Sequencing by Legal Entity or Ledger

1

Table of Contents 1. Purpose of the document 3

2. Implementation 5

Default Setting and Country Overrides 5

Rapid Implementation Process 7

3. Common Setup 11

Review and Optionally Modify Ledger Options 11

Review Legal Entities and Business Units 11

Legal Entities 12

Business Units 12

4. Review Document Sequences 14

5. Review Accounting and Reporting Sequences 21

6. Advanced Setup 27

Set up Legal Entity Tax Profiles 27

Set up Legal Reporting Unit Tax Profiles 28

Set up Business Unit Tax Profiles 28

Accounts for the Ledger 30

Third Party Control Accounts 31

Complete Payables Setup 33

Complete Receivables Setup 34

Enter Supplier Sites and Third-Party Site Tax Profiles 36

ERP CLOUD

Sequencing by Legal Entity or Ledger

Fusion Financials for EMEA

2

Enter Customer Account Sites and Third-Party Site Tax Profiles 37

7. Users and Security 40

8. Open Accounting Periods 40

9. Create Payables Invoices 42

10. Create Receivables Transactions 46

11. Enforce Chronological Order on Document Date 49

12. Changing Subledger Sequencing Options 51

13. New Transaction Types 53

14. Sequences and Reporting 56

Financial Reports 56

Stage 1: Accounting Period is open 56

Transaction Tax Reports 59

15. R9 Upgrade Considerations 60

3

1. Purpose of the document

This document explains the implementation and usage guidelines for the enhanced sequencing features

in Fusion.

Sequencing is the process of assigning unique and consecutive numbers to documents and journal entries. Sequencing is a legal requirement in several countries in Europe, Asia and Latin America; it enables the fiscal authorities to verify the completeness of a company’s accounting record.

Document Sequences:

Document Sequence is a unique number that is assigned to documents like invoice and payment at creation or completion time depending on reporting needs.

A sequence can be ‘Automatic’, ‘Gapless’ or ‘Manual’. Automatic numbering assigns a unique number to each document as it is generated. Automatic numbering is the most efficient method of numbering documents but does not guarantee that the numbering is gapless.

Gapless numbering also automatically generates a unique number for each document, but ensures that the document was successfully generated before assigning the number. With Gapless numbering, no sequence numbers are lost due to incomplete or failed document creation.

Manual numbering requires a user to assign a unique number to each document before it is generated. With manual numbering, numerical ordering and completeness is not enforced. Users can skip or omit numbers when entering the sequence value.

Document Sequence Category is the name of the transaction type to which a sequence is assigned and all transactions of this type get a unique number assigned when they are created.

Document Sequence Name is the name of the sequence used to generate unique number for the transaction document when it is created.

Enforce Document Sequencing is a ledger option to enforce document sequencing for Payables and Receivables transactions.

Enforce Document Sequence Date Correlation option is available if document sequencing is enabled at Legal Entity level. Selecting this option ensures chronological as well as gapless sequencing. When this option is selected a document sequence cannot be generated if the transaction accounting date is earlier than existing transactions with the latest existing accounting date, causing the transaction completion to fail.

4

Accounting and Reporting Sequences:

Accounting Sequencing refers to numbering of general ledger journals when they are posted in

General Ledger. It also refers to sequencing of subledger journals when they are created or

completed in Subledger Accounting.

Reporting Sequencing refers to assigning a gapless sequence to both general ledger and

subledger accounting journals when the accounting period is closed.

You can assign both accounting and reporting sequences to a journal simultaneously.

Release 9 Enhancements:

Release 9 introduces sequencing by legal entity: you can assign different document, accounting and

reporting sequences to each legal entity within a ledger and / or business unit. Sequencing by legal

entity is enabled at the ledger level in the Ledger Options page. Please also refer to R9 Upgrade

Considerations section.

This document will focus on sequences maintained at the Legal Entity level since it is new functionality

in Release 9.

5

2. Implementation

You can use Rapid Implementation (RI) spreadsheet and process to create sequencing setup. You can

create one ledger and multiple legal entities that are associated to this ledger using the RI process.

You can complete all setups including definition and assignment of sequences manually but Rapid

Implementation will be very useful to complete enterprise creation with sequencing efficiently.

After initial enterprise creation (RI or manual) a number of setup steps, security setup and basic

transactional processing should be completed to be able to see how sequencing applies to transactions,

subledger journals and general ledger journals.

