Creating The Chart Of Accounts Segments

The Chart of accounts consists of 2 units. An accounting Flexfield that is again sub divided in to individual value set.

The COA structure that we designed can be considered as the accounting Flexfield & individual identities inside the design are the value sets. So we have to do a reverse approach. Create the Value sets and then create the accounting Flexfield.

We will create the above segments as value sets. As discussed in the Previous Post.

Company

Department

Location

Account

Sub Account

Note : Since Sub Account is a dependent Account for the Accounting segment the Validation type is set as Dependent & the Dependent Value set is assigned

Inter Company

Future

Enable Currency

All the Currencies defined by the ISO Organization is predefined in Oracle Apps.
Even though only USD is enabled.
So in case we require using any other currency then the currency has to be enabled.
The define currency option also allows us to enable and disable a currency & define a currency that is not in the ISO Standards.

General Ledger Setup -> Setup -&gt-> Currencies -> Define

USE the Find Button (as shown above) to query & select the required currency.

  

Move to the Last column & enable the currency enable check Box.

Save the form using either the Save icon or CTRL + S Key Combination

 Additional Information.

Precision is the number of decimals that are used for regular transaction while extended precision is the number of decimals to be used at the time of calculation

You can enable the currency for a fixed period by entering a start date that is future, and also you can end date a currency to disable the access with a predefined date.

Entering a start date will not enable a currency unless the enabled flag is enabled, but entering an end date with the enabled flag will disable the currency.

Creating Value Set

Login to the system as the new user as created. Change the password since this is the first login.

Select the Responsibility

Setup -> Financials -> Flexfields ->Validations->Sets

Value Set Name : Provide the segment name that is required eg. PAM_Company

List Type :

• 
  
   List of Value : If the value set is between 10 to 200 items then select this feature. The user will not see a list of values in the self-service application.
• 
  
  Long List of Values : If the value set is more than 200 items then select this feature. This will require the user to enter a partial value for the list to be populated. If self-service applications are used then don’t use this option since it will not populate. Do not enable this feature for a non-validated value set.
• 
  
  Poplist : select poplist if the list of values are required in self-service application

Security :

• 
  
  No Security : No security feature is enabled for this value set.
• 
  
  Hierarchical Security : Any security rule that is applied to the parent values applied to the child values since this feature combines value security & value hierarchy.
• 
  
  Non-Hierarchical Security : Security is enabled, but any security rule applied to the parent will not flow to the child.

Format Type : Format to be used for the segment Value. Valid entries are Char, Date, DateTime, Number, Standard Date, Standard DateTime, and Time.

Additional formatting information like if the vale should only be numbers or only characters and what should be the range, if to left/right justify the value to suit the maximum size as well as the maximum size can be specified.

Note : Translatable Independent and Translatable Dependent value sets must have the Char format. The maximum size for Translatable Independent and Translatable Dependent value set values is 150. You cannot use the Numbers Only feature or the Right-Justify and Zero-fill feature with translatable value sets

Value Validation : There are several validation types that affect the way users enter and use segment or parameter values

• None (not validated at all)
• Independent
• Dependent
• Table
• Special (advanced)
• Pair (advanced)
• Translatable Independent
• Translatable Dependent

 Note : Validation type of an existing value set cannot be changed since the changes affect all Flexfields and report parameters that use the same value set. The Accounting Flexfield only supports Independent, Dependent, and Table validation (table validation cannot have any additional WHERE clauses.

 None

 None type value set is used in order to allow users to enter any value so long as that value meets the value set formatting rules and does not exceed the maximum length defined for your value set. It should also comply to the format requirements for that value set

The None value set is not validated which means a segment that uses this value set does not provide a list of value. A segment that uses this value set (that is, a non-validated segment) cannot use flexfield value security rules to restrict the values a user can enter.

 Independent

 An Independent value set provides a predefined list of values for a segment. These values can have an associated description but will not be dependent on the value of any other segment.

  

Table

 This provides a predefined list of values like an independent set, but its values are stored in an application table. You define which table you want to use, along with a WHERE cause to limit the values you want to use for your set. Typically, you use a table-validated set when you have a table whose values are already maintained in an application table (for example, a table of vendor names maintained by a Define Vendors form). Table validation also provides some advanced features such as allowing a segment to depend upon multiple prior segments in the same structure.

