linked to medical intervention. Crimes committed by any physician related to being a public officer and other offenses committed as a human being were excluded from our study.
Performance Measurement Techniques and Performance Management in the Public Sector
International Journal of Social Sciences and Humanities Review, 2015
Islas, O. Panorama de las redes sociodigitales en 2023, Primera parte, El Universal, 7 de febrero 2023
El Universal, 2023
El mencionado reporte admite ser considerado como el estudio más completo sobre el panorama de las redes sociodigitales en el mundo. Este año, el mencionado estudio comprendió 465 pantallas. El estudio correspondiente a 2022, realizado entonces por las firmas We Are Social y Hootsuite, incluyó 300 pantallas. Población, usuarios de Internet y usuarios de redes sociodigitales La población mundial fue estimada en poco más de 8 mil millones de personas (8,010,000,000). China sigue siendo el país más poblado, con 1,425,849,000 personas; sin embargo, la población en India tiene 1,422,027,000 personas y, debido a las políticas observadas en China en materia de control de la natalidad, es muy probable que en 2024 India supere a China como el país más poblado. El total de usuarios de Internet fue establecido en 5,160,000,000 (64.4% de la población mundial). Otras fuentes ofrecen los siguientes datos:
Oracle® Financials
Implementation Guide
Release 12
Part No. B16386-02
April 2007
Oracle Financials Implementation Guide, Release 12
Part No. B16386-02
Copyright © 2005, 2007, Oracle. All rights reserved.
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Ramasubramanian Balasundaram, Gail D'Aloisio, Theresa Hickman
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Contents
Send Us Your Comments
Preface
1
Introduction
Introduction............................................................................................................................... 1-1
Implementation Considerations .............................................................................................. 1-1
Implementation Guides............................................................................................................ 1-2
Accounting Setup Manager....................................................................................................... 1-4
Oracle Advanced Global Intercompany System...................................................................... 1-4
Legal Entity Configurator......................................................................................................... 1-4
Accounting Sequencing............................................................................................................ 1-4
2
Overview of Accounting Setups
Introduction............................................................................................................................... 2-1
Accounting Setups..................................................................................................................... 2-1
Ledger Processing Options.................................................................................................. 2-2
Secondary Ledgers............................................................................................................... 2-4
Reporting Currencies........................................................................................................... 2-6
Accounting Setup Considerations............................................................................................ 2-7
Accounting Setups with One Legal Entity .......................................................................... 2-7
Accounting Setups with Multiple Legal Entities..................................................................2-8
Accounting Setups with No Legal Entities.......................................................................... 2-9
Designing the Chart of Accounts....................................................................................... 2-12
Feature Comparison by Accounting Setup........................................................................ 2-13
iii
3
Using Accounting Setup Manager
Creating Accounting Setups..................................................................................................... 3-1
Accounting Setup Process.................................................................................................... 3-2
Accounting Setup Prerequisites .......................................................................................... 3-2
Accounting Setup Manager Pages....................................................................................... 3-3
Accounting Setup Manager Checklist.................................................................................. 3-6
Legal Entities Overview.......................................................................................................... 3-12
Balancing Segment Value Assignments............................................................................. 3-13
Using Balancing Segment Values for Transaction Processing............................................3-13
Completing Accounting Setups......................................................................................... 3-14
Designating the Balancing Segment for a Chart of Accounts.............................................3-14
Defining Legal Entities Using Accounting Setup Manager................................................3-14
Updating Balancing Segment Values................................................................................. 3-17
Creating Accounting Setup Structures................................................................................... 3-18
Accounting Setup Manager Prerequisites Checklist.......................................................... 3-18
Creating an Accounting Setup........................................................................................... 3-23
Assigning Legal Entities.............................................................................................. 3-23
Defining Accounting Representations......................................................................... 3-23
Saving the Accounting Structure................................................................................. 3-26
Completing Accounting Options............................................................................................ 3-27
Updating Legal Entities..................................................................................................... 3-28
Primary Ledger Setup Steps...............................................................................................3-29
Secondary Ledger Setup Steps........................................................................................... 3-29
Ledger Options.................................................................................................................. 3-30
Reporting Currencies.............................................................................................................. 3-45
Assigning Reporting Currencies to Ledgers...................................................................... 3-46
Journal Source and Category Conversion.......................................................................... 3-53
Subledger Level Reporting Currencies.............................................................................. 3-54
Journal Conversion Rule Examples................................................................................... 3-54
Changing Conversion Rules.............................................................................................. 3-57
Adding Reporting Currencies............................................................................................ 3-58
Disabling the Conversion of Reporting Currencies........................................................... 3-60
Ledger Balancing Segment Value Assignments..................................................................... 3-61
Subledger Accounting Options ..............................................................................................3-63
Operating Units....................................................................................................................... 3-63
Intercompany Accounts .......................................................................................................... 3-65
Intracompany Balancing Rules............................................................................................... 3-65
Sequencing.............................................................................................................................. 3-66
Secondary Ledgers................................................................................................................... 3-66
iv
Data Conversion Levels..................................................................................................... 3-67
Using Secondary Ledgers for Consolidated Reporting...................................................... 3-71
Using Ledgers for Consolidation....................................................................................... 3-74
Completing Accounting Setup................................................................................................ 3-78
Adding, Deleting, and Disabling Secondary Ledgers........................................................ 3-79
Primary to Secondary Ledger Mapping............................................................................. 3-82
4
Defining Legal Entities Using the Legal Entity Configurator
Overview................................................................................................................................... 4-1
Legal Entities........................................................................................................................4-2
Establishments..................................................................................................................... 4-3
Registration.......................................................................................................................... 4-3
Jurisdictions......................................................................................................................... 4-4
Legal Authorities................................................................................................................. 4-4
Legal Associations............................................................................................................... 4-5
Generating the Legal Entity Identifier................................................................................. 4-5
Using the Legal Entity Configurator......................................................................................... 4-5
Using the Legal Entity Home Page...................................................................................... 4-6
Searching for a Legal Entity................................................................................................. 4-6
Creating a Legal Entity........................................................................................................ 4-6
Creating Establishments...................................................................................................... 4-9
Configuring an Organization as a Legal Entity or Establishment...................................... 4-11
Updating Legal Entities..................................................................................................... 4-11
Updating Legal Entities Details ........................................................................................ 4-12
Updating Establishments................................................................................................... 4-13
Creating Registrations........................................................................................................4-14
Updating Registrations...................................................................................................... 4-15
Changing the Main Establishment..................................................................................... 4-16
Setting Up Legal Addresses .............................................................................................. 4-16
Searching for a Jurisdiction................................................................................................ 4-16
Creating and Updating Jurisdictions................................................................................. 4-17
Creating and Updating Legal Authorities......................................................................... 4-18
5
Intercompany and Intracompany Balancing
Overview................................................................................................................................... 5-1
Intercompany Balancing........................................................................................................... 5-2
Intracompany Balancing Rules................................................................................................. 5-4
Intercompany Balancing Engine............................................................................................... 5-7
v
6
Additional General Ledger Setup
Introduction............................................................................................................................... 6-1
Ledger Sets................................................................................................................................. 6-1
Oracle General Ledger Security................................................................................................ 6-2
Data Access Sets................................................................................................................... 6-2
Definition Access Sets.......................................................................................................... 6-4
7
Accounting and Reporting Sequencing
Overview................................................................................................................................... 7-1
Defining Sequences.................................................................................................................. 7-2
Updating Sequences.............................................................................................................7-3
Sequences Page.................................................................................................................... 7-3
Defining Sequence Assignments.............................................................................................. 7-4
Creating a Sequencing Context............................................................................................ 7-4
Sequence Contexts Page................................................................................................ 7-4
Sequencing Context for Subledger and General Ledger Journals..................................7-5
Assigning a Sequence.......................................................................................................... 7-6
Sequence Assignments Page..........................................................................................7-6
Sequence Assignments for Subledger and General Ledger Journals............................. 7-8
Defining Exceptions............................................................................................................. 7-9
Updating Assignments...................................................................................................... 7-11
A
Accounting Setup Examples
Introduction.............................................................................................................................. A-1
Accounting Setup with Multiple Legal Entities – U.S. Only Operations............................... A-1
Additional Requirements ................................................................................................... A-2
Accounting Setup for U.S. Legal Entities............................................................................. A-3
Consolidation...................................................................................................................... A-5
Security................................................................................................................................ A-6
Accounting Setup – North American Company.......................................................................A-8
Additional Requirements: .................................................................................................. A-9
Accounting Setup for Canadian Legal Entity.................................................................... A-11
Ledger Sets........................................................................................................................ A-14
Consolidation ................................................................................................................... A-14
Security ............................................................................................................................. A-15
Accounting Setup – European Operations............................................................................. A-16
Requirements for London Rain (U.K.):.............................................................................. A-16
Accounting Setup for the U.K............................................................................................ A-19
Accounting Setup - Latin America Operations...................................................................... A-21
vi
Requirements for Brazil:.................................................................................................... A-22
Accounting Setup for Brazil .............................................................................................. A-23
Accounting Setup with No Legal Entities - Consolidation Example.....................................A-26
Accounting Setup for Consolidation Purposes.................................................................. A-28
Consolidation Steps........................................................................................................... A-29
Management Reporting Example - U.S. Only Operations..................................................... A-30
Additional Requirements ................................................................................................. A-31
Using Secondary Ledgers for Management Reporting...................................................... A-33
Ledger Set.......................................................................................................................... A-34
Security.............................................................................................................................. A-34
B
Oracle Financials Profile Options
Profile Options Overview......................................................................................................... B-1
Setup Profile Options Summary.......................................................................................... B-2
Glossary
Index
vii
Send Us Your Comments
Oracle Financials Implementation Guide, Release 12
Part No. B16386-02
Oracle welcomes customers' comments and suggestions on the quality and usefulness of this document.
Your feedback is important, and helps us to best meet your needs as a user of our products. For example:
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ix
Preface
Intended Audience
Welcome to Release 12 of the Oracle Financials Implementation Guide.
This guide assumes you have a working knowledge of the following:
•
The principles and customary practices of your business area.
•
Computer desktop application usage and terminology
If you have never used Oracle Applications, we suggest you attend one or more of the
Oracle Applications training classes available through Oracle University.
See Related Information Sources on page xii for more Oracle Applications product
information.
TTY Access to Oracle Support Services
Oracle provides dedicated Text Telephone (TTY) access to Oracle Support Services
within the United States of America 24 hours a day, seven days a week. For TTY
support, call 800.446.2398.
Documentation Accessibility
Our goal is to make Oracle products, services, and supporting documentation
accessible, with good usability, to the disabled community. To that end, our
documentation includes features that make information available to users of assistive
technology. This documentation is available in HTML format, and contains markup to
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evolve over time, and Oracle is actively engaged with other market-leading technology
vendors to address technical obstacles so that our documentation can be accessible to all
of our customers. For more information, visit the Oracle Accessibility Program Web site
xi
at http://www.oracle.com/accessibility/ .
Accessibility of Code Examples in Documentation
Screen readers may not always correctly read the code examples in this document. The
conventions for writing code require that closing braces should appear on an otherwise
empty line; however, some screen readers may not always read a line of text that
consists solely of a bracket or brace.
Accessibility of Links to External Web Sites in Documentation
This documentation may contain links to Web sites of other companies or organizations
that Oracle does not own or control. Oracle neither evaluates nor makes any
representations regarding the accessibility of these Web sites.
Structure
1 Introduction
2 Overview of Accounting Setups
3 Using Accounting Setup Manager
4 Defining Legal Entities Using the Legal Entity Configurator
5 Intercompany and Intracompany Balancing
6 Additional General Ledger Setup
7 Accounting and Reporting Sequencing
A Accounting Setup Examples
B Oracle Financials Profile Options
Glossary
Related Information Sources
This document is included on the Oracle Applications Document Library, which is
supplied in the Release 12 DVD Pack. You can download soft-copy documentation as
PDF files from the Oracle Technology Network at http://otn.oracle.com/documentation,
or you can purchase hard-copy documentation from the Oracle Store at
http://oraclestore.oracle.com. The Oracle E-Business Suite Documentation Library
Release 12 contains the latest information, including any documents that have changed
significantly between releases. If substantial changes to this book are necessary, a
revised version will be made available on the online documentation CD on Oracle
MetaLink.
If this guide refers you to other Oracle Applications documentation, use only the
Release 12 versions of those guides.
For a full list of documentation resources for Oracle Applications Release 12, see Oracle
Applications Documentation Resources, Release 12, OracleMetaLink Document
394692.1.
Online Documentation
xii
All Oracle Applications documentation is available online (HTML or PDF).
•
PDF - PDF documentation is available for download from the Oracle Technology
Network at http://otn.oracle.com/documentation.
•
Online Help - Online help patches (HTML) are available on OracleMetaLink.
•
Oracle MetaLink Knowledge Browser - The OracleMetaLink Knowledge Browser
lets you browse the knowledge base, from a single product page, to find all
documents for that product area. Use the Knowledge Browser to search for
release-specific information, such as FAQs, recent patches, alerts, white papers,
troubleshooting tips, and other archived documents.
•
Oracle eBusiness Suite Electronic Technical Reference Manuals - Each Electronic
Technical Reference Manual (eTRM) contains database diagrams and a detailed
description of database tables, forms, reports, and programs for a specific Oracle
Applications product. This information helps you convert data from your existing
applications and integrate Oracle Applications data with non-Oracle applications,
and write custom reports for Oracle Applications products. Oracle eTRM is
available on OracleMetaLink.
Related Guides
You should have the following related books on hand. Depending on the requirements
of your particular installation, you may also need additional manuals or guides.
Oracle Applications Concepts:
This book is intended for all those planning to deploy Oracle E-Business Suite Release
12, or contemplating significant changes to a configuration. After describing the Oracle
Applications architecture and technology stack, it focuses on strategic topics, giving a
broad outline of the actions needed to achieve a particular goal, plus the installation and
configuration choices that may be available.
Oracle Applications Flexfields Guide
This guide provides flexfields planning, setup, and reference information for the Oracle
Applications implementation team, as well as for users responsible for the ongoing
maintenance of Oracle Applications product data. This guide also provides information
on creating custom reports on flexfields data.
Oracle Applications Installation Guide: Using Rapid Install:
This book is intended for use by anyone who is responsible for installing or upgrading
Oracle Applications. It provides instructions for running Rapid Install either to carry
out a fresh installation of Oracle Applications Release 12, or as part of an upgrade from
Release 11i to Release 12. The book also describes the steps needed to install the
technology stack components only, for the special situations where this is applicable.
Oracle Applications Maintenance Procedures:
This guide describes how to use AD maintenance utilities to complete tasks such as
xiii
compiling invalid objects, managing parallel processing jobs, and maintaining snapshot
information. Part of Maintaining Oracle Applications, a 3-book set that also includes
Oracle Applications Patching Procedures and Oracle Applications Maintenance
Utilities.
Oracle Applications Maintenance Utilities:
This guide describes how to run utilities, such as AD Administration and AD
Controller, used to maintain the Oracle Applications file system and database. Outlines
the actions performed by these utilities, such as monitoring parallel processes,
generating Applications files, and maintaining Applications database entities. Part of
Maintaining Oracle Applications, a 3-book set that also includes Oracle Applications
Patching Procedures and Oracle Applications Maintenance Procedures.
Oracle Applications Patching Procedures:
This guide describes how to patch the Oracle Applications file system and database
using AutoPatch, and how to use other patching-related tools like AD Merge Patch,
OAM Patch Wizard, and OAM Registered Flagged Files. Describes patch types and
structure, and outlines some of the most commonly used patching procedures. Part of
Maintaining Oracle Applications, a 3-book set that also includes Oracle Applications
Maintenance Utilities and Oracle Applications Maintenance Procedures.
Oracle Applications System Administrator's Guide Documentation Set
This documentation set provides planning and reference information for the Oracle
Applications System Administrator. Oracle Applications System Administrator's Guide Configuration contains information on system configuration steps, including defining
concurrent programs and managers, enabling Oracle Applications Manager features,
and setting up printers and online help. Oracle Applications System Administrator's Guide
- Maintenance provides information for frequent tasks such as monitoring your system
with Oracle Applications Manager, managing concurrent managers and reports, using
diagnostic utilities, managing profile options, and using alerts. Oracle Applications
System Administrator's Guide - Security describes User Management, data security,
function security, auditing, and security configurations.
Oracle Applications Upgrade Guide: Release 11i to Release 12:
This guide provides information for DBAs and Applications Specialists who are
responsible for upgrading a Release 11i Oracle Applications system (techstack and
products) to Release 12. In addition to information about applying the upgrade driver,
it outlines pre-upgrade steps and post-upgrade steps, and provides descriptions of
product-specific functional changes and suggestions for verifying the upgrade and
reducing downtime.
Oracle Advanced Global Intercompany System User's Guide:
This guide describes the self service application pages available for Intercompany users.
It includes information on setting up intercompany, entering intercompany
transactions, importing transactions from external sources and generating reports.
Oracle Applications Multiple Organizations Implementation Guide:
xiv
This guide describes the multiple organizations concepts in Oracle Applications. It
describes in detail on setting up and working effectively with multiple organizations in
Oracle Applications.
Oracle Financial Consolidation Hub User Guide:
This guide describes how to set up, maintain, and troubleshoot Oracle Financial
Consolidation Hub. It describes setting up entities, categories, consolidation methods,
consolidation rules, intercompany rules, calendar maps, translation, consolidation
hierarchies, analytical reporting, and the Excel add-in. The guide also includes chapters
on submitting data, running consolidations, accounting for acquisitions and disposals,
integrating with Internal Controls Manager and WebADI spreadsheets.
Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to
Release 12:
This guides provides detailed information about the functional impacts of upgrading
Oracle Financials and Oracle Procurement products from Release 11i to Release 12. This
guide supplements the Oracle Applications Upgrade Guide: Release 11i to Release 12.
Oracle Financials Concepts Guide:
This guide describes the fundamental concepts of Oracle Financials. The guide is
intended to introduce readers to the concepts used in the applications, and help them
compare their real world business, organization, and processes to those used in the
applications.
Oracle General Ledger Implementation Guide:
This guide provides information on how to implement Oracle General Ledger. Use this
guide to understand the implementation steps required for application use, including
how to set up Accounting Flexfields, Accounts, and Calendars.
Oracle General Ledger User's Guide:
This guide provides information on how to use Oracle General Ledger. Use this guide
to learn how to create and maintain ledgers, ledger currencies, budgets, and journal
entries. This guide also includes information about running financial reports.
Oracle Payables User Guide:
This guide describes how to use Oracle Payables to create invoices and make payments.
In addition, it describes how to enter and manage suppliers, import invoices using the
Payables open interface, manage purchase order and receipt matching, apply holds to
invoices, and validate invoices. It contains information on managing expense reporting,
procurement cards, and credit cards. This guide also explains the accounting for
Payables transactions.
Oracle Subledger Accounting Implementation Guide:
This guide provides setup information for Oracle Subledger Accounting features,
including the Accounting Methods Builder. You can use the Accounting Methods
Builder to create and modify the setup for subledger journal lines and application
accounting definitions for Oracle subledger applications. This guide also discusses the
xv
reports available in Oracle Subledger Accounting and describes how to inquire on
subledger journal entries.
Oracle Trading Community Architecture User Guide:
This guide describes the Oracle Trading Community Architecture (TCA) and how to
use features from the Trading Community Manager responsibility to create, update,
enrich, and cleanse the data in the TCA Registry. It also describes how to use Resource
Manager to define and manage resources.
Oracle Project Costing User Guide:
Use this guide to learn detailed information about Oracle Project Costing. Oracle Project
Costing provides the tools for processing project expenditures, including calculating
their cost to each project and determining the GL accounts to which the costs are
posted.
Integration Repository
The Oracle Integration Repository is a compilation of information about the service
endpoints exposed by the Oracle E-Business Suite of applications. It provides a
complete catalog of Oracle E-Business Suite's business service interfaces. The tool lets
users easily discover and deploy the appropriate business service interface for
integration with any system, application, or business partner.
The Oracle Integration Repository is shipped as part of the E-Business Suite. As your
instance is patched, the repository is automatically updated with content appropriate
for the precise revisions of interfaces in your environment.
Do Not Use Database Tools to Modify Oracle Applications Data
Oracle STRONGLY RECOMMENDS that you never use SQL*Plus, Oracle Data
Browser, database triggers, or any other tool to modify Oracle Applications data unless
otherwise instructed.
Oracle provides powerful tools you can use to create, store, change, retrieve, and
maintain information in an Oracle database. But if you use Oracle tools such as
SQL*Plus to modify Oracle Applications data, you risk destroying the integrity of your
data and you lose the ability to audit changes to your data.
Because Oracle Applications tables are interrelated, any change you make using an
Oracle Applications form can update many tables at once. But when you modify Oracle
Applications data using anything other than Oracle Applications, you may change a
row in one table without making corresponding changes in related tables. If your tables
get out of synchronization with each other, you risk retrieving erroneous information
and you risk unpredictable results throughout Oracle Applications.
When you use Oracle Applications to modify your data, Oracle Applications
automatically checks that your changes are valid. Oracle Applications also keeps track
of who changes information. If you enter information into database tables using
xvi
database tools, you may store invalid information. You also lose the ability to track who
has changed your information because SQL*Plus and other database tools do not keep a
record of changes.
xvii
1
Introduction
This chapter covers the following topics:
•
Introduction
•
Implementation Considerations
•
Implementation Guides
•
Accounting Setup Manager
•
Oracle Advanced Global Intercompany System
•
Legal Entity Configurator
•
Accounting Sequencing
Introduction
The Oracle E-Business Suite is an integrated suite of business applications that connects
and automates the entire flow of business processes across both front and back office
operations, and addresses the needs of a global enterprise. Because Oracle E-Business
Suite products are engineered to work together, users can streamline the setup process
by sharing common setup data across applications.
Implementation Considerations
Implementing the E-Business Suite is dependent on many factors and you will want to
set it up according to your industry and business needs. You can optimize your legal
and compliance processing by addressing factors like the following in your
implementation:
•
Statutory and legal requirements for legal entity accounting, such as document
sequencing, tax accounting, and intercompany accounting
•
The number of subsidiaries that use different charts of accounts, calendars,
currencies, and subledger accounting methods
Introduction
1-1
•
Number of subsidiaries that use different charts of accounts, calendars, currencies,
and subledger accounting methods
•
The Oracle Financials subledger applications implemented
•
The number of Oracle Applications instances
Implementation Guides
Oracle provides a set of implementation guides to help with implementing the Oracle
E-Business Suite. This guide, the Oracle Financials Implementation Guide, serves as an
introduction to the set. Together with the other implementation guides and your
product-specific implementation guides, it leads you through setting up Oracle
Financials to efficiently represent your organization and execute your business
processes and flows.
Interrelated Guides
When setting up the E-Business Suite, you use the Multiple Organizations feature to
define your compliance in respect of national transaction regulations and access to data
for your employees and processes. You use Oracle General Ledger to define both a large
amount of your reporting and your financial analysis access. You use Oracle Subledger
Accounting to define your group reporting compliance. Legal entities are, either
individually or collectively, responsible for that compliance and reporting. Together,
they drive both local and corporate fiscal reporting, compliance, and security access.
The functions described in these guides are designed to help you manage the
implementation of control over your compliance and reporting, and of your
organization's processing plan in a centralized and straightforward manner.
Oracle Subledger Accounting Implementation Guide
Use the Oracle Subledger Accounting Implementation Guide to help you set up the
document bookkeeping for an accounting entity, either an individual company or a
group of companies that can be treated as one. Oracle Subledger Accounting automates
your company's detailed accounting. You can set up your accounting according to local
strictures and/or your parent accounting principles using the local currency, your
parent currency, and any other currencies your business dictates.
Oracle General Ledger Implementation Guide
Use the Oracle General Ledger Implementation Guide to help you set up ledgers in
respect to accounting entities, such as individual companies or groups that can be
treated as one. You can account for that entity externally, for management, and for
decision making according to your needs. The guide addresses the creation of balanced
reporting units within a ledger, as well as the creation of other business units, such as
1-2
Oracle Financials Implementation Guide
cost centers. It discusses chart of account design and implementation, and setting up
calendars. It contains sections on grouping ledgers into ledger sets for ease of
management and reporting, and on using multiple ledgers to capture different views of
an entire operation.
Oracle Applications Multiple Organizations Implementation Guide
Use the Oracle Applications Multiple Organizations Implementation Guide to set up
system organizations that represent your actual organization. These organizations
maintain subledger documentation in organizational stores that are clearly distinct from
each other, arrange reference data by organization, and provide a basis for security
when accessing subledger documents.
Oracle Payments Implementation Guide
This guide describes how Oracle Payments, as the central payment engine for the
Oracle E-Business Suite, processes transactions, such as invoice payments from Oracle
Payables, bank account transfers from Oracle Cash Management, and settlements
against credit cards and bank accounts from Oracle Receivables. This guide also
describes how Oracle Payments is integrated with financial institutions and payment
systems for receipt and payment processing, known as funds capture and funds
disbursement, respectively. Additionally, the guide explains to the implementer how to
plan the implementation of Oracle Payments, how to configure it, set it up, test
transactions, and how use it with external payment systems.
Oracle Cash Management User Guide
This guide describes how to set up and use Oracle Cash Management to clear your
receipts, as well as reconcile bank statements with your outstanding balances and
transactions. This manual also explains how to effectively manage and control your
cash cycle. It provides comprehensive bank reconciliation and flexible cash forecasting.
Oracle E-Business Tax Implementation Guide
This guide provides a conceptual overview of the E-Business Tax tax engine, and
describes the prerequisite implementation steps to complete in other applications in
order to set up and use E-Business Tax. The guide also includes extensive examples of
setting up country-specific tax requirements.
Oracle Human Resources Management Systems Implementation Guide
Learn about the setup procedures you need to carry out in order to implement Oracle
HRMS successfully in your enterprise.
Introduction
1-3
Accounting Setup Manager
Use the Accounting Setup Manager to manage legal entities, ledgers, accounting rules,
reporting currencies, and intercompany transactions. You can create an individual legal
entity or a group of legal entities that behave as one, and assign the primary ledger to it.
You can optionally assign additional ledgers to the legal entity. You select the
currencies in which you want to account for the legal entity, the level of accounting
detail, the accounting method you want to use for the entity, and the detail of your
intercompany elimination system, and management.
Oracle Advanced Global Intercompany System
The Oracle Advanced Global Intercompany System (AGIS) streamlines the
intercompany trading and reconciliation process across ledgers. Oracle AGIS allows
companies to comply not only with local regulations, but also to follow established
corporate standards for processing intercompany transactions between related legal
entities of an enterprise. It also provides interactive reconciliation reporting, which
allows you to drill down to the details of intercompany account balances so you can
quickly find the source of discrepancies in the balances of each trading partner's
account.
Legal Entity Configurator
The Oracle Legal Entity Configurator helps you to conveniently set up and manage
your legal structure, legal functions, and supporting legal information in a single user
interface. It supports global requirements for entering legal entity information. You
record the registration of legal entities in several domains (e.g. income tax, commercial
law) and by geographic region with the appropriate government/legal authorities, for
the purpose of claiming and ensuring legal and/or commercial rights and
responsibilities. The Legal Entity Configurator uses country-specific fields and names to
make the user interface intuitive for users in any region, and you can include additional
country-specific information that you need to record for each legal entity. It also
provides management tools to keep track of the latest information entered so you can
easily monitor the required registration status for both legal entities and their
establishments.
Accounting Sequencing
Accounting sequencing is the numbering of the accounting entries in respect to
subledger and other accounting feeds. It is distinct from document sequencing, which is
used to number invoices, payment forms, and other fiscal documents such as debit or
credit memos. Local regulations may dictate how accounting entries should be
numbered.
1-4
Oracle Financials Implementation Guide
2
Overview of Accounting Setups
This chapter covers the following topics:
•
Introduction
•
Accounting Setups
•
Accounting Setup Considerations
Introduction
This chapter explains how multiple legal entities and companies can be configured
within one or more accounting setups using Accounting Setup Manager.
Accounting Setups
An accounting setup defines the accounting context for one or more legal entities or a
business need if legal entities are not involved.
Note: Accounting Setup, page 3-1
Defining an accounting setup is based on several factors, such as the following:
•
legal environment
•
number of legal entities maintained in the same primary ledger
•
business needs
•
transaction processing needs
Legal entities should be assigned to accounting setups to maintain a legal entity context
for transactions and use Oracle financial subledgers that require a legal entity context.
No legal entities should be assigned to accounting setups if there are business needs
that do no require a legal entity context.
Overview of Accounting Setups
2-1
If legal entities are involved, the general rule is to define a separate accounting setup for
each legal entity or group of legal entities that require their own primary ledger. In
other words, if legal entities require any one of the following attributes to be different
from other legal entities, a different primary ledger is required, and therefore a different
accounting setup is required:
•
chart of accounts: One legal entity requires a six-segment chart of accounts and
another requires only a four-segment chart of accounts.
•
accounting calendar: One legal entity uses a 4-4-5 calendar and another uses a
monthly calendar; or one legal entity has a different fiscal year end than another.
•
primary currency: Legal entities operate in different countries requiring them to use
their own local currencies.
•
subledger accounting method: Legal entities operate in different countries or
industries that have different accounting standards.
•
ledger processing options: Legal entities operate in different industries, such as
retail and financial services, and require different ledger processing options, such as
maintaining average daily balances for legal entities in the financial services
industry.
Ledger Processing Options
Ledger Processing Options are defined at the ledger level and refer to the following
options that control how journals and transactions are processed for that ledger:
2-2
•
First Ever Opened Period
•
Number of Future Enterable Periods
•
Retained Earnings Account
•
Subledger Accounting Options, such as the subledger accounting method, journal
description language, entered currency balancing account, cash basis accounting,
and the ledger currency balancing account
•
Option to track balances using a secondary segment
•
Suspense Account
•
Rounding Differences Tracking Account
•
Intracompany Balancing option
•
Journal Approval
Oracle Financials Implementation Guide
•
Journal Entry Tax
•
Journal Reversal Criteria Set
•
Default Period End Rate Type
•
Default Period Average Rate Type
•
Cumulative Translation Adjustment Account
•
Journal Reconciliation
•
Budgetary Control
•
Reserve for Encumbrance Account
•
Average Balance Processing
•
Average Balance Consolidation
•
Net Income Account
•
Transaction Calendar
If there are legal entities that require any one of the above ledger processing options to
be different, then define a separate primary ledger for each legal entity and therefore, a
new accounting setup.
Note: Ledger Options, page 3-30
Example
Assume that a U.S.-based global company called Global Operations has four legal
entities: two in the U.S., one in the U.K. and one in France. The following table describes
the ledger attributes required for each legal entity.
Ledger Attributes Required for Global Operations Legal Entities
Ledger
Attributes
U.S. East
Operations
U.S. West
Operations
U.K. Operations
France
Operations
Chart of
Accounts
Corporate
Corporate
Corporate
French Statutory
Overview of Accounting Setups
2-3
Ledger
Attributes
U.S. East
Operations
U.S. West
Operations
U.K. Operations
France
Operations
Accounting
Calendar/Period
Type
Monthly/Month
Monthly/Month
Monthly/Month
Fiscal/Fiscal
Currency
USD
USD
GBP
EUR
Subledger
Accounting
Method
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
Based on the above information, create four different accounting setups because each
legal entity requires its own primary ledger.
Note: If the two U.S. legal entities, U.S. East and U.S. West, shared the
same ledger processing options, they could share the same primary
ledger and be included in the same accounting setup.
Secondary Ledgers
Additional ledgers called secondary ledgers can optionally be assigned to an accounting
setup to maintain multiple accounting representations for the same legal entity.
Note: Secondary Ledgers, page 3-66
Assign an unlimited number of secondary ledgers to each primary ledger of an
accounting setup. Each secondary ledger can be maintained at one of the following data
conversion levels:
•
The subledger level secondary ledger maintains subledger journals, general ledger
journal entries, and balances in the additional accounting representation.
This data conversion level uses both Subledger Accounting and the General Ledger
Posting program to create the necessary journals in both the primary and secondary
2-4
Oracle Financials Implementation Guide
ledgers simultaneously. Subledger Accounting creates the journal entries from
subledger transactions if the subledger integrates with Subledger Accounting.
General Ledger Posting creates the journal entries for all other transactions that do
no integrate with Subledger Accounting, including manual journal entries.
•
The journal level secondary ledger maintains primary ledger journal entries and
balances in an additional accounting representation.
This type of secondary ledger is maintained using the General Ledger Posting
program. Every time a journal is posted in the primary ledger, the same journal can
be automatically replicated and maintained in the secondary ledger for those
journal sources and categories that are set up for this behavior.
•
The balance level secondary ledger maintains primary ledger account balances in
another accounting representation.
This type of secondary ledger requires Oracle General Ledger Consolidation to
transfer primary ledger balances to this secondary ledger.
•
The adjustments only secondary ledger level is an incomplete accounting
representation that holds only adjustments.
The adjustments can be manual adjustments or automated adjustments from
Subledger Accounting. This type of ledger must share the same chart of accounts,
accounting calendar/period type combination, and currency as the associated
primary ledger. To obtain a complete secondary accounting representation that
includes both the transactional data and the adjustments, use ledger sets to combine
the adjustments-only secondary ledger with the primary ledger when running
reports.
Note: Journals can entered directly into any type of secondary
ledger.
Note: Data Conversion Levels, page 3-67
Using Secondary Ledgers
Secondary ledgers are used for multiple purposes, such as statutory reporting,
adjustments, or consolidation.
For example, if both a statutory and corporate accounting representation is required for
a legal entity's transactions, two ledgers for the same legal entity can be used: a primary
ledger for the corporate representation and a secondary ledger for the statutory
representation.
Note: Secondary Ledger, page 3-66
Overview of Accounting Setups
2-5
Reporting Currencies
If you only need a different currency representation of the primary or secondary
ledgers, assign reporting currencies to them. Unlike secondary ledgers, reporting
currencies must share the same chart of accounts, accounting calendar/period type
combination, subledger accounting method, and ledger processing options as their
source ledger.
As a general rule, always use reporting currencies instead of secondary ledgers if you
only need to maintain an accounting representation that differs in currency alone.
You can assign reporting currencies to both primary and secondary ledgers. Reporting
currencies are maintained at one of the following currency conversion levels:
•
The subledger level reporting currency maintains a complete currency
representation of your subledger journals, General Ledger journals entries, and
balances.
When using the subledger level reporting currency, define currency conversion
rules. These rules provide instructions on how to convert subledger and general
ledger data to one or more subledger level reporting currencies.
Subledger level reporting currencies are maintained using both Subledger
Accounting and the General Ledger Posting program to create the necessary
subledger journals and General Ledger journals in both the primary and secondary
ledgers simultaneously. Subledger Accounting creates the journal entries from
subledger transactions if the subledger integrates with Subledger Accounting.
General Ledger Posting creates the journal entries for all other transactions that do
not integrate with Subledger Accounting, including manual journal entries.
Note: Subledger level reporting currencies can only be assigned to
primary ledgers.
•
The journal level reporting currency maintains General Ledger journal entries and
balances in another currency representation.
Journal level reporting currencies are maintained using the General Ledger Posting
program. Every time a journal is posted in the source ledger, such as the primary or
secondary ledger, the journal is automatically converted to the respective currency
of the journal level reporting currency.
•
The balance level reporting currency only maintains balances in another currency.
It maintains the translated balances of the source ledger. Every time general ledger
translation is run in the source ledger, such as the primary or secondary ledger, the
translated balances are reflected in the balance level reporting currency.
2-6
Oracle Financials Implementation Guide
Note: Journals can be entered directly into the subledger and
journal level reporting currencies.
Accounting Setup Considerations
Before creating accounting setups, carefully consider the number of legal entities that
you want to assign to each accounting setup.
Associate each accounting setup with one of the following accounting environment
types:
Note: For detailed examples of using the different accounting
environment types, see Introduction, page A-1, Accounting Setup
Examples.
Related Topics
Designing the Chart of Accounts, page 2-12
Accounting Setups with One Legal Entity
You should only assign one legal entity to an accounting setup type if your legal entities
meet any one of the following criteria:
•
operate in a country with strict legislative requirements that require the legal entity
to maintain its accounting data separate from other legal entities
•
have specific legal or statutory rules that require a separate ledger for the legal
entity
•
require different primary ledger attributes from other legal entities
For example, the legal entity requires any one of the following ledger attributes to
be different from other legal entities:
•
chart of accounts: One legal entity requires a 10-segment chart of accounts and
another requires a 6-segment chart of accounts.
•
accounting calendar: One legal entity requires a weekly calendar and another
requires a monthly calendar.
•
primary currency: There are legal entities and companies that require different
primary currencies to act as their main record-keeping currency.
Overview of Accounting Setups
2-7
Note: Consider the business activities and reporting
requirements of each legal entity. If you must present financial
statements in another country and currency, consider the
accounting principles to which you must adhere. Based on such
considerations, choose the appropriate primary currency for
each legal entity.
•
subledger accounting method: One legal entity uses the accrual method of
accounting and another uses the cash basis of accounting.
•
ledger processing options: One legal entity wants to translate revenue and
expense accounts using period-end balances while another legal entity wants to
use year-to-date balances.
Note: Ledger Processing Options, page 2-2
•
need autonomous document sequencing of transactions and journals for each legal
entity
•
need to open and close periods autonomously for each legal entity
•
have tax requirements that are specific for a legal entity
Accounting Setups with Multiple Legal Entities
If an accounting setup has more than one legal entity it means that multiple legal
entities can share the same primary ledger attributes, such as the same chart of
accounts, accounting calendar/period type combination, currency, subledger accounting
method, and ledger processing options.
Assign multiple legal entities to the same accounting setup if all of the legal entities
assigned to the accounting setup meet all of the following criteria:
•
operate in a country that allows multiple legal entities to share the same primary
ledger and ledger attributes, such as the same chart of accounts, calendar, primary
currency, subledger accounting method, document sequence, and accounting
options
•
do not need to have different ledger processing options for each legal entity
For example, legal entities can use the same general ledger translation rule and
cumulative translation adjustment account to translate balances.
Note: Ledger Processing Options, page 2-2
2-8
Oracle Financials Implementation Guide
•
do not need to open and close periods independently by legal entity
•
do not require autonomous document sequencing for a legal entity
•
do not have tax requirements that are specific for a legal entity
Accounting Setups with No Legal Entities
Accounting setups that do not have legal entities assigned can be used for multiple
purposes based on business needs. For example, define an accounting setup with no
legal entity assigned if a legal entity context is not required for transaction processing,
or use it to supplement the accounting contained in other accounting setups that have
legal entities assigned.
You can use accounting setups with no legal entities for the following business needs:
•
You do not need to maintain transactions using a legal entity context.
•
You are using a separate instance of General Ledger as a standalone application and
do not plan to integrate with Oracle financial subledgers that require a legal entity
context.
•
You are not integrating with Oracle financial subledgers but are using Subledger
Accounting to integrate Oracle General Ledger with non-Oracle systems.
•
You want to maintain an additional accounting setup for management reporting
purposes or consolidation purposes.
Using Accounting Setups with No Legal Entities for Management Purposes
If your organization uses legal entities and you have accounting setups that have legal
entities assigned, you can use another accounting setup with no legal entity for
management purposes. For example, you can use its primary ledger to book internal
management adjustments across ledgers in different accounting setups. The
management adjustments can be for any management entity, such as line of business,
cost center, department, or other segment that has management responsibility.
For example, assume the department segment of the chart of accounts represents the
management entity and you have three departments: Finance, Sales, and HR. The figure
below represents the management hierarchy for the department segment with the three
departments reporting to the CEO.
Overview of Accounting Setups
2-9
Use the accounting setups described in the following table to perform the day-to-day
accounting.
Accounting Setups
Legal Entity
Vision Credit Group
Legal Entity
Vision Services and
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
Transactions are entered for all three departments in all three ledgers during the normal
course of business. For example, enter expenses for each department.
To enter management adjustments that cross the management entity for all three
ledgers, define another accounting setup that has no legal entities assigned as described
in the following graphic and table.
2-10
Oracle Financials Implementation Guide
Accounting Setup for Vision Management
Setup
Description
Primary Ledger
Vision Management
Chart of Accounts:
Corporate
Calendar
Monthly
Currency
USD
By itself, this management ledger may not represent the complete accounting picture; it
may hold only the management adjustments. You can keep the management
adjustments completely separate from day-to-day transactions. In order to obtain a
complete management picture to use for management reporting and analysis, use a
ledger set to combine the results of the management ledger with the other ledgers that
hold the day-to-day transactions. You can obtain a complete management view of the
company when reporting on the ledger set.
Note: Ledger Sets group multiple ledgers together (that share the same
chart of accounts and accounting calendar/period type combination) to
obtain processing efficiencies, such as opening and closing periods and
reporting across multiple ledgers simultaneously.
Overview of Accounting Setups
2-11
Note: Ledger Sets, page 6-1
Note: Make sure the ledger that is used for management reporting
purposes shares the same chart of accounts, accounting calendar/period
type combination, and currency as its associated ledger contained in
another accounting setup to obtain meaningful results when combining
the ledgers in a ledger set.
Note: Data access sets is a security feature in General Ledger that
controls read only and read and write access to data in ledgers and
ledger sets. It also limits access to specific balancing segment values or
management segment values assigned to a ledger or ledger set.
Note: Oracle General Ledger Security, page 6-2
Using Accounting Setups with No Legal Entities for Consolidation Purposes
If you have different ledger attributes across accounting setups that are not
standardized by chart of accounts, calendar, and currency, you can use the primary
ledger of another accounting setup that has no legal entities assigned to act as the
complete consolidation ledger. Perform balance transfer consolidations from the
respective ledgers in the different accounting setups to this consolidation ledger and
then enter consolidation adjustments directly in this ledger.
•
Using Ledgers in Other Accounting Setups for Consolidation, page
3-74
•
Introduction, page A-1, Accounting Setup Example.
Designing the Chart of Accounts
If your company uses legal entities and wants the ability to identify legal entities during
transaction processing, designate the balancing segment of the chart of accounts as the
legal entity or company segment. This allows you to identify transactions per legal
entity and take full advantage of the legal entity accounting features available, such as
intercompany accounting.
If you have multiple legal entities that use different charts of accounts, it is
recommended that you limit the number of value sets that you define for the balancing
segment. This allows you to share the same value set across multiple charts of accounts
and assign unique balancing segment values for each legal entity that is consistent
2-12
Oracle Financials Implementation Guide
across charts of accounts.
Feature Comparison by Accounting Setup
The number of legal entities assigned to an accounting setup affects different key
features available in the E-Business Suite. Review the features in the following table to
understand how different features are affected.
Accounting Setups
Feature
One Legal Entity
Assigned
Multiple Legal
Entities Assigned
No Legal Entities
Assigned
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 can
have autonomous
document sequencing
rules.
All legal entities in a
ledger must share the
same document
sequencing rules.
The ledger can have
autonomous
document sequencing
rules.
Multiple Legal Entity
Journals
No
Journal entries can
cross multiple legal
entities.
N/A
No legal entities exist.
Overview of Accounting Setups
2-13
3
Using Accounting Setup Manager
This chapter covers the following topics:
•
Creating Accounting Setups
•
Legal Entities Overview
•
Creating Accounting Setup Structures
•
Completing Accounting Options
•
Reporting Currencies
•
Ledger Balancing Segment Value Assignments
•
Subledger Accounting Options
•
Operating Units
•
Intercompany Accounts
•
Intracompany Balancing Rules
•
Sequencing
•
Secondary Ledgers
•
Completing Accounting Setup
Creating Accounting Setups
This section includes the following parts:
•
Accounting Setup Process, page 3-2
•
Accounting Setup Prerequisites, page 3-2
•
Accounting Setup Manager Pages, page 3-3
•
Accounting Setup Manager Checklist, page 3-6
Using Accounting Setup Manager
3-1
Accounting Setup Process
The accounting setup process consists of three main steps and are described in the
following table:
1.
Create an accounting setup structure.
2.
Update accounting options.
3.
Complete the accounting setup.
The following table provides the steps to create an accounting setup. Repeat these steps
for each accounting setup defined. The steps in bold italics are required.
Accounting Setup Manager Setup
Create Accounting
Structure
Complete Accounting
Options
Complete Accounting
Options (continued)
Assign legal entities
Complete ledger options.
Define and assign operating
units to the primary ledger.
Specify the ledger attributes
for the primary ledger.
Complete reporting
currencies.
Define intercompany
accounts.
Specify the ledger attributes
for one or more secondary
ledgers.
Assign balancing segment
values to legal entities
Define intracompany
balancing rules.
Assign reporting currencies.
Assign balancing segment
values to ledgers.
Define sequencing options.
Define subledger accounting
options.
Complete secondary ledger
setup steps.
Complete accounting setup.
Accounting Setup Prerequisites
Complete General Ledger Setup Steps
To create accounting setups, complete the General Ledger prerequisites, such as
defining a chart of accounts and accounting calendar.
3-2
Oracle Financials Implementation Guide
Note: Setting Up General Ledger, Oracle General Ledger User Guide
Define Additional Subledger Accounting Methods
To use additional subledger accounting methods other than Standard Accrual or
Standard Cash, define them using Subledger Accounting . When defining ledgers in
Accounting Setup Manager, assign a subledger accounting method if planning to use
Subledger Accounting to integrate data from transaction sources.
Perform this step for each subledger accounting method.
Note: Subledger Accounting Options, page 3-63
Accounting Setup Manager Pages
The Accounting Setup Manager provides the following pages:
•
Legal Entities Pages, page 3-4
•
Accounting Setups Pages, page 3-5
•
Accounting Options Pages, page 3-5
Using Accounting Setup Manager
3-3
Legal Entities Pages
The Legal Entities page allows you to do the following:
•
Create new legal entities and assign specific balancing segment values to legal
entities to help identify legal entities during transaction processing and reporting.
You can take full advantage of all of the legal entity-related features, such as
Intercompany Accounting.
•
Query existing legal entities, view their attributes, and make updates to the legal
entities .
•
Update balancing segment values assigned to legal entities.
•
Enter an end-date to deactivate a legal entity.
Note: Legal Entities Overview, page 3-12
3-4
Oracle Financials Implementation Guide
Accounting Setups Pages
You can perform the following in the Accounting Setups page:
•
Create new accounting setups.
•
Query existing accounting setups (named after the primary ledger) by legal entity
or ledger.
•
Update the accounting options for an accounting setup to modify the related setup
components.
•
Query existing legal entities and view their attributes.
•
Identify the associated primary ledger for any legal entity, ledger, operating unit,
and reporting currency.
•
View the status of accounting setups.
Accounting Options Pages
After creating an accounting setup structure, update the accounting options
immediately after creating the structure or later.
Using Accounting Setup Manager
3-5
Accounting Setup Manager Checklist
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.
3-6
Oracle Financials Implementation Guide
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
•
Overview, Oracle Financials Implementation Guide
•
Legal Entities Overview, page 3-12
Create Accounting Setup Structure
1.
Assign Legal Entities.
2.
Define accounting representations.
3.
•
Specify the ledger attributes for the primary ledger.
•
Optionally specify the ledger attributes for one or
more secondary ledgers.
•
Optionally assign one or more reporting currencies.
Save accounting structure.
Review setup structure before saving.
Repeat this step for each accounting setup.
Note: Creating Accounting Setup Structures, page 3-18
Using Accounting Setup Manager
3-7
Step Number
Required
Step
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.
Note: Ledger Options, page 3-30
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.
Note: Reporting Currencies, page 3-45
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
3-8
Oracle Financials Implementation Guide
Step Number
Required
Step
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.
Note: Ledger Balancing Segment Value Assignments,
page 3-61
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.
Note: Subledger Accounting Options, page 3-63
Step 8
Optional
Define operating units. If using an accounting setup that has
legal entities assigned, define operating units for your
primary ledger.
Note: Operating Units, page 3-63
Using Accounting Setup Manager
3-9
Step Number
Required
Step
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.
Note: Intercompany Accounts, page 3-65
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.
Note: Intracompany Balancing Rules, page 3-65
Step 11
Optional
Define Sequencing. Define accounting and reporting
sequencing options for ledgers and reporting currencies.
Repeat this step for each ledger.
Note: Defining Sequences, Oracle Financials
Implementation Guide
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.
Note: Primary to Secondary Ledger Mapping, page 3-82
3-10
Oracle Financials Implementation Guide
Step Number
Required
Step
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.
Note: Completing Accounting Setup, page 3-78
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.
•
Introduction, page 6-1, Additional General Ledger
Setup
•
General Ledger Setup Flowchart, Oracle General
Ledger User Guide
Using Accounting Setup Manager
3-11
Step Number
Required
Step
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.
•
Setting General Ledger Profile Options, Oracle
General Ledger User Guide
•
Overview of Setting User Profiles, Oracle Applications
System Administrator's Guide
•
Setting User Profile Options, Oracle Applications
System Administrator's Guide
Legal Entities Overview
Define one or more legal entities using Accounting Setup Manager's Legal Entities tab if
planning to assign legal entities to accounting setups.
3-12
Oracle Financials Implementation Guide
You can also define legal entities using Legal Entity Configurator. The Legal Entity
pages of Accounting Setup Manager are the same as the Legal Entity pages in Legal
Entity Configurator. The only difference is that you can assign balancing segment
values to legal entities using Accounting Setup Manager.
Note: See Overview, Oracle Financials Implementation Guide.
Balancing Segment Value Assignments
Assigning balancing segment values to legal entities is optional; however, 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. This is
particularly important for accounting setups that use the accounting setup where
multiple legal entities share the same primary ledger.
By assigning balancing segment values to legal entities, you can also take advantage of
all of the legal entity accounting features available, such as intercompany accounting.
If you do not assign any balancing segment values to your legal entities, then all
balancing segment values will be available for transaction processing.
Note: If using multiple value sets for the balancing segment across
charts of accounts, be sure to assign the correct value set to the legal
entity. Once assigned, you cannot remove the value set from legal
entities. However, there is no harm in assigning the wrong value set or
assigning balancing segment values for the wrong value set; the system
will ignore it during transaction processing.
Tip: If you are unsure about the value set to assign to each legal entity,
allow Accounting Setup Manager to do it. When assigning a legal entity
to an accounting setup, Accounting Setup Manager automatically
assigns the correct value set associated with the legal entity's primary
ledger and secondary ledger, if used.
Using Balancing Segment Values for Transaction Processing
Any balancing segment values assigned to a legal entity are automatically assigned to
the legal entity's ledger when completing the accounting setup.
When entering transactions using Oracle subledgers, use only the valid balancing
segment values that are assigned to the legal entity.
When entering journals in General Ledger, use only the valid balancing segment values
assigned to the ledger's legal entities and the ledger itself.
If no balancing segment values are assigned to the legal entities or ledgers, then all
Using Accounting Setup Manager
3-13
balancing segment values will be available to enter transactions and journal entries.
Special Note for Disabling Legal Entities: If disabling a legal entity by entering an end
date, also enter end dates for all assigned balancing segment values to prevent the use
of the balancing segment value.
Completing Accounting Setups
If you have an accounting setup with multiple legal entities assigned and specific
balancing segment values assigned to legal entities, you cannot complete the accounting
setup if the following violations exist:
•
overlapping balancing segment values assigned to the legal entities for the same
accounting setup
•
balancing segment values assigned to some, not all, of the legal entities assigned to
the same accounting setup
Note: Accounting Setup Manager does not check for overlapping
balancing segment values assigned to legal entities in different
accounting setups. Therefore, ensure that the correct balancing segment
values are assigned to legal entities in all accounting setups.
Note: Before the accounting setup is complete, delete and add
balancing segment values to legal entities at any time. After completing
the accounting setup, you cannot delete balancing segment values from
legal entities; you can end date the balancing segment value to prevent
the use of it.
Designating the Balancing Segment for a Chart of Accounts
It is recommended that you designate the balancing segment of the chart of accounts as
the legal entity or company segment. If there are multiple legal entities that use
different charts of accounts, limit the number of value sets you define for the balancing
segment to ease maintenance efforts. This allows you to share value sets across multiple
charts of accounts and assign unique balancing segment values for each legal entity that
is consistent across charts of accounts.
Defining Legal Entities Using Accounting Setup Manager
Use the Create Legal Entity page to create legal entities.