This document refers to a reference enterprise configuration.

Default Setting and Country Overrides

Use Rapid Implementation to configure sequencing. Rapid Implementation defaults sequencing to the

ledger level for most countries. For Italy, Spain, France, Germany and Netherlands, Rapid

Implementation defaults sequencing to the legal entity level.

6

Examples in this document are based on the configuration shown above: single ledger, multiple legal

entity and business units:

Ledger: FR Vision SEQ3

Legal Entity: FR Vision SEQ LE1-France and Business Unit: FR Bision SEQ BU1

Legal Entity: FR Vision SEQ LE2-France and Business Unit: FR Bision SEQ BU2

Basic steps will be explained using France country defaults.

Following table shows sequencing defaults by country:

Ledger Options

Attributes Mapping Rule Italy Spain France Germany UK Netherlands US Canada

Sequencing By

NS (No Sequencing), Ledger or Legal Entity

Legal Entity

Legal Entity

Legal Entity

Legal Entity NS Legal Entity NS NS

Enforce Document Sequence

Payables Checked Checked

Receivables Checked Checked Checked Checked Checked

Enforce Document Sequence Date Correlation

Defaulted as 'No'

Yes Yes

‘Sequencing By’ defaults apply to Accounting and Reporting sequences as well as document sequencing.

NS: No Sequencing

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Rapid Implementation Process

Step Step Description Entities and Comments Processes

1 Specify Ledger, Business Units, Legal Entities. Make sure you accurately specify the country information so that the application creates the correct default sequencing. You can also change when a sequence should restart and what should be the initial value. Follow the Instructions to create the zip files(1) and (2).

After completing the entries in the RI spreadsheet, use ‘Step1 : Validate’,’Step 2: Generate Chart of Accounts File’ and ‘Step 3: Generate Ledger, LE, and BU File’ on ‘COA, Calendar, and Ledger’ worksheet. Step1 and Step 2 create the zip files: (1) ChartOfAccounts (2)FinancialsCommonEntities Save the zip files.

2 Login as Implementing

Consultant (APPLICATION_IMPLEMENTATION_CONSULTANT)

3 Upload Chart of Accounts; Use

zip file (1) Ensure 3 processes complete successfully

4 Deploy Chart of Accounts

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5 Upload Ledger, Legal Entities and Business Units. Use zip file (2).

Ensure 8 processes complete successfully

Rapid Implementation process creates your ledger, business units and legal entities using the default

settings for the countries.

9

Address and Tax Information in Rapid Implementation spreadsheet

Country information entered in the spreadsheet will instruct the system which country defaults will be

used.

Examples showing the related section of the worksheet are given below:

France:

Legal Entity

Name *Identifier *Country

Address

*Registration Number

*Reporting Unit Registration Number

*Address Line City State County Province

Postal Code

FR Vision SEQ LE1 - France NVSFR12 France

Paris Office Paris Paris 75008

FR7H123433335 FR7H123433335

FR Vision SEQ LE2 - France NVSFR22 France

Distr. Center Paris Paris 75008 FR8N345833227 FR8N345833227

Spain:

Legal Entity

Name *Identifier *Country

Address

*Registration Number

*Reporting Unit Registration Number

*Address Line City State County Province

Postal Code

Spain Corp LE1 SPAES0003 Spain St 333 Madrid 28001 ESB78361482 ESB78361482

Spain Corp LE2 SPAES0004 Spain St 335 Barcelona 08120 ESB78361483 ESB78361483

10

Sequencing defaults from the RI spreadsheet

Sequences

Transactions *Restart *Initial Value

Payables Invoices Annually 1

Payments Annually 1

Receivables Invoices Annually 1

Receivables Credit Memos Annually 1

Receivables Adjustment

Activities Annually 1

Subledger Journals Annually 1

General Ledger Journals Annually 1

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3. Common Setup

Review and Optionally Modify Ledger Options

You can control the main sequencing options for your ledger which you have created manually or

through Rapid Implementation. The sequencing options defined at the Ledger level will apply to all the

Legal Entities within that Ledger.

Rapid Implementation creates the ledger with the sequencing defaults for the country.

In the sample setup below, sequencing level is set up as legal entity. Sequencing will be enforced for

Payables application only. This means that the sequence is always used for Payables transactions. If the

checkbox is unchecked and sequencing is by Ledger or LE then the sequencing within Payables will be

partially used. Please also see R9 Upgrade Considerations section.

