Defining User

The prerequisite for creating the chart of accounts is to have the access capability to do the same. In order to achieve the same we will have to define a responsibility and assign it to a user.

Login to the Systems as Sysadmin

Select System administrator responsibility

On the System administrator menu Security -> User -> Define

User Name : Provide a User Name, this will be the login name

Password : Provide a password; the user will have to change the same on the initial login, unless the DBA has set otherwise.

Person : This field refers to the HR user that is created for the Employee. We shall take this up in a later session.

Password Expiration : Can be used as a security requirement. Can be controlled based on the number of access or on the number of days,

Effective date : Any date this user should be active from

Note : a USER once created cannot be deleted, it is only possible to end date the User.

Direct Responsibility : PAM General Ledger Super User

Effective date : Any date this responsibility should be available for the user.

Note : A Responsibility once assigned cannot be deleted, it is possible to end date the responsibility assignment. If the responsibility is end dated then the access is unavailable even if the responsibility is not end dated at the user end.

Audit Tip

• As an effective control it should be practiced to end date all the responsibility at the end of the Financial Year. So this will force a revaluation of the responsibility provided.
• Temporary responsibility assignments should be end dated with a shorter duration so that a revaluation/deactivation happens even if the track is not maintained.
• Temporary Users like contract users should have an end date equivalent to the contract expiry date, so that the compliance is maintained.

Project Study - Company Definition

Project Study

Business Requirement
Creation of the new business model, based on the Corporate Strategy aimed at diversifying the business. Currently the Business is one entity which has to be divided in to three. Oracle ERP has to be designed so that a corporate consolidation can be achieved.

Business Solution
Incorporate flexible and expandable chart of accounts

• focused to current mode of business requirement
• anticipating future requirements

Chart of Account Model

The Chart Of Accounts is based on the assumption that all companies have the same Accounting Segment, Currency & Calendar requirement. Accounting structure will use the Company segment as the balancing segment. Each company could have its own range of accounting segments. No segment will be used to capture values of multiple dimensions, eg. Department segment will not be used to capture values identifying Location. Each segment will have a unique meaning.

 Chart of Account Structure

 The chart of accounts will be defined as specified below.

 Company

This segment uniquely identifies each individual Entity in the Organization structure. This segment also will be used as the balancing segment.

Department
This segment uniquely identifies each individual department. Departments could be either common to companies or independent. A Numerical Value identifies a specific Department. Alpha numeric parent values will be used as group level identifies.

Location
Location identifies the location of the business activity

Natural Account
An account is used to identify a General Ledger transaction for a specific purpose. Accounts are the fundamental building blocks of Financial Transactions. Transactions are always associated with one or more accounts.

The Natural Account structure has to be designed on a hierarchical model consisting of parent, child and rollup groups.

Sub Account
A sub-account is an optional part of the accounting string that allows tracking of financial activity within a particular account. Sub-accounts are often used to help track numbers when several different activities may be funded by the same account. For example a marketing campaign can constitute of multiple marketing expenses. Since all of the activity is still captured within a single account, it is easy to report on the finances of the overall account. Sub-Accounts acts as an attribute of the account to which it reports The Sub account will constitute list of values that would be defaulted based on the Natural Account value.

 Project

The use of this code allows tracking of Transactions on project basis. This allows financial reporting based on projects.

Inter Company

This segment will be used to identify transaction used as intercompany transactions

Future
This segment is maintained for future expansion if any.

Introduction

To start with let me define the Goal, The Goal is to put all that I experience to the future generation so they spend less time for the basics & invent a new wheel than reinvent the same.

A lot of information is collected for the process from the word wide web, so resemblance to the process patterns are possible, BUT none of the below will be a cut & paste but a real output of action that is performed.


Anyone and Everyone is invited to correct, advice & criticized, because then I will achieve more.

SO let me begin the Journey…..


Modules that are envisaged to be addressed

• General Ledger
• Accounts Receivable
• Accounts Payable
• Oracle Purchasing
• Oracle Inventory
• Order Management
• Cash Management
• Fixed Assets
• iStore
• Projects

These may not be in the order specified but in the order that I could achieve.

To begin the implementation the basic requirement is to have an idea on how we want to define the Company. So let us first define the requirement for the Company structure and the chart of accounts as a start.