GL Ledger Types

7/25/2019 GL Ledger Types

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Contents1. Some concept reviews.....................................................................................2

Legal entity....................................................................................................2

Ledger.............................................................................................................2

Ledger Processing Options..........................................................................2

Multiple accounting representations.........................................................3

2. Types of ledgers................................................................................................3

3. Conversion levels..............................................................................................5

. !"ere are transaction accounting entries created#..................................5

$. Secondary Ledgers...........................................................................................6

%. &eporting Currencies.....................................................................................10

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a""ount! "ash basis a""ounting! and the ledger "urren"y balan"ing

a""ount

Multiple accounting representations+(ra"le ubledger ,""ounting allows a single #nan"ial transa"tion to be

siultaneously booked in ulti$le ledgers! ea"h o whi"h is a dierent

a""ounting $resentation. , dierent a""ounting re$resentation is when

there is a dieren"e in one or any "obination o the ledgers ;

a""ounting attributes+

Curren"y

Calendar

,""ounting ethod

Chart o a""ounts

Figure 1 Subledger Accounting

2. Types of ledgers

ations ty$i"ally have one ore ore subsidiary

"o$anies! as legal entities! in the "ountries theyre $resent. 7ierent

"ountries has dierent a""ounting "onte&ts! in"luding a""ounting systes!

ta&ation! and legislation and regulation "o$lian"e.

In (ra"le *eneral edger! (n (ccounting Setupde#nes the a""ounting

"onte&t or one or ore legal entities /or or a business need that doesnt

involve legal entities at all. , legal entity "an store its #nan"ial data in

ulti$le ledgers /one o the is the riary ledger! and the other ledgers are

e"ondary ledgers and? or 'e$orting "urren"ies "reated during your

a""ounting setu$. 8he a""ounting "onte&t deterines the ollowing o the

legal entitys $riary ledger+

C"art of accounts+ (ne legal entity re@uires a si&=segent "hart o

a""ounts and another re@uires only a our=segent "hart o a""ounts.

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(ccounting calendar+ (ne legal entity uses a ;=;=5 "alendar and

another uses a onthly "alendarA or one legal entity has a dierent #s"al

year end than another.

Primary currency+ egal entities o$erate in dierent "ountries re@uiring

the to use their own lo"al "urren"ies.

Su)ledger accounting met"od+ egal entities o$erate in dierent"ountries or industries that have dierent a""ounting standards.

Ledger processing options+ egal entities o$erate in dierent

industries! su"h as retail and #nan"ial servi"es! and re@uire dierent

ledger $ro"essing o$tions! su"h as aintaining average daily balan"es or

legal entities in the #nan"ial servi"es industry.

Figure 2 Accounting Setup Manager

(ne Primary Ledgeris "reated or one a""ounting setu$! and hen"e one

a""ounting "onte&t. I you need another $riary ledger! do another

a""ounting setu$. Bowever! you "an o$tionally "reate an unliited nuber o

Secondary Ledgers/or su$$leentary ledgers! tered by ysel and

asso"iate the with the $riary ledger in an a""ounting setu$. e"ondary

ledgers are "reated as additional a""ounting re$resentations o the $riary

ledger.

&eporting Currenciesis the last ty$e o ledger and is used when the"urren"y attribute is the only dieren"e ro the $riary ledger. 8heyre also

"reated and asso"iated with the $riary ledger in an a""ounting setu$

$ro"ess. ,s ar as a dierent a""ounting re$resentation due to any dieren"e

in the our a""ounting attributes! is "on"erned! a re$orting "urren"y also

un"tions as a su$$leentary ledger! a dierent a""ounting re$resentation

%ust like the se"ondary ledger ty$e! where the "urren"y is the dieren"e. ,n

additional $oint is that a 'e$orting Curren"y "an be asso"iated with a

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se"ondary ledger! or in other words! use a se"ondary ledger as its sour"e

ledger.

,s a general rule! a legal entity in a $arti"ular a""ounting "onte&t re@uires ase$arate $riary ledger.


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servi"e "entrally "reates both the subledger and general ledger entries

ollowing the de#ned subledger a""ounting rules /a""ounting ethod.

*eneral Ledger Posting "reates the %ournal entries or all other

transa"tions that do not integrate with ubledger ,""ounting! in"luding

anual %ournal entries and lo"al subledger %ournals i$orted ro

subledger $rodu"ts.