Task name: Specify Ledger Options

Navigation : Navigator –> Setup and Maintenance -> Specify Ledger Options

You can optionally change the ‘Sequencing By’ option, which is ‘Legal Entity’ as ‘Ledger’ or ‘No

sequencing’. This setting controls sequencing of subledger transactions as well as accounting and

reporting sequencing of subledger and General Ledger Journals. ‘No sequencing’ setting can be used to

disable sequencing.

Please note that the profile option setup for enabling sequencing is no longer relevant for document

sequencing.

Perform other modifications on ledger options if necessary.

Review Legal Entities and Business Units

Legal Entities and Business Units are created by the rapid implementation process. Sequencing setup is

completed automatically for your legal entities. You can manually create these entities and manually

complete your sequencing setup.

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Legal Entities

Task name: Assign Legal Entities

Navigation : Navigator –> Setup and Maintenance -> Assign Legal Entities

Business Units

Complete Business Unit setup before entering your subledger transactions.

Task name: Manage Business Unit

Navigation : Navigator –> Setup and Maintenance -> Manage Business Unit

13

Please refer to section 6 Advanced Setup for setup steps that you need to complete before entering

your Payables and Receivables transactions.

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4. Review Document Sequences

Below, you can see the values entered in a sample RI spreadsheet (Financial Sequences). These

categories apply to all countries.

Sequences

Transactions *Restart *Initial Value

Payables Invoices Annually 1

Payments Annually 1

Receivables Invoices Annually 1

Receivables Credit Memos Annually 1

Receivables Adjustment

Activities Annually 1

Subledger Journals Annually 100 (*)

General Ledger Journals Annually 1

(*) While the initial value is typically ‘1’, ‘100’ is used here to illustrate the flexibility and to easily verify

that subledger journals and general ledger journals are numbered from their respective sequences.

The application automatically assigns the document sequence names.

Each sequence has versions for 2 financial years starting from the first financial year defined in the RI

spreadsheet.

Format of the document sequence names is as follows:

Periodyear-periodnum-hexadecimal(seqno).

Period year is the year of Calendar and period num is the number of that particular period. For example,

for Calendar 'Accounting12', we have monthly periods from Jan to Dec. If the starting period of the

sequence is Jan, then period num is 1.

Seq no comes from the internal profile option ‘DOC_SEQUENCE_HELPER_CODE’ which is not exposed to

users. For every sequence created by the Rapid Implementation process, the value is incremented by 1.

For the very first run of Rapid Implementation on a particular environment, this profile gets created with

an initial value of 1. This value is converted to hexadecimal and used in the sequence string.

For example, if year is 2010, starting period is Jan-2010 and the profile option value (seq no) is 250 then

the document sequence name would be 2010-01-hex(250). Here hexadecimal of 250 would be 00FA so

document sequence name will be : 2010-01-00FA.

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1. Payables:

The following table shows the mapping of the items under ‘Transactions’ heading of Financial

Sequences worksheet to document sequence categories.

Default Document Sequence Categories

Transaction Code Name

Payables Invoice

CRM INV Credit Memo Invoices

DBM INV Debit Memo Invoices

INT INV Interest Invoices

PAY REQ INV Payment Request

PREPAY INV Prepayment Invoices

STD INV Standard Invoices

Payments

CHECK PAY Check Payments

CLEAR PAY Clearing Payments

EFT PAY Electronic Payments

WIRE PAY Wire Payments

Rapid Implementation process creates one sequence per Invoices and one sequence per payments for

each of two financial years starting from the ‘Fiscal Year Start Date’ value provided in the spreadsheet.

Four document sequences having auto-generated names in the format ’ 2010-XX-XXXX‘ and ‘2011-XX-

XXXX’ are created with category assignments as follows:

Sequence (1) 2010 , Sequence (2) 2011 (Payables Invoices)

Assigned To:

CRM INV

DBM INV

INT INV

PAY REQ INV

PREPAY INV

STD INV

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Sequence (3) 2010, Sequence(4) 2011 (Payments)

Assigned To:

CHECK PAY

CLEAR PAY

EFT PAY

WIRE PAY

17

Images below show the document sequences created for Payables and assigned to Payables document

categories and Legal Entities.

