General Ledger Setup in R12

Overview of Setting Up:Consider the guidelines in this chapter as you set up General Ledger for your organization. References in this chapter to other areas of this and other Oracle Applications User's Guides can enhance your understanding of how setting up General Ledger affects the behavior of specific features and functions.

Implementation Considerations:Oracle Applications is an integrated suite of business applications that connects and automates the entire flow of business processes across both front and back office operations and addresses the needs of a global enterprise. Because Oracle Applications are engineered to work together, you can streamline your setup process by sharing common setup data across applications.

Define Accounting Setups Using Accounting Setup Manager

The Accounting Setup Manager streamlines the implementation of your Oracle Financial Applications by centralizing the setup steps for the following common setup components that are shared across Oracle Financial Applications:

Legal entities

Ledgers (primary and secondary ledgers)

Reporting currencies

Oracle Subledger Accounting (SLA)

Intercompany accounts

Intracompany balancing rules

Sequencing options

Use the Accounting Setup Manager to define an accounting setup. Each accounting setup defines the accounting context for one or more legal entities or a business need that does not involve legal entities.

If defining an accounting setup for one or more legal entities, the accounting setup includes the legal entities, ledgers, and transaction processing options that control the accounting for the legal entities.

The accounting setup process consists of the following steps:

1. Create an Accounting Setup Structure: The accounting setup structure creates the framework of the accounting setup and identifies the legal entities, if any, type of accounting setup, and ledgers.

2. Complete Accounting Options: Depending on the type of accounting setup you define, you must complete different accounting options to specify how you want to perform accounting and process transactions. Accounting options include ledger options, reporting currency options, subledger accounting options, intercompany accounts, intracompany balancing rules, and sequencing options.

3. Complete the Accounting Setup: Completing the accounting setup marks the accounting setup complete and launches the General Ledger Accounting Setup program. This program performs the necessary validations to make the setup components of an accounting setup ready for transaction processing and journal entry.

See: Oracle Financials Implementation GuideComplete General Ledger Setup Steps

To create accounting setups, you must complete the General Ledger prerequisites that are used to create ledgers and other setup components in Accounting Setup Manager.

You need to perform this step once for each ledger you define with differences in charts of accounts, accounting calendars, and currencies.

See: Setting Up General Ledger.

Setting Up General LedgerOracle iSetup

If you are implementing a new instance of the Oracle e-Business Suite and have relatively standard implementation requirements, you can use Oracle iSetup to rapidly configure the following applications:

Oracle General Ledger

Oracle Payables

Oracle Receivables

Oracle Cash Management

Oracle Assets

Oracle Purchasing

Related Product Setup Steps

The following steps may need to be performed to implement Oracle General Ledger. These steps are discussed in detail in the Setting Up sections of other Oracle product user's guides. The following table lists each step with a reference to the various Oracle Application user guides.

Set Up Underlying Oracle Applications Technology

During GL setup, you need to complete several steps related to other products:

Performing system-wide setup tasks such as configuring concurrent managers and printers

Managing data security, which includes setting up responsibilities to allow access to a specific set of business data and complete a specific set of transactions, and assigning individual users to one or more of these responsibilities.

Setting up Oracle Workflow

System Administration Setup Steps

Use the Oracle Applications System Administrator's Guide and Oracle Applications Flexfields Guide for help in completing the following setup steps.

Step Reference

Set up printers, security, and audit trails.See: Oracle Applications System Administrator's Guide Common Applications

Set up accounting and descriptive flexfields.See: Oracle Applications Flexfields Guide Common Applications

Oracle Human Resources Setup Steps

Use the Setting Up Oracle Human Resources section in the Oracle Human Resources User's Guide for help in completing the following setup steps.

Step Reference

Define Your EmployeesSee: Enter Person. Common Applications

Note: You can enter employee information in Oracle General Ledger if Oracle Human Resources is not installed. See: Entering a New Employee.

Other Sources Oracle Applications System Administrator's Guide Oracle Workflow GuideDefine Legal Entities

If you plan to record accounting transactions for one or more legal entities, you can use Oracle Legal Entity Configurator or the Legal Entities tab in Accounting Setup Manager to define your legal entities.

Note: The Legal Entity pages of Accounting Setup Manager are the same as the Legal Entity pages in Legal Entity Configurator. The only difference is that you can assign balancing segment values to legal entities using Accounting Setup Manager. It is strongly recommended that you assign specific and unique balancing segment values to your legal entities to help you identify legal entities during transaction processing and reporting and take full advantage of all of the legal entity-related features.

Note: If you plan to use jurisdictions that do not come seeded, you can define your own jurisdictions using Legal Entity Configurator before you define legal entities. A jurisdiction is the intersection of the physical territory and type of legislation within which judicial authority may be exercised. The jurisdiction is used to assign a territory to a legal entity.

See: Defining Jurisdictions.

See: Defining Legal Entities.

Define Subledger Accounting Methods

If you plan to use Oracle Subledger Accounting (SLA) to integrate data from Oracle Financial Subledgers and non-Oracle systems with Oracle General Ledger, you can define subledger accounting methods using Oracle Subledger Accounting (SLA).

Oracle Subledger Accounting seeds two subledger accounting methods: Standard Accrual and Standard Cash. If you want to define your own subledger accounting methods, you must define them using Oracle Subledger Accounting.

When you define ledgers in Accounting Setup Manager, you can optionally assign a subledger accounting method to your ledger to use this feature.

You must perform this step for each subledger accounting method.

See: Defining Subledger Accounting Methods.

General Ledger Setup FlowchartWhile you can set up your Oracle General Ledger application in many different ways, and defer optional set up steps until you are ready to use the corresponding functionality, we recommend you use the order suggested in the following flowchart:

Some of the steps outlined in this flowchart and setup checklist are Required and some are Optional. You need to perform Optional steps only if you plan to use the related feature or complete certain business functions.

The following setup steps are a high level overview of the setup steps related to Oracle General Ledger and Accounting Setup Manager. The detailed steps are listed on the following pages.