3-14
Oracle Financials Implementation Guide
Prerequisites
The following prerequisites are required only if planning to assign balancing segment
values to legal entities:
•
define a chart of accounts
•
define segment values for the balancing segment
To Create Legal Entities:
1.
Navigate to the Legal Entities page.
2.
Click Create Legal Entity.
3.
Enter all relevant fields for the Identification Information, Legal Address,
Additional Information, and Balancing Segment Value Assignments.
Using Accounting Setup Manager
3-15
4.
Click Apply or click Save and Add Details to enter additional information for the
legal entity that includes the following:
•
registrations
•
establishments
Note: Adding this additional information is not required for
creating an accounting setup.
Note: You can quickly create legal entities when creating an
accounting setup.
5.
In the Balancing Segment Value Assignments region, click Add Value Set.
6.
Select a value set from the list of values.
Only value sets that use the balancing segment value qualifier are displayed.
7.
To assign balancing segment values for the value set, click Add Balancing Segment
Value.
8.
Select one or more balancing segment values to assign to this legal entity. You
cannot assign parent values.
Note: Be sure to assign unique balancing segment values to each
legal entity. You cannot complete the accounting setup if multiple
legal entities assigned to the same accounting setup have
overlapping balancing segment values assigned or only some of the
legal entities have balancing segment values assigned.
9.
To make this value available for a limited time, enter a start date and/or an end
date.
Note: Start and end dates can be changed at any time.
10. Click Apply.
Note: Once you add a legal entity to an accounting setup and
complete the accounting setup, you cannot remove balancing
segment values from legal entities. You can only disable balancing
segment values by entering an end date.
3-16
Oracle Financials Implementation Guide
Updating Balancing Segment Values
Update the balancing segment value assignments for the legal entity in one of the
following pages:
•
Legal Entities tab
•
Accounting Options page after assigning legal entities to accounting setups
Add value sets and balancing segment values to legal entities at any time
Prerequisites
•
Define a legal entity.
•
Assign a legal entity to an accounting setup to automatically assign the value set
associated with the legal entity's ledger.
To update balancing segment values for legal entities:
1.
Navigate to the Legal Entities page and search for a legal entity.
2.
Select the Balancing Segment Value Assignments sub-tab.
3.
To update the balancing segment value assignment, click Update.
4.
Add one or more value sets.
Once assigned, you cannot remove the value set.
If you accidentally assign the wrong value set that is not associated with any of the
legal entity's ledgers, the invalid value set will be ignored during transaction
processing.
5.
Add or remove balancing segment values.
If the legal entity is assigned to a complete accounting setup, you cannot remove its
balancing segment values. You can disable them by entering an end date.
6.
Click Apply.
To update balancing segment values for legal entities that are assigned to accounting setups:
1.
Navigate to the Accounting Options page for an accounting setup.
2.
In the Legal Entities region, select the Update Balancing Segment Values icon for a
legal entity.
The value set associated with one or more of the legal entity's ledgers will be
Using Accounting Setup Manager
3-17
automatically assigned.
3.
Add or remove balancing segment values for the appropriate value set.
If multiple value sets are assigned to the legal entity, assign the same balancing
segment value across value sets.
Creating Accounting Setup Structures
The accounting setup structure defines the framework or skeleton of an accounting
setup.
Accounting Setup Manager Prerequisites Checklist
The following table lists the prerequisites for accounting setup manager.
3-18
Step
Required
Description
Application or
Feature Name
Reference
1. Review Oracle
Financials
Implementation
Guide
Required
Carefully
consider the
number of
accounting
setups that you
need.
Accounting
Setup Manager
Oracle Financials
Implementation
Guide
2. Define chart of
accounts
Required
Define at least
one chart of
accounts. For
ease in assigning
balancing
segment values
to legal entities,
it is
recommended
that all charts of
accounts should
share the same
value set for the
balancing
segment.
General Ledger
Oracle
Applications
Flexfields Guide,
Oracle General
Ledger User Guide
Oracle Financials Implementation Guide
Step
Required
Description
Application or
Feature Name
Reference
3. Define
accounts
Required
Define the
following
natural accounts
that will be used
to create your
ledgers:
General Ledger
Oracle General
Ledger User Guide
•
Retained
Earnings
Account
•
Suspense
Account, if
you want to
enable
suspense
posting
•
Cumulative
Translation
Adjustment
(CTA)
Account
•
Non-Postabl
e Net
Income
Account, if
you plan to
enable
average
balance
processing
•
Reserve for
Encumbranc
e Account, if
you plan to
use
encumbranc
e accounting
or
budgetary
control
Using Accounting Setup Manager
3-19
3-20
Step
Required
Description
Application or
Feature Name
Reference
4. Define
cross-validation
rules
Optional
You can define
multiple
cross-validation
rules per chart of
accounts to
prevent invalid
combinations
when entering
accounts during
setup and data
entry.
General Ledger
Oracle General
Ledger User Guide
5. Define chart of
accounts
mapping
Conditionally
Required
If you plan to
use a secondary
ledger that uses
a different chart
of accounts from
the primary
ledger, define a
chart of accounts
mapping. The
mapping
provides
instructions on
how to transfer
data between
disparate charts
of accounts.
General Ledger
Oracle General
Ledger User Guide
6. Define period
types
Optional
If you want to
use period types
that are not
installed with
General Ledger,
define the period
types that you
will use for your
accounting
calendar.
General Ledger
Oracle General
Ledger User Guide
7. Define
accounting
calendars
Required
Define one or
more accounting
calendars.
General Ledger
Oracle General
Ledger User Guide
Oracle Financials Implementation Guide
Step
Required
Description
Application or
Feature Name
Reference
8. Define
transaction
calendars
Conditionally
Required
If you plan to
use average
balance
processing,
define a
transaction
calendar to
specify valid
business days
used by your
organization.
General Ledger
Oracle General
Ledger User Guide
9. Define or
enable
currencies
Required
Define or enable
one or more
currencies.
General Ledger
Oracle General
Ledger User Guide
10. Define
currency
conversion rate
types and rates
Required
If you plan to
enter foreign
currency
transactions,
define
conversion rate
types and
conversion rates.
General Ledger
Oracle General
Ledger User Guide
11. Define
journal reversal
criteria
Optional
Define a journal
reversal criteria
set that you will
assign to each
ledger to have
journals for that
ledger
automatically
reversed.
General Ledger
Oracle General
Ledger User Guide
Using Accounting Setup Manager
3-21
3-22
Step
Required
Description
Application or
Feature Name
Reference
12. Define
jurisdictions
Optional
If you do not
want to use the
jurisdictions that
are seeded,
define a
jurisdiction. The
jurisdiction is
used to assign a
territory to a
legal entity.
Legal Entity
Configurator
Oracle Financials
Implementation
Guide
13. Define legal
entities
Optional
Create a
complete
definition of
your legal entity.
It is
recommended
that you assign
specific
balancing
segment values
to legal entities
to help you
secure and
identify
transactions by
legal entity.
Legal Entity
Configurator or
Accounting
Setup Manager
Oracle Financials
Implementation
Guide
14. Define
subledger
accounting
methods
Optional
If you do not
want to use
Standard
Accrual or
Standard Cash
as your ledger's
default
accounting
method, define
subledger
accounting
methods using
Oracle Subledger
Accounting.
Oracle Subledger
Accounting
Oracle Subledger
Accounting
Implementation
Guide
Oracle Financials Implementation Guide
Creating an Accounting Setup
Creating an accounting setup includes the following steps:
•
Assigning Legal Entities, page 3-23
•
Defining Accounting Representations, page 3-23
•
Saving the Accounting Structure, page 3-26
Assigning Legal Entities
Assigning legal entities to accounting setups is optional. Assign legal entities if you are
planning to use Oracle financial subledgers that require a legal entity context for
transaction processing. Also, assign legal entities if you are planning to use legal entity
specific features, such as intercompany accounting.
To assign legal entities:
•
In the Assign Legal Entities page, assign legal entities.
If creating legal entities from the Assign Legal Entities page, you are not creating a
complete definition of your legal entity. Complete the definition of the legal entity
later from the Legal Entities tab.
Defining Accounting Representations
Specify the ledger attributes for the primary ledger. The primary ledger acts as the
primary accounting representation. Optionally specify the ledger attributes for one or
more secondary ledgers to represent primary ledger transactions in a different chart of
accounts, calendar, currency, subledger accounting method, and/or ledger processing
options.
To maintain additional currency representations of primary or secondary ledgers,
assign reporting currencies to them.
Using Accounting Setup Manager
3-23
Note: Add secondary ledgers and reporting currencies to accounting
setups at any time. Before completing the accounting setup, you can
delete secondary ledgers and reporting currencies. After completing the
accounting setup, you can only disable the conversion of reporting
currencies and secondary ledgers.
•
Adding Secondary Ledgers, page 3-79
•
Adding Reporting Currencies, page 3-58
•
Disabling the Conversion of Secondary Ledgers, page 3-81
•
Disabling the Conversion of Reporting Currencies, page 3-60
To define accounting representations:
1.
Navigate to the Define Accounting Representations page from the Assign Legal
Entities page.
2.
Specify primary ledger attributes for the required fields.
Note: You cannot assign a calendar if it contains gaps between
periods or it does not have a full fiscal year defined.
3.
3-24
Optionally assign a subledger accounting method if planning to use Subledger
Accounting to integrate data from Oracle financial subledgers or external feeder
systems.
Oracle Financials Implementation Guide
Note: Once you assign a subledger accounting method, you must
always have a subledger accounting method assigned. You can
change the subledger accounting method at any time.
4.
Optionally, specify the following secondary ledger attributes:
•
name
•
chart of accounts
•
accounting calendar
•
currency
•
subledger accounting method
Note: To define a subledger level secondary ledger, assign a
subledger accounting method to both the primary ledger and
to this secondary ledger.
Note: To define an adjustments only secondary ledger, the
chart of accounts, accounting calendar, and currency must be
the same as the primary ledger. If you only want to use the
Adjustments Only secondary ledger for manual adjustments in
General Ledger, do not assign a subledger accounting method.
To use the Adjustments Only secondary ledger for both manual
and automated adjustments from Subledger Accounting, assign
a subledger accounting method to both the primary and
secondary ledger.
5.
Specify a Data Conversion Level.
Note: Data Conversion Levels, page 3-67
If assigning a balance level secondary ledger that uses a different currency from the
primary ledger, a balance level reporting currency is automatically assigned to the
primary ledger if you did not create one. For example, if the primary ledger's
currency is EUR and you assign a balance level secondary ledger whose currency is
CAD, the system automatically creates a balance level reporting currency for the
CAD currency. This reporting currency is used as the source representation when
transferring CAD balances to this secondary ledger.
6.
Optionally, select the Add Reporting Currency icon.
Using Accounting Setup Manager
3-25
7.
In the Add Reporting Currency page, enter a currency and one of the following
currency conversion levels:
•
Balance: maintains translated balances
Note: The currency of the balance level reporting currency
cannot be the same currency as its source ledger.
•
Journal: maintains journals and balances in the reporting currency using the
General Ledger Posting program
•
Subledger: maintains a currency representation of the source ledger's subledger
journals, General Ledger journals, and balances using both Subledger
Accounting and the General Ledger Posting program.
Note: The subledger level reporting currency requires a
subledger accounting method to be assigned to the primary
ledger.
Note: You cannot assign subledger level reporting currencies to
secondary ledgers.
8.
Click Apply.
Note: Reporting Currencies, page 3-45
Saving the Accounting Structure
Carefully review and save the accounting setup structure to finish creating the
framework of the accounting setup before proceeding to the Accounting Options.
Once you save the accounting setup structure, you cannot change the following:
•
3-26
chart of accounts, accounting calendar, or currency of the primary ledger and
secondary ledger
Oracle Financials Implementation Guide
To save the accounting structure:
1.
Navigate to the Save Accounting Structure page from the Define Accounting
Representations page.
2.
Review the accounting setup structure.
3.
Click Finish.
Completing Accounting Options
The Accounting Options page is displayed in a checklist format to complete the relevant
setup steps to make the accounting setup ready for entering transactions and journals.
Before entering transactions, complete all of the required setup steps for each
accounting setup. If using secondary ledgers, complete all of the required setup steps
for the primary ledger before completing the setup steps for the secondary ledgers
Navigate to the Accounting Options page in one of the following ways:
•
After saving the accounting setup structure, click Define Accounting Options.
•
Query an existing accounting setup from the Accounting Setups page, and then
select the Update Accounting Options icon.
The name of the Accounting Options page is named after the primary ledger, such as
Accounting Options: <Name of primary ledger>
Related Topics
Updating Legal Entities, page 3-28
Using Accounting Setup Manager
3-27
Primary Ledger Setup Steps, page 3-29
Secondary Ledger Setup Steps, page 3-29
Updating Legal Entities
The Legal Entities region of the Accounting Options page allows you to do the
following:
•
view legal entities and make changes
•
update legal entities
•
add legal entities
•
remove legal entities from one accounting setup and assign them to another
accounting setup
Once the accounting setup is complete, you cannot remove any of its legal entities.
To disable a legal entity, end-date it.
Once you end-date a legal entity, you cannot enter new subledger transactions
against the legal entity. You can use the legal entity's balancing segment values to
enter manual journal entries in General Ledger. This allows you to enter adjusting
entries during the accounting close.
If you end-date a legal entity, end date its balancing segment value to prevent the
use of the balancing segment value for journal entries.
•
assign unique balancing segment values to legal entities
Note: If you use balancing segment values to represent legal
entities, do not assign the same balancing segment values to
multiple legal entities that are assigned to different accounting
setups. Accounting Setup Manager will not prevent you from
assigning the same values to legal entities in different accounting
setups.
•
remove balancing segment values
You can only remove balancing segment values before the accounting setup is
complete. A balancing segment value removed from one legal entity can be
assigned to another legal entity within the same or different accounting setup
Note: If the accounting setup is complete, you cannot remove any
balancing segment values from the accounting setup's legal entities.
To disable the balancing segment value, end-date it.
3-28
Oracle Financials Implementation Guide
You can query historical transactions and report on the end-dated
balancing segment value
•
end-date balancing segment values
You can end-date balancing segment values at any time. If you end-date a balancing
segment value, you cannot enter new transactions with dates after the end-date.
You can query historical transactions and report on the end-dated balancing
segment value.
Note: If you end-date a legal entity, end-date the balancing
segment values that are assigned to the legal entity. This prevents
users from entering transactions using a balancing segment value
that is associated with an inactive legal entity.
Note: Legal Entities Overview, page 3-12
Primary Ledger Setup Steps
The primary ledger setup steps are as follows:
•
Ledger Options, page 3-30, required
•
Reporting Currencies, page 3-45, conditionally required
•
Ledger Balancing Segment Value Assignments, page 3-61
•
Subledger Accounting Options, page 3-63
•
Operating Units, page 3-63
•
Intercompany Accounts, page 3-65
•
Intracompany Balancing Rules, page 3-65
Note: Accounting Setup Manager Checklist, page 3-6
Secondary Ledger Setup Steps
The same setup steps for the primary ledger also apply to secondary ledgers. The
following setup step applies only to secondary ledgers:
•
Primary to Secondary Ledger Mapping, page 3-82, required
Using Accounting Setup Manager
3-29
Note: Add secondary ledgers at any time after completing the ledger
options for the primary ledger by clicking Add Secondary Ledgers.
•
Adding Secondary Ledgers, page 3-79
•
Accounting Setup Manager Checklist, page 3-6
Ledger Options
A ledger determines the chart of accounts, accounting calendar, currency, subledger
accounting method, and ledger processing options for each company, legal entity, or
group of companies and legal entities.
Each accounting setup requires a primary ledger that acts as the main record-keeping
ledger for none or one or more legal entities that use your main chart of accounts,
accounting calendar, subledger accounting method, and currency to record and report
on all of your financial transactions.
To maintain an additional accounting representation, use secondary ledgers.
To maintain an additional currency representation, use reporting currencies.
•
Secondary Ledgers, page 3-66
•
Reporting Currencies, page 3-45
Ledger Overview
Reporting Currencies
To report on account balances in multiple currencies, assign reporting currencies to
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, and ledger processing options as their source ledger.
Reporting currencies can be maintained at one of the following currency conversion
levels:
3-30
•
Subledger
•
Journal
•
Balance
Oracle Financials Implementation Guide
Note: Reporting Currencies, page 3-45
Assigning Ledgers to Accounting Setups
When creating an accounting setup structure, specify the ledger attributes for the
primary ledger and optionally one or more secondary ledgers.
The ledgers assigned when creating the accounting setup structure are not completely
defined; complete the ledger options for each ledger to complete the ledger definition.
Using Ledgers to Perform Accounting
To use ledgers to perform accounting, complete the following:
•
Complete the ledger options for each ledger using the Accounting Options page.
•
Complete the accounting setup.
•
Assign the ledger to the GL Ledger Name profile option for each Subledger
responsibility to grant access to ledgers used by Oracle Subledgers.
•
Assign the appropriate data access set to the profile option GL: Data Access Set for
each General Ledger responsibility to grant access to ledgers used by General
Ledger.
Note: Setting General Ledger Profile Options, Oracle General Ledger User
Guide
Enabling Average Balance Processing
If enabling average balance processing for the ledger, General Ledger tracks and
maintains average and end–of–day balances.
Note: You can only enable average balances or average balance
consolidation for your secondary ledger if average balances or average
balance consolidation is also enabled for its primary ledger
Note: You cannot enable average balances if your ledger is enabled for
secondary segment tracking.
Note: Overview of Average Balancing Processing, Oracle General Ledger
User Guide
Using Accounting Setup Manager
3-31
Completing Ledger Options
This section describes the ledger options that must be completed.
Prerequisites
The following prerequisites are needed to complete the ledger options for ledgers:
•
(Required) assign one or more ledgers to an accounting setup
•
define the following accounts:
•
(Required) Retained earnings account
•
Suspense account to enable suspense posting
•
Cumulative Translation Adjustment account to translate balances
•
(Recommended for Subledger Accounting) Rounding Differences account to
use a specific account to track small currency differences during currency
conversion
•
(Required for Average Balances) Non-Postable Net Income account to use
average balance processing
This account captures the net activity of all revenue and expense accounts when
calculating the average balance for retained earnings.
•
Reserve for Encumbrance account to use Encumbrance Accounting
•
(Recommended for Subledger Accounting) Entered Currency Balancing
Account to use Subledger Accounting to balance foreign currency subledger
journals by the entered currency and balancing segment value
•
Ledger Currency Balancing Account to use Subledger Accounting to balance
subledger journals by the ledger currency and balancing segment value
•
(Required for Average Balances) Define transaction calendars to use average
balance processing. Transaction calendars ensure journal entries created in General
Ledger and Oracle Subledger Accounting, if used, are only booked on valid
business days.
•
Define Journal Reversal Criteria to automatically reverse journals in General Ledger
To complete ledger options:
1.
Navigate to the Accounting Options page in one of the following ways:
1.
3-32
After saving the accounting setup structure, click Define Accounting Options.
Oracle Financials Implementation Guide
2.
Query an existing accounting setup from the Accounting Setups page and then
choose the Update Accounting Options icon.
2.
Click the Update Ledger Options icon.
3.
Enter all relevant fields for the following pages:
•
Ledger Definition
The following table provides descriptions for selected fields in the Ledger
Definition page.
Ledger Definition Page
Field
Description
Short Name
Ledger short name; appears in the title bar of windows
and in some lists of values; can be changed at any time.
Currency
Main transaction currency for this ledger.
Note: If the ledger's currency does not match the
functional currency as defined by FASB #52 (U.S.)
and you need to report financial results in your
functional currency, consider using General Ledger
Translation or Reporting Currencies.
Note: Reporting Currencies, page 3-45 and
Reporting Currencies, Oracle General Ledger User
Guide.
First Ever Opened Period
First period that can be opened for this ledger. This
cannot be changed after you open the first period.
Using Accounting Setup Manager
3-33
Field
Description
Number of Future
Enterable Periods
Number of future periods to allow for journal entry
within this ledger. General Ledger automatically
assigns a status of Future Entry to accounting periods
following the latest open period in the calendar based
on the number of future enterable periods defined here.
If you change the number of future enterable periods
for the ledger, General Ledger does not change
additional periods to the Future Enterable status until a
new period is opened.
Note: You can enter journal batches for a future
enterable period, but you cannot post the batches
until a period is opened.
Tip: Minimize the number of future enterable
periods to prevent users from accidentally entering
journal entries in an incorrect period.
Subledger Accounting
Method
Subledger accounting method for this ledger; defined in
Subledger Accounting.
Entered Currency
Balancing Account
Posts differences from out-of-balance foreign currency
journals in subledgers.
Use Cash Basis Accounting
This option pertains only to Oracle Payables. Payables
uses this option for its Mass Additions Create program
for determining expense account information.
Note: Payables Options, Oracle Payables User Guide
3-34
Balance Subledger Entries
by Ledger Currency
Enables balancing of subledger journal entries by ledger
currency and balancing segment value
Ledger Currency Balancing
Account
Posts out-of-balance subledger journal entries to this
account. This account is only required if the Balance
Subledger Entries by Ledger Currency option is
selected.
Oracle Financials Implementation Guide
•
Field
Description
Additional Information
Stores descriptive information about this ledger if the
descriptive flexfield for this page has been enabled.
Ledger Options
The following table provides descriptions for selected fields in the Ledger
Options page.
Ledger Options Page
Field
Description
Retained Earnings Account
Net balance of all income and expense accounts from
the prior year are posted against the retained earnings
account when the first period of a fiscal year is opened
in General Ledger.
The balancing segment and the segment nominated as
the secondary tracking segment act as placeholders for
this account. General Ledger automatically inserts the
appropriate value when calculating retained earnings.
Track by Secondary
Segment
If you assigned the Secondary Tracking Segment
qualifier to a segment in your chart of accounts, you can
enable this option to track more detail when General
Ledger performs year-end closing, translation, and
revaluation activities.
Note: You cannot enable both the Track by
Secondary Segment and Average Balances options.
Note: Secondary Tracking Segment, Oracle General
Ledger User Guide
Using Accounting Setup Manager
3-35
Field
Suspense Account
Description
Allows suspense posting of out-of-balance journal
entries.
If you have multiple companies or balancing entities
within a ledger, General Ledger automatically creates a
suspense account for each balancing entity.
You can also define additional suspense accounts to
balance journal entries from specific sources and
categories using the Suspense Accounts window.
Note that if you update the suspense account for the
ledger, the default suspense account is updated in the
Suspense Accounts window. Likewise, if you update
the default account in the Suspense Accounts window,
the account will be updated for the ledger.
If you do not enter a suspense account, you can only
post journal entries that are balanced.
Note: Suspense Accounts, Oracle General Ledger User
Guide
3-36
Oracle Financials Implementation Guide
Field
Description
Rounding Differences
Tracking Account
In General Ledger, this account tracks rounding
differences that occur during currency conversions. If
you do not enter an account, General Ledger will post
rounding differences to the journal line with the largest
amount.
In Subledger Accounting, this account tracks currency
conversion rounding differences that cause unbalanced
journal entries. Subledger Accounting will issue an
error if it encounters a subledger journal entry that is
unbalanced because of rounding differences and an
account is not specified.
If your foreign currency transactions include different
balancing segment values to represent multiple
companies, General Ledger and Subledger Accounting
will automatically create a rounding differences account
for each balancing segment value.
Note: A rounding differences account is
recommended for Subledger Accounting.
Note: Subledger Accounting offers features for
controlling how the accounting program deals with
rounding differences. For more details see Oracle
Subledger Accounting Implementation Guide.
Using Accounting Setup Manager
3-37
Field
Description
Enable Intracompany
Balancing
Posts out-of-balance intracompany journals (debits do
not equal credits for a particular company or balancing
segment value within the same ledger)
If you enable this option, you must define
Intracompany Balancing Rules when you complete your
Accounting Options to provide instructions on how to
automatically balance intracompany journals against
balancing accounts you specify.
If you do not choose to enable intracompany balancing,
you can only post intracompany journals that balance
by balancing segment.
Note: For accounting setups with multiple legal
entities, enabling intracompany balancing enables
both intercompany and intracompany balancing for
a journal that includes multiple legal entities.
3-38
Oracle Financials Implementation Guide
•
Intercompany Balancing, Oracle Financials
Implementation Guide
•
Intracompany Balancing Rules, Oracle Financials
Implementation Guide
Field
Description
Enable Journal Approval
Use General Ledger's Journal Approval feature for the
ledger.
When Journal Approval is enabled and a journal entry's
journal source requires approval, the journal must be
approved by the appropriate level of management
before any further action can be taken, such as posting.
If Journal Approval is not enabled, approval is not
required, even if the journal source requires approval.
Note: When you enable Journal Approval, only
journal entries that use actual amounts and the
Manual journal source will automatically have
Journal Approval enabled. To require journal
approval for budget or encumbrance journals or for
journals using a source other than Manual, you must
select the Require Journal Approval check box for the
appropriate journal source in the Journal Sources
window in Oracle General Ledger.
Note: Setting Up Journal Approval, Oracle General
Ledger Implementation Guide
Journal Reversal Criteria
Set
Automatically reverses this ledger's journals based on
the Journal Reversal Criteria Set assigned.
Note: Assigning Journal Reversal Criteria, Oracle
General Ledger User Guide
Default Period End and
Average Rate Types
Used to translate actual account balances
Note: The rate types specified for the ledger are
used to assign default rate types for any balance level
reporting currencies assigned to this ledger. You can
override the default rate types for each balance level
reporting currency.
Using Accounting Setup Manager
3-39
Field
Description
Cumulative Translation
Adjustment Account
This account is necessary to translate the ledger's
currency balances into a balance level reporting
currency. For journal level reporting currencies, this
account is used when revaluing foreign currency
denominated balances.
General Ledger automatically posts any net adjustments
resulting from currency translation to this account, in
accordance with FAS 52 (U.S.) and IAS 21. If you have
multiple companies or balancing entities within a
ledger, General Ledger automatically creates a
translation adjustment account for each company or
balancing entity.
The difference in revaluation adjustments between the
ledger and its journal level reporting currencies are
recorded to the cumulative translation adjustment
account.
The balancing segment and the nominated secondary
tracking segment act as placeholders in this field.
General Ledger automatically inserts the appropriate
value when translation or revaluation is run.
Set the account type of your Cumulative Translation
Adjustment account to Owner's Equity to create a
translation adjustment on your balance sheet. Set the
account type of this account to Revenue or Expense to
create a translation gain/loss on your income statement.
•
•
Translating Balances, Oracle General Ledger User
Guide
•
Reporting Currencies, page 3-45
Advanced Options
The following table provides descriptions for selected fields in the Advanced
Options page.
3-40
Oracle Financials Implementation Guide
Advanced Options Page
Field
Description
Journal Reconciliation
Allows you to reconcile transactions in accounts that
should balance to zero, such as a suspense account, or a
Value Added Tax control account.
Note: Entering Journals, Oracle General Ledger User
Guide
Require Budget Journals
Allows you to require budget journals for all budgets. If
using budgetary control, General Ledger already
requires you to create budget journals for your funding
budget. If you want to require budget journals for all
budgets, choose this option.
Reserve for Encumbrance
Account
Allows encumbrance accounting for the ledger;
required for budgetary control.
If you enter an out-of-balance encumbrance entry,
General Ledger automatically posts the difference
against the account you specify here. If you have
multiple companies or balancing entities within a
ledger, General Ledger automatically creates a Reserve
for Encumbrance account for each balancing entity.
When you enter a Reserve for Encumbrance account
without enabling budgetary control, you can still enter
manual encumbrances via journal entry, but you cannot
generate encumbrances from requisitions and purchase
orders.
Note: Overview of Encumbrance Accounting, Oracle
General Ledger User Guide
Using Accounting Setup Manager
3-41
Field
Description
Enable Average Balances
Allows you to use the ledger for average balance
processing. In an average balances ledger, your
standard and average balances are tightly linked. Each
time you post a journal entry, Oracle General Ledger
updates both the standard (period-based) balances and
corresponding average balances for your balance sheet
accounts.
If enabled, enter data in the following fields that are
displayed:
•
Net Income Account: Captures the net activity of all
revenue and expense accounts when calculating the
average balance for retained earnings
•
Rate Type: Enter any daily conversion rate type
except User for translating average balances.
General Ledger automatically translates
period-average-to-date balances. You can also
choose to have translation maintain end-of-day,
quarter-average-to-date, and year-average-to-date
balances by selecting the appropriate check boxes.
•
Transaction Calendar: Ensures that journal entries
created in General Ledger and Subledger
Accounting are posted only to valid business days;
not required for average balance consolidation
ledgers.
Note: You can only enable average balance
processing for those ledgers that require it. This
ensures that you incur no additional overhead unless
you need average balance processing enabled.
Note: You can only enable average balances for a
secondary ledger if its primary ledger has average
balances or average balance consolidation enabled.
Note: You cannot enable average balances if your
ledger is enabled for secondary segment tracking.
3-42
Oracle Financials Implementation Guide
Field
Description
Note: Overview of Average Balance Processing,
Oracle General Ledger User Guide
Enable Average Balance
Consolidation
Select this option if you do not want to maintain a link
between standard and average balances to allow you to
update standard and average balances independently.
Many users use this type of ledger for consolidation
purposes to allow them to consolidate standard and
average balances separately in order to make
adjustments to those balances independently.
Note: You can only enable average balance
consolidation for a secondary ledger if its primary
ledger has average balances or average balance
consolidation enabled.
Note: Consolidation, Oracle General Ledger User
Guide
4.
Click Next to review your ledger options and then click Finish to complete your
ledger definition.
•
Updating Ledger Options, page 3-44
•
Defining Calendars, Oracle General Ledger User Guide
•
Defining Currencies, Oracle General Ledger User Guide
•
Opening and Closing Accounting Periods, Oracle General Ledger
Implementation Guide
•
Using Budgetary Control and Online Funds Checking, Oracle
General Ledger User Guide
•
Define Budgets, Oracle General Ledger User Guide
•
GL Ledger Name Profile Option, Oracle General Ledger User Guide
Using Accounting Setup Manager
3-43
•
Subledger Accounting Options, page 3-63
Updating Ledger Options
After the ledger has a complete status, you can only update some ledger options.
The following ledger options cannot be changed:
•
Currency
•
Chart of Accounts
•
Accounting Calendar
•
Period Type
•
Average Balance Processing
•
Net Income Account
•
Transaction Calendar
Note: The Track by Secondary Segment option cannot be changed once
the Accounting Setup status is complete.
Note: The First Ever Opened Period cannot be changed once the first
period is opened for the ledger.
Prerequisites
•
The ledger options must have a status of Complete.
To make changes to ledgers:
3-44
1.
In the Accounting Setups page, search for accounting setups by ledger.
2.
Navigate to the Accounting Options page.
3.
To navigate to the ledger definition pages, click the Update icon for the ledger; or
click the ledger name link and then the Update button.
4.
Make changes to the ledger and then click Finish.
Oracle Financials Implementation Guide
Reporting Currencies
Reporting currencies express the accounting in your primary and/or secondary ledgers
in an additional currency representation. For example, the USD primary ledger balances
can be expressed in CAD or Yen by assigning a balance level reporting currency to the
primary ledger.
Unlike secondary ledgers, reporting currencies can only differ by currency from their
source ledger. They must share the same chart of accounts, accounting calendar/period
type combination, subledger accounting method, and ledger processing options as their
source ledger (primary or secondary ledger).
Reporting currencies can be maintained at three different currency conversion levels:
•
Subledger: Maintains a currency representation of your subledger journals, General
Ledger journal entries, and balances.
When using the subledger level reporting currency, you must define subledger
accounting rules using Subledger Accounting. These rules provide instructions on
how to convert subledger data entered into the source ledger to one or more
subledger level reporting currencies.
You must also define journal conversion rules. General Ledger Posting uses the
journal conversion rules to automatically replicate specific journals, such as manual
journal entries, to one or more subledger level reporting currencies.
Note: Subledger level reporting currencies can only be assigned to
primary ledgers, not secondary ledgers.
•
Journal: Maintains General Ledger journal entries and balances in another currency
representation.
Journal level reporting currencies are maintained using the General Ledger Posting
Program. Every time a journal is posted in the source ledger, the journal is
automatically converted to the respective journal level reporting currency based on
the journal conversion rules defined.
•
Balance: Maintains balances in another currency.
The General Ledger Translation program is used to convert balances from the
source ledger to the balance level reporting currency. When you run Translation in
your primary or secondary ledger and specify a target currency, the translated
balances are reflected in the balance level reporting currency.
Note: If a balance level reporting currency is not assigned to the
ledgers in the accounting setup, a balance level reporting currency
is automatically created the first time Translation is run. The name
Using Accounting Setup Manager
3-45
of the balance-level reporting currency is the same as its source
ledger except its currency code, such as (USD), is appended to the
end of its name.
Note: The subledger level and journal level reporting currencies act
similarly to ledgers. You must open and close the periods for these
reporting currencies before you can enter transaction and journal
entries. You can also enable journal approval for these reporting
currencies if planning to enter manual journal entries directly to these
reporting currencies.
Assigning Reporting Currencies to Ledgers
If reporting currencies are assigned to ledgers when creating an accounting setup
structure, the status for the Reporting Currencies step is In Process. To complete the
accounting setup, update the reporting currency and complete the conversion options
for all reporting currencies that are assigned.
If no reporting currencies are assigned to the ledgers when creating the accounting
setup structure, the Reporting Currencies step is not required and the status is Not
Started.
Add reporting currencies to accounting setups at any time.
Note: Adding Reporting Currencies, page 3-58
To complete reporting currencies:
1.
3-46
In the Accounting Options page, click the Update icon for a reporting currency.
Oracle Financials Implementation Guide
2.
Update each reporting currency.
3.
Enter all relevant fields for the reporting currency.
The following table describes selected options for balance level reporting
currencies.
Selected Options for Balance Level Reporting Currency
Field
Description
Currency Conversion Level
Balance defaults to indicate that this is a balance level
reporting currency; cannot be changed
Period End Rate Type
Translates actual account balances; defaults from the source
ledger; can be changed
Period Average Rate Type
Translates actual account balances; defaults from the source
ledger; can be changed
The following table describes selected options for journal and subledger level
reporting currencies.
Selected Options for Journal and Subledger Level Reporting Currencies
Field
Description
Currency Conversion Level
Indicates that this is a journal level or subledger level
reporting currency
Status
If disabled, data is no longer automatically converted to the
reporting currency.
Note: Disabling the Conversion of Reporting
Currencies, page 3-60
First Ever Opened Period
The first period that can be opened for this reporting
currency; defaults from the source ledger
Using Accounting Setup Manager
3-47
Field
Description
Rounding Differences
Tracking Account
In General Ledger, this account tracks rounding differences
that occur during currency conversions. If you do not enter
an account, General Ledger will post rounding differences
to the journal line with the largest amount.
If your foreign currency transactions include different
balancing segment values to represent multiple companies,
General Ledger will automatically create a rounding
differences account for each balancing segment value.
Warning: Any changes you make to the Rounding
Differences Account in the source ledger will
automatically be applied to all of its journal and
subledger level reporting currencies. If you have a
different rounding differences account assigned to your
reporting currencies and you change the rounding
differences account for the source ledger, such as
removing one, changing one, or adding one, be sure to
also update the rounding differences account for each of
the reporting currencies.
3-48
Oracle Financials Implementation Guide
Field
Description
Enable Journal Approval
Use General Ledger's Journal Approval feature for this
reporting currency.
When enabled, Journal Approval only applies to journals
that are entered directly to the reporting currency, such as
manually entered journals or journals loaded directly to the
reporting currency. Journal Approval will not apply to
journals that were automatically converted from the source
ledger by General Ledger Posting.
Note: When you enable Journal Approval, only journal
entries that use actual amounts and the Manual journal
source will automatically have Journal Approval
enabled. To require journal approval for budget or
encumbrance journals or for journals using a source
other than Manual, you must mark the Require Journal
Approval check box for the appropriate journal source
in the Journal Sources window in Oracle General
Ledger.
Note: Setting Up Journal Approval, Oracle General
Ledger User Guide
Using Accounting Setup Manager
3-49
Field
Description
Rounding Differences
Tracking Account
In General Ledger, this account tracks rounding differences
that occur during currency conversions. If you do not enter
an account, General Ledger will post rounding differences
to the journal line with the largest amount.
If your foreign currency transactions include different
balancing segment values to represent multiple companies,
General Ledger will automatically create a rounding
differences account for each balancing segment value.
Warning: Any changes you make to the Rounding
Differences Account in the source ledger will
automatically be applied to all of its journal and
subledger level reporting currencies. If you have a
different rounding differences account assigned to your
reporting currencies and you change the rounding
differences account for the source ledger, such as
removing one, changing one, or adding one, be sure to
also update the rounding differences account for each of
the reporting currencies.
Default Rate Type
The conversion rate type used to retrieve exchange rates for
converting transactions from the source ledger to this
reporting currency
This differs from the conversion rate type specified when
entering a transaction. Oracle Applications use the
transaction conversion rate type to retrieve exchange rates
for converting entered amounts from the transaction
currency to the ledger currency. Alternatively, users can
specify their own rate type.
The Default Rate Type works with the Retain Transaction
Rate Type field. If you choose not to retain the same rate
type used to convert the original transaction, the Default
Rate Type is used instead.
Note: Defining Conversion Rate Types, Oracle General
Ledger User Guide
3-50
Oracle Financials Implementation Guide
Field
Description
Retain Transaction Rate
Type
Controls the conversion rate type that should be used to
convert transaction currency amounts from the source
ledger to this reporting currency.
•
If Yes is selected, then the conversion rate type used to
enter the transaction in the source ledger will be
retained when converting the same transaction from
the transaction currency amount to this reporting
currency.
Note: If the original transaction rate type is User or
EMU Fixed, the default rate type assigned to the
reporting currency will always be used.
•
If No is selected, then the default rate type specified in
the Default Rate Type field will be used to convert
transactions to this reporting currency.
The Retain Transaction Rate Type option is ignored for
the following reasons:
•
An EMU fixed rate relationship exists between the
transaction currency and the currency of the
reporting currency. In this case, the EMU Fixed
conversion rate type is used.
•
The transaction currency is the same as the
currency of the source ledger, such as the primary
or secondary ledger. In this case, a conversion rate
type does not exist for the transaction and the
default rate type is used.
•
The transaction currency is the same as the
currency of the reporting currency. In this case,
the User conversion rate type is used with a
default rate of 1.
•
A User rate is used for the transaction. In this case,
the User conversion rate type is used. The
reporting currency conversion is completed in two
steps via the default rate type assigned to the
reporting currency.
Using Accounting Setup Manager
3-51
Field
Description
Note: If the Account Type Specific Conversion
is enabled, you can determine whether
Accounting Setup Manager should inherit the
conversion type used in the source ledger.
Note: Reporting Currency Account Type Specific
Conversion, Oracle General Ledger User Guide
Missing Conversion Rate
4.
Controls what the system should do if it cannot find a
conversion rate as of the conversion date
•
If Report an Error is selected, the system will report an
error and prevent a transaction or journal from being
posted in the source ledger; a conversion rate will need
to be specified to successfully convert data entered in
the source ledger to this reporting currency.
•
If Use Last Rate is selected, the system will use the last
rate defined for a particular rate type if it cannot find a
currency conversion rate; if enabled, specify a number
for the Number of Days to Find the Last Rate.
Number of Days to Find
Last Rate
Indicates how many days back in time the system should
look to find a rate; enter a number from 1 to 999.
Retain Journal Creator from
Source Ledger
Controls the Created By user information that can be
viewed for each journal using Help > Record History
•
Select Yes to retain the person who entered the journal
in the source ledger as the Created By user.
•
Select No to indicate the person who posted the journal
as the Created By user.
Click Apply.
Related Topics
Journal Source and Category Conversion, page 3-53
3-52
Oracle Financials Implementation Guide
Subledger Level Reporting Currencies, page 3-54
Journal Conversion Rule Examples, page 3-54
Changing Conversion Rules, page 3-57
Adding Reporting Currencies, page 3-58
Disabling the Conversion of Reporting Currencies, page 3-60
Journal Source and Category Conversion
General Ledger Posting uses the journal source and category conversion rules to
determine the journals (based on journal source and category combinations) to
automatically convert to this reporting currency.
Journal sources identify the origin of journal entry transactions, such as Purchasing or
Payables. Journal categories describe the purpose of journal entries, such as purchase
requisitions or purchase orders.
Specifying a journal source and category combination and selecting Yes in the Convert
Journals to this Reporting Currency field instructs the General Ledger Posting program
to automatically convert those journals to this reporting currency when they are posted
in the source ledger.
The journal source and category Other represents all other journal sources and
categories other than those explicitly defined.
•
To convert the majority of journals to this reporting currency, specify Yes for the
Other journal source and category and then select No for the journal source and
category combinations that you do not want converted.
•
If you do not want the majority of the journals to be automatically converted to this
reporting currency, specify No for the Other journal source and category and then
selectively add those journal source and category combinations that you do want
converted.
Note: If the General Ledger Posting program cannot find a matching
journal source/category combination, or if no conversion rules for a
journal source/category combination are defined, the journal is not
converted to the reporting currency.
The journal sources Move/Merge and Move/Merge Reversal are set to No because they
are not converted to the reporting currency using General Ledger Posting. They are
automatically converted to the reporting currency when performing a move/merge or
move/merge reversal in the source ledger. This means that if you use Mass Maintenance
to move or merge balances between accounts in the source ledger, the same accounts
are moved or merged in the reporting currency.
Using Accounting Setup Manager
3-53
Note: Moving or Merging Account Balances, Oracle General Ledger User
Guide
Subledger Level Reporting Currencies
For subledger level reporting currencies, the journal sources for all transaction sources
that use Subledger Accounting must be set to No in the Convert Journals to this
Reporting Currency field. Any journal source that uses Subledger Accounting to
generate its accounting entries must not be converted to the reporting currency using
General Ledger Posting because Subledger Accounting automatically performs the
conversion for these subledger journals.
Warning: If you incorrectly choose Yes in the Convert Journals to this
Reporting currency field for any transaction sources that use Subledger
Accounting, the journal will be double counted; once by Subledger
Accounting and once by General Ledger Posting. You will need to
reverse the journal in General Ledger.
Note: To find all transaction sources that integrate with Oracle
Subledger Accounting, query them in the Subledger Application form
that is accessed from the Subledger Accounting Setup menu.
Note: If integrating with transaction sources that do not use Subledger
Accounting and you want to maintain journals from these subledgers
in the subledger level reporting currency, do not use Oracle's seeded
journal sources. For example, if you use a non-Oracle Receivables
application, you should create your own journal source for that
application instead of using the seeded source Receivables that is
reserved for Oracle sources. If you use the seeded source to import data
from third party systems, those journals will not be converted to a
subledger level reporting currency when you post them in the primary
ledger.
Journal Conversion Rule Examples
This section describes examples that illustrate how journals are converted based on
different journal conversion rules.
Example 1: Specific Journal Source and Journal Category Match
The following example shows a matching source/category combination. It also shows
that no conversion takes place if there is not a match with any of the defined conversion
3-54
Oracle Financials Implementation Guide
rules.
Conversion rules are defined in the following table.
Example 1: Journal Conversion Rules
Source
Category
Convert Journals
Other
Other
No
Manual
Adjustment
Yes
Consolidation
Consolidation
No
Manufacturing
Labor Cost
Yes
The following table describes the results for journals converted to the reporting
currency.
Example 1: Journals Converted to the Reporting Currency
Journal Number
Source/Category
Results
1
Manual/Adjustment
Journal is converted using the
defined conversion options
for this combination.
2
Consolidation/Consolidation
Journal is not converted
because the Convert option is
set to No.
3
Manufacturing/Freight
Journal is not converted
because there is no rule
defining Journal Source
Manufacturing and Category
Freight.
Example 2: No Specific Journal Source or Category
The following shows an example of matching a journal source but not a category; and
another example of matching a journal category but not a source.
Conversion rules are defined in the following table.
Using Accounting Setup Manager
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Example 2: Conversion Rules
Source
Category
Convert Journals
Manufacturing
Other
Yes
Other
Adjustment
Yes
Manufacturing
Adjustment
No
The following table describes the results for journals converted to the reporting
currency.
Example 2: Journals Converted to the Reporting Currency
Journal Number
Source/Category
Results
1
Manufacturing/Labor Cost
Journal is converted because
the first rule only has a
requirement to match to a
source of Manufacturing with
any category.
2
Manual/Adjustment
Journal is converted because a
rule has a requirement to
match to any source with the
Adjustment category.
3
Spreadsheet/Adjustment
Journal is converted because a
rule has a requirement to
match any source with the
Adjustment category.
4
Manufacturing/Adjustment
Journal is not converted
because the Convert option is
set to No for this
source/category combination.
Example 3: Journal Source and Journal Category Conflicting Rules
The following example shows what happens when you set up contradictory rules for
journal source/category combinations. The rule for the source always overrides the rule
for the category.
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Conversion rules are defined in the table below.
Example 3: Conversion Rules
Source
Category
Convert Journal
Other
Adjustment
No
Manual
Other
Yes
The following table describes the results for journals converted to the reporting
currency.
Example 3: Journals Converted to the Reporting Currency
Journal Number
Source/Category
Results
1
Manufacturing/Adjustment
Journal is not converted
because it matches the first
rule to not convert.
2
Manual/Adjustment
Journal is converted because
the second rule requires
conversion of all journals with
the source Manual. The
source rule overrides the
category rule.
Changing Conversion Rules
Change the journal source and category conversion rules at any time. For example, for
any journal source/category combination, you can change the Convert Journals to this
Reporting Currency option.
Note that the changes are effective immediately, but that they apply only to new
journals.
Caution: It is strongly recommended that you do not change the
conversion rules once you begin entering transactions. Doing so may
result in inconsistent transaction amounts and account balances
between your source ledger (primary or secondary ledger) and its
reporting currencies.
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Adding Reporting Currencies
Add reporting currencies to primary or secondary ledgers at any time. If adding journal
level or subledger level reporting currencies to existing ledgers that have periods
opened, you must initialize the beginning balances for your reporting currency and
optionally choose to convert historical data from the source ledger to the reporting
currency. Historical Conversion refers to converting the historical transactions of the
source ledger to the journal level or subledger level reporting currency.
Note: Historical Conversion does not apply to reporting currencies that
are assigned to new accounting setups.
Note: Before adding journal or subledger level reporting currencies,
carefully review the information in the Implementation Considerations
section of the Journal or Subledger-Level Reporting Currencies chapter
of the Oracle General Ledger User Guide.
Note: If you allow users to make adjustments in Oracle Projects to
expenditure items that represent receipts, receipt non-recoverable tax,
or exchange rate variances, then Oracle Projects does not perform
accounting for adjustments in reporting currencies and subledger level
secondary ledgers if the secondary ledger currency differs from the
primary ledger currency. Please review your business practices and
ensure that the Oracle Projects profile options PA: Allow Adjustments
to Receipt Accruals and Exchange Rate Variance are set appropriately.
For additional information, see: Profile Restrictions to Supplier Cost
Adjustments, Oracle Project Costing User Guide.
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To add reporting currencies:
1.
Navigate to the Accounting Options page.
2.
Click the Update icon for the reporting currency.
3.
In the Reporting Currency Assignment region, click Add Reporting Currency.
4.
Select the Currency Conversion level.
•
You can only assign subledger level reporting currencies to primary ledgers
that have subledger accounting methods assigned.
If assigning a reporting currency to a secondary ledger, the currency conversion
level of the reporting currency must be equal to or less than the Data
Conversion Level of the Secondary Ledger. The following table lists the types of
reporting currencies that can be assigned to Secondary Ledgers.
Reporting Currencies that can be Assigned to Secondary Ledgers
If the secondary ledger data
conversion level is ...
Then the type of reporting currency
available is…
Balance
Balance level only
Journal
Balance or journal level
Subledger
Balance or journal level
Note: : Secondary ledgers cannot have
subledger level reporting currencies
assigned.
Adjustments Only
Balance level only
5.
Enter all required fields.
6.
To initialize beginning balances and convert historical transactions or journals to
this reporting currency, enter Data Conversion Initialization options as described in
the following table.
Using Accounting Setup Manager
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Data Conversion Initialization Options
Option
Description
First Future Conversion
Period
The first period for which you want to convert transactions or
journals to your reporting currency. The First Future Conversion
Period is also the period in which account balances are
initialized in your reporting currencies. It must be the first
future-enterable period in your source ledger.
Retain Original
Conversion Rate Type
To convert data from the source ledger to your reporting
currency for periods prior to the First Future Conversion Period,
this options determines whether the original rate type can be
used to convert historical data.
•
Select Yes to retain the conversion rate type used to enter
the original transaction.
Select No to use the rate type specified in the next field,
Historical Conversion Rate Type.
Historical Conversion
Rate Date
Enter the date of the conversion rate to use to convert historical
data to this reporting currency.
Historical Conversion
Rate Type
If you entered No to retain the original transaction's conversion
rate type, enter the conversion rate type to use for historical data
conversion.
Note: For more information about the previous four options, see
the Implementation Considerations section of the Journal or
Subledger-Level Reporting Currencies chapter of the Oracle General
Ledger User Guide.
7.
Click Apply.
Note: Reporting currencies can only be deleted before the accounting
setup is complete. If the reporting currency acts as the source
representation for a secondary ledger, delete the secondary ledger
before deleting the reporting currency.
Disabling the Conversion of Reporting Currencies
After the accounting setup is complete, you cannot delete reporting currencies; you can
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disable the conversion of subledger and journal level reporting currencies. This
prevents future transactions and journals from being converted to the reporting
currency. You will still be able to use the disabled reporting currency to view historical
data and enter manual journals.
If the reporting currency acts as the source representation for a secondary ledger,
disable the conversion of the secondary ledger before disabling the conversion for the
reporting currency.
Note: The source representation of the secondary ledger is displayed in
the Source Representation field in the Primary to Secondary Ledger
Mapping page.
Note: Balance level reporting currencies cannot be disabled. To stop the
conversion of balances from the source ledger to the balance level
reporting currency, stop running Translation.
Once the conversion of a reporting currency is disabled, the status of the reporting
currency is changed to Disabled.
To disable the conversion of reporting currencies:
1.
Navigate to the Reporting Currencies page.
2.
In the Reporting Currency Assignment region, click the Disable Conversion icon.
Note: Once disabled, the conversion of a reporting currency cannot
be enabled.
Ledger Balancing Segment Value Assignments
Optionally assign specific balancing segment values to ledgers to track non-legal
entity-related transactions or adjustments using a specific balancing segment value.
Note: Assign specific balancing segment values to all legal entities in an
accounting setup before assigning a specific balancing segment value to
the ledgers in the accounting setup.
Balancing segment values can be added to ledgers at any time.
•
Before the accounting setup is complete, you can remove balancing segment values
from ledgers.
•
After the accounting setup is complete, you can only disable the balancing segment
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value by entering an end date.
To assign balancing segment values to ledgers:
1.
Navigate to the Accounting Options page.
2.
Click the Update icon for the Balancing Segment Value Assignments step.
3.
View the balancing segment values assigned to the legal entities associated with the
accounting setup in the Legal Entity Assignment region.
Note: Updating Balancing Segment Values, page 3-17
4.
In the Ledger Assignment region, enter a balancing segment value.
Note: The value cannot be the same as the balancing segment
values assigned to the legal entities.
5.
Optionally, enter a start and end date to make the value effective for a limited time.
Note: This step does not have to have a status of Complete in order
to complete the accounting setup.
To remove balancing segment values:
Balancing segment values can only be removed from ledgers before the accounting
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setup is complete.
1.
Navigate to the Ledger Balancing Segment Value Assignments page. You access
this page by updating the Balancing Segment Value Assignments step for the
ledger.
2.
To remove balancing segment values, click the Remove icon for each balancing
segment value.
To disable balancing segment values:
Disable balancing segment values by entering an end date for the value. You cannot use
the balancing segment value to enter new transactions or journals after the end date.
You can only use the value for reporting and viewing historical data.
1.
Navigate to the Ledger Balancing Segment Value Assignments page. You access
this page by updating the Balancing Segment Value Assignments step for the
ledger.
2.
To disable a balancing segment value, enter an end date.