Task name: Manage Document Sequences

Navigation : Navigator –> Setup and Maintenance -> Manage Document Sequences

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2. Receivables:

The following table shows the mapping of the items under ‘Transactions’ heading of Financial

Sequences worksheet to document sequence categories.

Default Document Sequence Categories

Transaction Code Name

Receivables Invoices

Invoice Invoice

PA Invoice PA Invoice

PA Internal Invoice PA Internal Invoice

Intercompany Intercompany

Receivables Credit Memos Credit Memo Credit Memo

PA Credit Memo PA Credit Memo

Receivables Adjustment Activities

Adjustment Reversal Adjustment Reversal

Chargeback Reversal Chargeback Reversal

Chargeback Adjustment Chargeback Adjustment

(*) Additional categories may be added to the ones that are listed in the above table.

Document sequences having auto-generated names in the format ’ 2010-XX-XXXX‘ and ‘2011-XX-XXXX’

are created with category assignments as follows:

2 Sequences (2010, 2011) : Adjustment Reversal

2 Sequences (2010, 2011) : Billing Adjustment (*)

2 Sequences (2010, 2011) : Chargeback Adjustment

2 Sequences (2010, 2011) : Chargeback Reversal

2 Sequences (2010, 2011) : Credit Memo

2 Sequences (2010, 2011) : Intercompany

2 Sequences (2010, 2011) : Invoice

2 Sequences (2010, 2011) : Non-Accounting Adjustment (*)

2 Sequences (2010, 2011) : PA Credit Memo

2 Sequences (2010, 2011) : PA Internal Invoice

2 Sequences (2010, 2011) : PA Invoice

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There are 22 Receivables sequences for 11 categories and 2 legal entities for the sample implementation

referenced in this document.

Setup screen images of two sequences are provided below, the first sequence assigned to LE1 and the

second assigned to LE2.



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5. Review Accounting and Reporting Sequences

RI process creates accounting and reporting sequences using default settings for countries. Please refer

to Implementation section for country specific information.

The naming of the sequences use the following format: LE Name / Ledger Name + Accounting Sequence

(for non-period close event) or Reporting Sequence (for period close) + SLA (for subledger journals) or

GL (General Ledger journals). Non-period close event is Posting for General Ledger and Accounting of

the subledger transaction for Subledger Accounting.

In this example you can see that accounting and reporting sequences are created for both Subledger

Accounting and General Ledger journals exclusively for two legal entities.

FR Vision SEQ LE1 - France Accounting Sequence-SLA

FR Vision SEQ LE1 - France Accounting Sequence-GL

FR Vision SEQ LE1 - France Reporting Sequence-SLA

FR Vision SEQ LE1 - France Reporting Sequence-GL





Each sequence has versions for 2 financial years starting from the first financial year defined in the RI

spreadsheet:

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Rapid Implementation Sequencing Setup is completed with the following defaults (general and country-

specific):

Subledger Journals - Accounting

Journal Entry Type Subledger

Sequencing Event Subledger Accounting

Sequence Validation Date Accounting Date

Journal Sorting Date Accounting Date

Require assignment for all journals Yes

Start Date Start Date of first version period.

End Date Null

Journal Source All

Journal Category All

Accounting Event Type All

Accounting Entry Type Standard

Document Category All

General Ledger Journals - Accounting

Journal Entry Type General Ledger

Sequencing Event Posting

Sequence Validation Date Accounting Date

Journal Sorting Date Accounting Date



End Date Null

Journal Source All


Accounting Event Type All

Accounting Entry Type Standard

Document Category All

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Period Close - Subledger

Journal Entry Type Subledger

Sequencing Event Period Close

Sequence Validation Date Reference Date

Journal Sorting Date Reference Date


Fiscal Balancing Segment Values All Checked


End Date Null

Journal Source All


Period Close – General Ledger

Journal Entry Type General Ledger

Sequencing Event Period Close

Sequence Validation Date Reference Date

Journal Sorting Date Reference Date


Fiscal Balancing Segment Values All Checked


End Date Null

Journal Source All


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Following images show sequences and assignments for LE1.

