Saturday, January 31, 2015

Create Primary Ledgers

Ledgers – Ledgers are the financial reporting entity within organization. It is a unique combination of 3 components. In R12 a fourth component is introduced that gives flexibility to control sub ledgers (OM/AR/AP etc.) accounting.
  1. Chart of Account
  2. Currency
  3. Calendar
  4. Sub Ledger Accounting
All the accounting entries are captured in Ledgers. In 11i its called Set of Books having 3 components (Chart of Account, Currency and Calendar).
Business Group - OAF
If we look at the structure of our implementation we need 3 Ledgers because the currency is different in all 3 countries. The thumb rule is that if any of the 3Cs (Chart of Account, Calendar and Currency) is changing we need a new ledger. Lets get going with Ledger creation. Make sure to use the custom responsibility that you created earlier while creating Business Group.
Before you start setting up the ledger you should have 3Cs created. If you already have it created then proceed else follow the below post to create and configure 3Cs.
Navigate to – XX GL Super User –> Setup –> Financials –> Accounting Setup Manager –> Accounting Setups
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This will open a web page. Click on Create Accounting Setup.
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First setup is to create / add legal entities. I prefer to skip this step and Create Legal Entities separately and add them later. So click on Next.
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Enter the required Details :
Name : OAF_Corp_USD_P
Chart of Accounts : OAF_CORP_COA
Accounting Calendar : OAF_ACC_CAL
Currency : USD

Click Next and Review the details. If it looks fine click on Finish.
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Once finished system gives you message that Accounting Options are not setup, only the structure is created now. Before we start using the Ledger we need to complete the Accounting Options setup.

Click on Define Accounting Options.
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Click on Image 167-UpdateIcon[8] against Ledger Options.
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Validate the details and click on Next
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In the next screen, choose the Retained Earning Account. While we define the accounting structure we should have defined all these account. Since for my Chart of Account ‘Dynamic Insert’ is enabled I create the account on the fly.
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If you want you can create and enter accounts for Suspense Account and Rounding Differences Tracking Account. I opted to enter those later. In the next screen update Advanced Options as you needed for your configuration.
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Since I used intercompany accounts while defining my accounting structure, its asking to complete Intercompany Balancing Rule. Return to Accounting Options to complete rest of the configuration.
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The first thing I did is to add Legal Entity to the Ledger. Click on Add Legal Entity button and select the correct legal entity for the ledger. Click on Apply to add the legal entity to the ledger. It will again take you to the Ledger Option.
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Now its turn to create and add operating units. Click on Image 167-UpdateIcon[12] against Operating Units. Enter the Name and Shot Code for the Operating Unit. Under the assignment section add the Business Group and Default Legal Context. This will create the hierarchy that this operating units is under which business group and Legal entity.
Once done click on Apply
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If you don’t want to add more operating unit under this ledger then click on Complete.
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Click on Image 167-UpdateIcon icon against each heading complete the details. e.g
- Reporting Currencies
- Balancing Segment Value Assignment
- Intercompany Accounts
- Intracompany Balancing Rules
- Sequencing
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Once done Status against each would be Image 169-Icon. Once its there click on complete and Yes to finish.
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This will submit a concurrent program that will complete the setup.
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Requery the Ledger that we just create to validate every thing looks fine. What I see here is that I have missed Balancing Segment Value for the legal entity. Lets add it. Click on Update Balancing Segment Value.
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Choose the correct Balancing Segment.
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Click on Apply.
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Update the Intercompany accounts and complete it. Once done it looks all good.
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Similarly create the other two ledgers.
Now all the ledgers are created and configured.
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Setup the profile option “GL Ledger Name” for the responsibility to be used with this Ledger.
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Since we created Operating Unit while creating the Ledgers we have to run the concurrent Program “Replicate Seed Data” against each operating unit before we start to use it.

1 comment :

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