Dependent

 A dependent value set is similar to an independent value set, except that the available values in the list and the meaning of a given value depend on which independent value was selected in a prior segment of the Flexfield structure. You can think of a dependent value set as a collection of little value sets, with one little set for each independent value in the corresponding independent value set. You must define your independent value set before you define the dependent value set that depends on it. You define dependent values in the Segment Values windows.

EG.
In our scenario we have account and sub account. When we select bank account as natural account, then the sub account valid values should be A bank, B Bank & C Bank etc. When we select Equipment’s as the natural account the sub account valid values should be Computers, Printers, Plotters etc.

Sequence for creating the Dependent Value set

1. Create your independent value set first  
2. Create your dependent value set, specifying a default value  
3. Define your independent values  
4. Define your dependent values

Special & Pair Value set

 Special and pair value sets provide a mechanism to allow a "Flexfield-within-a-Flexfield". These value sets are primarily used for Standard Request Submission parameters. You do not generally use these value sets for normal Flexfield segments.

Eg. A part number segment could be made up of three more segments like Category Item & source.

Translatable Independent and Translatable Dependent

 A Translatable Independent value set is similar to Independent value set in that it provides a predefined list of values for a segment. However, a translated value can be used.

A Translatable Dependent value set is similar to Dependent value set in that the available values in the list and the meaning of a given value depend on which independent value was selected in a prior segment of the Flexfield structure. However, a translated value can be used.

Flexfield Value Security cannot be used with Translatable Independent or Translatable Dependent value sets.

For format validation, translatable value sets must use the format type Char. The maximum size must be no greater than 150. The Number Only option and the Right-justify and Zero-Fill Numbers option cannot be used with translatable value sets.

Range Flexfields cannot use Translatable Independent or Translatable Dependent value sets.

You cannot create hierarchies or rollup groups with Translatable Independent or Translatable Dependent value sets.

Creating the Chart of Accounts Flexfield

Setup -> Financials -> Flexfield -> Key -> Segments

Select the Find Icon to query

Select General Ledger Accouting Flexfield

Click on the Inside grid and select the new record Icon.

Fill in the following details

Code             :   PAM_Accounting

Title              :   PAM_Accounting

Description   :   Accounting Flexfield for PAM Company

Click on the Segments Button & Fill in the details as below.
 

While moving between rows there will be a warning like below click OK and Proceed. if required then you can open the segment and reduce the Prompts Display at the Right Left hand bottom to fit in the size of the segment defined.

Select the Company Row and Click on open button & Enable the security enabled field, else the Flexfield security rules will not function.

Repeat the step for all the rows.

Select the Company Row and Click on Flexfield Qualifier Button.

Check Mark the Balancing Segment.

Repeat the Operation for

• 
  
  Department           : Cost Center Segment
• 
  
  Account                : Natural Account Segment
• 
  
  Intercompany        : Intercompany Segment

Save the Form & Exit

On the key Flexfield window enable the following

• Allow dynamic insert, If this is not enabled each valid account code combinations should be predefined before they can be used.
• Cross Validation Rules, If this is not enabled the cross validation rules for allowed accounting combinations will not work.

 Save the Form

•  Enable Freeze Flexfield Definition. A warning message will appear where ok can be selected.

Click on the Compile button.

View the status of the compile background request by selecting the View option from the menu and request , Find.

Defining Responsibility

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

Create a New Responsibility.


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

Responsibility Name : PAM General Ledger Super User

Application : General Ledger

Responsibility Key : PAM_GL_SU

Effective date : Any date this Responsibility should be active from

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

Data Group Name : Standard

Data Group Application : General Ledger

Menu : GL_SUPERUSER.

Note : This menu can be a customized one which we will see later.

Request Group Name : GL Concurrent Program Group.

Note : This identifies the report group that is available for the responsibility by default.

Request Group Application : General Ledger

Note : The rest of the responsibility definition would be discussed when we talk about security and how to define in later sessions.

Defining The Calendar

General Ledger -> Setup -> Financials ->Calendars -> Types

 

Oracle General Ledger provided standard period types, but we can create our own period types to suit the companies operational and reporting requirements. Certain companies use 14 periods calendar where the 1st & 13th period would be an adjustment period and have the first day & last day of the financial year as the period range respectively.

 

The 13th period is used for yearend closing activity, while the 1st period is used for year opening balances.

 

In oracle General Ledger each ledger has a dependent Accounting Calendar.

 

Note: It is identified that if you use different calendars with non-identical periods for actual and budget/Forecast , FSG reports will have problem retrieving data.