Task name: Manage Accounting and Reporting Sequences

Navigation : Navigator –> Setup and Maintenance -> Manage Accounting and Reporting Sequences


Journal Entry Type: General Ledger, Sequencing Event: Posting

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Journal Entry Type: Subledger, Sequencing Event: Subledger Accounting

26


Journal Entry Type: Subledger, Sequencing Event: Period Close


Journal Entry Type: General Ledger, Sequencing Event: Period Close

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6. Advanced Setup

This section provides details for setup required before you can enter transactions in Payables and

Receivables. Some of these steps are not strictly required or may not be directly related to sequencing.

You may not need to review all the details in this section. For example, you can bypass the details

related to setting up of tax entities and start from Third Party Control Accounts sub section if you will

create transactions without tax. In general, please review only those sub sections that are relevant to

your business case.

Set up Legal Entity Tax Profiles

Register Legal Entities with tax regimes of the country.

Task name: Manage Legal Entity Tax Profiles

Navigation : Navigator –> Setup and Maintenance -> Manage Legal Entity Tax Profiles

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Set up Legal Reporting Unit Tax Profiles

Register Legal Reporting Units with tax regimes of the country.

Task name: Manage Legal Reporting Unit Tax Profiles

Navigation : Navigator –> Setup and Maintenance -> Manage Legal Reporting Unit Tax Profiles

Set up Business Unit Tax Profiles

You need to complete this setup to give the high level instruction to the tax engine that the tax

calculation will be legal entity based.

Task name: Manage Party Tax Profiles

Navigation : Navigator –> Setup and Maintenance -> Manage Party Tax Profiles

29

Use Legal Entity tax subscription must be checked.

30

Accounts for the Ledger

Create tax accounts for the new ledger.

Task name: Manage Tax Rates and Tax Recovery Rates

Navigation : Navigator –> Setup and Maintenance -> Manage Tax Rates and Tax Recovery Rates

(Tax Accounts tab)

31

Third Party Control Accounts

Specify your third-party control accounts and ensure that required setup is completed if you use the

Financial Third-Party Reports.

Task name: Manage Value Sets

Navigation : Navigator –> Setup and Maintenance -> Manage Value Sets

To update existing account combinations which contain these account segment values, submit ‘Inherit

Segment Value Attributes’ process.

Navigation: Navigator –> Tools -> Scheduled Processes

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Complete Payables Setup

Complete the following setups before entering transactions in Payables. Some setup items are directly

related to how the sequencing will function in your implementation. Details are provided for these

items.

Complete the following setup for your Business Entities:

Payables System Options

Task name: Manage Invoice Options

Navigation : Navigator –> Setup and Maintenance -> Manage Invoice Options

Specify ‘Allow document category override’ option to allow or restrict users to change the document

category of the individual invoice.

Common Options for Payables and Purchasing

Procurement Business Function

Procurement Agent

Manage Bank Accounts (Payment Documents)

Task name: Manage Bank Accounts

Navigation : Navigator –> Setup and Maintenance -> Manage Bank Accounts

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(1) Payment Documents section

Payment Document Category is defaulted. It is possible to change or remove the payment

document category from this page.

(2) Business Unit Access tab

Complete Receivables Setup

Complete the following setups before entering transactions in Receivables. Some setup items are

directly related to how the sequencing will function in your implementation. Details are provided for

these items.

Complete the following setup for your business entities:

Create Receivables Activities

Create Receivables System Options

Task name: Manage Receivables System Options

Navigation : Navigator –> Setup and Maintenance -> Manage Receivables System Options

35

Document number generation is set up as ‘When completed’. Other available option are ‘When

saved’ or ‘None’. This means the receivables transaction will be assigned a sequence number at

completion. For the sample ledger, sequencing is not enforced for receivables; due to this above

setup will not be effective on the transactions of this ledger.

Manage Transaction Source

Task name: Manage Transaction Source

Navigation : Navigator –> Setup and Maintenance -> Manage Transaction Source

You can check this option to use document sequence number as transaction number.

Create Receivables Autoaccounting Rules

Create Bank Account

Create Receipt Method

36

Enter Supplier Sites and Third-Party Site Tax Profiles Create new Supplier Sites for the Business Units

Create Supplier Site Tax Profiles for the new sites

Task name: Manage Suppliers

Navigation : Navigator –> Suppliers -> Manage Suppliers

37

Enter Customer Account Sites and Third-Party Site Tax Profiles

Reference Set Assignments (Review, Modify if necessary)

You may need to review and modify set assignments for your business units.

