R12 GL Setup - Implementation Considerations

on Monday, May 17, 2010

Chart of Accounts

Share the same value set for the balancing segment across charts of accounts

Determine the Number of Legal Entities to Assign in an Accounting Setup based on

ØStatutory and legal requirements for legal entity accounting, such as document sequencing,
…..tax accounting, and intercompany accounting
ØBusiness Needs

Types of Accounting Setups

Accounting Setup with No Legal Entity (LE)

ØCan be used for GL only implementations
ØUsed for a business need where no legal entity is required or management reporting
ØCannot maintain legal entity context in subledger transactions
ØCannot set up Operating Units
ØCannot use Advanced Global Intercompany Accounting System

Accounting Setup with One LE

ØCannot perform lump sum payments across legal entities in AP

Accounting Setup with Multiple Les

ØCannot perform autonomous document sequencing and tax that is unique per legal entity
ØConsider local laws that prohibit commingling transactions with multiple Les

Choosing the Ledger to be the Corporate Representation

Best practice is to choose the primary ledger to be the corporate representation in the local currency:

ØProvides the most detail
ØAllows you to assign a subledger level reporting currency if you want to maintain a detailed
…..additional currency representation

Note:
Secondary Ledgers cannot have subledger level reporting currencies assigned

Legal Entity (LE) Accounting

LE above Ledger

If you require multiple primary ledgers to perform accounting for the same legal entity, you must create dummy legal entities because a legal entity can only be assigned to one accounting setup, not multiple accounting setups

LE = Ledger

If legal entity equals the primary ledger, you may choose not to assign balancing segment values to the legal entity

LE Below Ledger

Legal entities should be represented by one or more balancing segment values

Balancing Segment Value (BSV) Assignment

ØNo BSVs Assigned = All values available for data entry
ØAssign specific BSVs to LEs at any time
ØBehind the scenes, BSVs assigned to LEs are automatically assigned to the ledgers
ØNo BSV validation performed across accounting setups
ØBSV assignment is required for Intercompany Accounting
ØOptionally assign BSVs to the ledger for non-legal entity related transactions, such as
…..management adjustments
ØBefore BSVs can be assigned to the ledger, they must be assigned to LEs first, if used

Reporting Currencies (RC)

ØJournal and Subledger level RCs act like regular ledgers
ØTo automatically populate historical data, run the Create Opening Balance Journals in
…..Reporting Currency program.
ØConversion for subledger sources that uptake SLA are disabled for Subledger Level SLs
ØWhen posting a journal to the PL, journals for the RC will be automatically created/posted in the
…..same batch. Ensure same open periods for source ledger and RC
ØData access set should include same write access to source ledger and Reporting Currencies
…..to prevent posting errors

Subledgers that uptake SLA (Assets, Budget Execution, Cash Management, Cost Management, Inventory, Oracle Loans, Payables, Payroll, Property Manager, Purchasing, and Receivables)

Secondary Ledgers (SL)

ØCan be added at any time with an unlimited number allowed
ØTo populate historical data, use Consolidation (GCS)
ØSecondary Ledgers cannot have Subledger Level RCs assigned
ØCOA Mapping required if COAs are different between the PL and SL. COA Mapping can be used if the
…..COAs are the same except for Subledger Level SLs
ØConversion for subledger sources that uptake SLA are disabled for Subledger Level SLs

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