 

general Ledger is equipped to create actual closing journals for year-end and other closing periods. This functionality can be secured by utilizing the data access sets feature. The data access set controls the access to those ledgers where full read and write access is assigned.

 

To process year-end closing journals

• Set up the last day of the fiscal year as an adjusting period.
• Set up the first day of the new fiscal year as an adjusting period.
• Ensure the period that is closed is an Open period.
• Complete all routine accounting before the last day of the year.
• Post all adjustments and closing entries in the adjusting period.

 In the last adjusting period of the fiscal year you want to close:

• Run the Create Income Statement Closing Journals process to transfer income statement year-end account balances of your revenue and expense accounts to the retained earnings account.
• Run the Create Balance Sheet Closing Journals process to close and zero out the year-to-date balances of all balance sheet accounts: assets, liabilities, and owner's equity.

 

Note: The Data Access Set assigned to your responsibility controls whether or not you can run the closing journals programs against a ledger

 

In the first adjusting period of your new fiscal year:

• Run the Open Period program to open the Opening adjustment period of the New Year.
• Reverse and post the balance sheet closing journals to reopen those balances.

The Following details are used to define calendar type

 

Period Type           : PAM_Perod
Periods Per Year   : 13
Year Type              : Calendar
Description            : 13 Period inclusive of one year end adjustment Period

 

Note:

•  If you plan to close your balance sheet using the “Create Balance Sheet Closing Journals” program, define enough accounting periods for your period type to allow for two adjusting periods
• Choose Year type as Calendar to use the year in which an accounting period begins for the system name.
• Choose Fiscal to use the year in which your fiscal year ends for the system name.

IF for a financial year that spans from 01-Jun-2009 to 31-May-2010 , If Year type is calendar the Jun Period will be automatically denoted as Jun-09 by oracle because Jun starts on 2009, while if it is fiscal year the Jun period will be denoted as Jun-10 because the Financial year ends on 2010.

 

Defining the Calendar

Details that are used for defining the calendar is as below.

Calendar Name : PAM_2010
Description       : PAM Calendar for year 2010
Enable Security : This is an optional feature.

Note:

Access to calendar definition can be Controlled using definition access sets. Definition access sets are optional security feature that allows control on, view, and modify access to General Ledger definitions


For Accounting Calendar view and modify access is possible.


View Access    : Allows the privileged users to View & Modify the Calendar Definition.
Modify Access : Allows the privileged users to View & Modify the Calendar.


How to define definition access set will be covered as a spate topic.

 

Note: The Adjustment Period has the Adjustment Column check marked.

Save the Form either by selecting Save Icon or by using the CTRL+S Shortcut. Try to Close the form and the following message will appear.

Select current and the compilation will start on the concurrent manager.

View the status of the request by selecting view Requests to check the Successful completion of the compilation

Defining Accounting Calendar

General Ledger -> Setup -> Financials ->Calendars -> Types


Oracle General Ledger provided standard period types, but we can create our own period types to suit the companies operational and reporting requirements. Certain companies use 14 periods calendar where the 1st & 13th period would be an adjustment period and have the first day & last day of the financial year as the period range respectively.

The 13th period is used for yearend closing activity, while the 1st period is used for year opening balances.

In oracle General Ledger each ledger has a dependent Accounting Calendar.

NOTE: It is identified that if you user different calendars with non-identical periods for actual and budget/Forecast , FSG reports will have problem retrieving data.

general Ledger is equipped to create actual closing journals for year-end and other closing periods. This functionality can be secured by utilizing the data access sets feature. The data access set controls the access to those ledgers where full read and write access is assigned.

To process year-end closing journals

Set up the last day of the fiscal year as an adjusting period.

Set up the first day of the new fiscal year as an adjusting period.

Ensure the period that is closed is an Open period.

Complete all routine accounting before the last day of the year.

Post all adjustments and closing entries in the adjusting period.



In the last adjusting period of the fiscal year you want to close:

Run the Create Income Statement Closing Journals process to transfer income statement year-end account balances of your revenue and expense accounts to the retained earnings account.

Run the Create Balance Sheet Closing Journals process to close and zero out the year-to-date balances of all balance sheet accounts: assets, liabilities, and owner's equity.

NOTE: The Data Access Set assigned to your responsibility controls whether or not you can run the closing journals programs against a ledger

In the first adjusting period of your new fiscal year:

Run the Open Period program to open the Opening adjustment period of the New Year.

Reverse and post the balance sheet closing journals to reopen those balances.