Task name: Manage Business Unit Set Assignment

Navigation : Navigator –> Setup and Maintenance -> Manage Business Unit Set Assignment

RI process uses the default set ‘COMMON’ for all reference data.

A sample customer site setup is shown below:

Task name: Manage Customers

Navigation : Navigator –> Setup and Maintenance -> Manage Customers

40

7. Users and Security

Assign roles to new or existing users.

Before opening accounting periods and entering your transactions, associate corresponding roles that

were created automatically during the RI process to new or existing users.

Use following table as reference:

Payables users AP_SUPV_FR_SEQ_BU1 AP_ACCOUNTS_PAYABLE_SUPERVISOR_JOB_FR Vision SEQ BU1 - France

AP_SUPV_FR_SEQ_BU2

AP_ACCOUNTS_PAYABLE_SUPERVISOR_JOB_FR Vision SEQ BU2 - France

AP_MGR_FR_SEQ_BU1

AP_ACCOUNTS_PAYABLE_MANAGER_JOB_FR Vision SEQ BU1 - France

AP_MGR_FR_SEQ_BU2

AP_ACCOUNTS_PAYABLE_MANAGER_JOB_FR Vision SEQ BU2 - France

Receivables users BILLING_MGR_FR_SEQ_BU1

AR_ACCOUNTS_RECEIVABLE_MANAGER_JOB_FR Vision SEQ BU1 - France

BILLING_MGR_FR_SEQ_BU2

AR_ACCOUNTS_RECEIVABLE_MANAGER_JOB_FR Vision SEQ BU2 - France

General Ledger user GENERAL_ACCTG_MGR_FR_SEQ

GL_GENERAL_ACCOUNTING_MANAGER_JOB_FR Vision SEQ3 FR

8. Open Accounting Periods

Open first accounting period in General Ledger, Payables and Receivables. You can also open other

accounting periods depending on the accounting date ranges of your transactions.

1 Login as General Ledger Accounting Manager User

Open First Period for the ledger

Ensure process is submitted and completed successfully.

2 Login as Payables Manager User

Open First Payables Period for the ledger


3 Login as Receivables Manager User

Open First Receivables Period for the ledger


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Open/Close Payables Accounting Periods from the ‘Manage Accounting Periods’ screen. (Payables

Manager)

Open/Close Receivables Accounting Periods from the ‘Manage Accounting Periods’ screen. (Receivables

Manager)

Open/Close General Ledger Accounting Periods from the ‘Period Close’ screen. (General Accounting

Manager)

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9. Create Payables Invoices

Create, account and post Payables Invoices for the two Business Units:

Task name: Create Invoice

Navigation : Navigator –> Payables Invoices -> Create Invoice

(1) BU1/LE1:

Document Sequence assigned.

Accounting Sequence assigned to Subledger Accounting entry.

43

GL Accounting Sequence assigned to General Ledger Journal.

44

(2) BU2/LE2:

Document Sequence assigned.

Accounting Sequence assigned to Subledger Accounting entry.

45

GL Accounting Sequence assigned to General Ledger Journal.

46

10. Create Receivables Transactions

Task name: Create Transaction

Navigation : Navigator –> Receivables Billing -> Create Transaction

(1) BU1/LE1

Document Sequence is not assigned. This is the case since ‘Enforce Document Sequencing’ is not

checked for Receivables. Please refer to Review and Optionally Modify Ledger Options.

Accounting Sequence is assigned to Subledger Accounting entry.

48

GL Accounting Sequence is assigned to General Ledger Journal.

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11. Enforce Chronological Order on Document Date

Use chronological and gapless ordering on sequencing to ensure transactions are entered into the

system in chronological order of their accounting dates.

Regulatory authorities in some countries expect the accounting date corresponds to the date that

transactions are recognized by the company. For Payables invoices, this means when they are received

from the supplier. For Receivables, it is when they are printed and sent to customers. The validation

ensures that General Ledger dates and sequence numbers are consistent with the requirement.

Set ‘Enforce Chronological Order on Document Date’ to ‘Yes’ to set up sequencing when chronological

ordering is legally required or functionally desired for the given ledger or legal entity.

If required, ledger option must be set as follows:

Enforce Chronological Order on Document Date = Yes



This functionality is based on the accounting dates of the subledger transactions.

50

The option of enforce correlation can be enabled only when sequencing is set by LE (this option cannot

be enabled if sequencing by is set as Ledger). Please also note that this feature is available just for

document sequencing and not accounting/reporting sequences.