Subledger Accounting Options
If you assigned a subledger accounting method to your ledgers, the Subledger
Accounting Options step will be displayed with a status of Complete.
If you did not assign a subledger accounting method to your ledger, then this step will
not be displayed.
You can update this step at any time from the Accounting Options page. Subledger
Accounting Options allow you to define how to generate the accounting entries from
subledger transactions.
Note: All of the subledgers assigned to a ledger inherit its subledger
accounting method from that ledger.
Note: Oracle Subledger Accounting Implementation Guide
Operating Units
You can assign operating units to the primary ledger to partition subledger transaction
data when multiple operating units perform accounting in the context of one or more
legal entities.
If using an accounting setup that has legal entities assigned, the Operating Units step
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will be displayed. The status for this step will be Not Started.
You can update the Operating Units step at any time from the Accounting Options
page.
Note: You do not have to complete this step in order to complete your
accounting setup.
Note: If you defined operating units in the Define Organization
window in Oracle HRMS, then those operating units will be
automatically assigned to the appropriate primary ledger in
Accounting Setup Manager.
Note: Multiple Organizations Overview, Oracle Applications Multiple
Organizations Implementation Guide
Prerequisites
The following prerequisites are required if you plan to assign operating units to a
primary ledger in the Accounting Setup Manager:
•
Define legal entities and assign them to accounting setups
•
Complete primary ledger setup steps
To Define and Assign Operating Units:
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1.
Navigate to the Operating Units page.
2.
Click Add Operating Unit to both create and assign an operating unit to the
primary ledger.
3.
In the Add Operating Units page, enter the following:
•
Name: The name of the operating unit
•
Short Code: The short name of the operating unit
•
Business Group: The highest level in the organization structure, such as the
consolidated enterprise, a major division, or an operation company that secures
human resources information
•
Default Legal Context: One of the legal entities assigned to the accounting
setup to act as the default legal context
Oracle Financials Implementation Guide
4.
Alternatively, you can create operating units by clicking Open Organization Form
to open the Define Organization window in Oracle HRMS. When you define your
operating unit and assign it to a primary ledger and default legal context, you will
be able to view the operating unit assignment from Accounting Setup Manager.
5.
Click Apply or Add Another to define and assign multiple operating units.
6.
To mark the Operating Units step complete, click Complete.
Note: Once you add an operating unit to a primary ledger, you cannot
remove it. You can prevent the use of that operating unit by not
assigning it to a Security Profile in Oracle HRMS. For more information
on security profiles, see Implementing Multiple Organization Support,
Oracle Applications Multiple Organizations Implementation Guide Oracle
Applications Multiple Organizations Implementation Guide.
Intercompany Accounts
If using an accounting setup that has legal entities assigned and balancing segment
values have been assigned to the legal entities, the Intercompany Accounts step will be
displayed. The status for this step will be Not Started.
Update the Intercompany Accounts step to account for transactions across legal entities.
Note: You do not have to complete this step in order to complete your
accounting setup. You can update this step at any time from the
Accounting Options page.
Note: Intercompany Balancing, Oracle Financials Implementation Guide
Intracompany Balancing Rules
If you enabled the Intracompany Balancing option for your ledger, the Intracompany
Balancing step will be displayed. The status for this step will be Not Started.
Update the Intracompany Balancing step to define rules to balance journal entries
between balancing segment values that are assigned to the same legal entity or ledger.
Note: You do not have to complete this step in order to complete your
accounting setup. You can update this step at any time from the
Accounting Options page.
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Note: Intracompany Balancing Rules, Oracle Financials Implementation
Guide
Sequencing
Sequencing allows you to define accounting and reporting sequencing options for
ledgers and reporting currencies. You can update this step at any time from the
Accounting Options page.
Note: It is not necessary to complete this step in order to complete your
accounting setup.
Note: Sequencing, page 3-66
Secondary Ledgers
Secondary ledgers represent the primary ledger's accounting data in another accounting
representation that differs in one or more of the following ways:
•
chart of accounts
•
accounting calendar/period type combination
•
currency
•
subledger accounting method
•
ledger processing options
Use secondary ledgers for supplementary purposes, such as consolidation, statutory
reporting, or adjustments for one or more legal entities within the same accounting
setup. For example, use a primary ledger for corporate accounting purposes that uses
the corporate chart of accounts and subledger accounting method, and use a secondary
ledger for statutory reporting purposes that uses the statutory chart of accounts and
subledger accounting method. This allows you to maintain both a corporate and
statutory representation of the same legal entity's transactions in parallel.
Assign one or more secondary ledgers to each primary ledger for an accounting setup.
The secondary ledgers assigned can only perform the accounting for the legal entities
within the same accounting setup.
Note: If an additional ledger is needed to perform accounting across
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legal entities or ledgers in different accounting setups, use a ledger in
an accounting setup with no legal entity assigned. This can be used for
multiple purposes, such as performing management reporting or
consolidation across multiple legal entities.
Note: If you allow users to make adjustments in Oracle Projects to
expenditure items that represent receipts, receipt non-recoverable tax,
or exchange rate variances, then Oracle Projects does not perform
accounting for adjustments in reporting currencies and subledger level
secondary ledgers if the secondary ledger currency differs from the
primary ledger currency. Please review your business practices and
ensure that the Oracle Projects profile options PA: Allow Adjustments
to Receipt Accruals and Exchange Rate Variance are set appropriately.
For additional information, see: Profile Restrictions to Supplier Cost
Adjustments, Oracle Project Costing User Guide.
Related Topics
Data Conversion Levels, page 3-67
Data Conversion Levels
Secondary Ledgers can be maintained at one of the following data conversion levels:
•
Subledger Level Secondary Ledgers, page 3-68
•
Journal Level Secondary Ledgers, page 3-69
•
Balance Level Secondary Ledgers, page 3-70
•
Adjustments Only Secondary Ledger, page 3-70
Conversion Rules
The following conversion rules are used to convert data from the primary ledger to the
secondary ledger:
•
Chart of Accounts Conversion: If the secondary ledger uses a different chart of
accounts from the primary ledger, a chart of accounts mapping is used to provide
instructions for mapping accounts or entire account segments from the primary
ledger to the secondary ledger.
•
Calendar Conversion: If the secondary ledger uses a different accounting calendar
from the primary ledger, the journal effective date determines the corresponding
non-adjusting period in the secondary ledger.
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•
Currency Conversion: If the secondary ledger uses a different currency from the
primary ledger, currency conversion rules are required to instruct the system on
how to convert data from the currency of the primary ledger to the currency of the
secondary ledger.
•
Journal Conversion (Used by General Ledger Posting only): To select the journals
for transfer to the secondary ledger based on journal source and category
combinations. The General Ledger Posting program uses these rules to determine
which journals to automatically transfer to the secondary ledger during posting.
Note: The above conversion rules do not apply to Adjustments Only
level secondary ledgers because they must share the same chart of
accounts, accounting calendar, and currency as the primary ledger.
Note: Primary to Secondary Ledger Mapping
Subledger Level Secondary Ledgers
The subledger level secondary ledger maintains an additional accounting
representation of the subledger journals, journal entries, and balances. The subledger
level secondary ledger is maintained using both Subledger Accounting and the General
Ledger Posting program.
By assigning two different subledger accounting methods to the primary and secondary
ledger, you can use Subledger Accounting rules to simultaneously account for the same
legal entity transaction in both ledgers. This allows you to maintain multiple accounting
representations of a single subledger transaction and have the different subledger
journals produced in each ledger.
Note: Subledger Accounting integrates data from both Oracle and
non-Oracle transaction sources. For a list of transaction sources that
integrate with Oracle Subledger Accounting, query them in the
Subledger Application page available from the Subledger Accounting
setup menu.
When entering subledger transactions using Oracle financial subledgers that integrate
with Subledger Accounting, Subledger Accounting automatically generates the
appropriate accounting entries to both the primary and secondary ledgers in General
Ledger based on the accounting rules defined for a particular subledger accounting
method.
Note: If using Oracle Assets, fixed asset transactions are transferred to
specific ledgers based on the ledger you assigned to each Asset Book.
For example, if you assigned the primary ledger to the Corporate Book
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and the secondary ledger to the Tax Book in Oracle Assets, the asset
transactions for each book will only be reflected in the respective
ledgers. Thus, the Corporate Book transactions will only be reflected in
the primary ledger and the Tax Book transactions will only be reflected
in the secondary ledger.
If entering transactions using Oracle subledgers that do not use
Subledger Accounting to generate their accounting entries, their
journals will be imported through the GL Interface table of the primary
ledger. When posting the journal in the primary ledger, the General
Ledger Posting program automatically replicates the journal to the
secondary ledger based on the conversion rules you specify.
Journal Conversion Rules
By default, the following types of journals are replicated to the secondary ledger using
General Ledger Posting, not Subledger Accounting:
•
journals created by Oracle subledgers that do not use Subledger Accounting
•
manual journal entries entered in the primary ledger
•
journals from spreadsheets or non-Oracle systems that were entered via the
primary ledger's GL Interface table
Each time you post these journals in the primary ledger, they are automatically
propagated to the subledger level secondary ledger, unless you defined journal
conversion rules to exclude these journal sources from being transferred to the
secondary ledger.
By default, journals that use the following journal sources are not transferred to the
subledger level secondary ledger:
•
Move/Merge
•
Move/Merge Reversal
•
Revaluation
•
Subledger sources that use Subledger Accounting
Note: Primary to Secondary Ledger Mapping, page 3-82
Journal Level Secondary Ledgers
The journal level secondary ledger is an additional accounting representation of the
primary ledger journal entries and balances. This type of secondary ledger is
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maintained using the General Ledger Posting Program only.
Every time you post a journal in the primary ledger, the same journal is automatically
replicated and maintained in the secondary ledger, depending on the journal
conversion rules specified for the secondary ledger.
By default, journals that use the following journal sources are not transferred to the
journal level secondary ledger:
•
Move/Merge
•
Move/Merge Reversal
•
Revaluation
Note: Primary to Secondary Ledger Mapping, page 3-82
Balance Level Secondary Ledgers
The balance level secondary ledger only maintains the primary ledger balances in
another accounting representation. To maintain balances in this type of secondary
ledger, use General Ledger Consolidation to transfer the primary ledger balances to this
secondary ledger.
If the balance level secondary ledger uses a different currency from the primary ledger,
use General Ledger Consolidation to transfer balances from the primary ledger's
balance level reporting currency to the balance level secondary ledger. This balance
level reporting currency uses the same currency as the secondary ledger and represents
the translated balances of the primary ledger.
Adjustments Only Secondary Ledger
The adjustments only secondary ledger is an incomplete accounting representation that
only holds adjustments, manual adjustments, or automated adjustments created by
Subledger Accounting. Create adjustments as follows:
•
To create manual adjustments, enter manual journal entries directly in the
secondary ledger.
•
To create automated adjustments using Subledger Accounting, assign a subledger
accounting method to both the primary and secondary ledger and define Subledger
Accounting rules that transfer only the subledger accounting adjustment to this
adjustments only secondary ledger.
Adjustments only secondary ledgers are useful if you do not need a complete ledger to
perform management or statutory reporting. You can perform all of your daily
transactions in the primary ledger and then book adjustments, such as management or
statutory adjustments, in the adjustments only secondary ledger.
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Note: Using a secondary ledger as an adjustments ledger is not
sufficient for companies that operate in countries that require
companies to have two complete ledgers, one for statutory reporting
and another for corporate accounting.
By itself, this adjustments only secondary ledger does not represent the complete
accounting picture; it only holds the adjustments for the transactions contained in its
associated primary ledger. Use a ledger set to combine the adjustments only secondary
ledger with the primary ledger to obtain a complete secondary accounting
representation that includes both the transactional data and the adjustments. Then
report on the ledger set using General Ledger's Financial Statement Generator (FSG),
which automatically summarizes data across ledgers in a ledger set.
Note: Ledger Sets enable you to group multiple ledgers together (that
share the same chart of accounts and accounting calendar/period type
combination) to obtain processing efficiencies, such as opening and
closing periods and reporting across multiple ledgers simultaneously.
Note: Ledger Sets, page 6-1
Note: Adjustments only secondary ledgers must share the same chart of
accounts, accounting calendar/period type combination, and currency
as the associated primary ledger.
Using Secondary Ledgers for Consolidated Reporting
Use secondary ledgers for consolidated reporting to prevent the need to perform
balance transfer consolidations, and to obtain a cross-company view of your enterprise.
For example, assume the two accounting setups described in the following graphic and
table are defined for the company's legal entities.
Using Accounting Setup Manager
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Legal Entity: France (Parent Entity), US (Subsidiary)
Legal Entity
France (Parent Entity)
US (Subsidiary)
Primary Ledger
France Operations
Corporation
US Operations
•
Description
•
Chart of Accounts
•
Accounting Calendar
•
Currency
Secondary Ledger
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•
Description
•
Chart of Accounts
•
Accounting Calendar
•
Currency
Oracle Financials Implementation Guide
•
For US Accounting
For Corporate
Accounting
•
Corporate
•
Corporate
•
Monthly
•
Monthly
•
USD
•
EUR
•
France Statutory (Subledger
Level)
•
For Statutory Reporting
•
Statutory
•
Fiscal
•
EUR
The France legal entity uses a primary ledger for corporate accounting purposes and a
secondary ledger for statutory reporting purposes. Both ledgers use different charts of
accounts and accounting calendars.
The US subsidiary uses its own chart of accounts and currency to account for its
transactions in its main record-keeping ledger, the primary ledger.
For ease of consolidation, the US subsidiary can assign a secondary ledger to its
primary ledger. The secondary ledger should use the same chart of accounts,
accounting calendar, and currency as the parent entity, France. Then, by using a ledger
set to group the secondary ledger of the US subsidiary with the primary ledger of the
parent entity, consolidated results can be obtained by simply running an FSG report
using the ledger set. This prevents the need to perform balance transfer consolidations
every period.
The following graphic and table describe an example of the ledger configuration when a
secondary ledger is added to the US subsidiary. The Consolidation Ledger Set is
comprised of the primary Ledger for France and the secondary ledger for the US.
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Legal Entity: France (Parent Entity), US (Subsidiary)
Legal Entity
France (Parent Entity
US (Subsidiary)
Primary Ledger
France Operations
Corporation
US Operations
•
Description
•
Chart of Accounts
•
Accounting Calendar
•
Currency
Secondary Ledger
•
•
•
•
Description
Chart of Accounts
Accounting Calendar
Currency
•
For US Accounting
For Corporate
Accounting
•
Corporate
•
Corporate
•
Monthly
•
Monthly
•
USD
•
EUR
•
France Statutory (Subledger
Level)
US Operations Consolidation
•
For Consolidation
Purposes
Statutory
•
Corporate
•
Fiscal
•
Monthly
•
EUR
•
EUR
•
For Statutory Reporting
•
Note: If the parent entity, France, needs to enter consolidation
adjustments, such as intercompany eliminations, they can enter those
adjustments in their primary ledger using a balancing segment value
that is reserved for manual adjustments.
Using Ledgers for Consolidation
A ledger in an accounting setup with no entity assigned can be used as the parent
consolidation ledger when performing fairly simple consolidations across multiple legal
entities in different accounting setups. This allows users to keep consolidation
adjustments completely separate from the ledgers that are used to maintain the
day-to-day transactions for multiple legal entities.
For example, assume the legal entities and ledgers in three different accounting setups
as described in the following figure and tables.
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Oracle Financials Implementation Guide
Legal Entity: France (Parent Entity)
Primary Ledger
Secondary Ledger
Name: France Operations
Name: France Statutory
Chart of Accounts: Corporate
Chart of Accounts: Statutory
Calendar: Monthly
Calendar: Fiscal
Currency: EUR
Currency: EUR
Legal Entity: US (Subsidiary)
Primary Ledger
Name: US Operations
Chart of Accounts: Corporate
Calendar: Monthly
Currency: USD
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Legal Entity: U.K. (Subsidiary)
Primary Ledger
Name: U.K. Operations
Chart of Accounts: Corporate
Calendar: Monthly
Currency: GBP
•
The France legal entity uses a primary ledger for corporate accounting purposes
and a secondary ledger for statutory reporting purposes.
•
The US subsidiary uses its own chart of accounts and currency to account for its
transactions in its primary ledger.
•
The U.K. Operations uses the corporate chart of accounts and calendar to account
for its transactions, but it uses its own local currency.
Instead of assigning secondary ledgers to the US and U.K. operations to perform
consolidation, the parent entity can define another accounting setup with no legal entity
assigned to perform balance transfer consolidations from all three legal entities.
The primary ledger should share the same ledger attributes as the primary ledger of the
parent entity, such as the same chart of accounts, accounting calendar, and currency.
The tables below describe an example of all of the accounting setups with the additional
accounting setup added for consolidation purposes.
Legal Entity: France (Parent Entity)
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Primary Ledger
Secondary Ledger
Name: France Operations
Name: France Statutory
Chart of Accounts: Corp.
Chart of Accounts: Statutory
Calendar: Monthly
Calendar: Fiscal
Currency: EUR
Currency: EUR
Oracle Financials Implementation Guide
Legal Entity: US (Subsidiary)
Primary Ledger
Name: US Operations
Chart of Accounts: Corporate
Calendar: Monthly
Currency: USD
Legal Entity: U.K. (Subsidiary)
Primary Ledger
Name: U.K. Operations
Chart of Accounts: Corp.
Calendar: Monthly
Currency: GBP
Legal Entity: None
Primary Ledger
Name: Consolidation
Chart of Accounts: Corp.
Calendar: Monthly
Currency: EUR
With this configuration, perform balance transfer consolidations as follows:
•
Assign balance level reporting currencies, using the euro currency (EUR), to both
the primary ledgers for legal entities, US and U.K. Each balance level reporting
currency maintains the translated balances for each respective legal entity.
•
Use GL Consolidation to transfer the balances directly from each of the balance
level reporting currencies to the consolidation ledger in an accounting setup with
no legal entity assigned.
Using Accounting Setup Manager
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•
For the parent entity, you can transfer its balances directly from its primary ledger
to the consolidation ledger.
•
After all balances have been transferred to the consolidation ledger, enter any
consolidation adjustments directly in the consolidation ledger.
Note: Using ledgers in an accounting setup with no legal entity
assigned for consolidation purposes is not recommended if you have
complex consolidation requirements. For example, if your organization
performs frequent acquisitions, disposals, and reorganizations or has
many partially owned subsidiaries, you should use Oracle Financial
Consolidation Hub for your consolidation needs.
For more information on Oracle Financial Consolidation Hub, see the Oracle Financial
Consolidation Hub User's Guide.
Completing Accounting Setup
If you assigned secondary ledgers when you created an accounting setup structure,
complete the secondary ledger steps described in the table below in the Accounting
Options page.
Secondary Ledger Steps in the Accounting Options Page
Step
Description
Ledger Options
Defines and updates the journal and
transaction processing options for the ledger
Note: The Ledger Options for the primary
ledger must be completed before
completing the Ledger Options for the
secondary ledger.
Note: Completing Ledger Options, page 332
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Oracle Financials Implementation Guide
Step
Description
Primary to Secondary Ledger Mapping
To specify conversion options to transfer data
from the primary ledger to the secondary
ledger.
Note: Primary to Secondary Ledger
Mapping, page 3-82
Note: To Complete Reporting Currencies, page 3-46
Adding, Deleting, and Disabling Secondary Ledgers
Adding Secondary Ledgers
Add secondary ledgers to accounting setups at any time in the Accounting Options
page.
If you add a balance level secondary ledger that uses a different currency from the
primary ledger, a balance level reporting currency is generated for the primary ledger
unless one already exists. This balance level reporting currency maintains the primary
ledger's translated balances and is the source representation for the secondary ledger. In
other words, when using GL Consolidation to transfer balances to the secondary ledger,
transfer the balances from the source representation, the balance level reporting
currency.
Note: The source representation is displayed on the Primary to
Secondary Ledger Mapping page.
Prerequisite
•
The ledger options for the primary ledger must be completely defined.
Using Accounting Setup Manager
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To add secondary ledgers
1.
Navigate to the Accounting Options page.
2.
Click Add Secondary Ledger.
This button will only appear after the ledger options for the primary ledger have a
complete status.
3.
Enter all relevant fields.
The table below describes selected fields in the Add Secondary Ledger page.
Field
Description
Accounting Calendar
General Ledger uses the calendar periods that have the period
type specified for journal entry, budgeting, and reporting with
this ledger.
Note: Accounting Setup Manager reports an error if there
are any gaps between periods in the accounting calendar or
if any of the non–adjusting periods overlaps.
Subledger Accounting
Method
If defining a balance or journal level secondary ledger, do not
assign a subledger accounting method.
If defining a subledger journals level secondary ledger, a
subledger accounting method must be assigned to the
secondary ledger and its primary ledger.
Note: If defining an Adjustments Only secondary ledger for
manual adjustments in General Ledger, do not assign a
subledger accounting method. To use the Adjustments Only
secondary ledger for both manual and automated
adjustments from Subledger Accounting, assign a subledger
accounting method to both the primary and secondary
ledger.
Note: Subledger Accounting Methods, Oracle Subledger
Accounting Implementation Guide
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Oracle Financials Implementation Guide
Field
Description
Data Conversion Level
To select Subledger, a subledger accounting method must be
assigned to both the primary and secondary ledger.
To select Adjustments Only, the secondary ledger must share
the same chart of accounts, accounting calendar, and currency
as the primary ledger. The subledger accounting method, if
used, can be different from the primary ledger. However, to
assign a subledger accounting method to the adjustments only
secondary ledger, you must also assign one to the primary
ledger.
Note: The data conversion level cannot be changed.
Note: After adding a secondary ledger, complete the Ledger Options
step and the Primary to Secondary Ledger Mapping step to enable the
secondary ledger for data entry.
•
Completing Ledger Options, page 3-32
•
Completing the Primary to Secondary Ledger Mapping, page 3-93
Deleting Secondary Ledgers
You can only delete secondary ledgers before the accounting setup is complete. After
the accounting setup is complete, you can disable the conversion of secondary ledgers.
This prevents any journals that are entered in the primary ledger or source
representation from being transferred to the secondary ledger.
Deleting a secondary ledger removes the ledger and all of its setup steps.
To delete secondary ledgers:
1.
Navigate to the Accounting Options page.
2.
Find the secondary ledger to delete and click the Remove Secondary Ledger icon.
Disabling the Conversion of Secondary Ledgers
Once you disable the conversion of secondary ledgers, it immediately prevents the
propagation of journals from the primary ledger to the secondary ledger.
The disabled secondary ledger is still available for historical reporting and manual
Using Accounting Setup Manager
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journal entries
Note: Balance level secondary ledgers cannot be disabled. To stop
transferring balances from the source representation (primary ledger or
balance level reporting currency) to the balances level secondary
ledger, stop running consolidations.
Note: Adjustments only secondary ledgers cannot be disabled because
journals are not automatically transferred to this secondary ledger.
To disable the conversion of secondary ledgers:
1.
Navigate to the Accounting Options page.
2.
In the Secondary Ledgers region, select the Disable Conversion icon for the
secondary ledger to be disabled.
Note: Once the conversion of a secondary ledger is disabled, the
status of the secondary ledger is changed to Disabled.
Primary to Secondary Ledger Mapping
The Primary to Secondary Mapping step specifies the conversion options to convert
data from the primary ledger to the secondary ledger that may use a different chart of
accounts, currency, and calendar from the primary ledger.
Note: If using an adjustments only secondary ledger, the Primary to
Secondary Ledger Mapping step is not displayed. No conversion rules
are required because the adjustments only secondary ledger must share
the same chart of accounts, accounting calendar, and currency as the
primary ledger.
Primary to Secondary Ledger Mapping Conversion Options
This section describes the following conversion options:
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•
Chart of Accounts Conversion, page 3-83
•
Calendar Conversion, page 3-83
•
Journal Conversion, page 3-83
•
Currency Conversion, page 3-85
Oracle Financials Implementation Guide
Chart of Accounts Conversion
In order to convert data between the charts of accounts of the primary and secondary
ledgers, assign a chart of accounts mapping. A chart of accounts mapping is a set of
instructions for mapping accounts or entire account segments from your primary
ledger's chart of accounts to your secondary ledger's chart of accounts. This is
particularly important if the primary and secondary ledgers use different charts of
accounts.
Note: If a chart of accounts mapping is not assigned when the primary
and secondary ledgers use different charts of accounts, errors are
caused with Subledger Accounting and General Ledger posting.
If the primary and secondary ledgers use the same chart of accounts, the chart of
accounts mapping is not required but can be assigned to the journal level and balance
level secondary ledgers. This allows more flexibility to utilize different rollup rules
when transferring journals or balances from the primary ledger to the secondary ledger.
For example, you can maintain more detailed information in the primary ledger but
maintain more summarized information in the secondary ledger, depending on the
rollup rules defined for the chart of accounts mapping.
Note: You cannot change the chart of accounts mapping that is
assigned to the secondary ledger once the accounting setup is complete.
Note: Mapping Charts of Accounts, Oracle General Ledger User Guide
Calendar Conversion
If the primary and secondary ledgers use different accounting calendars, the journal
effective date is used to determine the corresponding non-adjusting period in the
secondary ledger. If the secondary ledger does not share the same calendar as the
primary ledger, each primary ledger journal is transferred to the secondary ledger's
non-adjusting period that includes the journal's effective date.
Journal Conversion
In order to transfer journals to the secondary ledger, specify journal conversion rules.
Choose the journals to transfer to the secondary ledger by specifying journal source and
category combinations. The General Ledger Posting program uses these journal
conversion rules to determine which journals it should automatically transfer to the
secondary ledger during posting.
Note: Journal conversion rules are only applicable if the data
conversion level of the secondary ledger is subledger or journal.
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Journal sources identify the origin of journal entry transactions, such as
Purchasing or Payables. Journal categories describe the purpose of
journal entries, such as purchase requisitions or purchase orders.
Specifying a journal source and category combination and selecting Yes
to Transfer Journals to this Secondary Ledger, instructs the General
Ledger Posting program to automatically transfer those journals to this
secondary ledger when they are posted in the source representation.
The journal source and category Other represents all other journal
sources and categories other than those explicitly defined.
•
To transfer the majority of journals to this secondary ledger, specify
Yes for the Other journal source and category and then selectively
choose No for the journal source and category combinations that
you do not want transferred.
•
If you do not want the majority of journals to be automatically
transferred to this secondary ledger, specify No for the Other
journal source and category and then selectively add those journal
source and category combinations that you do want transferred.
By default, journals using the journal sources described in the
following table are not automatically converted to the secondary
ledger using General Ledger Posting.
Journal Source
Journal Category
Transfer Journals to
Secondary Ledger
Move/Merge
Other
No
Move/Merge Reversal
Other
No
Revaluation
Other
No
This means that if you revalue balances in the source representation,
such as the primary ledger, the resulting journals are not transferred to
the secondary ledger. The same is true if you use MassMaintenance to
move or merge balances between accounts in the source representation.
For example, if moving or merging account balances in the primary
ledger, the resulting journal entries that use the source Move/Merge are
not automatically converted to the secondary ledger. The same rule
applies if reversing the Move/Merge journal entry. You must perform
the Move/Merge operation and Move/Merge reversal in the secondary
ledger separately.
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Run Revaluation separately in the secondary ledger. General Ledger
does not automatically convert the primary ledger's revaluation journal
to the secondary ledger.
By default, all other journal sources and categories are converted to the
secondary ledger as indicated by the Other journal source and category.
Special Note for Subledger Level Secondary Ledgers
For subledger level secondary ledgers, the journal sources for transaction sources that
use Subledger Accounting must be set to No in the Transfer Journals to this Secondary
ledger field. Any journal source that uses Subledger Accounting to generate its
accounting entries must not be converted to the secondary ledger using General Ledger
Posting because Subledger Accounting automatically performs the conversion for these
subledger journals.
Warning: If you incorrectly choose Yes in the Transfer Journals to this
Secondary Ledger field for any transaction source that uses Subledger
Accounting, the journal will be double-counted; once by Subledger
Accounting and once by General Ledger Posting. You will need to
reverse the journal in General Ledger.
Note: To find all transaction sources that integrate with Subledger
Accounting, query them in the Subledger Application form that is
accessed from the Subledger Accounting Setup menu.
Note: Subledger Accounting Options, page 3-63
Note: If integrating with transaction sources that do not use Subledger
Accounting and you want General Ledger posting to maintain journals
from these subledgers in the subledger level secondary ledger, do not
use Oracle's seeded journal sources. For example, if you use a
non-Oracle Receivables application, you can create your own journal
source for that application instead of using the seeded source
Receivables that is reserved for Oracle sources. If you use the seeded
source to import data from third party systems, those journals will not
be transferred to a subledger level secondary ledger when you post
them in the primary ledger.
Currency Conversion
If the primary and secondary ledger use different ledger currencies, currency
conversion rules are required to instruct the system on how to convert data from the
currency of the primary ledger to the currency of the secondary ledger.
Using Accounting Setup Manager
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Note: If both the primary and secondary ledgers use the same currency,
the currency conversion rules are not applicable.
For information on the Default Rate Type and Retain Transaction Rate Type options, see
the Journal and Subledger Level Reporting Currencies, page 3-47 table.
This section includes the following topics:
•
Primary Ledger as Source Representation, page 3-86
•
Reporting Currency as Source Representation, page 3-87
•
Using Reporting Currencies as Source Representations, page 3-92
•
Special Note for Subledger Level Secondary Ledgers, page 3-85
Primary Ledger as Source Representation
A secondary ledger receives its data from its source representation.
When the source representation is the primary ledger, it means that the primary
ledger's data is transferred directly to the secondary ledger.
When the source representation is a reporting currency that is assigned to the primary
ledger, then the data is transferred directly from the reporting currency to the
secondary ledger.
By default, the primary ledger is the source representation for all secondary ledgers,
except the balance level secondary ledger that uses a different currency from the
primary ledger. In this case, the source representation will always be the balance level
reporting currency of the primary ledger whose currency matches the balance level
secondary ledger.
When the source representation is the primary ledger, this is referred to as a one-step
conversion from the primary ledger.
Example
Assume you have a primary ledger and a journal level or subledger level secondary
ledger. The primary ledger's currency is CAD; the secondary ledger's currency is GBP;
and the Default Rate Type is Reporting.
An SGD foreign currency journal is entered in the primary ledger using the transaction
rate type of Spot.
The journal is first converted to the currency of the primary ledger using the transaction
rate type, Spot. When the journal is posted in the primary ledger, the Secondary
Ledger's Default Rate Type and Retain Transaction Rate Type settings determine how
the SGD entered journal is converted.
•
3-86
If Retain Transaction Rate Type is set to Yes, then the journal is converted from SGD
to GBP (the currency of the secondary ledger) using the transaction rate type, Spot.
Oracle Financials Implementation Guide
•
If Retain Transaction Rate Type is set to No, then the journal is converted from SGD
to GBP (the currency of the secondary ledger) using the Default Rate Type,
Reporting.
This example is shown in the figure below.
One-Step Conversion from Primary Ledger to Secondary Ledger
Reporting Currency as Source Representation
For journal level secondary ledgers only, you can choose to make the source
representation a journal level reporting currency that is assigned to the primary ledger.
For example, the source representation for a journal level secondary ledger can be a
journal level reporting currency.
Note: The currency of the journal level reporting currency must match
the currency of the secondary ledger.
This is referred to as a two-step conversion from the primary ledger. When data is
entered in the primary ledger, the data is first converted to the journal level reporting
currency and then transferred to the journal level secondary ledger, as described in the
figure below.
Using Accounting Setup Manager
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Two-Step Conversion from the Primary Ledger
This is useful if you are already using a journal level reporting currency for reporting
purposes. By using a journal level reporting currency as the source representation, you
can enter additional journal entries directly in the reporting currency to have them
propagated to the secondary ledger.
Note: The two-step conversion method is most suitable for companies
that require a reporting currency level of detail for the primary ledger.
When choosing a journal level reporting currency as the source representation, the
Default Rate Type and Retain Transaction Rate Type settings for the reporting currency
control the currency conversion of transactions to the secondary ledger. In other words,
the secondary ledger inherits the same settings as the reporting currency.
If choosing different settings for the secondary ledger, then those settings only affect
those journals that are entered directly in the journal level reporting currency.
Two-Step Currency Conversion from Primary to Secondary Ledger
Example
Assume you have a primary ledger, a journal level reporting currency that is assigned
to the primary ledger, and a journal level secondary ledger. The primary ledger's
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currency is CAD and the currency for both the secondary ledger and reporting currency
is GBP. The source representation for the secondary ledger is the reporting currency.
An SGD foreign currency journal is entered in the primary ledger using the transaction
rate type, Spot.
The following table lists the conversion rates for different currencies used in this
example.
From Currency
To Currency
Rate Type
Rate
SGD
CAD
Spot
1.50
SGD
CAD
Reporting
1.65
SGD
GBP
Spot
1.70
SGD
GBP
Reporting
1.75
The journal is first converted to the currency of the primary ledger, CAD, using the
transaction rate type, Spot, as described in the following table.
Primary Ledger Journal
Account
Entered Debit
(SGD)
01.6110
1000.00
01.2110
Entered Credit
(SGD)
Converted
Debit (CAD)
Converted
Credit (CAD)
1500.00
1000.00
1500.00
Upon posting the journal described in the preceding table, the same journal is converted
to the reporting currency based on the reporting currency's Default Rate Type and
Retain Transaction Rate Type settings.
If Retain Transaction Rate Type is set to Yes, then the journal is converted from SGD to
GBP using the transaction rate type, Spot.
The following table describes the journal entry that appears in both the reporting
currency and the secondary ledger.
Using Accounting Setup Manager
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Journal for Reporting Currency and Secondary Ledger
Account
Entered Debit
(SGD)
01.6110
1000.00
01.2110
Entered Credit
(SGD)
Converted
Debit (GBP)
Converted
Credit (GBP)
1700.00
1000.00
1700.00
If Retain Transaction Rate Type is set to No, then the journal is converted from SGD to
GBP using the default rate type, Reporting.
The following table describes the journal entry that appears in both the reporting
currency and the secondary ledger if the default rate type is used.
Journal for Reporting Currency and Secondary Ledger
Account
Entered Debit
(SGD)
01.6110
1000.00
01.2110
Entered Credit
(SGD)
Converted
Debit (GBP)
Converted
Credit (GBP)
1750.00
1000.00
1750.00
Journals Entered Directly in the Reporting Currency
If entering a journal directly in the reporting currency, the same journal may or may not
be copied exactly as is to the secondary ledger. It depends on the Default Rate Type and
the Retain Transaction Rate Type settings for the secondary ledger.
•
If Retain Transaction Rate Type is set to Yes, then the journal entered in the
reporting currency is copied directly from the reporting currency to the secondary
ledger.
The entered amounts and the converted amounts are exactly the same for the
reporting currency and the secondary ledger.
•
If Retain Transaction Rate Type is set to No, then the journal is converted to the
secondary ledger using the Default Rate Type.
Example
Assume you have a journal level reporting currency that is the source representation for
a journal level secondary ledger. The default rate type assigned to the secondary ledger
is Reporting. The currency for both the reporting currency and secondary ledger is GBP.
The following table lists the conversion rates for different currencies used in this
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example.
From Currency
To Currency
Rate Type
Rate
SGD
GBP
Spot
1.70
SGD
GBP
Reporting
1.75
The SGD foreign currency journal described in the following table is entered in the
reporting currency using the transaction rate type, Spot
Journal Entered in Reporting Currency
Account
Entered Debit
(SGD)
01.6110
1000.00
01.2110
Entered Credit
(SGD)
Converted
Debit (GBP)
Converted
Credit (GBP)
1700.00
1000.00
1700.00
Upon posting the journal in the journal level reporting currency, the same journal is
converted to the secondary ledger based on the secondary ledger's Default Rate Type
and Retain Transaction Rate Type settings.
•
If Retain Transaction Rate Type is set to Yes, then the journal is copied directly to
the secondary ledger.
•
If Retain Transaction Rate Type is set to No, then the journal is converted using the
Default Rate Type, Reporting.
The following table describes the journal entry that appears in the secondary ledger if
Retain Transaction Rate Type is set to No.
Journal for Secondary Ledger
Account
Entered Debit
(SGD)
01.6110
1000.00
01.2110
Entered Credit
(SGD)
Converted
Debit (GBP)
Converted
Credit (GBP)
1750.00
1000.00
1750.00
Using Accounting Setup Manager
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Using Reporting Currencies as Source Representations
To use a journal level reporting currency as the source representation for a journal level
secondary ledger, perform the following tasks:
1.
Define a journal level reporting currency for the primary ledger.
Note: A journal level secondary ledger can only have the primary
ledger or a journal level reporting currency as its source
representation.
2.
Choose the reporting currency to be the source representation in the Primary to
Secondary Ledger Mapping page.
3.
Specify currency conversion rules.
4.
Specify journal conversion rules.
The journal conversion rules specified for the secondary ledger should be the same
as the journal level reporting currency, but you can change them for the secondary
ledger in the Primary to Secondary Ledger Mapping page.
You can choose to transfer selected journals that use different sources or categories
from the reporting currency to the secondary ledger. For example, you can choose
to transfer only a subset of journals from the reporting currency to the secondary
ledger by making the journal conversion rules more restrictive for the secondary
ledger.
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Completing the Primary to Secondary Ledger Mapping
Prerequisites
The following prerequisites are required to complete the primary to secondary ledger
mapping step:
•
A chart of accounts mapping must be defined in General Ledger if the secondary
ledger uses a different chart of accounts
Note: Mapping Charts of Accounts, Oracle General Ledger User Guide
Using Accounting Setup Manager
3-93
•
A secondary ledger must be assigned to a primary ledger.
•
The reporting currencies assigned to the primary ledger must be completely
defined.
Note: Assigning Reporting Currencies to Ledgers, page 3-46
•
The ledger options for the secondary ledger must be completely defined.
Note: Completing Ledger Options, page 3-32
To complete the primary to secondary ledger mapping
Note: This step is required to complete the accounting setup.
1.
In the secondary ledger regions of the Accounting Options page, click the Update
icon for the Primary to Secondary Ledger Mapping step.
2.
Specify the following:
•
Chart of Accounts Mapping
This mapping is used to convert data from the primary ledger's chart of
accounts to the secondary ledger's chart of accounts. If a mapping is not
defined, click Create Mapping.
Note: You must assign a mapping if your primary and
secondary ledgers use different charts of accounts.
Note: You cannot change the mapping assigned after the
accounting setup is complete.
Note: Mapping Charts of Accounts, Oracle General Ledger User
Guide
•
currency conversion rules
The options in the following table pertain to balance level secondary ledgers
only.
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Oracle Financials Implementation Guide
Balance Level Secondary Ledgers Currency Conversion Options
Options
Description
Source Representation
When transferring balances using GL Consolidation, the
source representation acts as the source of the balances.
If the secondary ledger's currency is different from the
primary ledger, the name of the primary ledger's balance
level reporting currency defaults and cannot be changed.
•
Currency
Currency of the source representation defaults
Period End and Period
Average Rate Type
The period end and period average rate types are used
by General Ledger's Translation program. These rate
types are used to translate balances from the primary
ledger's currency to the balance level reporting currency
that is used as the source representation for the
secondary ledger. These rate types should be the same as
the source representation.
journal conversion rules for subledger level and journal level secondary ledgers
The following table describes currency conversion options for journal and
subledger level secondary ledgers that use a different currency from the
primary ledger.
Journal and Subledger Level Secondary Ledgers Currency Conversion Options
Option
Description
Source Representation
Acts as the source of the data that is transferred to the
secondary ledger. The primary ledger defaults. For
journal level secondary ledger the source representation
can be a journal level reporting currency that is assigned
to the primary ledger.
Note: The source representation cannot be changed
after completing the accounting setup.
Using Accounting Setup Manager
3-95
Option
Description
Default Rate Type
The conversion rate type to use to retrieve exchange
rates for converting transactions from the primary ledger
to this secondary ledger. The Default Rate Type works
with the Retain Transaction Rate Type field. If you
choose not to retain the same rate type that was used to
convert the original transaction, then the Default Rate
Type is used instead.
For the default rate type, specify your own conversion
rate type or choose one of the predefined rate types. To
specify your own, first define it in General Ledger.
Note: Defining Conversion Rate Types, Oracle General
Ledger User's Guide
Note: If the source representation is a reporting
currency this value should be the same as the
reporting currency.
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Oracle Financials Implementation Guide
Option
Description
Retain Transaction Rate
Type
Controls the conversion rate type the system should use
to convert transaction currency amounts from the source
representation to this secondary ledger.
•
If you select Yes, then the conversion rate type used
to enter the original journal is used to convert the
same journal to this secondary ledger.
•
If you select No, then the default rate type assigned
in the Default Rate Type field is the one used to
convert journals to this secondary ledger.
Note: If the source representation is a reporting
currency, the currency conversion rules should be the
same as the reporting currency. If the currency
conversion rules are different, then the rules defined
for the secondary ledger will only apply to journals
that are entered directly in the reporting currency and
converted to this secondary ledger. They will not
apply to journals that originate in the primary ledger.
The Retain Transaction Rate Type option is ignored if the
following conditions exist:
•
An EMU fixed rate relationship exists between the
transaction currency and the currency of the
secondary ledger.
In this case, the EMU Fixed conversion rate type is
used.
•
The transaction currency is the same as the currency
of the source representation, such as the primary
ledger.
In this case, a conversion rate type does not exist for
the transaction and the default rate type is used.
•
The transaction currency is the same as the currency
of the secondary ledger.
In this case, the User conversion rate type is used
with a default rate of 1.
Using Accounting Setup Manager
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Option
Description
•
A User rate is used for the transaction.
In this case, the User conversion rate type is used.
The secondary ledger conversion is done in two
steps using the default rate type assigned to the
secondary ledger.
If Missing Conversion
Rate
Controls what the system should do if it cannot find a
conversion rate as of the conversion date
•
If Report an Error is selected, the system reports an
error and prevents journals from being posted in the
source representation.
Specify a rate to successfully convert journals
entered in the source representation to this
secondary ledger.
•
If Use Last Rate is selected, the system uses the last
rate that was defined for a particular rate type if it
cannot find a currency conversion rate.
If enabled, specify a number for the Number of Days
to Find the Last Rate.
Note: If the source representation is a reporting
currency, this option should be the same as the
reporting currency.
Number of Days to Find
Last Rate
If Use Last Rate is selected, enter a number from 1 to 999.
This number indicates how many days back in time the
system should look to find a rate.
Note: If a number is not entered, it adversely affects
system performance.
Note: If the source representation is a reporting
currency, this option should be the same as the
reporting currency.
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Option
Description
Post Journals
Automatically from
Source Ledger
Controls the automated posting of journals.
Retain Journal Creator
from Source Ledger
•
If Yes is selected, journals will be automatically
posted in the secondary ledger when posted in the
source representation.
•
If No is selected, you must post journals separately
in the secondary ledger.
Controls the Created By user information that can be
viewed for each journal using Tools > Examine.
•
If Yes is selected, the person who entered the journal
in the source representation is retained as the
Created By user.
•
If No is selected, the person who posted the journal
is saved as the Created By user.
Using Accounting Setup Manager
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4
Defining Legal Entities Using the Legal
Entity Configurator
This chapter covers the following topics:
•
Overview
•
Using the Legal Entity Configurator
Overview
The Legal Entity Configurator allows you to define legal entities and establishments in
the Oracle system to achieve legal compliance for business activities handled by the
Oracle E-Business Suite.
Legal Entities Setup Information
Before setting up legal entities, you must complete the following setup steps:
1.
Complete setup for the E-Business Suite
Note: E-Business Tax is dependent on Legal Entities setup to
complete its setup. Legal Entities setup is not dependent on
E-Business Tax setup.
2.
Optionally set up customer flexfields
Legal entities setup includes the following steps:
1.
Define the Default Country profile option.
2.
Define the LE: Generate Legal Entity Identifier profile option. See: Generating the
Legal Entity Identifer, page 4-5.
Defining Legal Entities Using the Legal Entity Configurator
4-1
3.
Define the HZ: Generate Party Number profile option.
4.
Define the LE: Change Effectivity profile option.
5.
Define jurisdictions. See: Creating and Updating Jurisdictions, page 4-17
6.
Optionally define authorities See: Creating and Updating Legal Authorities, page 418
7.
Define legal entities. See: Creating Legal Entities, page 4-6.
8.
Assign legal entities to ledgers using the Accounting Setup Manager. See:
Accounting Setup Manager, page 3-1
9.
Define additional registrations for legal entities if required. See: Creating
Registrations, page 4-14.
10. Define establishments. See: Creating Establishments, page 4-9.
11. Define additional registrations for establishments if required. See: Creating
Registrations, page 4-14.
12. Optionally define associated business entities. See: Legal Associations, page 4-5
13. Optionally define balancing segments for establishments.
Legal Entity Reporting
Legal Entity Reporting enhances the reporting capabilities of Oracle Applications
products by allowing you to report at the legal entity level. Legal reports filter the data
based on the legal entity stamped on the transactions (for example, AP Invoices, AR
Transactions, etc.) or based on the ledger/balancing segment value that is associated
with a legal entity through the Accounting Setup Manager.
When reporting by the legal entity, you can submit the report for all legal entities even
if the MO: Security Profile profile option does not include all operating units.
Legal Entities
A legal entity is a clearly identified entity, which is given rights and responsibilities
under commercial law, through registration with the country's appropriate legal
authority. These rights and responsibilities are enforceable through the judicial system.
A legal entity generally has the right to own property and trade, and the responsibility
to repay debt and comply with labor law. Legal entities are responsible to account for
themselves to company regulators, taxation authorities, and owners according to rules
specified in the relevant legislation.
The legal entity belongs to the organization's own corporate legal structure (enterprise).
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Oracle Financials Implementation Guide
The legal entity is referred to as the internal legal entity and is the initiator and owner of
a given transaction.
Establishments
Establishment is the generic term used to refer to the building blocks of legal entities.
Each legal entity is made up of at least one establishment. These 100 percent owned and
controlled entities can also be referred as branches, divisions, establishments (domestic
or foreign), inventory organizations, physical locations (for example, manufacturing
plants and warehouses). They can be a physical (address) or logical (specific activity)
subdivision of the legal entity.
In many countries, establishments need to be registered with local regulatory bodies
and may have their own activity codes (such as the NACE code in Europe or the SIC
code in the U.S.). Dun & Bradstreet (D&B) have DUN numbers for them as well. They
have significant existence (their own address, often supporting local taxes and
regulations, in some countries a threshold of number of employee per site), or
significant business autonomy (may have their activity code, their own budget, handle
their own bank accounts). They are not liable to the outside world (cannot be sued
separately in court). They support or represent local or distant registrations of the legal
entity. They also represent autonomous business units.
To fulfill registration requirements in some countries at a local level, a legal entity must
register a main establishment. For this reason, the main establishment is created
automatically when you create a legal entity. While establishments may or may not be
located in the country of the legal entity, the main establishment is always located in the
country of the legal entity. It is the main site (location) of a legal entity, which supports
specific duties related to coordinating business operations and compliance with
legislation and reporting needs for the legal entity.
Registration
Company registration is done in accordance with a particular legislation (commercial
law, income tax law, civil law, company law, etc., depending on the country). It is the
backbone of all other legal obligations a company must fulfill. This registration confers
the status of legal entity and therefore, the right to do business in a territory (often a
country). To comply with the law in the territory of its operations, a legal entity may be
required to register with different legal authorities depending on its activity. However,
company registration is the first registration to gain official recognition to qualify for
other registrations. In some countries, additional registrations may be required for
establishments of the legal entity. Registration information can be used on financial
statements and legal reports.
Note: Create Registration Page, page 4-14
Defining Legal Entities Using the Legal Entity Configurator
4-3
Jurisdictions
All legal entities must be registered against a jurisdiction that is governed by a legal
authority. A jurisdiction is a combination of the legislative category (labor law,
transaction tax law, income tax laws, etc.) and the physical territory (group of countries,
country, state, county, parish) to which legal rules are grounded. A tax jurisdiction is a
geographic area where a tax is levied by a specific tax authority, for example, the tax
jurisdiction for Goods and Services tax in Singapore is the country of Singapore.
You need to set up jurisdictions before creating registrations because a jurisdiction is
required when creating a registration. For some countries, at least one jurisdiction is
seeded: the identifying jurisdiction. Users will have the ability to create additional
jurisdictions for other registrations.
The identifying jurisdiction is usually the first jurisdiction that the legal entity must
register with, in order to be recognized in its territory. Because registrations to this
jurisdiction may not be used in Oracle Applications, the identifying jurisdiction may be
another jurisdiction that is commonly used within a country.
The registration to the identifying jurisdiction of the legal entity territory is called the
identifying registration.
The jurisdiction can also capture the registration code or the name of the registration
number. The registration code can then be used as the prompt for the registration
number given the context of the jurisdiction. The jurisdiction will also have a start date
and end date to show when the jurisdiction is effective and when you can register
against the jurisdiction.
When a legal entity or establishment registers with a jurisdiction, there may be a set of
functions that it needs to perform, such as payment or income tax declaration. Legal
functions can be pre-defined in the jurisdiction to facilitate the registration process.
When a registration is created, the specific functions of the jurisdiction can be assigned
to the legal entity or establishment. Legal functions that are defined as required on the
jurisdiction are by default assigned to the legal entity or establishment during
registration.
Legal Authorities
A legal authority is a governing legal body that operates within a jurisdiction. The legal
authority is responsible for enforcing legislation, collecting fees and taxes, and making
financial appropriations within a given physical area for a type of law. For example, the
Internal Revenue Service is the legal authority for income tax law in the US..
When a legal entity registers under a given jurisdiction, it may be related to a legal
authority that is governing in that jurisdiction. Legal authority information is used on
legal reports and financial statements in some countries and is determined by the
legislation of the jurisdiction. Defining a legal authority is not required for a legal entity
to transact and therefore, is not required to create a registration.
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A legal authority is associated with a jurisdiction because it has authority over the legal
entities that are registered with the jurisdiction. The relationship between the legal
authority and the jurisdiction is formed when you create a legal entity registration. Each
registration is made to a jurisdiction and each registration can identify an issuing legal
authority.
In some countries, the legal authority has executive responsibility over several
legislative categories. All of these legislative categories can be assigned to the legal
authority. Legal authorities are defined according to your company's preferences. For
example, you can create one authority per office or one authority for multiple offices.
Legal Associations
Legal Associations is a set of components that aims to provide a centralized repository
and a common mechanism for maintaining associations between business entities
(non-legal constructs) and legal constructs (legal entities, establishments) and between
just legal constructs. You can also use Legal Associations to maintain associations
between balancing segment values and establishments for some countries.
When dealing with associations with establishments, these components are integrated
into the Establishment Details page so that you can create associations between various
attributes (such as Operating Unit/ Inventory Organization /Inventory Location /
Ship-to and Bill-to Location) to establishments. These associations are mainly used by
e-Business Tax as a component for tax calculations.
Associations are based on seeded cardinality rules, so it is possible to associate the same
operating unit, inventory organization, and location to different establishments, even if
they belong to different legal entities.
E-Business Tax needs the establishment information to determine what the imposed tax
will be based on information present at the time of entry/creation of the transaction.
Determining the establishment is necessary as it is the connecting entity that would
determine tax registration and the other relevant details to determine tax.
Generating the Legal Entity Identifier
Use the XLE: Generate Legal Entity Identifier to set the Legal Entity Configurator to
automatically generate the legal entity identifier. If you set this profile option to Yes, the
legal entity identifier is generated automatically. If you set it to No, you must enter the
legal entity identifier manually. The default is No.
Note: Create Legal Entity Page, page 4-6
Using the Legal Entity Configurator
Use the Legal Entity Configurator to search for existing legal entities, jurisdictions, and
legal authorities; create and update legal entities, establishments, registrations, legal
Defining Legal Entities Using the Legal Entity Configurator
4-5
addresses, jurisdictions, and legal authorities; and create legal entities from existing
organizations.
