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Implementing the Chart of Accounts for Oracle General Ledger

Discussion in 'General' started by Sadik, Aug 24, 2008.

  1. Sadik

    Sadik Community Moderator Forum Guru

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    Part 1:

    Chart of Accounts is the first of what apps consultants popularly call the 3 C’s of Oracle Applications. FYI – the second C is for currency and the third is for Calendar.

    In this post we will talk about, what is perhaps the most important aspect of an oracle apps implementation and the first thing that you will invariably end up doing.

    Implementing the Chart of Accounts for Oracle General Ledger.

    I preparing this guide I have used points from the Oracle GL user’s guide and followed it up with my screenshots and explanations where I felt necessary. Portions in quote are from Oracle general ledger user guide.

    Pre-setup: The whole point of chart of accounts is getting the final structure of your company’s accounts. For example, your company’s inventory account may look like
    01.110.50001.10002.000
    Each segment value before the dot has a particular meaning. 01 may be your company and 110 it’s branch and so on. So what we set out to do while defining a chart of accounts is getting the structure of the accounting flexfield and setting up the related parameters. So the most important point is to analyze the organizational structure as your accounting structure will mirror that for all your accounting and reporting needs.
    Setup:

    To setup value sets, go to

    General Ledger Super User->setup->Financials->Flexfields->Validation->Sets

    1. Defining value sets.

    Refer the screenshot below for an example.


    [​IMG]

    2. Defining the Account structure

    This is the most important part. Here you define your account structure into segments. Go to General Ledger Super User->setup->Financials->Flexfields->key->Segments and query for General Ledger as application and Accounting flexfield as the Flexfield title. Unfreeze (if it is frozen) and enter a code name for your accounting structure, title and Description and click on segments

    [​IMG]


    You will have had to create all the value sets in the previous step which you will need to associate with each segment as shown above.

    Once you are done entering the segment information, click on flexfield qualifier and designate one of your segments as the natural account segment and another as the balancing segment. You can optionally designate a cost center segment and/or intercompany segment. This step is very important and easy to miss. When in my first implementation, I missed clicking on flexfield qualifiers and spent an hour figuring why nothing would work!

    3. Define Rollup groups:

    You have the option of defining rollup groups to create summary accounts whose summary balances you can review.

    continued in part 2
    [BREAK= Part 2]
    Part 2

    4. Define your account segment values.


    Go to

    General Ledger Super user->Setup->Financials->Key->Values and find Accounting Flexfield in Key Flexfield filter and enter values for all the newly created segments.
    [​IMG]


    5. Define Security

    If you want to restrict your users or control access to certain segment values, go to

    General Ledger Super user->Setup->Financials->Security->Define and enter the accounting flexfield title and your account structure name and enter whatever security rule you want on your segments.


    [​IMG]


    6. Define cross–validation rules

    The following quote explains it all.

    The navigation path is

    General Ledger Super User->Setup->Financials->Flexfields->Key->Rules

    Select your accounting flexfield structure and enter an include/exclude rule


    [FONT="][​IMG]

    Continued in Part 3
    [/FONT]

    [BREAK= Part 3]
    Part 3

    7. Defining or enabling descriptive flexfields.

    General Ledger has 81 DFF in 11i. The definition details of these DFF’s are outside the scope of this article. However for your benefit an excel file is in the attachments which lists all the 81 DFF’s

    The navigation path for defining the DFF is

    Oracle General Ledger Super User->Setup->Financials->Descriptive->segments

    Query for General Ledger as the application and query your desired DFF.

    8. Defining account shorthand aliases

    Account aliases let you use a short word for your accounts, which makes them easy to remember and use in all fields where you need to enter an account.

    To define Aliases
    Oracle General Ledger Super User->Setup->Financials->Key->Aliase

    Query your accounting flexfield structure and enter shorthand aliases for your accounts as shown in the screen shot below.

    [​IMG]


    9. Defining summary accounts

    Summary accounts create and maintain summary balances for quick reporting and online inquiry of summarized balances.

    Oracle General Ledger Super User->Setup->Accounts->Summary

    [​IMG]


    10. Create account combinations.

    We are almost done by now. All that is now left is to actually enter all our accounts in General Ledger

    Go to

    Oracle General Ledger Super User->Setup->Accounts->Combinations and enter your account and type (Asset/Liability). Use effective To to disable an account. Note if you disable an account make sure you disable it’s aliase too.

    [​IMG]


    So That’s it, we are done!!! The Chart of accounts for your organization is setup. You can now proceed to define the calendar and currencies and rest of the General Ledger setup.
     
    Melvin R. Grijalba likes this.
  2. selvaspskj

    selvaspskj Active Member

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    Very nice Article... its good :)
     
  3. amitsarkar

    amitsarkar Active Member

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    Nice info...thanks
     
  4. Hi,

    Thanks for post.

    Regards
    Nitin
     
  5. Jay78bhupats

    Jay78bhupats Guest

    This one is really good
     
  6. great post
     
  7. iamsonal

    iamsonal Forum Advisor

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    great post!!!
     
  8. erpzhao

    erpzhao Active Member

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    Wow, this great!
    Thanks very much!