copyright © 2007, oracle. all rights reserved. summary accounts r12 general ledger management...
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Copyright © 2007, Oracle. All rights reserved.
Summary Accounts
R12 General Ledger Management Fundamentals
Copyright © 2007, Oracle. All rights reserved.
Objectives
After completing this lesson you should be able to do the following:
• Discuss summary accounts and how they are used in General Ledger
• Define rollup groups for summary account creation
• Assign parent values to rollup groups
• Determine the number of summary accounts created by a template using a specific formula
• Enter summary account templates to create summary accounts
• Maintain summary accounts
• Discuss key implementation considerations in planning summary accounts
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Overview
What are Summary Accounts?
• A summary account is an account whose balance is the sum of balances from multiple detail accounts
• Use summary accounts to perform online summary inquiries, as well as speed the processing of financial reports and Mass Allocations, and Recurring journal formulas
• You do not enter or post transactions directly to summary accounts
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Overview
Summary accounts store the sum of the balances of groups of detail accounts
Summary Revenue Account……….15,000
Detailed Revenue Account A…..10,000
Detailed Revenue Account B…….3,000
Detailed Revenue Account C…….2,000
}
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Defining Summary Accounts
• Summary accounts enable quick online inquiries of account groupings
• The following are common segments you can use to summarize information:
Company
Cost Center
Account
Product
District
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Summary Account Examples
Here are some common dimensions and examples of ways you can summarize information within each dimension:
• Company
• Cost Center
• Account
• Product
• District
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Detail Versus Summary Accounts
Summary Accounts
Provide many efficiencies for
business processing
Detail Accounts
Provide accurate and direct posting for transactions
and journals
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Summary Accounts Versus Parent Values
Summary Accounts Parent Values
Store summary balances. Do not store account balances.
View balances online. Cannot be viewed online because they do not maintain balances.
Use in recurring journals or budget formulas.
Cannot be used in recurring journals or budget formulas because they do not maintain balances.
Use the constant segment type in Mass Allocations.
Use the looping segment typein Mass Allocations.
Get quicker FSG reportingbecause no summations are required.
Result in slower FSG reporting because summations are required.
Require posting to additional accounts because balancesmust be updated each time journals are posted to one of the corresponding detail accounts.
Expedite the posting process because parent values maintain no balances and therefore do not have to be updated each time journals are posted.
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Parent Values and Rollup Groups
Assign related parent values to rollup groups before creating summary accounts
Nevada299
Oregon399
East CA101
West CA102
East NV201
West NV202
East OR301
West OR302
California199
Western area rollupRollup Group
State Parents
Detail Segments
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Rollup Groups
Rollup Groups
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Summary Account Templates
General Ledger uses summary templates to:
- Create summary accounts
- Perform online summary inquiries
- Speed processing of reports
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Template Values
D
T
Your template creates and maintains a summary account for every detail segment. This value
creates the most summary accounts of any template value.
Your template creates and maintains a summary account that
sums balances of all detail segments.
Your template creates and maintains a summary account for
each parent segment value assigned to the rollup group you
specify.
Rollup Group
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Defining Summary Accounts
Determine the number of summary accounts created by a template using this formula
Number of Summary Accounts Created
==Number of Detail Segment Values for
Each Segment with a "D" Value
Number of Parent Segment Values for Each Segment with a Rollup Group Name
1For Each Segment with a "T" Value
XX
XX
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Summary Account Creation Example
Suppose a company has the following account segments and values:
Company Department Account- -
01 - US02 - CAD
101- East102- West
4001- Revenue Prod A4002- Revenue Prod B
4000- Parent ValueRollup Group = Revenue
To create summary accounts to reflect total revenue for each company, all departments, the following summary template would be defined:
D - T - Revenue
This template would create the following summary accounts:
01 - T - 400002 - T - 4000
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Maintain Summary Accounts Overview
The following changes to your parent values cause changes in the summary account reporting structure:
Adding child ranges
Removing child ranges
Assigning a new value to a Rollup Group
Removing a rollup group assignment
Changing a rollup group assignment
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Maintaining Summary Templates
Posting automatically updates summary templates if you have added new detail accounts since your last posting for your ledger
D - T- Revenue
Summary Template
To improve the performance of your posting program, run the Maintain Summary Templates program to update your summary templates
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Setting Budgetary Control
Setting Summary AccountBudgetary Control Options
• Enter budgetary control options for summary account template
• Choose Incremental Add/Delete Summary Templates from the Submit Request window
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Incremental Add/Delete Summary Templates Program
D - T- Revenue
Summary Template
Changes to your Flexfield Hierarchy?
YesRun the Incremental Add/Delete Summary Templates program
To Update
Run the Maintain Summary Template program
No
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Incremental Add/Delete Summary Templates Program
Oracle General Ledger
Summary Accounts
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Planning Summary Accounts
Various elements exist when planning your summary accounts
Summary Account
Summary Account Structure Parent Segment
Values/Rollup Groups
Summary Account Templates
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Determine Summary Account Needs
To determine your summary account needs:
Consider
Summary information you need for reports
Summary balances you need for online
inquiries
How you want to use summary accounts in
formulas and allocations
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Plan Summary Account Structure
• Select ways to summarize accounting information based on the structure of your accounting flexfield segments and your informational needs
• Some common dimensions include:
Company
Cost Center
Account
Product
District
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Plan Summary Account Structure
Think about how you want to combine your summary views across different organizational dimensions
ProductsStoresDepartmentsCompaniesDetail Segments
Industries
Industry
Groups
Cost Centers
Divisions
Districts
States
Regions
Product
Groups
Product
Categories
Rollup Group:
Level 1
Rollup Group:
Level 2
Rollup Group:
Level 3
Summary of Organizational Levels
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Plan Summary Account Structure
To clarify your plans, sketch out your summarization levels
Eastern Washington
112
Eastern Oregon
122
Central California
132
Southern California
133
Western Washington
111
Western Oregon
121
Northern California
131
Washington State
110
Oregon State
120
California State
130
Western Region 100
Detail Segments:
Districts
Rollup Group:
States
Rollup Group:
Regions
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Plan Summary Account Structure
Use Reporting Hierarchies
when:
• You want to easily reorganizeyour summary views in thefuture
• The primary use for summarization is reporting
Use Summary Accounts
when:
• Your summary relationships are more permanent
• You want to use summary accounts in formulas and allocations
• You want online inquiry of these summary amounts
• You want faster financial reporting of these summary amounts
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Plan Values and Groups
To determine the parent values and rollup groups you need to:
Plan your parent segment values
Define the parent segment values and enter meaningful segment value descriptions
Select a naming or numbering method for rollup groups that is similar for all segments
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Plan Summary Account Templates
Set up templates to define and maintain summary accounts. The number of summary accounts your template creates depends on the template segment values.
Number of Summary Accounts Created
==Number of Detail Segment Values for
Each Segment with a "D" Value
Number of Parent Segment Values for Each Segment with a Rollup Group Name
1For Each Segment with a "T" Value
XX
XX
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Summary
In this lesson you should have learned how to:
• Explain what summary accounts are and how they are used in Oracle eBusiness applications
• Define rollup groups for summary account creation
• Assign parent values to rollup groups
• Determine the number of summary accounts created by a template using a specific formula
• Enter summary account templates to create summary accounts
• Maintain summary accounts
• Explain key implementation considerations in planning for summary accounts