Using the Legal Entity Home Page
From this page you can:
•
View and update the five most recent legal entities created
•
View and update the five most recent registrations
•
Search for legal entities by legal entity name or legal entity identifier
•
Create a legal entity
Searching for a Legal Entity
In the Legal Entities tab, you can use the Legal Entity Simple Search and Advanced
Search pages to search for existing legal entities. From these pages you can:
•
Query on existing legal entities or establishments and update them
•
Create a new legal entity or establishment
•
Configure an existing organization to be a legal entity or establishment
The results table at the bottom of the page includes existing legal entities, their
establishments, and existing organizations that are not classified as a legal entity or an
establishment. A selected organization can be configured as a legal entity or an
establishment by navigating to the Organization Details page and using the Configure
as Legal Entity or Configure as Establishment buttons.
Creating a Legal Entity
Create legal entities with minimum required information using the Create Legal Entity
page.
If you create a legal entity from an existing organization, the country, organization
name, and organization number are defaulted from the organization. In this case, the
organization number is not updatable even if the HZ: Generate Party Number profile
option is set to No.
When you create a legal entity, the main establishment is created automatically. The
legal entity territory, name, address, effective date, and other information are defaulted
to the main establishment. The establishment inherits the registration number of the
legal entity only if the establishment does not have it own number.
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Oracle Financials Implementation Guide
Some of the key fields are:
•
Territory: The territory where the legal entity is registered. This list displays
territories at the country level and shows only territories for which the identifying
jurisdiction has been defined. Therefore, the territory determines the identifying
jurisdiction to which the legal entity needs to register. The territory also determines
the context for the information that needs to be displayed in the General
Information region.
•
Organization Number: The organization number is a number used to identify
organizations. This field is displayed only when the HZ: Generate Party Number
profile option is set to No. In this case, the main establishment organization number
is built as a concatenation of the legal entity organization number and ETB
(establishment). Otherwise it is not displayed and is generated automatically. For
example, if the legal entity organization number entered is 12536, the
establishment's organization number will be 12536ETB.
Note: Oracle Trading Community Architecture User Guide
•
Legal Entity Identifier:The identification number used to uniquely identify the
legal entity. It is displayed only when the LE: Generate Legal Entity Identifier
profile option set to No and you must enter it manually. If this option is set to Yes,
the legal entity identifier is generated automatically based on the International
Defining Legal Entities Using the Legal Entity Configurator
4-7
Organization for Standardization (ISO) code of the country of registration, plus the
registration number of the identifying jurisdiction, which qualifies an entity to be a
legal entity in that particular territory.
For example:
Example
Territory: Singapore
ISO Country Code: SG
Registration number of the identifying jurisdiction (RCN number) = 23231 (this is a
user enterable field)
If the profile option is set to Yes, the legal entity identifier will be SG23231,
otherwise you are required to enter the legal entity identifier manually. If you enter
an identifier that is not unique, an error message will be displayed.
Note: Generating the Legal Entity Identifier, page 4-5
•
Registration Number: The identifying jurisdiction determines the prompt for the
registration number (in the U.S., the EIN/TIN). The Establishment registration
prompt is displayed if it is defined for the identifying jurisdiction. In this case the
main establishment is created with this registration number. The registration
number must be unique within a jurisdiction.
•
Legal Address:
The address a legal entity uses to register with a legal authority. A legal entity may
use different addresses for different authorities and hence, may have more than one
registered address. This legal address must be located within the territory entered.
•
4-8
General Information region.: This region displays the following information:
•
Place Of Registration: Optionally enter the place of the legal entity registration.
•
Inception Date: Optionally enter the date of legal entity registration (creation).
It can be on or before the system date and on or after legal entity's inception
date but must not be a future date.
•
Additional fields that becomes available in the context of the country: Type
of Company, Business Activity,(for example, NACE for Ireland, NAICS for the
U.S. (previously was SIC Code), and APE for France), Share Capital, Currency,
Fiscal Year End. These attributes are optional and implemented as the Legal
Entity Context Information developer flexfield, which is not updatable. The
Type of Company and Business Activity fields and seeded LOVs may be named
differently in the context of particular territories of the legal entity.
•
Context Value: Users are allowed to define additional attributes using the
Oracle Financials Implementation Guide
Additional Legal Entity Information customer flexfield. The Context Value field
is a drop down list that contains context field value names defined for this
flexfield. Select an appropriate context to enter additional legal entity
information.
Creating Establishments
Create establishments with minimum required information using the Create
Establishment page.
If you create an establishment from an existing organization, the organization name and
number are defaulted from the organization. The organization number is not
updateable in this case, even if the HZ: Generate Party Number profile option is set to
No.
If no jurisdictions are set up for the territory selected, the registration information (the
registration number and address) is not required and is not displayed. Otherwise, the
registration information is required and displayed. Additional establishments are
required only in countries where another legal entity location needs to registered with
legal authorities (for example, India, Brazil, and Germany). These establishments may
or may not be located in the legal entity's country. Establishments, including main
establishments, may follow different sets of rules if they do business in different
activities or are located in different areas.
You cannot create a new main establishment from the Create Establishment page. To
create a new main establishment, you must create a new establishment, then change the
main establishment.
Note: Only the legal entity is stamped on transactios headers.
Establishments can instigate, initiate, and control a transaction, but the
ownership of a transaction lies with the legal entity. In one transaction,
each line can refer to different establishments.
Defining Legal Entities Using the Legal Entity Configurator
4-9
Key fields are:
4-10
•
Territory: The territory in which the establishment is registered. It can be different
from the legal entity's territory. The selected territory determines the jurisdiction to
which the establishment needs to register and the context of the information that is
displayed in the General Information region. The jurisdiction determines the
prompt for the registration number. If there is no jurisdiction for this territory or it
has no establishment registration code set up, then the establishment is created
without registration information (without a registration record).
•
Parent Legal Entity: Available only when an establishment is created from an
existing organization. Select the parent legal entity to which the establishment
belongs.
•
Organization Number: The organization number is used to identify organizations.
It is displayed only when the HZ: Generate Party Number profile option is set to
No. Otherwise it is not displayed and is generated automatically.
•
Registration Number: The jurisdiction determines the prompt(s) for the registration
number(s). The establishment registration number prompt is displayed if it is set up
for the jurisdiction. If it is not set up or there is no jurisdiction set up for this
territory, the Registration Number field is not available. The registration number
must be unique within a jurisdiction.
•
Legal Address: You can create a new address or use an existing one. The legal
address must be located within the territory. This field is not available if there is no
Oracle Financials Implementation Guide
jurisdiction for this territory or the jurisdiction has no Establishment Registration
Code setup.
•
General Information region:This region displays the following information:
•
Inception Date: Optionally enter the date of the establishment registration
(creation). It can be on or before the system date and on or after legal entity's
inception date but must not be a future date.
•
Additional fields that become available in context of the country: Type of
Company, Business Activity, and Secondary Activity. These attributes are
optional and implemented as the Establishment Context Information developer
flexfield. This field is not updatable. The Type of Company and Business
Activity may be named differently and have different seeded LOVs in the
context of a particular territory.
•
Context Value: Define additional attributes using the Additional Establishment
Information customer flexfield. The Context Value field is a drop down list that
contains Context Field Value names defined for this flexfield. Select an
appropriate context to enter additional establishment information.
Note: Registration, page 4-3, Create Registration Page, page 4-14, and
Establishments, page 4-3.
Configuring an Organization as a Legal Entity or Establishment
You can configure an existing organization (party) to be either a legal entity or an
establishment. To search for organizations that can be configured as either a legal entity
or an establishment:
1.
At the Legal Entities Search page, enter your search criteria and set the Transacting
Entity field to No or blank to have all the organizations with Legal Type n/a listed.
2.
View the details of the organization you chose.
3.
At the Organization Details page, click Configure as Legal Entity or Configure as
Establishment.
4.
Enter required information. For an establishment, select a legal entity in the parent
legal entity.
5.
Optionally add additional details to the legal entity or establishment.
Updating Legal Entities
Use this page to:
Defining Legal Entities Using the Legal Entity Configurator
4-11
•
Update/add legal entity information
•
Create additional or modify registrations for the legal entity
•
Create establishments for the legal entity
Related Topics
Updating Legal Entities Details, page 4-12
Updating Legal Entities Details
Use the Legal Entities Details page to add and update legal entity details.
Selected fields are:
•
General subtab: View identifying information, such as the legal entity name,
identifier, organization name, organization number, additional legal entity
information. You can also end date a legal entity here by entering the end date and
view and update transaction tax profile information.
•
Registrations subtab: View and update registration information.
•
Establishments subtab: View and update establishment information. From this
subtab you can create a new establishment or change the main establishment.
•
Contact Information subtab: From this subtab, you can view contact information
and create, update, and remove contacts and addresses.
•
Intercompany Exceptions subtab: It is assumed that all legal entities can have an
intercompany relationship with any legal entity. This page lists any legal entities
that cannot have an intercompany relationship with the legal entity being created or
updated. Click Update to add or remove intercompany exceptions. When adding an
intercompany exception, a TCA relationship is created between the legal entity that
is being created/updated and the selected legal entity.
•
History subtab: This subtab provides an audit trail of changes to the legal entity's
registration, including the effective date the changes were made, administrative
information such as the user who made the change, the reference number for the
record change, and the reason for the change. This subtab is view only and cannot
be updated. In addition, you can personalize the table display as needed (for
example, hide the Change By or Effective Dates columns) using personalization.
Access to the View History page can be restricted by roles via permission sets.
Note: You can enter effective dates that appear in the History
subtab only if the LE: Change effectivity profile option is set to Yes.
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Updating Establishments
Use the Establishments Details page to add and update establishment details
Note: You cannot update the organization number if it was generated
automatically.
Use the Establishment Details page to view, add, and update establishment details.
•
General subtab: View identifying information, such as the establishment name,
organization name, organization number, and additional establishment
information. You can also end date an establishment and view and update
transaction tax profile information.
•
Registrations subtab: View, create, and update establishment registrations.
Note: Creating Registrations, page 4-14 and Updating
Registrations, page 4-15
•
Contact Information subtab: From this subtab, you can view contact information
and create, update, and remove contacts and addresses.
•
History subtab: You can view any changes that have been made to the
establishment registrations. This subtab is view only and cannot be updated. In
addition, you can personalize the table display as needed (for example, hide the
Change By or Effective Dates columns) using personalization. Access to the View
History page can be restricted by roles via permission sets.
•
Associated Business Entities subtab: This subtab provides functionality to maintain
associations between the following types of business entities and the establishment
that is being updated:
•
Operating unit
•
Ship-to location
•
Bill-to location
•
Inventory organization
•
Inventory location
These associations are built on the base of the Legal Associations feature and are
maintained mainly for purposes of tax calculation.
•
Balancing Segments subtab: This subtab is available in the context of particular
Defining Legal Entities Using the Legal Entity Configurator
4-13
countries, such as France and Brazil. It provides functionality to associate one or
multiple balancing segment values (BSVs) to an establishment to meet the legal
reporting requirements of these countries (such as DAS2 in France). To assign BSVs
to the establishment, make sure that a primary ledger has been assigned to the legal
entity. Use the GL Accounting Setup Manager to associate a primary ledger to the
legal entity. You can view, add, or end date the BSV association using this subtab.
These assignments are built on the base of the Legal Associations feature. The same
BSV can be mapped to only one establishment.
Note: Establishments, page 4-3 and Accounting Setup Manager, page 3-
1.
Creating Registrations
To create additional registration(s) for legal entities or establishments, use the Create
Registration page.
Key fields are:
•
4-14
Jurisdiction: Enter the jurisdiction to which the legal entity/establishment needs to
add an additional registration. Use the search icon to select jurisdictions on
territories other than the base territory to which the legal entity/establishment is
registered.
Oracle Financials Implementation Guide
•
Registration Number:The registration number prompt is displayed based on the
jurisdiction selected. For example: Employer Identification Number (EIN/TIN) may
be the registration number prompt that is displayed in the context of the United
States Income Tax jurisdiction for legal entities. SIRET may be the registration
number prompt that is displayed in the context of the French Income Tax
jurisdiction
If the Establishment Registration Code has not been set for the jurisdiction, then the
prompt Registration Number is displayed for establishments.
•
Registration Effective From: Optionally enter the effective start date of the
registration. It must be after the inception date of the legal entity/establishment.
•
Registration Effective To: Optionally enter the effective start date of the
registration. It must be before the end date of the legal entity/establishment.
•
Context Value: You can define additional attributes using the Additional
Registration Information customer flexfield. The Context Value field is a drop down
list that contains Context Field Value names defined for this flexfield. Select an
appropriate context to enter additional registration information.
•
Registered Address: Select or create the registered address for this registration.
The registered address is limited to the territory of the jurisdiction.
•
Legal Functions region: The legal entity/establishment may have to perform
certain functions, such as payment or reporting. Legal functions are pre-defined in
the jurisdiction to facilitate the registration process. Legal functions that are defined
as required on the jurisdiction are assigned to the legal entity/establishment
registration by default. Optionally add to the registration the legal functions that
are not defined as required. Some legal functions may indicate specific legal
authorities that are used when the function is performed. An appropriate legal
authority can be assigned to each legal function.
Updating Registrations
Use the Update Registration page to update legal entity/establishment registration
information.
This page is similar to the Create Registration page, except that the Update Registration
page has the Change Effectivity region that becomes available when the LE: Change
effectivity profile option is set to Yes.
Note: Profile Options Overview, page B-1
Key fields are:
Effective From: Enter the effective from date for the updated registration attribute(s).
This date is tracked under the History tab of the legal entity/establishment. It is
Defining Legal Entities Using the Legal Entity Configurator
4-15
defaulted to the system date. This field is updatable and must not be a future date.All
updated attributes of a legal entity/establishment registration are shown under the
History tab of the legal entity/establishment.
Note: Creating Registrations, page 4-14
Changing the Main Establishment
The main establishment can be changed from one establishment to another. To move a
main establishment you must select a replacement establishment. The registrations on
the old main establishment will not be transferred to the new main establishment
because registrations typically need to be requested again from the legal authority. For
some countries, the registrations on the old and new main establishments will need to
be re-classified as a result of this change.
In some countries (for example, the U.S. and France), the legal address is the main
establishment address. When the legal entity moves its main establishment from one
establishment to another, its registered address is modified. The new main
establishment must have been created as an additional establishment before this
transfer can apply. You select the establishment that will become the new main
establishment and enter the date of transfer. The date can be today's date, a date in the
past, or a date in the future.
To change a main establishment:
1.
From the Legal Entity Details page, navigate to the Establishments subtab and click
Change Main Establishment .
2.
Enter a start date and select a replacement establishment in the Establishment table.
From the start date, the establishment selected becomes the new main
establishment. The start date must be within the new main establishment inception
date and end date.
If you set End Date Current Main Establishment to Yes then your current main
establishment will be closed and become inactive. If you set End Date Current Main
Establishment to No, the establishment will still be active but will no longer be a main
establishment.
Setting Up Legal Addresses
Use this page to maintain addresses that can be selected as legal/registered addresses
when you create a legal entity.
Searching for a Jurisdiction
In the Setup tab, Jurisdiction subtab, use the Jurisdiction Search page to search for
existing jurisdictions.
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From this page you can:
•
Search for jurisdictions by attributes such as name, legislative category, or territory
•
Navigate to the Create Jurisdictions page and create a jurisdiction with the
legislative category you chose
•
Navigate to the Update Jurisdiction page and update jurisdiction attributes
Creating and Updating Jurisdictions
To create a jurisdiction:
1.
On the Jurisdiction Search page, choose the legislative category in the drop down
box next to Create Jurisdiction: Legislative Category and click Go.
2.
On the Create Jurisdiction page, enter the territory, name, and whether or not the
jurisdiction is an identifying jurisdiction.
3.
Optionally enter effective dates.
Key fields are:
General Information region:
•
Identifying: Indicates whether the jurisdiction is an identifying jurisdiction.
Note: You cannot create a legal entity if there is no identifying
jurisdiction for the territory
•
Registration Code: The legal entity or establishment registration codes determine
validation of the registration number for some countries. For all countries, the
registration number is validated for uniqueness within a jurisdiction. For the
identifying jurisdiction the legal entity registration code is mandatory and is always
set to Yes for the corresponding Display on Create field. If you enter the
establishment registration code, the corresponding Display on Create field becomes
mandatory and you can select Yes or No.
Legal functions region:
•
This region allows you to relate specific legal functions for a given jurisdiction. You
select the legal functions in a list of values. In addition, you can choose to display
the legal function during the registration process for legal entities and
establishments.
To update a jurisdiction:
•
Search for a jurisdiction and click the update icon to open the Update Jurisdiction
page and update the jurisdiction using the same procedure you use to create a
Defining Legal Entities Using the Legal Entity Configurator
4-17
jurisdiction.
Creating and Updating Legal Authorities
Use the Create Legal Authorities page to create legal authorities with minimum
required information.
To create legal authorities:
1.
Enter the organization name and any other identifying information.
2.
Enter address information.
Key fields are:
Identification Information region
Organization Name: The name of the organization.
Organization Number: This field uniquely identifies internally the organization. It is
generated automatically or entered manually, depending on the setting of the HZ:
Generate Party Number profile option.
Alias (optional): Enter the alternate name of the legal authority. This field can be used
to enter the authority name in a different character set.
Pronunciation (optional): For countries where there is a different character set such as
Japan, enter the legal authority name phonetically.
Address region:
Use the Address region to enter an address for the legal authority. Click on Save and
Add Details to create contact persons and/or create additional addresses for other legal
authority offices.
To update a legal authority:
4-18
1.
Search for a legal authority and click the update icon and update the legal authority
using the same procedure you use to create a legal authority.
2.
Navigate to the General subtab and click the Update button to update identification
information or to add/remove a legislative category.
3.
Navigate to the Contact Information subtab. You can create/update/remove a
contact person in the Contacts region. You can create/update/remove an authority
address in the Address region.
Oracle Financials Implementation Guide
5
Intercompany and Intracompany Balancing
This chapter covers the following topics:
•
Overview
•
Intercompany Balancing
•
Intracompany Balancing Rules
•
Intercompany Balancing Engine
Overview
When transactions occur between two related legal entities in an intercompany
organization or between two groups in the same legal entity, the resulting balances
from these transactions must be eliminated or appropriately adjusted during the
preparation of the organization's consolidated financial statements. Failure to properly
eliminate these intercompany transactions can result in erroneous and overstated
financial results including activities between related parties and can lead to legal
repercussions.
To efficiently identify and eliminate intercompany transactions at the close of an
accounting period, most organizations use specific accounts to book these transactions.
This facilitates the consolidation process by segregating all intercompany accounting
into specific accounts. You should define intercompany accounts as part of the chart of
accounts setup process. Identifying these accounts allows your organization to book
transactions identified as intercompany transactions into the special accounts. You
should also define any accounts you want to use for intracompany balancing during
implementation.
There are two types of solutions to address intercompany and intracompany accounting
needs:
•
Intercompany accounting for transactions performed between separate legal entities
that belong to the same corporate enterprise.
Intercompany and Intracompany Balancing
5-1
•
Intracompany balancing for journals that involve different groups within the same
legal entity, represented by balancing segment values. A group could be a profit
center, manufacturing plant, a warehouse, a cost center, or any other organization
that represents a subset of a legal entity. Often, these transactions pass through a
clearing organization, which is also represented by a balancing segment value.
Intercompany Setup Information
Before setting up intercompany accounts and intracompany balancing rules, you must
complete the following setup steps:
•
Set up General Ledger
•
Set up legal entities
Note: Creating Accounting Setups, Oracle Financials Implementation
Guide
Intercompany setup includes these steps:
•
In Accounting Setup Manager, select Enable Intracompany Balancing in the Update
Ledger: Ledger Options page to balance intracompany journals automatically.
Note: You must complete the accounting setup in General Ledger
before setting up Intercompany. The assigned legal entities and
balancing segment values will not be visible in the Intercompany
Setup pages unless the Accounting Setup status is Complete.
•
Set up Intercompany
Note: Do not qualify the same segment as for your chart of accounts.
This will prevent the Balancing API from correctly generating the
intercompany segment value.
Intercompany Balancing
Intercompany journals involve balancing segment values that map to different legal
entities. These journals are balanced for each legal entity by using their intercompany
accounts. The Balancing API uses the intercompany accounts defined for the relevant
effective date range. Since multiple accounts may be defined for the same date range,
the Balancing API picks the accounts flagged with the Use for Balancing indicator. The
offsetting debit for a legal entity goes into its intercompany receivables account. The
offsetting credit goes into the legal entity's intercompany payables account.
5-2
Oracle Financials Implementation Guide
Intercompany accounts may be defined at the legal entity level. That is, each transacting
legal entity has different intercompany accounts defined for different trading partner
legal entities, regardless of which specific balancing segment values of those legal
entities are used in the journals. The transacting and trading partner balancing segment
values are then not explicitly specified in the definition and are set to All.
Intercompany accounts may be defined at the balancing segment level of the legal
entities. In other words, a transacting legal entity can use different accounts for different
transacting balancing segment values, depending on what the trading partner legal
entity and trading partner balancing segment value are. In that case, transacting or
trading partner balancing segment values may be explicitly specified in the
intercompany account definitions.
There are different types of intercompany journals. The Balancing API first determines
the type of the intercompany journal (one-to-one, one-to-many, many-to-one, or
many-to-many) with respect to the legal entities. For intercompany balancing there is
no clearing company usage and all legal entities are balanced by summary net with
respect to each other.
The following examples consider a one to one journal and how they are balanced.
Intercompany Balancing Example
Balancing segment value 10 maps to legal entity 1 (LE 1). Balancing segment value 20
maps to legal entity 2. The chart of accounts for this example has three segments:
balancing, natural account, and Intercompany.
Legal entity 1 uses the corporate ledger and the corporate chart of accounts.
Trading Partner Legal Entity
Account
Type
LE 2
10-2000-20
Intercompany Payables
Legal entity 2 uses the corporate ledger and the corporate chart of accounts.
Trading Partner Legal Entity
Account
Type
LE 1
20-4000-10
Intercompany Receivables
The Balancing API must balance the following journal:
Journal Line
Account
Debit
1
10-5200-00
1800.00
Credit
Intercompany and Intracompany Balancing
5-3
Journal Line
Account
2
20-5000-00
Debit
Credit
1800.00
The API determines that 10 and 20 belong to different legal entities. Because this journal
has one debit legal entity (10) and one credit legal entity (20), it is a 1-1 journal. The API
begins with the debit legal entity. The balanced journal is:
Journal Line
Account
Debit
Credit
Comments
1
10-5200-00
1800.00
2
20-5000-00
1800.00
Original line
3
10-2000-20
1800.00
Intercompany
Payables to legal
entity 2
(balancing
segment value
20)
4
20-4000-10
Original line
1800.00
Intercompany
Receivables from
legal entity 1
(balancing
segment value
10)
Intercompany accounts are defined to provide automated accounting between legal
entities within the same company.
Important: Defining intercompany Receivables and Payables accounts
is required before using the intercompany feature.
Before defining intercompany accounts, you need to choose a transacting legal entity
(From legal entity) and a trading partner legal entity (To legal entity).
Intracompany Balancing Rules
Intracompany balancing rules are used to create balancing lines on journals between
balancing segment values either within the same legal entity, or where there is no legal
entity context.
5-4
Oracle Financials Implementation Guide
Intracompany balancing rules are used when more than one balancing segment value
exists on a transaction or journal entry, as long as you have selected the Balance
Intracompany Journals option for the ledger. You cannot post a journal in General
Ledger when the debit and credit amounts for each balancing segment value do not net
to zero. These journals can be balanced automatically if you set up balancing rules and
enable the option to balance cross-entity journals.
You must define Intracompany balancing rules if you want to balance journals
automatically. You may define as many or as few balancing rules as you choose, and
each balancing rule may have one or many accounting rules. Because balancing is an
automated process, there should be at least one balancing rule with at least one
accounting rule to proceed. This default balancing rule should be defined for the journal
source Other and journal category Other for the ledger and legal entity you want to
balance. The default accounting rule on each balancing rule is defined for the debit
balancing segment value All Other and credit balancing segment value All Other.
With intracompany accounting, you can define both a debit (due from) and credit (due
to) balancing segment, which gives you more control over each balancing relationship.
You can specify different debit and credit accounts for each different intracompany
trading partner, which is represented by a specific balancing segment value.
All Other is also available as a balancing segment value if you want the balancing
segment value to use the same due to/due from accounts for every intracompany
trading relationship that has not been specifically defined.
If you set up a specific debit and credit balancing segment value, then the assigned
debit and credit account combinations are used. If you use All Other, the appropriate
trading partner balancing segment value replaces the balancing segment value of the
account combination.
You can also determine the level the Balancing API should use when selecting either
Summary Net or Detail.
For balancing many-to-many journals there are several balancing segment values with
net debits and net credits on a transaction and it is not possible to determine which
balancing segment value is trading with which balancing segment value. You can
decide whether to use a clearing balancing segment value or a default rule to handle
these transactions.
Intracompany Balancing Example
The chart of accounts for this example has three segments: balancing, natural account,
and intercompany.
Intracompany Balancing Rule:
DR Balancing
Segment Value
CR Balancing
Segment Value
Debit Account
Credit Account
01
02
01-4102-02
02-2201-01
Intercompany and Intracompany Balancing
5-5
DR Balancing
Segment Value
CR Balancing
Segment Value
Debit Account
Credit Account
02
01
02-4201-01
01-2102-02
01
All Other
01-4100-99
99-2200-01
All Other
01
99-4200-01
01-2100-99
All Other
All Other
99-4000-99
99-2000-99
Balancing Segment
Value
Debit
Credit
Line
13
100.00
Journal 1:
03
Original Line
100.00
Original Line
A specific rule is defined for the balancing segment values 13 and 03. The API will use
the All Other – All Other rule to create the following balancing lines. The result of the
balancing will be:
Account
Debit
03-4000-13
100.00
13-2000-03
Credit
Line
Debit Balancing Line
100.00
Credit Balancing Line
Credit
Line
Journal 2:
Balancing Segment
Value
Debit
01
100.00
02
Debit Balancing Line
100.00
Credit Balancing Line
Since no specific rule is defined for the balancing segment value 02 in a debit position
5-6
Oracle Financials Implementation Guide
and balancing segment value 01 in a credit position, the API will use the 02 – 01 rule to
create the following lines. The result of the balancing will be:
Account
Debit
02-4201-01
100.00
Credit
Line
Debit Balancing Line
01-2102-02
100.00
Credit Balancing Line
Note: Create Intracompany Balancing Rules Page, Oracle Advanced
Global Intercompany System User's Guide
Intercompany Balancing Engine
The Balancing API is used by Oracle General Ledger and Oracle Subledger Accounting
to provide the necessary balancing lines for a given combination of balancing segment
values. The API processes both intracompany lines (between balancing segment values
in the same legal entity) and intercompany lines (between balancing segment values
belonging to different legal entities) according to the setup defined in the Intracompany
Balancing Rules pages and in the Intercompany Accounts pages. If there are both
intercompany and intracompany lines in the same transaction, the Balancing API
performs intercompany balancing across legal entities, and then intracompany
balancing across balancing segment values within each legal entity. Previously, these
balancing lines were not determined until posting to General Ledger.
The Balancing API is used by General Ledger and Oracle Subledger Accounting to
build journal lines automatically based on balancing rules that you have defined in the
Intracompany Balancing Rules page. The Balancing API is called by General Ledger
prior to posting and by Subledger Accounting at the time of subledger journal creation.
The following table provides an explanation of different types of accounting setups.
Entity
Accounting
Setup A
Accounting
Setup B
Accounting
Setup C
Accounting
Setup D
Legal Entity 1
BSV 01,11
No BSVs
assigned
BSV 01,11
No BSVs
assigned
Legal Entity 2
BSV 02,22
No BSVs
assigned
BSV 02,22
No BSVs
assigned
Intercompany and Intracompany Balancing
5-7
Entity
Accounting
Setup A
Accounting
Setup B
Accounting
Setup C
Accounting
Setup D
Ledger
BSV 03,33
BSVs 01, 02, 03
No BSVs
assigned
No BSVs
assigned
The following table indicates how the different combinations of balancing segment
values use the intercompany or intracompany balancing.
5-8
Setup Type
Transactions between:
Balancing
Accounting Setup A
Balancing segment value 01
and 11
Intracompany
Balancing segment value 02
and 22
Intracompany
Balancing segment value 01
and 22; or balancing segment
value 01 and 02; or balancing
segment value 02 and 11; or
balancing segment value 22
and 11
Intercompany
Balancing segment value 01
and 03; or balancing segment
value 02 and 33
Balancing will fail because
balancing segment value 01 is
assigned to a legal entity and
03 is assigned to a ledger.
Accounting Setup B
Balancing segment value 01
and 03; or balancing segment
value 01 and 02
Intracompany
Accounting Setup C
Balancing segment value 01
and 11
Intracompany
Balancing segment value 02
and 22
Intracompany
Oracle Financials Implementation Guide
Setup Type
Accounting Setup D
Transactions between:
Balancing
Balancing segment value 01
and 22; or balancing segment
value 01 and 02; or balancing
segment value 02 and 11; or
balancing segment value 22
and 11
Intercompany
Transactions between any
balancing segment values
Intracompany
Default Rules
Because balancing is an automated process, there must be a valid rule with at least one
accounting rule to proceed. The default rule is the rule defined for the source Other and
the category Other (Other-Other). This rule is not required, but it is recommended that
you define a rule for Other-Other to catch any undefined journal sources and/or
categories.
Note: Intracompany Balancing Rules, page 5-4
Evaluation Order for Intracompany Balancing
Intracompany balancing allows you to define rules according to the business needs of
your company. When there are many balancing rules defined, the Balancing API uses
an evaluation order to pick the appropriate rule. Once the balancing rule is selected,
there may also be several accounting rules that must be evaluated on the balancing rule.
The Balancing API uses the same order for evaluating accounting rules, and
understanding this evaluation order will help you define your balancing rules and
accounting rules.
1.
Explicitly defined rules are checked first, and they take precedence over all other
rules. Assume a journal with a source Assets and category Adjustment, requiring
debit balancing for Company 01 and credit balancing for Company 02.
•
For balancing rules, this means a specific combination of journal source and
journal category exists for the ledger and legal entity. For example, a balancing
rule for the journal source Assets and the journal category Adjustment.
•
For accounting rules, this means a specific combination of debit balancing
segment value and credit balancing segment value. For example, debit
balancing value 01 and credit balancing segment value 02.
Intercompany and Intracompany Balancing
5-9
2.
3.
4.
If the Balancing API finds no explicit match, then it next searches for an explicitly
defined rule combined with a default value.
•
For balancing rules, this means a combination of a specific journal source and
the default journal category for the ledger and legal entity. For example, a
balancing rule for the journal source Assets and the journal category Other.
•
For accounting rules, this means a combination of a specific debit balancing
segment value and the default credit balancing segment value. For example,
debit balancing value 01 and credit balancing segment value All Other.
If the Balancing API finds no match, then it searches for a rule with a default value
combined with an explicitly defined value.
•
For balancing rules, this means a combination of the default journal source and
a specific journal category for the ledger and legal entity. For example, a
balancing rule for the journal source Other and the journal category
Adjustment.
•
For accounting rules, this means a combination of the default debit balancing
segment value and a specific credit balancing segment value. For example,
debit balancing value All Other and credit balancing segment value 02.
Finally, if the Balancing API finds no match after checking for all three previous
steps, then the default value should be used.
•
For balancing rules, this means a combination of the default journal source and
the default journal category for the ledger and legal entity. For example, a
balancing rule for the journal source Other and the journal category Other.
•
For accounting rules, this means a combination of the default debit balancing
segment value and the default credit balancing segment value. For example,
debit balancing value All Other and credit balancing segment value All Other.
Note: For more information about using the Advanced Global
Intercompany System, see: Introduction, Oracle Advanced Global
Intercompany System User's Guide.
5-10
Oracle Financials Implementation Guide
6
Additional General Ledger Setup
This chapter covers the following topics:
•
Introduction
•
Ledger Sets
•
Oracle General Ledger Security
Introduction
After creating and completing the accounting setup, perform additional setup steps in
Oracle General Ledger to achieve processing efficiencies and add security to ledgers
and reporting currencies.
Ledger Sets
Ledgers sets allow you to group multiple ledgers together to achieve processing
efficiencies. For example, you can open or close periods for multiple ledgers
simultaneously, translate balances for all ledgers in a ledger set, run recurring journals
that update balances for multiple ledgers, or run consolidated financial reports that
summarize balances across multiple ledgers in a ledger set.
All ledgers in a ledger set must share the same chart of accounts and accounting
calendar/period type combination. They do not have to share the same currency. This
allows you to group the primary or secondary ledgers with their associated reporting
currencies to reduce maintenance efforts and streamline processing.
Note: Both the source ledger and its reporting currency (Journal and
Subledger level) must have the same open periods to prevent problems
during posting in General Ledger.
Tip: Use a ledger set to combine the source ledger with its reporting
Additional General Ledger Setup
6-1
currencies (journal and subledger levels) to open and close periods
across all ledgers simultaneously
Some of the General Ledger features that benefit from the use of ledger sets are as
follows:
•
Translation and Revaluation: Translate balances and run revaluation across
multiple ledgers in a ledger set.
•
Open and Close Periods: Open and close periods for multiple ledgers within a
ledger set from a single operation.
•
Reporting: Submit standard reports and Financial Statement Generator (FSG)
reports across multiple ledgers in a ledger set.
The added benefit of using ledger sets in FSG reports is to aggregate data and create
summarized balances across multiple ledgers in a ledger set.
•
Inquiry: Perform online inquiry on account balances or journals across multiple
ledgers in a ledger set from a single view; drill down to the journal details and
subledger transaction for each ledger.
Note: Defining Ledger Sets
General Ledger Setup Flowchart, Oracle General Ledger User Guide
Oracle General Ledger Security
This section includes the following General Ledger security features:
•
Data Access Sets, page 6-2
•
Definition Access Sets, page 6-4
Data Access Sets
Data access sets control which ledgers or ledger sets can be accessed by different
General Ledger responsibilities. Data access sets also control read and write access to
the ledger or portions of the ledger, such as its balancing segment values or
management segment values.
All ledgers and ledger sets assigned to a data access set must share the same chart of
accounts and accounting calendar/period type combination.
Assume there is a Shared accounting setup where multiple legal entities share the same
primary ledger. Limit a user's access to a legal entity's data by creating a data access set
that secures read and write access to specific balancing segment values or legal entities.
6-2
Oracle Financials Implementation Guide
The following table describes balancing segment values that are assigned to each legal
entity.
Balancing Segment Values Associated with a Legal Entity
Legal Entity
Balancing Segment Value Assignment
Vision Operations
100
Vision Services
200
Vision Health
300, 400, 500
To ensure that the general ledger clerks for Vision Services do not view or enter data
using the balancing segment values for the other legal entities, define a data access set
that only provides read and write access to balancing segment value 200. Assigning this
data access set to the Vision Services responsibilities prevents them from entering and
viewing data outside of their legal entity.
System-generated Data Access Set
When completing an accounting setup by clicking Complete, the General Ledger
Accounting Setup Program is launched. This program automatically creates a data
access set for each ledger and reporting currency (journal level or subledger level)
assigned to that accounting setup.
The system-generated data access sets created for each ledger and reporting currency
provide full read and write access to the ledger and all of its balancing segment values
and management segment values.
If the level of access provided by the system generated data access set is sufficient, you
do not need to manually create a data access set; use the one created by the system. You
can immediately begin using that ledger or reporting currency for transaction
processing by assigning the name of the system-generated data access set (that uses the
same name as the ledger or reporting currency) to the following profile options:
•
GL Ledger Name
•
GL: Data Access Set
Note: Setting General Ledger Profile Options, Oracle General Ledger User
Guide
Create your own data access sets to further control read and write access to ledgers,
ledger sets, or specific balancing segment values or management segment values for a
ledger or ledger set.
Additional General Ledger Setup
6-3
To associate a data access set to a responsibility, you must assign a data access set to the
GL: Data Access Set profile option at the Site, Application, or Responsibility level.
The ledger assigned to the GL Ledger Name profile option automatically defaults to the
GL: Data Access Set profile option. If you do not want to access more than one ledger in
General Ledger or secure read and write access to the ledger's data, you do not have to
create your own data access set and assign it to the GL: Data Access Set profile option.
You only need to create your own data access sets if you want to further limit read and
write access to ledgers, ledger sets, or specific balancing segment values or management
segment values for a ledger or ledger set.
Regardless, if you define your own data access set or use the ones created by the
system, you must assign one to the GL: Data Access Set profile option for General
Ledger responsibilities to control the ledgers that General Ledger users can access.
Data access sets work with cross–validation rules and flexfield value security rules. If
flexfield value security rules are defined that prevent certain responsibilities from
accessing certain segment values, those rules are combined with data access set security.
Note: It is recommended that you use data access sets instead of
flexfield value security rules to secure read and write access to
balancing segment values and management segment values. Flexfield
value security rules are still applicable for the other segments.
Note: Data Access Sets
Definition Access Sets
Many organizations, especially those that have multiple legal entities represented in the
same ledger, want to secure their definitions from unauthorized users. For example,
many companies want to secure their Financial Statement Generator (FSG) reports or
MassAllocation definitions to prevent unauthorized users from viewing, making
changes, or using their definitions.
Definition access sets allow you to secure use, view, and modify privileges for specific
General Ledger definitions.
Note: Any definitions not secured using definition access sets will be
available to all users. You should not secure definitions that you want
all users to access.
This section includes the following parts:
6-4
•
Access Privileges, page 6-5
•
Definition Access Sets and Responsibilities, page 6-5
Oracle Financials Implementation Guide
•
Definition Access Sets and Data Access Sets, page 6-6
Access Privileges
For each definition that you want secured, assign one or more of the following
privileges as described in the following table.
Access Privileges
Privilege
Description
Example
Use
Enables a user to use a definition in a
process or a report, such as using
FSG report components to define a
report and generating a recurring
journal or Mass Allocation definition
If a user only has the Use privilege to
a Mass Allocation definition and an
FSG report, that user can generate
that Mass Allocation and submit the
report. The user cannot view or
modify the definitions.
View
Enables a user to view a definition
If a user only has the View privilege
to a MassAllocation definition and
an FSG report, the user can only
view the definitions. The user cannot
change the definitions, such as
changing the account assignments on
the report, and is not able to generate
the Mass Allocation or submit the
report.
Modify
Enables a user to view and modify a
definition
If a user has only the Modify
privilege to a Mass Allocation
definition and an FSG Report, the
user can view and make changes to
the definitions, but cannot generate
the Mass Allocation or submit the
report.
Note: Defining Definition Access Sets
Definition Access Sets and Responsibilities
Users can assign one or more definition access sets to one or more responsibilities. If a
user has multiple responsibilities assigned with multiple definition access sets that
secure the same definition, the user obtains the aggregate effect of all the privileges for
that definition.
Consider the following responsibilities described in the following table that are all
Additional General Ledger Setup
6-5
assigned to the same user.
Definition Access Sets and Responsibilities
Responsibility
Definition Access
Set
Report Definition
Secured
Privilege
GL Budget User
Report Viewers
FSG Balance Sheet
View
GL Report User
Report Users
FSG Balance Sheet
Use
GL Manager
Reporting All
FSG Balance Sheet
Modify
Regardless of the responsibility the user signs in with, the user has Use, View, and
Modify privileges to the Balance Sheet FSG report.
Definition Access Sets and Data Access Sets
Even though definition access sets and data access sets are separate security features in
General Ledger, there is a relationship between them.
The definition access set's Use privilege enables a user to use a definition in a process or
report. This means the user can generate a Mass Allocation definition or submit an FSG
report. However, the Use privilege alone does not guarantee that a journal is created
from the MassAllocation or that there is output in the FSG report. This is where data
access sets control read and write access to data contained in ledgers.
In order to successfully create a journal entry from the Mass Allocation definition, the
user's responsibility must have both the Use privilege to the definition as well as read
and write access to the ledger and the balancing segment value or management
segment value of the journal produced.
In order to produce output for an FSG report, the user must have Use access to the FSG
report definition, and he must have read access to the ledger and balancing segment
value or management segment value contained in the report.
6-6
Oracle Financials Implementation Guide
7
Accounting and Reporting Sequencing
Overview
Typically, enterprises carry the journal entries in multiple journals to a single general
ledger for reporting purposes. Enterprises manually record the journal entries in
journals (physical books), assign unique sequence numbers for each entry, and transfer
the entries to the general ledger. Sequence numbering the journal entries simplifies the
cumbersome task of tracing the journal entries.
Sequence numbering journal entries enables you to:
•
Have gapless sequence numbers.
•
Sequentially number subledger journal entries. You can generate a sequence
number for journal entries created by subledger accounting, before transferring
them to general ledger.
•
Sequence number general ledger journal entries.
•
Assign sequencing rules to subledger and general ledger journal entries within the
context of a ledger and ledger currency combination.
•
Generate reports based on the sequence numbers.
•
Sequentially number deferred expense accounting.
Note: You can choose to sequence journals for ledgers (primary and
secondary ledgers) and/or journal level and subledger level reporting
currencies. If using journal or subledger level reporting currencies and
you defined sequences for the source ledger, such as the primary or
secondary ledger, the sequence number generated for the source ledger
is not automatically assigned to the reporting currency journal. You
must set up accounting and reporting sequences separately for the
Accounting and Reporting Sequencing
7-1
reporting currencies if your want reporting currency journals
sequenced.
The following figure explains the process involved in sequence numbering, which
includes defining sequences and sequence assignments.
Defining Sequences
Define sequences to generate numbers for journal entries. Defining a sequence involves
the following:
•
Creating a sequence
•
Creating a sequence version
Use the Sequences page to search, create, and update sequences and sequence versions.
Creating a Sequence
To create a sequence, enter a unique sequence name and sequence description.
Creating a Sequence Version
Create at least one sequence version to complete the sequence. A sequence version
indicates the series of sequence numbers to be used and the effective date range of the
series.
7-2
Oracle Financials Implementation Guide
A sequence version has the following attributes:
•
Name: Sequence numbering reports display sequence version details as the
sequence version has effective dates and identifies the series used to generate the
accounting entry sequence number.
•
Effective Date Range: The default start date of the sequence version is the system
date.
•
Initial Sequence Number Value: First number of the sequence.
Updating Sequences
You can update the sequences and sequence versions in the following ways:
•
Inactivate a sequence and sequence version by changing the status to Disabled.
•
Update sequence and sequence versions.
•
Add multiple sequence versions to:
•
Differentiate the sequence numbering information between fiscal years.
•
Ensure the distinctiveness of the series; ensure the effective date range of the
sequence versions do not overlap.
•
Specify a start date and an end date for each individual sequence version.
•
Replace obsolete sequence versions.
Sequences Page
Use the Sequences Page to search for and update or create sequences and sequence
versions. The following table explains selected fields in the Sequences page.
Sequences Page
Field Name
Description
Status
Displays the status of the sequence. The status could be New,
Used, and Disabled.
Start Date
The effective start date which defaults to the current system
date, but can be set to any date in the past or future.
Accounting and Reporting Sequencing
7-3
Field Name
Description
End Date
Optional. The date when the sequence should be disabled.
Initial Number
An integer that is greater than zero. The number is
incremented by one for each accounting entry.
Last Number Used
Last generated sequence number for the version.
Defining Sequence Assignments
After creating a sequence, assign sequences to journal entries to generate sequence
numbers. Assigning a sequence involves the following process:
•
Creating a sequencing context
•
Assigning sequences to a defined sequencing context
•
Defining an exception (optional)
Creating a Sequencing Context
Defining a sequencing context enables you to assign a sequence to journal entries
created by Subledger Accounting or General Ledger. You can either create a new
sequencing context or modify existing sequencing contexts to address new sequencing
context requirements.
Sequence Contexts Page
Use the Sequencing Contexts page to search and update or create a new sequencing
contexts.
Sequencing Context Definition Page
7-4
Field Name
Description
Name (Sequencing Context)
Unique.
Ledger Name
The ledger for which the journal entries must be sequentially
numbered.
Oracle Financials Implementation Guide
Field Name
Description
Sequence Entity
Option to select whether general ledger or subledger entries
need to be sequentially numbered.
Sequence Event
The event which should trigger the sequence numbering.
Require Assignment
If you select this option, you must explicitly define valid
Sequence Assignments, or Exceptions for all journal entries
within a given Sequencing Context.
Validate Sequence By
Required. The date format for validating the sequences. When
generating a sequence number, this date is used to determine if
a sequence is available and the sequence assignment is active.
Assign Sequence By
Optional. Select the sorting option.
Balancing Segment Values
Specify the balancing segment values of the selected ledger that
are fiscal in nature.
Sequencing Context for Subledger and General Ledger Journals
Subledger journal entries are entries that are created in the various Oracle E-Business
Suite products such as Payables, Receivables, Purchasing, etc. The following lists the
sequencing context for subledger journals:
•
Sequence Events – Accounting and GL Period Close
•
Validate Sequence By – Accounting Date and Journal Effective Date for the
Accounting sequence event. Journal Effective Date and Reference Date for the GL
Period Close sequence event.
•
Assign Sequence By – Accounting Date, Journal Effective Date and Reference Date.
•
Balancing Segment Values – Specify the balancing segment values that are fiscal in
nature. This is used only by the GL Period Close sequence event. When the GL
period is closed, journal entries of the balancing segment values that are fiscal in
nature are sequenced.
Note: To use this option, balancing segment values must be
assigned to the legal entity in your accounting setup.
The following lists the sequencing context for general ledger journals are:
Accounting and Reporting Sequencing
7-5
•
Sequence Events – GL Period Close and Posting
•
Validate Sequence By – Journal Effective Date and Reference Date for the
Accounting sequence event. Posting Date and Journal Effective Date for GL Period
Close sequence event
•
Assign Sequence By – Posting Date, Journal Effective Date and Reference Date.
•
Balancing Segment Values – Specify the balancing segment values that are fiscal in
nature. This is used only by GL Period Close sequence event. When the GL period
is closed, only fiscal journal entries are sequenced.
Note: To use this option, balancing segment values must be
assigned to the legal entity in your accounting setup.
Assigning a Sequence
After you define the Sequencing Context, use the Assign Sequences page to assign the
sequences to journal entries. A sequence assignment uses a combination of the
sequencing context, sequence entity, and sequence event to sequentially number the
journal entries.
Before assigning the sequences, you must determine the following sequence control
attributes:
•
Effective date range
•
Balance Type
•
Journal Source
•
Journal Category
•
Accounting Event Type (only for subledger journal entries)
•
Accounting Entry Type (only for subledger journal entries)
•
Document Category (only for subledger journal entries)
Sequence Assignments Page
Use the Create Assignments [Sequence Context] page to create and update assignments
and exceptions for a sequence context.
The following table explains selected fields in the Create Assignments page.
7-6
Oracle Financials Implementation Guide
Sequence Assignment Page
Field Name
Description
Status
Select the status of the new assignment.
Type
Displays whether the selected is an assignment or exception.
Priority
Priority of the exception. This option is inactive unless you
define an exception.
Sequence Name
Optional. Name of the sequence to be assigned. A blank
indicates the entries must not be sequenced.
Effective Date
Define the effective date range for the sequence assignment.
Document Category
Select the document category to be sequentially numbered
(only for subledger entries).
Balance Type
List the values of balance type.
Journal Source
Select the journal sources from the list to be sequence
numbered for a sequence event.
Journal Category
Select the journal categories from the list to be sequence
numbered for a sequence event.
Accounting Event Type
Select the accounting event types to be sequentially
numbered (only for subledger entries).
Accounting Entry Type
Select the accounting entry types to be sequentially
numbered (only for subledger entries).
Add Exception
Select this option if you want to add an exception.
When you select Add Exception a new row populates with the Type as Exception. In
this row, you can define the exception. When you create an exception, the priority value
is always one added to the highest number in the priority.
Defining the Effective Date range
Define an effective date range for each sequence assignment. As there is no relationship
between the end date of a sequence version and a sequence assignment or an exception,
a sequence can expire while it is actively assigned.
Accounting and Reporting Sequencing
7-7
Note: The effective dates of sequence assignments in a given
sequencing context must not overlap in a series of sequence
assignments for the same sequence control attribute combination.
Sequence Assignments for Subledger and General Ledger Journals
The sequence control attributes that are available for subledger journal entries are:
•
Balance Type - Includes Actual, Budget and Encumbrance
•
Document Category - only for subledger entries
•
Journal Source
•
Journal Category
•
Accounting Event Type - only for subledger entries
•
Accounting Entry Type - only for subledger entries and includes Standard,
Upgrade, Manual and Deferred
The following table explains the sequence control attributes that are available in
subledger accounting for the sequence events.
Sequence control attributes
Sequence event Accounting
Sequence event - GL Period
Close
Balance Type
Y
Y
Journal Source
Y
Y
Journal Category
Y
Y
Document Category
Y
Accounting Event Type
Y
Accounting Entry Type
Y
The sequence control attributes that are available for general ledger journal entries for
the Posting and GL Period Close sequence events are:
7-8
•
Balance Type
•
Journal Source
Oracle Financials Implementation Guide
•
Journal Category
Defining Exceptions
Exceptions reduce the steps when defining a large number of sequence assignments. To
define an exception, ensure one or more attributes of the sequence control attribute
combination of the sequence assignment has no value. As you define exceptions for a
given sequence assignment, the sequence control attribute combinations with no value
remain the same for both the sequence assignment and its exception(s).
You can prioritize exceptions to determine the sequence to be used when generating the
sequence number.
Exceptions Example
The sequence control attribute is Balance Type for the general ledger journal entries of
Ledger A with Euro currency that must be sequentially numbered. Therefore the
sequence control attribute combination can be as follows:
Type
Assignment
Number
Balance Type
Journal Source
Journal
Category
Assignment
1
Actual
All
All
Assignment
2
Encumbrance
All
All
Assignment
3
Budget
All
All
Lets create exceptions to include the following sequence control attribute combinations
which are illustrated in the following table.
•
Actual general ledger journal entries for all Payables sources
•
Actual general ledger journal entries for Receivables journals that use the category
Adjustment
Type
Assignment
Number
Balance Type
Journal Source
Journal
Category
Assignment
1
Actual
All
All
Exception
1
Actual
Payables
All
Accounting and Reporting Sequencing
7-9
Type
Assignment
Number
Balance Type
Journal Source
Journal
Category
Exception
1
Actual
Receivables
Adjustment
Assignment
2
Encumbrance
All
All
Assignment
3
Budget
All
All
After creating the assignments and exceptions, assign the sequences as illustrated in the
following table.
Type
Assignment
Number
Balance
Type
Journal
Source
Journal
Category
Sequence
Assignment
1
Actual
All
All
Sequence A
Exception
1
Actual
Payables
All
Sequence B
Exception
1
Actual
Receivables
Adjustment
Sequence C
Assignment
2
Encumbrance
All
All
Sequence D
Assignment
3
Budget
All
All
Sequence E
From the table it can be inferred that:
•
Sequences A, D, and E will generate sequence numbers for general ledger journals
that use all Balance Types, Actual, Encumbrance, and Budget respectively.
•
Sequence B is the first exception of Sequence A if the Balance Type of the general
ledger journal is Actual and the Journal Source is Payables.
•
Sequence C is the second exception of Sequence A if the Balance Type of the general
ledger journal is Actual, the Journal Source is Receivables, and the Journal Category
is Adjustment.
When generating numbers, the application assigns sequences in the ascending order of
the exceptions priority as illustrated in the following table.
7-10
Oracle Financials Implementation Guide
Type
Assignme
nt Number
Priority
Balance
Type
Journal
Source
Exception
1
1
Actual
Payables
Exception
1
2
Actual
Receivables
Journal
Category
Sequence
Sequence B
Adjustmen
t
Sequence C
The inference is:
•
Sequence B generates a number first because the priority is 1.
•
Sequence C generates a number later because the priority is 2.
Updating Assignments
You can update sequence assignments in the following ways:
•
Inactivate sequencing context, sequence assignments, and exceptions by changing
the status to Disabled.
You can inactivate a sequencing context that has sequence assignments or
exceptions defined for it.
Note: Inactivating all the sequence assignments and exceptions in a
sequencing context does not inactivate the sequencing context.
•
Update sequencing context attributes, sequence assignments, and exceptions.
After creating a sequencing context, you can update the following key attributes:
•
•
Name
•
Require Assignment: When you select or deselect this option, the changes take
place immediately.