8he last se"tions are detailed e&$lanation on e"ondary and 'e$orting

Curren"y ledger ty$es. I will show you the "onversion levels and how and by

what $rogra a""ounting entries are "reated.

/I adit that your advi"e regarding non=(ra"le reeren"es is very hel$ul. I

use other reeren"es to veriy y understanding o (ra"le guides

$. Secondary Ledgerse"ondary ledgers re$resent the $riary ledgers a""ounting data in another

a""ounting re$resentation that diers in one or ore o the ollowing ways+ "hart o a""ounts

a""ounting "alendar?$eriod ty$e "obination

"urren"y

subledger a""ounting ethod

ledger $ro"essing o$tions

Ese se"ondary ledgers or su$$leentary $ur$oses! su"h as "onsolidation!

statutory re$orting! or ad%ustents or one or ore legal entities within the

sae a""ounting setu$.

)or e&a$le! use a $riary ledger or "or$orate a""ounting $ur$oses thatuses the "or$orate "hart o a""ounts and subledger a""ounting ethod! and

use a se"ondary ledger or statutory re$orting $ur$oses that uses the

statutory "hart o a""ounts and subledger a""ounting ethod. 8his allows

you to aintain both a "or$orate and statutory re$resentation o the sae

legal entitys transa"tions in $arallel.

,ssign one or ore se"ondary ledgers to ea"h $riary ledger or an

a""ounting setu$. 8he se"ondary ledgers assigned "an only $eror the

a""ounting or the legal entities within the sae a""ounting setu$.

I an additional ledger is needed to $eror a""ounting a"ross legal entities

or ledgers in dierent a""ounting setu$s! use a ledger in an a""ounting setu$

with no legal entity assigned. 8his "an be used or ulti$le $ur$oses! su"h as

$eroring anageent re$orting or "onsolidation a"ross ulti$le legal

entities.

+ata conversion levels'

- 8he ollowing conversion rulesare used to "onvert data ro the

$riary ledger to the se"ondary ledger+

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Chart o ,""ounts Conversion+ I the se"ondary ledger uses a

dierent "hart o a""ounts ro the $riary ledger! a "hart o

a""ounts a$$ing is used to $rovide instru"tions or a$$ing

a""ounts or entire a""ount segents ro the $riary ledger to

the se"ondary ledger.

Calendar Conversion+ I the se"ondary ledger uses a dierent

a""ounting "alendar ro the $riary ledger! the %ournal

ee"tive date deterines the "orres$onding non=ad%usting

$eriod in the se"ondary ledger.

Curren"y Conversion+ I the se"ondary ledger uses a dierent

"urren"y ro the $riary ledger! "urren"y "onversion rules are

re@uired to instru"t the syste on how to "onvert data ro the

"urren"y o the $riary ledger to the "urren"y o the se"ondary

ledger.

:ournal Conversion /Esed by *eneral edger osting only+ 8o

sele"t the %ournals or transer to the se"ondary ledger based on

%ournal sour"e and "ategory "obinations. 8he *eneral edger

osting $rogra uses these rules to deterine whi"h %ournals to

autoati"ally transer to the se"ondary ledger during $osting.

- Fe have #ve "onversion level+

Su)ledger Level Secondary Ledgers+

8he subledger level se"ondary ledger aintains an

additional a""ounting re$resentation o the su)ledger

,ournals!,ournal entries! and )alances.

8he subledger level se"ondary ledger is aintained using

both Su)ledger (ccountingand the *eneral Ledger

Posting$rogra.

9y assigning two dierent subledger a""ounting ethods

to the $riary and se"ondary ledger! you "an

siultaneously and se$arately/no conversion at all

a""ount or the sae transa"tion in both ledgers.

Fhen entering subledger transa"tions using (ra"le#nan"ial subledgers /or non=(ra"le sour"es via ),B that

integrate with ubledger ,""ounting! ubledger

,""ounting autoati"ally generates the a$$ro$riate

subledger and general ledger a""ounting entries to both

the $riary and se"ondary ledgers in *eneral edger

based on the a""ounting rules de#ned or a $arti"ular

subledger a""ounting ethod.