Following example will show how the option works:

Existing Invoice with an accounting date of 05-FEB-2010, Sequence Number: 2

Task name: Manage Invoices

Navigation : Navigator –> Payables Invoices -> Manage Invoices

Try to enter an invoice with an accounting date of 02-FEB-2010:

Task name: Create Invoice

Navigation : Navigator –> Payables Invoices -> Create Invoice

Since the second invoice (above) has an accounting date that is earlier than the latest accounting date

for the legal entity (first invoice), it is not possible to assign a document sequence to the invoice and it

cannot be saved.

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Please also note that it is not possible to delete an already sequenced transaction/receipt. If you no

longer require a transaction, either cancel the transaction or reverse the transaction through a credit

memo.

12. Changing Subledger Sequencing Options When there are any changes to legal or audit reporting requirements involving sequencing, modify the

subledger sequencing options to comply with the changes. The changes become effective immediately

when the change is saved. A transaction entry following the setup change will use the new setup

independent of the transaction or the accounting date.

For example, your audit reporting may require sequencing of Receivables transactions as well as

Payables in the new financial year. Additionally, you may need to enforce chronological order to meet

the changing requirements. You have to change the setup before you enter the first transaction in the

new financial year. Changes to setup are shown below:



52

Enter a Transaction for LE2/BU2 after the above modification; you can see that the sequence is now

assigned.

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13. New Transaction Types

Set up transaction types in Receivables for new types of documents. Using the sequencing options you

have set up for your ledger, the application creates and assigns one sequence to each transaction type

you create.

An example is shown below:

Task name: Manage Transaction Types

Navigation : Navigator –> Setup and Maintenance -> Manage Transaction Types

Task name: Manage Document Sequence Categories

Navigation : Navigator –> Setup and Maintenance -> Manage Document Sequence Categories

54



55

You can see that the following new transaction was sequenced from the new sequence associated to

the transaction type.

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14. Sequences and Reporting

In this section you will see how document, accounting and reporting sequences are assigned to

documents and journals through sections of Financial and tax reports.

Financial Reports

Stage 1: Accounting Period is open

Accounting Period, JAN-10 is open.

Daily Journals Report

Source: Payables

57

Daily Journals Report

Receivables

58

Stage 2: General Ledger Accounting Period is closed

Accounting Period, JAN-10 is closed.

59

Transaction Tax Reports Input VAT Journal Report for Spain

This report shows the document sequence names and numbers that are assigned to the Payables

invoices.

Sequence number in the first column is generated at report submission and is not related to the

document sequence number that is assigned to the transaction. In the above example user runs the

report with an initial value of ‘1001’.

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15. R9 Upgrade Considerations

If pre-R9 sequencing profile setting was Always, the sequencing settings are preserved. Otherwise, pre-

R9 sequencing profile setting of Partial/Not Enabled translates to No Sequencing in R9.

You can use the following table for information but please refer to the upgrade document for the detailed flow. Please also refer to ERP Cloud Release 9 Upgrade document.

Document Sequencing Profile setting Settings in Specify Ledger Options UI after upgrade

Site Product Sequencing By Enforce Document Sequencing

Partial Payables – Not Enabled OR Partial No Sequencing None

Receivables – Not Enabled OR Partial

No Sequencing None

Partial Payables - Always Ledger Payables – Yes

Receivables – Always Ledger Receivables – Yes

Partial Payables - Yes, Always

[No product level setting for Receivables]

Ledger Payables - Yes (Receivables is not checked)

Always Payables - Always Ledger Payables – Yes

Receivables – Partial Ledger Receivables - No

Always Payables – Not Enabled OR Partial No Sequencing None

Receivables – Not Enabled OR Partial

No Sequencing None

Please also review the Release 9 Readiness Content for Financials.

At post upgrade, you must review the settings in the Sequencing region of the Specify Ledger Options

page before recording new Financials transactions and journals to ensure they are same as your pre-

Release 9 settings and/or reflect what you need starting in Release 9.

https://support.oracle.com/epmos/main/downloadattachmentprocessor?attachid=1946527.1%3AERPRELEASE9UPGRADE&docType=REFERENCE&action=download

https://cloud.oracle.com/saasreadiness?subcatID=1406457788846

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Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

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Sequencing by Legal Entity or Ledger

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