•
Validate Sequence By and Assign Sequence By: You can update the Validate
Sequence and Assign Sequence By attributes before creating assignments or
exceptions and using an active sequencing context. You can update the Validate
Sequence attribute by inactivating the sequencing context and creating a new
sequencing context with the desired date type and retaining other options such
as ledger name, sequence entity, and sequence event.
Add multiple sequence assignments and exceptions.
Accounting and Reporting Sequencing
7-11
A
Accounting Setup Examples
This appendix covers the following topics:
•
Introduction
•
Accounting Setup with Multiple Legal Entities – U.S. Only Operations
•
Accounting Setup – North American Company
•
Accounting Setup – European Operations
•
Accounting Setup - Latin America Operations
•
Accounting Setup with No Legal Entities - Consolidation Example
•
Management Reporting Example - U.S. Only Operations
Introduction
This appendix provides comprehensive examples for different accounting environment
type that you can create using Accounting Setup Manager (ASM). The examples relate
to a company called Outdoor Outfitters, a U.S.-based retail apparel company
implementing the E-Business Suite. Each example builds upon Outdoor Outfitters'
changing business needs as they move from being a U.S. only retail establishment to
one that operates in Canada and then Europe and Brazil.
Each accounting setup example describes the recommended implementation options,
such as the number of ledgers, balancing segment value assignment issues, security
issues, and consolidation issues.
Accounting Setup with Multiple Legal Entities – U.S. Only Operations
Outdoor Outfitters, a U.S. based retail apparel company, wants to use a single instance
of Oracle Applications. It has two legal entities located in the U.S., U.S. East, and U.S.
West. Both of these legal entities operate in a country that does not enforce strict rules
regarding tax and document sequencing. Both legal entities can also share the same
chart of accounts, accounting calendar (that is based on the fiscal year end of January
Accounting Setup Examples
A-1
31), currency, subledger accounting method, and ledger processing options.
This section includes the following parts:
•
Additional Requirements, page A-2
•
Accounting Setup for U.S. Legal Entities, page A-3
•
Consolidation, page A-5
•
Security, page A-6
Additional Requirements
The following requirements apply to this example:
•
Outdoor Outfitters uses a combination of third-party systems and Oracle financial
applications.
•
Outdoor Outfitters wants to use the five-segment chart of accounts structure for
their corporate chart of accounts described in the following table.
Chart of Accounts
Segment Number
Segment Name
Segment Qualifier
1
Legal Entity
Balancing Segment
2
Department
Cost Center
3
Account
Natural Account
4
Product
5
Future Use
The following table outlines the ledger requirements for each of the U.S. legal entities.
A-2
Oracle Financials Implementation Guide
Ledger Requirements for U.S. Legal Entities
Legal Entity
Chart of
Accounts
Calendar
Primary
Currency
Subledger
Accounting
Methods
Ledger
Processing
Options
U.S. East
Corporate
Corporate
USD
Standard
Accrual
Both legal
entities can
share the
same ledger
processing
options
U.S. West
Corporate
Corporate
USD
Standard
Accrual
•
Both legal entities can share the same primary ledger attributes.
•
Neither legal entity has special requirements to open and close accounting periods
independent from the other.
•
Both legal entities engage in intercompany accounting.
•
For month-end consolidation purposes, Outdoor Outfitters wants to keep their
consolidation adjustments and elimination entries completely separate from the
day-to-day transactions of their legal entities.
•
Each legal entity is sensitive about data security.
Both U.S. East and U.S. West do not want to share their accounting information
with each other. They do not want their respective users to be able to enter or view
accounting information for the other legal entity.
Accounting Setup for U.S. Legal Entities
Outdoor Outfitters can assign both US legal entities to the same accounting setup. This
allows both legal entities to share the same primary ledger. This is possible because
both legal entities operate in the same accounting environment and can share the same
primary ledger attributes.
The following table describes the accounting setup for the U.S. legal entities.
Accounting Setup Examples
A-3
Accounting Setup for U.S. Legal Entities
Parameter
Description
Legal Entities
U.S. East; Balancing Segment Value Assigned:
01
U.S. West; Balancing Segment Value
Assigned: 11
Note: Specific balancing segment values
should be assigned to each legal entity.
This is particularly important because both
legal entities share the same ledger. Users
can identify each legal entity's transactions
during data entry and reporting. They can
also take advantage of all of the legal entity
features, such as Intercompany
Accounting.
Primary Ledger
Outdoor Outfitters (USD)
Chart of Accounts: Corporate
Accounting Calendar: Corporate
Currency: USD
Subledger Accounting Method: Standard
Accrual
The following table describes the suggested primary ledger setup steps.
Suggested Primary Ledger Setup Steps
A-4
Setup Step
Description
Ledger Options
Required to complete the ledger definition
Oracle Financials Implementation Guide
Setup Step
Description
Balancing Segment Value Assignment
Balancing Segment Value: 91
Because Outdoor Outfitters wants to keep
their consolidation adjustments and
elimination entries completely separate from
the day-to-day transactions of their legal
entities, they should assign a specific
balancing segment value to the ledger.
Subledger Accounting Options
Because Outdoor Outfitters uses Oracle
financial subledgers, they should define
Subledger Accounting options for the
Standard Accrual subledger accounting
method.
Intercompany Accounts
Intercompany accounts should be defined to
use the intercompany accounting feature.
No other setup steps are required to complete the accounting setup for Outdoor
Outfitters (USD). The following accounting options can be used in the future if business
needs change:
•
Reporting Currencies: If Outdoor Outfitters needs to maintain additional currency
representations of their primary ledger, they can assign a reporting currency at any
time.
•
Secondary Ledgers: Secondary ledgers can be added at any time if Outdoor
Outfitters wants to maintain an additional accounting representation of their legal
entities' transactions.
Consolidation
Outdoor Outfitters maintains both legal entities' accounting data in the same ledger;
therefore, consolidation is not required. They can use Financial Statement Generator to
produce consolidated reports. This is possible because the U.S. legal entities have fairly
simple consolidation requirements. If their consolidation needs change in the future,
they can choose to use Oracle Financial Consolidation Hub to address more complex
consolidation requirements.
To address their month-end consolidation concerns to separate consolidation
adjustments from their day-to-day transactions, an additional balancing segment value
should be used to represent the elimination company. For example, balancing segment
value 91 that was assigned to the ledger is used to enter all consolidation adjustments
and eliminating entries.
Accounting Setup Examples
A-5
To create consolidated reports that include the results from each legal entity as well as
the consolidation adjustments, parent value U.S. is used. Parent U.S. includes child
values 01 U.S. East, 11 U.S. West, and 91 U.S. Eliminations. The following figure
describes this proposed balancing segment value hierarchy to achieve consolidated
results by using the parent value U.S. in Financial Statement Generator reports.
Security
Data Access Sets
Because different balancing segment values represent transactions for two different
legal entities in the same ledger, the only way to secure access to data for each legal
entity is to create data access sets that use the balancing segment value Access Set Type.
To secure data for each legal entity, at least two different Data access sets need to be
created, one to be assigned to U.S. West responsibilities, another for U.S. East
responsibilities.
The following table describes an example of the two data access sets that should be
created for each responsibility entering transactions for each legal entity:
Data Access Sets
A-6
Parameter
Value for Data Access Set
#1
Value for Data Access Set
#2
Data Access Set
U.S. East Access
U.S. West Access
Description
Access to U.S. East Only
Access to U.S. West Only
Chart of Accounts
Corporate
Corporate
Calendar/Period Type
Corporate/Monthly
Corporate/Monthly
Ledger
Outdoor Outfitters (USD)
Outdoor Outfitters (USD)
Oracle Financials Implementation Guide
Parameter
Value for Data Access Set
#1
Value for Data Access Set
#2
Access Set Type
Balancing Segment Value
Balancing Segment Value
Balancing Segment Values
01
11
Privileges
Read and Write
Read and Write
Another data access set that provides full read and write access to the ledger is required
for the controller. This allows the controller to view accounting information for both
legal entities from a single responsibility as well as perform certain operations that
require full ledger access, such as opening and closing periods, creating budgets, and
creating summary accounts. With full ledger access, the controller can also use the
balancing segment value 91 to enter consolidation adjustments.
The following table describes the additional data access set.
Data Access Set #3
Parameter
Value
Data Access Set #3
U.S. Full Access
Description
Full Access to U.S. Operations
Chart of Accounts
Corporate
Calendar/Period Type
Corporate/Monthly
Ledger
Outdoor Outfitters (USD)
Access Set Type
Full Ledger
Privilege
Read and Write
Note: Depending on the number of different responsibilities and job
roles used in the organization, additional data access sets may need to
be defined that provide more restrictive or less restrictive access to the
ledger and/or balancing segment values.
Accounting Setup Examples
A-7
Definition Access Sets
Because both legal entities share the same ledger, both legal entities have access to each
other's definitions. For example, the U.S. West legal entity has access to the U.S. East's
definitions, such as their recurring journals and FSG report definitions.
To prevent one legal entity from using, viewing, or modifying the definitions used by
another legal entity that shares the same ledger, definition access sets must be used and
assigned to each legal entity's responsibility.
Accounting Setup – North American Company
Outdoor Outfitters, a U.S. based retail company, uses a single instance of Oracle
Applications. It has two existing legal entities located in the U.S. that are assigned to the
same accounting setup. Each legal entity is identified by a specific balancing segment
value. The following table describes the primary ledger for Outdoor Outfitters.
Primary Ledger for Outdoor Outfitters
Parameter
Value
Ledger Name
Outdoor Outfitters (USD)
Legal Entity and Balancing Segment
U.S. East: 01
Legal Entity and Balancing Segment
Assignment
U.S. West: 11
Chart of Accounts
Corporate
Accounting Calendar
Corporate
Currency
USD
Subledger Accounting Method
Standard Accrual
Note: Accounting Setup for Multiple Legal Entities - U.S. Only
Operations, page A-1
Outdoor Outfitters decided to expand its business and acquire a credit card company in
Canada called Credit Services Group (CSG). Outdoor Outfitters can now provide credit
processing, collections, and other services for the proprietary credit programs of its
retail operating divisions. Outdoor Outfitters wants to incorporate its newly acquired
A-8
Oracle Financials Implementation Guide
Financial Services business into their existing E-Business Suite solution.
Both the U.S. and Canada operate in similar accounting environments where neither
country enforces strict statutory compliance; however, they do use different currencies
and Canada is required to meet special regulatory requirements for the financial
services industry. The U.S. legal entities use the USD currency and the Canadian legal
entity uses the CAD currency. In addition, because Credit Services Group is a Financial
Services company, they want to maintain average daily balances. Because of these
differences, Canada must maintain its legal entity transactions in its own primary
ledger.
The following table compares the primary ledger requirements for both the U.S. and
Canada.
Primary Ledger Requirements
Parameter
U.S. Primary Ledger Value
Canadian Primary Ledger
Value
Name
Outdoor Outfitters (USD)
Credit Services Group (CAD)
Chart of Accounts
Corporate
Corporate
Accounting Calendar
Corporate
Corporate
Currency
USD
CAD
Accounting Method
Standard Accrual
Standard Accrual
Special Ledger Options
None
Maintain average balances
This section includes the following parts:
•
Additional Requirements, page A-9
•
Accounting Setup for Canadian Legal Entity, page A-11
•
Ledger Sets, page A-14
•
Consolidation, page A-14
•
Security, page A-15
Additional Requirements:
•
Credit Services Group uses Oracle financial applications.
Accounting Setup Examples
A-9
The following graphic and table summarize the complete ledger requirements for
Credit Services Group.
Legal Entity: Credit Services Group (CSG Canada)
Ledger Attributes
Primary Ledger
Secondary Ledger
(Adjustments Only)
Name
Credit Services Group (CAD)
CSG Regulatory
Chart of Accounts
Corporate
Corporate
Accounting Calendar
Corporate
Corporate
Currency
CAD
CAD
Accounting Method
Standard Accrual
N/A
Reporting Currency
Balance level reporting
currency
N/A
Name
Credit Services Group (USD)
N/A
Currency
USD
N/A
Credit Services Group wants to maintain two accounting representations: one for
A-10
Oracle Financials Implementation Guide
corporate accounting needs and another for regulatory reporting.
•
Corporate Accounting Ledger: The primary ledger is used as the corporate
representation that uses the same chart of accounts, accounting calendar, and
subledger accounting methods as its U.S. parent. It requires using its own local
currency.
•
Regulatory Reporting Ledger: Credit Services Group operates in a regulated
industry, the Financial Services industry. They are required to adhere to specific
regulatory requirements for certain types of transactions. Because of this, Credit
Services Group wants to maintain a separate representation that will be used to
report to their regulatory body. They want to use an adjustments only secondary
ledger because they do not need to maintain a complete regulatory representation;
they only need to enter a handful of manual journal entries to reflect their
regulatory adjustments.
•
Balance Level Reporting Currency: For ease of cross-entity reporting, a balance
level reporting currency is assigned to the primary ledger to represent the
translated USD balances. This balance level reporting currency can be combined
with the primary ledger of the U.S. legal entities to address simple consolidation
requirements.
Accounting Setup for Canadian Legal Entity
Outdoor Outfitters should define another accounting setup for the Canadian legal
entity.
The following tables summarize the Accounting Setup for CSG Canada and the
suggested ledger setup steps.
Accounting Setup Examples
A-11
Accounting Setup for CSG Canada
Parameter
Description
Legal Entity
Legal Entity: CSG Canada
Balancing Segment Value Assigned: 21
Even though only one legal entity is assigned
to this accounting setup, specific balancing
segment values should be assigned to the
legal entity. It shares the same chart of
accounts as the U.S. legal entities and
automatically shares the same value set for the
balancing segment value.
By assigning a specific balancing segment
value to this legal entity, it prevents users
from accidentally using the values intended
for other legal entities during transaction
processing and journal entry.
CSG can also take advantage of other features,
such as Intercompany Accounting, that
require specific balancing segment values be
assigned to all legal entities.
Shared Legal Environment Type for CSG Canada: Suggested Primary Ledger Steps
Setup Step
Description
Primary Ledger
Credit Services Group (CAD)
Ledger Options
Required to complete the ledger definition
and enable Average Balance Processing
Balancing Segment Value Assignment
N/A
Balancing segment values do not need to be
assigned directly to the ledger unless
reserving a value for non-legal entity related
transactions. Balancing segment values can be
assigned to the ledger at any time.
A-12
Oracle Financials Implementation Guide
Setup Step
Description
Subledger Accounting Options
Define Subledger Accounting Options for the
Standard Accrual accounting method to
successfully integrate data from Oracle
financial subledgers .
Reporting Currencies
Name: Credit Services Group (USD)
Currency: USD
Currency Conversion Level: Balance
This USD balance level reporting currency
represents the translated USD balances that
are used for consolidation purposes.
No other setup steps are required for the primary ledger. The following accounting
options can be completed in the future if business needs change.
•
Intercompany Accounts: Intercompany accounts can be defined at any time to
enable intercompany accounting.
The following table summarizes suggested secondary ledger setup steps.
Suggested Secondary Ledger Setup Steps
Setup Step
Description
Secondary Ledger- Adjustments Only
CSG Regulatory
Ledger Options
Average Balance Processing can be enabled
for the secondary ledger to keep it consistent
with the primary ledger.
Note: No subledger accounting method
should be assigned to the adjustments only
secondary ledger unless planning to use
Subledger Accounting to create adjusting
entries from Oracle transaction sources.
A subledger accounting method can be
assigned at any time.
Accounting Setup Examples
A-13
Note: No other setup steps need to be performed for the Adjustments
Only Secondary Ledger.
Ledger Sets
By itself, the adjustments only secondary ledger only holds the regulatory adjustments.
To obtain a complete statutory representation, the results from the adjustments only
secondary ledger must be combined with the primary ledger, which holds the
day-to-day transactions using a ledger set.
Note: Ledger Sets, page 6-1
Consolidation
No balance transfer consolidations need to be performed to obtain consolidated results
for the parent entity, Outdoor Outfitters.
CSG's balance level reporting currency that is assigned to the primary ledger uses the
same chart of accounts, accounting calendar/period type combination, and currency as
the parent entity, Outdoor Outfitters.
By creating another ledger set that combines the balance level reporting currency with
the primary ledger of the parent entity, consolidated results are obtained without
having to run consolidation.
The following figure shows the configuration of both accounting setups with the use of
ledger sets to combine ledgers in different accounting setups:
A-14
Oracle Financials Implementation Guide
During month-end close, Credit Services Group simply needs to run translation to
update the translated balances in the balance level reporting currency. The parent entity
can then run a Financial Statement Generator report that references the ledger set for
consolidation purposes to report on consolidated balances.
Note: Using ledger sets consolidation purposes is not recommended if
you have complex consolidation requirements. For example, if your
organization performs frequent acquisitions, disposals, and
reorganizations, or has many partially owned subsidiaries, you should
use Oracle Financial Consolidation Hub for your consolidation needs.
Note: See Oracle Financial Consolidation Hub User's Guide.
Security
Definition Access Sets
CSG's accounting information is contained in its own ledger, separate from other legal
entities. This creates a natural boundary from Outdoor Outfitter's other legal entities.
Thus, the other legal entities are not able to to view CSG's financial information unless
they are explicitly granted view access to CSG's ledger. Because CSG shares the same
chart of accounts as the other US legal entities, many definitions that are at the chart of
accounts level, such as FSG reports and MassAllocations, will be shareable across all
legal entities. If the Canadian and US legal entities do not want some definitions to be
shared, they can secure use, view, or modify access to specific definitions using
Definition Access Sets.
For example, if CSG does not want certain users to be able to change their FSG Report
definitions, they can secure those reports using definition access sets.
Accounting Setup Examples
A-15
Accounting Setup – European Operations
Outdoor Outfitters, a U.S. based retail company, currently operates in both U.S. and
Canada and uses a single instance of Oracle Applications. The following graphic
describes the existing accounting setups for Outdoor Outfitters:
Outdoor Outfitters has chosen to expand its business internationally and has acquired
London Rain, a U.K.-based retail company that currently has operations in the U.K.
Note: Accounting Setup - U.S. Only Operations, page A-1
Accounting Setup with Multiple Legal Entities - North American
Company, page A-8
This section includes the following parts:
•
Requirements for London Rain (U.K.), page A-16
•
Accounting Setup for the U.K., page A-19
Note: For information about consolidation for this entity, see
Accounting Setup with No Legal Entity - Consolidation Example, page
A-26.
Requirements for London Rain (U.K.):
A-16
•
London Rain uses Oracle financial applications.
•
London Rain must use the local currency, GBP, and follow U.K. GAAP accounting
standards.
Oracle Financials Implementation Guide
•
London Rain wants to keep the accounting for their only legal entity in the U.K.
completely separate from the other legal entities.
London Rain U.K. has statutory reporting requirements and needs to report VAT to the
appropriate taxation authorities. They want to maintain two accounting
representations: one for statutory reporting and another for corporate accounting needs.
•
Corporate Accounting Ledger: The primary ledger is used as their corporate
representation that uses the same chart of accounts, calendar, and subledger
accounting method as its parent entity. The currency will be different; it will use the
local GBP currency.
•
Statutory Reporting Ledger: The subledger level secondary ledger is used for their
statutory representation that uses the statutory chart of accounts and U.K. GAAP
accounting method. Every time they enter a subledger transaction, Subledger
Accounting will create the appropriate subledger journal entries in both the
primary and secondary ledger to allow them to maintain both representations
simultaneously.
•
Balance Level Reporting Currency: Outdoor Outfitters, a U.S.-based company, is
the parent of London Rain (U.K.). For ease of consolidation, a balance level
reporting currency is assigned to the corporate accounting ledger (primary ledger)
to represent the translated USD balances. The translated balances are transferred to
its parent entity, Outdoor Outfitters, each period for consolidation purposes.
The following graphic and table summarize the complete ledger requirements for
London Rain (U.K.).
Accounting Setup Examples
A-17
Legal Entity: London Rain U.K.
A-18
Ledger Attributes
Primary Ledger
Secondary Ledger
(Subledger Level)
Name
London Rain Corporate (GBP)
London Rain U.K. (GBP)
Chart of Accounts
Corporate
Fiscal
Accounting Calendar
Corporate
Fiscal
Currency
GBP
GBP
Accounting Method
Standard Accrual
U.K. GAAP
Reporting Currency
Balance Level Reporting
Currency
N/A
Name
London Rain Corporate
(USD)
N/A
Currency
USD
N/A
Oracle Financials Implementation Guide
Accounting Setup for the U.K.
An accounting setup with only one legal entity is defined for London Rain (U.K.) in the
following tables.
Exclusive Legal Environment Type for London Rain (U.K.)
Parameter
Description
Legal Entity
Legal Entity: London Rain U.K.
Balancing Segment Value: 31
Note: Even though only one legal entity is
assigned to this accounting setup, specific
balancing segment values should be
assigned to the legal entity. It shares the
same chart of accounts as the U.S. and
Canadian legal entities; it automatically
shares the same value set for the balancing
segment. They can also take advantage of
other features, such as Intercompany
Accounting, that require specific balancing
segments values be assigned to all legal
entities.
Accounting Setup for London Rain (U.K.): Suggested Primary Ledger Setup Steps
Setup Step
Description
Primary Ledger
London Rain Corporate (GBP)
Ledger Options
Required to complete the ledger definition
Subledger Accounting Options
Because London Rain U.K. uses Oracle
financial subledgers, they should define
Subledger Accounting options for the
Standard Accrual accounting method.
Accounting Setup Examples
A-19
Setup Step
Description
Reporting Currencies
Currency Conversion Level: Balance
Name: London Rain Corporate (USD)
Currency: USD
This balance level reporting currency
maintains the translated USD balances for the
primary ledger.
This reporting currency is used for
consolidation purposes when consolidating to
Outdoor Outfitters.
Intercompany Accounts
Intercompany accounts should be defined to
use the intercompany accounting feature.
No other setup steps are required for the primary ledger. The following accounting
option can be completed in the future if business needs change.
•
Ledger Balancing Segment Value Assignment: Optionally, balancing segment
values can be assigned to the ledger to represent non-legal entity transactions, such
as adjustments.
Suggested Secondary Ledger Setup Steps
Setup Step
Description
Secondary Ledger – Subledger Level
London Rain U.K. (GBP)
Ledger Options
Required to complete the ledger definition
Primary to Secondary Ledger Mapping
Assign a chart of accounts mapping because
both the primary and secondary ledgers use a
different chart of accounts.
Specify journal conversion rules to have
General Ledger Posting select those journals
for automatic transfer to this secondary
ledger.
A-20
Oracle Financials Implementation Guide
Setup Step
Description
Subledger Accounting Options
Because London Rain U.K. wants to maintain
a statutory accounting representation at the
subledger level they should define Subledger
Accounting options for the U.K. GAAP
accounting method.
No other setup steps are required for the secondary ledger unless their business needs
change.
Accounting Setup - Latin America Operations
Outdoor Outfitters, a U.S. based retail company, currently operates in the U.S., Canada,
and the U.K. and uses a single instance of Oracle Applications. The following graphic
describes the existing accounting setups for Outdoor Outfitters.
Outdoor Outfitters has chosen to expand its business to Latin America and create a
company in Brazil called Outdoor Outfitters Brazil.
•
Accounting Setup with Multiple Legal Entities - U.S. Only
Operations, page A-1
•
Accounting Setup - North American Company, page A-8
•
Accounting Setup - European Operations, page A-16
Accounting Setup Examples
A-21
This section includes the following parts:
•
Requirements for Brazil, page A-22
•
Accounting Setup for Brazil, page A-23
Note: For information about consolidation for this entity,
seeAccounting Setup with No Legal Entity - Consolidation Example,
page A-26.
Requirements for Brazil:
•
A localized version of Oracle Applications is required for the Brazilian subsidiary in
order to meet the complex legal and financial rules in Brazil.
•
Companies that operate in Brazil must adhere to the many legal requirements set
forth by the Complemento Estatutario Brasileiro (Brazilian Statutory Complement).
There are requirements to use a statutory chart of accounts, a calendar based on the
calendar year (January-December), and the local currency, the Brazilian Real.
•
Outdoor Outfitters Brazil wants to maintain two accounting representations: one
for corporate accounting needs and another for statutory reporting.
•
Corporate Accounting Ledger: The primary ledger is used as their corporate
representation that uses the same chart of accounts, accounting calendar, and
subledger accounting method as its U.S. parent. The currency is the local
currency.
•
Statutory Reporting Ledger: Because Brazil has statutory requirements to
produce reports to tax authorities regarding their subledger activity, such as
receivables and payables, the secondary ledger at the subledger level is used.
This subledger level secondary ledger uses the statutory chart of accounts,
calendar, subledger accounting method, and the local currency. Every time they
enter a subledger transaction in the primary ledger, Subledger Accounting
automatically creates the subledger journals in both the primary and secondary
ledger simultaneously. They can then produce statutory reports directly from
their secondary ledger.
•
Subledger Level Reporting Currency: Brazil also operates in a highly
inflationary economy. They want to use a subledger level reporting currency to
maintain a complete currency representation of their primary ledger using a
more stable currency, such as USD.
The following graphic and table summarize the ledger requirements for Brazil.
A-22
Oracle Financials Implementation Guide
Legal Entity: Outdoor Outfitters Brazil
Ledger Attributes
Primary Ledger
Secondary Ledger
(Subledger Level)
Name
Outdoor Outfitters Brazil
Corporation (BRL)
Outdoor Outfitters Brazil
Statutory
Chart of Accounts
Corporate
Brazil Statutory
Accounting Calendar
Corporate
Brazil Statutory
Currency
BRL
BRL
Accounting Method
Standard Accrual
Brazil GAAP
Reporting Currency
Subledger Level Reporting
Currency
N/A
Name
Outdoor Outfitters Brazil
Corporation (USD)
N/A
Currency
USD
N/A
Accounting Setup for Brazil
An accounting setup with only one legal entity should be defined for Brazil. The
Brazilian legal entity operates in a country with strict statutory requirements. In
addition, Brazil has unique document sequencing requirements that can only be
Accounting Setup Examples
A-23
accomplished if only one legal entity is assigned to an accounting setup.
The following tables summarize the exclusive legal environment and the suggested
ledger setup steps.
Accounting Setup for Brazil
Parameter
Description
Legal Entity Assigned
Legal Entity: Outdoor Outfitters Brazil
Balancing Segment Value: 41
Note: Even though only one legal entity is
assigned to this accounting setup, specific
balancing segment values should be
assigned to the legal entity. It shares the
same chart of accounts as all of the other
legal entities and automatically shares the
same value set for the balancing segment.
They can also take advantage of other
features such as Intercompany Accounting
that require specific balancing segment
values be assigned to all legal entities.
Exclusive Legal Environment for Brazil: Suggested Primary Ledger Setup Steps
A-24
Setup Step
Description
Primary Ledger
Outdoor Outfitters Brazil Corporation (BRL)
Ledger Options
Required to complete the ledger definition
Oracle Financials Implementation Guide
Setup Step
Description
Reporting Currencies
Name: Outdoor Outfitters Brazil Corporation
(USD)
Currency: USD
Currency Conversion Level: Subledger
To address the need to maintain Brazil's
primary accounting transactions using a more
stable currency, such as USD, a reporting
currency at the subledger level is used. This
reporting currency is assigned to Brazil's
primary ledger to act as a complete additional
currency representation of Brazil's
transactions. This allows Brazil to
simultaneously maintain two complete
currency representations, one in Brazilian Real
and the other in U.S. Dollars.
Subledger Accounting Options
Because Outdoor Outfitters Brazil uses Oracle
financial subledgers, they should define
Subledger Accounting options for the
subledger accounting method.
Exclusive Legal Environment for Brazil: Suggested Secondary Ledger Setup Steps
Setup Step
Description
Secondary Ledger - Subledger Level
Outdoor Outfitters Brazil Statutory
A secondary ledger at the subledger level is
used to maintain a complete statutory
representation.
Ledger Options
Required to complete the ledger definition
Primary to Secondary Ledger Mapping
Assign a chart of accounts mapping because
both the primary and secondary ledgers use a
different chart of accounts.
Specify journal conversion rules to have
General Ledger Posting select those journals
for automatic transfer to this secondary
ledger.
Accounting Setup Examples
A-25
Setup Step
Description
Subledger Accounting Options
Because the secondary ledger uses a different
subledger accounting method than the
primary ledger, specify Subledger Accounting
options to provide instructions on how to
account for subledger transactions differently.
No other setup steps are required for the primary or secondary ledger. The following
accounting options can be completed in the future if business needs change
•
Ledger Balancing Segment Value Assignment: Optionally, balancing segment
values can be assigned to each ledger to represent non-legal entity transactions,
such as adjustments.
•
Intercompany Accounts: Intercompany accounts can be defined to use
intercompany accounting.
Accounting Setup with No Legal Entities - Consolidation Example
Outdoor Outfitters, a U.S. based retail company, uses a single instance of Oracle
Applications. It has the following legal entities and accounting setup types defined:
•
Two legal entities located in the U.S., U.S. East, and U.S. West that are assigned to
the same accounting setup.
•
One legal entity in Canada that is assigned to its own accounting setup.
•
One legal entity in the U.K. that is assigned to its own accounting setup.
•
One legal entity in Brazil that is assigned to its own accounting setup.
•
Accounting Setup with Multiple Legal Entities - U.S. Only, page A1
•
Accounting Setup - North American Company, page A-8
•
Accounting Setup - European Operations, page A-16
•
Accounting Setup - Latin America Operations, page A-21
Outdoor Outfitters has decided they want to use a separate consolidation ledger to
consolidate data across multiple legal entities in different accounting setups This allows
them to keep their consolidation adjustments completely separate from the day-to-day
A-26
Oracle Financials Implementation Guide
transactions for each legal entity.
The following graphic and tables describe the different accounting setups for all of
Outdoor Outfitters' legal entities:
Accounting Setups for Outdoor Outfitter Legal Entities (Primary Ledger)
Legal Entity
U.S. East/West
Canada
U.K.
Brazil
Chart of
Accounts
Corporate
Corporate
Corporate
Corporate
Calendar
Corporate
Corporate
Corporate
Corporate
Currency
USD
CAD
GBP
BRL
Accounting
Method
Standard
Accrual
Standard
Accrual
Standard
Accrual
Standard
Accrual
Accounting Setups for Outdoor Outfitter Legal Entities (Reporting Currency)
Legal Entity
U.S. East/West
Canada
(Balance Level)
U.K. (Balance
Level)
Brazil
Subledger
Level)
Currency
N/A
USD
USD
USD
Accounting Setup Examples
A-27
Accounting Setups for Outdoor Outfitter Legal Entities (Secondary Ledger)
Legal Entity
U.S. East/West
Canada
(Adjustments
Only)
U.K. (Subledger
Level)
Brazil
(Subledger
Level)
Chart of
Accounts
N/A
Corporate
Fiscal
Brazil Statutory
Calendar
N/A
Corporate
Fiscal
Brazil Statutory
Currency
N/A
CAD
GBP
BRL
Accounting
Method
N/A
N/A
U.K. GAAP
Brazil GAAP
Accounting Setup for Consolidation Purposes
An accounting setup with no legal entities assigned should be defined. The primary
ledger should share the same ledger attributes as the parent entity, such as the same
chart of accounts, accounting calendar, and currency.
The following table summarizes the suggested primary ledger setup steps for the Other
accounting setup
Accounting Setup for Consolidation
Setup Step
Description
Primary Ledger
Consolidation Ledger
•
Chart of Accounts: Corporate
•
Calendar: Corporate
•
Currency: USD
Note: No Subledger Accounting Method is
required because this ledger will be a
standalone ledger. It will not integrate with
Oracle subledgers.
A-28
Oracle Financials Implementation Guide
Setup Step
Description
Ledger Options
Required to complete the ledger definition
No other setup steps are required for the primary ledger. By not assigning any
balancing segment values to the ledger, it allows the ledger to use all balancing segment
values
Consolidation Steps
Step 1: Translate balances for the following legal entities to convert balances from their
local currencies to U.S. Dollar, the currency of the parent entity:
•
Canada
•
U.K.
Note: For the Brazilian legal entity, the subledger level reporting
currency already maintains subledger journals, GL journal entries, and
balances in USD. No translation is required because every time a
transaction or journal entry is entered, it will be converted to the
subledger level reporting currency.
Step 2a:If you have simple consolidation needs and do not want to perform balance
transfer consolidation, you can define a ledger set for consolidation purposes. This
ledger set should include the following ledgers and reporting currencies:
•
The primary ledger for the US legal entities
•
The USD balance level reporting currency for the Canadian legal entity
•
The USD balance level reporting currency for the UK legal entity
•
The USD subledger level reporting currency of the Brazilian legal entity
•
Consolidation ledger
Step 2b: If you prefer to transfer balances for consolidation purposes, transfer balances
to the consolidation ledger
Use GL Consolidation to transfer USD balances from the ledger or reporting currencies
of the respective legal entities to the consolidation ledger.
•
U.S. Legal Entities: Transfer balances from the primary ledger of the U.S. legal
entities to the consolidation ledger.
Accounting Setup Examples
A-29
•
Canadian Legal Entity: Transfer translated balances from the balance level
reporting currency to the consolidation ledger.
•
U.K. Legal Entity: Transfer translated balances from the balance level reporting
currency to the consolidation ledger.
•
Brazil Legal Entity: Transfer balances from the subledger level reporting currency
to the consolidation ledger.
Step 3: Enter consolidation adjustments in the consolidation ledger.
Step 4: Prepare consolidation reports.
Use Financial Statement Generator to create and submit consolidated financial
statements.
Management Reporting Example - U.S. Only Operations
Outdoor Outfitters, a U.S. based retail apparel company, uses a single instance of Oracle
Applications.
The following table shows the accounting setup for its U.S. operations:
Accounting Setup for U.S. Legal Entities
Parameter
Description
Legal Entities
U.S. East; Balancing Segment Value Assigned:
01
U.S. West; Balancing Segment Value
Assigned: 11
Primary Ledger
Outdoor Outfitters (USD)
Chart of Accounts: Corporate
Accounting Calendar: Corporate
Currency: USD
Subledger Accounting Method: Standard
Accrual
•
A-30
Accounting Setup with Multiple Legal Entities - U.S. Only
Operations, page A-1
Oracle Financials Implementation Guide
•
Accounting Setup - North American Company, page A-8
•
Accounting Setup - European Operations, page A-16
•
Accounting Setup - Latin American Operations, page A-21
Outdoor Outfitters decided they want to maintain an additional ledger for management
reporting and analysis purposes. They only want to do this for their U.S. Operations.
They want their U.S. Department Managers to use this ledger to book internal
management adjustments that are not published to their financial statements.
This section includes the following parts:
•
Additional Requirements, page A-31
•
Using Secondary Ledgers for Management Reporting, page A-33
•
Ledger Set, page A-34
•
Security, page A-34
Additional Requirements
Outdoor Outfitters currently uses the following chart of accounts structure. They have
specified the Department segment to be both their cost center and management
segment.
Note: You can enable the management segment at any time for an
existing chart of accounts.
The following table describes the chart of accounts.
Chart of Accounts
Segment Number
Segment Name
Segment Qualifier
1
Legal Entity
Balancing Segment
2
Department
Cost Center and Management
Segment
3
Account
Natural Account
Accounting Setup Examples
A-31
Segment Number
Segment Name
4
Product
5
Future Use
Segment Qualifier
The following figure illustrates the Department hierarchy for the U.S. managers only
and is described in the following table:
Department Hierarchy for U.S. Managers
CEO: Steve Jones
Managers
Parent Values
Child Values
Linda W.
100 Finance
101-199
Bernie L
200 Sales
201- 299
300 Marketing
301-399
400 Consulting
401-499
Steve S.
Transactions are entered across all four departments during the normal course of
business. For example, expenses are entered for each department. Outdoor Outfitters
does not want any of the Department Managers to view or enter data outside of their
own departments.
A-32
Oracle Financials Implementation Guide
Using Secondary Ledgers for Management Reporting
Because Outdoor Outfitters only need to enter management adjustments for a specific
legal entity or group of legal entities that are represented in the same accounting setup,
you can assign an adjustments only secondary ledger to the existing accounting setup
for the U.S. legal entities.
Note: You could also create another accounting setup with no legal
entities assigned for management adjustments and reporting. This is
preferable if you need to book management adjustments across ledgers
in multiple accounting setups. For more information, see Accounting
Setups with No Legal Entities, page 2-9.
The following table provides an example of how your accounting setup would be
configured with the addition of the secondary ledger:
Accounting Setup for U.S. Legal Entities
Parameter
Description
Legal Entities
U.S. East; Balancing Segment Value: 01
U.S. West; Balancing Segment Value: 11
Primary Ledger
Outdoor Outfitters (USD)
Chart of Accounts: Corporate
Accounting Calendar: Corporate
Currency: USD
Subledger Accounting Method: Standard
Accrual
Secondary Ledger (Adjustments Only)
Management Ledger (USD)
Chart of Accounts: Corporate
Accounting Calendar: Corporate
Currency: USD
The primary ledger would hold the day-to-day transactions and the adjustments only
secondary ledger would hold the management adjustments. By itself, this secondary
ledger does not represent the complete management picture; it only holds the
management adjustments. This allows you to keep your management adjustments
completely separate from your day-to-day transactions. In order to obtain a complete
Accounting Setup Examples
A-33
management picture, you must group both ledgers in a ledger set to see the combined
results.
Ledger Set
The Ledger Set described in the following table is created to allow them to obtain
management results.
Ledger Set: Management Results
Parameter
Description
Ledger Set
U.S. Management Set
Description
Ledger Set for U.S. Management Reporting
Chart of Accounts
Corporate
Calendar/Period Type
Corporate/Monthly
Ledgers
•
Outdoor Outfitters (USD)
•
Management Ledger (USD)
Security
Data Access Sets
In order to prevent department managers from accessing the data for other
departments, Outdoor Outfitters must create data access sets that use the Management
segment value access set type.
Assume the parent values for each department as described in the following table:
Department Values
A-34
Value
Department
100
Finance
200
Sales
Oracle Financials Implementation Guide
Value
Department
300
Marketing
400
Consulting
To secure data for each of the three department managers, at least three different data
access sets need to be created, one to be assigned to each U.S. department manager.
The following tables describe the three data access sets that should be created for each
manager's responsibility. The ledger set is assigned and parent segment values ease the
creation and maintenance of data access sets.
Data Access Set #1
Parameter
Value
Data Access Set #1
Finance Access
Description
Access to Finance Department
Chart of Accounts
Corporate
Calendar/Period Type
Corporate/Monthly
Ledger Set
U.S. Management Set
Access Set Type
Management Segment Value
Management Segment Values
100
Privileges
Read and Write
Data Access Set #2
Parameter
Value
Data Access Set #2
Sales Access
Accounting Setup Examples
A-35
Parameter
Value
Description
Access to Sales and Marketing Departments
Only
Chart of Accounts
Corporate
Calendar/ Period Type
Corporate/Monthly
Ledger Set
U.S. Management Set
Access Set Type
Management Segment Value
Management Segment Values
200, 300
Privileges
Read and Write
Data Access Set #3
Parameter
Value
Data Access Set #3
Consulting Access
Description
Access to Consulting Department Only
Chart of Accounts
Corporate
Calendar/ Period Type
Corporate/Monthly
Access Set Type
Management Segment Value
Ledger Set
U.S. Management Set
Management Segment Values
400
Privileges
Read and Write
The first data access set is assigned to Linda's responsibility, the manager for Finance.
She is not able to access the information for any other departments but those assigned
to the parent value 100.
The second data access set is assigned to Bernie's responsibility, the manager for Sales
A-36
Oracle Financials Implementation Guide
and Marketing. She has read and write access only to her departments.
The third data access set is assigned to Steve's responsibility, the manager of
Consulting. He has access only to his departments.
Another data access set that provides full read and write access to the management
ledger is required for the controller. The controller can view accounting information
across all departments as well as perform certain operations that require full ledger
access, such as opening and closing periods, creating budgets, and creating summary
accounts. By assigning a ledger set to the data access set, the controller can open and
close periods for both ledgers simultaneously.
The following table describes the fourth data access set.
Data Access Set #4
Parameter
Value
Data Access Set #4
U.S. Management Ledger Access
Description
Full Access to U.S. Management Ledger
Chart of Accounts
Corporate
Calendar/Period Type
Corporate/Monthly
Ledger Set
U.S. Management Set
Access Set Type
Full Ledger
Privileges
Read and Write
Definition Access Sets
Because all of the managers are entering their management adjustments to the same
ledger, they all have access to each other's definitions, such as each other's Recurring
Journals, MassAllocations, and FSG Reports. To prevent one manager from changing,
viewing, or using a definition created by another manager, definition access sets should
be used and assigned to each manager's responsibility.
Accounting Setup Examples
A-37
B
Oracle Financials Profile Options
This appendix covers the following topics:
•
Profile Options Overview
Profile Options Overview
During implementation, set a value for each Oracle Financials profile option to specify
how Oracle Financials controls access to and processes data.
You may also have additional user profile options on your system that are specific to
other applications.
Generally, your system administrator sets and updates profile values.
See: Setting User Profile Options, Oracle Applications System Administrator's Guide Maintenance
You can govern the behavior of many of your forms using user profile options. Profile
options can be set at the following levels:
•
Site: This is the lowest profile level. Site level profile option values affect the way all
applications run at a given site.
•
Application: These profile option values affect the way a given application runs.
•
Responsibility: These profile option values affect the way applications run for all
users of a given responsibility.
•
User: These profile option values affect the way applications run for a specific
application user. The values you enter for options at the User level supersede the
values that your system administrator has entered for you for these options.
The values that you enter for these options at the user level supersede the preset values
that your system administrator has entered for you for these options.
Oracle Financials Profile Options
B-1
Setup Profile Options Summary
The table below indicates whether you (the "User") can view or update the profile
option and at which System Administrator levels the profile options can be updated: at
the user, responsibility, application, or site levels.
A "Required" profile option requires you to provide a value. An "Optional" profile
option already provides a default value, so you only need to change it if you don't want
to accept the default. In the following table, the column User Access applies to any user
without system administrator privileges. The next columns, System Admin Access:
User, System Admin Access: Resp, System Admin Access: App, and System Admin
Access: Site, refer to a user with System Administrator privileges.
The tables in this section provide profile option information as follows:
•
The Default column displays either the default profile option value in italics, or No
Default if none exists.
•
The User Access column indicates whether you can view or update the profile
option.
•
The System Administration: Site, Application, Responsibility, and User columns
indicate at which levels the system administrator can update these profile options.
The key for each table is:
•
Update: You can update the profile option.
•
View Only: You can view the profile option but cannot change it.
•
No Access: You cannot view or change the profile option.
Financials Profile Options
Profile Option
Default
User
Access
System
Administration:
Site
System
Administration:
Application
System
Administration:
Responsibility
System
Administration:
User
Default Country
United
States
Update
Update
Update
Update
Update
HZ: Generate
Party Number
Yes
Update
Update
Update
Update
Update
LE: Change
effectivity
No
default
Update
Update
Update
Update
Update
B-2
Oracle Financials Implementation Guide
Profile Option
Default
User
Access
System
Administration:
Site
System
Administration:
Application
System
Administration:
Responsibility
System
Administration:
User
LE: Generate
Legal Entity
Identifier
No
default
Update
Update
Update
Update
Update
Default Country
This profile option determines the default value for the territory in the Create Legal
Entity page.
HZ: Generate Party Number
This profile option determines whether the organization number is generated
automatically or entered manually.
If the profile option is set to Yes, the organization number is generated automatically
and the field is not displayed. If the profile option is set to No, the organization number
must be entered manually and the main establishment's organization number is the
legal entity organization number and ETB (establishment). For example, if the legal
entity organization number entered is 12536, the establishment's organization number
will be 12536ETB.
LE: Change Effectivity
Use this profile option to define whether the Change Effectivity region must be
available on the Update Legal Entities/Establishments Registration pages. If you set this
profile option to Yes, the Change Effectivity region is available. See: Updating Legal
Entities, Oracle Financials Implementation Guide and Updating Establishments, Oracle
Financials Implementation Guide
LE: Generate Legal Entity Identifier
Use the LE: Generate Legal Entity Identifier profile option to set the Legal Entity
Configurator to automatically generate the legal entity identifier. If you set this profile
option to Yes, the legal entity identifier is generated automatically based on the
International Organization for Standardization (ISO) code of the country of registration,
plus the registration number of the identifying jurisdiction, which qualifies an entity to
be a legal entity in that particular territory. If you set it to No, you must enter the legal
entity identifier manually. The default is No.
For Example:
•
Territory: Singapore
Oracle Financials Profile Options
B-3
•
ISO Country Code: SG
•
Registration Number of the Identifying Jurisdiction (RCN Number): 23231 (user
enterable field)
If the profile option is set to Yes, the legal entity identifier will be SG23231, otherwise
you are required to enter the legal entity identifier manually. If you enter an identifier
that is not unique, an error message is displayed.
See: Creating a Legal Entity, Oracle Financials Implementation Guide
B-4
Oracle Financials Implementation Guide
Glossary
This glossary includes terms that are shared by all Oracle Financial Applications products.
See also: Oracle Projects Glossary, Oracle Projects documentation set
4-4-5 calendar
A calendar with 12 uneven periods: typically two four-week periods followed by one
five week period in a quarter. Calendars are defined in General Ledger and Oracle
subledger applications.
Depreciation is usually divided by days for a 4-4-5 calendar. Since a 4-4-5 calendar has
364 days per year, it has different start and end dates for the fiscal year each year.
account
The business relationship that a party can enter into with another party. The account
has information about the terms and conditions of doing business with the party.
account combination
A unique combination of segment values that records accounting transactions. A typical
account combination contains the following segments: company, division, department,
account and product.
account derivation rule
(Oracle Subledger Accounting) A component of the Accounting Methods Builder
(AMB) that determines the Accounting Flexfield for the subledger journal entries.
account groups
Fixed asset or long-term liabilities for which governments usually maintain separate
accountability. Governments usually maintain these transactions in account groups
known as the general fixed assets account group and the general long-term debt
account group.
account hierarchy
A hierarchical account structure containing parent and child accounts, where a range of
child values roll up to parent accounts. A multi-level parent hierarchy can exist where
Glossary-1
higher level parents are parents of lower level parents. Parent hierarchies let you define
reports using parent values instead of individual child values in Oracle General Ledger.
Parent values also facilitate summary account creation to allow you to view
summarized account balances online.
account relationship
A relationship that implies financial responsibility between the owners of the accounts.
For example, a customer account relationship lets you apply payments to and create
invoices for related customers, as well as apply invoices to related customers'
commitments.
account role
The role that a party has in regard to controlling or using an account, for example,
owner, authorized user, or contact.
account segment
One of up to 30 different sections of your Accounting Flexfield, which together make up
your general ledger account combination. In a commercial context, each segment
typically represents an element of your business structure, such as Company, Cost
Center or Account.
account segment value
A series of characters and a description that define a unique value for a particular value
set.
account site
A site that is used within the context of an account, for example, for billing or shipping
purposes.
account structure
See: Accounting Flexfield structure, page Glossary-3
accounting attributes
Placeholders used by Subledger Accounting to store source values that are used to
create subledger journal entries. Examples of accounting attributes are Entered
Currency Code, Entered Amount, and Party ID.
accounting calendar
The calendar that defines your accounting periods and fiscal years in Oracle General
Ledger and subledger applications. Oracle Financial Analyzer will automatically create
a Time dimension using your accounting calendar.
Glossary-2
accounting chart of accounts
(Oracle Subledger Accounting) In the AMB, the accounting chart of accounts refers to
the ledger's chart of accounts which is used to create the Accounting Flexfields for the
subledger and journal entries. All journal entries are created in the context of an
accounting chart of accounts.
Usually, the transaction and accounting charts of accounts are the same. The transaction
and accounting charts of accounts differ only when a primary ledger and any of its
associated secondary ledger are defined with different charts of accounts.
See: Transaction Chart of Accounts
accounting currency
In some financial contexts, a term used to refer to the currency in which accounting data
is maintained. In this manual, this currency is called ledger currency.
accounting entry
A subledger journal entry in Subledger Accounting or a general ledger entry in General
Ledger.
accounting event
See: Business Events.
accounting event entity
(Oracle Subledger Accounting) Accounting event entities group one or more event
classes together and often correspond to a database object. The event entity may also
logically correspond to a single document which is used as the basis for several related
transactions, for example, Payables or Receivables invoices.
accounting event type
(Oracle Subledger Accounting) Accounting event types represent the business
operations that can be performed on the transactions. For example, Payables invoices
are subject to three types of business operations: Invoice Validated, Invoice Adjusted,
and Invoice Canceled, each of them corresponding to a different accounting event type.
Accounting event types provide the lowest level of detail for assigning accounting
definitions.
accounting flexfield
The code you use to identify a general ledger account in an Oracle Financials
application. Each Accounting Flexfield segment value corresponds to a summary or
rollup account within your chart of accounts.
accounting flexfield structure
The account structure you define to fit the specific needs of your organization. You
Glossary-3
choose the number of segments, as well as the length, name, and order of each segment
in your Accounting Flexfield structure.
accounting flexfield value set
A group of values and attributes of the values. For example, in a commercial context,
the value length and value type that you assign to your account segment to identify a
particular element of your business, such as Company, Division, Region, or Product.
Accounting Methods Builder (AMB)
(Oracle Subledger Accounting) A common module used to define application
accounting definitions. Oracle seeds default application accounting definitions in the
AMB that cannot be modified. Users use the AMB to create their own application
accounting definitions to meet local fiscal or managerial reporting requirements.
Components of the AMB include journal entry header and line descriptions, account
derivation rules, journal line types, application accounting definitions, journal lines
definitions, and subledger accounting methods.
accounting model
A set of selected individual accounts and account ranges. You can assign a name to an
accounting model. Once an accounting model is defined for a particular group of
accounts, you can reuse that accounting model whenever you want to work on that
group of accounts. Use your accounting models to choose the accounts that you want to
adjust when you run the inflation adjustment process. Although there are no rules for
grouping accounts, you may want to define different accounting models for different
kinds of accounts. For example, you can define one accounting model for all of your
asset accounts and another accounting model for all of your liability accounts.
accounting representation
(Oracle Subledger Accounting) A consistent representation of the financial situation of
an organization expressed in terms of journal entries and account balances. An
organization can use multiple primary and secondary accounting representations, each
oriented towards a different audience of financial readers. For example, a U.S.
organization with a legal entity in France may utilize a French Fiscal accounting
representation oriented towards the French auditors. It may also use a U.S. GAAP
representation, which is used for consolidating financial statement results with the U.S.
operations and read by U.S. investors.
accounting rules
Rules that you can use for imported and manually entered transactions to specify
revenue recognition schedules. You can define an accounting rule in which revenue is
recognized over a fixed or variable period of time. For example, you can define a fixed
duration accounting rule with monthly revenue recognition for a period of 12 months.
Glossary-4
accounting sequence
See: Sequence, page Glossary-83
accrual journal entry
(Oracle Subledger Accounting) A journal entry created to record revenue or expenses,
which can be incurred over multiple GL periods. Typically, these items are booked into
a deferred or prepaid account and later recognized in the periods in which they are
incurred with an accrual reversal entry.
ACE
See: adjusted current earnings, page Glossary-6
ACE book
A tax book for Adjusted Current Earnings ("ACE") tax calculations.
ACH (Automated Clearing House)
In Oracle Payments, the network commonly used in the United States for low value
electronic funds transfers.
acknowledgment file
In Oracle Payments, a file provided by a payment system in response to a settlement
batch or electronic payment instruction, indicating that the payment system has read
and can understand the settlement batch or payment instruction.
acquisition
(Oracle Trading Community Architecture) The part of the DQM matching process that
matches input record attributes against the attributes in the staged schema to get a
smaller group of records that form the work unit. This process narrows down the
records that can be scored in the scoring part of the matching process.
acquisition attribute
(Oracle Trading Community Architecture) Attributes used for selecting the most
relevant subset of records for matching, or the work unit. For example, to get records
based on D-U-N-S Number, you include the D-U-N-S Number attribute for acquisition.
acquisition and disposal category
(Oracle Financial Consolidation Hub) A category that enables users to automate
accounting entries or input manual entries as a result of acquisition and disposals.
activity
In Oracle Receivables, a name that you use to refer to a receivables activity such as a
payment, credit memo, or adjustment.