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-ournal Level' -ournal Conversion &ules'

9y deault! the ollowing ty$es o %ournals are re$li"ated to

the se"ondary ledger using *eneral edger osting! not

ubledger ,""ounting+o %ournals "reated by (ra"le subledgers that do not

use ubledger ,""ountingo anual %ournal entries entered in the $riary

ledgero %ournals ro s$readsheets or non=(ra"le systes

that were entered via the $riary ledgers *

Intera"e table

4a"h tie you $ost these %ournals in the $riary ledger!

they are autoati"ally $ro$agated to the subledger level

se"ondary ledger! unless you de#ned %ournal "onversion

rules to e&"lude these %ournal sour"es ro beingtranserred to the se"ondary ledger.

9y deault! %ournals that use the ollowing %ournal sour"es

are not transerred to the subledger level se"ondary

ledger+o


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dieren"e verbally to transer the $riary ledger

balan"es to this se"ondary ledger.

I the balan"e level se"ondary ledger uses a dierent

"urren"y ro the $riary ledger! use *eneral edger

Consolidation to transer balan"es from t"e primary

ledger/s )alance level reporting currencyto the

balan"e level se"ondary ledger. 8his balan"e level

re$orting "urren"y uses the sae "urren"y as the

se"ondary ledger and re$resents the translatedbalan"es

o the $riary ledger.

(d,ustments Only level' 8he ad%ustents only se"ondary ledger is an incomplete

accounting representation thatonly"olds

ad,ustments! anual ad%ustents! or autoated

ad%ustents "reated by ubledger ,""ounting.

Create ad%ustents as ollows+

o 8o "reate anual ad%ustents! enter anual

%ournal entries dire"tly in the se"ondary ledger.o 8o "reate autoated ad%ustents using ubledger

,""ounting! assign a subledger a""ounting ethod

to both the $riary and se"ondary ledger and

de#ne ubledger ,""ounting rules t"at transfer

only t"e su)ledger accounting ad,ustmentto

this ad%ustents only se"ondary ledger.

9y itsel! this ad%ustents only se"ondary ledger does notre$resent the "o$lete a""ounting $i"tureA it only holds

the ad%ustents or the transa"tions "ontained in its

asso"iated $riary ledger. Ese a ledger set to "obine the ad%ustents only

se"ondary ledger with the $riary ledger to obtain a

"o$lete se"ondary a""ounting re$resentation that

in"ludes both the transa"tional data and the ad%ustents.

8hen re$ort on the ledger set using *eneral edgers

)inan"ial tateent *enerator /)*! whi"h autoati"ally

suari>es data a"ross ledgers in a ledger set.

%. &eporting Currencies'e$orting "urren"ies e&$ress the a""ounting in your $riary and?or

se"ondary ledgers in an additional "urren"y re$resentation. Enlike se"ondary

ledgers! re$orting "urren"ies "an only dier by "urren"y ro their sour"e

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They must share the same chart of accounts, accounting calendar/period

type combination, subledger accounting method, and ledger processing

options as their source ledger (primary or secondary ledger).

'e$orting "urren"ies "an be aintained at three dierent "urren"y

"onversion levels+

Su)ledger+


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s$e"iy a target "urren"y! the translated balan"es are refe"ted in

the balan"e level re$orting "urren"y.

I a balan"e level re$orting "urren"y is not assigned to the ledgers

in the a""ounting setu$! a balan"e level re$orting "urren"y is

autoati"ally "reated the #rst tie 8ranslation is run. 8he nae o

the balan"e=level re$orting "urren"y is the sae as its sour"e

ledger e&"e$t its "urren"y "ode! su"h as /E7! is a$$ended to the

end o its nae.

8he subledger level and %ournal level re$orting "urren"ies act similarly to

ledgers. Jou ust o$en and "lose the $eriods or these re$orting "urren"ies

beore you "an enter transa"tion and %ournal entries. Jou "an also enable

%ournal a$$roval or these re$orting "urren"ies i $lanning to enter anual

%ournal entries dire"tly to these re$orting "urren"ies.

8he details o how to add 'e$orting Curren"ies and e"ondary edgers to

sour"e ledgers and how to de#ne subledger a""ounting rules and %ournal

"onversion rules arent $resented here. )or su"h details as well as e&a$les!

reer to the -(ra"le )inan"ials I$leentation *uide.

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GL Ledger Types

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