Glossary-5
In Oracle Advanced Collections, events that occur during a customer interaction, such
as taking a payment, submitting a dispute, or sending a dunning letter.
adapter
(Oracle Trading Community Architecture) A device that enables different pieces of
software to be compatible. In the context of address validation, adapters facilitate
integration between the TCA Registry and a third party or a deploying company data
source.
adjusted current earnings ("ACE")
A set of depreciation rules defined by United States tax law. Oracle Assets supports the
Adjusted Current Earnings tax rules.
advance
In Oracle Payables, an advance is a prepayment paid to an employee. You can apply an
advance to an employee expense report during expense report entry, once you fully pay
the advance.
In Oracle Payables, payments made before work commences, which are not necessarily
tied to the completion of a task or a milestone.
agent
In Oracle Payables, Receivables and General Ledger, an individual responsible for
providing goods or services or authorizing their provision to another government entity
or recipient.
In Oracle Cash Management, the customer name or supplier name on a bank statement
line.
aggregate balance
The sum of the end-of-day balances for a range of days. There are three types of
aggregate balances: period-to-date (PTD), quarter-to-date (QTD), and year-to-date
(YTD). All three are stored in the General Ledger database for every calendar day.
aggregation category
The Aggregation category creates consolidated financial results for each consolidation
entity. It writes to the consolidation entity the summation of data for all children across
all categories.
aging buckets
In Oracle Receivables and Oracle Payables, time periods you define to age your debit
items. Aging buckets are used in the Aging reports to see both current and outstanding
debit items. For example, you can define an aging bucket that includes all debit items
that are 1 to 30 days past due.
Glossary-6
In Oracle Cash Management, aging buckets are used to define time periods represented
in the forecast. Examples of aging buckets are date ranges or accounting periods.
allocation entry
A journal entry you use to allocate revenues or costs.
AMB
See: Accounting Methods Builder
amount-based order
In Oracle Payables, an order you place, receive, and pay, based solely on the amount of
service you purchase.
applicable tax
A tax identified as chargeable for a specific transaction.
application
(Oracle E-Business Tax) In the context of a tax rule, the setting that indicates that a rule
only applies to event classes belonging to that application.
application accounting definition
(Oracle Subledger Accounting) The collection of setups or rules that determine how
accounting events are processed by the Subledger Accounting program to create
subledger and general ledger journal entries. The application accounting definition
includes journal line types, account derivation rules, journal entry descriptions, and
journal lines definitions. These components are set up in the AMB.
application event class
A category of documents or transactions of an Oracle E-Business Suite application.
application event type
An action on a document or transaction of an application event class. Typical event
types include Create, Cancel, and Validate.
application events mapping
A mapping of an application event class to a tax event class.
appropriation
An authorization by a legislative body that permits a government to incur obligations
and make payments for specified purposes. An appropriation usually follows
enactment of authorizing legislation. Appropriations are limitations on the amounts
agencies can obligate during the time specified in the appropriation act.
Glossary-7
approval limits
Limits you assign to users for creating adjustments and approving credit memo
requests. Receivables enforces the limits that you define here when users enter
receivables adjustments or approve credit memo requests initiated from iReceivables.
When users enter adjustments that are within their approval limit, Receivables
automatically approves the adjustment. When users enter adjustments outside their
approval limit, Receivables assigns a status of pending to the adjustment.
archive
To archive a fiscal year is to copy the depreciation expense and adjustment transaction
data for that year to a storage device.
area code time zone
A time zone that corresponds to a specific area code, used for countries that have
multiple time zones.
assessable value
(Oracle E-Business Tax) The deemed price at which a product is valued, by a tax
authority, for tax calculation purposes. The same product can have more than one
assessable value, as given by different tax authorities.
asset account
A general ledger account to which you charge the cost of an asset when you purchase it.
You must define an account as an asset account.
attribute
An Oracle Financial Analyzer database object that links or relates the values of two
dimensions. For example, you might define an attribute that relates the Sales District
dimension to the Region dimension so that you can select data for sales districts
according to region.
(Oracle Trading Community Architecture) Corresponds to a column in a TCA registry
table, and the attribute value is the value that is stored in the column. For example,
party name is an attribute and the actual values of party names are stored in a column
in the HZ_PARTIES table.
attribute group
A group of closely related attributes within the same entity. The values for each
attribute in a group must come from the same data source.
authorization
In Oracle Payments, the first of two steps involved in capturing funds from a credit card
or a debit card. This step usually involves checking that the credit card has sufficient
Glossary-8
funds for payment and reserving the transaction amount for settlement. Once an
authorization is obtained, then the second step, settlement, can be performed. For some
payment systems, debit card authorization includes the settlement step. Payments
works with payment systems to perform authorizations in real time.
AutoAccounting rule
In Oracle General Ledger, rules you define for the Global Intercompany System (GIS) to
generate intercompany transactions automatically.
autoallocation set
A group of allocation rules that you can run in sequence that you specify (step-down
allocations) or at the same time (parallel allocations).
See also: step-down allocation, page Glossary-88, parallel allocation, page Glossary-60
automatic event
An event with an event type classification of Automatic. Billing extensions create
automatic events to account for the revenue and invoice amounts calculated by the
billing extensions.
automatic merge threshold
(Oracle Trading Community Architecture) Value used in DQM matching to evaluate
match scores. A record with a score that exceeds the automatic merge threshold is by
default selected for party merge.
average balance
The amount computed by dividing an aggregate balance by the number of calendar
days in the related range.
average exchange rate
An exchange rate that is the average rate for an entire accounting period. General
Ledger automatically translates revenue and expense account balances using
period-average rates in accordance with FASB 52 (U.S.). And, for companies in highly
inflationary economies, General Ledger uses average exchange rates to translate your
non-historical revenue and expense accounts in accordance with FASB 8 (U.S.). Also
known as period-average exchange rate.
back-value transactions
Transactions whose effective date is prior to the current accounting date. Also known as
value-dated transactions.
balance entity
An organization represented as a balancing segment value in the accounting flexfield.
Equivalent of a fund in government organizations. Examples of balancing entities are
Glossary-9
companies, strategic business units, and divisions.
balance reports
Reports that print a balance summed by period (range), third party, balancing segment,
and accounting segment. A balance report only reports within a fiscal year. A balance is
only printed for accounts that are marked as control accounts.
balancing segment
An Accounting Flexfield segment that you define so that General Ledger automatically
balances all journal entries for each value of this segment. For example, if your
company segment is a balancing segment, General Ledger ensures that, within every
journal entry, the total debits to company 01 equal the total credits to company 01.
bank account transfers
In Oracle Payments, a funds capture transaction that captures funds by directly
deducting the payment amount from the payer's bank account. Bank account transfers
are often used for recurring payments such as utility expenses. Bank account transfers
may include an optional step that validates the payer's bank account. See Bank Account
Verifications.
bank account verification
In Oracle Payments, an optional first step in a bank account transfer. It varies by
payment system and business process, and is not always performed. Rather than
reserving funds like credit card authorizations, the bank account verification provides a
payee with some assurance that payment will be made, by checking that the account
exists, or that it does not appear on black lists.
bank file
In Oracle Receivables and Oracle Payables, the data file you receive from the bank
containing all of the payment information that the bank has deposited in your bank
account.
In Oracle Cash Management, the electronic statement file you receive from your bank
(for example, BAI format or SWIFT940). It contains all transaction information that the
bank has processed through your bank account.
bank identification code
Formerly known as SWIFT code, identifies a bank or bank branch for electronic funds
and wire transfers.
bank transaction code
The transaction code used by a bank to identify types of transactions on a bank
statement, such as debits, credits, bank charges, and interest. You define these codes for
each bank account using the Cash Management Bank Transaction Codes window.
Glossary-10
base amount
The amount that represents the denominator for the ratio used to determine the amount
due. You specify your base amount when you define your payment terms.
Amount Due = Relative Amount/Base Amount * Invoice Amount
base model
The model item from which a configuration item was created.
base organization
(Oracle Financial Consolidation Hub) An organization that is used during consolidation
processing as a default for automatic creation of consolidation entries.
base rate modifier
The rate by which a line amount is increased or decreased. To calculate tax on a reduced
base, the base rate modifier can be entered as a negative number.
baseline
To approve a budget for use in reporting and accounting.
baseline budget
The authorized budget for a project or task which is used for performance reporting
and revenue calculation.
basis reduction rate
Each Investment Tax Credit Rate has a basis reduction rate associated with it. Oracle
Assets applies the basis reduction rate to the ITC basis to determine the amount by
which it will reduce the depreciable basis. Oracle Assets displays the basis reduction
rate with its corresponding investment tax credit rate in the Assign Investment Tax
Credit form so you can easily see whether the rate you choose will reduce the
depreciable basis of the asset.
batch source
A source you define in Oracle Receivables to identify where your invoicing activity
originates. The batch source also controls invoice defaults and invoice numbering. Also
known as a transaction batch source.
beginning balance
The beginning balance is the balance of the transaction item as of the beginning GL Date
that you specified. This amount should be the same as the Outstanding Balance amount
of the Aging - 7 Buckets Report where the As Of Date is the same as the beginning GL
Date.
Glossary-11
BIC
See: bank identification code, page Glossary-10
bilateral netting
In Oracle Payables, when receivables and payables are netted for one trading partner
where two entitles are the same in the system, such as Customer ABC and Supplier
ABC.
bill in advance
An invoicing rule that enables you to record the receivable at the beginning of the
revenue recognition schedule for invoices that span more than one accounting period.
See also: invoicing rules, page Glossary-49, bill in arrears, page Glossary-12
bill in arrears
An invoicing rule that records the receivable at the end of the revenue recognition
schedule for invoices that span more than one accounting period.
See also: invoicing rules, page Glossary-49, bill in advance, page Glossary-12
Bill of Exchange
In Oracle Cash Management, a method of payment involving the transfer of funds
between bank accounts, where one party promises to pay another a specified amount
on a specified date.
In Oracle Payables, a method of payment. Also known as a future dated payment in
some countries, including France.
bills payable
In Oracle Payables, an agreement made with your supplier, in which a promise is made
to pay a specified amount on a specific date (called the maturity date) for goods or
services.
bill-to address
The address of the customer who is to receive the invoice. Equivalent to Invoice To
Address in Oracle Order Management.
bill-to site
A customer location to which you have assigned a Bill-To business purpose. You can
define your customer's bill-to sites in the Customers windows.
bills receivable
In Oracle Receivables, promissory notes used primarily between companies for
business payments.
Glossary-12
black box
(Oracle Trading Community Architecture) An abstraction of a device or system in
which only its externally visible behavior is considered and not its implementation or
inner workings. In the context of TCA adapters for address validation, a black box is a
central XML open-standards based functionality that allows integration between the
TCA Registry and third party or other data sources, through adapters. The black box
accepts requests from callers, sends requests to adapters, and receives the adapters'
responses.
blanket purchase agreement
In Oracle Payables, a type of purchase order you issue before you request actual
delivery of goods or services.
book
See: depreciation book, page Glossary-28
bridging account
An inventory bridging account is an offset account used to balance your accounting
entries. In some European countries, a bridging account is a legal requirement.
broken promise to pay
In Advanced Collections, an unfulfilled promise to pay with a past due promise
payment date.
budget
Estimated cost, revenue, labor hours or other quantities for a project or task. Each
budget may optionally be categorized by resource. Different budget types may be set
up to classify budgets for different purposes. In addition, different versions can exist for
each user-defined budget type: current, original, revised original, and historical
versions. The current version of a budget is the most recently baselined version.
See also: budget line, page Glossary-13
budget book
A book that you use to track planned capital expenditures.
budget formula
A mathematical expression used to calculate budget amounts based on actual results,
other budget amounts and statistics. With budget formulas, you can automatically
create budgets using complex equations, calculations and allocations.
budget hierarchy
A group of budgets linked at different levels such that the budgeting authority of a
lower-level budget is controlled by an upper-level budget.
Glossary-13
budget line
Estimated cost, revenue, labor hours, or other quantity for a project or task categorized
by a resource.
budget organization
In Oracle Payables, an entity (department, cost center, division or other group)
responsible for entering and maintaining budget data. You define budget organizations
for your company, then assign the appropriate accounts to each budget organization.
budget rules
A variety of shorthand techniques you can use to speed manual budget entry. With
budget rules you can divide a total amount evenly among budget periods, repeat a
given amount in each budget period or enter budget amounts derived from your
account balances.
budget worksheet
Oracle Assets holds your budget in the budget worksheet so that you can review and
change it before you load it into your budget book. Your budget must be in a budget
book before you can run depreciation projections or reports.
In Oracle General Ledger, a worksheet that contains budget data. In the Enter Budget
Amounts window in Oracle General Ledger, you can choose the Worksheet mode to
enter budgets for several accounts at once. You can also use Applications Desktop
Integrator to upload budget data from an Excel worksheet to Oracle General Ledger.
budgetary account
An account segment value (such as 6110) that is assigned one of the two budgetary
account types. You use budgetary accounts to record the movement of funds through
the budget process from appropriation to expended appropriation.
budgetary account type
Either of the two account types Budgetary DR and Budgetary CR.
budgetary control
An Oracle Financials feature you use to control actual and anticipated expenditures
against a budget. When budgetary control is enabled, you can check funds online for
transactions, and you can reserve funds for transactions by creating encumbrances.
Oracle Financials automatically calculates funds available (budget less encumbrances
less actual expenditures) when you attempt to reserve funds for a transaction. Oracle
Financials notifies you online if funds available are insufficient for your transaction.
business entity
A person, place, or thing that is tracked by your business. For example, a business entity
Glossary-14
can be an account, a customer, or a part.
business events
(Oracle Subledger Accounting) Occurrences of operational significance that are
captured and recorded by Oracle applications. They are also referred to as transactions.
The nature of business events differs by application. Not all business events create
accounting events. Examples of business events that are accounting events include
issuing invoices to customers, issuing payments to suppliers, and retiring an asset. An
example of a business event which is not an accounting event is receiving a customer
call.
business group
An organization representing the consolidated enterprise, a major division, or an
operation company used by Human Resources application. A business group (BG) is a
highest level in an organization hierarchy.
Business Information Report
(Oracle Trading Community Architecture) A report that provides many of the data
elements from the D&B database in a standard report format.
business object
(Oracle Trading Community Architecture) An abstract grouping of Oracle Trading
Community Architecture entities to form an operable, logical business unit. Business
objects contain attributes specific to that object, as well as embedded business objects,
business structures, and granular entities.
See also: business structure, page Glossary-15entity, page Glossary-32
business purpose
(Oracle Trading Community Architecture) Also known as site use, a business purpose
describes which functions are performed at a particular customer account site. For
example, the address where you ship your goods has a ship-to business purpose, and
the address where you will send dunning letters has a dunning business purpose.
business structure
The same as a business object, except that you cannot perform operations and services
on them individually, for example with APIs. Business structures can contain
embedded business structures and granular entities, but not embedded business
objects.
See also: business object, page Glossary-15entity, page Glossary-32
business unit
An organizational group within an enterprise. See also: organization.
Glossary-15
buyer
In Oracle Payables, the person responsible for placing item resupply orders with
suppliers and negotiating supplier contracts.
calculated tax lines
(Oracle E-Business Tax) The tax lines determined automatically by Oracle E-Business
Tax for a given transaction line.
calendar map
(Oracle Financial Consolidation Hub) Is a user-defined mechanism that defines the
relationship between the periods of two different calendars.
caller
(Oracle Trading Community Architecture) A source that sends requests to black boxes
for data services through integration with adapters. Examples of callers are concurrent
programs and APIs.
candidate
A record that Payables selects to purge based on the last activity date you specify.
Payables only selects records that you have not updated since the last activity date you
specify. Payables does not purge a candidate until you confirm a purge.
candidate record
See: duplicate, page Glossary-31
capital gain threshold
The minimum time you must hold an asset for Oracle Assets to report it as a capital
gain when you retire it. If you hold an asset for at least as long as the capital gain
threshold, Oracle Assets reports it as a capital gain when you retire it. If you hold the
asset for less than the threshold, Oracle Assets reports it as an ordinary income from the
retirement.
cash activity date
The date that the cash flow from the source transaction is expected to affect your cash
position. When Cash Management generates a forecast, it includes source transactions
whose cash activity date falls within the time period you defined.
cash clearing account
The cash clearing account you associate with a payment document. You use this
account if you account for payments at clearing time. Oracle Payables credits this
account instead of your Asset (Cash) account and debits your Liability account when
you create accounting entries for uncleared payments. Oracle Payables debits this
Glossary-16
account and credits your Asset (Cash) account once you clear your payments in Oracle
Cash Management.
cash-generating unit (CGU)
A cash-generating unit is the smallest identifiable group of assets that generates cash
inflows that are largely independent of the cash inflows from other assets or groups of
assets.
category
(Oracle Financial Consolidation Hub) Categories control how a consolidation is
processed and reported. They provide a means of grouping process logic, as well as
specifying parameters impacting the output of such logic.
category use
(Oracle Trading Community Architecture) Controls which object can use a given class
category. For example, the SIC code 1977 can be used only by parties of type
Organization.
certification level
A level that identifies the extent to which a record is certified, according to quality
standards that your organization sets. The record is manually evaluated and assigned
the certification level.
chart of accounts
The account structure your organization uses to record transactions and maintain
account balances.
chart of accounts security
Restricts user access to those charts of accounts associated with that user's
responsibility.
chart of accounts structure
See: Accounting Flexfield Structure, page Glossary-3
check
In Oracle Payables, a bill of exchange drawn on a bank and payable on demand. Or, a
written order on a bank to pay on demand a specified sum of money to a named
person, to his or her order, or to the bearer out of money on deposit to the credit of the
maker. A check differs from a warrant in that a warrant is not necessarily payable on
demand and may not be negotiable. It differs from a voucher in that a voucher is not an
order to pay.
Glossary-17
check overflow
A check printing situation where there are more invoices paid by a check than can fit on
the remittance advice of the check.
child segment value
A value that lies in a range of values belonging to one or more parent values. You can
budget, enter, and post transactions to child values only.
circular relationship
Circular relationships participate in a circle of relationships between entities. For
example, Party A is related to Party B, who is related to Party C, who is related to Party
A.
claim
A discrepancy between the billed amount and the paid amount. Claims are often
referred to as deductions, but a claim can be positive or negative.
class category
Consists of multiple classification codes that allow for broad grouping of entities.
Categories can have rules pertaining to a set of class codes, for example, Multiple
Parent, Multiple Assignment, and Leaf Node Assignment rules.
class code
Provides a specific value for a class category.
classification
A means of categorizing different objects in Oracle Applications. Classifications are not
limited to parties but can include projects, tasks, orders, and so on. Classifications can
be user defined or based on external standards, such as the NAICS (North American
Industrial Classification System), NACE (European Union's Statistical Classification of
Economic Activity), or SIC (Standard Industrial Classification).
class qualifier
(Oracle E-Business Tax) A categorization that further qualifies a tax determining factor
that is used in a tax rule. For example, the class qualifier "Ship From" or "Ship To"
further qualifies the tax determining factor class of Party Fiscal Classification.
clear
A payment status when the bank has disbursed funds for the payment, and the
payment has been cleared but not matched to a bank statement within Oracle Cash
Management.
Glossary-18
clearing account
An account used to ensure that both sides of an accounting transaction are recorded.
For example, Oracle General Ledger uses clearing accounts to balance intercompany
transactions.
When you purchase an asset, your payables group creates a journal entry to the asset
clearing account. When your fixed assets group records the asset, they create an offset
journal entry to the asset clearing account to balance the entry from the payables group.
code (code name)
In Subledger Accounting, uniquely identifies an object. The object code is the internal
key used by programs and routines to refer to the object. Because object names are
translated, Subledger Accounting uses object codes to uniquely identify the object.
code relationship
(Oracle Trading Community Architecture) Relates various class codes within a category
in a hierarchy. For example, IT is a parent of Software.
commitment
In Oracle Receivables, a contractual guarantee with a customer for future purchases,
usually involving deposits or prepayments. You can create invoices against the
commitment to absorb the deposit or prepayment. Receivables automatically records all
necessary accounting entries for your commitments. Oracle Order Management allows
you to enter order lines against commitments.
In Oracle General Ledger, an encumbrance type typically associated with purchase
requisitions to track expenditures. You can view funds available and report on
commitments. Oracle Order Management allows you to enter order lines against
commitments.
company values
(Oracle Financial Consolidation Hub) Serves as the linkage between the company
segment of General Ledger operational balances and Financial Consolidation Hub
entities.
complete invoice
An invoice with a status of Complete. When you enter a new invoice, the status remains
incomplete until you actually choose to complete it. To have a status of Complete, the
invoice total must be greater than or equal to zero, the invoice must have at least one
invoice line, revenue records must exist for each line, revenue records for each line must
add up to the line amount, and a tax and revenue credit record must exist for each line.
complete matching
A condition where the invoice quantity matches the quantity originally ordered, and
Glossary-19
you approve the entire quantity.
See also: matching, page Glossary-54, partial matching, page Glossary-61
compound tax
A method of calculating tax on top of other tax charges. You can create compound taxes
in the Transactions window or with AutoInvoice.
compounded tax
A tax that is dependent on (the tax value of) one or more taxes.
compounding regime
A tax regime used to fully qualify a compounding tax.
compounding rule
A rule used in the context of a tax calculation formula to indicate whether a
compounding tax is added or subtracted.
compounding tax
A tax that is used in deriving the value of a compounded tax.
configuration option
The settings for a first party and each tax regime assigned to the party that indicate that
the first party is subject to the regime and that designate how the tax and tax rules for
the regime are maintained and/or shared.
configuration owner
A legal entity or operating unit that owns the responsibility of maintaining tax content.
consolidation
The process of combining the financial results of multiple companies into one financial
statement. See: Global Consolidation System in the Oracle General Ledger User Guide.
consolidation entity
(Oracle Financial Consolidation Hub) An entity that contains consolidated balances. A
consolidation entity may own other consolidation or operating entities, and aggregates
its immediate children.
consolidation global value set combination
(Financial Consolidation Hub) Determines the value set used for consolidation for each
dimension.
Glossary-20
consolidation hierarchies
(Financial Consolidation Hub) A user-defined, date-effective structure that represents
the parent/child relationships of entities that are processed during consolidation.
consolidation hierarchy structure
(Financial Consolidation Hub) The hierarchy structure that comprises consolidation
entities, elimination entities, and operating entities. Each entity, other than the top
entity, has relationship attributes that define the nature of its association with its parent
or parents.
consolidation method
(Financial Consolidation Hub) A mechanism that defines the accounting method
applied during consolidation. Consolidation rules are assigned to each consolidation
method. A consolidation method is assigned to each parent child/relationship within
the Consolidation Hierarchy user interface.
consolidation of balances
Recalculating the balances for a third party is sometimes called consolidation or
consolidation of balances. This consolidation is not related to the General Ledger
consolidation functionality.
consolidation process
(Financial Consolidation Hub) The process that brings together financial data from
disparate sources to create a single, global view of financial information across the
entire enterprise.
consolidation rule
(Financial Consolidation Hub) A user-defined mechanism that enables you to automate
the creation of consolidation entries during consolidation processing.
consolidation ledger
A ledger into which you consolidate the financial results of multiple companies. You
can consolidate actual, average, translated, budget, and statistical balances.
A field in Oracle General Ledger's ledger window that must be enabled in order to
consolidate average balances
constant unit of money
A constant unit of money represents the real value of money at the end of a period.
Financial statements must be prepared using the constant unit of money. The constant
unit of money is independent of any methods used to evaluate a company's assets.
Glossary-21
contact
In Oracle Receivables, a representative who is responsible for communication between
you and a specific part of your customer's company. For example, your customer may
have a shipping contact person who handles all questions regarding orders shipped to
that address. Receivables lets you enter contacts for your customers, addresses, and
business purposes.
contact point
A means of contacting a party other than postal mail, for example, a phone number,
e-mail address, fax number, and so on.
contact preference
Provides information about when and how parties prefer to be contacted. You can
specify the subjects on which to contact a party, the number of times to contact a party,
and the reason for specifying a contact preference. You can also set preferences for a
party's e-mail address or phone number.
contact role
A responsibility that you associate to a specific contact. Oracle Receivables provides 'Bill
To', 'Ship To', and 'Statements,' but you can enter additional responsibilities.
contract financing
In Oracle Payables, financing that is paid based on work performed or cost to date. If
the contractually specified performance or cost milestones are met, financing is given to
aid in the completion of subsequent work prior to the delivery of the contract line item.
contract financing payment
In Oracle Payables, payments that are made before final acceptance of work or
products. In the government sector, financing Payments include advances, performance
based Payments, and progress payments. In the private sector, only advances are
considered financing, while progress Payments are invoiced.
control account
An accounting segment status for an account combination. This type of account is used
in subledgers such as Payables or Receivables. Control accounts are used to maintain
special balances for third parties per period. You should not change control accounts
from a General Ledger responsibility; define and use security to protect your control
accounts.
control amount
A feature you use to specify the total amount available for payment of a recurring
payment. When you generate invoices for a recurring payment, Oracle Payables uses
the control amount and the total number of payments to determine the invoice amount.
Glossary-22
control book
A tax book, used for mass depreciation adjustments, that holds the minimum
accumulated depreciation for each asset.
controlling entity
(Financial Consolidation Hub) A controlling entity is an operating entity that is
associated with a consolidation entity.
conversion
A process that converts foreign currency transactions to your ledger currency.
See also: foreign currency conversion, page Glossary-37
Corporate book
A depreciation book that you use to track financial information for your balance sheet.
corporate exchange rate
An exchange rate you can optionally use to perform foreign currency conversion. The
corporate exchange rate is usually a standard market rate determined by senior
financial management for use throughout the organization. You define this rate in
Oracle General Ledger.
country structure
A hierarchical definition of geography types for a country. For example, the structure
for United States is: State, County, City, then Postal Code.
country time zone
A time zone that applies to an entire country.
credit invoice
An invoice you receive from a supplier representing a credit amount that the supplier
owes to you. A credit invoice can represent a quantity credit or a price reduction. You
can create a mass addition line from a credit invoice and apply it to an asset.
credit items
Any item you can apply to an open debit item to reduce the balance due for a customer.
Oracle Receivables includes credit memos, on-account credits, and unapplied and
on-account cash as credit items. Credit items remain open until you apply the full
amount to debit items.
credit memo
In Oracle Payables, a document that partially or fully reverses an original invoice.
Glossary-23
In Oracle Receivables, a document that partially or fully reverses an original invoice.
You can create credit memos in the Receivables Credit Transactions window or with
AutoInvoice.
cross currency receipt
A receipt that is applied to a transaction denominated in a currency different than that
of the receipt. Cross currency receipt applications usually generate a foreign exchange
gain or loss due to fluctuating exchange rates between currencies.
cross rate
An exchange rate you use to convert one foreign currency amount to another foreign
currency amount. In Oracle Payables, you use a cross rate to convert your invoice
currency to your payment currency.
cross site and cross customer receipts
Receipts that you apply across customers and sites and are fully applied. Each of these
receipts appears on the statements of the customer site that owns the receipt. The
invoice(s) to which you have applied a cross receipt appear on the statement of the
customer or site that owns the invoice.
cross-regime compounding
The process whereby taxes from one regime are compounded with taxes of another
regime.
cross-validation rules
Rules that restrict the user from entering invalid key flexfield segment value
combinations during data entry. For example, you may set up a cross-validation rule
that disallows using department segments with balance sheet accounts.
Cumulative Translation Adjustment
A balance sheet account included in stockholder's equity in which Oracle General
Ledger records net translation adjustments in accordance with FASB 52 (U.S.). You
specify the account you want to use for Cumulative Translation Adjustment when you
define each ledger in the ledger window.
customer
(Oracle Trading Community Architecture) A person or organization that the deploying
company has a selling relationship with, regardless of whether anything has been
purchased or serviced. A selling relationship can be established simply by negotiation
terms that will be used if you later sell products.
customer address
A location where your customer can be reached. A customer can have many addresses.
Glossary-24
You can also associate business purposes with addresses.
customer bank
A bank account you define when entering customer information to allow funds to be
transferred from these accounts to your remittance bank accounts as payment for goods
or services provided.
See also: remittance bank, page Glossary-78
customer class
A method to classify your customers by their business type, size, or location. You can
create an unlimited number of customer classes. (Receivables Lookup)
customer contact
A specific customer employee with whom you communicate. Oracle Receivables lets
you define as many contacts as you wish for each customer. You can also define
contacts for an address and assign previously defined contacts to each business
purpose.
customer profile
A method used to categorize your customers based on credit information. Receivables
uses credit profiles to assign statement cycles, dunning letter cycles, salespersons, and
collectors to your customers. You can also decide whether you want to charge your
customers interest. Oracle Order Management uses the order and total order limits
when performing credit checking.
customer profile class
A category for your customers based on credit information, payment terms, currency
limits, and correspondence types.
customer relationship
An association that exists between customers which lets you apply payments to related
customers, apply invoices to related customer's commitments, and create invoices for
related customers.
customer site
A site where a customer is located. A customer can have more than one site. Site names
can more easily identify a customer address, facilitating invoice and order entry.
See also: location, page Glossary-53
D&B hierarchy
(Oracle Trading Community Architecture) Contains hierarchical corporate relationships
that D&B provides through batch load and the online Enterprise Management Global
Data Product (GDP). You can view this corporate structure in a relationship hierarchy.
Glossary-25
Data Quality Management (DQM)
(Oracle Trading Community Architecture) A set of tools to keep the TCA registry clean
and accurate, with matching, duplicate identification, and merging functionality.
data element
(Oracle Trading Community Architecture) A piece of information in a data product that
you can use to identify, contact, and evaluate the credit risk of parties. The complete
D&B database includes over 150 key business data elements. Examples of data elements
include the D-U-N-S Number, local business ID, and D&B rating.
data product
(Oracle Trading Community Architecture) A fixed set of data elements from D&B
containing country-specific information to meet your business decision-making criteria.
data sharing group
Groups information about business entities such as parties, their addresses, contact
points, relationships, and the like based on criteria such as classifications, relationship
types, or created by modules. For example, one Data Sharing Group might be created
for patients, another for employees, and another for parties classified as both patients
and employees. A security administrator may then assign privileged access to create,
update, or delete information secured by this Data Sharing Group based on the
applicable business policy.
data source
The source of the records in the TCA Registry; for example user entered or third party.
date placed in service
The calendar date on which you start using an asset.
debit authorization
In Oracle Payments, a third party payer, in some regions, may need to provide written
permission to authorize a first party payee to initiate debits against the payer's bank
account. Payments can keep records of these debit authorizations.
debit invoice
In Oracle Payables, an invoice you generate to send to a supplier representing a credit
amount that the supplier owes to you. A debit invoice can represent a quantity credit or
a price reduction.
debit items
Any item that increases your customer's balance. Oracle Receivables includes invoices,
debit memos, and chargebacks as debit items. Debit items remain open until the balance
Glossary-26
due is zero.
debit memo
Debit that you assign to a customer to collect additional charges. For example, you may
want to charge a customer for unearned discounts taken, additional freight charges,
taxes, or finance charges.
debit memo reversal
A reversal of a payment that generates a new debit memo, instead of reopening old
invoices and debit memos.
deduction
See: claim, page Glossary-18
default recovery settlement
The default for the moment either when the tax recovery is used to reduce tax due, or
when the tax liability becomes due for settlement (typically in the next reporting
period). The values are immediate (at invoice time) or deferred (when, and to the extent,
payment is made).
deferred tax
A tax for which the accrual, both due and recoverable, (and therefore the settlement
and/or reporting) is delayed beyond the invoice date, based on special tax regulations
specified by a tax authority. The deferred tax only applies to a subset of transactions.
delinquency
An open (unpaid) invoice, debit memo, or chargeback with a past due date.
delinquency status
The status of a transaction assigned by a scoring engine. It can be current,
pre-delinquent or delinquent.
denomination currency
In some financial contexts, a term used to refer to the currency in which a transaction
takes place. In this manual, this currency is called transaction currency.
See also: transaction currency, page Glossary-98
deploying company
The Oracle customer that has or will install, implement, and run all or part of the Oracle
E-Business Suite.
deposit
A type of commitment whereby a customer agrees to deposit or prepay a sum of money
Glossary-27
for the future purchase of goods and services.
depreciable basis rule
Depreciable basis rules provide a means of calculating the asset bases to which the
depreciation rate will be applied. Examples are PA (Period Average Balance), PE
(Period End Balance), and YA (YTD Average Balance). You select these rules when
defining a depreciation method. The basis rule and depreciation method together
determine how the depreciable basis and depreciation expense are derived.
depreciation book
A book to store financial information for a group of assets. A depreciation book can be
corporate, tax, or budget. Also known as book.
depreciation calendar
The depreciation calendar determines the number of accounting periods in a fiscal year.
It also determines, with the divide depreciation flag, what fraction of the annual
depreciation amount to take each period. You must specify a depreciation calendar for
each book.
depreciation factor
A denominator that is used to derive the depreciation rate for declining methods that
function under Polish regulations.
depreciation projection
The expected depreciation expense for specified future periods.
detail budget
A lower level budget whose authority is controlled by a Master budget.
dimension
An Oracle Financial Analyzer database object used to organize and index the data
stored in a variable. Dimensions answer the following questions about data: "What"
"When" and "Where" For example, a variable called Units Sold might be associated
with the dimensions Product, Month, and District. In this case, Units Sold describes the
number of products sold during specific months within specific districts.
dimension values
Elements that make up an Oracle Financial Analyzer dimension. For example, the
dimension values of the Product dimension might include Tents, Canoes, Racquets, and
Sportswear.
disbursement request
In Oracle Payables, a request for payment to a payee that is not a supplier. For example,
Glossary-28
a request to disburse funds to a borrower or to refund a Receivables customer.
disbursement type
A feature you use to determine the type of payment for which a payment document is
used. For example, computer-generated payments and recorded checks or wire
transfers.
discount
In Oracle Payables, the amount or percentage that you allow a supplier to decrease the
balance due when making a payment. In Oracle Receivables, you use Payment Terms to
define customer discounts and can choose whether to allow earned and unearned
discounts.
See also: earned discounts, page Glossary-31, unearned discounts, page Glossary-100,
payment terms, page Glossary-66
dispute
In Advanced Collections and iReceivables, disputes about specific invoices or invoice
sections are submitted to AR where they can become credit memos.
distribution identifier
(Oracle Subledger Accounting) A distribution identifier corresponds to the sources that
form the unique key of transaction distributions. Examples of distribution identifiers
include invoice_distribution_id and distribution_id.
distribution line
In Oracle Assets, information such as employee, general ledger depreciation expense
account, and location to which you have assigned an asset. You can create any number
of distribution lines for each asset. Oracle Assets uses distribution lines to allocate
depreciation expense and to produce your Property Tax and Responsibility Reports.
In Oracle Payables, a line corresponding to an accounting transaction for an
expenditure item on an invoice, or a liability on a payment.
distribution link
In Subledger Accounting, a mechanism that ties subledger journal entry lines to their
supporting transaction distributions.
distribution set
In Oracle Payables, a feature you use to assign a name to a predefined expense
distribution or combination of distributions (by percentage). Payables displays on a list
of values the list of Distributions Sets you define. With Distribution Sets, you can enter
routine invoices into Payables without having to enter accounting information.
In Oracle Receivables, a predefined group of general ledger accounting codes that
determine the debit accounts for other receipt payments. Receivables lets you relate
Glossary-29
distribution sets to receivables activities to speed data entry.
distribution total
The total amount of the distribution lines of an invoice. The distribution total must
equal the invoice amount before you can pay or post an invoice.
document
The physical base of a transaction, such as an invoice, a receipt, or a payment.
document category
A document category is used to split transactions into logical groups. You can assign a
different sequence to each category and, by doing so, separately number each logical
group. Each category is associated with a table. When you assign a sequence to a
category, the sequence numbers the transactions in that table. Oracle Receivables lets
you set up categories for each type of transaction, receipt, and adjustment.
document fiscal classification
A tax classification used by a tax authority to categorize a document that is associated
with a transaction.
document payable
In Oracle Payments, a transaction in a source product that is sent to Oracle Payments
for payment. An example of a document payable is an invoice in Oracle Payables.
document receivable
In Oracle Payments, a transaction in a source product that requires settlement. An
example of a document receivable is an invoice in Oracle Receivables.
document sequence
A unique number that is manually or automatically assigned to documents such as
bank statements in Oracle Cash Management, invoices in Oracle Receivables, or journal
entries in Oracle General Ledger. Also used to provide an audit trail. Many countries
require all documents to be sequentially numbered. Document sequencing can also be
used in Public Sector implementations to comply with reporting and audit
requirements.
domestic transaction
Transactions between registered traders in the same EU (European Union) country.
Domestic transactions have VAT charged on goods and services with different
countries applying different VAT rates to specific goods and services.
See also: external transaction, page Glossary-35
Glossary-30
duplicate
A record that has been identified as a duplicate of at least one other record.
duplicate set
A group of records (such as parties, addresses or relationships) that has been identified
as potential duplicates of one another in appearance and/or function.
earned discounts
Discounts your customers are allowed to take if they remit payment for their invoices
on or before the discount date. The discount date is determined by the payment terms
assigned to an invoice. Oracle Receivables takes into account any discount grace days
you assign to this customer's credit profile. For example, if the discount due date is the
15th of each month, but discount grace days is 5, your customer must pay on or before
the 20th to receive the earned discount. Discounts are determined by the terms you
assign to an invoice during invoice entry.
See also: unearned discounts, page Glossary-100
effective date
The date a transaction affects the balances in the general ledger. This does not have to
be the same as the posting date. Also known as the value date.
elimination entity
(Financial Consolidation Hub) The entity that holds entries and adjustments produced
during the consolidation process. A unique elimination entity is automatically created
for each consolidation entity.
employee organization
The organization to which an employee is assigned.
employee supervisor hierarchy
In Oracle Payables, an approval routing structure based on employee/supervisor
relationships.
encumbrance
An entry you make to record anticipated expenditures of any type. Oracle Financials
create requisition encumbrances and purchase order encumbrances automatically when
encumbrance accounting or budgetary control is enabled. You can also record other
encumbrances manually. For example, you can record encumbrances for your payroll.
See also: encumbrance journal entry, page Glossary-32
encumbrance accounting
An Oracle Financials feature you use to create encumbrances automatically for
Glossary-31
requisitions, purchase orders, and invoices. The budgetary control feature uses
encumbrance accounting to reserve funds for budgets. If you enable encumbrance
accounting only, you can create encumbrances automatically or manually; however,
you cannot check funds online and Oracle Financials does not verify available funds for
your transaction.
See also: budgetary control, page Glossary-14
encumbrance commitment
In Oracle General Ledger and Oracle Payables, an encumbrance type typically
associated with purchase requisitions to track expenditures. You can view funds
available and report on commitments.
encumbrance journal entry
In Oracle Payables, a journal entry that increases or relieves encumbrances.
Encumbrance entries can include encumbrances of any type. If you have enabled
encumbrance accounting, when you successfully validate an invoice matched to an
encumbered purchase order, Oracle General Ledger automatically creates encumbrance
journal entries that relieve the original encumbrance journal entries. General Ledger
also creates new encumbrance journal entries for any quantity or price variance
between an invoice and the matched purchase order. General Ledger automatically
creates encumbrance journal entries for an unmatched invoice when you validate the
invoice.
encumbrance type
In Oracle General Ledger, an encumbrance category that allows you to track your
anticipated expenditures according to your purchase approval process and to more
accurately control your planned expenditures. Examples of encumbrance types are
commitments (requisition encumbrances) and obligations (purchase order
encumbrances).
end of period's unit of money
The end of period's unit of money is the value that represents money's acquiring power
as of period end.
ending balance
The ending balance represents the balance of the transaction as of the ending GL Date
that you have specified. This column should be the same as the Outstanding Balance of
the Aging - 7 Buckets Report for this item.
entity
(Oracle Trading Community Architecture) A group of related attributes in the TCA
Registry; for example Organization Profile, Person Profile, Address, and Contact Point.
Glossary-32
establishment
Establishments are 100-percent owned and controlled entities, also referred to as
branches, divisions, establishments (domestic or foreign), inventory organizations, and
physical locations (for example, manufacturing plants and warehouses). They can be a
physical (address) or logical (specific activity) subdivision of the legal entity
In many countries, establishments need to be registered with local regulatory bodies.
They have significant existence (their own address, often supporting local taxes and
regulations, in some countries a threshold of number of employees per site), or
significant business autonomy (for example, they may have their activity code, their
own budget, P&L, and handle their own bank accounts). They are not liable to the
outside world (and cannot be sued separately in court). They support or represent local
or distant registrations of the legal entity. They represent the Dun & Bradstreet Division
and Branch.
estimated index value
In some countries, if the index value for a period is not known, you can use an
estimated index value. The inflation adjustment process operates the same way as when
the exact index value is known.
See also: index value, page Glossary-43
event class
(Oracle Subledger Accounting) Represents the actions possible for a particular
transaction type or document. Application accounting definitions, which include
journal line types and descriptions, can be assigned by event class. This simplifies setup
when the accounting requirements for all event types within a class are the same. Also,
sources assigned to an event class are available for the accounting of all event types
within that event class.
(Oracle E-Business Tax) A categorization of events within an application, such as
Purchasing or Payables. For example, Purchasing event classes include Requisition;
Purchase Order and Agreement; and Release.
event class mapping
A mapping that indicates, for an application event class, the tax event class that it is
grouped under for tax purposes.
event entity
See: Accounting Event Entity
event entity identifier
(Oracle Subledger Accounting) A mechanism to link an event with its underlying
transaction. Event identifiers are stored on accounting events when an accounting event
is captured. For example, an identifier of check_id can be used to link a Payables
Glossary-33
payment event to the underlying payment transaction.
exact match
Matching method that requires an exact character match, as compared to a search that
uses the similarity algorithm.
exchange rate type
The source of an exchange rate. For example, user defined, spot, or corporate rate.
See also: corporate exchange rate, page Glossary-23, spot exchange rate, page Glossary87
exchange rate variance
The difference between the exchange rate for a foreign-currency invoice and its
matched purchase order. Payables tracks any exchange rate variances for your
foreign-currency invoices.
exemption certificate
A document obtained from a taxing authority which certifies that a customer or item is
either partially or fully exempt from tax. The document details the reason for the
exemption and the effective and expiration dates of the certificate.
expenditures
Activities that represent payments, repayments, or receipts for goods or services
provided. For some governments, expenditures include anticipated expenses, such as
encumbrances, in addition to activity that directly leads to an outlay of cash, such as an
invoice. In Oracle Public Sector Financials, the term expenditures includes actual
expenses and accrued liabilities. Expenditures do not include anticipated expenses, such
as encumbrances.
expensed asset
An asset that you do not depreciate, but charge the entire cost in a single period. Oracle
Assets does not depreciate an expensed asset, or create any journal entries for it. You
can, however, use Oracle Assets to track expensed assets. The Asset Type for these
assets is "Expensed".
expensed item
Items that do NOT depreciate; the entire cost is charged in a single period to an expense
account. Oracle Assets tracks expensed items, but does not create journal entries for
them.
extensions
(Oracle Trading Community Architecture) Extended attributes and their attribute
values. These custom attributes extend the TCA Registry. TCA extensions use the
Glossary-34
extensibility framework and features from Oracle Product Lifecycle Management
(PLM).
external bank accounts
In Oracle Payments, the third party's bank account.
external organization
See: organization, page Glossary-59
external transaction
Transactions between an EU (European Union) trader and a supplier or customer
located in a non-EU country. Customers and sites in non-EU countries are tax exempt
and should have a zero tax code assigned to all invoices.
See also: domestic transaction, page Glossary-30
extract
In Oracle Payments, an XML file that includes transaction and payment data that is
formatted by XML Publisher according to the requirements of the applicable payment
system to which it is submitted.
factor
In Oracle General Ledger, data upon which you perform some mathematical operation.
Fixed amounts, statistical account balances, account balances, and report rows and
columns are all data types you can use in formulas.
In Oracle Payables, the payee of an invoice when the payee differs from the supplier on
the invoice. For example, a supplier may have sold their receivables to a financial
institution or factor.
factoring
The process by which you sell your accounts receivable to a financial institution (such
as a bank) in return for cash. Financial institutions usually charge a fee for factoring.
feeder system
A non-Oracle system from which you can pass information into Oracle Assets. For
example, you can pass budget or production information from a spreadsheet into
Oracle Assets.
fiduciary funds
A fund type for which the accounting and reporting techniques depend on whether the
fund is expendable or nonexpendable. Examples of fiduciary funds include Trust and
Agency funds.
Glossary-35
final close
In Oracle Payables, a purchase order control you can assign to prevent modifications to
or actions against completed documents, lines, and shipments by final closing them.
Final-closed documents are not accessible in the corresponding entry windows and you
cannot perform the following actions against final-closed entities: receive, transfer,
inspect, deliver, correct receipt quantities, invoice, return to supplier, or return to
receiving.
financial data item
An Oracle Financial Analyzer database object that is made up of either a variable, or a
variable and a formula. For example, a financial data item called "Actuals" would be a
variable, while a financial data item called "Actuals Variance" would be made up of a
variable (Actuals) and a formula that calculates a variance.
financial institution
In Oracle Payments, the institution where an account is held and that disburses or
receives funds. There are various types of financial institutions: commercial banks,
building societies, and credit unions. Often, the term Bank is used instead of Financial
Institution.
Financial Statement Generator
A powerful and flexible report building tool for Oracle General Ledger. You can design
and generate fiancial reports, apply security rules to control access to data via reports,
and use specific features to improve reporting productivity.
first party payee
In Oracle Payments, the deploying company receiving funds for payment. The first
party payee receives funds from customers in various ways: by credit card payments,
by direct debits to bank accounts, and by bills receivable transactions sent to banks.
first party payer
In Oracle Payments, the deploying company making fund disbursements. The first
party payer disburses funds to pay suppliers, customer refunds, and to reimburse
employee expenses.
fiscal classification
A classification used by a tax authority. This is further divided into: party fiscal
classification, party site fiscal classification, product fiscal classification, transaction
fiscal classification, and document fiscal classification.
fiscal classification type
A scheme or system of classification or categorization used by a tax authority. Examples
of fiscal classification types are the SIC (Standard Industrial Classification), a party
Glossary-36
classification type; and the UNSPSC (United Nations Standard Products and Services
Code), a product classification type.
fiscal classification type group
A grouping of fiscal classification types where each type defines a different level of the
same fiscal classification.
fiscal document
A legal and/or business document used to support tax compliance.
fiscal representation
(Oracle Subledger Accounting) An accounting representation that typically contains no
more than the minimum data required to comply with statutory regulations.
See: Analytical Representation
fixed assets unit
A measure for the number of asset parts tracked in Oracle Assets. You can assign one or
more units to a distribution line.
fixed rate currencies
Currencies with fixed exchange rates. No longer applicable to EU member states.
flat tax
A specific amount of tax, regardless of the amount of the item. There is no rate
associated with flat taxes. Flat taxes are charged on items such as cigarettes, gasoline,
and insurance.
flexible address format
Oracle Applications allows you to enter an address in the format most relevant for the
country of your customer, supplier, bank, or remit-to site. This is done by using
descriptive flexfields to enter and display address information in the appropriate
formats. The descriptive flexfield opens if the country you enter has a flexible address
style assigned to it, allowing you to enter an address in the layout associated with that
country.
foreign currency
In General Ledger, a currency that is different from the ledger currency you defined for
your ledger. When you enter and pay a foreign currency invoice, Oracle Payables
automatically converts the foreign currency into your ledger currency at the rate you
define. General Ledger automatically converts foreign currency journal entries into
your ledger currency at the rate you define.
See also: , accounting currency, page Glossary-3
Glossary-37
foreign currency conversion
A process in Oracle Applications that converts a foreign currency transaction into your
ledger currency using an exchange rate you specify.
See also: foreign currency exchange gain or loss, page Glossary-38
foreign currency journal entry
A journal entry in which you record transactions in a foreign currency. Oracle General
Ledger automatically converts foreign currency amounts into your ledger currency
using an exchange rate you specify.
See also: foreign currency, page Glossary-37, accounting currency, page Glossary-3
foreign currency realized gain/loss
Gains or losses on foreign currency transactions due to foreign currency fluctuations.
Typically, the gain or loss is tracked for assets or liabilities for a period of time. Oracle
General Ledger posts all foreign currency gains or losses resulting from revaluations to
the Cumulative Translation Adjustment account defined in your ledger. Oracle
Payables determines the foreign currency gain or loss as the difference between the
invoiced amount and the payment amount due to changes in exchange rates.
foreign currency revaluation
A process that allows you to revalue assets and liabilities denominated in a foreign
currency using a period-end (usually a balance sheet date) exchange rate. Oracle
General Ledger automatically revalues your foreign assets and liabilities using the
period-end exchange rate you specify. Revaluation gains and losses result from
fluctuations in an exchange rate between a transaction date and a balance sheet date.
General Ledger automatically creates a journal entry in accordance with FASB 52 (U.S.)
to adjust your unrealized gain/loss account when you run revaluation.
foreign currency translation
A process that allows you to restate your ledger currency account balances into a
reporting currency. Oracle General Ledger multiplies the average, periodic, or historical
rate you define by your ledger currency account balances to perform foreign currency
translation. General Ledger translates foreign currency in accordance with FASB 52
(U.S.). General Ledger also remeasures foreign currencies for companies in highly
inflationary economies, in accordance with FASB 8 (U.S.).
format
In Oracle Payments, to place data in a data file by using a template that contains
prescribed formatting attributes, such as location, font, and font size. Financial
institutions, payment systems, and/or countries have specific electronic formatting
requirements for payment instructions and settlement batches. For example, Oracle
Payments uses Oracle XML Publisher to format electronic payment instructions
according to formatting requirements of specific financial institutions.
Glossary-38
formula entry
A recurring journal entry that uses formulas to calculate journal entry lines. Instead of
specifying amounts, as you would for a standard entry, you use formulas, and Oracle
General Ledger calculates the amounts for you. For example, you might use recurring
journal entries to do complex allocations or accruals that are computed using statistics
or multiple accounts.
full consolidation
(Financial Consolidation Hub) A consolidation method where 100% of the subsidiary's
balances are brought into the consolidated statements.
fund
A fiscal and accounting entity with a self-balancing set of accounts in which cash and
other financial resources, all related liabilities and residual equities or balances and
changes to these balances are recorded. A fund is segregated to carry on specific
activities or attain certain objectives in accordance with special regulations, restrictions,
or limitations. When you implement Oracle Public Sector Financials, Fund is typically
the balancing segment of your Accounting Flexfield.
fund balance
Fund balance is the equity portion of a fund balance sheet. Fund balance may contain
one or more of the following subdivisions: reserved - A portion of the fund balance not
available for expenditure or legally segregated for a specific future use. For example,
Reserve for Encumbrances and Reserve for Inventory are reserved portions of fund
balance. Unreserved, designated - A portion of the fund balance established to indicate
tentative plans for the future use of current resources. Unreserved, undesignated Fund balance available for use without predefined restrictions.
funds capture
In Oracle Payments, 1. Receipt of funds. 2. An automated process through electronic
payment channels, such as direct debits of bank accounts, credit cards, and remittance
of bills receivable, where payment is retrieved from the payer who owes a debt to the
payee.
funds capture process profile
In Oracle Payments, a key setup entity that holds rules for funds capture processing.
The assignment of a funds capture process profile to a document is determined by the
routing rules on the Payee. When a user creates a funds capture process profile, he
specifies rules such as the following: 1) how authorization messages are formatted and
transmitted, 2) how settlements are aggregated into a settlement batch, 3) how the
settlement batch is formatted, and 4) how acknowledgements received from the
payment system is processed.
Glossary-39
funds capture process request
In Oracle Payments, a request to capture funds that is made by a source product for
Oracle Payments' settlement service. The request contains identifying information,
optional settlement instructions, and all the settlements. Funds capture process requests
originate from Oracle Receivables and contain receipts for electronic funds capture. The
funds capture process request includes only settlements. Any necessary credit card
authorizations and bank account verification must have been performed before the
submission of the funds capture process request.
funds disbursement
In Oracle Payables, a payment sent from the first party payer to the third party payee. A
payment can take an electronic form; such as EFT or wire, or a printed form such as a
check.
fund group
A general category of funds for which you report fund activity as a whole. Plant funds,
restricted funds, and general operating funds are examples of fund groups. Each fund
group can have one or more funds associated with it. In Oracle Public Sector Financials,
you can summarize funds into fund groups using rollup groups.
fund segment
The segment of your Accounting Flexfield that you use to record fund, appropriation,
or other information relating to a fiscal entity. In Oracle Public Sector Financials, fund
segment is a generic term for the balancing segment you specify when you implement
Oracle Public Sector Financials.
fund type
A classification of funds for specifying accounting attributes. GAAP and other
accounting authorities specify the fund types in general use and the appropriate
accounting method, use of encumbrance, use of budgetary or proprietary accounts, and
other attributes. For example, governmental units typically use the following fund
types: General, Special Revenue, Capital Projects, Debt Service, Internal Service,
Enterprise, and Trust & Agency.
funding budget
A budget against which accounting transactions are checked for available funds when
budgetary control is enabled for your ledger.
funds available
In Oracle General Ledger, the difference between the amount you are authorized to
spend and the amount of your expenditures plus commitments. You can track funds
availability at different authority levels using the Online Funds Available inquiry
window, or you can create custom reports with the General Ledger Financial Statement
Glossary-40
Generator.
funds checking
The process of certifying funds available.
In Oracle Payables, you can check funds when you enter a requisition, purchase order,
or invoice.
In Oracle General Ledger, you can check funds when you enter actual, budget, or
encumbrance journals.
When you check funds, Oracle Financials compares the amount of your transaction
against your funds available and notifies you online whether funds are available for
your transaction. Oracle Financials does not reserve funds for your transaction when
you check funds.
funds reservation
In Oracle General Ledger, the process of reserving funds available. You can reserve
funds when you enter actual, budget, or encumbrance journals. When you reserve
funds, Oracle Financials compares the amount of your transaction against your funds
available and notifies you online whether funds are available for your transaction.
In Oracle Payables, the creation of requisition, purchase order, or invoice encumbrance
journal entries. Payables reserves funds for your invoice when you validate the invoice.
Invoice Validation creates encumbrance journal entries for an unmatched invoice or for
price and quantity variances between an invoice and the purchase order to which you
match the invoice. Payables immediately updates your funds available balances and
creates an encumbrance journal entry that you can post in your general ledger.
funds transfer
In Oracle Payments, any kind of automatic process to perform a transfer of funds from
or to a payer's bank account. See Bank Account Transfer, Direct Debit, or ACH.
GL Date
The date, referenced from Oracle General Ledger, used to determine the correct
accounting period for your transactions.
In Oracle Payables and Receivables, you assign a GL Date to your invoices and
payments when they are created.
global configuration owner
(Oracle E-Business Tax) A special configuration owner that owns tax configuration data
that is visible to all legal entities and operating units within an enterprise. The global
configuration owner provides central management of enterprise tax configuration data;
a legal entity or operating unit makes use of the data by subscribing to the global
configuration owner for a tax regime.
Glossary-41
See also: configuration owner, page Glossary-20
governmental funds
A type of fund whose objective is to provide services to the public. Governmental funds
are concerned with the availability of resources to provide services. Examples of
governmental funds are General, Special Revenue, Capital Projects, and Debt Service.
grace period
In Advanced Collections, a defined period of time before a promise to pay is considered
broken.
See also: Receipt Acceptance Period, page Glossary-74
grant
Assistance awards in which a government agency provides funding to another
government agency or other recipient, and in which the granting agency does not have
substantial involvement with the receiving agency or recipient during the performance
of the grant activity. For example, a state government might give grants to regional and
local governments for various purposes. The regional and local governments administer
the grant for the state government.
group asset
A collation of member assets. The cost of a group asset is the sum of the cost of all its
member assets.
grouping rule
A rule set you define that AutoInvoice uses to group revenue and credit transactions
into invoices, debit, and credit memos.
See also: line ordering rules, page Glossary-52
guarantee
A contractual obligation to purchase a specified amount of goods or services over a
predefined period of time.
hierarchical relationship
A relationship in which a party is ranked above the other. The rank is determined by
the role that they are taking in a relationship.
historical balances
Historical balances are composed of journal entry line amounts expressed in the units of
money that were current when the transactions took place. Historical balances are the
opposite of inflation-adjusted balances.
Glossary-42
historical exchange rate
A weighted-average rate for transactions that occur at different times. Oracle General
Ledger uses historical rates to translate owner's equity accounts in accordance with
FASB 52 (U.S.). For companies in highly inflationary economies, General Ledger uses
historical rates to remeasure specific historical account balances, according to FASB 8.
historical rates
User-defined rates or amounts for non-monetary assets, non-monetary liabilities,
owner's equity accounts, or revenues or expenses associated with non-monetary assets
or liabilities.
hold
In Oracle Payables, holds are systematically placed on invoices if the invoices require
further review. You can manually place a hold on an invoice or an invoice scheduled
payment line. All holds in Payables prevent payment; some holds also prevent
accounting.
In Oracle Receivables and Advanced Collections, a feature that prevents an order or
order line from progressing through the order cycle. If you place a customer on credit
hold in Receivables, you cannot create new orders for this customer in Oracle Order
Management. However, you can still create transactions for this customer in
Receivables.
identifying jurisdiction
The first jurisdiction an entity must register with to be allowed to do business in a
country. If a legal entity needs to register with more than one jurisdiction to commence
business, one must be chosen as the identifying jurisdiction.
income tax region
The region or state you assign to paid invoice distribution lines for a 1099 supplier. If
you participate in the Combined Filing Program, Payables produces K records for all
income tax regions participating in the Combined Filing Program that have qualifying
payments.
incomplete invoice
An invoice whose status has not been changed to Complete or that has failed validation.
To complete an invoice, several conditions must be met. For example, the invoice must
have at least one line and the GL date must be in an Open or Future period.
index values
An index value represents the price level for the period that the value applies to in
relation to a fixed base level. Index values are used to calculate the correction factor that
represents the inflation rate in the inflation adjustment process.
Glossary-43
See also: estimated index value, page Glossary-33
inflation-adjusted balances
Inflation-adjusted balances are composed of the original journal entry line amounts and
the inflation adjustment journal entry line amounts. If you use the historical/adjusted
option, you maintain inflation-adjusted balances in a separate inflation-adjusted ledger
in Oracle General Ledger. If you use the adjusted-only option, you maintain
inflation-adjusted balances in your primary ledger.
inflation adjustment date
The inflation adjustment date (Fecha Valor) is the date that each journal entry must be
adjusted from, which can be different than the journal entry's effective date. Every
journal entry must be adjusted for the period from the inflation adjustment date until
the present time. The default value for the inflation adjustment date is the journal
entry's effective date.
inflation start date
The inflation start date for an asset specifies when inflation begins to impact an asset.
The asset is adjusted for inflation from this date onward. The inflation start date is
generally the same date as the date placed in service. You can, however, define an
inflation start date that is different than the date placed in service. For example, if you
enter an asset that is already in service and that has already been adjusted for inflation,
you can set the inflation start date to an appropriate date to begin calculating new
inflation adjustments in Oracle Assets.
input tax
A tax incurred by a party on the importation, acquisition, purchase, or movement of a
product.
installment
One of many successive payments of a debt. You specify a payment schedule when
defining your payment terms.
installment number
A number that identifies the installment for a specific transaction.
intangible asset
A long term asset with no physical substance, such as a patent, copyright, trademark,
leasehold, and formula. You can depreciate intangible assets using Oracle Assets.
intended use
A tax classification based on the purpose for which a product is used.
Glossary-44
intercompany account
A general ledger account that you define in an Accounting Flexfield to balance
intercompany transactions. You can define multiple intercompany accounts for use
with different types of accounts payable journal entries.
intercompany category
(Financial Consolidation Hub) The category that eliminates balances from transactions
that occur between entities in the consolidation hierarchy.
intercompany elimination entry
(Financial Consolidation Hub) The entries that eliminate balances between entities to
ensure that they are not included in consolidated results.
intercompany journal entry
A journal entry that records transactions between legal entities. General Ledger keeps
your accounting records in balance for each company by automatically creating
offsetting entries to an intercompany account you define.
intercompany rule
(Financial Consolidation Hub) A mechanism that identifies intercompany activity to be
matched and eliminated.
intercompany segment
A segment you define in your chart of accounts to track intercompany transactions by
company or trading partner.
intercompany transaction
A transaction that involves two or more legal entities within the enterprise.
interest invoice
An invoice that Oracle Payables creates to pay interest on a past-due invoice. Payables
automatically creates an expense distribution line for an interest invoice using an
account you specify.
interfund account
A general ledger account you define in an Accounting Flexfield to balance interfund
transactions. You can define multiple interfund accounts for use with different types of
journal entries. You can define multiple interfund accounts and link them with
balancing segment values so each fund can have multiple interfund accounts. For
example, fund A can have an interfund payable account for fund B and an interfund
receivable account for fund B. Fund A can have an interfund payable account for fund
C and an interfund receivable account for fund C.
Glossary-45
interfund entry
A transaction between two or more funds. For example, an activity funded out of the
General Fund that is to be reimbursed by the Plant Fund is an interfund transaction.
Oracle Public Sector Financials can automatically create basic interfund entries when
you post a journal entry that does not balance by balancing segment value or fund.
interfund journal entry
A journal entry that records transactions between affiliates. Oracle General Ledger
keeps your accounting records in balance for each fund by automatically creating
offsetting entries to an interfund account you define.
interfund transfer
All interfund transactions except for loans, advances, quasi-external transactions, and
reimbursements.
internal organization
See: organization, page Glossary-59
internal requisition
See: internal sales order, page Glossary-46, purchase requisition, page Glossary-73
internal sales order
A request within your company for goods or services. An internal sales order originates
from an employee or from another process as a requisition, such as inventory or
manufacturing, and becomes an internal sales order when the information is transferred
from Purchasing to Order Management. Also known as internal requisition or
purchase requisition.
intracompany category
(Financial Consolidation Hub) The category that eliminates balances from transactions
that occur between different organizations within an entity. The Intracompany category
is always sequenced before Translation.
intracompany elimination entry
(Financial Consolidation Hub) The entries that offset balances occurring between
different business units or companies within the same operating entity.
intracompany transaction
A transaction between different business units belonging to one legal entity.
intraEU, taxed transaction
Transactions between non-registered traders in different EU (European Union)
countries. VAT must be charged to customers within the EU if you do not know their
Glossary-46
VAT registration number. The destination country and inventory item controls which
VAT rate to use.
intraEU, zero rated transactions
Transactions between registered traders in different EU (European Union) countries. An
Intra-EU transaction is zero rated if and only if you know the customer's VAT
registration number; otherwise, VAT must be charged on the invoice.
intransit inventory
Items being shipped from one inventory organization to another. While items are
intransit you can view and update arrival date, freight charges, and so on.
investment tax credit (ITC)
A tax recovery of an input tax that is typically permitted when the purchase is used as
an asset.
invoice
In Oracle Payables and Oracle Assets, a document you receive from a supplier that lists
amounts owed to the supplier for purchased goods or services. In Payables, you create
an invoice online using the information your supplier provides on the document, or
you import an invoice from a supplier. Payments, inquiries, adjustments and any other
transactions relating to a supplier's invoice are based upon the invoice information you
enter.
In Oracle Receivables and Oracle Cash Management, a document that you create in
Receivables that lists amounts owed for the purchases of goods or services. This
document also lists any tax, freight charges, and payment terms.
invoice batch
In Oracle Payables, a feature that allows you to enter multiple invoices together in a
group. You enter the batch count, or number of invoices in the batch, and the total batch
amount, which is the sum of the invoice amounts in the batch, for each batch of invoices
you create. You can also optionally enter batch defaults for each invoice in a batch.
When you use the Invoice Batch Controls profile option, Payables automatically creates
invoice batches for Payables expense reports, prepayments, and recurring invoices, as
well as all standard invoices. In addition, you can specify a batch name when you
import invoices.
In Oracle Receivables, a group of invoices you enter together to ensure accurate invoice
entry. Invoices within the same batch share the same batch source and batch name.
Receivables displays any differences between the control and actual counts and
amounts. An invoice batch can contain invoices in different currencies.
invoice date
In Oracle Assets, the date that appears on a customer invoice. This date is used to
Glossary-47
calculate the invoice due date, according to the customer's payment terms.
In Oracle Receivables, the date an invoice is created. This is also the date that
Receivables prints on each invoice. Receivables also uses this date to determine the
payment due date based on the payment terms you specify on the invoice.
In Oracle Payables, the date you assign to an invoice you enter in Payables. Payables
uses this date to calculate the invoice due date, according to the payment terms for the
invoice. The invoice date can be the date the invoice was entered or it can be a different
date you specify.
invoice distribution line
A line representing an expenditure item on an invoice. A single expenditure item may
have multiple distribution lines for cost and revenue. An invoice distribution line holds
an amount, account code, and accounting date.
invoice line types
A feature that classifies every invoice line or distribution. For example, item tax, freight,
or miscellaneous.
invoice number
A number or combination of numbers and characters that uniquely identifies an invoice
within your system. Usually generated automatically by your receivables system to
avoid assigning duplicate numbers.
invoice price variance
The difference between the item price for an invoice and its matched purchase order.
For your inventory items, Payables tracks any invoice price variances.
invoice quantity variance
The difference between the quantity-billed for an invoice and the quantity-ordered (or
received/accepted, depending on the level of matching you use) for its matched
purchase order. Payables distributes invoice quantity variances to the Accounting
Flexfield for your invoice distribution lines.
invoice related claim
A claim that is due to a discrepancy between the billed amount and the paid amount for
a specific transaction
invoice request
In Oracle Payables, an invoice submitted without a purchase order by a supplier via
Oracle iSupplier Portal, which is pending review and approval by the appropriate
persons within the deploying company.
Glossary-48
invoice split amount
See: split amount, page Glossary-86
invoice write-off
A transaction that reduces the amount outstanding on an invoice by a given amount
and credits a bad debt account. Submitted in Oracle Advanced Collections as an
adjustment for Receivables invoices and as a write-off for Leasing invoices.
invoicing
The function of preparing a client invoice. Invoice generation refers to the function of
creating the invoice. Invoicing is broader in the terms of creating, adjusting, and
approving an invoice.
invoicing rules
Rules that Receivables uses to determine when you will bill your customer and the
accounting period in which the receivable amount is recorded. You can bill In Advance
or In Arrears.
See also: bill in advance, page Glossary-12, bill in arrears, page Glossary-12
ITC
See: investment tax credit, page Glossary-47
ITC amount
The investment tax credit allowed on an asset. The ITC amount is based on a percentage
of the asset cost. When you change an asset's cost in the accounting period you enter it,
Oracle Assets automatically recalculates the ITC amount.
ITC basis
The maximum cost that Oracle Assets can use to calculate an investment tax credit
amount for your asset. If you enabled ITC ceilings for the asset category you assigned to
an asset, the ITC basis is the lesser of the asset's original cost or the ITC ceiling.
ITC ceiling
A limit on the maximum cost that Oracle Assets can use to calculate investment tax
credit for an asset. You can use different ceilings depending on the asset's date placed in
service.
ITC rate
A rate used to calculate the investment tax credit amount. This percentage varies
according to the expected life of the asset and the tax year.
ITC recapture
If you retire an asset before the end of its useful life, Oracle Assets automatically
Glossary-49
calculates what fraction of the original investment tax credit must be repaid to the
government. This amount is called the investment tax credit recapture.
item
Anything you buy, sell, or handle in your business. An item may be a tangible item in
your warehouse, such as a wrench or tractor, or an intangible item, such as a service.
journal entry batch
A method used to group journal entries according to your ledger and accounting
period. When you initiate the transfer of invoice or payment accounting entries to your
general ledger for posting, Payables transfers the necessary information to create
journal entry batches for the information you transfer. Journal Import in General Ledger
uses the information to create a journal entry batch for each ledger and accounting
period. You can name your journal entry batches the way you want for easy
identification in your general ledger. General Ledger attaches the journal entry
category, date, and time of transfer to your batch name so that each name is unique. If
you choose not to enter your own batch name when you transfer posting information,
General Ledger uses the journal entry category, date, and time of transfer.
journal entry category
A category to indicate the purpose or nature of a journal entry, such as Adjustment or
Addition. Oracle General Ledger associates each of your journal entry headers with a
journal category. You can use one of General Ledger's pre-defined journal categories or
define your own.
For Oracle Payables, there are three journal entry categories in Oracle Projects if you use
the accrual basis accounting method: Invoices, Payments, and All (both Invoices and
Payments).
journal entry description
(Oracle Subledger Accounting) The description that appears as part of a subledger
journal entry header or line. Journal entry descriptions enable users to determine the
purpose and scope of a subledger journal entry.
journal entry header
A method used to group journal entries by currency and journal entry category within a
journal entry batch. When you initiate the transfer of invoices or payments to your
general ledger for posting, Oracle Payables transfers the necessary information to create
journal entry headers for the information you transfer. Journal Import in General
Ledger uses the information to create a journal entry header for each currency and
journal entry category in a journal entry batch. A journal entry batch can have multiple
journal entry headers.
Glossary-50
journal entry lines
Each journal entry header contains one or more journal entry lines. The lines are the
actual journal entries that your general ledger posts to update account balances. The
number and type of lines in a journal entry header depend on the volume of
transactions, frequency of transfer from Oracle Payables, and your method of
summarizing journal entries from Oracle Payables.
journal entry source
Identifies the origin of journal entries from Oracle and non-Oracle feeder systems.
General Ledger supplies predefined journal sources or you can create your own.
journal entry status
(Oracle Subledger Accounting) Status of journal entry that includes Draft, Final,
Incomplete, Invalid, and Invalid Related Entry.
journal line types
(Oracle Subledger Accounting) A component of the AMB that includes information
necessary to convert transaction data into subledger journal entry lines.
journal lines definition
(Oracle Subledger Accounting) A group of account derivation rules, journal line types,
and journal entry descriptions that can be shared across application accounting
definitions.
jurisdiction
See: tax jurisdiction, page Glossary-93
laser-printed payment documents
In Oracle Payments, payment documents that are numbered as they are printed.
Latin Tax Engine (LTE)
A collection of programs, user-defined system parameters, setup tables, and rules used
by Oracle Receivables for Latin America to calculate tax.
leasehold improvement
An improvement to leased property or leasehold. Leasehold improvements are
normally amortized over the service life or the life of the lease, whichever is shorter.
ledger
A set of accounting information for a legal or business entity. Each ledger is associated
with a chart of accounts, calendar, currency, and subledger accounting method for
which accounting information is recorded. There are two types of ledgers: primary
Glossary-51
ledgers and secondary ledgers. Each ledger is fully balanced and can be closed
independently of other ledgers.
ledger currency
The primary currency of a ledger. A ledger can have multiple currencies: one ledger
currency and one or more reporting currencies.
legal authority
A governing legal body that operates within a jurisdiction. The legal authority is
responsible for enforcing legislation, collecting fees and taxes, and making financial
appropriations within a given physical area for a type of law. For example, the Internal
Revenue Service is the legal authority for income tax law in the US.
legal document
A paper document sent to or sent by the customer or supplier. Many countries require
that legal documents are stored for up to ten years.
legal entity
A clearly identified entity, which is given rights and responsibilities under commercial
law, through registration with a country's appropriate legal authority. These rights and
responsibilities are enforceable through the judicial system. A legal entity generally has
the right to own property, trade, the responsibility to repay debt, and comply with labor
law. Legal entities are responsible to account for themselves to company regulators,
taxation authorities, and owners according to rules specified in the relevant legislation.
legal journals
Journals that print all journal entries according to your legal requirements. Entries
might include period balances for customers or suppliers. Legal journals vary from
country to country.
legal registration
The registration of a party with an authority to ensure that legal and/or commercial
rights and responsibilities are upheld.
See also: tax registration, page Glossary-94
lien
See: commitment, page Glossary-19, obligation, page Glossary-58
line item intercompany maps
(Financial Consolidation Hub) Specifies the relationship between a line item value and
an intercompany value in the consolidation chart of accounts. Each line item value can
be mapped to an intercompany value or no value at all.
Glossary-52
line ordering rules
You define line ordering rules for invoice lines that you import into Receivables using
AutoInvoice. AutoInvoice uses these rules to order invoice lines when it groups the
transactions it creates into invoices, debit memos, and credit memos.
location
In Oracle Assets, a key flexfield combination specifying a particular place. You assign
each asset to a location. Oracle Assets uses location information to produce
Responsibility and Property Tax Reports.
In Oracle Receivables, a shorthand name for an address. Location appears in address
list of values to let you select the correct address based on an intuitive name. For
example, you may want to give the location name of Receiving Dock to the Ship To
business purpose of 100 Main Street.
In TCA, a point in geographical space described by an address.
Location Flexfield
Oracle Assets lets you define what information you want to keep about the locations
you use. You use your Location Flexfield to define how you want to keep the
information.
LTE
See: Latin Tax Engine, page Glossary-51
manual invoice
An invoice that you enter using either the Transactions or Transactions Summary
window.
manual journal entry
A journal entry you create in the Enter Journals window in Oracle General Ledger.
Manual journal entries can include regular, statistical, intercompany and foreign
currency entries.
manual reconciliation
The process where you manually reconcile bank statement details with the appropriate
batch or detail transaction. Oracle Cash Management generates all necessary accounting
entries.
See also: , reconciliation, page Glossary-75, reconciliation, page Glossary-75
Many-to-Many attribute
In Oracle Financial Analyzer, a relationship between one or more values of one base
dimension with one or more values of a second base dimension. For example, if you
have a Many-to-Many attribute definition where the first base dimension is
Glossary-53
Organization and the second base dimension is Line Item, then a single organization
can be related to several line items, and a single line item can be related to several
organizations.
mapping sets
(Oracle Subledger Accounting) Component of the AMB that enables users to assign a
specific value to a segment or Accounting Flexfield based upon source values. Mapping
sets are used for defining account derivation rules. For example, users can create a
mapping set which would indicate that if an invoice is for a supplier type of Services,
then use an Accounting Flexfield segment that maps to an account used for services.
Mapping sets are similar in concept to Project Accounting lookup sets.
master budget
A budget that controls the authority of other budgets.
match rule
A set of rules that determines which records are matches for an input record. A match
rule consists of an acquisition portion to determine potential matches, a scoring portion
to score the potential matches, and thresholds that the scores are compared against to
determine actual matches.
matching
In Oracle Cash Management, the process where batches or detailed transactions are
associated with a statement line based on the transaction number, amount, currency
and other variables, taking Cash Management system parameters into consideration. In
Cash Management, matching can be done manually or automatically.
(Financial Consolidation Hub) The process of grouping intercompany balances together
to consider whether the balances offset completely and therefore require a suspense
entry for balancing.
In Oracle Payables and Oracle Assets, the process of comparing purchase order, invoice,
and receiving information to verify that ordering, billing, and receiving information is
consistent within accepted tolerance levels. Payables uses matching to control payments
to suppliers. You can use the matching feature in Payables if you have Purchasing or
another purchasing system. Payables supports two-, three-, and four-way matching.
See also: reconciliation, page Glossary-75
matching tolerances
The acceptable degrees of variance you define for matched invoices and purchase
orders. If any of the variances between a matched invoice and purchase order exceed
the tolerances you specify, validation places the invoice on hold.
maturity date
In Oracle Payables and Oracle Cash Management, the date your bank disburses funds
Glossary-54
to a supplier for a future dated payment. Payables displays the maturity date on the
future dated payment document to inform your supplier and bank when the bank
should transfer funds to the supplier's bank. You can update the payment status from
Issued to Negotiable on or after the maturity date.
In Oracle Receivables, a date that determines when funds for an automatic receipt can
be transferred from your customer's bank account to your bank account.
maximum depreciation expense
The maximum possible depreciation expense for an asset in a mass depreciation
adjustment. The maximum depreciation expense for an asset is the greatest of the
depreciation actually taken in the tax book, the amount needed to bring the
accumulated depreciation up to the accumulated depreciation in the corporate book, or
the amount needed to bring the accumulated depreciation up to the accumulated
depreciation in the control book.
merchant ID
A unique identification number used for credit card processing. The merchant ID
identifies your business to iPayment, to your customer's electronic payment system and
credit card vendor, and to your remittance bank.
meta data
Data you enter in Oracle General Ledger to represent structures in Oracle Financial
Analyzer. Meta data consists of the dimensions, segment range sets, hierarchies,
financial data items, and financial data sets you define in Oracle General Ledger. When
you load financial data from Oracle General Ledger, Oracle Financial Analyzer creates
dimensions, dimension values, hierarchies, and variables based on the meta data.
minimum accountable unit
The smallest meaningful denomination of a currency (this might not correspond to the
standard precision). While a currency may require a precision of three places to the
right of the decimal point, for example, .001 (one thousandth), the lowest denomination
of the currency may represent 0.025 (twenty-five thousandths). Under this example, the
Minimum Accountable Unit would be .025. Calculations in this currency would be
rounded to .025 (the Minimum Accountable Unit), not .001 (the precision).
minimum depreciation expense
The minimum possible depreciation expense for an asset in a mass depreciation
adjustment. The minimum depreciation expense for an asset in a tax book is the amount
needed to bring the accumulated depreciation up to the accumulated depreciation in
the corporate book or control book, or zero, whichever is greater.
minimum interest amount
The amount below which Payables does not pay interest on an overdue invoice.
Glossary-55
Payables automatically compares the interest amount it calculates on past due invoices
with the minimum interest amount you have defined, and does not create an interest
invoice unless the amount of interest exceeds the minimum interest amount.
minority interest category
(Financial Consolidation Hub) The category that holds the consolidation accounting
entries needed to recognize non-controlling interest on consolidated financial
statements.
miscellaneous receipts
A feature that lets you record payments that you do not apply to debit items, such as
refunds and interest income.
model
A set of interrelated equations for calculating data in Oracle Financial Analyzer.
model invoice
An invoice used as a template that you copy to create new invoices.
monetary account
Monetary accounts, such as the Cash, Banks, Receivables, or Payables accounts, are
accounts that remain the same through different periods. Monetary accounts are not
adjusted for inflation, but these accounts do generate inflation gain or loss.
See also: non-monetary account, page Glossary-57
multiperiod accounting
(Oracle Subledger Accounting) Recognition of revenue or a prepaid expense or revenue
across multiple GL periods. Deferred revenue and expense recognition are examples of
multiperiod accounting.
NACHA
National Automated Clearing House Association. Payment format that allows users to
make electronic payments within the Automated Clearing House (ACH), the largest
standardized electronic payment system in the United States.
natural account segment
In Oracle General Ledger, the segment that determines whether an account is an asset,
liability, owners' equity, revenue, or expense account. When you define your chart of
accounts, you must define one segment as the natural account segment. Each value for
this segment is assigned one of the five account types.
Glossary-56
natural application
A transaction type parameter that, if enabled, does not let you apply a transaction to a
debit item if the application will reverse the sign of the debit item (for example, from a
positive to a negative balance). Natural application does not apply to chargebacks and
adjustments.
See also: Overapplication, page Glossary-60
nesting
The act of grouping calculations to express the sequence of routines in a formula.
Traditional mathematical nesting uses parenthesis and brackets. Oracle General Ledger
EasyCalc uses a straightforward and logical nesting method that eliminates the need for
parenthetical expressions.
netting
In Oracle Payables, the process where trading partners agree to offset their payables
and receivables.
net allocation
Allocation in which you post the net of all allocations to an allocated-out account.
netting agreement
In Oracle Payables, a group of trading partners with their associated business rules that
determine the types of transactions to be selected for netting. The Netting Agreement
controls how a group of trading partners net Payables and Receivables transactions.
nexus
The amount and degree of business activity that must be present before a tax authority
can impose a registration, tax filing, and/or tax collection responsibility on an entity.
The amount of activity or connection that is necessary to create nexus tends to vary
from jurisdiction to jurisdiction, and consequently, is defined by jurisdiction.
non-invoice related claim
A claim that is due to a discrepancy between the billed amount and the paid amount,
and cannot be identified with a particular transaction.
non-monetary account
Non-monetary accounts, such as fixed assets and most expense and revenue accounts,
are accounts that are revalued due to inflation or deflation effects. Non-monetary
accounts must be adjusted at each period-end to reflect balance changes.
See also: monetary account, page Glossary-56
Glossary-57
non-recoverable tax amount
The part of the tax amount on a transaction that cannot be recovered.
non-revenue credit
Revenue credit you assign to your agents that is not associated with your invoice lines.
This is revenue credit given in excess of your revenue credit.
non-revenue sales credit
Sales credit you assign to your salespeople that is not associated with your invoice lines.
This is sales credit given in excess of your revenue sales credit.
See also: revenue sales credit, page Glossary-81
none consolidation
(Financial Consolidation Hub) A consolidation method where an entity's balances can
be used as input into a consolidation rule, but the entity's balances are not brought into
the consolidated statements.
object or object classification
A means of identifying transactions by the nature of the goods or services purchased,
such as personnel compensation, supplies and material, or equipment. Typically, Object
is a segment of your Accounting Flexfield when you implement Oracle Public Sector
Financials. Many agencies have standard object classification codes. Objects are also
known as "Detail" in some governments.
obligation
An encumbrance you record when you turn a requisition into a purchase order.
A transaction representing a legally binding purchase.
See also: commitment, page Glossary-19, purchase order encumbrance, page Glossary72, encumbrance, page Glossary-31
offset account
An offset account is used to balance journal entries in your General Ledger. For
example, offsetting accounts for a guarantee are the Unbilled Receivables and the
Unbilled Revenue accounts.
offset tax
A tax used to calculate and record tax liability on Payables transactions for reverse
charges, self-assessments, and, in the United States, Consumer's Use tax.
offset tax rate
A tax rate of an offset tax. An offset tax rate is always negative.
Glossary-58
on-account payment
The status of a payment of which you apply all or part of its amount to a customer
without reference to a specific debit item. Examples of these are prepayments and
deposits.
one time billing hold
A type of hold that places expenditure items and events on billing hold for a particular
invoice; when you release that invoice, the items are billed on the next invoice.
One-to-Many attribute
A relationship in Oracle Financial Analyzer where one or more values of a base
dimension are related to a single value of an aggregate dimension. For example, if you
have a One-to-Many attribute definition where the base dimension is Organization and
the aggregate dimension is Level, each organization can be related to only a single level.
open items
Any item, such as an invoice, debit memo, credit memo, chargeback, on-account credit,
on-account payment, or unapplied payment, whose balance due is not yet zero.
operating unit
An autonomous organization having business activities corresponding to one of these
products: Receivables, Order Management, Payables, Purchasing and Projects.
Operating units are related to a primary ledger.
operating entity
(Financial Consolidation Hub) An entity that contains operating balances, which are
loaded from General Ledger or other financial systems via data submission. An
operating entity may own other consolidation or operating entities, but does not
consolidate that ownership structure.
organization
A business unit such as a company, division, or department. Organization can refer to a
complete company, or to divisions within a company. Typically, you define an
organization or a similar term as part of your account when you implement Oracle
Financials.
A government or public sector entity or sub-entity. Organization can refer to an entire
agency or to divisions within an agency. For example, an agency might be composed of
several bureaus, each of which has several departments. Each department is an
organization, as is each bureau and the agency itself. A state university system is an
organization, as is each campus within the university system, and each department
within each campus. Typically, you define organization or a similar term as part of your
Accounting Flexfield when you implement Oracle Public Sector Financials.
Glossary-59
organization classification
Organization classifications are set of system-defined attributes that categorize an
organization. Examples of classifications include operating unit, project expenditure
organization, inventory organization and human resources organization.
organization hierarchy
An organization hierarchy displays hierarchical relationships between organizations in
enterprise. Use organization hierarchy to create security profiles.
organization structure
See: organization hierarchy, page Glossary-60
output entity
(Financial Consolidation Hub) A target entity where the results of a consolidation rule
or a manual adjustment is written.
output tax
A tax charged by a party on the sale or movement of a product.
out of balance batch
The status of a batch when the control count or amount does not equal the actual count
or amount.
overapplication
A transaction type parameter that, if enabled, lets you apply a transaction to a debit
item even if it will reverse the sign of the debit item (for example, from a positive to a
negative balance). Overapplication applies to debit items such as debit memos,
deposits, guarantees, credit memos, and on-account credits.
See also: Natural Application Only, page Glossary-56
overflow record
A type of bank file record that stores additional payment information that could not fit
on the payment record. Each overflow record must have a payment record as a parent.
Typically, an overflow record will store additional invoice numbers and the amount of
the payment to apply to each invoice.
parallel allocation
A set of allocation rules that carries out the rules in an autoallocation set without regard
to the outcome of the other rules in the set.
See also: autoallocation set, page Glossary-9, step-down allocation, page Glossary-88
Glossary-60
parent asset
A parent asset has one or more subcomponent assets. First you add the parent asset.
Then, you add the subcomponent asset and assign it to the parent asset in the Additions
form. You can change parent/subcomponent relationships at any time.
parent regime
A tax regime that is used to group other tax regimes.
parent segment value
An account segment value that references a number of other segment values, called
child segment values. Oracle General Ledger uses parent segment values to create
summary accounts, to report on summary balances, and in MassAllocations and
MassBudgeting. You can create parent segment values for independent segments, but
not for dependent segments.
Oracle Financial Analyzer uses parent and child segment values to create hierarchies.
partial matching
A condition where the invoice quantity is less than the quantity originally ordered, in
which case you are matching only part of a purchase order shipment line.
See also: matching, page Glossary-54, complete matching, page Glossary-19
partial retirement
A transaction that retires part of an asset. You can retire any number of units of a
multiple unit asset or you can retire part of an asset cost. If you retire by units, Oracle
Assets automatically calculates the cost retired.
party
A person, organization, relationship, or collection of parties that can enter into business
relationships with other parties.
party exemption
A full or partial reduction in the tax that is normally charged to a party.
party fiscal classification
A tax classification used by a tax authority to categorize a party.
party fiscal classification type
A classification code used to categorize a party fiscal classification.
party relationship
A binary relationship between two parties, for example a partnership.
Glossary-61
party site
A location used by a party.
party site exemption
A full or partial reduction in the tax that is normally charged to a party site.
party site fiscal classification
A tax classification used by a tax authority to categorize a party site.
party tax profile
The profile used to view and maintain tax information for relevant parties, including
tax registration and party fiscal classifications.
party type
The type of party; Person, Organization, Group, or Relationship.
pay group
A feature you use to select invoices for payment in a payment batch. You can define a
pay group and assign it to one or more suppliers. You can override the supplier's pay
group on individual invoices. For example, you can create an Employee Pay Group to
pay your employee expenses separately from other invoices.
pay item
In Oracle Payments, scheduled progress for Service Procurement contracts.
pay site
A supplier site that is able to receive payments.
A supplier must have at least one supplier site defined as a pay site before Payables
allows payments to be issued to that supplier. You cannot enter an invoice for a
supplier site that is not defined as a pay site.
See also: purchasing site, page Glossary-73, RFQ Only Site, page Glossary-81
payer entity
In Oracle Payments, the third party payer, as registered in Payments.
payment
A document that includes the amount disbursed to any supplier/pay site combination
as the result of a payment batch. A payment can pay one or more invoices.
Any form of remittance, including checks, cash, money orders, credit cards, and
Electronic Funds Transfer.
Glossary-62
payment attributes
In Oracle Payments, payment details, such as the payment method, which are used by
Payments, payment systems, financial institutions, or central banks to process,
categorize, or identify payments. These attributes may exist on documents payable, as
well as on payments.
PayGroup
See: Pay Group, page Glossary-62
payment application
This report column represents the payments that were applied to the item within the
GL Date range that you specified. If the transaction number corresponds to the item the
payment was applied to, then the amount should be positive. If the transaction number
is the payment itself, then the amount should be negative. The amount in this column
should match the sum of the amounts in the Applied Amount, Earned Discount, and
Unearned Discount columns of the Applied Receipts Register Report.
payment batch
In Oracle Payables, a group of invoices selected for automatic payment processing.
Payables creates a payment batch when you initiate AutoSelect. Payables builds and
formats payments for the invoices in the batch according to the payment method and
format you specify for a chosen bank account.
payment cards
In Oracle Payments, a payment instrument that comes in the form of a card. Examples
of payment cards include credit cards and debit cards. Payment cards are used in a
variety of business scenarios and these tend to vary by geographic region, as well as by
industry.
payment creation rules
In Oracle Payments, rules that specify how documents payable are grouped into
payments. Some rules are hard coded, while others are user-defined.
payment distribution line
A line representing the liability transaction on a payment. Each payment has at least
one liability distribution line, but may have additional lines to record discounts taken
and realized gains and losses (foreign currency payments only).
payment document
In Oracle Payables, a medium you use to instruct your bank to disburse funds from
your bank account to the bank account or site location of a supplier. With Oracle
Payables you can make payments using several types of payment documents. You can
send your supplier a check that you manually create or computer-generate. You can
Glossary-63
instruct your bank to transfer funds to the bank account of a supplier. For each payment
document, you can generate a separate remittance advice. Payables updates your
invoice scheduled payment the same way regardless of which payment document you
use to pay an invoice. Payables also allows you to instruct your bank to pay in a
currency different from your ledger currency, if you enable the multiple currency
system option and define a multi-currency payment format.
In Oracle Payments, a set of documents, such as check stock, on which checks and
promissory notes can be printed or written. Payment documents usually have security
features such as watermarks to prevent fraud.
payment factory model
In Oracle Payments, a payment model that allows operating units to maintain their own
accounts payable and other payment administrative functions. The role of the payment
factory is to handle communication and transactions with the company's banking
partners. Invoice selection can be done in Oracle Payables within a single operating
unit. Then a payment factory administrator using Payments can consolidate payments
from different operating units into a single payment file for transmission and
settlement, thereby reducing transaction costs.
payment format
In Oracle Payables, a definition that determines your payment creation and remittance
advice programs for a given payment document. When you define a payment format,
you do so for a particular payment method.
In Oracle Receivables, a feature that allows you to make invoice payments using a
variety of methods. You can then assign one or more payment formats to a bank
account. You can have multiple payment formats for each receipt method. Receivables
associates receipt class, remittance bank, and receipt account information with your
receipt entries.
payment file
In Oracle Payments, a file that contains instructions for a financial institution to make or
collect payments on behalf of the first party payer or first party payee.
payment instruction
In Oracle Payments, a collection of payments, along with aggregate payment
information, created during the funds disbursement flow. Depending on the setup, a
payment instruction may be converted into a file to be printed onto checks or into a
payment file that is transmitted to a payment system for further processing and
disbursement.
payment instrument
In Oracle Payments, the entity used for settling a payment. Examples of payment
instruments used by Payments are credit cards, company purchase cards, and bank
Glossary-64
accounts.
payment method
In Oracle Cash Management, you can assign a payment method to suppliers, supplier
sites, invoice payment schedule lines, and payment formats. You can then assign one or
more payment formats to a bank account. You can have multiple payment formats for
each payment method.
In Oracle Payables, a feature that allows you to make invoice payments using a variety
of methods. You can disburse funds using checks, electronic funds transfers, and wire
transfers. Oracle Payables updates your payment schedules the same way regardless of
which payment method you use. You can assign a payment method to suppliers,
supplier sites, invoice payment schedule lines, and payment formats. You can then
assign one or more payment formats to a bank account. You can have multiple payment
formats for each payment method.
payment method (funds capture)
In Oracle Payments, the medium by which the third party payer chooses to remit
payment to the first party payee. By default, Payments supports three payment
channels for automated funds capture processing: bank account transfers, credit cards,
and PINless debit cards. Payments also supports the recording of payer-initiated
channels such as check or wire transfer, but does not perform any processing for these
channels.
payment method (funds disbursement)
In Oracle Payments, a payment attribute on a document payable. The payment method
indicates the medium by which the first party payer will make a payment to a third
party payee. Examples of payment methods are checks printed in-house by the payer,
checks outsourced to the bank for printing, and wires.
payment priority
In Oracle Payables, a value, ranging from 1 (high) to 99 (low), assigned to an invoice
that determines how Payables selects invoices for payment in a payment process
request. You can assign default payment priorities to suppliers, supplier sites, and
invoice scheduled payments in Oracle Payables.
payment process profile
In Oracle Payments, a payment attribute assigned to documents payable (and therefore
to payments) to specify their handling by Payments. Payment process profiles include
several pieces of information, including specifications for formatting and transmission.
The selection of a payment profile is driven by the payment method assigned to a
document.
Glossary-65
payment process request
In Oracle Payments, a request made by a source product for Payments' payment
services. The payment process request contains one or more documents payable to be
paid, identifying information, and optional payment instructions.
payment program
In Oracle Payables, a program you use to build and format your payment. Oracle
Payables provides several payment programs. You can define as many additional
programs as you need. Oracle Payables recognizes three payment program types: Build,
Format, and Remittance Advice.
payment schedules
The due date and discount date for payment of an invoice. For example, the payment
term '2% 10, Net 30' lets a customer take a two percent discount if payment is received
within 10 days with the full invoice amount due within 30 days of the invoice date.
See also: scheduled payment, page Glossary-82, payment terms, page Glossary-66
payment system
In Oracle Payments, a communication system that provides financial settlement
services. Companies that deploy Payments choose payment systems to process their
funds captures and, sometimes, their funds disbursements. The payment system can be
the bank at which the deploying company has its bank accounts or it can be a third
party processor that connects companies and financial institutions. The latter is
commonly the case for credit card processing.
payment system certification
In Oracle Payments, a certification from a payment system indicating that Payments has
built and tested integrations for funds capture transactions. Certifications do not
preclude the deploying company from having to test their Payments installation with
the payment system issuing the certification.
payment terms
The due date and discount date for payment of a transaction. For example, the payment
term '2% 10, Net 30' lets a customer take a two percent discount if payment is received
within 10 days; after 10 days, the entire balance is due within 30 days of the invoice date
with no applicable discount.
See also: discount, page Glossary-29, scheduled payment, page Glossary-82
period-average exchange rate
See: average exchange rate, page Glossary-9
period average-to-date
The average of the end-of-day balances for a related range of days within a period.
Glossary-66
period-end exchange rate
The daily exchange rate on the last day of an accounting period. The system
automatically translates monetary asset and liability account balances using period-end
rates. When you run revaluation for a period, the system uses period-end rates to
revalue the ledger currency equivalent balance associated with foreign
currency-denominated account balances.
period type
Used when you define your accounting calendar. General Ledger has predefined period
types of Month, Quarter, and Year. You can also define your own period types.
place of supply
The tax jurisdiction where the supply of goods or services is deemed to have taken
place for a specific tax. The place of supply can differ for different taxes on the same
transaction.
planned purchase order
A type of purchase order you issue before you order delivery of goods and services for
specific dates and locations. You usually enter a planned purchase order to specify
items you want to order and when you want the items delivered. You later enter a
shipment release against the planned purchase order to order the items.
positive pay file
In Oracle Payments, a document that the deploying company sends to its payment
system to inform it of payments made by check.
Positive Pay Program
Third party or custom software that formats the output file of the Payables Positive Pay
Report into the format required by your bank, and transmits it electronically to your
bank. This prevents check fraud by informing the bank which checks are negotiable or
non-negotiable and for what amount.
posting date
The date a journal entry is posted to the general ledger.
pre-commitment
See: commitment, page Glossary-19
pre-encumbrance
See: commitment, page Glossary-19
pre-lien
See: commitment, page Glossary-19
Glossary-67
precedence numbers
Numbers used to determine how Receivables will compound taxes. The tax line with
the highest precedence number will calculate tax on all tax lines with a lower
precedence number.
prepayment
A payment you make to a supplier in anticipation of his provision of goods or services.
A prepayment may also be an advance you pay to an employee for anticipated
expenses.
In Payables a prepayment is a type of invoice that you can apply to an outstanding
invoice or employee expense report to reduce the amount of the invoice or expense
report. You must validate the prepayment and fully pay the prepayment before you can
apply the prepayment.
pre-printed payment documents
In Oracle Payments, documents that are pre-numbered.
price correction
An invoice you receive from a supplier that is an adjustment to the unit price of an
invoice you previously matched to a purchase order shipment. You can match the price
correction to specific purchase order distribution lines or you can have Payables prorate
the price correction across all previously matched purchase order distributions. If you
receive a price correction that represents a price reduction, you enter the price
correction as a Credit invoice. If you receive a price correction that represents a price
increase, you enter the price correction as a Standard invoice.
primary agent
The default agent that receives 100% of the revenue credits when you first enter an
invoice or commitment.
primary customer information
Address and contact information for your customer's headquarters or principal place of
business. Primary addresses and contacts can provide defaults during order entry.
primary ledger
A ledger that acts as the main record-keeping ledger. If used for maintaining
transactions for one or more legal entities, it uses the legal entities' main chart of
accounts, accounting calendar, currency, subledger accounting method, and ledger
processing options to record and report on all of their financial transactions. If used for
other business purposes where no legal entities are involved, then the primary ledger is
defined with the chart of accounts, accounting calendar, and currency that is suited for
the business need. One primary ledger is required for each accounting setup. A primary
Glossary-68
ledger can have secondary ledgers and reporting currencies associated with it.
primary role
Your customer contact's principle business function according to your company's
terminology. For example, people in your company may refer to accounting
responsibilities such as Controller or Receivables Supervisor.
primary salesperson
The salesperson that receives 100% of the sales credits when you first enter an invoice or
commitment.
print lead days
The number of days you subtract from the payment due date to determine the invoice
date for each installment. You can only specify Print Lead Days when you are defining
split payment terms.
prior period addition
An addition is a prior period addition if you enter it in an accounting period that is after
the period in which you placed the asset in service. Also known as retroactive addition.
prior period reinstatement
A reinstatement is a prior period reinstatement if you enter it in an accounting period
that is after the period in which the retirement took place. Also known as retroactive
reinstatement.
prior period retirement
A retirement is a prior period retirement if you enter it in an accounting period that is
after the period in which you entered the retirement. Also known as retroactive
retirement.
prior period transfer
A transfer is a prior period transfer if you enter it in an accounting period that is after
the period in which the transfer took place. Also known as retroactive transfer.
priority
(Oracle E-Business Tax) A number assigned to a tax rule, which specifies the order in
which the rule is evaluated when the tax engine attempts to retrieve the result of a
given process.
process category
(Oracle Subledger Accounting) Mechanism to restrict the events selected for processing
by the Subledger Accounting program. A single process category can be assigned to one
or more event classes. When users submit the request to run the Subledger Accounting
Glossary-69
program, they can opt to limit the selection to a specified process category. As a result,
only those event classes with the specified process category are selected for processing.
processing unit
(Oracle Subledger Accounting) Number of transactions processed by Subledger
Accounting in one commit cycle.
product exemption
A full or partial reduction in the tax that is normally charged on a product.
product fiscal classification
A tax classification used by a tax authority to categorize a product. Examples of product
fiscal classifications under the UNSPSC product fiscal classification types are "40151600:
Compressors" and "40151601: Air compressors".
product fiscal classification type
A system of classification or categorization used by a tax authority to classify products.
An example of a product fiscal classification type is the UNSPSC (United Nations
Standard Products and Services Code).
production capacity
The total number of production or similar units expected from an asset.
production upload
The process by which Oracle Assets loads production information from the Production
Interface table into Oracle Assets. You can use the Production Information Upload
process to transfer production information from a feeder system, such as a spreadsheet,
to Oracle Assets.
program
An organized set of objectives directed towards a common purpose or goal, undertaken
or proposed by an agency to carry out its responsibilities. Program can also mean an
agency's mission, programs, functions, activities, services, projects, and processes. You
can define a segment of your Accounting Flexfield to capture program information
when you implement Oracle Public Sector Financials.
promise date
The date on which a customer promises to pay for products or services.
The date on which you agree you can ship the products to your customer, or that your
customer will receive the products.
Glossary-70
promise to pay
A commitment by a customer to remit amounts due within a specific time period.
prompt payment act due date
The date by which you must pay an invoice to comply with United States Prompt
Payment Act regulations. Oracle Payables automatically revises your scheduled
payment in accordance with Prompt Payment Act requirements when you validate an
invoice.
proposed payment
In Oracle Payments, a grouping of documents payable into payments, which have not
yet been approved by the payment administrator or moved into the payment
instruction creation phase.
proprietary account
An account segment value (such as 3500) assigned one of the five proprietary account
types: Asset, Liability, Owner's Equity, Revenue, and Expense.
proprietary account type
Any of the five account types: Asset, Liability, Owner's Equity, Revenue, and Expense.
proprietary funds
A fund type that uses accounting and reporting techniques similar to commercial
enterprises. Examples of proprietary funds include internal service funds, such as a
central motor pool or central public works facility, and enterprise funds.
prorate calendar
The prorate calendar determines the number of prorate periods in your fiscal year. It
also determines, with the prorate or retirement convention, which depreciation rate to
select from the rate table for your table-based depreciation methods. You must specify a
prorate calendar for each book.
prorate convention
Oracle Assets uses the prorate convention to determine how much depreciation to take
in the first and last year of an asset's life based on when you place the asset in service. If
you retire an asset before it is fully reserved, Oracle Assets uses the retirement
convention to determine how much depreciation to take in the last year of life based on
the retirement date. Your tax department determines your prorate and retirement
conventions.
prorate date
Oracle Assets uses the prorate date to calculate depreciation expense for the first and
Glossary-71
last year of an asset's life.
proxima payment terms
A payment term you define for invoices due on the same day each period, such as your
credit card or telephone bills. This type of payment term is also used with balance
forward bills.
purchase cards
In Oracle Payments, a type of credit card, which is typically issued by a company to an
employee, but where the company is responsible for payment. These credit cards are
often used for low value business procurement purchases.
purchase order (PO)
In Oracle Assets, the order on which the purchasing department approved a purchase.
In Oracle General Ledger, a document used to buy and request delivery of goods or
services from a supplier.
In Oracle Payables, a type of purchase order you issue when you request delivery of
goods or services for specific dates and locations. You can order multiple items for each
planned or standard purchase order. Each purchase order line can have multiple
shipments and you can distribute each shipment across multiple accounts.
purchase order distribution
Each purchase order shipment consists of one or more purchase order distributions. A
purchase order distribution consists of the Accounting Flexfield information Payables
uses to create invoice distributions.
purchase order encumbrance
A transaction representing a legally binding purchase. Purchasing subtracts purchase
order encumbrances from funds available when you approve a purchase order. If you
cancel a purchase order, Purchasing creates appropriate reversing encumbrances entries
in your general ledger. Also known as obligation, encumbrance or lien.
purchase order line
An order for a specific quantity of a particular item at a negotiated price. Each purchase
order in Purchasing can consist of one or more purchase order lines.
purchase order requisition line
Each purchase order line is created from one or more purchase order requisition lines.
Purchasing creates purchase order requisition lines from individual requisitions.
purchase order revision
In Oracle Payables, a number that distinguishes printed purchase order versions.
Glossary-72
Purchasing automatically sets the revision to 0 when you initially create a purchase
order. Each purchase order you print displays the current revision number.
purchase order shipment
A scheduled delivery of goods or services from a purchase order line to a specified
location. Each purchase order line can have one or more purchase order shipments.
Purchasing defines a purchase order shipment by a purchase order line location you
enter in Purchasing. When you perform matching during invoice entry, you can match
an invoice to one or more shipments.
purchase requisition
An internal request for goods or services. A requisition can originate from an employee
or from another process, such as inventory or manufacturing. Each requisition can
include many lines, generally with a distinct item on each requisition line. Each
requisition line includes at least a description of the item, the unit of measure, the
quantity needed, the price per item, and the Accounting Flexfield you are charging for
the item. Also known as internal requisition.
See also: internal sales order, page Glossary-46
purchasing site
A supplier site from which you order goods or services. You must enter at least one
purchasing site before Purchasing will allow you to enter a purchase order.
purge
To purge a fiscal year is to remove the depreciation expense and adjustment transaction
records for that year from Oracle Assets. You must archive and purge all earlier fiscal
years and archive this fiscal year before you can purge it.
An Oracle Receivables process where you identify a group of records for Receivables to
delete from the database. Receivables purges each record and its related records.
Receivables maintains summary data for each record it purges.
quantity-based order
In Oracle Payables, an order you place, receive, and pay, based on the quantity, unit of
measure, and price of the goods or services that you purchase.
quarter average-to-date
The average of the end-of-day balances for a related range of days within a quarter.
quota sales credits
See: revenue sales credit, page Glossary-81, non-revenue sales credit, page Glossary-58
Glossary-73
rate period
The period for which a specific tax rate and related information is applicable.
receipt acceptance period
The number of days you allow for acceptance or rejection of goods. Oracle Payables
uses this to recalculate invoice scheduled payments. You specify receipt acceptance
days when you define your Financials options.
receipt batch source
A name that you use to refer to how your company accounts for receipts. Receipt batch
sources relate your receipt batches to both the bank and the accounting information
required for recording and posting your receipts.
receipt class
Automatic receipt processing steps that you relate to your receipt methods. You can
choose whether to confirm, remit, and clear automatic receipts.
receipt currency
The currency in which an expense report item originates.
receipt grace days
A specific number of days that you assign to your customers and sites to effectively
extend the due dates for their outstanding debit items.
receipt method
In Oracle Receivables, an attribute that associates receipt class, remittance bank and
receipt account information with your receipts. You can define receipt methods for both
manual and automatic receipts.
receipt source
Your name for a source from which your company receives cash. Your receipt sources
determine the accounting for payments that are associated with them. Receipts that you
deposit in different banks belong in different payment sources.
receipts
Payment received in exchange for goods or services. These include applied and
unapplied receipts entered within the GL date range that you specified.
In Oracle Payments, funds that Oracle Receivables receives as payments against its
invoices.
Glossary-74
receivable activities
Predefined Receivables activities used to define the general ledger accounts with which
you associate your receivables activities.
reciprocal customer relationship
An equal relationship shared between two customers. Both customers can enter
invoices against each others commitments as well as pay each others debit items.
recognition journal entry
See: multiperiod accounting
reconciliation
In Oracle Payables, the process of matching and clearing your bank account statement
lines with payments and receipts entered in Payables and Receivables. A reconciled
document has been matched to a bank statement line in Cash Management. Oracle
Payables inserts a cleared date and amount for all payments that your bank reports as
cleared.
In Oracle Receivables, an analysis that explains the difference between two balances. If
you are using Cash Management to reconcile receipts, payments are reconciled when
they are matched to a bank statement line.
reconciliation tolerance
A variance amount used by Cash Management's AutoReconciliation program to match
bank statement lines with receivables and payables transactions. If a transaction amount
falls within the range of amounts defined by a bank statement line amount, plus/minus
the reconciliation tolerance, a match is made.
record type
A bank file is made up of many different rows or records. Each record must have a type.
For example, a record may store information about a payment record or a batch record.
Record types help Oracle Receivables determine where different types of data are
stored in your bank file.
recoupment
In Oracle Payables, the process of recovering prepaid amounts when invoicing for
progress or the final delivery of goods or services, based on specific terms captured in
the Services Procurement contract.
recoverable amount
The recoverable amount of an asset or a cash-generating unit is the higher of its fair
value less costs to sell and its value in use.
Glossary-75
recoverable cost
The lesser of the cost ceiling or the current asset cost less the salvage value and ITC
basis reduction amount. Recoverable cost is the total amount of depreciation you are
allowed to take on an asset throughout its life.
recoverable tax amount
The part of the tax amount on a transaction that can be recovered.
recurring formula
See: recurring journal entry, page Glossary-76
recurring invoice
A feature that lets you create invoices for an expense that occurs regularly and is not
usually invoiced. Monthly rents and lease payments are examples of typical recurring
payments. You define recurring invoice templates and Payables lets you define
recurring invoices using these templates.
See also: recurring rule, page Glossary-76
recurring journal entry
A journal entry you define once; then, at your request, General Ledger repeats the
journal entry for you each accounting period. You use recurring journal entries to
define automatic consolidating and eliminating entries. Also known as recurring
formula.
recurring rule
A rule that is applied to the model invoice to determine the invoice dates of the
recurring invoices. You can choose Annually, Bi-Monthly, Days, Monthly, Quarterly,
Semi-Annually, Single Copy, and Weekly.
recurring schedule
A schedule used to determine the number of recurring invoices created. You specify the
recurring rule and number of recurring invoices you want to create.
reexpression coefficient
The reexpression coefficient (revaluation rate or correction factor) is the factor used to
adjust cost, accumulated depreciation, and depreciation expense amounts for inflation.
Historical amounts are multiplied by the reexpression coefficient to calculate the
inflation-adjusted amounts.
reference objects
(Oracle Subledger Accounting) Database objects that can be used to provide sources for
creating subledger accounting, even though they do not contain the subledger
accounting primary keys. Developers need to provide a joining clause between the
Glossary-76
reference objects and the transaction objects. Reference objects also enable sharing of
sources across applications.
See: transaction objects
regime-to-rate flow
(Oracle E-Business Tax) The hierarchy of tax configuration details belonging to a tax
regime, including all taxes, tax statuses, and tax rates.
registration
The record of a party's identity related details (registration number, legal address,
business activity, etc.), along with the appropriate government/legal authorities for the
purpose of claiming and ensuring legal and/or commercial rights and responsibilities.
reimbursement
A transaction you reflect once for the government as a whole, such as expenditures you
make from a fund that are properly applicable to another fund. For example, if you
charge an expenditure to the special revenue fund that is properly chargeable to the
general fund, you reimburse the special revenue fund by recording the expenditure in
the general fund and reducing the expenditure in the special revenue fund to be
reimbursed.
reimbursement currency
The currency in which an employee chooses to be reimbursed for an expense report.
See also: transaction currency, page Glossary-98
relationship
An association you can create between two or more customers in Receivables to make
payment applications easier.
See also: reciprocal customer relationship, page Glossary-75
relationship group
A mechanism for grouping similar relationship roles and phrases together. As a general
rule, this grouping is used to determine which relationship roles and phrases are
displayed in application user interfaces but can also be used to group roles and phrases
for other functional uses.
relationship phrase
Defines the role of the subject of a relationship. For example, if an organization is an
employer of a person, the Employer Of role describes the subject.
relationship type
A categorization that defines the rules and characteristics of a relationship.
Glossary-77
relative amount
The amount that represents the numerator for the ratio used to determine the amount
due. You specify your relative amount when you define your payment terms.
Amount Due = Relative Amount/Base Amount x Invoice Amount
release
An actual order of goods or services you issue against a blanket purchase order. The
blanket purchase order determines the characteristics and prices of the items. The
release specifies the actual quantities and dates ordered for the items. You identify a
release by the combination of blanket purchase order number and release number.
release code
The release name Oracle Payables or you assign when releasing a hold from an invoice.
released date
The date on which an invoice and its associated revenue is released.
remittance advice
A document that lists the invoices being paid with a particular payment document. You
can create and define remittance advices which you can use with any payment format
or you can use a standard remittance advice that Oracle Payables provides.
remittance bank
The bank in which you deposit your receipts.
report center
The unit at which capital costs and expenses are recorded or reported (for example,
well, lease, completion, prospect, facility, transport, transport measurement point,
division, department, etc.).
reporting currency
Reporting currencies are additional currency representations of primary or secondary
ledgers in which accounting and reporting can be performed. This currency can be used
for supplementary reporting purposes, like consolidation or management reporting.
Reporting currencies can only differ by currency from their source ledger.
reporting entity
The oversight unit and all related component units that combine to form a
governmental reporting entity.
Glossary-78
reporting hierarchies
Summary relationships within an account segment that let you group detailed values of
that segment to prepare summary reports. You define summary (parent) values that
reference the detailed (children) values of that segment.
reporting sequence
(Oracle Subledger Accounting) A sequence for subledger journal entries assigned when
a GL period is closed. Legal subledger journal entry sequences are used to meet fiscal
reporting requirements. Sequence numbers can be retroactively updated when
subledger journal entries are used to account for activity in prior periods.
requisition encumbrance
A transaction representing an intent to purchase goods and services as indicated by the
completion and approval of a requisition. Purchasing subtracts requisition
encumbrances from funds available when you reserve funds for a requisition. If you
cancel a requisition, Purchasing creates appropriate reversing entries in your general
ledger. Also known as commitment, pre-encumbrance or pre-lien.
responsibility report
A financial statement containing information organized by management responsibility.
For example, a responsibility report for a cost center contains information for that
specific cost center, a responsibility report for a division manager contains information
for all organizational units within that division, and so on. A manager typically receives
reports for the organizational unit(s) (such as cost center, department, division, group,
and so on) for which he or she is responsible.
restore
To restore a fiscal year is to reload the depreciation expense and adjustment transaction
records for that fiscal year into Oracle Assets from a storage device. You can only
restore the most recently purged fiscal year.
retainage
In Oracle Payables, the common practice of withholding a fixed amount or percentage
of payment until all work under a contract is completed and accepted. Retainage is also
called Retention or Contractual Withholds. The intention of retainage is to reduce the
risk of an incomplete project.
retainage release
In Oracle Payables, a request to release amounts retained under a Services Procurement
Contract when contracted work is completed and accepted.
retroactive addition
See: prior period addition, page Glossary-69
Glossary-79
retroactive reinstatement
See: prior period reinstatement, page Glossary-69
retroactive retirement
See: prior period retirement, page Glossary-69
retroactive transfer
See: prior period transfer, page Glossary-69
return reason
Justification for a return of product. Many companies have standard reasons that are
assigned to returns to be used to analyze the quantity and types of returns.
revaluation
In Oracle Assets, a feature that allows you to adjust the cost of your assets by a
revaluation rate. The cost adjustment is necessary due to inflation or deflation. You can
define revaluation rules for accumulated depreciation, for amortization of revaluation
reserve, and for revaluation ceilings.
In Oracle Receivables and Oracle General Ledger, a process that restates assets or
liabilities denominated in a foreign currency using exchange rates that you enter.
Changes in exchange rates between the transaction and revaluation dates result in
revaluation gains or losses.
revaluation gain/loss account
An income statement account you define that records net gains and losses associated
with the revaluation of foreign currency-denominated accounts, in ledger currency
units. You select the appropriate gain/loss account in the Revalue Balances window.
revaluation journal entry
A journal entry that is automatically created when you revalue foreign
currency-denominated accounts. The revaluation process creates a batch of revaluation
journal entries reflecting changes in market rates for each revalued currency and directs
the gain or loss amount to the gain/loss account that you specify.
revaluation status report
A report that summarizes the results of your revaluation. Oracle General Ledger
automatically generates this report whenever you revalue foreign asset and liability
account balances for an accounting period in your calendar. You can review this report
to identify accounts that were revalued in Oracle General Ledger and journal batches
and entries that were created because of the revaluation.
revenue recognition
The point at which revenue is recorded. The concept of revenue recognition is central to
Glossary-80
accrual-basis accounting. Revenue recognition schedules detail the points at which
percent amounts of a sale are recognized as revenue.
revenue sales credit
Sales credit you assign to your salespeople that is based on your invoice lines. The total
percentage of all revenue sales credit must be equal to 100% of your invoice lines
amount. Also known as quota sales credits.
See also: non-revenue sales credit, page Glossary-58, sales credit, page Glossary-82
reversing journal entry
A journal entry General Ledger creates by reversing an existing journal entry. You can
reverse any journal entry and post it to any open accounting period.
RFQ Only Site
A supplier site from which you receive quotations.
risk evaluation
In Oracle Payments, a service provided to evaluate the potential for fraud and to flag
risky transactions. This service, performed during authorization, incorporates
information from the payment system, such as the results of address verification.
rollforward
The process of taking the beginning balance of a period and then accounting for the
transactions within that period by attempting to equate the beginning balance with the
ending balance for the period.
rollup group
A collection of parent segment values for a given segment. You use rollup groups to
define summary accounts based on parents in the group. You can use letters as well as
numbers to name your rollup groups.
root node
A parent segment value in Oracle General Ledger that is the topmost node of a
hierarchy. When you define a hierarchy using the Account Hierarchy Manager or
Applications Desktop Integrators Account Hierarchy Editor, you specify a root node for
each segment. Oracle Financial Analyzer creates a hierarchy by starting at the root node
and drilling down through all of the parent and child segment values.
See also: parent segment value, page Glossary-61
routing
In Oracle Payments, the process that Payments uses to decide which payment system
the authorization is sent.
Glossary-81
routing rules
In Oracle Payments, rules that determine which payment system account and which
funds capture process profile are used to process funds capture transactions.
rule numbers
A sequential step in a calculation. You use rule numbers to specify the order in which
you want Oracle General Ledger to process the factors you use in your budget and
actual formulas.
sales credit
Credits that you assign to your salespeople when you enter orders, invoices, and
commitments. Credits can be either quota or non-quota and can be used in determining
commissions.
See also: non-revenue sales credit, page Glossary-58, revenue sales credit, page
Glossary-81
sales tax
A tax collected by a tax authority on purchases of goods and services. The supplier of
the good or service collects sales taxes from its customers (tax is usually included in the
invoice amount) and remits them to a tax authority. Tax is usually charged as a
percentage of the price of the good or service. The percentage rate usually varies by
authority and sometimes by category of product. Sales taxes are expenses to the buyer
of goods and services.
sales tax structure
The collection of taxing bodies that you will use to determine your tax authority.
'State.County.City' is an example of a Sales Tax Structure. Oracle Receivables adds
together the tax rates for all of these components to determine a customer's total tax
liability for a transaction.
scheduled payment
A schedule used to determine the amount and date of payment due. You use payment
terms to determine your scheduled payment as well as any discounts offered.
See also: payment terms, page Glossary-66
scoring
Assigns value to an object such as a customer, account, bill to location, or delinquency
and determines delinquency status.
scoring component
Uses a select statement or function to derive quantifiable values for business questions
such as the total number of delinquencies for a customer.
Glossary-82
secondary ledger
An optional, additional ledger that is associated with the primary ledger for an
accounting setup. Secondary ledgers can represent the primary ledger's data in another
accounting representation that differs in one or more of the following: chart of accounts,
accounting calendar/period type combination, currency, subledger accounting method
and ledger processing options. Secondary ledgers can be maintained at four different
data conversion levels: Balance, Journal, Subledger Journal, and Adjustments Only.
segment
In Oracle Advanced Collections, a database view used for scoring and strategies.
The building blocks of your chart of accounts in Oracle General Ledger. You define the
structure and meaning of individual segments when customizing a flexfield. Each
account is comprised of multiple segments. Commonly used segments include
company, cost center, department, account, and product.
See also: Account Combination, page Glossary-1
senior tax authority
The first tax location in your sales tax structure. This segment does not have a parent
location. For example, in the sales tax structure 'State.County.City', State is the senior
tax authority.
sequence
Sequence generates numbers for documents or accounting entries. The generated
sequence numbers are stored in the database tables registered as Sequence Entity.
sequence assignment
Allows users to control sequence numbering by specifying sequencing rules for a given
sequence.
sequence context
The business boundaries for generating sequence numbers for documents or accounting
entries may be generated. Examples include Legal Entity, Tax Registration Number,
Ledger.
sequence control attribute
An attribute, which is unique to the records of a Sequence Entity.
sequence control attribute combination
Unique set of values for individual sequence control attributes that make up a sequence
control attribute structure.
Glossary-83
sequence control attribute structure
Corresponds to a collection of sequence control attribute.
sequence control date type
Date type available to a Sequence Entity.
sequence entity
Represents the product table information for documents or accounting entries that are
available for being sequence numbered.
sequence event
An event that triggers a document or an accounting entry sequence numbering.
Examples include Payables Invoices approval for document and posting of GL journal
entries for accounting entries. Sequence events can be triggered when:
•
Posting: When GL journal entries are posted to a ledger
•
GL Period Close: When accounting entries are closed
•
Creation/Commit: When GL journal entries are created or committed to the
database
sequence type
Receivables provides two types of sequences: Automatic and Manual. Automatic
numbering sequentially assigns a unique number to each transaction as it is created.
Manual numbering requires that you manually assign a unique number to each
transaction when you create it. You can skip or omit numbers if desired.
sequence version
Information regarding the series of sequence number and the effective date range of the
series.
sequencing context
The business boundaries for generating sequence numbers for documents or accounting
entries may be generated. Examples include Legal Entity, Tax Registration Number,
Ledger.
sequencing rule
Sequencing rules define the relationships between Sequence Events, Sequence Entities,
Sequence Context Types, Sequence Control Attributes, and Sequence Control Date
Types.
Glossary-84
separate remittance advice
In Oracle Payments, a file or document for each payee that lists the invoices that the
deploying company has paid to that payee. This is an optional feature initiated by the
deploying company.
service subscription
The settings that let a combination of tax regime and first party use the tax calculation
services of a tax service provider in place of Oracle E-Business Tax. The tax calculation
services of the tax service provider are used to calculate the applicable taxes of this tax
regime for transactions belonging to the first party.
See also: tax service provider, page Glossary-95
settlement
In Oracle Payments, the actual payment in the funds capture flow. Funds are captured
against a payment instrument and deposited to the first party payee's bank account. For
credit card transactions and for debit card transactions with some payment systems,
this is the second step in the funds capture process, after authorization.
settlement batch
In Oracle Payments, a collection of settlements (and sometimes credits), along with
aggregate settlement information created by Oracle Payments during the funds capture
flow. A settlement batch is usually converted into a payment file to be transmitted to a
payment system for further processing and settlement.
settlement batch creation rules
In Oracle Payments, rules that specify how funds capture transactions are grouped into
settlement batches. Some rules are hard coded while others are user-defined.
settlement date
The date before which you cannot apply a prepayment to an invoice. Oracle Payables
prevents you from applying a temporary prepayment to an invoice until on or after the
Settlement Date of the prepayment.
shared use assets
When your accounting entities in the same corporate book share the use of an asset, you
can apportion depreciation expense to each by percentage or units used.
ship-to address
The address of the customer who is to receive products or services listed on the invoice
or order.
site use
See: business purpose, page Glossary-15
Glossary-85
skeleton entry
A recurring journal entry the amounts of which change each accounting period. You
simply define a recurring journal entry without amounts, then enter the appropriate
amounts each accounting period. For example, you might define a skeleton entry to
record depreciation in the same accounts every month, but with different amounts due
to additions and retirements.
source
The origin of imported invoices. Import sources for the Payables Open Interface include
Invoice Gateway, Oracle Assets, Oracle Property Manager, Credit Card, EDI Gateway
(e-Commerce Gateway), ERS, RTS (Return to Supplier), and Internet Supplier Portal.
You can define other sources in Payables for invoices you import from other accounting
systems. Import sources for the Expense Report Open Interface are Payables Expense
Report for invoices you enter in Payables or Internet Expenses, and Oracle Projects for
invoices from Oracle Projects.
(Oracle E-Business Tax) An identifier that designates whether a tax registration is
explicitly or implicitly defined.
(Oracle Subledger Accounting) The contextual and reference data drawn from the
transaction model and included in transaction objects data, which can be used to
determine how the event should be accounted. For example, the sources associated with
a receipt application can include the trading partner name, trading partner type, receipt
method, and bank account name.
source product
Relative to Oracle Payments, a product within the Oracle E-Business Suite that wants to
use Oracle Payments for payment processing. Source products are those that accept
payment instruments for funds capture, such as Oracle iStore, Oracle Order
Management, and Oracle Student System, or for funds disbursement, such as Oracle
Payables.
source transaction
For related transactions, the identifying source transaction from which the related items
are created.
split amount
A dollar amount that determines the number of invoices over and under this amount,
as well as the total amounts remaining. For example, your company generates invoices
that are either $300 or $500. You choose $400 as your split amount so that you can
review how much of your open receivables are comprised of your $300 business and
how much corresponds to your $500 business. The split amount appears in the
Collection Effectiveness Indicators Report.
Glossary-86
split payment terms
A feature used to automatically schedule multiple payments for an invoice. You can
split payments using either a flat amount or a percentage of the total amount due.
spot exchange rate
A daily exchange rate you use to perform foreign currency conversions. The spot
exchange rate is usually a quoted market rate that applies to the immediate delivery of
one currency for another.
standalone asset
An individual asset that does not belong to a group asset.
standard balance
The usual and customary period-to-date, quarter-to-date, or year-to-date balance for an
account. The standard balance is the sum of an account's opening balance, plus all
activity for a specified period, quarter, or year. Unlike an average balance, no additional
computations are needed to arrive at the standard balance.
standard entry
A recurring journal entry whose amount is the same each accounting period. For
example, you might define a standard entry for fixed accruals, such as rent, interest,
and audit fees.
standard memo lines
A type of line that you assign to an invoice when the item is not an inventory item (for
example, 'Consulting Services'). You define standard memo lines to speed data entry
when creating your transactions.
standard reversal
A payment reversal where Oracle Receivables automatically updates your general
ledger and re-opens the debit items you closed by reversing the original payment.
STAT
The statistical currency Oracle General Ledger uses for maintaining statistical balances.
If you enter a statistical transaction using the STAT currency, Oracle General Ledger
will not convert your transaction amounts.
statistical journal entry
A journal entry in which you enter nonfinancial information such as headcount,
production units, and sales units.
Glossary-87
statistical quantity
Statistical information relating to the unit of measure for an invoice distribution line.
For example, when you enter invoices for office rent, you can enter Square Feet (or
whatever Unit of Measure you define in General Ledger) in the Unit field for an invoice
distribution, and the number of square feet in the Statistical Quantity field for an
invoice distribution. Oracle Payables includes the statistical quantity in the journal
entries it creates for General Ledger during posting. You must use General Ledger in
order to define a unit of measure and to be able to enter statistical quantities.
statistics
Accounting information (other than currency amounts) you use to manage your
business operations. With Oracle General Ledger, you can maintain budget and actual
statistics and use these statistics with budget rules and formulas.
step-down allocation
In Oracle General Ledger, a group of allocations that are ordered so that the posted
results of one step are used in the next step of the AutoAllocation set. For example, you
might allocate parent company overhead to operating companies based on revenues.
You can then use a step-down allocation to allocate overhead to cost centers within the
operating companies based on headcount.
strategy
In Advanced Collections strategies are used to manage collections issues with specific
customers. A strategy has one or more work items.
subledger
(Oracle Subledger Accounting) A ledger that is subsidiary to the general ledger,
representing the accounting for a single Oracle application. Transactions occur in Oracle
applications such as Payables and Receivables. To represent the financial impact of
these transactions, accounting is created as subledger and general ledger entries. An
organization can create several subledger accounting representations to meet the needs
of different groups of readers, such as regulatory officials or investors. The AMB creates
these representations. Each representation is created using a subledger accounting
method, and posted to a distinct ledger. For example, the entries created for Payables
can be created once using a fiscal subledger accounting method and a second time using
an analytical subledger accounting method. Each of these subledger entries are
transferred and posted. However, they are transferred and posted to different ledgers.
Subledger Accounting
Refers to the infrastructure for creating and maintaining subledger journal entries.
Subledger Accounting includes the AMB, the Subledger Accounting program,
transaction account builder, control and third party control accounts, and the ability to
inquire, view, and drill from subledger journal entries. These components enable users
Glossary-88
to create flexible application accounting definitions and multiple representations of
accounting, which are independent of their transaction models.
Subledger Accounting method
A group of consistent application accounting definitions that determines how
accounting events are processed by the Subledger Accounting program. The subledger
accounting method is assigned to a ledger.
An example of a subledger accounting method is U.S. GAAP accounting method, which
includes a U.S. GAAP application accounting definition for Payables, Assets, and other
Oracle applications. This method is assigned to a ledger which uses U.S. GAAP.
Subledger Accounting program
(Oracle Subledger Accounting) A program that processes eligible accounting events to
create subledger journal entries. For each accounting event, the Subledger Accounting
program retrieves source values from the transaction objects and applies the application
accounting definitions to create subledger journal entries. The Subledger Accounting
program is also responsible for the transfer of journal entries to the General Ledger.
subledger application
An Oracle application used to create transactions that may require accounting. For
example, Oracle Process Manufacturing, Projects, and Assets are subledger
applications.
subledger journal entry
(Oracle Subledger Accounting) A journal entry which includes all of the journal lines
used to account for an event originating from a subledger application. Several
subledger journal entries can be summarized to create a single general ledger journal
entry. Users determine whether to summarize subledger journal entries when they
create journal line types in the AMB. Because subledger journal entries provide the
details for accounting, their corresponding general ledger entries are typically
summarized. For example, the entries created to record the approval of a single invoice
is a subledger journal entry. Several such entries can be summarized to form a single
General Ledger journal entry.
subledger transaction
(Oracle Subledger Accounting) The recording of an action in a subledger application. A
transaction is typically created to represent the impact of a business event. It frequently
corresponds to a document. However, the transaction should not be identified
exclusively by a document, since each document can be used as a basis for multiple
transactions. Some transactions generate a subledger journal entry. Examples of
subledger transactions that typically generate journal entries include approving
invoices, creating expenditure batches, and adding fixed assets.
Glossary-89
summary account
An account whose balance represents the sum of other account balances. You can use
summary accounts for faster reporting and inquiry as well as in formulas and
allocations.
super group
Used to standardize the depreciation method and limits across a range of group assets.
When you assign a super group to a group asset, the group asset depreciation is
calculated using the depreciation method and the rules defined for the super group.
supplier
A business or individual that provides goods or services or both in return for payment.
supplier invoice
An external supplier's invoice entered into Oracle Payables.
supplier number
A number or combination of numbers and characters that uniquely identifies a supplier
within your system.
supplier site
A facility maintained by a supplier for the purpose of conducting business. A supplier
may have one or many supplier sites.
Payables maintains supplier information regarding each supplier site you define for a
supplier. You may define a supplier site as a pay site only, a purchasing site only, both a
pay site and a purchasing site, or as an RFQ only site, in which case it may not have
purchase orders entered against it. You can also select one pay site as your primary pay
site.
See also: pay site, page Glossary-62, purchasing site, page Glossary-73, RFQ only site,
page Glossary-81
tax agent
A party that is responsible for the remittance and/or reporting of taxes to a tax authority
on behalf of another taxpayer.
tax amount
The value of a tax for a given tax jurisdiction for a given tax event. Each tax amount that
is calculated for a tax may contain both a recoverable tax amount and a non-recoverable
tax amount.
Glossary-90
tax applicability
The process that identifies all of the taxes to be determined and levied on a transaction.
tax authority
A governmental entity that collects taxes on goods and services purchased by a
customer from a supplier. In some countries, there are many authorities (for example,
state, local, and federal governments in the U.S.), while in others there may be only one.
Each authority may charge a different tax rate.
Tax book
A depreciation book that you use to track financial information for your reporting
authorities.
tax calculation
The process and data by which a tax amount is determined for one or more taxes for a
tax event.
tax calculation formula
A formula used in tax calculation. The standard tax formula is (tax rate) * (line amount)
= tax amount.
tax classification code
A code that represents a migrated tax code, including the tax codes within a tax group,
from Release 11i tax functionality to Release 12 Oracle E-Business Tax. Payables and
Purchasing tax codes migrate as input tax classification codes; Receivables and Projects
tax codes migrate as output tax classification codes. A tax classification code is used in
tax rules as a determining factor in direct tax rate determination.
tax code
In Release 11i, the code that you assign Payables or Receivables transaction tax
information, including sales tax or value-added tax rates, tax type, taxable basis, tax
controls, and tax accounting. In Release 12, these tax code functions migrate to Oracle
E-Business Tax as various codes in the regime-to-rate flow. Payables tax codes for
withholding tax still retain the Release 11i functionality in Release 12.
See also: regime-to-rate flow, page Glossary-77
tax condition
A condition that specifies how a transaction value (direct or derived) of a determining
factor needs to be compared with the value stored as part of a tax rule.
tax condition set
A group of tax conditions used to define tax rules. A tax condition set is created for
Glossary-91
every tax determining factor in the tax determining factor set.
tax content
The master and reference (non-transactional) data necessary to support the
determination, recovery, settlement, or reporting of one or more taxes.
tax currency
The currency in which the tax authority expects to be paid and receive reports.
tax date
A date associated to a tax event for a tax. There are three tax dates required: tax
determination date, tax point date, and tax exchange rate date.
tax determination
A set of processes and the data that includes these sub-processes: tax applicability, tax
status determination, tax calculation, and tax lines determination.
tax determining factor
An input that affects the outcome of a tax calculation process. Tax determining factors
are grouped into tax determining factor sets and used to define tax condition sets and
tax rules.
tax determining factor class
A categorization used to classify a tax determining factor into pre-defined categories,
such as party fiscal classification class, geography class, accounting flexfield class, and
registration.
tax determining factor set
A group of one or more combinations of tax determining factors.
tax distribution
A distribution line used to record a sales or VAT tax charge on an invoice.
See also: invoice distribution line, page Glossary-48
tax event
An occurrence of a tax event type on a tax event class.
tax event class
A business classification used to categorize a group of documents (application event
classes) of one or more E-Business Suite applications that are essentially the same from
the tax perspective, such as an invoice, a purchase order, or an inventory issue.
Glossary-92
tax event type
An action on a tax event class, which results in a call to a published tax service.
tax exempt
A customer, business purpose, or item to which tax charges do not apply.
See also: exemption certificate, page Glossary-34
tax formula
A formula used to define the taxable basis and tax calculation for a given tax.
tax formula type
A type that indicates the usage of a tax formula.
tax geography
An implementation of a user-defined geography for tax purposes.
tax geography type
A classification of a tax geography for a specific tax purpose, such as the counties in the
US State of California.
tax inclusive
A tax that is included in the sales or cost price of a product.
tax jurisdiction
A geographic area where a tax is levied by a specific tax authority.
tax jurisdiction rate
The tax rate for a given tax jurisdiction.
tax line
A line for a specific tax that is related to one or more transaction lines. A detail tax line
relates to exactly one item line, whereas a summary tax line can relate to one or more
item lines within the same transaction. A tax line may have one or more tax recovery
schedules associated with it.
tax location
A specific tax location within your tax authority. For example 'Redwood Shores' is a tax
location in the Tax Authority California.San Mateo.Redwood Shores.
tax only tax line
A tax line that is not related to any item line on the current invoice. Typically, such lines
Glossary-93
figure in tax-only invoices, that pertain to purchases that are invoiced separately.
tax precedence
The order or priority to be observed in a tax calculation of more than one tax. Taxes are
ranked in order of calculation because the calculated value of one tax affects the taxable
basis of the subsequent tax calculation.
tax rate
The rate specified for a tax status for an effective time period. A tax rate can be
expressed as a percentage, a value per unit quantity, or a fixed sum per transaction.
tax rate type
A classification that indicates whether the tax rate is a percentage or a quantity based
rate.
tax recovery
The full or partial reclaim of taxes paid on the purchase or movement of a product.
tax recovery rate
The rate specified for the full or partial reclaim of taxes paid on the purchase or
movement of a product.
tax recovery type
A classification of tax recovery.
tax regime
The set of tax rules that determines the treatment of one or more taxes administered by
a tax authority.
tax regime level
The level at which a tax regime is defined, that is, for a specific country or group of
countries.
tax registration
The registration of a party with a tax authority that confers tax rights and imposes
certain tax obligations.
tax rule
A user-defined rule that looks for a result for a specific tax determination process, such
as determining place of supply or tax registration, in relation to a tax on a transaction. A
tax rule comprises a tax determining factor set and one or more tax condition sets. The
tax condition sets are evaluated for a match between the rule value and the transaction
Glossary-94
line value. If a match is found, the result associated with the matching condition set is
used. If a match is not found, the next tax rule in order of priority is processed.
See also: tax condition set, page Glossary-91tax determining factor set, page Glossary-92
tax service provider
A third party software company that provides tax calculation services to Oracle
E-Business Tax via service subscriptions.
tax status
The taxable nature of a product in the context of a transaction for a tax.
tax tolerances
The acceptable degrees of variance you define for the differences between the calculated
tax amount on an invoice and the actual tax amount on the invoice. The calculated tax
amount is the amount of tax on the invoice as determined by the tax name for the
invoice (which has a defined tax rate) and the amount of the invoice. The actual tax
amount is the sum of all the tax distribution lines. If the variance between these two
amounts exceeds the tolerances you specify, Invoice Validation places the invoice on
hold.
tax type
A high-level categorization of taxes that is common across all tax regimes. For example,
Canadian GST, French TVA, Spanish IVA, and Brazilian IPI can all use the tax type
"Value Added Tax".
tax zone
A geographical area or group of areas (either contiguous or not) within a tax zone type
that has a common behavior for one or more taxes.
tax zone type
A geography type, such as state, county, city, or province, that divides the geography of
a country into smaller geographic areas for tax purposes.
taxable basis
The value or quantity on which a specific tax is calculated. For a value-based tax, the
taxable basis is typically the transaction line amount; for a quantity-based tax, the
taxable basis is typically the transaction line quantity. The taxable basis of a value-based
tax may differ from the transaction line amount if discounts, charges, compounded
taxes, and base rate modifiers need to be considered.
TCA registry
The central repository of party information for all Oracle applications. The party
information includes details about organizations and people, the relationship among
Glossary-95
the parties, and the places where the parties do business.
template
A pattern that Oracle General Ledger uses to create and maintain summary accounts.
For each template you specify, General Ledger automatically creates the appropriate
summary accounts.
Terms Date Basis
The method that determines the date from which Oracle Payables calculates an invoice
scheduled payment. The terms date basis can be Current, Goods Received, Invoice, or
Invoice Received.
territory
A feature that lets you categorize your customers or salespeople. For example, you can
categorize your customers by geographic region or industry type.
third party control accounts
(Oracle Subledger Accounting) Natural accounts which only have meaning within the
context of a subledger that records a subledger's balance and activity in relation to
trading partners. When setting up a third party control account, users can specify
whether the account will be used to record activity for suppliers, customers, or both.
Control account balances are updated exclusively by subledger journal entries
originating in the subledger applications. Posting to third party control accounts is
generally completed in summary mode, as the detail is tracked in the subledger.
Examples of third party control accounts include receivables and liability accounts.
third party payee
In Oracle Payments, the external party, such as a supplier, receiving funds
disbursements from the first party payer.
third party payer
In Oracle Payments, the external party, such as a customer, remitting funds for payment
to the first party payee.
third party subidentification
A generic term for a customer address, a supplier site, or a subinventory.
tolerance
A feature you use to specify acceptable matching and tax variances. You can specify
either percentage-based or amount-based tolerances or both for quantity and item price
variances between matched invoices and purchase orders. You can also specify
percentage-based or amount-based tolerances for your tax variances. Invoice Validation
uses the tolerance levels you define to determine whether to hold or validate invoices
Glossary-96
for payment.
See also: Matching Tolerances, page Glossary-54, Tax Tolerances, page Glossary-95,
reconciliation tolerance, page Glossary-75
tolerance percentage
The percentage amount by which customers are allowed to exceed their credit limit and
still pass the credit check.
trading partner
In Oracle Payables, a single entity that is both a customer and a supplier to the
deploying company
transaction
In Oracle Receivables, these include invoices, debit memos, credit memos, deposits,
guarantees and chargebacks entered with a GL date that is between the beginning and
ending GL dates.
Relative to Oracle Payments, an entity in another product for which money must be
collected. For example, in Oracle Order Management, a transaction is a sales order. In
Oracle Quoting, a transaction is a quote. In Oracle Receivables, an example of a
transaction is an invoice created manually in the transactions workbench or an invoice
created via AutoInvoice.
Transaction Account Builder (TAB)
(Oracle Subledger Accounting) A mechanism to derive default accounts for
transactions. TAB shares some components with AMB, for example sources and
derivation rules.
transaction authorization entity
In Payments, an entity that is used to store information about the authorization portion
of a transaction.
transaction batch sources
See: batch source, page Glossary-11
transaction business category code
A business classification used to categorize an Oracle E-Business Suite transaction.
transaction chart of accounts
(Oracle Subledger Accounting) The chart of accounts used to enter Accounting Flexfield
information on transactions in subledger applications. For example, when a receivables
invoice is recorded in the system, the item, tax, and freight Accounting Flexfields that
the user views and enters for the invoice contains values from the transaction chart of
accounts.
Glossary-97
Note: While the accounting chart of accounts is used to create
Accounting Flexfields for subledger journal entries, the transaction
chart of accounts is used when subledger transactions are created.
See: accounting chart of accounts
transaction code
In Oracle Cash Management, you define transaction codes that your bank uses to
identify different types of transactions on its statements. For example, your bank may
use transaction codes T01, T02, and T03 to represent debit, credit, and stop payment.
In Oracle Payables, a feature you use to describe bank transactions prior to initiating
automatic reconciliation from a bank tape. You define transaction codes based on those
your bank provides, and Oracle Payables uses them to load information from your bank
tape. For example, your bank may use transaction codes T01, T02, and T03 to represent
debit, credit, and stop payment.
transaction currency
The currency in which a transaction originally takes place. For processing purposes, the
reimbursement currency in an expense report is the transaction currency.
transaction extension
In Payments, a row in the Transaction Payment-Extension Entity table that contains the
payment attributes of the transaction and an identifier that corresponds to the
transaction.
transaction fiscal classification
A tax classification used by a tax authority to categorize a transaction.
transaction intended use
A tax classification that describes the purpose for which a good or a service involved in
a transaction is ultimately used. Examples of transaction intended use in a purchase
transaction are Consumption and Resale, which can have different implications for tax
recovery.
transaction objects
(Oracle Subledger Accounting) Tables or views that contain transaction data sources in
a standardized format required by the Subledger Accounting program. Transaction
objects enable accounting independence from transaction models. The transaction
objects should include all data which may be required to create subledger journal
entries from accounting events.
See: source
Glossary-98
transaction payment-extension entity
In Payments, an entity that is used to store payment attributes for transactions that
require funds capture. Records in this entity are linked one-to-one with the source
products' transaction records, and are thought of as extensions of these transactions.
Attributes in this table include payment method and payment instrument ID.
transformation rule set
(Financial Consolidation Hub) The rule that transforms the data when it is submitted.
transaction type
In Oracle Assets, the kind of action performed on an asset. Transaction types include
addition, adjustment, transfer, and retirement.
In Oracle Cash Management, transaction types determine how Cash Management
matches and accounts for transactions. Cash Management transaction types include
Miscellaneous Receipt, Miscellaneous Payment, Non-Sufficient Funds (NSF), Payment,
Receipt, Rejected, and Stopped.
(Oracle E-Business Tax) A sub-classification of a transaction class used to categorize a
transaction.
In Oracle Receivables, an invoice control feature that lets you specify default values for
invoice printing, posting to the general ledger, and updating open receivable balances.
transformation function
A seeded or user-defined rule that transforms and standardizes TCA attribute values
into representations that can assist in the identification of potential matches.
translation
See: revaluation, page Glossary-80, foreign currency translation, page Glossary-38
translation adjustment
(Financial Consolidation Hub) Adjustments done while translating from one currency
to the other.
translation category
(Financial Consolidation Hub) The category that picks up all data from a child entity
and translates it to the parent's currency.
translation method
(Financial Consolidation Hub) A collection of settings that determines the currency
processing that is applied to a parent/child relationship during consolidation.
Glossary-99
transmission format
A transmission format defines what data your bank is sending in the bank file, and how
that data is organized. In Oracle Receivables, you define a transmission format that
identifies what types of records you want to import, what data is in each type of record,
and the position in which that data is located on the record.
unapplied payment
The status of a payment for which you can identify the customer, but you have not
applied or placed on account all or part of the payment. For example, you receive a
check for $1200.00 and you apply it to an open debit item for $1000.00. The remaining
$200.00 is unapplied until you either apply the payment to a debit item or place the
amount On Account.
unclaimed property
In Payables, payments that have not cleared an internal bank account. Usually this
happens when a payee did not receive a check payment, or received it and never
deposited it.
unearned discounts
Discounts your customers are allowed to take if they pay for their invoices after the
discount date. (The discount date is determined by the payment terms.) You can specify
at the system level whether you want to allow customers to take unearned discounts.
See also: payment terms, page Glossary-66
unearned revenue
Revenue received and recorded as a liability or revenue before the revenue has been
earned by providing goods or services to a customer.
unidentified payment
The status of a payment for which the customer is unknown. Oracle Receivables retains
unidentified payments for you to process further.
unit of measure
A classification created in Oracle General Ledger that you assign to transactions in
General Ledger and subledger applications. Each unit of measure belongs to a unit of
measure class.
For example, in Oracle Payables, you define square feet as a unit of measure. When you
enter invoices for office rent, you can track the square footage addition to the dollar
amount of the invoice.
In Oracle Assets, a label for the production quantities for a units of production asset.
The unit used to measure production amounts.
See also: statistical quantity, page Glossary-87
Glossary-100
unit of measure classes
Groups of units of measure with similar characteristics. Typical units of measure classes
are Volume and Length.
UOM
See: unit of measure, page Glossary-100
US Sales and Use tax
Levied on the end consumer, prior stages of supply are exempt by certificate awarded
by the state of the recipient. Government and other organizations are exempt by statute.
Many taxes may apply to a single transaction, including state, County, City, Transit,
and Muni tax. Monthly returns to each state are required only if the operating company
is registered for business within that state. Monthly reporting of Sales and Use tax can
be on an accrual or cash basis.
use tax
A tax that you pay directly to a tax authority instead of to the supplier. Suppliers do not
include use tax on their invoices. You sometimes owe use tax for goods or services you
purchased outside of, but consumed (used) within the territory of a tax authority. Use
taxes are liabilities to the buyer of goods and services. You can define a tax name for use
taxes. When you enter a use tax name on an invoice, Oracle General Ledger does not
create an invoice distribution or general ledger journal entry for the tax.
user-defined geography
An implementation of a geography, defined by a party, for specific purposes.
validity period
In Oracle Payments, a period of time for which a credit card funds authorization is
valid. The validity period is controlled by the issuing bank.
validation rule set
(Financial Consolidation Hub) A rule set that checks the data when it is submitted.
valuation method
In Subledger Accounting terminology, each monetary valuation of an underlying
accounting event is called a valuation method.
In most applications, there is one transaction recorded for each underlying accounting
event. Although there may be many possible interpretations of the financial impact of
the accounting event and therefore many possible accounting representation, the
underlying event has only one monetary value.
However, in some applications, a single underlying business event can produce one or
more transactions, each with a different monetary value. For example, a fixed asset may
Glossary-101
be depreciated and therefore valued according to corporate rules in a corporate book
and according to tax rules in one or more tax books. Each of these asset books
represents a different valuation method.
Value Added Tax (VAT)
An indirect tax on consumer expenditure that is collected on business transactions and
imports. VAT is charged at each stage (production, distribution, retail) in the supply of
products. If the customer is registered for VAT and uses the supplies for "taxable"
business purposes, he will typically receive credit for this VAT paid. The broad effect is
that the VAT is actually borne by the final consumer of a product.
values set maps
(Financial Consolidation Hub) A map specifies the relationship between dimension
members in child value sets to dimension members in the consolidation value set.
VAT
See: value added tax, page Glossary-102
void check stock
A feature you use to void a range of blank check stock.
voucher
A generic term for accounting entries created from a transaction for a document, such as
an invoice or credit memo.
voucher number
A number used as a record of a business transaction. A voucher number may be used to
review invoice information, in which case it serves as a unique reference to a single
invoice.
warehouse
To store approved invoices for payment by a central Treasury or a central accounts
payable department.
warrant
In government accounting, an order drawn authorizing payment to a designated payee.
Not to be confused with a stock warrant.
weighted-average exchange rate
An exchange rate that Oracle General Ledger automatically calculates by multiplying
journal amounts for an account by the translation rate that applies to each journal
amount. You choose whether the rate that applies to each journal amount is based on
the inverse of the daily conversation rate or on an exception rate you enter manually.
Glossary-102
General Ledger uses the weighted-average rate, instead of the period-end, average, or
historical rates, to translate balances for accounts assigned a weighted-average rate
type.
weighted-average translation rate
The rate General Ledger uses to translate your ledger currency into a foreign currency
for your transactions. Oracle Payables provides transaction information based on daily
rates you enter in the system and rate exceptions you define for individual transactions.
This transaction information allows General Ledger to calculate an accurate
weighted-average translation rate.
WIP
See: work in process, page Glossary-103
withholding tax
The withholding of taxes that one party performs on behalf of another or itself, for
remittance to a tax authority.
withholding tax group
You can assign one or more Withholding Tax type tax names to a withholding tax
group. Assign a withholding tax group to an invoice or distribution line and use Oracle
Payables to automatically withhold tax for expense reports and supplier invoices.
withholding tax rate
The rate at which Payables withholds tax for an invoice distribution line that has a
Withholding Tax type tax name assigned to it.
word replacement
A word mapping that is used to create synonyms which are treated as equivalents for
searching and matching.
work in process
An item in various phases of production in a manufacturing plant. This includes raw
material awaiting processing up to final assemblies ready to be received into inventory.
write-off limits
Limits that you set at the system and user levels for creating receipt write-offs. Oracle
Receivables enforces the limits that you define when users write-off receipts. Users can
only write off receipt balances within their user limit for a given currency and the total
cumulative write-off amount cannot exceed the system level write-off limit.
write-on
An event type classification that causes revenue to accrue and generates an invoice for
Glossary-103
the amount of the write-on.
year average-to-date
The average of the end-of-day balances for a related range of days within a year.
Glossary-104
Index
A
accounting environment types, 2-7
chart of accounts, 2-12
comparison, 2-13
exclusive legal environment, 2-7
other accounting environment, 2-9
shared legal environment, 2-8
accounting options
completing, 3-27
ledger options, 3-30
primary ledger setup steps, 3-29
secondary ledger setup steps, 3-29
updating legal entities, 3-28
Accounting Options page, 3-5
accounting representations
defining, 3-23
accounting sequencing, 1-4
Accounting Setup example, A-23
Accounting Setup examples, A-1
Canadian legal entity, A-11
North American shared legal environment, A8
U.K., A-19
U.S. legal entities, A-3
U.S. shared legal environment, A-1
Accounting Setup Manager, 1-4
accounting options
ledger options, 3-30
primary ledger setup steps, 3-29
secondary ledger setup steps, 3-29
updating legal entities, 3-28
accounting setup, 3-23
See also creating
accounting setups
creating, 3-1
prerequisites, 3-2
process, 3-2
assigning legal entities, 3-23
assigning reporting currencies to ledgers, 3-46
balancing segment value
assignments, 3-61
changing conversion rules, 3-57
checklist, 3-6
completing accounting options, 3-27
completing accounting setup, 3-78
consolidation
using ledger in other accounting setups,
3-74
defining legal entities, 3-14
implementation considerations, 1-1
intercompany accounts, 3-65
intracompany balancing rules, 3-65
journal conversion rule examples, 3-54
legal entities
balancing segment values, 3-13
overview, 3-12
overview, 2-1
pages, 3-3
prerequisites checklist, 3-18
primary ledger
mapping to secondary ledger, 3-82
reporting currencies, 3-45
adding, 3-58
disabling conversion, 3-60
Index-1
journal category conversion, 3-53
journal source conversion, 3-53
subledger level, 3-54
secondary ledgers, 3-66
adding, deleting, and disabling, 3-79
consolidated reporting, 3-71
data conversion levels, 3-67
subledger accounting options, 3-63
accounting setup prerequisites
general ledger setup, 3-2
subledger accounting methods, 3-3
accounting setups
accounting environment types, 2-7
chart of accounts, 2-12
comparison, 2-13
exclusive legal environment, 2-7
other accounting environment, 2-9
shared legal environment, 2-8
assigning legal entities, 3-23
checklist, 3-6
completing, 3-78
creating, 3-1, 3-23
defining, 2-1
defining accounting representations, 3-23
ledger processing options, 2-2
example, 2-3
legal entities, 3-14
overview, 2-1
pages, 3-3
prerequisites, 3-2
process, 3-2
reporting currencies, 2-6
saving the accounting structure, 3-26
secondary ledgers, 2-4
Accounting Setups page, 3-5
accounting setup structures
creating, 3-18
accounting structure
saving, 3-26
AGIS, 1-4
associated business entities, 4-5
B
Balancing
Intercompany, 5-2
Intracompany, 5-4
Index-2
Balancing API, 5-7
balancing segment value
assignments, 3-61
balancing segment values
assignments, 3-13
transaction processing, 3-13
updating, 3-17
using, 3-13
business entities
associated, 4-5
C
Canadian legal entities
definition access sets, A-15
Canadian legal entity example, A-11
Canadian shared legal entity
consolidation, A-14
ledger sets, A-14
Change Main Establishment page, 4-16
chart of accounts
designing, 2-12
legal entities, 3-14
checklist
Accounting Setup Manager, 3-6
conversion rules
changing, 3-57
Create Establishment page, 4-9
Create Legal Entity page, 4-6
Create Registration page, 4-14
D
data access sets, 6-2, A-6
data conversion levels
secondary ledgers, 3-67
definition access sets, 6-4, A-6
E
establishments
about, 4-3
creating, 4-9
updating, 4-11
examples
Accounting setup for Brazil, A-23
exclusive legal environment, A-16
Latin American exclusive legal environment,
A-21
Other Accounting Setup, A-26
U.S. management reporting, A-30
exclusive legal environment example, A-16, A-21
G
general ledger setup
See accounting setups, prerequisites
H
home page, 4-6
I
implementation guides, 1-2
Intercompany accounting, 5-1
intercompany accounts
Accounting Setup Manager, 3-65
Intercompany and Intracompany Balancing
Overview, 5-1
intercompany transactions, 1-4
Intracompany balancing, 5-1
Intracompany Balancing
Evaluation Order, 5-9
intracompany balancing rules
Accounting Setup Manager, 3-65
Intracompany balancing rules, 5-4
J
journal category
conversion, 3-53
journal conversion rule
example, 3-54
journal source
conversion, 3-53
jurisdictions, 4-4
searching for, 4-16
setting up, 4-17
L
ledger
secondary, 2-4
ledger options
Accounting Setup Manager, 3-30
ledger processing options
example, 2-3
Ledger Processing Options, 2-2
ledgers
consolidation
other accounting setups, 3-74
ledger sets, 6-1
Legal Addresses page, 4-16
legal authorities
creating, 4-18
updating, 4-18
legal authority, 4-4
legal entities, 3-12
See also Accounting Setup Manager
about, 4-1
accounting setups, 3-14
assigning in accounting setups, 3-23
balancing segment values
updating, 3-17
chart of accounts
designating the balancing segment, 3-14
creating, 4-6
defining using Accounting Setup Manager, 314
search pages, 4-6
updating, 4-13
updating in Accounting Setup Manager, 3-28
Legal Entities Details page, 4-12
Legal Entities page, 3-4
Legal Entity Configurator, 1-4
Legal Entity Identifer
generating, 4-5
legal entity pages, 4-5
home page, 4-6
M
management reporting example
U.S., A-30
N
North American shared legal environment, A-8
O
operating units
defining, 3-63
Oracle Advanced Global Intercompany System,
1-4
Index-3
Oracle General Ledger Security, 6-2
data access sets, 6-2
definition access sets, 6-4
organization
configuring as a legal entity, 4-11
configuring as an establishment, 4-11
Organization Details page, 4-11
Other Accounting Setup
consolidation example, A-26
P
pages
Accounting Options, 3-5
Accounting Setups, 3-5
Legal Entities, 3-4
prerequisites
accounting setups, 3-2
primary ledger
mapping to secondary ledger, 3-82
profile option categories
overview, B-1
profile options
overview, B-1
Profile options
XLE: Generate Legal Entity Identifier, 4-5
R
registration, 4-3
registrations
creating, 4-14
reporting currencies, 2-6
adding, 3-58
assigning to ledgers, 3-46
disabling conversion, 3-60
journal category conversion, 3-53
journal source conversion, 3-53
subledger level, 3-54
S
search pages, 4-6
secondary ledger, 2-4
secondary ledgers
Accounting Setup Manager, 3-66
adding, 3-79
consolidated reporting, 3-71
Index-4
deleting, 3-79
disabling, 3-79
management reporting, A-33
security
Canadian legal entities, A-15
U.S. legal entities, A-6
sequencing, 3-66
setup steps
primary ledger, 3-29
secondary ledger, 3-29
shared legal environment example, A-1, A-8
subledger accounting methods
define
See accounting setups, prerequisites
subledger accounting options
Accounting Setup Manager, 3-63
U
U.K. Accounting Setup examples, A-19
U.S. legal entities
data access sets, A-6
definition access sets, A-6
U.S. legal entities example, A-3
consolidation, A-5
U.S. shared legal environment, A-1
Update General page, 4-11, 4-13
Update Registrations page, 4-15
X
XLE: Generate Legal Entity Identifier profile
option, 4-5
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